MAINSTAY FUNDS - Notes to Mutual Funds Financial Statements - 7-7-2005

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					NOTE 1 -- ORGANIZATION AND BUSINESS:

The MainStay Funds (the "Trust") was organized on January 9, 1986 as a Massachusetts business trust. The
Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company and comprises twenty funds (collectively referred to as the "Funds"). These
financial statements and notes relate only to MainStay Small Cap Value Fund (the "Fund"), a diversified fund. The
Board of Trustees of the Trust had approved the closure of the Fund to new investors, effective December 1,
2001. The Fund was re-opened to investors on July 6, 2004, after the appointment of the new Subadvisor,
MacKay Shields LLC.

The Fund currently offers four classes of shares. Distribution of Class A shares and Class B shares commenced
on June 1, 1998. Class C shares were initially offered on September 1, 1998. Distribution of Class I shares
commenced on February 16, 2005. Class A shares are offered at net asset value per share plus an initial sales
charge. No sales charge applies on investments of $1 million or more (and certain other qualified purchases) in
Class A shares, but a contingent deferred sales charge is imposed on certain redemptions of such shares within
one year of the date of purchase. Class B shares and Class C shares are offered without an initial sales charge,
although a declining contingent deferred sales charge may be imposed on redemptions made within six years of
purchase of Class B shares and within one year of purchase of Class C shares. Class I shares are not subject to
sales charges. Class A shares, Class B shares, Class C shares and Class I shares bear the same voting (except
for issues that relate solely to one class), dividend, liquidation and other rights and conditions except that the
Class B shares and Class C shares are subject to higher distribution fee rates. Each class of shares other than
Class I shares bears distribution and/or service fee payments under a distribution plan pursuant to Rule 12b-1
under the 1940 Act.

The Fund's investment objective is to seek long-term capital appreciation by investing primarily in securities of
small-cap companies.

Small-capitalization companies may be more volatile in price and have significantly lower trading volumes than
companies with larger capitalizations. They may be more vulnerable to adverse business or market developments
than large-capitalization companies.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES:

The Fund prepares its financial statements in accordance with generally accepted accounting principles and
follows the significant accounting policies described below.

(A) SECURITIES VALUATION. Equity securities are valued at the latest quoted sales prices as of the close of
trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date; such
securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices.
Prices are taken from the primary market in which each security trades. 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 are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily available are valued by methods deemed by the
Board of Trustees to represent fair value. Reasons for which securities may be valued in this manner include, but
are not limited to, trading for a security has been halted or suspended, a security has been de-listed from a
national exchange, or trading on a security's primary market is temporarily closed at a time when under normal
conditions it would be open. The Fund did not hold securities at April 30, 2005, that were valued in such manner.

(B) FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its taxable income to the shareholders
of the Fund within the allowable time limits. Therefore, no federal income or excise tax provision is required.

Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These
foreign income taxes are withheld at the source.
(C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions are recorded
on the ex-dividend date. The Fund intends to declare and pay any dividends quarterly and capital gain
distributions, if any, annually. Income dividends and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted accounting principles. These "book/tax
differences" are either considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require reclassification.

The reclassification for the Fund is primarily attributable to net operating losses that offset undistributed net short-
term securities gains for federal income tax purposes, real estate investment trusts and distributions paid in
connection with the redemption of Fund shares.

(D) SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Fund records security transactions
on the trade date. Realized gains and losses on security transactions are determined using the identified cost
method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned.

18 MainStay Small Cap Value Fund
Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to
separate classes of shares based upon their relative net assets on the date the income is earned or realized and
unrealized gains and losses are incurred.

(E) EXPENSES. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the
respective Funds when the expenses are incurred except where direct allocations of expenses can be made.
Expenses (other than expenses incurred under the distribution plans) are allocated to separate classes of shares
based upon their relative net asset value on the date the expenses are incurred. The expenses borne by the Fund,
including those of related parties to the Fund, are shown in the Statement of Operations.

(F) USE OF ESTIMATES. The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.

NOTE 3 -- FEES AND RELATED PARTY TRANSACTIONS:

(A) MANAGER AND SUBADVISOR. New York Life Investment Management LLC ("NYLIM" or the
"Manager"), an indirect wholly-owned subsidiary of New York Life Insurance Company ("New York Life"),
serves as the Fund's manager. The Manager provides offices, conducts clerical, recordkeeping and bookkeeping
services, and keeps the financial and accounting records required for the Fund. The Manager also pays the
salaries and expenses of all personnel affiliated with the Fund and all the operational expenses that are not the
responsibility of the Fund. As of June 30, 2004, MacKay Shields LLC (the "Subadvisor"), a registered
investment advisor and indirect wholly owned subsidiary of New York Life, is responsible for the day-to-day
portfolio management of the Fund.

The Trust, on behalf of the Fund, pays the Manager a monthly fee for services performed and the facilities
furnished at an annual percentage of the Fund's average daily net assets as follows: 0.85% up to $1.0 billion and
0.80% on assets over $1.0 billion. In addition, effective July 1, 2004, for a two-year period, NYLIM voluntarily
agreed to waive that portion of its management fee in excess of 0.60% of the Fund's average daily net assets. The
Manager also voluntarily agreed to reimburse the expenses of the Fund so that the total annual fund operating
expenses do not exceed on an annualized basis 1.90%, 2.65% and 2.65% of the average daily net assets of the
Class A, Class B and Class C shares, respectively and an equivalent amount for Class I shares. For the six
months ended April 30, 2005, the Manager earned from the Fund $619,807 and waived its fees and/or
reimbursed expenses in the amount of $182,296.

Pursuant to the terms of a Sub-Advisory Agreement between NYLIM and the Subadvisor, the Manager paid the
Subadvisor a monthly fee of one-half of the management fee, net of management fee waivers, expense limitations
and reimbursements. To the extent that the Manager has agreed to reimburse Fund expenses, MacKay has
voluntarily agreed to do so proportionately.

(B) DISTRIBUTION AND SERVICE FEES. The Trust, on behalf of the Fund, has a Distribution Agreement
with NYLIFE Distributors LLC ("the Distributor"), an indirect wholly-owned subsidiary of New York Life. The
Fund, with respect to each class of shares, has adopted distribution plans (the "Plans") in accordance with the
provisions of Rule 12b-1 under the 1940 Act. Pursuant to the Class A Plan, the Distributor receives a monthly
fee from the Fund at an annual rate of 0.25% of the average daily net assets of the Fund's Class A shares, which
is an expense of the Class A shares of the Fund for distribution or service activities as designated by the
Distributor. Pursuant to the Class B and Class C Plans, the Fund pays the Distributor a monthly fee, which is an
expense of the Class B and Class C shares of the Fund, at the annual rate of 0.75% of the average daily net
assets of the Fund's Class B and Class C shares. The Distribution Plans provide that the Class B and Class C
shares of the Fund also incur a service fee at the annual rate of 0.25% of the average daily net asset value of the
Class B or Class C shares of the Fund. Class I shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts
actually expended by the Distributor for distribution of the Fund's shares and service activities.

(C) SALES CHARGES. The Fund was advised by the Distributor that the amount of sales charges retained on
sales of Class A shares was $21,356 for the six months ended April 30, 2005. The Fund was also advised that
the Distributor retained contingent deferred sales charges on redemptions of Class A, Class B and Class C
shares of $589, $30,657 and $862, respectively, for the six months ended April 30, 2005.

(D) TRANSFER, DIVIDEND DISBURSING AND SHAREHOLDER SERVICING AGENT. NYLIM
Service Company LLC ("NYLIM Service"), an affiliate of NYLIM, is the Fund's transfer, dividend disbursing
and shareholder servicing agent. NYLIM Service has entered into an agreement with Boston Financial Data
Services ("BFDS") pursuant to which BFDS will perform certain of the services for which NYLIM Service is
responsible. Transfer agent expenses for the six months ended April 30, 2005, amounted to $244,621.

www.mainstayfunds.com 19
NOTES TO FINANCIAL STATEMENTS UNAUDITED (CONTINUED)

(E) NON-INTERESTED TRUSTEES FEES. Non-Interested Trustees are paid an annual retainer fee of
$45,000, $2,000 for each Board meeting, $1,000 for each Committee meeting and $500 for each Valuation
Subcommittee telephonic meeting attended plus reimbursement for travel and out-of-pocket expenses. The Lead
Non-Interested Trustee is also paid an annual retainer fee of $20,000. The Audit and Compliance Committee
Chairman receives an additional $2,000 for each meeting of the Audit and Compliance Committee attended and
the Chairpersons of the Brokerage and Expense Committee, Operations Committee and Performance
Committee each receive an additional $1,000 for each meeting of the Brokerage and Expense Committee,
Operations Committee and Performance Committee attended, respectively. In addition, each Non-Interested
Trustee is paid $1,000 for attending meetings of the Non-Interested Trustees held in advance of or in connection
with Board/Committee meetings. The Trust allocates trustees fees in proportion to the net assets of the respective
Funds. Thus the Small Cap Value Fund only pays a portion of the fees identified above.

(F) OTHER. Fees for the cost of legal services, included in Professional fees as shown on the Statement of
Operations, provided to the Fund by the Office of the General Counsel of NYLIM amounted to $2,756 for the
six months ended April 30, 2005.

The Fund pays the Manager a monthly fee for certain pricing and recordkeeping services provided under the
Accounting Agreement at the annual rate of 1/20 of 1% for the first $20 million of average monthly net assets,
1/30 of 1% of the next $80 million of average monthly net assets and 1/100 of 1% of any amount in excess of
$100 million of average monthly net assets. Fees for these services provided to the Fund by the Manager
amounted to $20,514 for the six months ended April 30, 2005.

NOTE 4 -- CUSTODIAN:

As of April 30, 2005, The Bank of New York was custodian of cash and securities of the Fund. Custodial fees
are charged the Fund based on the market value of securities in the Fund and the number of certain cash
transactions incurred by the Fund.

NOTE 5 -- FEDERAL INCOME TAX:

The tax character of distributions paid during the year ended October 31, 2004, the ten months ended October
31, 2003 and the year ended December 31, 2002, shown in the Statement of Changes in Net Assets, was as
follows:

                                                         2004    2003        2002
                       Distributions paid from:
                         Ordinary Income           $       --     $-- $ 854,844
                       ----------------------------------------------------------
                         Long-term Capital Gains    4,157,531      --     742,933
                       ----------------------------------------------------------
                                                   $4,157,531     $-- $1,597,777
                       ----------------------------------------------------------




NOTE 6 -- PURCHASES AND SALES OF SECURITIES (IN 000'S):

During the six months ended April 30, 2005, purchases and sales of securities, other than short-term securities,
were $70,216 and $38,696, respectively.

NOTE 7 -- LINE OF CREDIT:

The Fund and certain affiliated funds maintain a line of credit of $160,000,000 with a syndicate of banks in order
to secure a source of funds for temporary purposes to meet unanticipated or excessive shareholder redemption
requests. The funds pay a commitment fee, at an annual rate of .075% of the average commitment amount,
regardless of usage, to The Bank of New York, which acts as agent to the syndicate. Such commitment fees are
allocated among the funds based upon net assets and other factors. Interest on any revolving credit loan is
charged based upon the Federal Funds Advances rate. There were no borrowings on the line of credit during the
six months ended April 30, 2005.

NOTE 8 -- CAPITAL SHARE TRANSACTIONS (IN 000'S):

                                                                                      FEBRUARY 16*
                                                           SIX MONTHS ENDED             THROUGH
                                                           APRIL 30, 2005**         APRIL 30, 2005**
                                                      CLASS A   CLASS B   CLASS C       CLASS I

     Shares sold                                2,341       569       254         1,412
     ----------------------------------------------------------------------------------------
     Shares issued in reinvestment of
       distributions                              562       906       111            --
     ----------------------------------------------------------------------------------------
                                                2,903     1,475       365         1,412
     ----------------------------------------------------------------------------------------
     Shares redeemed                           (2,273)     (515)     (118)          (18)
     ----------------------------------------------------------------------------------------
     Net increase                                 630       960       247         1,394
     ----------------------------------------------------------------------------------------



                                                                       YEAR ENDED
                                                                    OCTOBER 31, 2004
                                                               CLASS A   CLASS B   CLASS C

               Shares sold                                1,392      545        94
               ---------------------------------------------------------------------
               Shares issued in reinvestment of
                 distributions                               82      149        17
               ---------------------------------------------------------------------
                                                          1,474      694       111
               ---------------------------------------------------------------------
               Shares redeemed                           (1,062)    (683)     (135)
               ---------------------------------------------------------------------
               Net increase (decrease)                      412       11       (24)
               ---------------------------------------------------------------------




* First offered on February 16, 2005. ** Unaudited.

20 MainStay Small Cap Value Fund
NOTE 9 -- OTHER MATTERS:

NYLIM and mutual funds that NYLIM advises have received requests for information from various government
authorities and regulatory bodies regarding market timing, late trading, operations, fees, expenses, and other
matters. NYLIM and the Funds it advises are cooperating fully in responding to these requests. As reported in
response to those requests for information, NYLIM was previously party to agreements with certain registered
representatives of broker-dealers relating to the level of trading by clients or customers of those registered
representatives in shares of certain funds of the Trust. NYLIM and the Trust's Audit and Compliance Committee
are reviewing what effect, if any, transactions under these agreements may have had on the Funds. The Audit and
Compliance Committee will determine what course of action, if any, is appropriate. NYLIM does not believe at
this time that such trading had any material effect on the Funds' financial statements or their shareholders. To date,
substantially all of the costs associated with these and other regulatory matters have been borne by NYLIM.
Except as described below, neither NYLIM nor the Funds advised by it have any reason to believe that they
have been targeted as the subject of any governmental or regulatory enforcement action.

The SEC Staff has raised concerns relating to a guarantee provided to shareholders of the MainStay Equity Index
Fund and the fees and expenses of that Fund, as well as the related guarantee disclosure to Fund shareholders.
Discussions have been held with the SEC concerning a possible resolution of this matter. There can be no
assurance at this time as to the outcome of these efforts.

www.mainstayfunds.com 21
TRUSTEES AND OFFICERS

Following are the Trustees and Officers of The MainStay Funds, along with a brief description of their principal
occupations during the past five years.

Each Trustee serves until (1) such time as less than a majority of the Trustees holding office have been elected by
shareholders, in which case the trustees then in office will call a shareholder meeting for the election of Trustees,
or
(2) his or her resignation, death, or removal. Officers serve a term of one year and are elected annually by the
Trustees.

The business address of each Trustee and Officer is 51 Madison Avenue, New York, New York 10010.

                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES*

          GARY E.                                Chief Executive Officer, Chairman, and
                                Chairman since 2002,                                                57
          WENDLANDT             Chief Executive  Manager, New York Life Investment
          10/8/50                                Management LLC (including predecessor
                                Officer since 2004,
                                and Trustee sinceadvisory organizations) and New York
                                2000             Life Investment Management Holdings LLC;
                                                 Executive Vice President, New York Life
                                                 Insurance Company; Executive Vice
                                                 President and Manager, NYLIFE LLC;
                                                 Chairman, McMorgan & Company LLC,
                                                 Madison Capital Funding LLC, and NYLCAP
                                                 Manager LLC; Manager, MacKay Shields
                                                 LLC; Executive Vice President, New York
                                                 Life Insurance and Annuity Corporation;
                                                 Chairman, Chief Executive Officer, and
                                                 Director, MainStay VP Series Fund, Inc.
                                                 (21 portfolios); Chief Executive
                                                 Officer, Eclipse Funds (3 Portfolios)
                                                 and Eclipse Funds Inc. (13 Portfolios)
                                                 (since June 2005); Executive Vice
                                                 President and Chief Investment Officer,
                                                 MassMutual Life Insurance Company (1993
                                                 to 1999).
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

          CHARLYNN GOINS        Trustee since 2001 Retired. Consultant to U.S. Commerce               20
          9/15/42                                  Department, Washington, DC (1998 to
                                                   2000).
          -------------------------------------------------------------------------------------------------
          EDWARD J. HOGAN   Trustee since 1996     Rear Admiral U.S. Navy (Retired);                  20
          8/17/32                                  Independent Management Consultant (1997
                                                   to 2002).
          -------------------------------------------------------------------------------------------------
          TERRY L. LIERMAN Trustee since 1991      Community Volunteer; Chairman,                     20
          1/4/48                                   Smartpaper Networks Corporation;
                                                   Partner, Health Ventures LLC (2001 to
                                                   2005); Vice Chair, Employee Health
                                                   Programs (1990 to 2002); Partner,
                                                   TheraCom (1994 to 2001); President,
                                                   Capitol Associates, Inc. (1984 to 2001).
          -------------------------------------------------------------------------------------------------
          JOHN B.           Trustee since 1997     Chairman, Ulster Television Plc; Pro               20
          MCGUCKIAN                                Chancellor, Queen's University (1985 to
          11/13/39                                 2001).
         -------------------------------------------------------------------------------------------------
         DONALD E.         Trustee since 1994     Retired. Vice Chairman, Harbour Group              20
         NICKELSON         and Lead Non-          Industries, Inc. (leveraged buyout
         12/9/32           Interested Trustee     firm).
                           since 2000


         -------------------------------------------------------------------------------------------------




* Certain Trustees are considered to be interested persons of the Trust within the meaning of the 1940 Act
because of their affiliation with New York Life Insurance Company, New York Life Investment Management
LLC, MacKay Shields LLC, McMorgan & Company LLC, Eclipse Funds, Eclipse Funds Inc., MainStay VP
Series Fund, Inc., NYLIFE Securities Inc., and/or NYLIFE Distributors LLC, as described in detail in the
column "Principal Occupation(s) During Past 5 Years." All Trustees not considered to be interested persons of
the Trust are referred to as "Non-Interested Trustees."

22 MainStay Small Cap Value Fund
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

        RICHARD S.         Trustee since 1994    Chairman, Somerset Group (financial                20
        TRUTANIC                                 advisory firm); Managing Director and
        2/13/52                                  Advisor, The Carlyle Group (private
                                                 investment firm) (2001 to 2004); Senior
                                                 Managing Director, Groupe Arnault
                                                 (private investment firm) (1999 to
                                                 2001).
        -------------------------------------------------------------------------------------------------




                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        ROBERT A.          Chief Legal Officer   Senior Managing Director, General                  57
        ANSELMI            since 2003            Counsel and Secretary, New York Life
        10/19/46                                 Investment Management LLC (including
                                                 predecessor advisory organizations);
                                                 General Counsel and Secretary, New York
                                                 Life Investment Management Holdings LLC;
                                                 Senior Vice President, New York Life
                                                 Insurance Company; Vice President and
                                                 Secretary, McMorgan & Company LLC;
                                                 Secretary, NYLIM Service Company LLC,
                                                 NYLCAP Manager LLC, and Madison Capital
                                                 Funding LLC; Chief Legal Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc.; Managing
                                                 Director and Senior Counsel, Lehman
                                                 Brothers Inc. (October 1998 to December
                                                 1999); General Counsel and Managing
                                                 Director, JP Morgan Investment
                                                 Management Inc. (1986 to September
                                                 1998).
        -------------------------------------------------------------------------------------------------
        CHRISTOPHER O.    President since 2005   Executive Vice President, New York Life            36
        BLUNT                                    Investment Management LLC and New York
        5/13/61                                  Life Investment Management Holdings LLC
                                                 (since July 2004); Manager and Executive
                                                 Vice President, NYLIM Product
                                                 Distribution, NYLIFE Distributors LLC
                                                 (since January 2005); Chairman, NYLIM
                                                 Service Company LLC (since March 2005);
                                                 Chairman and Class C Director, New York
                                                 Life Trust Company, FSB (since December
                                                 2004); Chairman, New York Life Trust
                                                 Company (since February 2005);
                                                 President, Eclipse Funds and Eclipse
                                                 Funds Inc. (since June 2005); Chairman
                                                 and Chief Executive Officer, Giving
                                                 Capital, Inc. (2001 to June 2004); Chief
                                                 Marketing Officer--Americas, Merrill
                                                 Lynch Investment Managers, and
                                                 President, Mercury Funds Distributors
                                                 (1999 to 2001).
        -------------------------------------------------------------------------------------------------




www.mainstayfunds.com 23
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        JEFFREY J.        Vice President,        Managing Director of Fund Accounting and           63
        GABOURY           Treasurer, and Chief   Administration, New York Life Investment
        10/23/68          Financial Officer      Management LLC (since December 2004);
                          since 2005             Manager, NYLIM Service Company LLC
                                                 (since March 2005); Executive Vice
                                                 President, New York Life Trust Company
                                                 (since February 2005); Vice President,
                                                 Treasurer, and Chief Financial Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc. (since
                                                 June 2005); Treasurer and Principal
                                                 Financial Officer, McMorgan Funds;
                                                 Director of Fund Administration,
                                                 Investors Bank & Trust Company (1995 to
                                                 2004).
        -------------------------------------------------------------------------------------------------
        SCOTT T.          Vice President--       Director, New York Life Investment                 57
        HARRINGTON        Administration since   Management LLC (including predecessor
        2/8/59            2005                   advisory organizations); Vice
                                                 President--Administration, MainStay VP
                                                 Series Fund, Inc., Eclipse Funds, and
                                                 Eclipse Funds Inc. (since June 2005).
        -------------------------------------------------------------------------------------------------
        ALISON H.         Vice President--       Managing Director and Chief Compliance             57
        MICUCCI           Compliance since 2004 Officer, New York Life Investment
        12/16/65                                 Management LLC (June 2003 to present);
                                                 Chief Compliance Officer, New York Life
                                                 Investment Management Holdings LLC (June
                                                 2003 to present); Managing Director,
                                                 Compliance, NYLIFE Distributors LLC;
                                                 Vice President--Compliance, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Deputy Chief
                                                 Compliance Officer, New York Life
                                                 Investment Management LLC (September
                                                 2002 to June 2003); Vice President and
                                                 Compliance Officer, Goldman Sachs Asset
                                                 Management (November 1999 to August
                                                 2002).
        -------------------------------------------------------------------------------------------------
        MARGUERITE E.H.   Secretary since 2004   Managing Director and Associate General            57
        MORRISON                                 Counsel, New York Life Investment
        3/26/56                                  Management LLC (since June 2004);
                                                 Managing Director and Secretary, NYLIFE
                                                 Distributors LLC; Secretary, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Chief Legal
                                                 Officer--Mutual Funds and Vice President
                                                 and Corporate Counsel, The Prudential
                                                 Insurance Company of America (2000 to
                                                 June 2004).
        -------------------------------------------------------------------------------------------------
        RICHARD W.        Vice President--Tax    Vice President, New York Life Insurance            57
        ZUCCARO           since 1991             Company; Vice President, New York Life
        12/12/49                                 Insurance and Annuity Corporation, New
                                                 York Life Trust Company, FSB, NYLIFE
                                                 Insurance Company of Arizona, NYLIFE
                                                 LLC, and NYLIFE Securities Inc.; Vice
                                                 President, Tax, NYLIFE Distributors LLC;
                                                 Tax Vice President, New York Life
                                                 International, LLC, New York Life Trust
                                                 Company, and NYLIM Service Company LLC;
                                                 Vice President--Tax, Eclipse Funds,
                                                 Eclipse Funds Inc., and MainStay VP
                                                 Series Fund, Inc.
        -------------------------------------------------------------------------------------------------




24 MainStay Small Cap Value Fund
PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that New York Life Investment Management LLC (NYLIM) uses
to vote proxies related to the Fund's securities is available without charge, upon request, (i) by calling 1-800-
MAINSTAY (1-800-624-6782); (ii) by visiting the Fund's website at www.mainstayfunds.com; or (iii) on the
Securities and Exchange Commission's ("SEC") website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on
Form N-PX. The Fund's most recent Form N-PX is available free of charge upon request (i) by calling 1-800-
MAINSTAY (1-800-624-6782), (ii) by visiting the Fund's website at www.mainstayfunds.com, or (iii) on the
SEC's website at www.sec.gov.

SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal
quarters on Form N-Q. The Fund's Form N-Q is available without charge on the SEC's website at
www.sec.gov or by calling NYLIM at 1-800-MAINSTAY (1-800-624-6782). You can obtain copies of Form
N-Q by
(i) visiting the SEC's Public Reference Room in Washington, DC (information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee
to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically
to publicinfo@sec.gov.

www.mainstayfunds.com 25
MAINSTAY FUNDS

MAINSTAY OFFERS A WIDE RANGE OF FUNDS FOR VIRTUALLY ANY INVESTMENT NEED.
THE FULL ARRAY OF MAINSTAY OFFERINGS IS LISTED HERE, WITH INFORMATION ABOUT
THE MANAGER, SUBADVISORS, LEGAL COUNSEL, AND INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM.

EQUITY FUNDS
MainStay All Cap Growth Fund
MainStay All Cap Value Fund
MainStay Blue Chip Growth Fund
MainStay Capital Appreciation Fund
MainStay Common Stock Fund
MainStay Equity Index Fund(1)
MainStay Large Cap Growth Fund
MainStay MAP Fund
MainStay Mid Cap Growth Fund
MainStay Mid Cap Opportunity Fund
MainStay Mid Cap Value Fund
MainStay S&P 500 Index Fund
MainStay Small Cap Growth Fund
MainStay Small Cap Opportunity Fund
MainStay Small Cap Value Fund
MainStay Value Fund

INCOME FUNDS
MainStay Cash Reserves Fund
MainStay Diversified Income Fund
MainStay Floating Rate Fund
MainStay Government Fund
MainStay High Yield Corporate Bond Fund
MainStay Indexed Bond Fund
MainStay Intermediate Term Bond Fund
MainStay Money Market Fund
MainStay Short Term Bond Fund
MainStay Tax Free Bond Fund

BLENDED FUNDS
MainStay Asset Manager Fund
MainStay Balanced Fund
MainStay Convertible Fund
MainStay Total Return Fund

INTERNATIONAL FUNDS
MainStay Global High Income Fund
MainStay International Equity Fund

ASSET ALLOCATION FUNDS
MainStay Conservative Allocation Fund
MainStay Growth Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate Growth Allocation Fund

MANAGER

NEW YORK LIFE INVESTMENT MANAGEMENT LLC
Parsippany, New Jersey
SUBADVISORS

MACKAY SHIELDS LLC(2)
New York, New York

GABELLI ASSET MANAGEMENT COMPANY
Rye, New York

JENNISON ASSOCIATES LLC
New York, New York

MARKSTON INTERNATIONAL LLC
White Plains, New York

WINSLOW CAPITAL MANAGEMENT, INC.
Minneapolis, Minnesota

LEGAL COUNSEL

DECHERT LLP

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

PLEASE CONTACT YOUR INVESTMENT PROFESSIONAL OR CALL 1-800-MAINSTAY (1-800-
624-6782) FOR A FREE PROSPECTUS. INVESTORS ARE ASKED TO CONSIDER THE
INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES OF THE INVESTMENT
CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION ABOUT THE INVESTMENT COMPANY. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE INVESTING.

1. Closed to new purchases as of January 1, 2002.
2. An affiliate of New York Life Investment Management LLC.

26 MainStay Small Cap Value Fund
Blank Page
(NEW YORK LIFE INVESTMENT MANAGEMENT LLC LOGO)
Not FDIC insured. No bank guarantee. May lose value.

NYLIFE DISTRIBUTORS LLC, 169 LACKAWANNA AVENUE,
PARSIPPANY, NEW JERSEY 07054

This report may only be distributed when preceded or accompanied by a current Fund prospectus.

www.mainstayfunds.com The MainStay Funds

(C) 2005 by NYLIFE Distributors LLC. All rights reserved.


                                       SEC File Number: 811-04550

NYLIM-A07227 (RECYCLE LOGO) MS225-05 MSSV10-06/05

                                                    25
(MAINSTAY INVESTMENTS LOGO)

                              MAINSTAY
                              MAP FUND

                              The MainStay Funds

                              Semiannual Report
                              Unaudited

                              April 30, 2005
MESSAGE FROM
THE PRESIDENT

During the six months ended April 30, 2005, the U.S. stock market advanced, though its progress was uneven.
The market generally climbed from November through the end of 2004, hesitated in January 2005, climbed again
until early March, and then slipped back for much of the remainder of the reporting period.

The Federal Open Market Committee raised the targeted federal funds rate at all four of its meetings during the
reporting period, with a 25 basis point increase on each occasion. That brought the targeted federal funds rate
from 1.75% at the beginning of the reporting period to 2.75% at the end of April. Although short-term interest
rates rose, yields on longer-term bonds declined.

In late March, the Federal Open Market Committee reported that pressures on inflation had picked up in recent
months and that pricing power had become more evident. In early April, crude-oil prices briefly topped $58 per
barrel. Later that month, data on real gross domestic product suggested that the pace of economic growth had
slowed somewhat in the first quarter of 2005.

At MainStay, we recognize your concern about market volatility and we're pleased to offer Funds appropriate
for a wide variety of investment needs. At the end of March 2005, MainStay introduced four new Asset
Allocation Funds to broaden the array of choices we provide investors. Each Asset Allocation Fund invests in
several other MainStay Funds and is subject to specific allocation targets and constraints outlined in the
prospectus.

Each MainStay Fund seeks to achieve its investment objective through consistent application of an established
investment approach that is consistently applied over time. Although economic, industry, and geopolitical
variables are constantly in flux, we use careful research and consistent investment disciplines as we seek to
provide competitive performance for our shareholders over full market cycles.

The report that follows provides more detailed information about the specific market forces and portfolio
management decisions that affected your MainStay Fund investment during the six months ended April 30, 2005.

Sincerely,

                                          /s/ CHRISTOPHER O. BLUNT



                                          Christopher O. Blunt
                                          President




TABLE OF CONTENTS

             Message from the President                                                     2
             --------------------------------------------------------------------------------

             Investment and Performance Comparison                                          3
             --------------------------------------------------------------------------------

             Portfolio Management Discussion and Analysis                                   7
             --------------------------------------------------------------------------------

             Portfolio of Investments                                                      11
             --------------------------------------------------------------------------------

             Financial Statements                                                                    17

             Notes to Financial Statements                                                 23
             --------------------------------------------------------------------------------

             Trustees and Officers                                                                   27
       --------------------------------------------------------------------------------

       Proxy Voting Policies and Procedures                                          30
       --------------------------------------------------------------------------------

       Shareholder Reports and Quarterly Portfolio Disclosure                        30
       --------------------------------------------------------------------------------

       MainStay Funds                                                               31




2 MainStay MAP Fund
INVESTMENT AND PERFORMANCE COMPARISON

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. DUE TO MARKET VOLATILITY, CURRENT
PERFORMANCE MAY BE LESS OR HIGHER THAN THE FIGURES SHOWN. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. FOR CURRENT TO THE MOST
RECENT MONTH-END PERFORMANCE INFORMATION, PLEASE CONTACT 1-800-MAINSTAY
(1-800-624-6782) OR VISIT WWW.MAINSTAYFUNDS.COM.

CLASS A SHARES--MAXIMUM 5.5% INITIAL SALES CHARGE

                                           SIX     ONE    FIVE      SINCE
                 TOTAL RETURNS            MONTHS   YEAR   YEARS   INCEPTION
                 ----------------------------------------------------------
                 With sales charges       -0.94%   2.77% 5.09%      6.91%
                 Excluding sales charges   4.82    8.76   6.28      7.94




(PERFORMANCE GRAPH) (With sales charges)

                                                 MAINSTAY MAP FUND            RUSSELL MIDCAP INDEX
                                                 -----------------            --------------------
6/8/99                                                  9450                          10000
                                                       10932                          11493
                                                       12146                          11526
                                                       11864                          11445
                                                       10089                           9827
                                                       13634                          13312
4/30/05                                                14828                          15258




CLASS B SHARES--MAXIMUM 5% CDSC IF REDEEMED WITHIN THE FIRST SIX YEARS
OF PURCHASE

                                           SIX     ONE    FIVE      SINCE
                 TOTAL RETURNS            MONTHS   YEAR   YEARS   INCEPTION
                 ----------------------------------------------------------
                 With sales charges       -0.60%   2.92% 5.16%      7.02%
                 Excluding sales charges   4.40    7.92   5.48      7.14




(PERFORMANCE GRAPH) (With sales charges)

                                                 MAINSTAY MAP FUND            RUSSELL MIDCAP INDEX
                                                 -----------------            --------------------
6/8/99                                                 10000                          10000
                                                       11502                          11493
                                                       12681                          11526
                                                       12291                          11445
                                                       10372                           9827
                                                       13917                          13312
4/30/05                                                14920                          15258




CLASS C SHARES--MAXIMUM 1% CDSC IF REDEEMED WITHIN ONE YEAR OF
PURCHASE

                                           SIX     ONE    FIVE      SINCE
                 TOTAL RETURNS            MONTHS   YEAR   YEARS   INCEPTION
                 ----------------------------------------------------------
                 With sales charges        3.40%   6.92% 5.48%      7.14%
                 Excluding sales charges   4.40    7.92   5.48      7.14
(PERFORMANCE GRAPH) (With sales charges)

                                                              MAINSTAY MAP FUND             RUSSELL MIDCAP INDEX
                                                              -----------------             --------------------
6/8/99                                                              10000                           10000
                                                                    11502                           11493
                                                                    12681                           11526
                                                                    12291                           11445
                                                                    10372                            9827
                                                                    13917                           13312
4/30/05                                                             15020                           15258




Performance tables and graphs do not reflect the deduction of taxes that a shareholder would pay on distributions
or Fund-share redemptions. Total returns reflect change in share price, reinvestment of dividend and capital-gain
distributions, and maximum applicable sales charges explained in this paragraph. The graphs assume an initial
investment of $10,000 and reflect the deduction of all sales charges that would have applied for the period of
investment. Class A shares are sold with a maximum initial sales charge of 5.5% and an annual 12b-1 fee
of .25%. Class B shares are sold with no initial sales charge, are subject to a contingent deferred sales charge
(CDSC) of up to 5% if redeemed within the first six years of purchase, and have an annual 12b-1 fee of 1.00%.
Class C shares are sold with no initial sales charge are subject to a CDSC of 1% if redeemed within one year of
purchase, and have an annual 12b-1 fee of 1.00%. Class I shares are sold with no initial sales charge or CDSC,
have no annual 12b-1 fee, and are generally available to corporate and institutional investors with a minimum
initial investment of $5 million. Class R1 shares are sold with no initial sales charge or CDSC, and have no annual
12b-1 fee.

Class R2 shares are sold with no initial sales charge or CDSC, and have an annual 12b-1 fee of .25%. Class R1
and R2 shares are available only through corporate-sponsored retirement programs, which include certain
minimum program requirements. Performance figures reflect certain fee waivers and/or expense limitations,
without which total returns may have been lower. The fee waivers and/or expense limitations are voluntary and
may be discontinued at any time. On 6/9/99, MAP-Equity Fund was reorganized as MainStay MAP Fund Class
I shares. From inception (1/21/71) through 6/8/99, performance for MainStay MAP Fund Class I shares (first
offered 6/9/99) includes the performance of MAP-Equity Fund. Prior to the reorganization, shares of MAP-
Equity Fund were subject to a maximum 4.75% sales charge. From inception (6/9/99) through 12/31/03,
performance for Class R1 and R2 shares (first offered 1/2/04) includes the historical performance of Class A
shares adjusted to reflect the applicable fees and expenses for Class R1 and R2 shares.

THE DISCLOSURE AND FOOTNOTES ON THE NEXT PAGE ARE AN INTEGRAL PART OF
THE TABLES AND GRAPHS AND SHOULD BE CAREFULLY READ IN CONJUNCTION WITH
THEM.

                                           www.mainstayfunds.com 3
CLASS I SHARES--NO SALES CHARGE

                                          SIX     ONE    FIVE     TEN
                TOTAL RETURNS            MONTHS   YEAR   YEARS   YEARS
                ------------------------------------------------------
                                          5.03%   9.18% 6.59%    15.10%




(PERFORMANCE GRAPH)

                                               MAINSTAY MAP FUND           RUSSELL MIDCAP INDEX
                                               -----------------           --------------------
04/30/95                                             10000                         10000
                                                     13300                         13079
                                                     16359                         14512
                                                     22609                         20458
                                                     24986                         21673
                                                     29672                         25142
                                                     33041                         25214
                                                     32358                         25037
                                                     27593                         21498
                                                     37391                         29120
04/30/05                                             40824                         33378




CLASS R1 SHARES--NO SALES CHARGE

                                        SIX     ONE    FIVE      SINCE
              TOTAL RETURNS            MONTHS   YEAR   YEARS   INCEPTION
              ----------------------------------------------------------
                                        4.98%   9.01% 6.47%      8.12%




(PERFORMANCE GRAPH)

                                               MAINSTAY MAP FUND           RUSSELL MIDCAP INDEX
                                               -----------------           --------------------
6/8/99                                               10000                         10000
                                                     11584                         11493
                                                     12892                         11526
                                                     12612                         11445
                                                     10741                          9827
                                                     14537                         13312
4/30/05                                              15847                         15258




CLASS R2 SHARES--NO SALES CHARGE

                                        SIX     ONE    FIVE      SINCE
              TOTAL RETURNS            MONTHS   YEAR   YEARS   INCEPTION
              ----------------------------------------------------------
                                        4.79%   8.73% 6.19%      7.84%




(PERFORMANCE GRAPH)

                                               MAINSTAY MAP FUND           RUSSELL MIDCAP INDEX
                                               -----------------           --------------------
6/8/99                                               10000                         10000
                                                     11560                         11493
                                                     12829                         11526
                                                     12519                         11445
                                                     10635                          9827
                                                     14355                         13312
4/30/05                                              15608                         15258




                                                        SIX        ONE     FIVE     TEN
    BENCHMARK PERFORMANCE                                    MONTHS   YEAR    YEARS    YEARS
    ----------------------------------------------------------------------------------------

    Russell Midcap(R) Index(1)                                          6.81%    14.62%    5.83%     12.81%
    S&P 500(R) Index(2)                                                 3.28      6.34    -2.94      10.26
    Average Lipper multicap core fund(3)                                3.01      5.45    -1.28       9.54




1. The Russell Midcap(R) Index is an unmanaged index that measures the performance of the 800 smallest
companies in the Russell 1000(R) Index, which, in turn, is an unmanaged index that measures the performance of
the 1,000 largest U.S. companies based on total market capitalization. Results assume reinvestment of all income
and capital gains. The Russell Midcap(R) Index is considered to be the Fund's broad-based securities-market
index for comparison purposes. An investment cannot be made directly into an index.
2. "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P 500(R) is an unmanaged index
and is widely regarded as the standard for measuring large-cap U.S. stock-market performance. Results assume
reinvestment of all income and capital gains. An investment cannot be made directly into an index.
3. Lipper Inc. is an independent fund performance monitor. Results are based on total returns with all dividend
and capital-gain distributions reinvested.

THE DISCLOSURE AND FOOTNOTES ON THE PRECEDING PAGE ARE AN INTEGRAL
PART OF THE TABLES AND GRAPHS AND SHOULD BE CAREFULLY READ IN
CONJUNCTION WITH THEM.

4 MainStay MAP Fund
COST IN DOLLARS OF A $1,000 INVESTMENT IN MAINSTAY MAP FUND

The example below is intended to describe the fees and expenses borne by shareholders during the reporting
period and the impact of those costs on your investment.

EXAMPLE

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, if
applicable, exchange fees, and sales charges (loads) on purchase payments, and (2) ongoing costs, including
management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the
beginning of the period and held for the entire period from November 1, 2004, to April 30, 2005.

This example illustrates your Fund's ongoing costs in two ways:

- ACTUAL EXPENSES The second and third data columns in the table below provide information about actual
account values and actual expenses. You may use the information in these columns, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this
period.

- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The fourth and fifth data columns in the
table below provide information about hypothetical account values and hypothetical expenses based on the
Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect
any transactional costs, such as redemption fees, if applicable, exchange fees, or sales charges (loads). Therefore,
the fourth and fifth data columns of the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.

                                                                  ENDING ACCOUNT                                ENDING ACCOUN
                                                                   VALUE (BASED                                  VALUE (BASED
                                              BEGINNING             ON ACTUAL              EXPENSES            ON HYPOTHETICA
                                               ACCOUNT             RETURNS AND               PAID               5% RETURN AND
                                                VALUE               EXPENSES)               DURING             ACTUAL EXPENSE
SHARE CLASS                                    11/1/04               4/30/05               PERIOD(1)               4/30/05

CLASS A SHARES                        $1,000.00         $1,048.50           $ 6.81            $1,018.30
---------------------------------------------------------------------------------------------------------

CLASS B SHARES                        $1,000.00         $1,044.45           $10.59            $1,014.55
---------------------------------------------------------------------------------------------------------

CLASS C SHARES                        $1,000.00         $1,044.45           $10.59            $1,014.55
---------------------------------------------------------------------------------------------------------

CLASS I SHARES                        $1,000.00         $1,050.55           $ 4.93            $1,020.15
---------------------------------------------------------------------------------------------------------

CLASS R1 SHARES                       $1,000.00         $1,049.95           $ 5.44            $1,019.65
---------------------------------------------------------------------------------------------------------

CLASS R2 SHARES                       $1,000.00         $1,048.20           $ 6.70            $1,018.40
---------------------------------------------------------------------------------------------------------




1. Expenses are equal to the Fund's annualized expense ratio of each class (1.34% for Class A, 2.09% for Class
B and Class C, 0.97% for Class I, 1.07% for Class R1, and 1.32% for Class R2) multiplied by the average
account value over the period, divided by 365, multiplied by 181 (to reflect the one-half year period).

www.mainstayfunds.com 5
PORTFOLIO COMPOSITION AS OF APRIL 30, 2005

(COMPOSITION PIE CHART)

      Common Stocks                                                                      90.6%
      Short-Term Investments                                                              8.3%
      Convertible Bonds                                                                   0.5%
      Cash and Other Assets (less liabilities)                                            0.4%
      Corporate Bond                                                                      0.2%
      Warrant                                                                             0.0%*




See Portfolio of Investments on page 11 for specific holdings within these categories.

* Less than one tenth of a percent.

TOP TEN HOLDINGS AS OF APRIL 30, 2005 (EXCLUDING SHORT-TERM INVESTMENTS)

                                       1.   Duke Energy Corp.
                                       2.   E.I. du Pont de Nemours & Co.
                                       3.   Tyco International Ltd.
                                       4.   American Express Co.
                                       5.   Genentech, Inc.
                                       6.   Monsanto Co.
                                       7.   Morgan Stanley
                                       8.   MetLife, Inc.
                                       9.   MeadWestvaco Corp.
                                      10.   Microsoft Corp.




6 MainStay MAP Fund
PORTFOLIO MANAGEMENT DISCUSSION AND ANALYSIS

Questions answered by portfolio managers Roger Lob, Christopher Mullarkey, and Michael J. Mullarkey of
Markston International LLC and by portfolio managers Mark G. DeFranco and Brian M. Gillott of Jennison
Associates LLC

CAN YOU BRIEFLY DESCRIBE THE FUND'S INVESTMENT APPROACH?

The Fund normally invests at least 65% of its total assets in equity-type securities, including common stocks, as
well as securities convertible into or exchangeable for common stocks. The Fund employs two subadvisors,
Markston International and Jennison Associates, with complementary investment processes and styles. In
pursuing the Fund's investment objective, each subadvisor seeks to identify securities that are out of favor but
have a catalyst that the subadvisor believes will lead to improved performance.

WHAT MAJOR FACTORS INFLUENCED THE STOCK MARKET DURING THE SIX MONTHS
ENDED APRIL
30, 2005?

Markston International:
The equity markets were highly changeable during the six-month period ended April 30, 2005. Shortly after
election day in November 2004, the major indices rallied upon news of ongoing recovery in the U.S. economy.
After the new year, however, the S&P 500(R) Index(1) along with other equity indices, began a decline
precipitated by the belief that monetary-policy tightening by the Federal Reserve, escalating health care costs, and
increasing commodity prices-- primarily oil prices--would subdue economic growth and reduce corporate
profitability.

Jennison Associates:
During the reporting period, mixed economic data left the equity markets unsettled. Rising inflation concerns and
sustained high energy prices contributed to an economic slowdown in the first quarter of 2005. Even so, the
economy continued to expand at a slow but steady pace, with strong corporate profits, productivity
improvements, and cost cutting that helped the stock market cope with various challenges. During the first months
of 2005, the basic materials sector retraced some of its earlier gains. Financials stocks also came under pressure
during the period, largely as a result of fallout from the New York attorney general's investigation of AIG, which
hurt the insurance industry. Financial firms found it more difficult to profit from differences between short-term
and long-term interest rates as the Federal Reserve continued to increase the targeted federal funds rate.

WHAT FACTORS MOST SIGNIFICANTLY AFFECTED FUND PERFORMANCE DURING THE
REPORTING PERIOD?

Markston International:
Effective stock selection helped the portion of the Fund we manage to more than double the performance of the
S&P 500(R) Index for the reporting period. As a result of the attractive risk/reward profiles of the stocks we
picked earlier in 2004, our portion of the Fund's portfolio outperformed not only during the equity rally of the last
two months of 2004 but also during the sell-off that occurred in the first four months of 2005.

Jennison Associates:
Our portion of the Fund's portfolio performed in line with the S&P 500(R) Index during the reporting period. The
health care sector made the greatest positive contribution to performance, particularly among health care
providers & services/pharmacy-benefit managers. Sector allocation and stock selection in the information
technology sector both made positive contributions to performance. Effective stock selection in the financials and
consumer discretionary sectors also helped relative results. We limited exposure to banks to reduce risk as short-
and long-term interest rates became more closely aligned. In the energy sector, energy equipment & services
names--which we chose as a defensive measure--helped bolster absolute returns. Underexposure to exploration
and production companies, however, kept our overall energy performance in line with the S&P 500(R). Our
materials holdings provided mixed results. An overweighted position helped performance, but stock selection
hurt. Stock selection in the industrials sector detracted from relative performance, as did underweighted positions
in consumer staples and utilities.
WHAT WERE SOME OF THE FUND'S STRONG PERFORMERS DURING THE REPORTING
PERIOD?

Markston International:
Our portion of the Fund profited nicely when bonds of American Commercial Lines, a leading barge

Mid-capitalization companies are generally less established and their stocks may be more volatile and less liquid
than the securities of larger companies. Stocks of small companies may be subject to higher price volatility,
significantly lower trading volumes, and greater spreads between bid and ask prices than stocks of larger
companies. Small companies may be more vulnerable to adverse business or market developments than mid- or
large-capitalization companies. Funds that invest in bonds are subject to credit, inflation, and interest-rate risk and
can lose principal value when interest rates rise.
1. See footnote on page 4 for more information about the S&P 500(R) Index.

www.mainstayfunds.com 7
operator, were converted to equity and warrants. During the reporting period, the company successfully emerged
from Chapter 11 while freight rates were historically high and barge supply remained low. Duke Energy, one of
the country's largest utilities and the largest position in our portion of the Fund, appreciated when Wall Street
warmed up to the company's high-quality new management team, the company's assets, and the security of its
dividend.

Another top performer for our portion of the Fund was Genentech, a leading biotechnology firm. Genentech's
stock price rose after the company reported that its drug Avastin was effective in fighting non-small cell lung
cancer and that its drug Herceptin was even more effective for breast-cancer patients than previously believed.
The news about Avastin was particularly well-received, because the drug has already been approved for
treatment of colorectal cancer. Monsanto, a supplier of genetically modified seeds, continued to report
outstanding results. The company extended its franchise of bringing intellectual property to agriculture by
purchasing Seminis, a major player in vegetable seeds. NVIDIA, a leading producer of specialized graphic chips
for the gaming industry, saw its stock appreciate on news of a contract with Sony for Playstation 3, a material
new relationship with Intel, and strong third-quarter earnings.

Jennison Associates:
Pharmacy-benefits manager Medco Health Solutions performed well when the company signed more new
business than expected. As the value of the stock rose, we reduced the Fund's position. Community Health
Systems, a rural hospital company, rallied on improvements in the industry's bad-debt expense profile. CIGNA
advanced as investors gained confidence in the company's ongoing restructuring efforts. Toys "R" Us was the
subject of a leveraged buyout, and Great Lakes Chemical was the subject of a friendly acquisition. Both stocks
meaningfully added to the Fund's total return. We took profits in Toys "R" Us, to take advantage of an attractive
premium and to pursue opportunities with greater upside potential. We also sold the Fund's position in Great
Lakes Chemical at a profit.

WHAT STOCKS UNDERPERFORMED DURING THE REPORTING PERIOD?

Markston International:
The Fund's position in S1, a global provider of financial software, detracted from results when the company
altered its accounting practices. Previously, software was sold with a perpetual license and the transaction flowed
immediately through the income statement. Under the new policy, software sales are run through the income
statement over the life of the contract. This new policy decreases near-term reported earnings but increases
visibility. Shares of biotechnology company Amylin Pharmaceuticals were weak in the first months of 2005, even
though the company received approval on drugs for diabetes and obesity. Wall Street appeared to focus on the
difficulty of marketing Amylin's new drugs and on the rate at which the company was spending cash. Toward the
end of the period, there was noticeable insider buying at Amylin. We also anticipate positive trial reports at the
upcoming American Diabetes Association and Endocrine Society meetings. Another poor performer for our
portion of the Fund was Eyetech Pharmaceuticals, an emerging biotech company focused on unmet medical
needs in treating diseases of the eye. Again, Wall Street was focused more on the company's spending rate and
potential competition than on the approval of its main drug, Macugen. A position in UTStarcom, a manufacturer
of telecommunications equipment, also detracted from results.

Jennison Associates:
Metals and mining company Harmony Gold Mining suffered from disappointing U.S. economic growth, pricing
concerns, tighter margins because of U.S. dollar weakness, and a negative reaction to the company's acquisition
bid for Goldfields of South Africa. GrafTech International, which makes graphite and carbon products used in
steel and aluminum production, lost volume when the company decided to raise prices to reflect higher costs for
raw materials. We eliminated the stock from the portion of the Fund we manage on concerns about steel prices
and the company's financial leverage. Shares of media holding Westwood One declined in sympathy with the
overall media industry. Despite the stock's poor performance, we continued to hold it because we anticipate
better pricing later in 2005. A significant weighting in capital markets holding Bank of New York hurt
performance in our portion of the Fund's portfolio because of the stock's poor January total return and lowered
earnings guidance. We expect Bank of New York to deliver better-than-expected top-line revenue growth,
which should translate into bottom-line earnings later in 2005, and we added to the Fund's position. Manhattan
Associates, which provides technology-based solutions for supply-chain effectiveness, declined on weakness in
its services business. We added to the position in Manhattan Associates because we expect margins to expand
now that the company has taken corrective measures.
8 MainStay MAP Fund
WERE THERE ANY SIGNIFICANT PURCHASES DURING THE REPORTING PERIOD?

Markston International:
We added to the Fund's positions in American Express, E.I. du Pont de Nemours, and Morgan Stanley. We
established new positions in Merrill Lynch and Union Pacific.

Jennison Associates:
We continue to build the portfolio one stock at a time, using a bottom-up, research-intensive process. During the
reporting period, we established a position in insurance company American International Group (AIG), because
of its attractive valuation, the removal of its former CEO, and strong incentives to quickly resolve the investigation
by the New York State attorney general. We also initiated a position in BJ Services, a global oil-services
company that specializes in pressure pumping and is particularly exposed to the North American natural gas
market. BJ Services helped Fund returns, and we believe the company should continue to benefit from the oil and
natural gas supply/demand imbalance. We participated in the initial public offering of chemical company
Huntsman and then sold the position when the stock reached our price target. We reentered the position at a
level where we again found the risk/reward attractive. We added to the Fund's position in global specialty-
chemical producer E.I. du Pont de Nemours, which made a positive contribution to performance. The company
is benefiting from an internal restructuring.

WHAT SECURITIES DID YOUR PORTION OF THE FUND'S PORTFOLIO SELL DURING THE
REPORTING PERIOD?

Markston International:
We reduced our position in Tyco International, taking profits. We also sold shares of CONSOL Energy after
seeing insider selling following a fire in one of the company's more-profitable coal mines. We eliminated the
Fund's position in MedImmune upon reevaluating the near-term potential for its FluMist nasal flu vaccine. We
also eliminated the Fund's holdings in RadioShack at attractive prices after seeing insider selling. The portfolio's
Rite Aid 7 5/8% debentures matured on April 15, 2005.

Jennison Associates:
Our stringent risk/reward criteria led us to eliminate positions in SunGard Data Systems, McAfee, Polo Ralph
Lauren, and TIBCO Software in our portion of the portfolio. We trimmed the Fund's position in Lyondell
Chemical. In each case, we were able to take profits for the Fund. SunGard Data Systems was the subject of a
leveraged buyout, and the company's shares rose on this news. McAfee's stock price appreciated and reached
our price target. Polo Ralph Lauren benefited from strong overall business growth. TIBCO Software benefited
from a firm market for integration software. Lyondell Chemical is a leading producer of the basic building-block
chemical ethylene and its derivatives. The stock advanced as the improving economy stimulated demand for
chemicals essential to manufacturing, agriculture, and consumer products. We believe the company is well
positioned to benefit from an uptrend in the ethylene cycle.

DID THE FUND CHANGE ITS INDUSTRY GROUP WEIGHTINGS?

Markston International:
Our portion of the Fund began the reporting period with overweighted positions relative to the S&P 500(R)
Index in energy, industrials, materials, and utilities and underweighted positions in consumer discretionary,
consumer staples, health care, and information technology. During the period, we slightly increased the Fund's
exposure to the energy sector when it became clear that OPEC was at least temporarily content with high oil
prices. Since we believed that a rebound in the U.S. dollar would help boost major financial stocks, we also
slightly increased the Fund's exposure to the financials sector after we saw insider buying in select companies.

Jennison Associates:
Any changes in weightings in our portion of the Fund are a consequence of our bottom-up stock-selection
process and do not reflect a "sector bet" on the part of our management team. During the reporting period, our
risk/reward discipline led us to take profits in many strong performers, increase our weighting in health care, and
decrease our weightings in basic materials and consumer discretionary.

HOW DO THE FUND'S WEIGHTINGS DIFFER FROM THOSE OF ITS BENCHMARK?
Markston International:
As of April 30, 2005, the portion of the Fund we manage was underweighted relative to the S&P 500(R) Index
in the consumer discretionary, consumer staples, health care, information technology, and telecommunications
services sectors. At the same time, the portion of the Fund we manage held overweighted positions relative to the
Index in the utilities, materials, industrials, financials, and energy sectors. Our portion of the Fund's portfolio also
held a 9% position in cash.

Jennison Associates:
As of April 30, 2005, our portion of the Fund's portfolio was overweighted relative to the S&P 500(R) Index in
the materials and health care sectors and

www.mainstayfunds.com 9
underweighted relative to the Index in the consumer staples, industrials, information technology, and utilities
sectors.

WHAT DO YOU ANTICIPATE FOR THE MARKET AND THE FUND?

Markston International:
We continue to adhere to a strict bottom-up stock-selection approach, focusing on securities that we believe
offer reward potential that outweighs inherent risk. In general, we are always looking for stocks that appear
inexpensive. In this context, we look for a catalyst that could cause a stock to appreciate. Going forward, we will
seek to be opportunistic in the face of several challenges. We have major concerns about the competitive position
of the United States on a worldwide basis. In a world that does not pay for intellectual property, it is challenging
for an asset stock of a software or pharmaceutical company to trade at a high multiple. The current stock market
appears to be following typical election-cycle patterns. Should this trend continue, recent credit tightening may
well lead to lower stock-market returns.

Finally, we believe that the budget and trade deficits have put the U.S. economy in a precarious position. Our
foreign creditors and trading partners are funding the deficit. Should they decide to sell some of their U.S. dollar
holdings or invest elsewhere, U.S. credit spreads could widen, which might have deleterious effects on auto,
housing, consumer, and financial stocks. Despite these concerns, we can imagine seeing continued slow growth,
even as companies with strong cash flows are leaving the public markets with the help of private equity and
access to inexpensive capital. With the high cost of being a public company, big corporations are finding it easier
to increase their market share by acquiring smaller competitors than to rely on internal growth. We remain open
to establishing positions in highly liquid, larger-cap, dividend-paying companies that meet our strict investment
criteria and have the potential to dominate their respective industries.

Jennison Associates:
Many of our new ideas are driven by company-specific catalysts that we believe have been generally overlooked
by the market. We remain watchful as China tries to engineer a "soft landing" for its economy, since the outcome
might affect many basic materials companies held in our portion of the Fund. We see good supply-and-demand
dynamics and improved pricing power. But since commodity-based companies are inherently cyclical, we are
selectively taking profits.

We believe that higher energy prices should allow exploration and production companies to continue increasing
capital expenditures. Our portion of the portfolio is positioned to take advantage of this spending through its oil
services holdings, which may see better earnings than the exploration and production companies if crude-oil
prices drop back to the $40 per barrel range. Although our outlook is positive over the long-term, we have taken
some near-term energy profits on concerns about a possible correction.

The deterioration in market breadth and the decline in overall market averages have drawn our attention to a long
list of stocks that we consider to be inexpensive. We are seeking to add new ideas that meet our stringent
risk/reward criteria. We continue to believe this will be a stock picker's market. We intend to remain disciplined
in our style and philosophy as we seek to uncover new opportunities.

The opinions expressed are those of the portfolio managers as of the date of this report and are subject to
change. There is no guarantee that any forecasts made will come to pass. This material does not constitute
investment advice and is not intended as an endorsement of any specific investment.

10 MainStay MAP Fund
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED

                                                               SHARES            VALUE
      COMMON STOCKS (90.6%)+
      --------------------------------------------------------------------------------
      AEROSPACE & DEFENSE (3.1%)
      Boeing Co. (The)                                         77,800   $    4,630,656
      Embraer-Empresa Brasileira de Aeronautica S.A. ADR
        (c)                                                   199,100        5,742,044
      GenCorp, Inc.                                            25,800          490,458
      Honeywell International, Inc.                            34,100        1,219,416
      Lockheed Martin Corp.                                    28,400        1,730,980
      Northrop Grumman Corp.                                  194,328       10,656,948
      Orbital Sciences Corp. (a)                              114,800        1,069,936
      Raytheon Co.                                            173,600        6,529,096
      Teledyne Technologies, Inc. (a)                         108,550        3,302,091
                                                                        --------------
                                                                            35,371,625
                                                                        --------------
      AIR FREIGHT & LOGISTICS (0.2%)
      Danielson Holding Corp. (a)                             137,407        1,973,164
                                                                        --------------
      AIRLINES (0.5%)
      Southwest Airlines Co.                                  349,100        5,194,608
                                                                        --------------

      AUTO COMPONENTS (0.1%)
      Goodyear Tire & Rubber Co. (The) (a)                    95,650        1,135,365
                                                                       --------------
      BEVERAGES (0.3%)
      Coca-Cola Co. (The)                                     28,100        1,220,664
      PepsiCo, Inc.                                           29,341        1,632,533
                                                                       --------------
                                                                            2,853,197
                                                                       --------------
      BIOTECHNOLOGY (3.0%)
      Amylin Pharmaceuticals, Inc. (a)                       129,952        2,209,184
      Chiron Corp. (a)                                        72,100        2,462,215
      Enzo Biochem, Inc. (a)                                  50,925          394,669
      Enzon Pharmaceuticals, Inc. (a)                         17,430          237,397
      Eyetech Pharmaceuticals, Inc. (a)                       69,828        1,605,345
      Gen-Probe, Inc. (a)                                     25,068        1,258,163
      V Genentech, Inc. (a)                                  258,700       18,352,178
      MedImmune, Inc. (a)                                    268,900        6,821,993
      XOMA Ltd. (a)                                           57,625           69,150
                                                                       --------------
                                                                           33,410,294
                                                                       --------------
      CAPITAL MARKETS (6.4%)
      Bank of New York Co., Inc. (The)                       369,800       10,332,212
      Charles Schwab Corp. (The)                             858,000        8,880,300
      Eaton Vance Corp.                                      232,600        5,449,818
      Janus Capital Group, Inc.                              292,700        3,802,173
      Jefferies Group, Inc.                                   47,900        1,733,980
      Knight Trading Group, Inc. Class A (a)                  24,432          205,962
      Merrill Lynch & Co., Inc.                              158,600        8,553,298



                                                              SHARES            VALUE
      CAPITAL MARKETS (CONTINUED)
      V Morgan Stanley                                       321,400   $   16,912,068
      Northern Trust Corp.                                    31,955        1,438,933
      Nuveen Investments Class A                             272,100        9,248,679
      State Street Corp.                                      81,700        3,776,991
      Waddell & Reed Financial, Inc. Class A                  90,300        1,572,123
                                                                       --------------
                                                                           71,906,537
                                                                       --------------
      CHEMICALS (5.7%)
      V E.I. du Pont de Nemours & Co.                        635,600       29,943,116
      Eastman Chemical Co.                                    13,250          715,500
      Huntsman Corp. (a)                                     214,200        4,506,768
          Lyondell Chemical Co.                                               201,500          5,055,635
          V Monsanto Co.                                                      301,707         17,686,064
          Mosaic Co. (The) (a)                                                 12,100            155,485
          Olin Corp.                                                          213,000          3,778,620
          Terra Industries, Inc. (a)                                          373,200          2,575,080
                                                                                          --------------
                                                                                              64,416,268
                                                                                          --------------
          COMMERCIAL BANKS (1.7%)
          Fifth Third Bancorp                                                 156,300          6,799,050
          Popular, Inc.                                                       399,656          9,248,040
          Wachovia Corp.                                                       65,000          3,326,700
                                                                                          --------------
                                                                                              19,373,790
                                                                                          --------------
          COMMERCIAL SERVICES & SUPPLIES (2.6%)
          Brink's Co. (The)                                                    20,800            671,008
          Cendant Corp.                                                       110,400          2,198,064
          Coinstar, Inc. (a)                                                   25,887            443,703
          Education Management Corp. (a)                                      205,200          5,745,600
          Hewitt Associates, Inc. Class A (a)                                 179,200          4,768,512
          ITT Educational Services, Inc. (a)                                   84,800          3,899,104
          Korn/Ferry International (a)                                         24,600            354,240
          Manpower, Inc.                                                      244,600          9,429,330
          On Assignment, Inc. (a)                                              17,800             76,540
          Vertrue, Inc. (a)                                                     5,800            176,378
          Waste Management, Inc.                                               38,000          1,082,620
                                                                                          --------------
                                                                                              28,845,099
                                                                                          --------------
          COMMUNICATIONS EQUIPMENT (2.3%)
          ADC Telecommunications, Inc. (a)                                    305,700             693,939
          CommScope, Inc. (a)                                                  40,659             574,105
          Enterasys Networks, Inc. (a)                                         99,250              71,460
          Finisar Corp. (a)                                                   376,389             474,250
          Harris Corp.                                                        455,000          12,831,000




+ Percentages indicated are based on Fund net assets. V Among the Fund's 10 largest holdings, excluding short-
term investments. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 11
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED (CONTINUED)

                                                               SHARES            VALUE
      COMMON STOCKS (CONTINUED)
      --------------------------------------------------------------------------------
      COMMUNICATIONS EQUIPMENT (CONTINUED)
      McDATA Corp. Class A (a)                                 64,900   $      199,892
      NETGEAR, Inc. (a)                                        16,568          267,242
      NMS Communications Corp. (a)                            167,936          534,037
      Nokia Corp. ADR (c)                                     557,100        8,902,458
      Nortel Networks Corp. (a)                                 5,472           13,625
      Polycom, Inc. (a)                                        13,998          213,610
      Stratex Networks, Inc. (a)                              103,588          134,664
      UTStarcom, Inc. (a)                                      67,500          641,925
                                                                        --------------
                                                                            25,552,207
                                                                        --------------
      COMPUTERS & PERIPHERALS (0.3%)
      ActivCard Corp. (a)                                      52,567          274,925
      Advanced Digital Information Corp. (a)                   58,549          404,573
      Innovex, Inc. (a)                                        31,000          103,881
      Pinnacle Systems, Inc. (a)                               75,461          375,796
      Sigma Designs, Inc. (a)                                   2,800           21,420
      Sun Microsystems, Inc. (a)                              561,797        2,039,323
                                                                        --------------
                                                                             3,219,918
                                                                        --------------
      CONSTRUCTION & ENGINEERING (0.1%)
      Jacobs Engineering Group, Inc. (a)                       19,000          925,490
                                                                        --------------
      CONSTRUCTION MATERIALS (0.3%)
      Vulcan Materials Co.                                     53,389        2,831,753
                                                                        --------------

      CONSUMER FINANCE (1.8%)
      V American Express Co.                                 367,800       19,383,060
      MBNA Corp.                                              27,400          541,150
      Providian Financial Corp. (a)                           44,500          741,815
      Rewards Network, Inc. (a)                               15,000           74,250
                                                                       --------------
                                                                           20,740,275
                                                                       --------------
      CONTAINERS & PACKAGING (0.0%)(b)
      Smurfit-Stone Container Corp. (a)                        8,050          105,536
                                                                       --------------
      DISTRIBUTORS (0.1%)
      ADESA, Inc.                                             39,800          962,762
                                                                       --------------

      DIVERSIFIED FINANCIAL SERVICES (3.0%)
      CIT Group, Inc.                                         33,300        1,341,324
      Citigroup, Inc.                                        256,300       12,035,848
      Instinet Group, Inc. (a)                               411,333        2,159,498
      JPMorgan Chase & Co.                                   240,380        8,531,086
      PHH Corp. (a)                                           54,020        1,207,347
      Principal Financial Group, Inc.                        208,900        8,163,812
                                                                       --------------
                                                                           33,438,915
                                                                       --------------



                                                              SHARES            VALUE
      DIVERSIFIED TELECOMMUNICATION SERVICES (1.5%)
      CenturyTel, Inc.                                        25,100   $      770,319
      Cincinnati Bell, Inc. (a)                              236,350          945,400
      Citizens Communications Co.                            606,400        7,731,600
      Global Crossing Ltd. (a)                                38,365          461,915
      IDT Corp. Class B (a)                                  388,200        5,458,092
      SBC Communications, Inc.                                15,500          368,900
      Sprint Corp.                                            92,508        2,059,228
                                                                       --------------
                                                                           17,795,454
                                                                                     --------------
         ELECTRIC UTILITIES (0.6%)
         American Electric Power Co., Inc.                                 60,000         2,113,200
         Black Hills Corp.                                                 14,150           485,062
         CMS Energy Corp. (a)                                              83,500         1,078,820
         DTE Energy Co.                                                    52,300         2,403,185
         Duquesne Light Holdings, Inc.                                     43,200           759,888
                                                                                     --------------
                                                                                          6,840,155
                                                                                     --------------
         ELECTRONIC EQUIPMENT & INSTRUMENTS (1.5%)
         Agilent Technologies, Inc. (a)                                   201,500         4,181,125
         Frequency Electronics, Inc.                                        4,000            45,920
         Itron, Inc. (a)                                                    4,346           156,760
         Sanmina-SCI Corp. (a)                                            384,039         1,539,997
         Solectron Corp. (a)                                              186,100           614,130
         Symbol Technologies, Inc.                                        806,700        10,785,579
                                                                                     --------------
                                                                                         17,323,511
                                                                                     --------------
         ENERGY EQUIPMENT & SERVICES (3.8%)
         BJ Services Co.                                                  108,600         5,294,250
         Cooper Cameron Corp. (a)                                         143,400         7,878,396
         ENSCO International, Inc.                                          8,400           273,840
         GlobalSantaFe Corp.                                                9,900           332,640
         Key Energy Services, Inc. (a)                                     70,200           802,737
         National-Oilwell Varco, Inc. (a)                                 127,200         5,054,928
         Newpark Resources, Inc. (a)                                      159,750           960,098
         Parker Drilling Co. (a)                                           40,900           218,406
         Rowan Cos., Inc.                                                 195,400         5,183,962
         Schlumberger Ltd.                                                156,725        10,721,557
         Tidewater, Inc.                                                   54,800         1,888,956
         Todco Class A (a)                                                204,400         4,547,900
                                                                                     --------------
                                                                                         43,157,670
                                                                                     --------------
         FOOD & STAPLES RETAILING (1.8%)
         Costco Wholesale Corp.                                            16,250           659,425
         CVS Corp.                                                         59,838         3,086,444
         Kroger Co. (The) (a)                                             659,200        10,395,584
         Longs Drug Stores Corp.                                           21,200           770,620
         Pathmark Stores, Inc. (a)                                         76,050           587,106
         Performance Food Group Co. (a)                                   178,200         4,791,798
         Rite Aid Corp. (a)                                               100,650           365,360
                                                                                     --------------
                                                                                         20,656,337
                                                                                     --------------




12 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
                                                         SHARES            VALUE
COMMON STOCKS (CONTINUED)
--------------------------------------------------------------------------------
FOOD PRODUCTS (0.6%)
Archer-Daniels-Midland Co.                              233,340   $    4,197,787
Bunge Ltd.                                               36,600        2,078,880
Hormel Foods Corp.                                       18,300          569,862
                                                                  --------------
                                                                       6,846,529
                                                                  --------------
GAS UTILITIES (0.7%)
Kinder Morgan, Inc.                                      54,450        4,163,247
Peoples Energy Corp.                                     56,000        2,217,600
Sempra Energy                                            29,000        1,171,020
                                                                  --------------
                                                                       7,551,867
                                                                  --------------
HEALTH CARE EQUIPMENT & SUPPLIES (1.5%)
ArthroCare Corp. (a)                                     19,910          584,956
Baxter International, Inc.                               30,000        1,113,000
Boston Scientific Corp. (a)                             448,650       13,271,067
Closure Medical Corp. (a)                                 6,700          180,163
Hospira, Inc. (a)                                        32,500        1,090,375
Regeneration Technologies, Inc. (a)                       8,596           78,997
SurModics, Inc. (a)                                      13,792          497,477
                                                                  --------------
                                                                      16,816,035
                                                                  --------------
HEALTH CARE PROVIDERS & SERVICES (3.4%)
Cerner Corp. (a)                                        126,442        7,341,223
CIGNA Corp.                                              51,800        4,764,564
Community Health Systems, Inc. (a)                      159,400        5,810,130
Humana, Inc. (a)                                         29,200        1,011,780
IMS Health, Inc.                                         11,215          268,936
McKesson Corp.                                           15,000          555,000
Medco Health Solutions, Inc. (a)                         71,600        3,649,452
Per-Se Technologies, Inc. (a)                            26,581          413,600
SunLink Health Systems, Inc. (a)                         41,800          267,938
Tenet Healthcare Corp. (a)                              912,100       10,917,837
Universal Health Services, Inc. Class B                   3,000          170,220
WebMD Corp. (a)                                         352,754        3,351,163
                                                                  --------------
                                                                      38,521,843
                                                                  --------------
HOTELS, RESTAURANTS & LEISURE (0.9%)
GTECH Holdings Corp.                                    153,000        3,743,910
Hilton Hotels Corp.                                     117,900        2,573,757
McDonald's Corp.                                        139,000        4,074,090
                                                                  --------------
                                                                      10,391,757
                                                                  --------------
HOUSEHOLD DURABLES (0.0%)(b)
Newell Rubbermaid, Inc.                                   9,500          206,435
                                                                  --------------

HOUSEHOLD PRODUCTS (0.3%)
Kimberly-Clark Corp.                                    56,000        3,497,200
                                                                 --------------



                                                        SHARES            VALUE
INDUSTRIAL CONGLOMERATES (1.9%)
3M Co.                                                  16,390   $    1,253,343
ALLETE, Inc.                                             5,100          212,517
V Tyco International Ltd.                              640,058       20,040,216
                                                                 --------------
                                                                     21,506,076
                                                                 --------------
INSURANCE (7.1%)
Allstate Corp. (The)                                   123,400        6,930,144
American International Group, Inc.                     159,100        8,090,235
Assured Guaranty Ltd.                                  221,500        4,221,790
Axis Capital Holdings, Ltd.                            319,600        8,501,360
Conseco, Inc. (a)                                      197,700        3,803,748
          Genworth Financial, Inc. Class A                                     21,800            609,310
          Marsh & McLennan Cos., Inc.                                          14,700            412,041
          V MetLife, Inc.                                                     410,600         15,972,340
          Ohio Casualty Corp. (a)                                             114,173          2,677,356
          St. Paul Travelers Cos., Inc. (The)                                 105,110          3,762,938
          U.S.I. Holdings Corp. (a)                                            46,378            525,927
          UnumProvident Corp.                                                 741,100         12,391,192
          W.R. Berkley Corp.                                                  123,000          3,997,500
          XL Capital Ltd. Class A                                             124,842          8,776,393
                                                                                          --------------
                                                                                              80,672,274
                                                                                          --------------
          INTERNET & CATALOG RETAIL (1.5%)
          IAC/InterActive Corp. (a)                                           606,400         13,183,136
          Priceline.com, Inc. (a)                                             120,172          3,047,562
          Stamps.com, Inc. (a)                                                 38,674            747,568
                                                                                          --------------
                                                                                              16,978,266
                                                                                          --------------
          INTERNET SOFTWARE & SERVICES (0.7%)
          Blue Coat Systems, Inc. (a)                                          68,826            991,094
          Internet Capital Group, Inc. (a)                                     18,400            101,384
          PEC Solutions, Inc.                                                  22,000            337,260
          S1 Corp. (a)                                                        315,487          1,665,771
          Vignette Corp. (a)                                                  242,100            283,257
          Yahoo!, Inc. (a)                                                    131,554          4,539,929
                                                                                          --------------
                                                                                               7,918,695
                                                                                          --------------
          IT SERVICES (0.7%)
          BISYS Group, Inc. (The) (a)                                          17,400              245,688
          CheckFree Corp. (a)                                                   9,300              341,124
          Computer Sciences Corp. (a)                                           7,100              308,708
          eFunds Corp. (a)                                                    236,944            5,179,596
          Electronic Data Systems Corp.                                        38,000              735,300
          First Data Corp.                                                      5,226              198,745
          Liberate Technologies, Inc.                                         112,900               33,870




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 13
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED (CONTINUED)

                                                               SHARES            VALUE
      COMMON STOCKS (CONTINUED)
      --------------------------------------------------------------------------------
      IT SERVICES (CONTINUED)
      SunGard Data Systems, Inc. (a)                           12,300   $      410,820
      Titan Corp. (The) (a)                                    11,300          202,835
                                                                        --------------
                                                                             7,656,686
                                                                        --------------
      MACHINERY (0.3%)
      Navistar International Corp. (a)                        126,300        3,729,639
                                                                        --------------

      MARINE (0.6%)
      American Commercial Lines, Inc. (a)                    104,675        6,699,200
                                                                       --------------

      MEDIA (4.2%)
      Cablevision Systems Group NY Group Class A (a)         111,600        2,896,020
      Comcast Corp. Class A (a)                               64,800        2,080,728
      DIRECTV Group, Inc. (The) (a)                          416,200        5,876,744
      Gemstar-TV Guide International, Inc. (a)               262,038        1,008,846
      Liberty Media Corp. Class A (a)                        641,300        6,438,652
      Liberty Media International, Inc. Class A (a)           49,678        2,060,147
      PRIMEDIA, Inc. (a)                                     122,378          540,911
      Pulitzer, Inc.                                           1,000           63,650
      Radio One, Inc. Class D (a)                            557,800        7,290,446
      Viacom, Inc. Class B                                   350,616       12,138,326
      Westwood One, Inc. (a)                                 390,100        7,138,830
                                                                       --------------
                                                                           47,533,300
                                                                       --------------
      METALS & MINING (2.4%)
      Alcoa, Inc.                                            416,800       12,095,536
      Aluminum Corp. of China Ltd. ADR (c)                    57,400        3,134,614
      Companhia Vale do Rio Doce ADR (c)                     179,500        4,837,525
      Harmony Gold Mining Co., Ltd. ADR (c)                  760,700        4,769,589
      Massey Energy Co.                                       11,950          431,514
      United States Steel Corp.                               44,000        1,881,440
                                                                       --------------
                                                                           27,150,218
                                                                       --------------
      MULTILINE RETAIL (0.1%)
      Big Lots, Inc. (a)                                      97,400          991,532
      May Department Stores Co.                                8,950          313,966
                                                                       --------------
                                                                            1,305,498
                                                                       --------------
      MULTI-UTILITIES & UNREGULATED POWER (3.6%)
      AES Corp. (The) (a)                                    174,357        2,803,661
      Aquila, Inc. (a)                                       806,800        2,775,392
      V Duke Energy Corp.                                  1,047,600       30,579,444



                                                              SHARES            VALUE
      MULTI-UTILITIES & UNREGULATED POWER (CONTINUED)
      Dynegy, Inc. Class A (a)                               220,500   $      738,675
      Westar Energy, Inc.                                    129,000        2,954,100
      Williams Cos., Inc. (The)                               59,300        1,009,286
                                                                       --------------
                                                                           40,860,558
                                                                       --------------
      OFFICE ELECTRONICS (0.0%)(b)
      Xerox Corp. (a)                                         30,100          398,825
                                                                       --------------

      OIL & GAS (4.4%)
      Amerada Hess Corp.                                      19,500        1,826,175
      Anadarko Petroleum Corp.                                76,700        5,602,168
      Chesapeake Energy Corp.                                 82,900        1,594,996
         ConocoPhillips                                                    17,139         1,797,024
         Devon Energy Corp.                                               269,742        12,184,246
         Kerr-McGee Corp.                                                  18,800         1,458,880
         Marathon Oil Corp.                                                49,600         2,309,872
         Murphy Oil Corp.                                                  19,200         1,710,528
         Noble Energy, Inc.                                                29,600         1,897,952
         Pogo Producing Co.                                               146,700         6,602,967
         Spinnaker Exploration Co. (a)                                    123,200         3,943,632
         Unocal Corp.                                                     166,200         9,066,210
                                                                                     --------------
                                                                                         49,994,650
                                                                                     --------------
         PAPER & FOREST PRODUCTS (1.8%)
         International Paper Co.                                           87,400         2,996,946
         V MeadWestvaco Corp.                                             513,149        15,112,238
         Weyerhaeuser Co.                                                  38,600         2,648,346
                                                                                     --------------
                                                                                         20,757,530
                                                                                     --------------
         PHARMACEUTICALS (5.3%)
         Andrx Corp. (a)                                                  457,500         9,108,825
         GlaxoSmithKline PLC ADR (c)                                      115,100         5,818,305
         IVAX Corp. (a)                                                   369,175         6,977,407
         Lilly (Eli) & Co.                                                155,500         9,092,085
         Merck & Co., Inc.                                                158,500         5,373,150
         Par Pharmaceutical Cos., Inc. (a)                                107,400         3,225,222
         Pfizer, Inc.                                                     381,200        10,357,204
         Watson Pharmaceuticals, Inc. (a)                                 321,300         9,639,000
                                                                                     --------------
                                                                                         59,591,198
                                                                                     --------------
         REAL ESTATE (0.9%)
         Boykin Lodging Co. (a)                                           104,000          1,012,960
         Crescent Real Estate Equities Co.                                 20,100            337,680
         Friedman, Billings, Ramsey Group, Inc. Class A                    23,100            279,279
         Health Care Property Investors, Inc.                             129,246          3,313,867
         St. Joe Co. (The)                                                 52,000          3,618,680




14 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
                                                         SHARES            VALUE
COMMON STOCKS (CONTINUED)
--------------------------------------------------------------------------------
REAL ESTATE (CONTINUED)
Trizec Properties, Inc.                                  23,500   $      469,765
United Dominion Realty Trust, Inc.                       70,870        1,569,771
                                                                  --------------
                                                                      10,602,002
                                                                  --------------
ROAD & RAIL (2.3%)
Celadon Group, Inc. (a)                                  69,626        1,127,245
CSX Corp.                                               208,400        8,363,092
Norfolk Southern Corp.                                   46,550        1,461,670
Swift Transportation Co., Inc. (a)                       80,163        1,709,877
Union Pacific Corp.                                     201,300       12,869,109
Werner Enterprises, Inc.                                 41,595          772,835
                                                                  --------------
                                                                      26,303,828
                                                                  --------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (1.2%)
Applied Micro Circuits Corp. (a)                        317,050          846,524
MEMC Electronic Materials, Inc. (a)                     340,900        3,998,757
Micron Technology, Inc. (a)                             263,000        2,553,730
NVIDIA Corp. (a)                                        174,465        3,827,762
ON Semiconductor Corp. (a)                               49,489          170,242
PMC-Sierra, Inc. (a)                                      7,900           63,674
Skyworks Solutions, Inc. (a)                             83,278          436,377
Three-Five Systems, Inc. (a)                             91,500           71,370
Vitesse Semiconductor Corp. (a)                         539,852        1,122,892
Zoran Corp. (a)                                          15,200          160,816
                                                                  --------------
                                                                      13,252,144
                                                                  --------------
SOFTWARE (3.4%)
BEA Systems, Inc. (a)                                   782,500        5,399,250
Blackboard, Inc. (a)                                     25,339          459,649
BMC Software, Inc. (a)                                   12,500          202,500
Business Objects S.A. ADR (a)(c)                        202,300        5,221,363
Compuware Corp. (a)                                     234,450        1,394,978
Concord Communications, Inc. (a)                         29,200          480,340
Manhattan Associates, Inc. (a)                          331,200        6,253,056
V Microsoft Corp.                                       537,200       13,591,160
MSC.Software Corp. (a)                                   41,800          446,215
NetIQ Corp. (a)                                         192,499        2,063,589
Novell, Inc. (a)                                        183,046        1,081,802
TIBCO Software, Inc. (a)                                 38,200          272,748
Visual Networks, Inc. (a)                                37,612           48,143
WatchGuard Technologies, Inc. (a)                        49,750          161,190
Wind River Systems, Inc. (a)                             45,199          586,683
                                                                  --------------
                                                                      37,662,666
                                                                  --------------



                                                        SHARES            VALUE
SPECIALTY RETAIL (0.1%)
Circuit City Stores, Inc.                               17,400   $      274,920
Restoration Hardware, Inc. (a)                          56,974          353,809
                                                                 --------------
                                                                        628,729
                                                                 --------------
Total Common Stocks
  (Cost $912,663,761)                                             1,023,063,578
                                                                 --------------
                                                     PRINCIPAL
                                                        AMOUNT
LONG-TERM BONDS (0.7%)
CONVERTIBLE BONDS (0.5%)
--------------------------------------------------------------------------------
BIOTECHNOLOGY (0.0%)(b)
NPS Pharmaceuticals, Inc. 3.00%, due 6/15/08           $583,000          499,194
                                                                  --------------

DIVERSIFIED TELECOMMUNICATION SERVICES (0.1%)
          Natural Microsystems Corp. 5.00%, due 10/15/05                      916,000            913,710
                                                                                          --------------

          INTERNET SOFTWARE & SERVICES (0.4%)
          Akamai Technologies, Inc. 5.50%, due 7/1/07                       4,650,000          4,713,938
                                                                                          --------------
          Total Convertible Bonds
            (Cost $4,599,783)                                                                  6,126,842
                                                                                          --------------

          CORPORATE BOND (0.2%)
          --------------------------------------------------------------------------------
          MARINE (0.2%)
          American Commercial Lines, Inc.
            11.25%, due 12/31/08 (a)(d)                         5,511,870        2,149,629
                                                                            --------------
          Total Corporate Bond
            (Cost $580,598)                                                      2,149,629
                                                                            --------------
          Total Long-Term Bonds
            (Cost $5,180,381)                                                    8,276,471
                                                                            --------------

                                                                   SHARES            VALUE
          WARRANT (0.0%)(b)
          --------------------------------------------------------------------------------
          MARINE (0.0%)(b)
          American Commercial Lines, Inc.
            Strike @ $12.00
            Expire 1/12/09 (a)                                      6,765          323,570
                                                                            --------------
          Total Warrant
            (Cost $3,173,826)                                                      323,570
                                                                            --------------




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 15
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED (CONTINUED)

                                                                      PRINCIPAL
                                                                         AMOUNT    VALUE
        SHORT-TERM INVESTMENTS (8.3%)
        --------------------------------------------------------------------------------
        COMMERCIAL PAPER (3.6%)
        Citigroup Global Markets
          2.93%, due 5/2/05                                 $25,000,000       25,000,000
        General Electric Capital Corp.
          2.88%, due 5/2/05                                  15,269,000       15,269,000
                                                                          --------------
        Total Commercial Paper
          (Cost $40,269,000)                                                  40,269,000
                                                                          --------------
        TIME DEPOSIT (4.7%)
        Bank of New York Cayman
          1.875%, due 5/2/05                                 53,284,000       53,284,000
                                                                          --------------
        Total Time Deposit
          (Cost $53,284,000)                                                  53,284,000
                                                                          --------------
        Total Short-Term Investments
          (Cost $93,553,000)                                                  93,553,000
                                                                          --------------
        Total Investments
          (Cost $1,014,570,968) (e)                                99.6%   1,125,216,619(f)
        Cash and Other Assets,
          Less Liabilities                                          0.4        4,068,935
                                                            -----------   --------------
        Net Assets                                                100.0% $1,129,285,554
                                                            ===========   ==============



                     (a)   Non-income producing security.
                     (b)   Less than one tenth of a percent.
                     (c)   ADR -- American Depositary Receipt.
                     (d)   Escrow reserve -- reserve account for disputed claims.
                     (e)   The cost for federal income tax purposes is
                           $1,018,427,479.
                     (f)   At April 30, 2005 net unrealized appreciation was
                           $106,789,140, based on cost for federal income tax
                           purposes. This consisted of aggregate gross unrealized
                           appreciation for all investments on which there was an
                           excess of market value over cost of $165,383,034 and
                           aggregate gross unrealized depreciation for all
                           investments on which there was an excess of cost over
                           market value of $58,593,894.




16 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
STATEMENT OF ASSETS AND LIABILITIES AS OF APRIL 30, 2005 UNAUDITED

              ASSETS:
              Investment in securities, at value
                (identified cost $1,014,570,968)             $1,125,216,619
              Receivables:
                Investment securities sold                       17,365,225
                Fund shares sold                                  2,405,836
                Dividends and interest                              932,251
              Other assets                                          117,193
                                                             --------------
                 Total assets                                 1,146,037,124
                                                             --------------
              LIABILITIES:
              Due to custodian                                     167,486
              Payables:
                Investments securities purchased                 13,146,047
                Fund shares redeemed                              1,204,114
                Transfer agent                                      839,057
                Manager                                             697,218
                NYLIFE Distributors                                 501,169
                Custodian                                            14,184
                Trustees                                              5,126
              Accrued expenses                                      177,169
                                                             --------------
                 Total liabilities                               16,751,570
                                                             --------------
              Net assets                                     $1,129,285,554
                                                             ==============
              COMPOSITION OF NET ASSETS:
              Shares of beneficial interest outstanding
                (par value of $.01 per share) unlimited
                number of shares authorized:
                Class A                                      $       97,080
                Class B                                             115,087
                Class C                                              49,115
                Class I                                              89,243
                Class R1                                              3,638
                Class R2                                                462
              Additional paid-in capital                        971,309,262
              Accumulated net investment income                     956,464
              Accumulated net realized gain on investments       46,019,552
              Net unrealized appreciation on investments        110,645,651
                                                             --------------
              Net assets                                     $1,129,285,554
                                                             ==============
              CLASS A
              Net assets applicable to outstanding shares    $ 314,060,745
                                                             ==============
              Shares of beneficial interest outstanding           9,707,971
                                                             ==============
              Net asset value per share outstanding          $        32.35
              Maximum sales charge (5.50% of offering
                price)                                                 1.88
                                                             --------------
              Maximum offering price per share outstanding   $        34.23
                                                             ==============
              CLASS B
              Net assets applicable to outstanding shares    $ 357,401,916
                                                             ==============
              Shares of beneficial interest outstanding          11,508,726
                                                             ==============
              Net asset value and offering price per share
                outstanding                                  $        31.05
                                                             ==============
              CLASS C
              Net assets applicable to outstanding shares    $ 152,524,830
                                                             ==============
              Shares of beneficial interest outstanding           4,911,460
                                                             ==============
              Net asset value and offering price per share
                outstanding                                  $        31.05
                                                             ==============
                      CLASS I
                      Net assets applicable to outstanding shares             $ 291,997,979
                                                                              ==============
                      Shares of beneficial interest outstanding                    8,924,263
                                                                              ==============
                      Net asset value and offering price per share
                        outstanding                                           $        32.72
                                                                              ==============
                      CLASS R1
                      Net assets applicable to outstanding shares             $   11,806,133
                                                                              ==============
                      Shares of beneficial interest outstanding                      363,848
                                                                              ==============
                      Net asset value and offering price per share
                        outstanding                                           $        32.45
                                                                              ==============
                      CLASS R2
                      Net assets applicable to outstanding shares             $    1,493,951
                                                                              ==============
                      Shares of beneficial interest outstanding                       46,203
                                                                              ==============
                      Net asset value and offering price per share
                        outstanding                                           $        32.33
                                                                              ==============




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 17
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2005 UNAUDITED

                    INVESTMENT INCOME:
                    INCOME:
                      Dividends (a)                                          $ 8,285,397
                      Interest                                                 1,369,680
                                                                             -----------
                         Total income                                          9,655,077
                                                                             -----------
                    EXPENSES:
                      Manager                                          4,110,560
                      Distribution -- Class B                          1,303,174
                      Distribution -- Class C                            567,066
                      Transfer agent -- Classes A, B and C             1,067,101
                      Transfer agent -- Classes I, R1 and R2             230,857
                      Service -- Class A                                 376,181
                      Service -- Class B                                 434,391
                      Service -- Class C                                 189,022
                      Service -- Class R2                                    875
                      Shareholder communication                          107,253
                      Professional                                        83,702
                      Recordkeeping                                       68,403
                      Registration                                        54,893
                      Custodian                                           42,725
                      Trustees                                            30,180
                      Shareholder Service -- Class R1                      3,781
                      Shareholder Service -- Class R2                        350
                      Miscellaneous                                       28,099
                                                                     -----------
                        Total expenses                                 8,698,613
                                                                     -----------
                    Net investment income                                956,464
                                                                     -----------
                    REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
                    Net realized gain on investments                  49,879,658
                    Net change in unrealized appreciation on
                      investments                                     (5,940,724)
                                                                     -----------
                    Net realized and unrealized gain on investments   43,938,934
                                                                     -----------
                    Net increase in net assets resulting from
                      operations                                     $44,895,398
                                                                     ===========




(a) Dividends recorded net of foreign withholding taxes of $39,872.

18 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
STATEMENT OF CHANGES IN NET ASSETS

FOR THE SIX MONTHS ENDED APRIL 30, 2005 UNAUDITED AND THE YEAR ENDED
OCTOBER 31,
2004

                                                       2005              2004
             INCREASE IN NET ASSETS:
             Operations:
              Net investment income (loss)    $     956,464    $   (2,536,653)
              Net realized gain on
               investments and foreign
               currency transactions              49,879,658       83,446,525
              Net change in unrealized
               appreciation on investments        (5,940,724)     21,503,347
                                              ------------------------------
             Net increase in net assets
              resulting from operations           44,895,398     102,413,219
                                              ------------------------------

             Distributions to shareholders:

             From net realized gain on investments:
               Class A                         (11,258,532)             --
               Class B                         (13,518,830)             --
               Class C                          (6,021,722)             --
               Class I                         (11,235,228)             --
               Class R1                             (2,567)             --
               Class R2                               (156)             --
                                            ------------------------------
             Total distributions to
              shareholders                     (42,037,035)             --
                                            ------------------------------

             Capital share transactions:
              Net proceeds from sale of shares:
                Class A                           69,248,269       117,277,801
                Class B                           54,889,877        92,818,123
                Class C                           25,197,810        44,672,357
                Class I                           37,546,070       128,176,243
                Class R1                          13,157,313            62,122
                Class R2                           3,042,007             3,733

             Net asset value of shares issued to
              shareholders in reinvestment of
              distributions:
               Class A                           9,720,883              --
               Class B                          12,315,724              --
               Class C                           4,699,860              --
               Class I                          11,074,218              --
               Class R1                              2,567              --
               Class R2                                156              --
                                            ------------------------------
                                               240,894,754     383,010,379



                                                       2005              2004
             Cost of   shares redeemed:
               Class   A                      $  (34,499,395) $ (53,650,958)
               Class   B                         (23,256,846)    (31,920,068)
               Class   C                         (15,401,420)    (15,543,242)
               Class   I                         (34,139,569)    (65,096,353)
               Class   R1                         (1,014,864)        (29,064)
               Class   R2                         (1,490,707)             --
                                              ------------------------------
                                                (109,802,801)   (166,239,685)
                                              ------------------------------
                Increase in net assets
                 derived from capital
                 share transactions              131,091,953     216,770,694
                                              ------------------------------
                         Net increase in net assets            133,950,316         319,183,913

                    NET ASSETS:
                    Beginning of period                       995,335,238     676,151,325
                                                           ------------------------------
                    End of period                          $1,129,285,554   $ 995,335,238
                                                           ==============================
                    Accumulated undistributed net
                     investment income end of
                     period                                $      956,464   $          --
                                                           ==============================




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 19
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS

                                                                                 JANUARY 1,
                                             SIX MONTHS                             2003
                                                ENDED          YEAR ENDED          THROUGH
                                              APRIL 30,        OCTOBER 31,       OCTOBER 31,
                                                2005*             2004             2003**
Net asset value at beginning of period        $ 32.08           $ 28.04           $ 21.95
                                              --------          --------          --------
Net investment income (loss)                      0.07(a)          (0.01)(a)         (0.04)
Net realized and unrealized gain (loss) on
  investments                                     1.51               4.05             6.13
                                              --------           --------         --------
Total from investment operations                  1.58               4.04             6.09
                                              --------           --------         --------
Less dividends and distributions:
  From net investment income                       --                 --                --
  From net realized gain on investments         (1.31)                --                --
                                             --------           --------          --------
Total dividends and distributions               (1.31)                --                --
                                             --------           --------          --------
Net asset value at end of period             $ 32.35            $ 32.08           $ 28.04
                                             ========           ========          ========
Total investment return (b)                      4.82%(c)          14.41%            27.74%(c)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment income (loss)                 0.41%+            (0.05%)           (0.17%)+
    Net expenses                                 1.34%+             1.35%             1.35% +
    Expenses (before waiver/reimbursement)       1.34%+             1.38%             1.45% +
Portfolio turnover rate                            32%                64%               61%
Net assets at end of period (in 000's)       $314,061           $268,513          $176,932


                                                           CLASS A                       JUNE 9***
                                             -----------------------------------          THROUGH
                                                   YEAR ENDED DECEMBER 31,              DECEMBER 31,
                                               2002          2001         2000              1999
Net asset value at beginning of period       $ 27.66       $ 27.25       $ 26.22           $25.38
                                             --------      --------      -------           ------
Net investment income (loss)                     0.15          0.03         0.02             0.05
Net realized and unrealized gain (loss) on
  investments                                   (5.69)           0.55          4.17            1.81
                                             --------        --------       -------          ------
Total from investment operations                (5.54)           0.58          4.19            1.86
                                             --------        --------       -------          ------
Less dividends and distributions:
  From net investment income                    (0.11)          (0.03)           --           (0.08)
  From net realized gain on investments         (0.06)          (0.14)        (3.16)          (0.94)
                                             --------        --------       -------          ------
Total dividends and distributions               (0.17)          (0.17)        (3.16)          (1.02)
                                             --------        --------       -------          ------
Net asset value at end of period             $ 21.95         $ 27.66        $ 27.25          $26.22
                                             ========        ========       =======          ======
Total investment return (b)                    (20.04%)          2.11%        16.67%           7.53%(c)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment income (loss)                 0.63%           0.37%         0.12%           0.46%+
    Net expenses                                 1.33%           1.25%         1.25%           1.25%+
    Expenses (before waiver/reimbursement)       1.44%           1.43%         1.44%           1.41%+
Portfolio turnover rate                            77%             19%           40%             32%
Net assets at end of period (in 000's)       $123,461        $103,402       $22,048          $8,651



                                                                                  JANUARY 1,
                                             SIX MONTHS                              2003
                                                ENDED           YEAR ENDED          THROUGH           ----------
                                              APRIL 30,         OCTOBER 31,       OCTOBER 31,             YEAR E
                                                2005*              2004             2003**             2002
Net asset value at beginning of period        $ 30.96            $ 27.26            $ 21.47           $ 27.13
                                              --------           --------           -------           -------
Net investment income (loss)                     (0.05)(a)          (0.24)(a)         (0.16)            (0.03)
Net realized and unrealized gain (loss) on
  investments                                           1.45               3.94                5.95           (5.57)
                                                    --------           --------             -------         -------
Total from investment operations                        1.40               3.70                5.79           (5.60)
                                                    --------           --------             -------         -------
Less dividends and distributions:
  From net investment income                              --                 --                  --              --
  From net realized gain on investments                (1.31)                --                  --           (0.06)
                                                    --------           --------             -------         -------
Total dividends and distributions                      (1.31)                --                  --           (0.06)
                                                    --------           --------             -------         -------
Net asset value at end of period                    $ 31.05            $ 30.96              $ 27.26         $ 21.47
                                                    ========           ========             =======         =======
Total investment return (b)                             4.40%(c)          13.57%              26.97%(c)      (20.63%)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment income (loss)                       (0.34%)+           (0.80%)             (0.92%)+        (0.12%)
    Net expenses                                        2.09% +            2.10%               2.10% +         2.08%
    Expenses (before waiver/reimbursement)              2.09% +            2.13%               2.20% +         2.19%
Portfolio turnover rate                                   32%                64%                 61%             77%
Net assets at end of period (in 000's)              $152,525           $138,044             $95,004         $69,077


                                                    JUNE 9***
                                                     THROUGH
                                                   DECEMBER 31,
                                                       1999
Net asset value at beginning of period                $25.38
                                                      ------
Net investment income (loss)                            0.02
Net realized and unrealized gain (loss) on
  investments                                           1.76
                                                      ------
Total from investment operations                        1.78
                                                      ------
Less dividends and distributions:
  From net investment income                           (0.07)
  From net realized gain on investments                (0.94)
                                                      ------
Total dividends and distributions                      (1.01)
                                                      ------
Net asset value at end of period                      $26.15
                                                      ======
Total investment return (b)                             7.23%(c)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment income (loss)                       (0.29%)+
    Net expenses                                        2.00% +
    Expenses (before waiver/reimbursement)              2.16% +
Portfolio turnover rate                                   32%
Net assets at end of period (in 000's)                $2,478




*      Unaudited.
**     The Fund changed its fiscal year end from December 31 to October 31.
***    Class A, B and C shares were first offered on June 9, 1999.
****   Financial information for the year ended December 31, 1999 represents the combined results
       of operations of the MAP-Equity Fund and MainStay MAP Fund (formerly MainStay MAP Equity
       Fund).
+      Annualized.
(a)    Per share data based on average shares outstanding during the period.
(b)    Total return is calculated exclusive of sales charges. Class I is not subject to sales
       charges.
(c)    Total return is not annualized.
(d)    Less than one cent per share.




20 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS

                                          JANUARY 1,
SIX MONTHS                                   2003                            CLASS B                             JUNE 9***
   ENDED             YEAR ENDED             THROUGH           -----------------------------------                 THROUGH
 APRIL 30,           OCTOBER 31,          OCTOBER 31,                YEAR ENDED DECEMBER 31,                    DECEMBER 31,
   2005*                2004                2003**              2002           2001          2000                   1999
 $ 30.96              $ 27.26              $ 21.47            $ 27.13        $ 26.92       $ 26.15                $ 25.38
 --------             --------             --------           --------       --------      -------                -------
    (0.05)(a)            (0.24)(a)            (0.16)             (0.03)         (0.06)        (0.11)                 0.02
     1.45                 3.94                 5.95              (5.57)          0.41          4.04                  1.76
 --------             --------             --------           --------       --------      -------                -------
     1.40                 3.70                 5.79              (5.60)          0.35          3.93                  1.78
 --------             --------             --------           --------       --------      -------                -------
       --                    --                   --                 --             --            --                (0.07)
    (1.31)                   --                   --             (0.06)         (0.14)        (3.16)                (0.94)
 --------             --------             --------           --------       --------      -------                -------
    (1.31)                   --                   --             (0.06)         (0.14)        (3.16)                (1.01)
 --------             --------             --------           --------       --------      -------                -------
 $ 31.05              $ 30.96              $ 27.26            $ 21.47        $ 27.13       $ 26.92                $ 26.15
 ========             ========             ========           ========       ========      =======                =======
     4.40%(c)            13.57%               26.97%(c)         (20.63%)         1.29%        15.72%                 7.23%(c)
    (0.34%)+             (0.80%)              (0.92%)+           (0.12%)        (0.38%)       (0.63%)               (0.29%)+
     2.09% +              2.10%                2.10%+             2.08%          2.00%         2.00%                 2.00% +
     2.09% +              2.13%                2.20%+             2.19%          2.18%         2.19%                 2.16% +
       32%                   64%                  61%                77%            19%           40%                  32%
 $357,402             $313,765             $220,932           $153,581       $134,883      $40,078                $11,511




                                        JANUARY 1,
SIX MONTHS                                 2003                                CLASS I****
  ENDED             YEAR ENDED            THROUGH            -----------------------------------------------
APRIL 30,           OCTOBER 31,         OCTOBER 31,                      YEAR ENDED DECEMBER 31,
  2005*                2004               2003**               2002         2001         2000         1999
 $ 32.37             $ 28.19             $ 22.03             $ 27.75       $ 27.31      $ 26.25      $ 24.58
 --------            --------            --------            --------      -------      -------      -------
     0.13(a)             0.09(a)             0.00(a)(d)          0.19         0.07         0.12         0.11
     1.53                4.09                6.16               (5.69)        0.58         4.13         2.81
 --------            --------            --------            --------      -------      -------      -------
     1.66                4.18                6.16               (5.50)        0.65         4.25         2.92
 --------            --------            --------            --------      -------      -------      -------
       --                  --                  --               (0.16)       (0.07)       (0.03)       (0.11)
    (1.31)                 --                  --               (0.06)       (0.14)       (3.16)       (1.14)
 --------            --------            --------            --------      -------      -------      -------
    (1.31)                 --                  --               (0.22)       (0.21)       (3.19)       (1.25)
 --------            --------            --------            --------      -------      -------      -------
 $ 32.72             $ 32.37             $ 28.19             $ 22.03       $ 27.75      $ 27.31      $ 26.25
 ========            ========            ========            ========      =======      =======      =======
     5.03%(c)           14.83%              27.96%(c)          (19.81%)       2.36%       16.88%       12.18%
     0.78%+              0.31%               0.08%+              0.88%        0.62%        0.37%        0.39%
     0.97%+              0.99%               1.10%+              1.08%        1.00%        1.00%        0.88%
     0.97%+              1.02%               1.20%+              1.19%        1.18%        1.19%        0.96%
       32%                 64%                 61%                 77%          19%          40%          32%
 $291,998            $274,975            $183,283            $115,186      $96,726      $69,434      $63,460




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 21
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS

                                                             CLASS R1                               CLASS R2
                                                  ----------------------------            ---------------------------
                                                  SIX MONTHS        JANUARY 2**           SIX MONTHS       JANUARY 2**
                                                     ENDED            THROUGH               ENDED            THROUGH
                                                   APRIL 30,        OCTOBER 31,           APRIL 30,        OCTOBER 31,
                                                     2005*             2004                 2005*             2004
Net asset value at beginning of period              $ 32.13           $30.38                $32.07           $30.38
                                                    -------           ------                ------           ------
Net investment income (loss) (a)                       0.07             0.05                  0.01            (0.01)
Net realized and unrealized gain on
  investments                                           1.56              1.70                1.56            1.70
                                                     -------            ------              ------          ------
Total from investment operations                        1.63              1.75                1.57            1.69
                                                     -------            ------              ------          ------
Less distributions:
  From net investment income                              --                --                  --              --
  From net realized gain on investments                (1.31)               --               (1.31)             --
                                                     -------            ------              ------          ------
Total distributions                                    (1.31)               --               (1.31)             --
                                                     -------            ------              ------          ------
Net asset value at end of period                     $ 32.45            $32.13              $32.33          $32.07
                                                     =======            ======              ======          ======
Total investment return (b)                             4.98%(c)          5.76%(c)            4.79%(c)        5.56%(c
Ratios (to average net assets)/
  Supplemental Data:
    Net investment income (loss)                        0.68%+            0.21%+              0.43%+          (0.04%)+
    Net expenses                                        1.07%+            1.09%+              1.32%+           1.34% +
    Expenses (before reimbursement)                     1.07%+            1.12%+              1.32%+           1.37% +
Portfolio turnover rate                                   32%               64%                 32%              64%
Net assets at end of period (in 000's)               $11,806            $   34              $1,494          $     4




  *     Unaudited.
  **    Class R1 and Class R2 shares were first offered on January 2, 2004.
  +     Annualized.
  (a)   Per share data based on average shares outstanding during the period.
  (b)   Total return is calculated exclusive of sales charges. Classes R1 and R2 are not subject
        to sales charges.
  (c)   Total return is not annualized.




22 MainStay MAP Fund The notes to the financial statements are an integral part of, and should be read in
conjunction with, the financial statements.
NOTES TO FINANCIAL STATEMENTS UNAUDITED

NOTE 1 -- ORGANIZATION AND BUSINESS:

The MainStay Funds (the "Trust") was organized on January 9, 1986 as a Massachusetts business trust. The
Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company and comprises twenty funds (collectively referred to as the "Funds"). These
financial statements and notes relate only to MainStay MAP Fund (formerly MainStay MAP Equity Fund, the
"Fund"), a diversified fund.

MainStay MAP Fund commenced operations in 1971 as the Mutual Benefit Fund. It was renamed MAP-Equity
Fund on May 1, 1995. Pursuant to an Agreement and Plan of Reorganization approved by MAP-Equity
shareholders on June 3, 1999, the MAP-Equity Fund was reorganized as the MainStay MAP Equity Fund. As of
June 10, 2002 the MainStay MAP Equity Fund was renamed the MainStay MAP Fund. The financial statements
of the MainStay MAP Fund reflect the historical financial results of the MAP-Equity Fund prior to the
reorganization.

The Fund currently offers six classes of shares, Class A shares, Class B shares, Class C shares, Class I shares,
Class R1 shares and Class R2 shares. Distribution of Class A shares, Class B shares, Class C shares and Class I
shares commenced on June 9, 1999. Distribution of Class R1 shares and Class R2 shares commenced on
January 2, 2004. Class A shares are offered at net asset value per share plus an initial sales charge. No sales
charge applies on investments of $1 million or more (and certain other qualified purchases) in Class A shares, but
a contingent deferred sales charge is imposed on certain redemptions of such shares within one year of the date
of purchase. Class B shares and Class C shares are offered without an initial sales charge, although a declining
contingent deferred sales charge may be imposed on redemptions made within six years of purchase of Class B
shares and within one year of purchase of Class C shares. Class I shares, Class R1 shares and Class R2 shares
are not subject to sales charge. The six classes of shares bear the same voting (except for issues that relate solely
to one class), dividend, liquidation and other rights and conditions except that Class B shares and Class C shares
are subject to higher distribution fee rates than Class A shares and Class R2 shares under a distribution plan
pursuant to Rule 12b-1 under the 1940 Act. Class I shares and Class R1 shares are not subject to a distribution
or service fee. Class R1 and Class R2 shares are authorized to pay to New York Life Investment Management
LLC, it affiliates, or independent third-party service providers, as compensation for services rendered to
shareholders of Class R1 or Class R2 shares, a shareholder service fee.

The Fund's investment objective is to seek long-term appreciation of capital. The Fund also seeks to earn
income, but this is a secondary objective.

The Fund invests in foreign securities which carry certain risks that are in addition to the usual risks inherent in
domestic instruments. These risks include those resulting from currency fluctuations, future adverse political and
economic developments and possible imposition of currency exchange blockages or other foreign governmental
laws or restrictions. These risks are likely to be greater in emerging markets than in developed markets.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES:

The Fund prepares its financial statements in accordance with generally accepted accounting principles and
follows the significant accounting policies described below.

(A) SECURITIES VALUATION. Equity securities are valued at the latest quoted sales prices as of the close of
trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date; such
securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices.
Prices are taken from the primary market in which each security trades. Debt securities are valued at prices
supplied by a pricing agent selected by the Fund's Manager, whose prices reflect broker/dealer supplied
valuations and electronic data processing techniques, if those prices are deemed by the Fund's Manager to be
representative of market values at the regular close of business of the Exchange. 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 are valued at amortized cost, which
approximates market value. Securities for which market quotations are not readily available are valued by
methods deemed by the Board of Trustees to represent fair value. Reasons for which securities may be valued in
this manner include, but are not limited to, trading for a security has been halted or suspended, a security has
been de-listed from a national exchange, or trading on a security's primary market is temporarily closed at a time
when under normal conditions it would be open. The Fund did not hold securities at April 30, 2005, that were
valued in such manner.

Certain events may occur between the time that foreign markets close, on which securities held by the Fund
principally trade, and the time at which the Fund's NAV is calculated. Should the Manager or Subadvisor
conclude that such events may have effected the accuracy of the last price reported on the local foreign market,
the Manager or Subadvisor may, pursuant to procedures adopted by the Fund, adjust the value of the local price
to reflect the impact on the price of such securities as a result of such events.

(B) FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to

www.mainstayfunds.com 23
NOTES TO FINANCIAL STATEMENTS UNAUDITED (CONTINUED)

distribute all of its taxable income to the shareholders of the Fund within the allowable time limits. Therefore, no
federal income or excise tax provision is required.

Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These
foreign income taxes are withheld at the source.

(C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions are recorded
on the ex-dividend date. The Fund intends to declare and pay any dividends quarterly and capital gain
distributions, if any, annually. Income dividends and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted accounting principles. These "book/tax
differences" are either considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require reclassification.

(D) SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Fund records security transactions
on the trade date. Realized gains and losses on security transactions are determined using the identified cost
method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned.
Discounts and premiums on securities, other than short-term securities, purchased for the Fund are accreted and
amortized, respectively, on the constant yield method over the life of the respective securities or, in the case of a
callable security, over the period to the first call date. Discounts and premiums on short-term securities are
accreted and amortized, respectively, on the straight line method. Income from payment-in-kind securities is
recorded daily based on the effective interest method of accrual.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to
separate classes of shares based upon their relative net assets on the date the income is earned or realized and
unrealized gains and losses are incurred.

(E) EXPENSES. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the
respective Funds when the expenses are incurred except where direct allocations of expenses can be made.
Expenses (other than expenses incurred under the distribution plans) are allocated to separate classes of shares
based upon their relative net asset value on the date the expenses are incurred. The expenses borne by the Fund,
including those of related parties to the Fund, are shown in the Statement of Operations.

(F) FOREIGN CURRENCY TRANSACTIONS. The books and records of the Fund are kept in U.S. dollars.
Foreign currency amounts are translated into U.S. dollars at the mean between the buying and selling rates last
quoted by any major U.S. bank at the following dates:

(i) market value of investment securities, other assets and liabilities -- at the valuation date,

(ii) purchases and sales of investment securities, income and expenses -- at the date of such transactions.

The assets and liabilities are presented at the exchange rates and market values at the close of the period. The
realized and unrealized changes in net assets arising from fluctuations in exchange rates and market prices of
securities are not separately presented.

Net realized gain (loss) on foreign currency transactions represents net gains and losses on foreign currency
forward contracts, net currency gains and losses realized as a result of differences between the amounts of
securities sale proceeds or purchase cost, dividends, interest and withholding taxes as recorded on the Fund's
books, and the U.S. dollar equivalent amount actually received or paid. Net currency gains or losses from valuing
foreign currency denominated assets and liabilities, other than investments, at period end exchange rates are
reflected in unrealized foreign exchange gains or losses.

(G) USE OF ESTIMATES. The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.
NOTE 3 -- FEES AND RELATED PARTY TRANSACTIONS:

(A) MANAGER AND SUBADVISOR. New York Life Investment Management LLC ("NYLIM" or the
"Manager"), an indirect wholly-owned subsidiary of New York Life Insurance Company ("New York Life"),
serves as the Fund's manager. The Manager provides offices, conducts clerical, recordkeeping and bookkeeping
services, and keeps the financial and accounting records required for the Fund. The Manager also pays the
salaries and expenses of all personnel affiliated with the Fund and all the operational expenses that are not the
responsibility of the Fund. Markston International LLC and Jennison Associates LLC (the "Subadvisors") will
manage a portion of the Fund's assets, as designated by NYLIM from time to time, subject to the oversight of
NYLIM. Each Subadvisor is responsible for the day-to-day portfolio management of the Fund with respect to its
allocated portion of the Fund's assets.

The Trust, on behalf of the Fund, paid the Manager a monthly fee for services performed and the facilities
furnished at an annual percentage of the Fund's average daily net assets as follows: 0.75% up to $1.0 billion and
0.70% on assets over $1.0 billion. The Manager has also agreed to voluntarily reimburse the expenses of the
Fund

24 MainStay MAP Fund
so that total annual fund operating expenses do not exceed on an annualized basis 1.35%, 2.10% and 2.10% of
the average daily net assets of the Class A, Class B and Class C shares, respectively, and an equivalent amount
for Class I, Class R1 and Class R2 shares. For the six months ended April 30, 2005, the Manager earned from
the Fund $4,110,560. It was not necessary for the Manager to reimburse the Fund for expenses for the six
months ended April 30, 2005.

Pursuant to the terms of Sub-Advisory Agreements between the Manager and the Subadvisors, the Manager
pays the Subadvisors a monthly fee at an annual rate of the Fund's average daily net assets of 0.45% on assets up
to $250 million, 0.40% on assets from $250 million to $500 million and 0.35% on assets in excess of $500
million.

(B) DISTRIBUTION, SERVICE AND SHAREHOLDER SERVICE FEES. The Trust, on behalf of
the Fund, has a Distribution Agreement with NYLIFE Distributors LLC ("the Distributor"), an indirect wholly-
owned subsidiary of New York Life. The Fund, with respect to Class A, Class B, Class C and Class R2 shares,
has adopted distribution plans (the "Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act.
Pursuant to the Class A and Class R2 Plans, the Distributor receives a monthly fee from the Fund at an annual
rate of 0.25% of the average daily net assets of the Fund's Class A and Class R2 shares, which is an expense of
the Class A and Class R2 shares of the Fund for distribution or service activities as designated by the Distributor.
Pursuant to the Class B and Class C Plans, the Fund pays the Distributor a monthly fee, which is an expense of
the Class B and Class C shares of the Fund, at the annual rate of 0.75% of the average daily net assets of the
Fund's Class B and Class C shares. The Distribution Plans provide that the Class B and Class C shares of the
Fund also incur a service fee at the annual rate of 0.25% of the average daily net asset value of the Class B or
Class C shares of the Fund. Class I shares and Class R1 shares are not subject to a distribution or service fee.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts
actually expended by the Distributor for distribution of the Fund's shares and service activities.

The Fund has adopted a shareholder services plan with respect to Class R1 and R2 shares. Under the terms of
this plan, Class R1 and Class R2 shares are authorized to pay to NYLIM, its affiliates, or independent third-party
providers, as compensation for services rendered, a shareholder service fee at the rate of 0.10% of the average
daily net assets of the Fund's Class R1 and R2 shares.

(C) SALES CHARGES. The Fund was advised by the Distributor that the amount of sales charges retained on
sales of Class A Fund shares was $148,934 for the six months ended April 30, 2005. The Fund was also
advised that the Distributor retained contingent deferred sales charges on redemption of Class A, Class B and
Class C shares of $2,167, $218,049 and $10,713, respectively, for the six months ended April 30, 2005.

(D) TRANSFER, DIVIDEND DISBURSING AND SHAREHOLDER SERVICING AGENT. NYLIM
Service Company LLC ("NYLIM Service"), an affiliate of NYLIM, is the Fund's transfer, dividend disbursing
and shareholder servicing agent. NYLIM Service has entered into an agreement with Boston Financial Data
Services ("BFDS") pursuant to which BFDS will perform certain of the services for which NYLIM Service is
responsible. Transfer agent expenses for the six months ended April 30, 2005 amounted to $1,297,958.

(E) NON-INTERESTED TRUSTEES FEES. Non-Interested Trustees are paid an annual retainer fee of
$45,000, $2,000 for each Board meeting, $1,000 for each Committee meeting and $500 for each Valuation
Subcommittee telephonic meeting attended plus reimbursement for travel and out-of-pocket expenses. The Lead
Non-Interested Trustee is also paid an annual retainer fee of $20,000. The Audit and Compliance Committee
Chairman receives an additional $2,000 for each meeting of the Audit and Compliance Committee attended and
the Chairpersons of the Brokerage and Expense Committee, Operations Committee and Performance
Committee each receive an additional $1,000 for each meeting of the Brokerage and Expense Committee,
Operations Committee and Performance Committee attended, respectively. In addition, each Non-Interested
Trustee is paid $1,000 for attending meetings of the Non-Interested Trustees held in advance of or in connection
with Board/Committee meetings. The Trust allocates trustees fees in proportion to the net assets of the respective
Funds. Thus the MAP Fund only pays a portion of the fees identified above.

(F) OTHER. Fees for the cost of legal services, included in Professional fees as shown on the Statement of
Operations, provided to the Fund by the Office of the General Counsel of NYLIM amounted to $20,576 for the
six months ended April 30, 2005.
The Fund pays the Manager a monthly fee for certain pricing and recordkeeping services provided under the
Accounting Agreement at the annual rate of 1/20 of 1% for the first $20 million of average monthly net assets,
1/30 of 1% of the next $80 million of average monthly net assets and 1/100 of 1% of any amount in excess of
$100 million of average monthly net assets. Fees for these services provided to the Fund by the Manager
amounted to $68,403 for the six months ended April 30, 2005.

NOTE 4 -- CUSTODIAN:

As of April 30, 2005, The Bank of New York was custodian of cash and securities of the Fund. Custodial fees
are charged to the Fund based on the market value of securities in the Fund and the number of certain cash
transactions incurred by the Fund.

www.mainstayfunds.com 25
NOTES TO FINANCIAL STATEMENTS UNAUDITED (CONTINUED)

NOTE 5 -- FEDERAL INCOME TAX:

The difference between book-basis and tax-basis unrealized appreciation is primarily due to wash sale deferrals
and real estate investment trust distributions.

The Fund utilized $42,290,239 of capital loss carryforward during the year ended October 31, 2004.

NOTE 6 -- PURCHASES AND SALES OF SECURITIES (IN 000'S):

During the six months ended April 30, 2005, purchases and sales of securities, other than short-term securities,
were $421,379 and $324,424, respectively.

NOTE 7 -- LINE OF CREDIT:

The Fund and certain affiliated funds maintain a line of credit of $160,000,000 with a syndicate of banks in order
to secure a source of funds for temporary purposes to meet unanticipated or excessive shareholder redemption
requests. The funds pay a commitment fee, at an annual rate of .075% of the average commitment amount,
regardless of usage, to The Bank of New York, which acts as agent to the syndicate. Such commitment fees are
allocated among the funds based upon net assets and other factors. Interest on any revolving credit loan is
charged based upon the Federal Funds Advances rate. There were no borrowings on the line of credit during the
six months ended April 30, 2005.

NOTE 8 -- CAPITAL SHARE TRANSACTIONS (IN 000'S):

                                                               SIX MONTHS ENDED
                                                               APRIL 30, 2005**
                                                          CLASS A   CLASS B   CLASS C
                Shares sold                                2,077     1,711      785
                ---------------------------------------------------------------------
                Shares issued in reinvestment of
                  distributions                              294       387      147
                ---------------------------------------------------------------------
                                                           2,371     2,098      932
                ---------------------------------------------------------------------
                Shares redeemed                           (1,033)     (725)    (481)
                ---------------------------------------------------------------------
                Net increase                               1,338     1,373      451
                ---------------------------------------------------------------------



                                                               SIX MONTHS ENDED
                                                               APRIL 30, 2005**
                                                         CLASS I   CLASS R1   CLASS R2
               Shares sold                                1,113      393         90
               -----------------------------------------------------------------------
               Shares issued in reinvestment of
                 distributions                              331       --(a)      --(a)
               -----------------------------------------------------------------------
                                                          1,444      393         90
               -----------------------------------------------------------------------
               Shares redeemed                           (1,013)     (30)       (44)
               -----------------------------------------------------------------------
               Net increase                                 431      363         46
               -----------------------------------------------------------------------



                                                                          YEAR ENDED
                                                                       OCTOBER 31, 2004
                                                                  CLASS A   CLASS B   CLASS C

                Shares sold                                3,788     3,094     1,493
                ---------------------------------------------------------------------
                 Shares issued in reinvestment of
                   distributions                               --        --        --
                 ---------------------------------------------------------------------
                                                            3,788     3,094     1,493
                 ---------------------------------------------------------------------
                 Shares redeemed                           (1,729)   (1,064)     (519)
                 ---------------------------------------------------------------------
                 Net increase                               2,059     2,030       974
                 ---------------------------------------------------------------------



                                                                           YEAR ENDED
                                                                        OCTOBER 31, 2004
                                                                 CLASS I   CLASS R1*   CLASS R2*

              Shares sold                                4,078         2          --(a)
              -------------------------------------------------------------------------
              Shares issued in reinvestment of
                distributions                               --        --          --
              -------------------------------------------------------------------------
                                                         4,078         2          --(a)
              -------------------------------------------------------------------------
              Shares redeemed                           (2,086)       (1)         --
              -------------------------------------------------------------------------
              Net increase                               1,992         1          --(a)
              -------------------------------------------------------------------------



                                   *     First offered on January 2, 2004.
                                   **    Unaudited.
                                   (a)   Less than one thousand.




NOTE 9 -- OTHER MATTERS:

NYLIM and mutual funds that NYLIM advises have received requests for information from various government
authorities and regulatory bodies regarding market timing, late trading, operations, fees, expenses, and other
matters. NYLIM and the Funds it advises are cooperating fully in responding to these requests. As reported in
response to those requests for information, NYLIM was previously party to agreements with certain registered
representatives of broker-dealers relating to the level of trading by clients or customers of those registered
representatives in shares of certain funds of the Trust. NYLIM and the Trust's Audit and Compliance Committee
are reviewing what effect, if any, transactions under these agreements may have had on the Funds. The Audit and
Compliance Committee will determine what course of action, if any, is appropriate. NYLIM does not believe at
this time that such trading had any material effect on the Funds' financial statements or their shareholders. To date,
substantially all of the costs associated with these and other regulatory matters have been borne by NYLIM.
Except as described below, neither NYLIM nor the Funds advised by it have any reason to believe that they
have been targeted as the subject of any governmental or regulatory enforcement action.

The SEC Staff has raised concerns relating to a guarantee provided to shareholders of the MainStay Equity Index
Fund and the fees and expenses of that Fund, as well as the related guarantee disclosure to Fund shareholders.
Discussions have been held with the SEC concerning a possible resolution of this matter. There can be no
assurance at this time as to the outcome of these efforts.

26 MainStay MAP Fund
TRUSTEES AND OFFICERS

Following are the Trustees and Officers of The MainStay Funds, along with a brief description of their principal
occupations during the past five years.

Each Trustee serves until (1) such time as less than a majority of the Trustees holding office have been elected by
shareholders, in which case the trustees then in office will call a shareholder meeting for the election of Trustees,
or
(2) his or her resignation, death, or removal. Officers serve a term of one year and are elected annually by the
Trustees.

The business address of each Trustee and Officer is 51 Madison Avenue, New York, New York 10010.

                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES*

          GARY E.                                Chief Executive Officer, Chairman, and
                                Chairman since 2002,                                                57
          WENDLANDT             Chief Executive  Manager, New York Life Investment
          10/8/50                                Management LLC (including predecessor
                                Officer since 2004,
                                and Trustee sinceadvisory organizations) and New York
                                2000             Life Investment Management Holdings LLC;
                                                 Executive Vice President, New York Life
                                                 Insurance Company; Executive Vice
                                                 President and Manager, NYLIFE LLC;
                                                 Chairman, McMorgan & Company LLC,
                                                 Madison Capital Funding LLC, and NYLCAP
                                                 Manager LLC; Manager, MacKay Shields
                                                 LLC; Executive Vice President, New York
                                                 Life Insurance and Annuity Corporation;
                                                 Chairman, Chief Executive Officer, and
                                                 Director, MainStay VP Series Fund, Inc.
                                                 (21 portfolios); Chief Executive
                                                 Officer, Eclipse Funds (3 Portfolios)
                                                 and Eclipse Funds Inc. (13 Portfolios)
                                                 (since June 2005); Executive Vice
                                                 President and Chief Investment Officer,
                                                 MassMutual Life Insurance Company (1993
                                                 to 1999).
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

          CHARLYNN GOINS        Trustee since 2001 Retired. Consultant to U.S. Commerce               20
          9/15/42                                  Department, Washington, DC (1998 to
                                                   2000).
          -------------------------------------------------------------------------------------------------
          EDWARD J. HOGAN   Trustee since 1996     Rear Admiral U.S. Navy (Retired);                  20
          8/17/32                                  Independent Management Consultant (1997
                                                   to 2002).
          -------------------------------------------------------------------------------------------------
          TERRY L. LIERMAN Trustee since 1991      Community Volunteer; Chairman,                     20
          1/4/48                                   Smartpaper Networks Corporation;
                                                   Partner, Health Ventures LLC (2001 to
                                                   2005); Vice Chair, Employee Health
                                                   Programs (1990 to 2002); Partner,
                                                   TheraCom (1994 to 2001); President,
                                                   Capitol Associates, Inc. (1984 to 2001).
          -------------------------------------------------------------------------------------------------
          JOHN B.           Trustee since 1997     Chairman, Ulster Television Plc; Pro               20
          MCGUCKIAN                                Chancellor, Queen's University (1985 to
          11/13/39                                 2001).
         -------------------------------------------------------------------------------------------------
         DONALD E.         Trustee since 1994     Retired. Vice Chairman, Harbour Group              20
         NICKELSON         and Lead Non-          Industries, Inc. (leveraged buyout
         12/9/32           Interested Trustee     firm).
                           since 2000


         -------------------------------------------------------------------------------------------------




* Certain Trustees are considered to be interested persons of the Trust within the meaning of the 1940 Act
because of their affiliation with New York Life Insurance Company, New York Life Investment Management
LLC, MacKay Shields LLC, McMorgan & Company LLC, Eclipse Funds, Eclipse Funds Inc., MainStay VP
Series Fund, Inc., NYLIFE Securities Inc., and/or NYLIFE Distributors LLC, as described in detail in the
column "Principal Occupation(s) During Past 5 Years." All Trustees not considered to be interested persons of
the Trust are referred to as "Non-Interested Trustees."

www.mainstayfunds.com 27
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

        RICHARD S.        Trustee since 1994     Chairman, Somerset Group (financial                20
        TRUTANIC                                 advisory firm); Managing Director and
        2/13/52                                  Advisor, The Carlyle Group (private
                                                 investment firm) (2001 to 2004); Senior
                                                 Managing Director, Groupe Arnault
                                                 (private investment firm) (1999 to
                                                 2001).
        -------------------------------------------------------------------------------------------------




                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        ROBERT A.         Chief Legal Officer    Senior Managing Director, General                  57
        ANSELMI           since 2003             Counsel and Secretary, New York Life
        10/19/46                                 Investment Management LLC (including
                                                 predecessor advisory organizations);
                                                 General Counsel and Secretary, New York
                                                 Life Investment Management Holdings LLC;
                                                 Senior Vice President, New York Life
                                                 Insurance Company; Vice President and
                                                 Secretary, McMorgan & Company LLC;
                                                 Secretary, NYLIM Service Company LLC,
                                                 NYLCAP Manager LLC, and Madison Capital
                                                 Funding LLC; Chief Legal Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc.; Managing
                                                 Director and Senior Counsel, Lehman
                                                 Brothers Inc. (October 1998 to December
                                                 1999); General Counsel and Managing
                                                 Director, JP Morgan Investment
                                                 Management Inc. (1986 to September
                                                 1998).
        -------------------------------------------------------------------------------------------------
        CHRISTOPHER O.    President since 2005   Executive Vice President, New York Life            36
        BLUNT                                    Investment Management LLC and New York
        5/13/61                                  Life Investment Management Holdings LLC
                                                 (since July 2004); Manager and Executive
                                                 Vice President, NYLIM Product
                                                 Distribution, NYLIFE Distributors LLC
                                                 (since January 2005); Chairman, NYLIM
                                                 Service Company LLC (since March 2005);
                                                 Chairman and Class C Director, New York
                                                 Life Trust Company, FSB (since December
                                                 2004); Chairman, New York Life Trust
                                                 Company (since February 2005);
                                                 President, Eclipse Funds and Eclipse
                                                 Funds Inc. (since June 2005); Chairman
                                                 and Chief Executive Officer, Giving
                                                 Capital, Inc. (2001 to June 2004); Chief
                                                 Marketing Officer--Americas, Merrill
                                                 Lynch Investment Managers, and
                                                 President, Mercury Funds Distributors
                                                 (1999 to 2001).
        -------------------------------------------------------------------------------------------------




28 MainStay MAP Fund
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        JEFFREY J.         Vice President,       Managing Director of Fund Accounting and           63
        GABOURY            Treasurer, and Chief  Administration, New York Life Investment
        10/23/68           Financial Officer     Management LLC (since December 2004);
                           since 2005            Manager, NYLIM Service Company LLC
                                                 (since March 2005); Executive Vice
                                                 President, New York Life Trust Company
                                                 (since February 2005); Vice President,
                                                 Treasurer, and Chief Financial Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc. (since
                                                 June 2005); Treasurer and Principal
                                                 Financial Officer, McMorgan Funds;
                                                 Director of Fund Administration,
                                                 Investors Bank & Trust Company (1995 to
                                                 2004).
        -------------------------------------------------------------------------------------------------
        SCOTT T.          Vice President--       Director, New York Life Investment                 57
        HARRINGTON        Administration since   Management LLC (including predecessor
        2/8/59            2005                   advisory organizations); Vice
                                                 President--Administration, MainStay VP
                                                 Series Fund, Inc., Eclipse Funds, and
                                                 Eclipse Funds Inc. (since June 2005).
        -------------------------------------------------------------------------------------------------
        ALISON H.         Vice President--       Managing Director and Chief Compliance             57
        MICUCCI           Compliance since 2004 Officer, New York Life Investment
        12/16/65                                 Management LLC (June 2003 to present);
                                                 Chief Compliance Officer, New York Life
                                                 Investment Management Holdings LLC (June
                                                 2003 to present); Managing Director,
                                                 Compliance, NYLIFE Distributors LLC;
                                                 Vice President--Compliance, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Deputy Chief
                                                 Compliance Officer, New York Life
                                                 Investment Management LLC (September
                                                 2002 to June 2003); Vice President and
                                                 Compliance Officer, Goldman Sachs Asset
                                                 Management (November 1999 to August
                                                 2002).
        -------------------------------------------------------------------------------------------------
        MARGUERITE E.H.   Secretary since 2004   Managing Director and Associate General            57
        MORRISON                                 Counsel, New York Life Investment
        3/26/56                                  Management LLC (since June 2004);
                                                 Managing Director and Secretary, NYLIFE
                                                 Distributors LLC; Secretary, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Chief Legal
                                                 Officer--Mutual Funds and Vice President
                                                 and Corporate Counsel, The Prudential
                                                 Insurance Company of America (2000 to
                                                 June 2004).
        -------------------------------------------------------------------------------------------------
        RICHARD W.        Vice President--Tax    Vice President, New York Life Insurance            57
        ZUCCARO           since 1991             Company; Vice President, New York Life
        12/12/49                                 Insurance and Annuity Corporation, New
                                                 York Life Trust Company, FSB, NYLIFE
                                                 Insurance Company of Arizona, NYLIFE
                                                 LLC, and NYLIFE Securities Inc.; Vice
                                                 President, Tax, NYLIFE Distributors LLC;
                                                 Tax Vice President, New York Life
                                                 International, LLC, New York Life Trust
                                                 Company, and NYLIM Service Company LLC;
                                                 Vice President--Tax, Eclipse Funds,
                                                 Eclipse Funds Inc., and MainStay VP
                                                 Series Fund, Inc.
        -------------------------------------------------------------------------------------------------




www.mainstayfunds.com 29
PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that New York Life Investment Management LLC (NYLIM) uses
to vote proxies related to the Fund's securities is available without charge, upon request, (i) by calling 1-800-
MAINSTAY (1-800-624-6782); (ii) by visiting the Fund's website at www.mainstayfunds.com; or (iii) on the
Securities and Exchange Commission's ("SEC") website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on
Form N-PX. The Fund's most recent Form N-PX is available free of charge upon request (i) by calling 1-800-
MAINSTAY (1-800-624-6782), (ii) by visiting the Fund's website at www.mainstayfunds.com, or (iii) on the
SEC's website at www.sec.gov.

SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal
quarters on Form N-Q. The Fund's Form N-Q is available without charge on the SEC's website at
www.sec.gov or by calling NYLIM at 1-800-MAINSTAY (1-800-624-6782). You can obtain copies of Form
N-Q by
(i) visiting the SEC's Public Reference Room in Washington, DC (information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee
to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically
to publicinfo@sec.gov.

30 MainStay MAP Fund
MAINSTAY FUNDS

MAINSTAY OFFERS A WIDE RANGE OF FUNDS FOR VIRTUALLY ANY INVESTMENT NEED.
THE FULL ARRAY OF MAINSTAY OFFERINGS IS LISTED HERE, WITH INFORMATION ABOUT
THE MANAGER, SUBADVISORS, LEGAL COUNSEL, AND INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM.

EQUITY FUNDS
MainStay All Cap Growth Fund
MainStay All Cap Value Fund
MainStay Blue Chip Growth Fund
MainStay Capital Appreciation Fund
MainStay Common Stock Fund
MainStay Equity Index Fund(1)
MainStay Large Cap Growth Fund
MainStay MAP Fund
MainStay Mid Cap Growth Fund
MainStay Mid Cap Opportunity Fund
MainStay Mid Cap Value Fund
MainStay S&P 500 Index Fund
MainStay Small Cap Growth Fund
MainStay Small Cap Opportunity Fund
MainStay Small Cap Value Fund
MainStay Value Fund

INCOME FUNDS
MainStay Cash Reserves Fund
MainStay Diversified Income Fund
MainStay Floating Rate Fund
MainStay Government Fund
MainStay High Yield Corporate Bond Fund
MainStay Indexed Bond Fund
MainStay Intermediate Term Bond Fund
MainStay Money Market Fund
MainStay Short Term Bond Fund
MainStay Tax Free Bond Fund

BLENDED FUNDS
MainStay Asset Manager Fund
MainStay Balanced Fund
MainStay Convertible Fund
MainStay Total Return Fund

INTERNATIONAL FUNDS
MainStay Global High Income Fund
MainStay International Equity Fund

ASSET ALLOCATION FUNDS
MainStay Conservative Allocation Fund
MainStay Growth Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate Growth Allocation Fund

MANAGER

NEW YORK LIFE INVESTMENT MANAGEMENT LLC
Parsippany, New Jersey
SUBADVISORS

MACKAY SHIELDS LLC(2)
New York, New York

GABELLI ASSET MANAGEMENT COMPANY
Rye, New York

JENNISON ASSOCIATES LLC
New York, New York

MARKSTON INTERNATIONAL LLC
White Plains, New York

WINSLOW CAPITAL MANAGEMENT, INC.
Minneapolis, Minnesota

LEGAL COUNSEL

DECHERT LLP

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

PLEASE CONTACT YOUR INVESTMENT PROFESSIONAL OR CALL 1-800-MAINSTAY (1-800-
624-6782) FOR A FREE PROSPECTUS. INVESTORS ARE ASKED TO CONSIDER THE
INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES OF THE INVESTMENT
CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION ABOUT THE INVESTMENT COMPANY. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE INVESTING.

1. Closed to new purchases as of January 1, 2002.
2. An affiliate of New York Life Investment Management LLC.

www.mainstayfunds.com 31
(NEW YORK LIFE INVESTMENT MANAGEMENT LLC LOGO)


Not FDIC insured. No bank guarantee. May lose value.

NYLIFE DISTRIBUTORS LLC, 169 LACKAWANNA AVENUE,
PARSIPPANY, NEW JERSEY 07054

This report may only be distributed when preceded or accompanied by a current Fund prospectus.

www.mainstayfunds.com The MainStay Funds

(C) 2005 NYLIFE Distributors LLC. All rights reserved.SEC File Number: 811-04550

NYLIM-A07237 (RECYCLE LOGO) MS225-05 MSMP10-06/05

                                                    30
(MAINSTAY LOGO)

                  MAINSTAY
                  BLUE CHIP GROWTH FUND

                  The MainStay Funds

                  Semiannual Report
                  Unaudited

                  April 30, 2005
This page intentionally left blank

2 MainStay Blue Chip Growth Fund
MESSAGE FROM
THE PRESIDENT

During the six months ended April 30, 2005, the U.S. stock market advanced, though its progress was uneven.
The market generally climbed from November through the end of 2004, hesitated in January 2005, climbed again
until early March, and then slipped back for much of the remainder of the reporting period.

The Federal Open Market Committee raised the targeted federal funds rate at all four of its meetings during the
reporting period, with a 25 basis point increase on each occasion. That brought the targeted federal funds rate
from 1.75% at the beginning of the reporting period to 2.75% at the end of April. Although short-term interest
rates rose, yields on longer-term bonds declined.

In late March, the Federal Open Market Committee reported that pressures on inflation had picked up in recent
months and that pricing power had become more evident. In early April, crude-oil prices briefly topped $58 per
barrel. Later that month, data on real gross domestic product suggested that the pace of economic growth had
slowed somewhat in the first quarter of 2005.

At MainStay, we recognize your concern about market volatility and we're pleased to offer Funds appropriate
for a wide variety of investment needs. At the end of March 2005, MainStay introduced four new Asset
Allocation Funds to broaden the array of choices we provide investors. Each Asset Allocation Fund invests in
several other MainStay Funds and is subject to specific allocation targets and constraints outlined in the
prospectus.

Each MainStay Fund seeks to achieve its investment objective through consistent application of an established
investment approach that is consistently applied over time. Although economic, industry, and geopolitical
variables are constantly in flux, we use careful research and consistent investment disciplines as we seek to
provide competitive performance for our shareholders over full market cycles.

The report that follows provides more detailed information about the specific market forces and portfolio
management decisions that affected your MainStay Fund investment during the six months ended April 30, 2005.

Sincerely,

                                          /s/ Christopher O. Blunt


                                          Christopher O. Blunt
                                          President




TABLE OF CONTENTS

                          Message from the President                         3
                          ----------------------------------------------------

                          Investment and Performance Comparison              4
                          ----------------------------------------------------

                          Portfolio Management Discussion and Analysis       8
                          ----------------------------------------------------

                          Portfolio of Investments                          11
                          ----------------------------------------------------

                          Financial Statements                              14
                          ----------------------------------------------------

                          Notes to Financial Statements                     20
                          ----------------------------------------------------
                          Special Meeting of Shareholders                   24
                      ----------------------------------------------------

                      Trustees and Officers                             25
                      ----------------------------------------------------

                      Proxy Voting Policies and Procedures              28
                      ----------------------------------------------------

                      Shareholder Reports and Quarterly Portfolio
                      Disclosure                                        28
                      ----------------------------------------------------

                      MainStay Funds                                   29




www.mainstayfunds.com 3
INVESTMENT AND PERFORMANCE COMPARISON

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE. PAST PERFORMANCE IS
NO GUARANTEE OF FUTURE RESULTS. DUE TO MARKET VOLATILITY, CURRENT
PERFORMANCE MAY BE LESS OR HIGHER THAN THE FIGURES SHOWN. INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT UPON REDEMPTION, SHARES
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. FOR CURRENT TO THE MOST
RECENT MONTH-END PERFORMANCE INFORMATION, PLEASE CONTACT 1-800-MAINSTAY
(1-800-624-6782) OR VISIT WWW.MAINSTAYFUNDS.COM.

CLASS A SHARES--MAXIMUM 5.5% INITIAL SALES CHARGE

                                        SIX      ONE     FIVE      SINCE
              TOTAL RETURNS            MONTHS   YEAR    YEARS    INCEPTION
              ------------------------------------------------------------
              With sales charges       -3.25%   -3.35% -12.01%     -1.20%
              Excluding sales charges   2.38     2.27   -11.01     -0.38




(PERFORMANCE GRAPH)

                                                            MAINSTAY BLUE CHIP GROWTH
                                                                       FUND
                                                            -------------------------
6/1/98                                                                 9450
                                                                      12077
                                                                      16490
                                                                      12278
                                                                       9435
                                                                       7322
                                                                       8997
4/30/05                                                                9201




CLASS B SHARES--MAXIMUM 5% CDSC IF REDEEMED WITHIN THE FIRST SIX YEARS
OF PURCHASE

                                        SIX      ONE     FIVE      SINCE
              TOTAL RETURNS            MONTHS   YEAR    YEARS    INCEPTION
              ------------------------------------------------------------
              With sales charges       -3.07%   -3.41% -12.05%     -1.12%
              Excluding sales charges   1.93     1.59   -11.70     -1.12




(PERFORMANCE GRAPH)

                                                            MAINSTAY BLUE CHIP GROWTH
                                                                       FUND
                                                            -------------------------
6/1/98                                                                10000
                                                                      12710
                                                                      17230
                                                                      12721
                                                                       9701
                                                                       7474
                                                                       9103
4/30/05                                                                9247




CLASS C SHARES--MAXIMUM 1% CDSC IF REDEEMED WITHIN ONE YEAR OF
PURCHASE

                                        SIX     ONE     FIVE      SINCE
              TOTAL RETURNS            MONTHS   YEAR   YEARS    INCEPTION
              -----------------------------------------------------------
              With sales charges        0.93%   0.59% -11.70%     -1.12%
                      Excluding sales charges        1.93     1.59     -11.70       -1.12




(PERFORMANCE GRAPH)

                                                                             MAINSTAY BLUE CHIP GROWTH
                                                                                        FUND
                                                                             -------------------------
6/1/98                                                                                 10000
                                                                                       12710
                                                                                       17230
                                                                                       12721
                                                                                        9701
                                                                                        7474
                                                                                        9103
4/30/05                                                                                 9247




Performance tables and graphs do not reflect the deduction of taxes that a shareholder would pay on distributions
or Fund-share redemptions. Total returns reflect change in share price, reinvestment of dividend and capital-gain
distributions, and maximum applicable sales charges explained in this paragraph. The graphs assume an initial
investment of $10,000 and reflect the deduction of all sales charges that would have applied for the period of
investment. Class A shares are sold with a maximum initial sales charge of 5.5% and an annual 12b-1 fee
of .25%. Class B shares are sold with no initial sales charge, are subject to a contingent deferred sales charge
(CDSC) of up to 5% if redeemed within the first six years of purchase, and have an annual 12b-1 fee of 1.00%.
Class C shares are sold with no initial sales charge, are subject to a CDSC of 1% if redeemed within one year of
purchase, and have an annual 12b-1 fee of 1.00%. From inception (6/1/98) through 8/31/98, performance of
Class C shares (first offered 9/1/98) includes the historical performance of Class B shares adjusted to reflect the
applicable CDSC for Class C shares.

THE DISCLOSURE AND FOOTNOTES ON THE NEXT PAGE ARE AN INTEGRAL PART OF
THE TABLES AND GRAPHS AND SHOULD BE CAREFULLY READ IN CONJUNCTION WITH
THEM.

4 MainStay Blue Chip Growth Fund
                                                            SIX       ONE     FIVE       SINCE
             BENCHMARK PERFORMANCE                         MONTHS     YEAR    YEARS    INCEPTION
             S&P 500(R) Index(1)                            3.28%     6.34%   -2.94%      2.37%
             Average Lipper large-cap growth
               fund(2)                                       0.93     1.10    -9.49      -0.20




1. "S&P 500(R)" is a trademark of The McGraw-Hill Companies, Inc. The S&P 500(R) is an unmanaged index
and is widely regarded as the standard for measuring large-cap U.S. stock-market performance. Results assume
reinvestment of all income and capital gains. The S&P 500(R) Index is considered to be the Fund's broad-based
securities-market index for comparison purposes. An investment cannot be made directly into an index.
2. Lipper Inc. is an independent fund performance monitor. Results are based on total returns with all dividend
and capital-gain distributions reinvested.

THE DISCLOSURE AND FOOTNOTES ON THE PREVIOUS PAGE ARE AN INTEGRAL PART
OF THE TABLES AND GRAPHS AND SHOULD BE CAREFULLY READ IN CONJUNCTION
WITH THEM.

                                          www.mainstayfunds.com 5
COST IN DOLLARS OF A $1,000 INVESTMENT IN MAINSTAY BLUE CHIP GROWTH FUND

The example below is intended to describe the fees and expenses borne by shareholders during the reporting
period and the impact of those costs on your investment.

EXAMPLE

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, if
applicable, exchange fees, and sales charges (loads) on purchase payments, and (2) ongoing costs, including
management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to
help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the
ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 made at the
beginning of the period and held for the entire period from November 1, 2004, to April 30, 2005.

This example illustrates your Fund's ongoing costs in two ways:

- ACTUAL EXPENSES The second and third data columns in the table below provide information about actual
account values and actual expenses. You may use the information in these columns, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this
period.

- HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The fourth and fifth data columns in the
table below provide information about hypothetical account values and hypothetical expenses based on the
Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending
account balance or expenses you paid for the period. You may use this information to compare the ongoing costs
of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect
any transactional costs, such as redemption fees, if applicable, exchange fees, or sales charges (loads). Therefore,
the fourth and fifth data columns of the table are useful in comparing ongoing costs only, and will not help you
determine the relative total costs of owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.

                                                                  ENDING ACCOUNT                                ENDING ACCOUN
                                                                   VALUE (BASED                                VALUE (BASED O
                                              BEGINNING             ON ACTUAL              EXPENSES              HYPOTHETICAL
                                               ACCOUNT             RETURNS AND               PAID               5% RETURN AND
                                                VALUE               EXPENSES)               DURING             ACTUAL EXPENSE
SHARE CLASS                                    11/1/04               4/30/05               PERIOD(1)               4/30/05

CLASS A                               $1,000.00         $1,024.00           $ 7.83            $1,017.20
---------------------------------------------------------------------------------------------------------

CLASS B                               $1,000.00         $1,019.55           $11.57            $1,013.45
---------------------------------------------------------------------------------------------------------

CLASS C                               $1,000.00         $1,019.55           $11.57            $1,013.45
---------------------------------------------------------------------------------------------------------




1. Expenses are equal to the Fund's annualized expense ratio of each class (1.56% for Class A and 2.31% for
Class B and Class C) multiplied by the average account value over the period, divided by 365, multiplied by 181
(to reflect the one-half year period).

6 MainStay Blue Chip Growth Fund
PORTFOLIO COMPOSITION AS OF APRIL 30, 2005

(PORTFOLIO COMPOSITION PIE CHART)

                                                                                                                 L
COMMON STOCKS                                             SHORT-TERM INVESTMENTS                   WARRANTS
-------------                                             ----------------------                   --------      -
98.5                                                               1.60                              0.00*




* Less than one tenth of a percent. See Portfolio of Investments on page 11 for specific holdings within these
categories.

TOP TEN HOLDINGS AS OF APRIL 30, 2005 (EXCLUDING SHORT-TERM INVESTMENTS)

                                        1.   Microsoft Corp.
                                        2.   Citigroup, Inc.
                                        3.   United Technologies Corp.
                                        4.   Procter & Gamble Co. (The)
                                        5.   PepsiCo, Inc.
                                        6.   Amgen, Inc.
                                        7.   Medtronic, Inc.
                                        8.   Walgreen Co.
                                        9.   3M Co.
                                       10.   Time Warner, Inc.




www.mainstayfunds.com 7
PORTFOLIO MANAGEMENT DISCUSSION AND ANALYSIS

Questions answered by portfolio manager Howard F. Ward of Gabelli Asset Management Company

CAN YOU DESCRIBE THE FUND'S INVESTMENT STRATEGY?

The Fund normally invests at least 80% of its total assets in common stocks and other securities issued by U.S.
blue chip companies. We define blue chip firms as those possessing leading market characteristics and certain
financial characteristics. These companies generally have market capitalizations of at least $2 billion and revenues
greater than $500 million. In implementing this strategy, we look for companies that we believe have superior
earnings- per-share growth prospects and above-average or expanding market shares, profit margins, and
returns on equity.

WHAT MAJOR FACTORS INFLUENCED THE STOCK MARKET DURING THE SIX MONTHS
ENDED APRIL
30, 2005?

Stock prices moved higher during the fourth quarter of 2004, as declining oil prices, election results that investors
seemed to favor, and a flurry of merger announcements combined to bolster investor confidence. The economy
held firm during the fourth quarter, with gross-domestic-product growth coming in at 3.8%. During the first
quarter of 2005, oil prices resumed their upward climb, which made it difficult for the stock market to gain
traction, despite relatively strong economic fundamentals. Concerns also intensified about inflation, the challenges
facing U.S. automakers, and investigations at several leading financial institutions.

Interest rates became more of a factor in March 2005, when the Federal Reserve made its seventh move in less
than a year to raise short-term rates. The 25 basis point move brought the targeted fed funds rate to 2.75%,
compared to 1.00% in June of 2004. At the same time, Chairman Greenspan expressed his surprise at how
longer-term rates had remained low in the face of numerous Federal Reserve tightening moves. He also
expressed concern over potential inflationary pressures, leading some to think the Federal Reserve might
accelerate the pace of tightening moves.

WHICH STOCKS WERE AMONG THE FUND'S STRONG PERFORMERS FOR THE
REPORTING PERIOD?

Of issues held for the entire six-month period, the five best performers were Genentech (+56%),(1) Affymetrix
(+51%), Express Scripts (+40%), Alcon (+36%), and Caremark Rx (+33%). Shares of biotechnology company
Genentech surged nearly 60% between March 14 and April 30, 2005. The stock was buoyed by two studies.
One showed prolonged survival in lung-cancer patients taking the company's colon-cancer drug, Avistin. The
other study showed that Avistin slowed the progression of breast cancer.

Shares of Affymetrix, a DNA-chip-technology company, rose on better-than-expected results in each of the
three quarters announced during the reporting period. The company is experiencing strong demand for its
disposable DNA probes from pharmaceutical, biotech, and consumer-products companies eager to participate in
the genomic revolution.

Shares of pharmacy and benefits managers Caremark Rx and Express Scripts advanced in early November
2004. Investors believed that Bush would be less committed than Kerry to expanding production of generic
compounds and to allowing cheaper drug imports. Shares of both companies have continued to rise, and both
companies have surpassed their September and December 2004 quarterly earnings expectations.

Shares of eye-care products maker Alcon rose steadily during the reporting period because of strong sales and
earnings growth. The company benefited from solid international sales, a weakening U.S. dollar, and sales of new
products that offered competitive advantages.

WHICH STOCKS DETRACTED FROM THE FUND'S PERFORMANCE?

The five worst-performing stocks were eBay (-36%), Newmont Mining (-20%), Harley-Davidson (-18%),
Biomet (-17%), and QUALCOMM (-16%). EBay, the world's largest Internet marketplace, dropped in
December 2004, when the company provided disappointing guidance while announcing its quarterly results. We
still believe in the company's longer-term growth prospects, but felt it made sense to take some profits and
reduce the Fund's position. We based our sale on the premise that eBay's explosive earnings growth may be
slowing to a more- sustainable long-term rate.

Newmont Mining, which explores and develops gold properties, declined when higher energy costs raised mining
expenses and led to disappointing quarterly results. Recent strength in the U.S. dollar caused a decline in the
price of gold, which prompted us to begin reducing the Fund's position.

Shares of Harley-Davidson, the largest U.S. motorcycle manufacturer and retailer, dropped after the company
lowered its 2005 profit forecast. Motorcycle

1. Percentages reflect total returns of Fund holdings in the securities mentioned, including purchases and sales, for
the six months ended April 30, 2005, or for the portion of the reporting period such securities were held in the
Fund, if shorter.

8 MainStay Blue Chip Growth Fund
sales were hurt in the first quarter of 2005 by rain, snow, and cold weather.

Shares of Biomet, the world's fourth-largest maker of artificial hips and knees, dropped after the company missed
revenue expectations for its November 2004 fiscal quarter. The shares fell further in March 2005 on news that
the company and several of its competitors had received subpoenas from the Department of Justice, which was
investigating contracts with surgeons.

Shares of wireless innovator and semiconductor company QUALCOMM dropped during the reporting period
on disappointing earnings guidance that came from rising research-and-developments costs and a slowdown in
semiconductor sales.

WERE THERE ANY SIGNIFICANT PURCHASES DURING THE REPORTING PERIOD?

In November 2004, we established a position in Altera, a leading maker of programmable logic devices. In the
same month, we added Transocean, the largest owner of deepwater drilling rigs in the world, and Devon Energy,
an oil and gas exploration and production company focused on North America. New holdings in 2005 included
industrials stocks Rockwell Automation, ITT Industries, and Ingersoll-Rand. In the materials sector we added
Freeport-McMoran, Commercial Metals, Allegheny Technologies, and AK Steel. Our goal was to increase the
Fund's exposure to the rebound in global capital spending, the upturn in the commercial aircraft cycle, and rising
demand for capital goods and materials from emerging economies. For stock-specific reasons, Procter &
Gamble, Caremark Rx, Genentech, Pepsi-Co, and 3M were added to the Fund's portfolio during the reporting
period.

WHAT POSITIONS DID THE FUND SELL OR REDUCE DURING THE REPORTING PERIOD?

During the fourth quarter of 2004, we sold the Fund's positions in Novellus, Cintas, UBS, and Rare Hospitality--
all at a profit. We eliminated the Fund's holdings in Coca-Cola and Fifth Third Bank at modest losses after
earnings expectations were lowered for 2004 and 2005. In late December 2004, we eliminated Nextel from the
Fund's portfolio after news of a merger with Sprint was announced, leaving the stock fully priced and vulnerable
to any subsequent bid for Sprint.

During the first quarter of 2005, we eliminated 10 Fund holdings outright, for reasons ranging from valuation
(Schwab), to scandal (AIG), to merger issues (Symantec, VERITAS, Guidant, Sprint), to less-certain growth
prospects (Viacom, DIRECTV, and Taiwan Semiconductor). Holdings that were materially reduced included
Starbucks, Electronic Arts, L-3 Communications Holdings, and QUALCOMM. These stocks have been
exceptional performers for the Fund in recent years and we captured some profits for reinvestment elsewhere.
We also pared the Fund's position in Time Warner, although it remains a significant holding for the Fund.

HOW DID THE FUND'S SECTOR WEIGHTINGS AFFECT PERFORMANCE?

The Fund was helped by its overweighted position in the health care sector and, in particular, the health care
equipment & services industry. The health care sector advanced during the reporting period, because of strong
absolute and relative earnings growth, especially in the face of slowing economic growth. We continue to favor
the industry's superior relative growth prospects, which have been buoyed by the ever-growing health care needs
of an aging population by advances in medical technology. The Fund was also helped by its underweighted
position in the financials sector. Financial stocks in general suffered during the reporting period in light of rising
interest rates, a deteriorating earnings outlook, and investigations at several leading financial institutions.

On the other hand, the Fund's overweighted position in the consumer discretionary sector, specifically the retailing
industry, detracted from results. As the price of oil rose to new highs during the first quarter of 2005, retail stocks
weakened on the assumption that more expensive gasoline and higher energy bills would hurt consumers'
purchasing power. To a lesser degree, a modest overweighting in the information technology sector hurt the
Fund's results. Economically sensitive information technology stocks saw weakness during the first quarter of
2005 as it became clearer that higher energy prices and rising interest rates might slow economic growth.

WHAT DO YOU ANTICIPATE IN THE COMING MONTHS?

The economy continues to expand at a healthy 3% to 4% rate of growth. This growth, combined with rising
commodity prices, has kept the Federal Reserve active in raising the targeted federal funds rate. At the end of
April, we had to assume that the Federal Reserve might keep pushing rates higher until they hit at least 3.5%. If
this scenario played out, it would be hard to believe that economic growth wouldn't slow. At this time, we expect
real gross domestic product to fall to roughly 3% in the second half of 2005, compared to 4.4% in 2004.

Overall, we would characterize the stock market's outlook as murky. Growth rates have declined and

www.mainstayfunds.com 9
the corporate earnings outlook has deteriorated because of rising energy costs and higher interest rates. Slowing
money-supply growth and lower tax refunds this year will also act as a drag, and the trade deficit remains high.
The global economy seems destined to slow, further jeopardizing earnings. Stock valuations are not inexpensive
enough to make us an aggressive buyer of stocks. Over the next few months, we will develop a greater sense of
what 2006 holds in the way of corporate earnings. That outlook will be an important clue to stock returns over
the balance of the Fund's fiscal year.

The opinions expressed are those of the portfolio manager as of the date of this report and are subject to change.
There is no guarantee that any forecasts made will come to pass. This material does not constitute investment
advice and is not intended as an endorsement of any specific investment.

10 MainStay Blue Chip Growth Fund
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED

                                                               SHARES          VALUE
       COMMON STOCKS (98.5%)+
       -----------------------------------------------------------------------------
       AEROSPACE & DEFENSE (4.6%)
       General Dynamics Corp.                                  20,700   $ 2,174,535
       L-3 Communications Holdings, Inc.                       40,000      2,838,800
       V United Technologies Corp.                             55,000      5,594,600
                                                                        ------------
                                                                          10,607,935
                                                                        ------------
       AIR FREIGHT & LOGISTICS (1.8%)
       C.H. Robinson Worldwide, Inc.                           30,000      1,548,000
       Expeditors International of Washington, Inc.            25,000      1,227,750
       United Parcel Service, Inc. Class B                     20,000      1,426,200
                                                                        ------------
                                                                           4,201,950
                                                                        ------------
       AUTOMOBILES (0.8%)
       Harley-Davidson, Inc.                                   40,000      1,880,800
                                                                        ------------

       BEVERAGES (2.3%)
       V PepsiCo, Inc.                                        95,000      5,285,800
                                                                       ------------
       BIOTECHNOLOGY (5.6%)
       Affymetrix, Inc. (a)                                   30,000      1,383,300
       V Amgen, Inc. (a)                                      90,800      5,285,468
       Cephalon, Inc. (a)                                      5,000        219,500
       Genentech, Inc. (a)                                    45,000      3,192,300
       Genzyme Corp. (a)                                      30,000      1,758,300
       Invitrogen Corp. (a)                                   15,000      1,099,050
                                                                       ------------
                                                                         12,937,918
                                                                       ------------
       CAPITAL MARKETS (5.2%)
       Goldman Sachs Group, Inc. (The)                        23,800      2,541,602
       Merrill Lynch & Co., Inc.                              61,700      3,327,481
       Northern Trust Corp.                                   54,900      2,472,147
       State Street Corp.                                     78,400      3,624,432
                                                                       ------------
                                                                         11,965,662
                                                                       ------------
       COMMUNICATIONS EQUIPMENT (1.5%)
       Cisco Systems, Inc. (a)                               124,400      2,149,632
       QUALCOMM, Inc.                                         37,800      1,318,842
                                                                       ------------
                                                                          3,468,474
                                                                       ------------
       COMPUTERS & PERIPHERALS (2.1%)
       Dell, Inc. (a)                                        114,800      3,998,484
       EMC Corp. (a)                                          66,800        876,416
                                                                       ------------
                                                                          4,874,900
                                                                       ------------
       CONSTRUCTION & ENGINEERING (0.9%)
       Fluor Corp.                                            40,000      2,062,400
                                                                       ------------

       CONSUMER FINANCE (1.0%)
       American Express Co.                                   45,000      2,371,500
                                                                       ------------



                                                              SHARES          VALUE
       DIVERSIFIED FINANCIAL SERVICES (2.5%)
       V Citigroup, Inc.                                     120,000   $ 5,635,200
                                                                       ------------

       ELECTRICAL EQUIPMENT (0.6%)
       Rockwell Automation, Inc.                              30,000      1,386,900
                                                                                           ------------

            ENERGY EQUIPMENT & SERVICES (2.2%)
            Baker Hughes, Inc.                                                  25,000        1,103,000
            Schlumberger Ltd.                                                   35,000        2,394,350
            Transocean, Inc. (a)                                                35,000        1,622,950
                                                                                           ------------
                                                                                              5,120,300
                                                                                           ------------
            FOOD & STAPLES RETAILING (7.8%)
            Costco Wholesale Corp.                                              35,000        1,420,300
            Sysco Corp.                                                         90,000        3,114,000
            V Walgreen Co.                                                     120,000        5,167,200
            Wal-Mart Stores, Inc.                                               90,000        4,242,600
            Whole Foods Market, Inc.                                            40,000        3,988,800
                                                                                           ------------
                                                                                             17,932,900
                                                                                           ------------
            HEALTH CARE EQUIPMENT & SUPPLIES (9.0%)
            Alcon, Inc.                                                         25,000        2,425,000
            Biomet, Inc.                                                        30,000        1,160,700
            Edwards Lifesciences Corp. (a)                                      50,000        2,202,000
            Fisher Scientific International, Inc. (a)                           20,000        1,187,600
            IDEXX Laboratories, Inc. (a)                                        10,000          567,400
            V Medtronic, Inc.                                                  100,000        5,270,000
            St. Jude Medical, Inc. (a)                                          60,000        2,341,800
            Stryker Corp.                                                       40,000        1,942,000
            Zimmer Holdings, Inc. (a)                                           45,000        3,663,900
                                                                                           ------------
                                                                                             20,760,400
                                                                                           ------------
            HEALTH CARE PROVIDERS & SERVICES (2.7%)
            Caremark Rx, Inc. (a)                                               60,000        2,403,000
            Express Scripts, Inc. (a)                                           10,000          896,400
            UnitedHealth Group, Inc. (a)                                        30,000        2,835,300
                                                                                           ------------
                                                                                              6,134,700
                                                                                           ------------
            HOTELS, RESTAURANTS & LEISURE (1.1%)
            Cheesecake Factory, Inc. (The)                                      45,000        1,381,050
            Starbucks Corp. (a)                                                 25,000        1,238,000
                                                                                           ------------
                                                                                              2,619,050
                                                                                           ------------
            HOUSEHOLD DURABLES (0.5%)
            Harman International
              Industries, Inc.                                                  15,000        1,178,700
                                                                                           ------------

            HOUSEHOLD PRODUCTS (2.4%)
            V Procter & Gamble Co. (The)                                       100,000        5,415,000
                                                                                           ------------




+ Percentages indicated are based on Fund net assets. V Among the Fund's 10 largest holdings, excluding short-
term investments. May be subject to change daily.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 11
PORTFOLIO OF INVESTMENTS APRIL 30, 2005 UNAUDITED (CONTINUED)

                                                               SHARES          VALUE
       COMMON STOCKS (CONTINUED)
       -----------------------------------------------------------------------------
       INDUSTRIAL CONGLOMERATES (2.5%)
       V 3M Co.                                                65,000   $ 4,970,550
       General Electric Co.                                    20,000        724,000
                                                                        ------------
                                                                           5,694,550
                                                                        ------------
       INTERNET & CATALOG RETAIL (0.1%)
       eBay, Inc. (a)                                          10,000        317,300
                                                                        ------------

       INTERNET SOFTWARE & SERVICES (1.0%)
       Google, Inc. (a)                                        5,000      1,100,000
       Yahoo!, Inc. (a)                                       35,000      1,207,850
                                                                       ------------
                                                                          2,307,850
                                                                       ------------
       IT SERVICES (0.9%)
       CheckFree Corp. (a)                                    55,000      2,017,400
                                                                       ------------
       MACHINERY (4.6%)
       Caterpillar, Inc.                                      30,000      2,641,500
       Deere & Co.                                            25,000      1,563,500
       Ingersoll-Rand Co. Ltd. Class A                        35,000      2,690,450
       ITT Industries, Inc.                                   40,000      3,618,400
                                                                       ------------
                                                                         10,513,850
                                                                       ------------
       MEDIA (3.8%)
       McGraw-Hill Cos., Inc. (The)                           29,400      2,560,152
       News Corp. Ltd. (The) Class B                         100,000      1,592,000
       V Time Warner, Inc. (a)                               270,900      4,553,829
                                                                       ------------
                                                                          8,705,981
                                                                       ------------
       METALS & MINING (3.0%)
       AK Steel Holding Corp. (a)                             65,000        471,250
       Alcoa, Inc.                                            25,000        725,500
       Allegheny Technologies, Inc.                           30,000        672,000
       Commercial Metals Co.                                  40,000      1,020,400
       Freeport-McMoRan Copper & Gold, Inc. Class B           40,000      1,386,400
       Newmont Mining Corp.                                   70,000      2,657,900
                                                                       ------------
                                                                          6,933,450
                                                                       ------------
       MULTILINE RETAIL (1.0%)
       Target Corp.                                           50,000      2,320,500
                                                                       ------------

       OIL & GAS (6.4%)
       Anadarko Petroleum Corp.                               30,000      2,191,200
       Apache Corp.                                           41,000      2,307,890
       BP PLC ADR (b)                                         10,000        609,000
       Burlington Resources, Inc.                             45,000      2,187,450
       Devon Energy Corp.                                     30,000      1,355,100
       Murphy Oil Corp.                                       27,000      2,405,430
       Occidental Petroleum Corp.                             35,000      2,415,000
       Suncor Energy, Inc.                                    30,000      1,105,800
                                                                       ------------
                                                                         14,576,870
                                                                       ------------



                                                              SHARES          VALUE
       PHARMACEUTICALS (4.4%)
       Johnson & Johnson                                      63,200   $   4,337,416
       Lilly (Eli) & Co.                                      39,100       2,286,177
       Pfizer, Inc.                                          131,950       3,585,081
                                                                                      ------------
                                                                                        10,208,674
                                                                                      ------------
           SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (6.5%)
           Altera Corp. (a)                                                60,000        1,243,800
           Analog Devices, Inc.                                            34,500        1,176,795
           Applied Materials, Inc. (a)                                     75,000        1,115,250
           Broadcom Corp. Class A (a)                                       5,000          149,550
           Intel Corp.                                                    139,300        3,276,336
           KLA-Tencor Corp. (a)                                            30,000        1,170,600
           Linear Technology Corp.                                         95,000        3,395,300
           Microchip Technology, Inc.                                      50,000        1,424,000
           Texas Instruments, Inc.                                         36,400          908,544
           Xilinx, Inc. (a)                                                40,000        1,077,600
                                                                                      ------------
                                                                                        14,937,775
                                                                                      ------------
           SOFTWARE (3.9%)
           Adobe Systems, Inc.                                             20,000        1,189,400
           Citrix Systems, Inc. (a)                                         5,000          112,500
           Electronic Arts, Inc. (a)                                       35,000        1,868,650
           V Microsoft Corp.                                              230,200        5,824,060
                                                                                      ------------
                                                                                         8,994,610
                                                                                      ------------
           SPECIALTY RETAIL (3.9%)
           Bed Bath & Beyond, Inc. (a)                                     70,000        2,604,700
           Best Buy Co., Inc.                                              25,000        1,258,500
           Home Depot, Inc. (The)                                          63,450        2,244,227
           Tiffany & Co.                                                   90,300        2,722,545
                                                                                      ------------
                                                                                         8,829,972
                                                                                      ------------
           TEXTILES, APPAREL & LUXURY GOODS (1.2%)
           Coach, Inc. (a)                                                100,000        2,680,000
                                                                                      ------------

           WIRELESS TELECOMMUNICATION SERVICES (0.7%)
           Vodafone Group PLC ADR (b)                                      59,700        1,560,558
                                                                                      ------------
           Total Common Stocks
             (Cost $212,012,265)                                                       226,439,829
                                                                                      ------------

           WARRANTS (0.0%) (C)
           -----------------------------------------------------------------------------
           COMMUNICATIONS EQUIPMENT (0.0%) (C)
           Lucent Technologies, Inc.
             Strike Price $2.75
             Expire 12/10/07                                       16,335          7,841
                                                                            ------------
           Total Warrants
             (Cost $0)                                                             7,841
                                                                            ------------




+ Percentages indicated are based on Fund net assets. V Among the Fund's 10 largest holdings, excluding short-
term investments. May be subject to change daily.

12 MainStay Blue Chip Growth Fund The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
                                                                           PRINCIPAL
                                                                                  VALUE
                                                                              AMOUNT
          SHORT-TERM INVESTMENT (1.6%)
          -----------------------------------------------------------------------------
          REPURCHASE AGREEMENT (1.6%)
          State Street Bank and Trust Co.
            2.76%, dated 4/29/05, due 5/2/05
            Proceeds at maturity $3,544,815
            (Collateralized by $3,650,000 U.S. Treasury
            Note, 3.50%, due 2/15/10, market value including
            accrued interest $3,618,063)                      $3,544,000   $ 3,544,000
                                                                           ------------
          Total Short-Term Investment
            (Cost $3,544,000)                                                 3,544,000
                                                                           ------------
          Total Investments
            (Cost $215,556,265) (d)                                100.1%   229,991,670(e)
          Liabilities in Excess of
            Cash and Other Assets                                   (0.1)      (179,342)
                                                              ----------   ------------
          Net Assets                                               100.0% $229,812,328
                                                              ==========   ============



                       (a)   Non-income producing security.
                       (b)   ADR -- American Depositary Receipt.
                       (c)   Less than one tenth of a percent.
                       (d)   The cost for federal income tax purposes is
                             $216,849,268.
                       (e)   At April 30, 2005 net unrealized appreciation was
                             $13,142,401 based on cost for federal income tax
                             purposes. This consisted of aggregate gross unrealized
                             appreciation for all investments on which there was an
                             excess of market value over cost of $27,738,356 and
                             aggregate gross unrealized depreciation for all
                             investments on which there was an excess of cost over
                             market value of $14,595,955.




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 13
STATEMENT OF ASSETS AND LIABILITIES AS OF APRIL 30, 2005 UNAUDITED

              ASSETS:
              Investment in securities, at value
                (identified cost $215,556,265)               $ 229,991,670
              Cash                                                 155,151
              Receivables:
                Investment securities sold                       1,366,634
                Dividends and interest                             154,513
                Fund shares sold                                    79,759
              Other assets                                          36,348
                                                             -------------
                 Total assets                                  231,784,075
                                                             -------------

              LIABILITIES:
              Payables:
                Investments securities purchased                   724,607
                Transfer agent                                     527,026
                Fund shares redeemed                               371,223
                NYLIFE Distributors                                159,971
                Manager                                             83,714
                Custodian                                            5,261
                Trustees                                             2,204
              Accrued expenses                                      97,741
                                                             -------------
                 Total liabilities                               1,971,747
                                                             -------------
              Net assets                                     $ 229,812,328
                                                             =============

              COMPOSITION OF NET ASSETS:
              Shares of beneficial interest outstanding
                (par value of $.01 per share) unlimited
                number of shares authorized:
                Class A                                      $      62,748
                Class B                                            182,417
                Class C                                              7,603
              Additional paid-in capital                       398,360,219
              Accumulated net investment loss                     (696,355)
              Accumulated net realized loss on investments    (182,539,709)
              Net unrealized appreciation on investments        14,435,405
                                                             -------------
              Net assets                                     $ 229,812,328
                                                             =============
              CLASS A
              Net assets applicable to outstanding shares    $ 59,303,282
                                                             =============
              Shares of beneficial interest outstanding          6,274,764
                                                             =============
              Net asset value per share outstanding          $        9.45
              Maximum sales charge (5.50% of offering
                price)                                                0.55
                                                             -------------
              Maximum offering price per share outstanding   $       10.00
                                                             =============
              CLASS B
              Net assets applicable to outstanding shares    $ 163,687,089
                                                             =============
              Shares of beneficial interest outstanding         18,241,722
                                                             =============
              Net asset value and offering price per share
                outstanding                                  $        8.97
                                                             =============
              CLASS C
              Net assets applicable to outstanding shares    $   6,821,957
                                                             =============
              Shares of beneficial interest outstanding            760,285
                                                             =============
              Net asset value and offering price per share
                outstanding                                  $        8.97
                                                             =============
14 MainStay Blue Chip Growth Fund The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2005 UNAUDITED

                      INVESTMENT INCOME:
                      INCOME:
                        Dividends (a)                                              $1,874,715
                        Interest                                                       63,535
                                                                                   ----------
                           Total income                                             1,938,250
                                                                                   ----------
                      EXPENSES:
                        Manager                                                     1,244,623
                        Transfer agent                                                790,409
                        Distribution -- Class B                                       668,869
                        Distribution -- Class C                                        29,172
                        Service -- Class A                                             78,522
                        Service -- Class B                                            222,910
                        Service -- Class C                                              9,724
                        Shareholder communication                                      55,034
                        Professional                                                   32,742
                        Recordkeeping                                                  25,670
                        Registration                                                   23,280
                        Custodian                                                      17,332
                        Trustees                                                        8,142
                        Miscellaneous                                                  13,839
                                                                                   ----------
                          Total expenses before waiver/reimbursement                3,220,268
                        Fees waived/reimbursed by Manager                            (585,663)
                                                                                   ----------
                           Net expenses                                             2,634,605
                                                                                   ----------
                      Net investment loss                                            (696,355)
                                                                                   ----------
                      REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
                      Net realized gain on investments                              3,250,651
                      Net change in unrealized appreciation on
                        investments                                                 3,521,106
                                                                                   ----------
                      Net realized and unrealized gain on investments               6,771,757
                                                                                   ----------
                      Net increase in net assets resulting from
                        operations                                                 $6,075,402
                                                                                   ==========




(a) Dividends recorded net of foreign withholding taxes in the amount of $625.

The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 15
STATEMENT OF CHANGES IN NET ASSETS

FOR THE SIX MONTHS ENDED APRIL 30, 2005 UNAUDITED AND THE YEAR ENDED
OCTOBER 31,
2004

                                                                      2005             2004
                  DECREASE IN NET ASSETS:
                  Operations:
                   Net investment loss                      $    (696,355)    $ (4,577,338)
                   Net realized gain (loss) on
                    investments                                 3,250,651       (5,306,747)
                   Net change in unrealized
                    appreciation on investments                3,521,106     15,196,612
                                                            ---------------------------
                   Net increase in net assets
                    resulting from operations                  6,075,402      5,312,527
                                                            ---------------------------

                  Capital share transactions:
                   Net proceeds from sale of shares:
                     Class A                                   7,101,669     14,781,368
                     Class B                                   9,929,066     23,856,843
                     Class C                                     618,107      1,659,272
                                                            ---------------------------
                                                              17,648,842     40,297,483
                   Cost of   shares redeemed:
                     Class   A                               (11,773,265)   (20,011,759)
                     Class   B                               (31,292,572)   (39,892,146)
                     Class   C                                (2,119,618)    (4,043,241)
                                                            ---------------------------
                                                             (45,185,455)   (63,947,146)
                                                            ---------------------------
                       Decrease in net assets derived
                        from capital share
                        transactions                         (27,536,613)   (23,649,663)
                                                            ---------------------------
                       Net decrease in net assets            (21,461,211)   (18,337,136)

                  NET ASSETS:
                  Beginning of period                        251,273,539    269,610,675
                                                            ---------------------------
                  End of period                             $229,812,328   $251,273,539
                                                            ===========================
                  Undistributed net investment loss
                    at end of period                        $   (696,355) $          --
                                                            ===========================




16 MainStay Blue Chip Growth Fund The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
This page intentionally left blank

www.mainstayfunds.com 17
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS

                                                            JANUARY 1,
                               SIX MONTHS                      2003                             CLA
                                ENDED ON      YEAR ENDED      THROUGH       -----------------------
                               APRIL 30,      OCTOBER 31,   OCTOBER 31,                 YEAR ENDED
                                 2005*           2004         2003**         2002         2001
Net asset value at beginning
  of period                    $ 9.23          $ 9.00        $ 7.27         $ 11.00      $ 14.43
                               -------         -------       -------        -------      -------
Net investment loss (a)          (0.00)(d)       (0.11)        (0.08)         (0.11)       (0.13)
Net realized and unrealized
  gain (loss) on investments      0.22            0.34          1.81          (3.62)       (3.30)
                               -------         -------       -------        -------      -------
Total from investment
  operations                      0.22            0.23          1.73          (3.73)       (3.43)
                               -------         -------       -------        -------      -------
Less distributions to
  shareholders:
  From net realized gain on
    investments                      --              --            --            --           --
  In excess of net realized
    gain on investments             --              --            --             --           --
                               -------         -------       -------        -------      -------
Total distributions to
  shareholders:                     --              --            --             --           --
                               -------         -------       -------        -------      -------
Net asset value at end of
  period                        $ 9.45          $ 9.23        $ 9.00        $ 7.27       $ 11.00
                                =======         =======       =======       =======      =======
Total investment return            2.38%(b)        2.56%        23.80%(c)     33.91%      (23.77%)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment income         (0.00%)+        (1.13%)       (1.28%)+      (1.29%)      (1.10%)
    Net expenses                   1.56%+          1.96%         2.14%+        2.05%        1.81%
    Expenses (before
      waiver/reimbursement)        1.83%+          2.01%         2.14%+        2.05%        1.81%
Portfolio turnover rate              20%             32%           40%           32%          27%
Net assets at end of period
  (in 000's)                    $59,303         $62,335       $65,811       $51,258      $77,548




                                                            JANUARY 1,
                               SIX MONTHS                      2003                           CLASS
                                 ENDED        YEAR ENDED      THROUGH       -----------------------
                               APRIL 30,      OCTOBER 31,   OCTOBER 31,               YEAR ENDED DE
                                 2005*           2004         2003**         2002        2001
Net asset value at beginning
  of period                     $ 8.80         $ 8.64        $ 7.03         $10.71      $ 14.45
                                ------         ------        -------        ------      -------
Net investment loss (a)          (0.03)         (0.17)         (0.13)        (0.19)       (0.21)
Net realized and unrealized
  gain (loss) on investments      0.20           0.33           1.74         (3.49)       (3.25)
                                ------         ------        -------        ------      -------
Total from investment
  operations                      0.17           0.16           1.61         (3.68)       (3.46)
                                ------         ------        -------        ------      -------
Less dividends and
  distributions:
  From net investment income         --             --             --           --           --
  From net realized gain on
    investments                     --             --             --            --           --
                                ------         ------        -------        ------      -------
Total dividends and
  distributions                     --             --             --            --           --
                                ------         ------        -------        ------      -------
Net asset value at end of
  period                         $ 8.97         $ 8.80        $ 8.64        $ 7.03      $ 10.71
                                 ======         ======        =======       ======      =======
Total investment return            1.93%(b)       1.85%         22.90%(c)   (34.36%)     (24.42%)
Ratios (to average net
  assets)/Supplemental Data:
    Net investment loss           (0.75%)+       (1.88%)        (2.03%)+     (2.04%)      (1.85%)
    Expenses                       2.31%+         2.71%          2.89%+       2.80%        2.56%
    Expenses (before
      waiver/reimbursement)        2.58%+         2.76%          2.89%+       2.80%        2.56%
Portfolio turnover rate              20%            32%            40%          32%          27%
Net assets at end of period
  (in 000's)                           $6,822            $8,115              $10,322          $9,498        $17,178




             *     Unaudited.
             **    The Fund changed its fiscal year end from December 31 to October 31.
             +     Annualized.
             (a)   Per share data based on average shares outstanding during the period.
             (b)   Total Return is calculated exclusive of sales charges.
             (c)   Total return is not annualized.
             (d)   Less than one cent per share.




18 MainStay Blue Chip Growth Fund The notes to the financial statements are an integral part of, and should be
read in conjunction with, the financial statements.
FINANCIAL HIGHLIGHTS SELECTED PER SHARE DATA AND RATIOS

                                        JANUARY 1,
SIX MONTHS                                  2003                                   CLASS B
 ENDED ON           YEAR ENDED             THROUGH           --------------------------------------------------
APRIL 30,           OCTOBER 31,         OCTOBER 31,                       YEAR ENDED DECEMBER 31,
   2005*               2004                2003**              2002          2001            2000        1999
 $    8.80           $   8.64            $    7.03           $ 10.71       $ 14.17         $ 16.33     $ 11.60
 --------            --------            --------            --------      --------        --------    --------
     (0.03)             (0.17)               (0.13)             (0.19)        (0.21)          (0.26)      (0.23)
      0.20               0.33                 1.74              (3.49)        (3.25)          (1.46)       4.96
 --------            --------            --------            --------      --------        --------    --------
      0.17               0.16                 1.61              (3.68)        (3.46)          (1.72)       4.73
 --------            --------            --------            --------      --------        --------    --------
         --                 --                   --                 --            --          (0.39)          --
         --                 --                   --                 --            --          (0.05)          --
 --------            --------            --------            --------      --------        --------    --------
         --                 --                   --                 --            --          (0.44)          --
 --------            --------            --------            --------      --------        --------    --------
 $    8.97           $   8.80            $    8.64           $   7.03      $ 10.71         $ 14.17     $ 16.33
 ========            ========            ========            ========      ========        ========    ========
      1.93%(b)           1.85%               22.90%(c)         (34.36%)      (24.42%)        (10.55%)     40.78%
     (0.75%)+           (1.88%)              (2.03%)+           (2.04%)       (1.85%)         (1.62%)     (1.77%)
      2.31%+             2.71%                2.89%+             2.80%         2.56%           2.41%       2.51%
      2.58%+             2.76%                2.89%+             2.80%         2.56%           2.41%       2.51%
         20%                32%                  40%                32%           27%             46%         43%
 $163,687            $180,824            $193,478            $160,249      $268,947        $373,652    $222,904




The notes to the financial statements are an integral part of, and should be read in conjunction with, the financial
statements. www.mainstayfunds.com 19
NOTES TO FINANCIAL STATEMENTS UNAUDITED

NOTE 1 -- ORGANIZATION AND BUSINESS:

The MainStay Funds (the "Trust") was organized on January 9, 1986 as a Massachusetts business trust. The
Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as an open-end
management investment company and is comprised of twenty funds (collectively referred to as the "Funds").
These financial statements and notes relate only to MainStay Blue Chip Growth Fund (the "Fund"), a diversified
fund.

The Fund currently offers three classes of shares. Distribution of Class A shares and Class B shares commenced
on June 1, 1998. Class C shares were initially offered on September 1, 1998. Class A shares are offered at net
asset value per share plus an initial sales charge. No sales charge applies on investments of $1 million or more
(and certain other qualified purchases) in Class A shares, but a contingent deferred sales charge is imposed on
certain redemptions of such shares within one year of the date of purchase. Class B shares and Class C shares
are offered without an initial sales charge, although a declining contingent deferred sales charge may be imposed
on redemptions made within six years of purchase of Class B shares and within one year of purchase of Class C
shares. Class A shares, Class B shares and Class C shares bear the same voting (except for issues that relate
solely to one class), dividend, liquidation and other rights and conditions except that the Class B shares and Class
C shares are subject to higher distribution fee rates. Each class of shares bears distribution and/or service fee
payments under a distribution plan pursuant to Rule 12b-1 under the 1940 Act.

The Fund's investment objective is to seek capital appreciation by investing primarily in securities of large-
capitalization companies. Current income is a secondary investment objective.

NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES:

The Fund prepares its financial statements in accordance with generally accepted accounting principles and
follows the significant accounting policies described below:

(A) SECURITIES VALUATION. Equity securities are valued at the latest quoted sales prices as of the close of
trading on the New York Stock Exchange (generally 4:00 p.m. Eastern time) on the valuation date; such
securities not traded on the valuation date are valued at the mean of the latest quoted bid and asked prices.
Prices are taken from the primary market in which each security trades. 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 are valued at amortized cost, which approximates market
value. Securities for which market quotations are not readily available are valued by methods deemed by the
Board of Trustees to represent fair value. Reasons for which securities may be valued in this manner include, but
are not limited to, trading for a security has been halted or suspended, a security has been de-listed from a
national exchange, or trading on a security's primary market is temporarily closed at a time when under normal
conditions it would be open. The Fund did not hold securities at April 30, 2005, that were valued in such manner.

(B) REPURCHASE AGREEMENTS. The Fund's custodian takes possession of the collateral pledged for
investments in repurchase agreements. The underlying collateral is valued daily on a mark-to-market basis to
determine that the value, including accrued interest, exceeds the repurchase price. In the event of the seller's
default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. Under certain circumstances, in the event of default or bankruptcy by the other party
to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

(C) FEDERAL INCOME TAXES. The Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its taxable income to the shareholders
of the Fund within the allowable time limits. Therefore, no federal income or excise tax provision is required.

Investment income received by the Fund from foreign sources may be subject to foreign income taxes. These
foreign income taxes are withheld at the source.

(D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions are recorded
on the ex-dividend date. The Fund intends to declare and pay any dividends quarterly and capital gains
distributions, if any, annually. Income dividends and capital gain distributions are determined in accordance with
federal income tax regulations, which may differ from generally accepted accounting principles. These "book/tax
differences" are either considered temporary or permanent in nature. To the extent these differences are
permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis
treatment; temporary differences do not require reclassification.

(E) SECURITY TRANSACTIONS AND INVESTMENT INCOME. The Fund records security transactions
on the trade date. Realized gains and losses on security transactions are determined using the identified cost
method. Dividend income is recognized on the ex-dividend date and interest income is accrued as earned.

Investment income and realized and unrealized gains and losses on investments of the Fund are allocated to
separate

20 MainStay Blue Chip Growth Fund
classes of shares based upon their relative net assets on the date the income is earned or realized and unrealized
gains and losses are incurred.

(F) EXPENSES. Expenses of the Trust are allocated to the individual Funds in proportion to the net assets of the
respective Funds when the expenses are incurred except where direct allocations of expenses can be made.
Expenses (other than expenses incurred under the distribution plans) are allocated to separate classes of shares
based upon their relative net asset value on the date the expenses are incurred. The expenses borne by the Fund,
including those of related parties to the Fund, are shown in the Statement of Operations.

(G) USE OF ESTIMATES. The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual results could differ from those
estimates.

NOTE 3 -- FEES AND RELATED PARTY TRANSACTIONS:

(A) MANAGER AND SUBADVISOR. New York Life Investment Management LLC ("NYLIM" or the
"Manager"), an indirect wholly-owned subsidiary of New York Life Insurance Company ("New York Life"),
serves as the Fund's manager. The Manager provides offices, conducts clerical, record-keeping and
bookkeeping services, and keeps the financial and accounting records required for the Fund. The Manager also
pays the salaries and expenses of all personnel affiliated with the Fund and all the operational expenses that are
not the responsibility of the Fund. Gabelli Asset Management Company (the "Subadvisor") is responsible for the
day-to-day portfolio management of the Fund.

The Trust, on behalf of the Fund, pays the Manager a monthly fee for services performed and the facilities
furnished at an annual percentage of the Fund's average daily net assets as follows: 1.00% up to $500 million and
0.95% in excess of $500 million. In addition, effective August 1, 2004, NYLIM voluntarily agreed to waive its
management fee by 0.20% to 0.80% on assets up to $500 million and 0.75% in excess of $500 million. Effective
December 1, 2005, NYLIM also voluntarily agreed to reimburse the expenses of the Fund so that total annual
fund operating expenses do not exceed on an annualized basis 1.50%, 2.25% and 2.25% of the average daily net
assets of the Class A, Class B and Class C shares, respectively. For the six months ended April 30, 2005, the
Manager earned from the Fund $1,244,623 and waived $585,663 of its fee.

Pursuant to the terms of a Sub-Advisory Agreement between NYLIM and the Subadvisor, the Manager paid the
Subadvisor a monthly fee at an annual rate of 0.50% of the average daily net assets of the Fund.

(B) DISTRIBUTION AND SERVICE FEES. The Trust, on behalf of the Fund, has a Distribution Agreement
with NYLIFE Distributors LLC (the "Distributor"). The Fund, with respect to each class of shares, has adopted
distribution plans (the "Plans") in accordance with the provisions of Rule 12b-1 under the 1940 Act. Pursuant to
the Class A Plan, the Distributor receives a monthly fee from the Fund at an annual rate of 0.25% of the average
daily net assets of the Fund's Class A shares, which is an expense of the Class A shares of the Fund for
distribution or service activities as designated by the Distributor. Pursuant to the Class B and Class C Plans, the
Fund pays the Distributor a monthly fee, which is an expense of the Class B and Class C shares of the Fund, at
the annual rate of 0.75% of the average daily net assets of the Fund's Class B and Class C shares. The
Distribution Plans provide that the Class B and Class C shares of the Fund also incur a service fee at the annual
rate of 0.25% of the average daily net asset value of the Class B or Class C shares of the Fund.

The Plans provide that the distribution and service fees are payable to the Distributor regardless of the amounts
actually expended by the Distributor for distribution of the Fund's shares and service activities.

(C) SALES CHARGES. The Fund was advised by the Distributor that the amount of sales charges retained on
sales of Class A shares was $21,199 for the six months ended April 30, 2005. The Fund was also advised that
the Distributor retained contingent deferred sales charges on redemptions of Class A, Class B and Class C
shares of $3,510, $179,520 and $950, respectively, for the six months ended April 30, 2005.

(D) TRANSFER, DIVIDEND DISBURSING AND SHAREHOLDER SERVICING AGENT. NYLIM
Service Company LLC ("NYLIM Service"), an affiliate of NYLIM, is the Fund's transfer, dividend disbursing
and shareholder servicing agent. NYLIM Service has entered into an agreement with Boston Financial Data
Services ("BFDS") pursuant to which BFDS will perform certain of the services for which NYLIM Service is
responsible. Transfer agent expenses for the six months ended April 30, 2005, amounted to $790,409.

(E) NON-INTERESTED TRUSTEES FEES. Non-Interested Trustees are paid an annual retainer fee of
$45,000, $2,000 for each Board meeting, $1,000 for each Committee meeting and $500 for each Valuation
Subcommittee telephonic meeting attended plus reimbursement for travel and out-of-pocket expenses. The Lead
Non-Interested Trustee is also paid an annual retainer fee of $20,000. The Audit and Compliance Committee
Chairman receives an additional $2,000 for each meeting of the Audit and Compliance Committee attended and
the Chairpersons of the Brokerage and Expense Committee, Operations Committee and Performance
Committee each receive an additional $1,000 for

www.mainstayfunds.com 21
NOTES TO FINANCIAL STATEMENTS UNAUDITED (CONTINUED)

each meeting of the Brokerage and Expense Committee, Operations Committee and Performance Committee
attended, respectively. In addition, each Non-Interested Trustee is paid $1,000 for attending meetings of the
Non-Interested Trustees held in advance of or in connection with Board/Committee meetings. The Trust allocates
trustees fees in proportion to the net assets of the respective Funds. Thus the Blue Chip Growth Fund only pays a
portion of the fees identified above.

(F) OTHER. Fees for the cost of legal services, included in Professional fees as shown on the Statement of
Operations, provided to the Fund by the Office of the General Counsel of NYLIM amounted to $4,423 for the
six months ended April 30, 2005.

The Fund pays the Manager a monthly fee for certain pricing and recordkeeping services provided under the
Accounting Agreement at the annual rate of 1/20 of 1% for the first $20 million of average monthly net assets,
1/30 of 1% of the next $80 million of average monthly net assets and 1/100 of 1% of any amount in excess of
$100 million of average monthly net assets. Fees for these services provided to the Fund by the Manager
amounted to $25,670 for the six months ended April 30, 2005.

NOTE 4 -- CUSTODIAN:
As of April 30, 2005, the Bank of New York was custodian of cash and securities of the Fund. Custodial fees
are charged to the Fund based on the market value of securities in the Fund and the number of certain cash
transactions incurred by the Fund.

NOTE 5 -- FEDERAL INCOME TAX:
At October 31, 2004, for federal income tax purposes, capital loss carryforwards of $184,497,356 were
available as shown in the table below, to the extent provided by the regulations to offset future realized gains
through the years indicated. To the extent that these loss carryforwards are used to offset future capital gains, it is
probable that the capital gains so offset will not be distributed to shareholders.

                                     CAPITAL LOSS              AMOUNT
                                  AVAILABLE THROUGH           (000'S)
                                         2009                 $ 26,377
                                         2010                   99,424
                                         2011                   53,278
                                         2012                    5,418
                                 -------------------------------------------
                                                              $184,497
                                 -------------------------------------------




NOTE 6 -- PURCHASES AND SALES OF SECURITIES (IN 000'S):

During the six months ended April 30, 2005, purchases and sales of securities, other than securities subject to
repurchase transactions and short-term securities, were $47,713 and $76,712, respectively.

NOTE 7 -- LINE OF CREDIT:

The Fund and certain affiliated funds maintain a line of credit of $160,000,000 with a syndicate of banks in order
to secure a source of funds for temporary purposes to meet unanticipated or excessive shareholder redemption
requests. The funds pay a commitment fee, at an annual rate of .075% of the average commitment amount,
regardless of usage, to The Bank of New York, which acts as agent to the syndicate. Such commitment fees are
allocated among the funds based upon net assets and other factors. Interest on any revolving credit loan is
charged based upon the Federal Funds Advances rate. There were no borrowings on the line of credit during the
six months ended April 30, 2005.

NOTE 8 -- CAPITAL SHARE TRANSACTIONS (IN 000'S):

                                                                          SIX MONTHS ENDED
                                                                           APRIL 30, 2005*
                                                                     CLASS A   CLASS B   CLASS C
                Shares sold                                  734     1,079       67
                ---------------------------------------------------------------------
                Shares redeemed                           (1,212)   (3,394)    (230)
                ---------------------------------------------------------------------
                Net decrease                                (478)   (2,315)    (163)
                ---------------------------------------------------------------------



                                                                        YEAR ENDED
                                                                     OCTOBER 31, 2004
                                                                CLASS A   CLASS B   CLASS C

                Shares sold                                1,590     2,680      187
                ---------------------------------------------------------------------
                Shares redeemed                           (2,147)   (4,505)    (458)
                ---------------------------------------------------------------------
                Net decrease                                (557)   (1,825)    (271)
                ---------------------------------------------------------------------




* Unaudited.

NOTE 9 -- OTHER MATTERS:

NYLIM and mutual funds that NYLIM advises have received requests for information from various government
authorities and regulatory bodies regarding market timing, late trading, operations, fees, expenses, and other
matters. NYLIM and the Funds it advises are cooperating fully in responding to these requests. As reported in
response to those requests for information, NYLIM was previously party to agreements with certain registered
representatives of broker-dealers relating to the level of trading by clients or customers of those registered
representatives in shares of certain funds of the Trust. NYLIM and the Trust's Audit and Compliance Committee
are reviewing what effect, if any, transactions under these agreements may have had on the Funds. The Audit and
Compliance Committee will determine what course of action, if any, is appropriate. NYLIM does not believe at
this time that such trading had any material effect on the Funds' financial statements or their

22 MainStay Blue Chip Growth Fund
shareholders. To date, substantially all of the costs associated with these and other regulatory matters have been
borne by NYLIM. Except as described below, neither NYLIM nor the Funds advised by it have any reason to
believe that they have been targeted as the subject of any governmental or regulatory enforcement action.

The SEC Staff has raised concerns relating to a guarantee provided to shareholders of the MainStay Equity Index
Fund and the fees and expenses of that Fund, as well as the related guarantee disclosure to Fund shareholders.
Discussions have been held with the SEC concerning a possible resolution of this matter. There can be no
assurance at this time as to the outcome of these efforts.

www.mainstayfunds.com 23
SPECIAL MEETING OF SHAREHOLDERS

At a special meeting held on June 27, 2005, the shareholders of MainStay Blue Chip Growth Fund (the "Fund")
approved a proposal for an Agreement and Plan of Reorganization providing for (i) the acquisition of the assets
of the Fund by the Large Cap Growth Fund, a series of the Trust, in exchange for shares of the Large Cap
Growth Fund and the assumption of all liabilities of the Fund by the Large Cap Growth Fund; and (ii) the
subsequent liquidation of the Fund.

The reorganization became effective on June 28, 2005.

Shares voted in favor: 12,955,489
Shares voted against: 389,082
Shares abstaining: 704,950

This resulted in approval of the proposal.

24 MainStay Blue Chip Growth Fund
TRUSTEES AND OFFICERS

Following are the Trustees and Officers of The MainStay Funds, along with a brief description of their principal
occupations during the past five years.

Each Trustee serves until (1) such time as less than a majority of the Trustees holding office have been elected by
shareholders, in which case the trustees then in office will call a shareholder meeting for the election of Trustees,
or
(2) his or her resignation, death, or removal. Officers serve a term of one year and are elected annually by the
Trustees.

The business address of each Trustee and Officer is 51 Madison Avenue, New York, New York 10010.

                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES*

          GARY E.                                Chief Executive Officer, Chairman, and
                                Chairman since 2002,                                                57
          WENDLANDT             Chief Executive  Manager, New York Life Investment
          10/8/50                                Management LLC (including predecessor
                                Officer since 2004,
                                and Trustee sinceadvisory organizations) and New York
                                2000             Life Investment Management Holdings LLC;
                                                 Executive Vice President, New York Life
                                                 Insurance Company; Executive Vice
                                                 President and Manager, NYLIFE LLC;
                                                 Chairman, McMorgan & Company LLC,
                                                 Madison Capital Funding LLC, and NYLCAP
                                                 Manager LLC; Manager, MacKay Shields
                                                 LLC; Executive Vice President, New York
                                                 Life Insurance and Annuity Corporation;
                                                 Chairman, Chief Executive Officer, and
                                                 Director, MainStay VP Series Fund, Inc.
                                                 (21 portfolios); Chief Executive
                                                 Officer, Eclipse Funds (3 Portfolios)
                                                 and Eclipse Funds Inc. (13 Portfolios)
                                                 (since June 2005); Executive Vice
                                                 President and Chief Investment Officer,
                                                 MassMutual Life Insurance Company (1993
                                                 to 1999).
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

          CHARLYNN GOINS        Trustee since 2001 Retired. Consultant to U.S. Commerce               20
          9/15/42                                  Department, Washington, DC (1998 to
                                                   2000).
          -------------------------------------------------------------------------------------------------
          EDWARD J. HOGAN   Trustee since 1996     Rear Admiral U.S. Navy (Retired);                  20
          8/17/32                                  Independent Management Consultant (1997
                                                   to 2002).
          -------------------------------------------------------------------------------------------------
          TERRY L. LIERMAN Trustee since 1991      Community Volunteer; Chairman,                     20
          1/4/48                                   Smartpaper Networks Corporation;
                                                   Partner, Health Ventures LLC (2001 to
                                                   2005); Vice Chair, Employee Health
                                                   Programs (1990 to 2002); Partner,
                                                   TheraCom (1994 to 2001); President,
                                                   Capitol Associates, Inc. (1984 to 2001).
          -------------------------------------------------------------------------------------------------
          JOHN B.           Trustee since 1997     Chairman, Ulster Television Plc; Pro               20
          MCGUCKIAN                                Chancellor, Queen's University (1985 to
          11/13/39                                 2001).
         -------------------------------------------------------------------------------------------------
         DONALD E.         Trustee since 1994     Retired. Vice Chairman, Harbour Group              20
         NICKELSON         and Lead Non-          Industries, Inc. (leveraged buyout
         12/9/32           Interested Trustee     firm).
                           since 2000


         -------------------------------------------------------------------------------------------------




* Certain Trustees are considered to be interested persons of the Trust within the meaning of the 1940 Act
because of their affiliation with New York Life Insurance Company, New York Life Investment Management
LLC, MacKay Shields LLC, McMorgan & Company LLC, Eclipse Funds, Eclipse Funds Inc., MainStay VP
Series Fund, Inc., NYLIFE Securities Inc., and/or NYLIFE Distributors LLC, as described in detail in the
column "Principal Occupation(s) During Past 5 Years." All Trustees not considered to be interested persons of
the Trust are referred to as "Non-Interested Trustees."

www.mainstayfunds.com 25
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY TR
        -------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES

        RICHARD S.        Trustee since 1994     Chairman, Somerset Group (financial                20
        TRUTANIC                                 advisory firm); Managing Director and
        2/13/52                                  Advisor, The Carlyle Group (private
                                                 investment firm) (2001 to 2004); Senior
                                                 Managing Director, Groupe Arnault
                                                 (private investment firm) (1999 to
                                                 2001).
        -------------------------------------------------------------------------------------------------




                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        ROBERT A.         Chief Legal Officer    Senior Managing Director, General                  57
        ANSELMI           since 2003             Counsel and Secretary, New York Life
        10/19/46                                 Investment Management LLC (including
                                                 predecessor advisory organizations);
                                                 General Counsel and Secretary, New York
                                                 Life Investment Management Holdings LLC;
                                                 Senior Vice President, New York Life
                                                 Insurance Company; Vice President and
                                                 Secretary, McMorgan & Company LLC;
                                                 Secretary, NYLIM Service Company LLC,
                                                 NYLCAP Manager LLC, and Madison Capital
                                                 Funding LLC; Chief Legal Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc.; Managing
                                                 Director and Senior Counsel, Lehman
                                                 Brothers Inc. (October 1998 to December
                                                 1999); General Counsel and Managing
                                                 Director, JP Morgan Investment
                                                 Management Inc. (1986 to September
                                                 1998).
        -------------------------------------------------------------------------------------------------
        CHRISTOPHER O.    President since 2005   Executive Vice President, New York Life            36
        BLUNT                                    Investment Management LLC and New York
        5/13/61                                  Life Investment Management Holdings LLC
                                                 (since July 2004); Manager and Executive
                                                 Vice President, NYLIM Product
                                                 Distribution, NYLIFE Distributors LLC
                                                 (since January 2005); Chairman, NYLIM
                                                 Service Company LLC (since March 2005);
                                                 Chairman and Class C Director, New York
                                                 Life Trust Company, FSB (since December
                                                 2004); Chairman, New York Life Trust
                                                 Company (since February 2005);
                                                 President, Eclipse Funds and Eclipse
                                                 Funds Inc. (since June 2005); Chairman
                                                 and Chief Executive Officer, Giving
                                                 Capital, Inc. (2001 to June 2004); Chief
                                                 Marketing Officer--Americas, Merrill
                                                 Lynch Investment Managers, and
                                                 President, Mercury Funds Distributors
                                                 (1999 to 2001).
        -------------------------------------------------------------------------------------------------




26 MainStay Blue Chip Growth Fund
                          POSITION(S) HELD WITH                                            NUMBER OF PORT
        NAME AND          FUND AND LENGTH        PRINCIPAL OCCUPATION(S)                   IN FUND COMPLE
        DATE OF BIRTH     OF SERVICE             DURING PAST 5 YEARS                       OVERSEEN BY OF
        -------------------------------------------------------------------------------------------------
OFFICERS WHO ARE NOT TRUSTEES

        JEFFREY J.         Vice President,       Managing Director of Fund Accounting and           63
        GABOURY            Treasurer, and Chief  Administration, New York Life Investment
        10/23/68           Financial Officer     Management LLC (since December 2004);
                           since 2005            Manager, NYLIM Service Company LLC
                                                 (since March 2005); Executive Vice
                                                 President, New York Life Trust Company
                                                 (since February 2005); Vice President,
                                                 Treasurer, and Chief Financial Officer,
                                                 Eclipse Funds, Eclipse Funds Inc., and
                                                 MainStay VP Series Fund, Inc. (since
                                                 June 2005); Treasurer and Principal
                                                 Financial Officer, McMorgan Funds;
                                                 Director of Fund Administration,
                                                 Investors Bank & Trust Company (1995 to
                                                 2004).
        -------------------------------------------------------------------------------------------------
        SCOTT T.          Vice President--       Director, New York Life Investment                 57
        HARRINGTON        Administration since   Management LLC (including predecessor
        2/8/59            2005                   advisory organizations); Vice
                                                 President--Administration, MainStay VP
                                                 Series Fund, Inc., Eclipse Funds, and
                                                 Eclipse Funds Inc. (since June 2005).
        -------------------------------------------------------------------------------------------------
        ALISON H.         Vice President--       Managing Director and Chief Compliance             57
        MICUCCI           Compliance since 2004 Officer, New York Life Investment
        12/16/65                                 Management LLC (June 2003 to present);
                                                 Chief Compliance Officer, New York Life
                                                 Investment Management Holdings LLC (June
                                                 2003 to present); Managing Director,
                                                 Compliance, NYLIFE Distributors LLC;
                                                 Vice President--Compliance, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Deputy Chief
                                                 Compliance Officer, New York Life
                                                 Investment Management LLC (September
                                                 2002 to June 2003); Vice President and
                                                 Compliance Officer, Goldman Sachs Asset
                                                 Management (November 1999 to August
                                                 2002).
        -------------------------------------------------------------------------------------------------
        MARGUERITE E.H.   Secretary since 2004   Managing Director and Associate General            57
        MORRISON                                 Counsel, New York Life Investment
        3/26/56                                  Management LLC (since June 2004);
                                                 Managing Director and Secretary, NYLIFE
                                                 Distributors LLC; Secretary, Eclipse
                                                 Funds, Eclipse Funds Inc., and MainStay
                                                 VP Series Fund, Inc.; Chief Legal
                                                 Officer--Mutual Funds and Vice President
                                                 and Corporate Counsel, The Prudential
                                                 Insurance Company of America (2000 to
                                                 June 2004).
        -------------------------------------------------------------------------------------------------
        RICHARD W.        Vice President--Tax    Vice President, New York Life Insurance            57
        ZUCCARO           since 1991             Company; Vice President, New York Life
        12/12/49                                 Insurance and Annuity Corporation, New
                                                 York Life Trust Company, FSB, NYLIFE
                                                 Insurance Company of Arizona, NYLIFE
                                                 LLC, and NYLIFE Securities Inc.; Vice
                                                 President, Tax, NYLIFE Distributors LLC;
                                                 Tax Vice President, New York Life
                                                 International, LLC, New York Life Trust
                                                 Company, and NYLIM Service Company LLC;
                                                 Vice President--Tax, Eclipse Funds,
                                                 Eclipse Funds Inc., and MainStay VP
                                                 Series Fund, Inc.
        -------------------------------------------------------------------------------------------------




www.mainstayfunds.com 27
PROXY VOTING POLICIES AND PROCEDURES

A description of the policies and procedures that New York Life Investment Management LLC (NYLIM) uses
to vote proxies related to the Fund's securities is available without charge, upon request, (i) by calling 1-800-
MAINSTAY (1-800-624-6782); (ii) by visiting the Fund's website at www.mainstayfunds.com; or (iii) on the
Securities and Exchange Commission's ("SEC") website at www.sec.gov.

The Fund is required to file with the SEC its proxy voting record for the 12-month period ending June 30 on
Form N-PX. The Fund's most recent Form N-PX is available free of charge upon request (i) by calling 1-800-
MAINSTAY (1-800-624-6782), (ii) by visiting the Fund's website at www.mainstayfunds.com, or (iii) on the
SEC's website at www.sec.gov.

SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE

The Fund is required to file its complete schedule of portfolio holdings with the SEC for its first and third fiscal
quarters on Form N-Q. The Fund's Form N-Q is available without charge on the SEC's website at
www.sec.gov or by calling NYLIM at 1-800-MAINSTAY (1-800-624-6782). You can obtain copies of Form
N-Q by
(i) visiting the SEC's Public Reference Room in Washington, DC (information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330); (ii) sending your request and a duplicating fee
to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending your request electronically
to publicinfo@sec.gov.

28 MainStay Blue Chip Growth Fund
MAINSTAY FUNDS

MAINSTAY OFFERS A WIDE RANGE OF FUNDS FOR VIRTUALLY ANY INVESTMENT NEED.
THE FULL ARRAY OF MAINSTAY OFFERINGS IS LISTED HERE, WITH INFORMATION ABOUT
THE MANAGER, SUBADVISORS, LEGAL COUNSEL, AND INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM.

EQUITY FUNDS
MainStay All Cap Growth Fund
MainStay All Cap Value Fund
MainStay Blue Chip Growth Fund
MainStay Capital Appreciation Fund
MainStay Common Stock Fund
MainStay Equity Index Fund(1)
MainStay Large Cap Growth Fund
MainStay MAP Fund
MainStay Mid Cap Growth Fund
MainStay Mid Cap Opportunity Fund
MainStay Mid Cap Value Fund
MainStay S&P 500 Index Fund
MainStay Small Cap Growth Fund
MainStay Small Cap Opportunity Fund
MainStay Small Cap Value Fund
MainStay Value Fund

INCOME FUNDS
MainStay Cash Reserves Fund
MainStay Diversified Income Fund
MainStay Floating Rate Fund
MainStay Government Fund
MainStay High Yield Corporate Bond Fund
MainStay Indexed Bond Fund
MainStay Intermediate Term Bond Fund
MainStay Money Market Fund
MainStay Short Term Bond Fund
MainStay Tax Free Bond Fund

BLENDED FUNDS
MainStay Asset Manager Fund
MainStay Balanced Fund
MainStay Convertible Fund
MainStay Total Return Fund

INTERNATIONAL FUNDS
MainStay Global High Income Fund
MainStay International Equity Fund

ASSET ALLOCATION FUNDS
MainStay Conservative Allocation Fund
MainStay Growth Allocation Fund
MainStay Moderate Allocation Fund
MainStay Moderate Growth Allocation Fund

MANAGER

NEW YORK LIFE INVESTMENT MANAGEMENT LLC
Parsippany, New Jersey
SUBADVISORS

MACKAY SHIELDS LLC(2)
New York, New York

GABELLI ASSET MANAGEMENT COMPANY
Rye, New York

JENNISON ASSOCIATES LLC
New York, New York

MARKSTON INTERNATIONAL LLC
White Plains, New York

WINSLOW CAPITAL MANAGEMENT, INC.
Minneapolis, Minnesota

LEGAL COUNSEL

DECHERT LLP

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP

PLEASE CONTACT YOUR INVESTMENT PROFESSIONAL OR CALL 1-800-MAINSTAY (1-800-
624-6782) FOR A FREE PROSPECTUS. INVESTORS ARE ASKED TO CONSIDER THE
INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES OF THE INVESTMENT
CAREFULLY BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER
INFORMATION ABOUT THE INVESTMENT COMPANY. PLEASE READ THE PROSPECTUS
CAREFULLY BEFORE INVESTING.

1. Closed to new purchases as of January 1, 2002.
2. An affiliate of New York Life Investment Management LLC.

www.mainstayfunds.com 29
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(NEW YORK LIFE INVESTMENT MANAGEMENT LLC LOGO)


Not FDIC insured. No bank guarantee. May lose value.

NYLIFE DISTRIBUTORS LLC, 169 LACKAWANNA AVENUE,
PARSIPPANY, NEW JERSEY 07054

This report may only be distributed when preceded or accompanied by a current Fund prospectus.

         www.mainstayfunds.com                                                The MainStay Funds

         (C) 2005 by NYLIFE Distributors LLC. All rights reserved.              SEC File Number:
         811-04550

         NYLIM-A07201           (RECYCLE SYMBOL)          MS225-05                  MSBC10-06/05
                                                                                              18
                                                 FORM N-CSR

ITEM 2. CODE OF ETHICS.

Not applicable.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS

The Schedule of Investments is included as part of Item 1 of this report.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-
END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT
COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable.

ITEM 11. 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-CSR (the "Report"), the Registrant's principal executive officer and principal
financial officer 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

                                                        -2-
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 second fiscal quarter of the period covered
by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal
control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1) Not applicable.

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

(a)(3) Not applicable.

(b) Certifications of principal executive officer and principal financial officer as required by Section 906 of the
Sarbanes-Oxley Act of 202.
                                                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.

THE MAINSTAY FUNDS

                       By: /s/ Christopher O. Blunt
                           -----------------------------------------------------
                           CHRISTOPHER O. BLUNT
                           President

                       Date: June 29, 2005




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/ Christopher O. Blunt
                           -----------------------------------------------------
                           CHRISTOPHER O. BLUNT
                           President

                       Date: June 29, 2005

                       By: /s/ Jeffrey J. Gaboury
                           -----------------------------------------------------
                           JEFFREY J. GABOURY
                           Vice President, Treasurer and Chief Financial Officer

                       Date: June 29, 2005
[EX-99.CERT]

                                                    Exhibit (a)(2)

SECTION 302 CERTIFICATIONS

I, Christopher O. Blunt, President of The MainStay Funds, certify that:

1. I have reviewed this report on Form N-CSR of The MainStay Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows
(if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the
registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting
to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days
prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred
during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee
of the registrant's board of trustees (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrant's internal control over financial reporting.

                                       By: /s/ Christopher O. Blunt
                                           ------------------------
                                           Christopher O. Blunt
                                           President

                                       Date: June 29, 2005
SECTION 302 CERTIFICATIONS

I, Jeffrey J. Gaboury, Vice President, Treasurer and Chief Financial Officer of The MainStay Funds, certify that:

1. I have reviewed this report on Form N-CSR of The MainStay Funds;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations, changes in net assets, and cash flows
(if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the
registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting
to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report
our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days
prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred
during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee
of the registrant's board of trustees (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role
in the registrant's internal control over financial reporting.

                                    By: /s/ Jeffrey J. Gaboury
                                        ------------------------------
                                        Jeffrey J. Gaboury
                                        Vice President, Treasurer and
                                        Chief Financial Officer

                                    Date: June 29, 2005
[EX.-99.906CERT]

                                                      Exhibit (b)

SECTION 906 CERTIFICATIONS

In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange
Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as applicable; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Registrant.

                                          By: /s/ Christopher O. Blunt
                                              ------------------------
                                              Christopher O. Blunt
                                              President

                                          Date: June 29, 2005
SECTION 906 CERTIFICATIONS

In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange
Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of
1934, as applicable; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Registrant.

                                      By: /s/ Jeffrey J. Gaboury
                                          ------------------------------
                                          Jeffrey J. Gaboury
                                          Vice President, Treasurer and
                                          Chief Financial Officer

                                      Date: June 29, 2005