NYLI PINESTONE U.S. EQUITY FUND CLASS I

Company Description

PineStoneAsset Management Inc., the Fund’s subadvisor (the “Subadvisor”), seeks to achieve theFund’s investment objective by investing substantially in a portfolio of U.S. equities. The Fundgenerally expects to focus on issuers with market capitalizations in excess of $5 billion. TheSubadvisor seeks to invest in what it believes are quality companies, i.e., companies that the Subadvisorconsiders to have, among other things, an ability to generate an elevated level of return on investedcapital significantly above the cost of capital.Under normal circumstances, the Fund investsat least 80% of its assets (net assets plus any borrowings for investment purposes) in equity securitiesof U.S. companies. An issuer of a security is considered to be a U.S. or foreign issuer based on theissuer’s “country of risk” (or similar designation) as determined by a third partysuch as Bloomberg, Factset or ICE Data Services Inc. Equity or equity-related securities represent an ownership interest, or the rightto acquire an ownership interest, in an issuer. Equity securities include common stock, preferred stock,convertible securities and depositary receipts. Investment Process: In pursuing the Fund’s investment objective, the Subadvisor employs a bottom-upstock selection approach which results in a portfolio generally ranging from 20 to 45 companies. A bottom-upstock selection approach focuses on the analysis of individual stocks (microeconomic factors) as opposedto the significance of economic cycles and market cycles (macroeconomic factors).TheSubadvisor looks for quality companies that have growth potential that are believed to be trading atattractive valuations. In doing so, the Subadvisor focuses on companies believed by the portfolio managementteam to have the following characteristics, among others: · Competitive advantage in an industry with high barriers toentry; · Attractiveindustry with pricing power, organic growth and limited cyclicality;· Strong managementteams with sound corporate governance; · History of stable profit margins; · Solid balance sheetwith low leverage; and · Attractive valuation with a stock price below intrinsic value.The portfolio management team expects to take a longer-term investment perspective,generally seeking to hold investments in companies for at least 5 years. In evaluating whether to sella security, the Subadvisor considers, among other factors, whether in its view the company no longercontinues to meet the standards described above and/or the Subadvisor believes there are more attractiveopportunities available for investment by the Fund. The Fund is non-diversified,which means that it may invest a greater amount of its assets in the securities of a single issuer ora small number of issuers than a diversified fund.