NYLIM FUNDS TRUST’s amended prospectus describes limits of 5% for a single ETF, 10% across all ETFs and 3% of an ETF’s outstanding shares. The terms matter to investors because they define how funds may use ETFs, apply look-through treatment for 80% policies and secure securities loans.

Key Highlights

  • Funds ordinarily may invest up to 10% of total Assets across ETFs.
  • ETF holdings generally may not exceed 3% of an ETF’s total shares outstanding.
  • Securities loans must carry Collateral equal to at least 100% of the loaned securities’ current market value.

NYLIM FUNDS TRUST’s amended prospectus describes how its funds may use exchange-traded funds, including a 5% limit for investments in one ETF and a 10% limit across all ETFs under ordinary rules. The document is dated February 28, 2026 and amended August 28, 2026.

ETF Limits and Fund Investment Rules

A fund’s investment in a single ETF is ordinarily capped at 5% of total assets, while holdings across all ETFs are ordinarily limited to 10% of total assets. Investments in an ETF are also generally limited to 3% of that ETF’s total shares outstanding. Regulations under the 1940 Act may allow a fund to exceed those thresholds under specified terms and conditions.

The trust says portfolio managers may use ETFs to obtain broad equity-market, sector or asset-class exposure, manage cash flows or access markets that are restricted or not cost-effective for direct investment. A fund may count qualifying underlying holdings toward its 80% investment policy when those holdings can reasonably be identified, or when an underlying investment company maintains an 80% policy consistent with the fund’s investment focus.

Equity Risks and Securities-Lending Protections

The prospectus describes Growth Stocks as securities that may trade at higher multiples of current Earnings and may fall sharply if expected earnings growth is not achieved. Large-Cap Stocks may be less volatile overall, while mid-cap and small-cap stocks can face greater Liquidity constraints and sharper price movements.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/1469192/000146919226000196/c497.htm