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-two funds (collectively referred to as the "Funds"). These financial statements and notes relate only to MainStay
International Equity Fund (the "Fund").
The Fund currently offers two classes of shares. Class A shares, whose distribution commenced on January 3, 1995, are offered at net
asset value per share plus an initial sales charge. Class B 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. Class A shares and Class B 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 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 provide long-term growth of capital commensurate with an acceptable level of risk by investing in
a portfolio consisting primarily of non-U.S. equity securities. Current income is a secondary objective.
There are certain risks involved in investing in foreign securities that are in addition to the usual risks inherent in domestic instruments.
These risks include those resulting from future adverse political and economic developments and possible imposition of currency
exchange blockages or other foreign governmental laws or restrictions.
Note 2--Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the Fund:
Valuation of Fund Shares. The net asset value per share of each class of shares is calculated on each day the New York Stock Exchange