Ivy Funds N14 Registration statement for investment companies business combination | SEC 13 Sep 05

IVY FUNDS

Equity Funds

Ivy Asset Strategy Fund

Ivy Balanced Fund

Ivy Capital Appreciation Fund

Ivy Core Equity Fund

Ivy Cundill Global Value Fund

Ivy Dividend Income Fund

Ivy European Opportunities Fund

Ivy Global Natural Resources Fund

Ivy International Fund

Ivy International Balanced Fund

Ivy International Growth Fund

Ivy International Value Fund

Ivy Large Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Pacific Opportunities Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Value Fund

The Securities and Exchange Commission has not approved or disapproved the Funds' securities, or determined whether this Prospectus is accurate or adequate. It is a criminal offense to state otherwise.

Prospectus

July 30, 2005

Contents

Ivy Asset Strategy Fund		3
Ivy Balanced Fund		9
Ivy Capital Appreciation Fund		14
Ivy Core Equity Fund		19
Ivy Cundill Global Value Fund		24
Ivy Dividend Income Fund		29
Ivy European Opportunities Fund		34
Ivy Global Natural Resources Fund		39
Ivy International Fund		45
Ivy International Balanced Fund		50
Ivy International Growth Fund		55
Ivy International Value Fund		60
Ivy Large Cap Growth Fund		65
Ivy Mid Cap Growth Fund		70
Ivy Pacific Opportunities Fund		75
Ivy Real Estate Securities Fund		80
Ivy Science and Technology Fund		85
Ivy Small Cap Growth Fund		91
Ivy Small Cap Value Fund		97
Ivy Value Fund		103
Additional Information about Principal Investment
	Strategies, Other Investments and Risks	108
The Management of the Funds		129
	Investment Advisor	129
	Management Fee	130
	Portfolio Management	131
Your Account		135
	Choosing a Share Class	135
	Ways to Set Up Your Account	144
	Pricing of Fund Shares	145
	Buying Shares	147
	Selling Shares	149
	Exchange Privileges	152
	Distributions and Taxes	156
Financial Highlights		159

Ivy Asset Strategy Fund

An Overview of the Fund

Objective

To provide high total return over the long term.

Principal Strategies

Ivy Asset Strategy Fund seeks to achieve its objective by allocating its assets among primarily stocks, bonds and short-term instruments.

"Stocks" include equity securities of all types, although Ivy Investment Management Company (IICO), the Fund' s investment manager, typically emphasizes a blend of value and growth potential in selecting stocks. Value stocks are those that IICO believes are currently selling below their true worth. Growth stocks are those whose earnings IICO believes are likely to grow faster than the economy. The Fund may invest in the securities of any size company.
"Bonds" include all varieties of fixed-income instruments, such as corporate or U.S. government debt securities, with remaining maturities of more than three years. This investment type may include a significant amount, up to 35% of the Fund's total assets, of high yield/high risk bonds, or junk bonds, which include bonds rated BB and below by Standard & Poor's, a division of the McGraw-Hill Companies, Inc. (S&P) and Ba and below by Moody's Investors Service (Moody's) or unrated bonds deemed by IICO to be of comparable quality.
"Short-term instruments" include all types of short-term securities with remaining maturities of three years or less, including higher-quality money market instruments.
Within each of these investment types, the Fund may invest all of its assets in domestic and/or foreign securities.

Although the Fund may allocate from 0-100% of its assets between stocks, bonds and short-term instruments, the Fund typically selects a mix which represents the way the Fund's investments will be allocated over the long term. Generally the Fund will invest in a portfolio mix of: 70% in stocks, 25% in bonds, and 5% in short-term instruments. This mix will vary over shorter time periods as IICO changes the Fund's holdings based on its current outlook for the different markets. These changes may be based on such factors as interest rate changes, security valuation levels and a rise in the potential for growth stocks.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Asset Strategy Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
IICO's skill in evaluating and selecting securities for the Fund and in allocating the Fund's assets among different types of investments
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
changes in foreign exchange rates, which may affect the value of the foreign securities the Fund holds
an increase in interest rates, which may cause the value of the Fund's fixed-income securities, especially bonds with longer maturities, to decline
prepayment of higher-yielding bonds held by the Fund
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

The Fund may invest up to 100% of its assets in foreign securities. Investing in foreign securities presents additional risks, such as foreign currency fluctuations and political or economic conditions affecting foreign countries. Accounting and disclosure standards also differ from country to country, which makes obtaining reliable research information more difficult. There is the possibility that, under unusual international monetary or political conditions, the Fund's assets might be more volatile than would be the case with other investments.

Market risk for small or medium sized companies may be greater than the market risk for large companies. Smaller companies are more likely to have limited financial resources and inexperienced management. Additionally, stock of smaller companies may experience volatile trading and price fluctuations.

Investments by the Fund in high yield/high risk bonds are more susceptible to the risk of non-payment or default, and their prices may be more volatile, than higher-rated bonds.

As with any mutual fund, the value of the Fund's shares will change and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Asset allocation funds are designed for investors who want to diversify among stocks, bonds and short-term instruments, in one fund. If you are looking for an investment that uses this technique in pursuit of high total return, Ivy Asset Strategy Fund may be appropriate for you. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Asset Strategy Fund

The bar chart presents the average annual total returns for Class C shares and shows how performance has varied from year to year. The returns for the Fund's other classes of shares during these periods were different from those of Class C shares because of variations in their respective expense structures.

The bar chart does not reflect any deferred sales charge that you may be required to pay upon redemption of the Fund's Class C shares. If the deferred sales charge were included, the returns would be less than those shown.

The bar chart and the performance table assume payment of dividends and other distributions in shares. As with all mutual funds, the Fund's past performance (before and after taxes) does not necessarily indicate how it will perform in the future.

Note that the performance information in the bar chart and performance table is based on calendar-year periods, while the information shown in the Financial Highlights section of this Prospectus and in the Fund's shareholder reports is based on the Fund's fiscal year.

Investment return and principal value of an investment will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Please visit www.ivyfunds.com for the Fund's most recent performance.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1996	3.92%
	1997	10.84%
	1998	8.64%
	1999	21.22%
	2000	20.66%
	2001	-11.74%
	2002	2.31%
	2003	10.55%
	2004	12.06%

In the period shown in the chart, the highest quarterly return was 15.58% (the first quarter of 2000) and the lowest quarterly return was -8.25% (the first quarter of 2001). The Class C return for the year through June 30, 2005 was 2.75%.

Average Annual Total Returns

The table below compares the Fund's average annual total returns to that of broad-based, securities market indexes that are unmanaged, and to a Lipper average that is a composite of mutual funds with goals similar to that of the Fund. The Fund's returns include the maximum sales charge for Class A shares (5.75%) and the applicable contingent deferred sales charge (CDSC) for Class B and Class C shares, treat dividend and capital gain distributions as reinvested and assume you sold your shares at the end of each period (unless otherwise noted).

The table also shows average annual returns, for Class C shares, on a before tax and after-tax basis. Return Before Taxes shows the actual change in the value of the Fund shares over the periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The two after-tax returns take into account taxes that may be associated with owning Fund shares. Return After Taxes on Distributions is a Fund's actual performance, adjusted by the effect of taxes on distributions made by the Fund during the period shown. Return After Taxes on Distributions and the Sale of Fund Shares is further adjusted to reflect the tax impact on any change in the value of Fund shares as if they had been sold on the last day of the period.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts, or to shares held by non-taxable entities.

After-tax returns are shown only for Class C shares. After-tax returns for other Classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			------	--------	--------
Class C (began on 04-20-1995)¹
	Before Taxes		12.06%	6.18%	8.03%
	After Taxes on Distributions		11.90%	4.53%	6.43%
	After Taxes on Distributions
		and Sale of Fund Shares	8.09%	4.58%	6.21%
Class Y (began on 12-29-1995)
	Before Taxes		13.04%	7.12%	9.22%
Class B (began on 07-03-2000)
	Before Taxes		7.97%	3.03%
Class A (began on 07-10-2000)
	Before Taxes		6.43%	2.93%
Indexes
	S&P 500 Index²		10.88%	-2.32%	11.11%³
	Citigroup Broad
		Investment Grade Index²	4.48%	7.74%	7.31%³
	Citigroup Short-Term
		Index for 1 Month Certificates
		of Deposit²	1.42%	2.99%	4.25%³
	Lipper Flexible Portfolio
		Funds Universe Average⁴	8.99%	1.67%	8.60%³

¹The returns shown for Class C shares are based on the performance of the Fund's prior Class B shares. On March 24, 2000, that Class B was combined with and redesignated as Class C, which had commenced operations on October 4, 1999. The prior Class B's performance has been adjusted to reflect the current CDSC structure applicable to Class C. Accordingly, these returns reflect no CDSC since it only applies to Class C shares held for 12 months or less.

²Reflects no deduction for fees, expenses or taxes.

³Index comparison begins on April 30, 1995.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Asset Strategy Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	---------	---------	---------	--------

	Management Fees		0.70%	0.70%	0.70%	0.70%
	Distribution and Service (12b-1) Fees		0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.49%	0.60%	0.51%	0.40%
	Total Annual Fund Operating Expenses		1.44%	2.30%	2.21%	1.35%

¹The CDSC which is imposed on the lesser of amount invested or redemption value of Class B shares, declines from 5% for redemptions made within the first year of purchase, to 4% for redemptions made within the second year, to 3% for redemptions made within the third and fourth years, to 2% for redemptions made within the fifth year, to 1% for redemptions made within the sixth year and to 0% for redemptions made after the sixth year. For Class C shares, a 1% CDSC applies to the lesser of amount invested or redemption value of Class C shares redeemed within 12 months after purchase. Solely for purposes of determining the number of months or years from the time of any payment for the purchase of shares, all payments during a month are totaled and deemed to have been made on the first day of the month.

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

This example is intended to help you compare the cost of investing in the shares of the Fund with the cost of investing in other mutual funds. The example assumes that (a) you invest $10,000 in the particular class of shares for each time period specified, (b) your investment has a 5% return each year, and (c) the expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$713	$1,004	$1,317	$2,200
Class B Shares	633	1,018	1,330	2,420¹
Class C Shares	224²	691	1,185	2,544
Class Y Shares	137	428	739	1,624

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$713	$1,004	$1,317	$2,200
Class B Shares	233	718	1,230	2,420¹
Class C Shares	224	691	1,185	2,544
Class Y Shares	137	428	739	1,624

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

²A 1% CDSC applies to the lesser of amount invested or redemption value of Class C shares redeemed within 12 months after the purchase date. Solely for purposes of determining the number of months from the time of any payment for the purchase of shares, all payments during a month are totaled and deemed to have been made on the first day of the month. Therefore, this number does not reflect the effect of the CDSC.

Ivy Balanced Fund

An Overview of the Fund

Objectives

To provide current income to the extent that, in the opinion of IICO, the Fund's investment manager, market and economic conditions permit. As a secondary objective, the Fund seeks long-term appreciation of capital.

Principal Investment Strategies

Ivy Balanced Fund invests primarily in a mix of stocks, debt securities and short-term instruments, depending on market conditions. In general, the Fund invests a portion of its total assets in either debt securities or preferred stocks, or both, in order to provide income and relative stability of capital. The Fund ordinarily invests at least 25% of its total assets in fixed income securities. The Fund owns common stocks in order to provide possible appreciation of capital and some dividend income. The Fund may also invest in foreign securities.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Balanced Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
IICO's skill in evaluating and selecting securities for the Fund and in allocating the Fund's assets among different types of investments
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
an issuer of a debt security or other fixed income obligation may not make payments on the security when due
an increase in interest rates, which may cause the value of the Fund's fixed-income securities, especially bonds with longer maturities, to decline
a decrease in interest rates, which may cause prepayment of higher-yielding bonds held by the Fund as well as a decline in its income
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
adverse bond and stock market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Foreign securities present additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Balanced Fund is designed for investors seeking current income and the potential for long-term appreciation of capital. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Balanced Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of broad measures of market performance. For periods prior to December 8, 2003, the performance shown below is the performance of the Class A shares of Advantus Spectrum Fund which along with its other classes of shares was reorganized on December 8, 2003 into Class A shares of Ivy Balanced Fund. The Fund would have had substantially similar annual returns because the shares would have been invested in the same portfolio of securities, but would differ to the extent that the Fund has different expenses. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy Balanced Fund. If those expenses were reflected, performance shown below would differ.

The bar chart presents the average annual total returns for Class A and shows how performance has varied from year to year over the past ten calendar years. The returns for the Fund's other classes of shares during these periods were different from those of Class A shares because of variations in their respective expense structures.

The bar chart does not reflect any sales charge that you may be required to pay upon purchase of the Fund's Class A shares. If the sales charge were included, the returns would be less than those shown.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	24.12%
	1996	11.58%
	1997	18.18%
	1998	22.60%
	1999	14.64%
	2000	-10.33%
	2001	-15.27%
	2002	-9.30%
	2003	20.59%
	2004	8.53%

In the period shown in the chart, the highest quarterly return was 14.70% (the fourth quarter of 1998) and the lowest quarterly return was -17.38% (the first quarter of 2001). The Class A return for the year through June 30, 2005 was 0.48%.

Average Annual Total Returns

The table below compares the Fund's average annual total returns to that of a broad-based securities market index that is unmanaged, and to a Lipper average that is a composite of mutual funds with goals similar to that of the Fund. The Fund's returns include the maximum sales charge for Class A shares (5.75%) and the applicable CDSC for Class B and Class C shares, treat dividend and capital gain distributions as reinvested and assume you sold your shares at the end of each period (unless otherwise noted).

The table also shows average annual returns, for Class A shares, on a before-tax and after-tax basis. Return Before Taxes shows the actual change in the value of the Fund shares over the periods shown, but does not reflect the impact of taxes on Fund distributions or the sale of Fund shares. The two after-tax returns take into account taxes that may be associated with owning Fund shares. Return After Taxes on Distributions is a Fund's actual performance, adjusted by the effect of taxes on distributions made by the Fund during the period shown. Return After Taxes on Distributions and Sale of Fund Shares is further adjusted to reflect the tax impact on any change in the value of Fund shares as if they had been sold on the last day of the period.

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life
			1 Year	of Class)	10 Years
			------	-----------	-----------
Class A¹
	Before Taxes		2.29%	-3.20%	6.94%
	After Taxes on Distributions		2.13%	-4.29%	5.01%
	After Taxes on Distributions
		and Sale of Fund Shares	1.74%	-3.04%²	5.26%
Class B (began on 12-8-03)
		Before Taxes	3.42%	5.43%
Class C (began on 12-8-03)
		Before Taxes	7.58%	9.32%
Class Y (began on 12-8-03)
		Before Taxes	8.76%	10.49%
Indexes
	S&P 500 Index³		10.88%	-2.32%	12.08%
	Citigroup Treasury/Government
		Sponsored/Credit Index³	4.35%	8.04%	7.84%
	Lipper Balanced Funds
		Universe Average⁴	7.93%	2.01%	9.09%

¹For periods prior to December 8, 2003, performance shown is that of the Advantus Spectrum Fund, the predecessor to Ivy Balanced Fund, restated to reflect current sales charges applicable to Class A shares of the Ivy Balanced Fund. Class A shares of the Ivy Balanced Fund would generally have had substantially similar returns to the Class A shares of the Advantus Spectrum Fund because they would have been invested in the same portfolio of securities, although returns would be different to the extent that expenses for Class A shares of the Advantus Spectrum Fund differ from expenses for Class A shares of Ivy Balanced Fund.

²After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

³Reflects no deduction for fees, expenses or taxes.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Balanced Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		0.70%	0.70%	0.70%	0.70%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.58%	0.83%	0.68%	0.35%
	Total Annual Fund Operating Expenses		1.53%	2.53%	2.38%	1.30%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$722	$1,031	$1,361	$2,294
Class B Shares	656	1,088	1,445	2,620¹
Class C Shares	241²	742	1,270	2,716
Class Y Shares	132	412	713	1,568

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$722	$1,031	$1,361	$2,294
Class B Shares	256	788	1,345	2,620¹
Class C Shares	241	742	1,270	2,716
Class Y Shares	132	412	713	1,568

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Capital Appreciation Fund

An Overview of the Fund

Objective

To provide long-term growth of capital while minimizing taxable gains and income to shareholders.

Principal Strategies

Ivy Capital Appreciation Fund (formerly, Ivy Tax-Managed Equity Fund) seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks of U.S. and foreign companies that IICO, the Fund's investment manager, considers to be high in quality and attractive in their long-term investment potential. Under normal market conditions, the Fund invests at least 80% of its net assets in equity securities, primarily common stocks and securities convertible into common stocks. The Fund seeks stocks that are favorably priced in relation to their fundamental value and will likely grow over time. While the Fund typically invests in the common stocks of large to medium sized U.S. companies, it may invest in companies of any size, any industry or any country in order to achieve its objective.

IICO manages the Fund using an investment strategy that is sensitive to the potential impact of Federal income tax on shareholders' investment returns. The Fund's tax-sensitive investment strategy is intended to lead to lower distributions of income and realized capital gains than funds managed without regard to Federal income tax consequences.

In selecting companies, IICO typically invests for the long term and selects securities that it believes offer strong opportunities for long-term growth of capital and that are attractively valued. While IICO primarily invests in growth stocks, it may also purchase value stocks. Value stocks are those that IICO believes are currently selling below their true worth.

When deciding to sell a security, IICO considers the negative tax impact of realizing capital gains and, if applicable, the positive tax impact of realizing capital losses. However, IICO may sell a security at a realized gain if it determines that the potential tax cost is outweighed by the risk of owning the security, or if more attractive investment opportunities are available. In addition, redemptions by shareholders may force the Fund to sell securities at an inappropriate time, potentially resulting in realized gains.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Capital Appreciation Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the skill of IICO in evaluating and selecting securities for the Fund
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
the mix of securities in the Fund, particularly the relative weightings in, and exposure to, different sectors and industries that may result in performance less favorable than another investment mix might have produced
the Fund's tax-sensitive investment strategy failing to limit distributions of taxable income and net realized capital gains as contemplated
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Market risk for small companies may be greater than that for medium and large companies. Smaller companies are more likely to have limited financial resources and inexperienced management. Stocks of smaller companies, and growth stocks in general, may also experience volatile trading and price fluctuations.

An investment in foreign securities presents additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Capital Appreciation Fund is designed for long-term taxable investors. Market conditions may limit the Fund's ability to realize capital losses or to avoid dividend income. While the Fund tries to reduce the extent to which shareholders incur taxes on Fund distributions of income and net realized gains, the Fund does expect to distribute taxable income and/or net capital gains from time to time. Investors may realize capital gains when they sell their shares. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Capital Appreciation Fund

The bar chart presents the average annual total returns for Class A and shows how performance has varied from year to year. The returns for the Fund's other classes of shares during these periods were different from those of Class A shares because of variations in their respective expense structures.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2001	-23.28%
	2002	-15.10%
	2003	27.64%
	2004	12.55%

In the period shown in the chart, the highest quarterly return was 11.34% (the second quarter of 2003) and the lowest quarterly return was -17.55% (the first quarter of 2001). The Class A return for the year through June 30, 2005 was 1.84%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				Life
			1 Year	of Class
			-----	--------
Class A (began on 06-30-2000)
	Before Taxes		6.08%	-5.66%
	After Taxes on Distributions		6.08%	-5.66%
	After Taxes on Distributions
		and Sale of Fund Shares	3.95%	-4.73%¹
Class C (began on 07-06-2000)
	Before Taxes		11.30%	-5.46%
Class B (began on 07-13-2000)
	Before Taxes		7.43%	-5.96%
Class Y (began on 09-15-2004)²
Indexes
	S&P 500 Index³		10.88%	-2.47%⁴
	Lipper Large-Cap Growth
		Funds Universe Average⁵	7.18%	-9.57%⁴

¹After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

²Class Y shares have been offered to the public since June 30, 2000; however, no Class Y shares were issued prior to September 15, 2004. Therefore, there is no Class Y return information to be included in the table, since the class has not been in operation for a full calendar year.

³Reflects no deduction for fees, expenses or taxes.

⁴Index comparison begins on June 30, 2000.

⁵Net of fees and expenses.

Fees and Expenses

Ivy Capital Appreciation Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees⁴		0.65%	0.65%	0.65%	0.65%
	Distribution and Service (12b-1) Fees		0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.93%	1.03%	1.16%	0.92%
	Total Annual Fund Operating Expenses		1.83%	2.68%	2.81%	1.82%
	Expenses Waived⁵		0.48%⁵	0.48%⁵	0.48%⁵	0.48%⁵
	Net Fund Operating Expenses		1.35%	2.20%	2.33%	1.34%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The expenses shown for Management Fees reflect the maximum annual fee payable; however, IICO has voluntarily agreed to waive its investment management fee on any day if the Fund's net assets are less than $25 million, subject to IICO's right to change or terminate this waiver.

⁵Effective upon the Fund's assets reaching a level of $25 million, IICO has contractually agreed to reimburse sufficient management fees to cap the expenses for the Fund's Class A shares at 1.35%, for the period through July 31, 2006.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$705	$1,054	$1,448	$2,546
Class B Shares	623	1,067	1,458	2,961¹
Class C Shares	236²	806	1,423	3,088
Class Y Shares	136	454	869	2,029

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$705	$1,054	$1,448	$2,546
Class B Shares	223	767	1,358	2,961¹
Class C Shares	236	806	1,423	3,088
Class Y Shares	136	454	869	2,029

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Core Equity Fund

An Overview of the Fund

Objectives

To provide capital growth and income.

Principal Strategies

Ivy Core Equity Fund seeks to achieve its objectives by investing, under normal market conditions, at least 80% of its net assets in equity securities, primarily common stocks of large U.S. and foreign companies with dominant market positions in their industries. The Fund invests in securities that have the potential for capital appreciation or that IICO, the Fund's investment manager, expects to resist market decline. Although the Fund typically invests in large companies, it may invest in securities of any size company.

IICO attempts to select securities with growth and income possibilities by looking at many factors including the company's:

profitability record
history of improving sales and profits
management
leadership position in its industry
stock price value
dividend payment history

Generally, in determining whether to sell a security IICO uses the same type of analysis that it uses in buying securities in order to determine whether the security has ceased to offer the prospect of significant growth potential and/or the prospect of continued dividend payments. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Core Equity Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

An investment in foreign securities presents additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

As with any mutual fund, the value of the Fund' s shares will change and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Core Equity Fund is designed for investors who seek capital growth and income. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Core Equity Fund

The bar chart presents the average annual total returns for Class C shares and shows how performance has varied from year to year over the past ten calendar years. The returns for the Fund's other classes of shares during these periods were different from those of Class C shares because of variations in their respective expense structures.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	29.65%
	1996	18.12%
	1997	24.61%
	1998	20.73%
	1999	12.15%
	2000	8.54%
	2001	-15.84%
	2002	-23.24%
	2003	16.01%
	2004	8.53%

In the period shown in the chart, the highest quarterly return was 17.05% (the second quarter of 1997) and the lowest quarterly return was -16.80% (the third quarter of 2002). The Class C return for the year through June 30, 2005 was 1.50%.

Average Annual Total Returns

After-tax returns are shown only for Class C shares. After-tax returns for other Classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years	10 Years
				(or Life	(or Life
			1 Year	of Class)	of Class)
			------	--------	--------
Class C¹
	Before Taxes		8.53%	-2.46%	8.60%
	After Taxes on Distributions		8.53%	-3.36%	7.62%
	After Taxes on Distributions
		and Sale of Fund Shares	5.55%	-2.09%²	7.55%
Class Y (began on 12-29-1995)
	Before Taxes		9.65%	-1.56%	7.39%
Class A (began on 07-03-2000)
	Before Taxes		3.08%	-5.68%
Class B (began on 07-11-2000)
	Before Taxes		4.31%	-6.02%
Indexes
	S&P 500 Index³		10.88%	-2.32%	12.08%
	Lipper Large-Cap Core Funds
		Universe Average⁴	7.79%	-3.45%	9.98%

²After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

³Reflects no deduction for fees, expenses or taxes.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Core Equity Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.70%	0.70%	0.70%	0.70%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.55%	0.66%	0.52%	0.29%
	Total Annual Fund Operating Expenses		1.50%	2.36%	2.22%	1.24%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$719	$1,022	$1,346	$2,263
Class B Shares	639	1,036	1,360	2,482¹
Class C Shares	225²	694	1,190	2,554
Class Y Shares	126	393	681	1,500

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$719	$1,022	$1,346	$2,263
Class B Shares	239	736	1,260	2,482¹
Class C Shares	225	694	1,190	2,554
Class Y Shares	126	393	681	1,500

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Cundill Global Value Fund

An Overview of the Fund

Objective

To provide long-term capital growth. Any income realized will be incidental.

Principal Strategies

Ivy Cundill Global Value Fund invests primarily in equity securities (including common stock, preferred stock and securities convertible into common stock) throughout the world, including emerging market countries, that the Fund's management team of Cundill Investment Research Ltd. (Cundill), the Fund's subadvisor, believes are trading below their estimated "intrinsic value."

"Intrinsic value" is the perceived realizable market value, determined through the management team's analysis of the companies' financial statements (and includes factors such as earnings, cash flows, dividends, business prospects, management capabilities and other catalysts for potentially increasing shareholder value).

To control its exposure to certain risks, the Fund may use certain derivative investment techniques (such as foreign currency exchange transactions and forward foreign currency contracts).

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Cundill Global Value Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund's portfolio is not performing as well as expected
investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the U.S. markets and that could affect the Fund's performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays
the risks of investing in foreign securities are more acute in countries with developing economies
the Fund may not be able to readily dispose of illiquid securities promptly at an acceptable price
the Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of Cundill as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Cundill Global Value Fund may be appropriate for investors seeking long-term growth potential, but who can accept significant fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Cundill Global Value Fund

The bar chart does not reflect any sales charge that you may be required to pay upon purchase of the Fund's Class A shares. If the sales charge were included, the return would be less than that shown.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2002	-12.17%
	2003	36.43%
	2004	18.06%

In the period shown in the chart, the highest quarterly return was 16.50% (the second quarter of 2003) and the lowest quarterly return was -11.38% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 3.58%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				Life
			1 Year	of Class
			------	--------
Class A (began on 09-04-2001)
	Before Taxes		11.27%	8.35%
	After Taxes on Distributions		11.10%	7.78%
	After Taxes on Distributions
		and Sale of Fund Shares	7.41%	6.88%
Class B (began on 09-26-2001)
	Before Taxes		13.05%	12.05%
Class C (began on 10-19-2001)
	Before Taxes		17.16%	12.16%
Class Y (began on 07-24-2003)
	Before Taxes		18.66%	25.04%
Indexes
	Morgan Stanley Capital International
		World Index¹	14.72%	9.12%²
	Lipper Global Funds
		Universe Average³	13.85%	9.31%²
	Lipper Global Small/Mid-Cap Value
		Funds Universe Average³	17.91%	12.68%²

¹Reflects no deduction for fees, expenses or taxes.

²Index comparison begins on September 30, 2001.

³Net of fees and expenses.

Fees and Expenses

Ivy Cundill Global Value Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		1.00%	1.00%	1.00%	1.00%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.47%	0.59%	0.39%	0.30%
	Total Annual Fund Operating Expenses		1.72%⁴	2.59%	2.39%⁴	1.55%⁴

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The Total Annual Fund Operating Expenses shown reflect the annual fee payable; however, Ivy Funds Distributor, Inc. (IFDI), the Fund's distributor, and Waddell & Reed Services Company (WRSCO), the Fund's transfer agent, have voluntarily agreed to waive expenses for Class A, Class C and Class Y shares so that the total annual fund operating expenses do not exceed the following levels: Class A, 1.90%; Class C, 2.55% and Class Y, 1.20%. IFDI and WRSCO may change or terminate this waiver at any time.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$740	$1,086	$1,455	$2,488
Class B Shares	662	1,105	1,475	2,713¹
Class C Shares	242²	745	1,275	2,726
Class Y Shares	158	490	845	1,845

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$740	$1,086	$1,455	$2,488
Class B Shares	262	805	1,375	2,713¹
Class C Shares	242	745	1,275	2,726
Class Y Shares	158	490	845	1,845

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Dividend Income Fund

An Overview of the Fund

Objectives

To provide income and long-term capital growth.

Principal Strategies

Ivy Dividend Income Fund seeks to achieve its objectives by investing primarily in dividend-paying common stocks that IICO, the Fund's investment manager, believes also demonstrate favorable prospects for long-term capital growth. Under normal market conditions, the Fund will invest at least 80% of its net assets in dividend-paying equity securities, which may include without limitation dividend-paying common stocks, preferred stocks or convertible preferred stocks. Although the Fund invests primarily in large companies, it may invest in companies of any size. The Fund invests primarily in domestic securities but may also invest up to 25% of its total assets in foreign securities.

IICO attempts to select securities by considering a company's ability to sustain, and potentially increase, its dividend payments. It also typically considers other factors, which may include the company's:

established operating history
competitive dividend yields
profitability record
history of improving sales and profits
management
leadership position in its industry
stock price value

Generally, in determining whether to sell a security, IICO considers many factors, including: changes in economic or market factors in general or with respect to a particular industry, changes in the market trends or other factors affecting an individual security, and changes in the relative market performance or appreciation possibilities offered by individual securities. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Dividend Income Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

An investment in foreign securities presents additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

As with any mutual fund, the value of the Fund's shares will change, and you could lose money on your investment. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Dividend Income Fund is designed for investors seeking income and long-term capital growth through a portfolio of primarily dividend-paying common stocks. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Dividend Income Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing the Fund's performance and by showing how the Fund's average annual total returns for the periods shown compare with those of a broad measure of market performance and a peer group average.

The bar chart presents the average annual total return for Class A shares. The returns for the Fund's other classes of shares were different from those of Class A shares because of variations in their respective expense structures.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31

2004

11.16%

In the period shown in the chart, the highest quarterly return was 9.11% (the fourth quarter of 2004) and the lowest quarterly return was -0.21% (the third quarter of 2004). The Class A return for the year through June 30, 2005 was 3.03%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				Life
			1 Year	of Class
			------	--------
Class A (began on 06-30-2003)
	Before Taxes		4.77%	10.34%
	After Taxes on Distributions		4.61%	10.19%
	After Taxes on Distributions
		and Sale of Fund Shares	3.35%	8.85%
Class B (began on 06-30-2003)
	Before Taxes		6.23%	11.39%
Class C (began on 06-30-2003)
	Before Taxes		10.23%	13.90%
Class Y (began on 06-30-2003)
	Before Taxes		11.39%	14.98%
Indexes
	Russell 1000 Index¹		11.40%	18.35%²
	Lipper Equity Income Funds
		Universe Average³	12.81%	18.62%²

¹Reflects no deduction for fees, expenses or taxes.²Index comparison begins on June 30, 2003.³Net of fees and expenses.

Fees and Expenses

Ivy Dividend Income Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
	(expenses that are		Class A	Class B	Class C	Class Y
	deducted from Fund assets)		--------	--------	--------	--------

	Management Fees		0.70%	0.70%	0.70%	0.70%
	Distribution and Service (12b-1) Fees		0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.65%	0.75%	0.73%	0.51%
	Total Annual Fund Operating Expenses		1.60%	2.45%	2.43%	1.46%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$728	$1,051	$1,396	$2,366
Class B Shares	648	1,064	1,406	2,576¹
Class C Shares	246²	758	1,296	2,766
Class Y Shares	149	462	797	1,746

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$728	$1,051	$1,396	$2,366
Class B Shares	248	764	1,306	2,576¹
Class C Shares	246	758	1,296	2,766
Class Y Shares	149	462	797	1,746

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy European Opportunities Fund

An Overview of the Fund

Objective

To provide long-term capital growth by investing in the securities markets of Europe.

Principal Strategies

Ivy European Opportunities Fund invests, under normal market conditions, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the equity securities (including common stock, preferred stock and securities convertible into common stock) of European companies, which may include:

large European companies, or European companies of any size that provide special investment opportunities (such as privatized companies, those providing exceptional value, or those engaged in initial public offerings);
small-capitalization companies in the more developed markets of Europe
companies operating in Europe's emerging markets

The Fund's subadvisor, Henderson Investment Management Ltd. (Henderson), uses a "bottom-up" investment approach, focusing on higher-quality companies that offer prospects for long-term earnings growth.

The Fund may also invest in European debt securities, up to 20% of which may be low-rated (commonly referred to as "high yield" or "junk" bonds). These securities typically are rated Ba or below by Moody's or BB or below by S&P (or are judged by Henderson to be of comparable quality).

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy European Opportunities Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund. This is called management risk
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund's portfolio is not performing as well as expected
changes in foreign exchange rates, which may affect the value of the foreign securities the Fund holds
the risks of investing in foreign securities are more acute in countries with developing economies
securities of smaller companies may be subject to more abrupt or erratic market movements than the securities of larger, more established companies, since smaller companies tend to be more thinly traded and because they are subject to greater business risk. Transaction costs of smaller-company stocks may also be higher than those of larger companies
securities issued through an initial public offering (IPO) can experience an immediate drop in value if the demand for the securities does not continue to support the offering price. Information about the issuers of IPO securities is also difficult to acquire since they are new to the market and may not have lengthy operating histories. The Fund may engage in short-term trading of its IPO investments, which could produce higher trading costs and adverse tax consequences. The number of securities issued in an IPO is also limited, so it is likely that IPO securities will represent a smaller component of the Fund's portfolio as the Fund's assets increase (and thus have a more limited effect on the Fund's performance)
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the US markets and that could affect the Fund's performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy European Opportunities Fund may be appropriate for investors seeking long-term growth potential, but who can accept moderate fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy European Opportunities Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2000	4.51%
	2001	-20.67%
	2002	-3.30%
	2003	51.02%
	2004	36.28%

In the period shown in the chart, the highest quarterly return was 44.83% (the first quarter of 2000) and the lowest quarterly return was -21.29% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 0.22%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			--------	-----------	-----------
Class A (began on 05-04-1999)
	Before Taxes		28.44%	9.23%	32.42%
	After Taxes on Distributions		28.43%	8.89%	27.40%
	After Taxes on Distributions
		and Sale of Fund Shares	18.51%	7.82%	25.67%
Class B (began on 05-24-1999)
	Before Taxes		31.28%	9.46%	32.66%
Class C (began on 10-24-1999)
	Before Taxes		35.26%	9.60%	18.38%
Class Y (began on 07-24-2003)
	Before Taxes		36.49%	52.15%
Indexes
	Morgan Stanley Capital International
		Europe^SM Index¹	20.88%	0.06%	3.49%²
	Lipper European Region Funds
		Universe Average³	21.51%	1.14%	6.37%²

¹Reflects no deduction for fees, expenses or taxes.

²Index comparison begins on May 31, 1999.

³Net of fees and expenses.

Fees and Expenses

Ivy European Opportunities Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		1.00%	1.00%	1.00%	1.00%
	Distribution and Service (12b-1) Fees		0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.53%	0.52%	0.50%	0.36%
	Total Annual Fund Operating Expenses		1.78%	2.52%	2.50%	1.61%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$745	$1,103	$1,484	$2,549
Class B Shares	655	1,085	1,440	2,674¹
Class C Shares	253²	779	1,331	2,836
Class Y Shares	164	508	876	1,911

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$745	$1,103	$1,484	$2,549
Class B Shares	255	785	1,340	2,674¹
Class C Shares	253	779	1,331	2,836
Class Y Shares	164	508	876	1,911

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Global Natural Resources Fund

An Overview of the Fund

Objective

To provide long-term growth. Any income realized will be incidental.

Principal Strategies

Ivy Global Natural Resources Fund invests, under normal market conditions, at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities (including common stock, preferred stock and securities convertible into common stock) of companies of any size throughout the world that own, explore or develop natural resources and other basic commodities or supply goods and services to such companies.

For these purposes, "natural resources" generally include:

precious metals (such as gold, silver and platinum);
ferrous and nonferrous metals (such as iron, aluminum, copper and steel);
strategic metals (such as uranium and titanium);
fossil fuels and chemicals;
forest products and agricultural commodities
undeveloped real property

The Fund's subadvisor, Mackenzie Financial Corporation (MFC), uses an equity style that focuses on both growth and value. Companies targeted for investment have strong management and financial positions, adding balance with established low cost, low debt producers and positions that are based on anticipated commodity price trends. The Fund may have some emerging markets exposure in an attempt to achieve higher returns over the long-term.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Global Natural Resources Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund. This is called management risk
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund's portfolio is not performing as well as expected
investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the U.S. markets and that could affect the Fund's performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays
the risks of investing in foreign securities are more acute in countries with developing economies
many of the companies in which the Fund may invest have relatively small market capitalizations. Securities of smaller companies may be subject to more abrupt or erratic market movements than the securities of larger, more established companies, since smaller companies tend to be more thinly traded and because they are subject to greater business risk. Transaction costs of smaller-company stocks may also be higher than those of larger companies
since the Fund can invest a significant portion of its assets in securities of companies principally engaged in natural resources activities, the Fund could experience wider fluctuations in value than funds with more diversified portfolios
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Investing in natural resources can be riskier than other types of investment activities because of a range of factors, including price fluctuation caused by real and perceived inflationary trends and political developments; and the cost assumed by natural resource companies in complying with environmental and safety regulations. Investing in physical commodities, such as gold, exposes the Fund to other risk considerations such as potentially severe price fluctuations over short periods of time and storage costs that exceed the custodial and/or brokerage costs associated with the Fund's other portfolio holdings.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Global Natural Resources Fund may be appropriate for investors seeking long-term growth potential, but who can accept potentially dramatic fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Global Natural Resources Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1998	-29.35%
	1999	40.98%
	2000	9.86%
	2001	15.40%
	2002	4.66%
	2003	45.61%
	2004	27.94%

In the period shown in the chart, the highest quarterly return was 24.19% (the fourth quarter of 2001) and the lowest quarterly return was -21.37% (the third quarter of 2001). The Class A return for the year through June 30, 2005 was 5.95%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			--------	----------	-----------
Class A (began on 01-02-1997)
	Before Taxes		20.59%	18.43%	12.03%
	After Taxes on Distributions		20.59%	18.15%	10.93%
	After Taxes on Distributions
		and Sale of Fund Shares	13.39%	16.13%	9.90%
Class B (began on 01-02-1997)
	Before Taxes		22.92%	18.82%	12.03%
Class C (began on 01-02-1997)
	Before Taxes		26.92%	18.96%	11.80%
Class Y (began on 07-24-2003)
	Before Taxes		28.46%	45.04%
Indexes
	Morgan Stanley Capital International
		Commodity-Related Index¹	24.23%	14.06%	8.76%²
	Lipper Natural Resources Funds
		Universe Average³	30.16%	14.26%	10.11%²

¹Reflects no deduction for fees, expenses or taxes.

²Index comparison begins on December 31, 1996.

³Net of fees and expenses.

Fees and Expenses

Ivy Global Natural Resources Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		0.95%	0.95%	0.95%	0.95%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.34%	0.42%	0.33%	0.28%
	Total Annual Fund Operating Expenses		1.54%⁴	2.37%	2.28%⁴	1.48%⁴

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The Total Annual Fund Operating Expenses shown reflect the annual fee payable; however, IFDI, the Fund's distributor, and WRSCO, the Fund's transfer agent, have voluntarily agreed to waive expenses for Class A, Class C and Class Y shares so that the total annual fund operating expenses do not exceed the following levels: Class A, 1.70%; Class C, 2.40% and Class Y, 1.20%. IFDI and WRSCO may change or terminate this waiver at any time.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$723	$1,033	$1,366	$2,304
Class B Shares	640	1,039	1,365	2,500¹
Class C Shares	231²	712	1,220	2,615
Class Y Shares	151	468	808	1,768

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$723	$1,033	$1,366	$2,304
Class B Shares	240	739	1,265	2,500¹
Class C Shares	231	712	1,220	2,615
Class Y Shares	151	468	808	1,768

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy International Fund

An Overview of the Fund

Objectives

To provide long-term growth. Consideration of current income is secondary to this principal objective.

Principal Strategies

Ivy International Fund invests, under normal market conditions, at least 80% of its net assets in equity securities (including common stock, preferred stock and securities convertible into common stock) principally traded in European, Pacific Basin and Latin American markets.

IICO, the Fund's investment manager, uses an investment approach that focuses on:

analyzing a company's financial statements
taking advantage of overvalued or undervalued markets
building a portfolio that is diversified by both region and sector

To enhance potential return, the Fund may invest in countries with new or comparatively undeveloped economies.

Some of the Fund's investments may produce income (such as dividends), although it is expected that any income realized would be incidental.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy International Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund. This is called management risk
changes in foreign exchange rates, which may affect the value of the securities the Fund holds
equity securities typically represent a proportionate ownership interest in a company. As a result, the value of equity securities rises and falls with a company's success or failure. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund’s portfolio is not performing as well as expected
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the U.S. markets and that could affect the Fund’s performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays. The risks of investing in foreign securities are more acute in countries with developing economies.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy International Fund may be appropriate for investors seeking long-term growth potential, but who can accept potentially dramatic fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy International Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	12.65%
	1996	19.72%
	1997	10.38%
	1998	7.34%
	1999	21.05%
	2000	-17.26%
	2001	-21.03%
	2002	-20.96%
	2003	26.24%
	2004	13.23%

In the period shown in the chart, the highest quarterly return was 16.41% (the fourth quarter of 1998) and the lowest quarterly return was -23.02% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was -0.81%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years	10 Years
				(or Life	(or Life
			1 Year	of Class)	of Class)
			--------	----------	-----------
Class A
	Before Taxes		6.72%	-7.00%	3.01%
	After Taxes on Distributions		6.72%	-8.33%	1.92%
	After Taxes on Distributions
		and Sale of Fund Shares	4.37%	-5.82%¹	2.51%
Class B
	Before Taxes		7.89%	-7.03%	2.64%
Class C (began on 04-30-1996)
	Before Taxes		12.02%	-6.89%	1.03%
Class Y (began on 07-24-2003)
	Before Taxes		13.17%	21.32%
Indexes
	Morgan Stanley Capital International
		EAFE Index²	20.25%	-1.14%	5.62%
	Lipper International Funds
		Universe Average³	18.04%	-2.02%	6.43%
	Lipper International Large Cap Core Funds
		Universe Average³	15.82%	-3.89%	3.35%

¹After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

²Reflects no deduction for fees, expenses or taxes.

³Net of fees and expenses.

Fees and Expenses

Ivy International Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		1.00%	1.00%	1.00%	1.00%
	Distribution and Service (12b-1) Fees		0.19%⁴	1.00%	1.00%	0.25%
	Other Expenses		0.43%	0.75%	0.64%	0.40%
	Total Annual Fund Operating
		Expenses	1.62%	2.75%	2.64%	1.65%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The annual 12b-1 fee for Class A shares of the Fund may equal up to 0.25% on net assets attributable to outstanding shares issued on or after January 1, 1992. Since the calculation of the annual 12b-1 fee does not take into account shares outstanding prior to January 1, 1992, this arrangement results in a rate of 12b-1 fee that is lower than 0.25% of the net assets attributable to outstanding Class A shares of the Fund.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$730	$1,057	$1,406	$2,386
Class B Shares	678	1,153	1,554	2,808¹
Class C Shares	267²	820	1,400	2,973
Class Y Shares	168	520	897	1,955

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$730	$1,057	$1,406	$2,386
Class B Shares	278	853	1,454	2,808¹
Class C Shares	267	820	1,400	2,973
Class Y Shares	168	520	897	1,955

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy International Balanced Fund

An Overview of the Fund

Objective

To provide a high level of total return.

Principal Strategies

Ivy International Balanced Fund invests in equity and debt securities issued by international companies of any size and by governmental agencies. The Fund invests primarily in developed foreign markets, but may invest a portion of its assets in developing foreign markets. Normally, the Fund invests approximately 50% to 70% of its assets in international equity securities and approximately 30% to 50% of its assets in international investment-grade debt securities.

In selecting equity securities the Fund's investment subadvisor, Templeton Investment Counsel LLC (Templeton), relies primarily on its analysis of the current market price of a company's securities relative to the company' s long-term earnings potential. Debt securities are selected, after an analysis of trends in interest rates and economic conditions, based on Templeton's judgment as to which securities are more likely to perform well under those conditions.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy International Balanced Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
changes in foreign exchange rates, which may affect the value of the securities the Fund holds
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor
an increase in interest rates, which may cause the value of the Fund's fixed-income securities, especially bonds with longer maturities, to decline
a decrease in interest rates, which may cause prepayment of higher-yielding bonds held by the Fund as well as a decrease in the Fund's income
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
adverse bond and stock market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Investing in foreign securities presents additional risks, such as currency fluctuations and political or economic conditions affecting the foreign country. Accounting and disclosure standards also differ from country to country, which makes obtaining reliable research information more difficult. There is the possibility that, under unusual international monetary or political conditions, the Fund's assets might be more volatile than would be the case with other investment choices. The risks of investing in foreign securities are more acute in countries with developing economies.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy International Balanced Fund seeks to achieve its investment objective over longer rather than shorter periods of time, and is designed for investors seeking long-term focus. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy International Balanced Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of broad measures of market performance. For periods prior to December 8, 2003, the performance shown below is the performance of the Class A shares of Advantus International Balanced Fund which along with its other classes of shares was reorganized on December 8, 2003 into Class A shares of Ivy International Balanced Fund. The Fund would have had substantially similar annual returns because the shares would have been invested in the same portfolio of securities, but would differ to the extent that the Fund has different expenses. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy International Balanced Fund. If those expenses were reflected, performance shown below would differ.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	12.63%
	1996	17.41%
	1997	5.12%
	1998	3.55%
	1999	15.66%
	2000	1.27%
	2001	-8.74%
	2002	-3.73%
	2003	37.93%
	2004	18.40%

In the period shown in the chart, the highest quarterly return was 17.99% (the second quarter of 2003) and the lowest quarterly return was -12.46% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was -0.93%.

Average Annual Total Returns

The table below compares the Fund's average annual total returns to that of broad-based securities market indexes that are unmanaged, and to a Lipper average that is a composite of mutual funds with goals similar to that of the Fund. The Fund's returns include the maximum sales charge for Class A shares (5.75%) and the applicable CDSC for Class B and Class C shares, treat dividend and capital gain distributions as reinvested and assume you sold your shares at the end of each period (unless otherwise noted).

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life
			1 Year	of Class)	10 Years
			------	-----------	-----------
Class A¹
	Before Taxes		11.59%	6.49%	8.59%
	After Taxes on Distributions		11.01%	5.46%	7.01%
	After Taxes on Distributions
		and Sale of Fund Shares	8.02%	5.14%	6.74%
Class B (began on 12-8-03)
		Before Taxes	13.00%	16.66%
Class C (began on 12-8-03)
		Before Taxes	17.14%	20.49%
Class Y (began on 12-8-03)
		Before Taxes	18.42%	21.78%
Indexes
	Morgan Stanley Capital International
		EAFE Index²	20.25%	-1.14%	5.62%
	Morgan Stanley Capital International All
		Country World (Excluding U.S.A.) Index²	21.36%	0.02%	6.03%
	J.P. Morgan Non-U.S. Government
		Bond Index²	12.02%	8.81%	7.59%
	Lipper Global Flexible Portfolio Funds
		Universe Average³	13.41%	3.03%	9.72%

¹For periods prior to December 8, 2003, performance shown is that of the Advantus International Balanced Fund, the predecessor of Ivy International Balanced Fund, restated to reflect current sales charges applicable to Class A shares of the Ivy International Balanced Fund. Class A shares of Ivy International Balanced Fund would generally have had substantially similar returns to the same class of shares of the Advantus International Balanced Fund because they would have been invested in the same portfolio of securities, although returns would be different to the extent that expenses for Class A shares of the Advantus International Balanced Fund differ from expenses for Class A shares of Ivy International Balanced Fund.

²Reflects no deduction for fees, expenses or taxes.

³Net of fees and expenses.

Fees and Expenses

Ivy International Balanced Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.70%	0.70%	0.70%	0.70%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.48%	0.96%	0.77%	0.47%
	Total Annual Fund Operating Expenses		1.43%	2.66%	2.47%	1.42%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$712	$1,001	$1,312	$2,190
Class B Shares	669	1,126	1,510	2,694¹
Class C Shares	250²	770	1,316	2,806
Class Y Shares	145	449	776	1,702

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$712	$1,001	$1,312	$2,190
Class B Shares	269	826	1,410	2,694¹
Class C Shares	250	770	1,316	2,806
Class Y Shares	145	449	776	1,702

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares 8 years after the month in which the shares were purchased.

Ivy International Growth Fund

An Overview of the Fund

Objectives

To provide long-term appreciation of capital. As a secondary objective, the Fund seeks current income.

Principal Strategies

Ivy International Growth Fund seeks to achieve its objectives by investing primarily in common stocks of foreign companies that IICO, the Fund's investment manager, believes have the potential for long-term growth represented by economic expansion within a country or region, as well as the privatization and/or restructuring of particular industries. The Fund emphasizes growth stocks, which are securities of companies whose earnings IICO believes are likely to grow faster than the economy. The Fund primarily invests in issuers of developed countries, and the Fund may invest in companies of any size.

Under normal market conditions, the Fund invests at least 80% of its net assets in foreign securities and at least 65% of its total assets in issuers of at least three foreign countries. The Fund generally limits its holdings so that no more than 75% of its total assets are invested in issuers of a single foreign country.

IICO may look at a number of factors in selecting securities for the Fund's portfolio. These include:

a company's growth and earnings potential
management of the company
industry position of the company
strength of the industry
applicable economic, market and political conditions of the country in which the company is located

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities of that type. For example, IICO may sell a security if it believes the security no longer offers significant growth potential, if it believes the management of the company has weakened, and/or there exists political or economic instability in the issuer's country. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy International Growth Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
changes in foreign exchange rates, which may affect the value of the securities the Fund holds
the earnings performance, credit quality and other conditions of the issuers whose securities the Fund holds
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Market risk for small or medium sized companies may be greater than that for large companies. For example, smaller companies are more likely to have limited financial resources, limited product lines or inexperienced management.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy International Growth Fund is designed for investors seeking long-term appreciation of capital by investing primarily in securities issued by foreign companies. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy International Growth Fund

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995*	8.34%
	1996	19.11%
	1997	16.89%
	1998	31.72%
	1999	88.66%
	2000	-24.49%
	2001	-27.20%
	2002	-19.88%
	2003	22.22%
	2004	12.70%

	In the period shown in the chart, the highest quarterly return was 67.07% (the fourth quarter of 1999) and the lowest quarterly return was -18.66% (the third quarter of 2002). The Class C return for the year through June 30, 2005 was -4.15%.

	*Effective as of April 20, 1995, the name of the Fund was changed from Global Income to International Growth and its investment objective was changed to long-term appreciation, with realization of income as a secondary objective.

Average Annual Total Returns

After-tax returns are shown only for Class C shares. After-tax returns for other Classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years	10 Years
				(or Life	(or Life
			1 Year	of Class)	of Class)
			------	--------	--------
Class C¹
	Before Taxes		12.70%	-9.51%	8.56%
	After Taxes on Distributions		12.60%	-11.23%	6.58%
	After Taxes on Distributions
		and Sale of Fund Shares	8.42%	-8.18%²	6.91%
Class Y (began on 12-29-1995)
	Before Taxes		14.15%	-8.36%	9.81%
Class A (began on 07-03-2000)
	Before Taxes		7.14%	-9.43%
Class B (began on 07-10-2000)
	Before Taxes		8.47%	-9.70%
Indexes
	Morgan Stanley Capital International
		EAFE Index³	20.25%	-1.14%	5.62%
	Lipper International Funds
		Universe Average⁴	18.04%	-2.02%	6.43%
	Lipper International Multi-Cap Core Funds
		Universe Average⁴	15.82%	-3.89%	4.48%

²After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

³Reflects no deduction for fees, expenses or taxes.

⁴Net of fees and expenses.

Fees and Expenses

Ivy International Growth Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.85%	0.85%	0.85%	0.85%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.79%	1.07%	0.92%	0.47%
	Total Annual Fund Operating Expenses		1.89%	2.92%	2.77%	1.57%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$756	$1,135	$1,538	$2,659
Class B Shares	695	1,204	1,638	2,999¹
Class C Shares	280²	859	1,464	3,099
Class Y Shares	160	496	855	1,867

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$756	$1,135	$1,538	$2,659
Class B Shares	295	904	1,538	2,999¹
Class C Shares	280	859	1,464	3,099
Class Y Shares	160	496	855	1,867

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy International Value Fund

An Overview of the Fund

Objectives

To provide long-term capital growth. Consideration of current income is secondary to this principal objective.

Principal Strategies

Ivy International Value Fund invests, under normal market conditions, at least 80% of its net assets in equity securities (including common stock, preferred stock and securities convertible into common stock) principally traded in European, Pacific Basin and Latin American markets.

IICO, the Fund's investment manager, uses a disciplined value approach while looking for investment opportunities around the world (including countries with new or comparatively undeveloped economies), preferring well-managed and undervalued companies. Some of the Fund's investments may produce income (such as dividends), although it is expected that any income realized would be incidental.

To control its exposure to certain risks, the Fund might engage in foreign currency exchange transactions and forward foreign currency contracts.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy International Value Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund's portfolio is not performing as well as expected
changes in foreign exchange rates which may affect the value of securities the Fund holds
the Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of IICO as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used
value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the manager's opinion, undervalued. If IICO's assessment of a company's prospects is wrong, the price of its stock may fall, or may not approach the value the manager has placed on it

Investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the U.S. markets and that could affect the Fund's performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays. The risks of investing in foreign securities are more acute in countries with developing economies.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy International Value Fund may be appropriate for investors seeking long-term growth potential, but who can accept potentially dramatic fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy International Value Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1998	6.63%
	1999	27.79%
	2000	-7.25%
	2001	-17.17%
	2002	-15.93%
	2003	27.19%
	2004	16.55%

In the period shown in the chart, the highest quarterly return was 16.49% (the fourth quarter of 1998) and the lowest quarterly return was -22.75% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 3.26%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			--------	----------	-----------
Class A (began on 05-13-1997)
	Before Taxes		9.85%	-2.04%	1.29%
	After Taxes on Distributions		9.85%	-2.13%	1.12%
	After Taxes on Distributions
		and Sale of Fund Shares	6.40%	-1.77%¹	1.02%
Class B (began on 05-13-1997)
	Before Taxes		11.48%	-2.27%	0.99%
Class C (began on 05-13-1997)
	Before Taxes		15.49%	-2.11%	0.97%
Class Y (began on 07-24-2003)
	Before Taxes		16.74%	25.88%
Indexes
	Morgan Stanley Capital International
		EAFE Index²	20.25%	-1.14%	4.44%³
	Lipper International Funds
		Universe Average⁴	18.04%	-2.02%	4.48%
Lipper International Large-Cap Core Funds
		Universe Average⁴	15.82%	-3.89%	3.35%³

¹After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

²Reflects no deduction for fees, expenses or taxes.

³Index comparison begins on May 31, 1997.

⁴Net of fees and expenses.

Fees and Expenses

Ivy International Value Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		1.00%	1.00%	1.00%	1.00%
		Distribution and Service
		(12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.75%	0.76%	0.79%	0.58%
	Total annual Fund operating expenses		2.00%	2.76%	2.79%	1.83%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$766	$1,166	$1,591	$2,768
Class B Shares	679	1,156	1,559	2,908¹
Class C Shares	282²	865	1,474	3,119
Class Y Shares	186	576	990	2,148

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$766	$1,166	$1,591	$2,768
Class B Shares	279	856	1,459	2,908¹
Class C Shares	282	865	1,474	3,119
Class Y Shares	186	576	990	2,148

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Large Cap Growth Fund

An Overview of the Fund

Objective

To provide appreciation of your investment.

Principal Strategies

Ivy Large Cap Growth Fund seeks to achieve its objective by investing primarily in a diversified portfolio of common stocks issued by growth-oriented, large to medium sized U.S. and foreign companies that IICO, the Fund's investment manager, believes have appreciation possibilities. Under normal market conditions, the Fund invests at least 80% of its net assets in large cap growth securities. Growth stocks are those whose earnings IICO believes are likely to grow faster than the economy. Although IICO anticipates the majority of the Fund's investments to be in large cap companies, the Fund may invest in companies of any size, subject to its 80% investment policy.

IICO attempts to select securities with appreciation possibilities by using a bottom-up analysis in looking at many factors. These include:

the company's market position, product line, technological position and prospects for sustainability and/or increased earnings
the management capability of the company being considered
the short-term and long-term outlook for the industry being analyzed
changes in economic and political conditions

IICO may also analyze the demands of investors for the security relative to its price. Securities may be chosen when IICO anticipates a development that might have an effect on the value of a security.

In general, IICO may sell a security if it determines that the security no longer presents sufficient appreciation potential; this may be caused by, or be an effect of, changes in the industry of the issuer, loss by the company of its competitive position, and/or poor use of resources. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Large Cap Growth Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
the skill of IICO in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

The Fund may invest a portion of its assets in foreign securities. Foreign securities present additional risks such as currency fluctuations and political or economic conditions affecting the foreign countries.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Large Cap Growth Fund is designed for investors seeking long-term investment growth. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Large Cap Growth Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2001	-23.50%
	2002	-19.78%
	2003	28.97%
	2004	5.94%

In the period shown in the chart, the highest quarterly return was 11.88% (the fourth quarter of 2001) and the lowest quarterly return was -18.97% (the first quarter of 2001). The Class A return for the year through June 30, 2005 was 2.55%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				Life
			1 Year	of Class
			------	---------
Class A (began on 06-30-2000)
	Before Taxes		-0.15%	-1.51%
	After Taxes on Distributions		-0.15%	-1.59%
	After Taxes on Distributions
		and Sale of Fund Shares	-0.10%¹	-1.31%¹
Class C (began on 07-03-2000)
	Before Taxes		5.00%	-1.12%
Class B (began on 07-06-2000)
	Before Taxes		0.75%	-2.07%
Class Y (began on 07-06-2000)
	Before Taxes		6.12%	-0.08%
Indexes
	S&P 500 Index²		10.88%	-2.47%³
	Lipper Large-Cap Growth Funds
		Universe Average⁴	7.18%	-9.57%³

¹After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

²Reflects no deduction for fees, expenses or taxes.

³Index comparison begins on June 30, 2000.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Large Cap Growth Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.70%	0.70%	0.70%	0.70%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.57%	0.83%	0.59%	0.30%
	Total Annual Fund Operating Expenses		1.52%⁴	2.53%	2.29%⁴	1.25%⁴

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The Total Annual Fund Operating Expenses shown reflect the annual fee payable; however, IFDI, the Fund's distributor, and WRSCO, the Fund's transfer agent, have voluntarily agreed to waive expenses for Class A, Class C and Class Y shares so that the total annual fund operating expenses do not exceed the following levels: Class A, 1.50%; Class C, 2.25% and Class Y, 1.20%. IFDI and WRSCO may change or terminate this waiver at any time.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$721	$1,028	$1,356	$2,283
Class B Shares	656	1,088	1,445	2,618¹
Class C Shares	232²	715	1,225	2,626
Class Y Shares	127	397	686	1,511

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$721	$1,028	$1,356	$2,283
Class B Shares	256	788	1,345	2,618¹
Class C Shares	232	715	1,225	2,626
Class Y Shares	127	397	686	1,511

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Mid Cap Growth Fund

An Overview of the Fund

Objective

To provide growth of your investment.

Principal Strategies

Ivy Mid Cap Growth Fund seeks to achieve its objective by investing primarily in common stocks of U.S. and foreign companies whose market capitalizations are within the range of capitalizations of companies comprising the Russell Midcap® Growth Index and that IICO, the Fund's investment manager, believes offer above-average growth potential. Under normal market conditions, the Fund invests at least 80% of its net assets in mid cap securities.

In selecting companies, IICO emphasizes a bottom-up approach and may look at a number of factors in its consideration of a security, such as:

new or innovative products or services
adaptive or creative management
strong financial and operational capabilities to sustain growth
market potential
profit potential

Generally, in determining whether to sell a stock, IICO uses the same type of analysis that it uses when buying stocks. For example, IICO may sell a holding if the company no longer meets the desired capitalization range or if the company position weakens in the industry or market. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Mid Cap Growth Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the economy
the skill of IICO in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Market risk for medium sized companies may be greater than that for large companies. Medium sized companies may have limited financial resources and less experienced management compared to large companies. Stocks of medium sized companies may experience volatile trading and price fluctuations.

The Fund may invest, to a lesser extent, in foreign securities, which present additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Mid Cap Growth Fund is designed for investors who are willing to accept greater risks than are present with many other mutual funds. The Fund is not intended for investors who desire assured income and conservation of capital. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Mid Cap Growth Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2001	-12.71%
	2002	-25.84%
	2003	30.42%
	2004	18.89%

In the period shown in the chart, the highest quarterly return was 17.54% (the second quarter of 2003) and the lowest quarterly return was -16.60% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 0.48%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				Life
			1 Year	of Class
			------	--------
Class A (began on 06-30-2000)
	Before Taxes		12.05%	0.51%
	After Taxes on Distributions		12.05%	0.18%
	After Taxes on Distributions
		and Sale of Fund Shares	7.83%	0.28%
Class C (began on 07-03-2000)
	Before Taxes		18.04%	0.95%
Class B (began on 07-06-2000)
	Before Taxes		13.43%	0.09%
Class Y (began on 07-10-2000)
	Before Taxes		19.07%	1.54%
Indexes
	Russell Mid-Cap Growth Index¹		15.47%	-6.14%²
	Lipper Mid-Cap Growth Funds
		Universe Average³	12.79%	-5.64%²

¹Reflects no deduction for fees, expenses or taxes.

²Index comparison begins on June 30, 2000.

³Net of fees and expenses.

Fees and Expenses

Ivy Mid Cap Growth Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.85%	0.85%	0.85%	0.85%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.60%	0.95%	0.61%	0.38%
	Total Annual Fund Operating Expenses		1.70%⁴	2.80%	2.46%⁴	1.48%⁴

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

⁴The Total Annual Fund Operating Expenses shown reflect the annual fee payable; however, IFDI, the Fund's distributor, and WRSCO, the Fund's transfer agent, have voluntarily agreed to waive expenses for Class A, Class C and Class Y shares so that the total annual fund operating expenses do not exceed the following levels: Class A, 1.65%; Class C, 2.35% and Class Y, 1.25%. IFDI and WRSCO may change or terminate this waiver at any time.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$738	$1,080	$1,445	$2,468
Class B Shares	683	1,168	1,579	2,865¹
Class C Shares	249²	767	1,311	2,796
Class Y Shares	151	468	808	1,768

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$738	$1,080	$1,445	$2,468
Class B Shares	283	868	1,479	2,865¹
Class C Shares	249	767	1,311	2,796
Class Y Shares	151	468	808	1,768

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Pacific Opportunities Fund

An Overview of the Fund

Objectives

To provide long-term capital growth. Consideration of current income is secondary to this principal objective.

Principal Strategies

Ivy Pacific Opportunities Fund invests, under normal market conditions, at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities (including common stock, preferred stock and securities convertible into common stock) of companies whose securities are traded mainly on markets in the Pacific region, organized under the laws of a Pacific region country or issued by any company with more than half of its business in the Pacific region. Examples of Pacific region countries include China, Hong Kong, Malaysia, South Korea, Taiwan, Singapore, Thailand, Indonesia, Australia and India.

IICO uses an investment approach that focuses on analyzing a company's financial statements and taking advantage of overvalued or undervalued markets. Some of the Fund's investments may produce income (such as dividends), although it is expected that any income realized would be incidental.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Pacific Opportunities Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund. This is called management risk
equity securities typically represent a proportionate ownership interest in a company. The market value of equity securities can fluctuate significantly even where management risk is not a factor. You could lose money if you redeem your Fund shares at a time when the Fund's portfolio is not performing as well as expected
investing in foreign securities involves a number of economic, financial, and political considerations that are not associated with the U.S. markets and that could affect the Fund's performance unfavorably, depending on the prevailing conditions at any given time. Among these potential risks are greater price volatility; comparatively weak supervision and regulations of security exchanges, brokers, and issuers; higher brokerage costs; fluctuations in foreign currency exchange rates and related conversion costs; adverse tax consequences; and settlement delays
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

The risks of investing in foreign securities are more acute in countries with developing economies. Since the Fund normally invests a substantial portion of its assets in these countries, it is exposed to the following additional risks: securities that are even less liquid and more volatile than those in more developed foreign countries; unusually long settlement delays; less stable governments that are susceptible to sudden adverse actions (such as nationalization of businesses, restrictions on foreign ownership or prohibitions against reparation of assets); abrupt changes in exchange rate regime or monetary policy; unusually large currency fluctuations and currency conversion costs; and high national debt levels (which may impede an issuer payment of principal and/or interest on external debt).

Investing in the Pacific region involves special risks beyond those described above. For example, certain Pacific region countries may be vulnerable to trade barriers and other protectionist measures that could have an adverse effect on the value of the Fund's portfolio. The limited size of the markets for some Pacific region securities can also make them more susceptible to investor perceptions, which can impact their value and liquidity.

Events in any one country may impact the other countries or the region as a whole. As a result, events in the region will generally have a greater effect on the Fund than if the Fund were more geographically diversified, which may result in greater losses and volatility. Increased social or political unrest in some or all of these countries could cause further economic and market uncertainty.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Pacific Opportunities Fund may be appropriate for investors seeking long-term growth potential, but who can accept potentially dramatic fluctuations in capital value in the short term. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Pacific Opportunities Fund

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	1.59%
	1996	20.50%
	1997	-21.94%
	1998	-20.56%
	1999	46.72%
	2000	-18.25%
	2001	-9.29%
	2002	-11.31%
	2003	52.85%
	2004	16.79%

In the period shown in the chart, the highest quarterly return was 40.73% (the second quarter of 1999) and the lowest quarterly return was -30.21% (the fourth quarter of 1997). The Class A return for the year through June 30, 2005 was 2.82%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years	10 Years
				(or Life	(or Life
			1 Year	of Class)	of Class)
			--------	----------	-----------
Class A
	Before Taxes		10.08%	2.05%	2.11%
	After Taxes on Distributions		10.08%	1.97%	1.88%
	After Taxes on Distributions
		and Sale of Fund Shares	6.55%	1.70%	1.69%
Class B
	Before Taxes		11.68%	1.83%	1.71%
Class C (began on 04-30-1996)
	Before Taxes		15.90%	2.28%	1.00%
Class Y (began on 07-24-2003)
	Before Taxes		17.09%	36.18%
Indexes
	Morgan Stanley Capital International Asia
		Free (Ex-Japan) Index¹	23.02%	3.47%	2.84%
	Morgan Stanley Capital International Asia
		Pacific Free (Ex-Japan) Index¹	17.72%	-0.24%	0.25%
	Lipper Pacific Ex-Japan Funds
		Universe Average²	16.50%	1.68%	3.52%

¹Reflects no deduction for fees, expenses or taxes.

²Net of fees and expenses.

Fees and Expenses

Ivy Pacific Opportunities Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	--------	--------	--------	--------

	Management Fees		1.00%	1.00%	1.00%	1.00%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.92%	1.01%	0.99%	0.58%
	Total Annual Fund Operating
		Expenses	2.17%	3.01%	2.99%	1.83%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than 30 days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$782	$1,215	$1,672	$2,934
Class B Shares	704	1,230	1,682	3,131¹
Class C Shares	302²	924	1,572	3,308
Class Y Shares	186	576	990	2,148

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$782	$1,215	$1,672	$2,934
Class B Shares	304	930	1,582	3,131¹
Class C Shares	302	924	1,572	3,308
Class Y Shares	186	576	990	2,148

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Real Estate Securities Fund

An Overview of the Fund

Objective

To provide total return through a combination of capital appreciation and current income.

Principal Strategies

Ivy Real Estate Securities Fund invests, under normal market conditions, at least 80% of its net assets (exclusive of collateral received in connection with securities lending) in real estate securities and real estate-related securities. "Real estate securities" include securities issued by issuers that receive at least 50% of their gross revenue from the construction, ownership, management, financing or sale of residential, commercial or industrial real estate. "Real estate-related securities" include securities issued by companies primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry.

Most of the Fund's real estate securities portfolio will consist of securities issued by Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs) that are listed on a securities exchange or traded over-the-counter. A REIT is a corporation or trust that invests in fee or leasehold ownership of real estate, mortgages or shares issued by other REITs. A REOC is a corporation that invests in fee or leasehold ownership of real estate, mortgages or shares issued by other REITs, but may also engage in related or unrelated businesses. In selecting securities for investment by the Fund, factors such as an issuer's financial condition, financial performance, quality of management, policies and strategies, real estate properties, and competitive market condition are considered by the Fund's investment subadvisor, Advantus Capital Management, Inc. (Advantus Capital). The Fund then invests in those issuers which Advantus Capital determines have potential for long-term sustainable growth in earnings or those trading at discounts to the underlying value of assets owned.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Real Estate Securities Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the value of the Fund's investments or their cashflow may decrease due to a variety of factors related to the construction, development, ownership, financing, repair or servicing or other events affecting the value of real estate, buildings or other real estate fixtures
the value of the Fund's securities issued by real estate-related companies (as discussed in "Additional Information about Principal Investment Strategies and Risks" below) will be adversely affected by changes in the value of the underlying property or the property's cashflow
the value of the Portfolio's securities issued by REITs may be affected if one or more REIT holdings were to lose their favorable tax status
the value of the Portfolio's securities owned by REOCs may be affected by income streams derived from businesses other than real estate ownership
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Because the Fund concentrates its investments in the real estate and real estate related industries, the Fund' s performance may be more susceptible to a single economic, regulatory or technological occurrence than an investment portfolio that does not concentrate its investments in a single industry.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Real Estate Securities Fund seeks to achieve its investment objective over longer rather than shorter periods of time, and is designed for investors seeking long-term focus. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Real Estate Securities Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of broad measures of market performance and a peer group average. For periods prior to December 8, 2003, the performance shown below is the performance of the Class A shares of Advantus Real Estate Securities Fund which along with its other classes of shares was reorganized on December 8, 2003 into Class A shares of the Ivy Real Estate Securities Fund. The Fund would have had substantially similar annual returns because the shares would have been invested in the same portfolio of securities, but would differ to the extent that the Fund has different expenses. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy Real Estate Securities Fund. If those expenses were reflected, performance shown below would differ.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	2000	25.66%
	2001	9.60%
	2002	6.19%
	2003	41.14%
	2004	34.69%

In the period shown in the chart, the highest quarterly return was 17.72% (the fourth quarter of 2004) and the lowest quarterly return was -9.01% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 5.13%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			--------	--------------	-------------
Class A (began on 2-25-1999)¹
	Before Taxes		26.94%	21.25%	17.84%
	After Taxes on Distributions		25.24%	18.86%	15.48%
	After Taxes on Distributions
		and Sale of Fund Shares	18.48%	17.45%	14.40%
Class B (began on 12-8-03)
		Before Taxes	29.28%	30.01%
Class C (began on 12-8-03)
		Before Taxes	33.56%	34.05%
Class Y (began on 12-8-03)
		Before Taxes	34.93%	35.31%
Indexes
	Dow Jones Wilshire Real Estate
		Securities Index²	34.81%	22.31%	18.77%³
	Lipper Real Estate Funds
		Universe Average⁴	32.05%	21.41%	18.26%³

¹For periods prior to December 8, 2003, performance shown is that of the Advantus Real Estate Securities Fund, the predecessor of Ivy Real Estate Securities Fund, restated to reflect current sales charges applicable to Class A shares of the Ivy Real Estate Securities Fund. Class A shares of Ivy Real Estate Securities Fund would generally have had substantially similar returns to Class A shares of the Advantus Real Estate Securities Fund because they would have been invested in the same portfolio of securities, although returns would be different to the extent that expenses for Class A shares of the Advantus Real Estate Securities Fund differ from expenses for Class A shares of Ivy Real Estate Securities Fund.

²Reflects no deduction for fees, expenses or taxes.

³Index comparison begins on February 28, 1999.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Real Estate Securities Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.90%	0.90%	0.90%	0.90%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.53%	0.85%	0.61%	0.30%
	Total Annual Fund Operating Expenses		1.68%	2.75%	2.51%	1.45%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example


If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$736	$1,074	$1,435	$2,448
Class B Shares	678	1,153	1,554	2,823¹
Class C Shares	254²	782	1,335	2,846
Class Y Shares	148	459	792	1,735

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$736	$1,074	$1,435	$2,448
Class B Shares	278	853	1,454	2,823¹
Class C Shares	254	782	1,335	2,846
Class Y Shares	148	459	792	1,735

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Science and Technology Fund

An Overview of the Fund

Objective

To provide long-term capital growth.

Principal Strategies

Ivy Science and Technology Fund seeks to achieve its objective of growth by concentrating its investments primarily in the equity securities of U.S. and foreign science and technology companies. Under normal market conditions, the Fund invests at least 80% of its net assets in securities of science or technology companies or companies benefited by the application of scientific or technological discoveries. Science and technology companies are companies whose products, processes or services, in the opinion of IICO, are being or are expected to be significantly benefited by the use or commercial application of scientific or technological developments or discoveries. The Fund may also invest in companies that utilize science and/or technology to improve their existing business even though the business is not within the science and technology industries. The Fund may invest in companies of any size.

IICO typically emphasizes growth potential in selecting stocks; that is, IICO seeks companies in which earnings are likely to grow faster than the economy. IICO may look at a number of factors in selecting securities for the Fund's portfolio. These include the issuer's:

growth potential
earnings potential
management
industry position
applicable economic and market conditions

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities in order to determine whether the security has ceased to offer significant growth potential, has become overvalued and/or whether the company prospects of the issuer have deteriorated. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Science and Technology Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the mix of securities in the Fund's portfolio, particularly the relative weightings in, and exposure to, different sectors of the science and technology industries
the volatility of securities of science and technology companies due, in part, to the competitiveness of the industry
rapid obsolescence of products or processes of companies in which the Fund invests
government regulation in the science and technology industry
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Because the Fund concentrates its investments in science and technology companies, the Fund's performance may be more susceptible to a single economic, regulatory or technological occurrence than an investment portfolio that does not concentrate its investments in a single industry.

Market risk for small to medium sized companies may be greater than the market risk for large companies. Smaller companies are more likely to have limited financial resources and inexperienced management. As well, stocks of smaller companies may experience volatile trading and price fluctuations.

The Fund may invest, to a lesser extent, in foreign securities. Investments in foreign securities present additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Science and Technology Fund is designed for investors who seek long-term capital growth by investing in an actively managed Fund that concentrates in securities of science and technology companies. This Fund is not suitable for all investors. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Science and Technology Fund

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year


	1998	44.03%
	1999	177.01%¹
	2000	-26.31%
	2001	-14.48%
	2002	-26.57%
	2003	30.17%
	2004	15.18%

	In the period shown in the chart, the highest quarterly return was 82.61% (the fourth quarter of 1999) and the lowest quarterly return was -23.25% (the second quarter of 2000). The Class C return for the year through June 30, 2005 was 3.17%.

	¹A substantial portion of the Fund's returns during this period is attributable to investments in initial public offerings (IPOs). No assurance can be given that the Fund will be able to invest in IPOs to the same extent as it has in the past or that future IPOs in which the Fund invests will have as equally beneficial an impact on performance.

Average Annual Total Returns

After-tax returns are shown only for Class C shares. After-tax returns for other Classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years
				(or Life	Life
			1 Year	of Class)	of Class
			--------	-----------	-----------
Class C (began on 07-31-1997)¹
	Before Taxes		15.18%	-7.05%	15.04%
	After Taxes on Distributions		15.18%	-8.09%	14.13%
	After Taxes on Distributions
		and Sale of Fund Shares	9.87%	-5.95%²	13.36%
Class Y (began on 06-09-1998)
	Before Taxes		16.56%	-6.02%	14.71%
Class A (began on 07-03-2000)
	Before Taxes		9.57%	-5.20%
Class B (began on 07-03-2000)
	Before Taxes		10.78%	-5.30%
Indexes
	Goldman Sachs Technology
		Industry Composite Index³	2.91%	-15.90%	2.45%⁴
	Lipper Science & Technology
		Funds Universe Average⁵	3.97%	-16.49%	4.02%⁴

²After-tax returns may be better than before-tax returns due to an assumed tax benefit from losses on a sale of the Fund's shares at the end of the period.

³Reflects no deduction for fees, expenses or taxes.

⁴Index comparison begins on July 31, 1997.

⁵Net of fees and expenses.

Fees and Expenses

Ivy Science and Technology Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.85%	0.85%	0.85%	0.85%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.59%	1.04%	0.72%	0.35%
	Total Annual Fund Operating Expenses		1.69%	2.89%	2.57%	1.45%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$737	$1,077	$1,440	$2,458
Class B Shares	692	1,195	1,623	2,929¹
Class C Shares	260²	799	1,365	2,905
Class Y Shares	148	459	792	1,735

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$737	$1,077	$1,440	$2,458
Class B Shares	292	895	1,523	2,929¹
Class C Shares	260	799	1,365	2,905
Class Y Shares	148	459	792	1,735

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Small Cap Growth Fund

An Overview of the Fund

Objective

To provide growth of capital.

Principal Strategies

Ivy Small Cap Growth Fund seeks to achieve its objective by investing, under normal market conditions, at least 80% of its net assets in common stocks of domestic and foreign companies whose market capitalizations are within the range of capitalizations of companies included in the Russell 2000® Growth Index (small cap stocks). The Fund emphasizes relatively new or unseasoned companies in their early stages of development or smaller companies positioned in new or emerging industries where there is opportunity for rapid growth.

In selecting companies, IICO seeks companies whose earnings, it believes, are likely to grow faster than the economy. IICO may look at a number of factors regarding a company, such as:

aggressive or creative management
technological or specialized expertise
new or unique products or services
entry into new or emerging industries
growth in earnings/growth in sales
security size and liquidity

Generally, in determining whether to sell a security, IICO uses the same type of analysis that it uses in buying securities. For example, IICO may sell a security if it determines that the stock no longer offers significant growth potential, which may be due to a change in the business or management of the company or a change in the industry of the company. IICO may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Small Cap Growth Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
the mix of securities in the Fund, particularly the relative weightings in, and exposure to, different sectors and industries
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

Market risk for small to medium sized companies may be greater than that for large companies. Smaller companies are more likely to have limited financial resources and inexperienced management. Stock of smaller companies may also experience volatile trading and price fluctuations.

Due to the nature of the Fund's permitted investments, primarily the small cap stocks of new and/or unseasoned companies, companies in their early stages of development or smaller companies in new or emerging industries, the Fund may be subject to the following additional risks:

products offered may fail to sell as anticipated
a period of unprofitability may be experienced before a company develops the expertise and clientele to succeed in an industry
the company may never achieve profitability
economic, market and technological factors may cause the new industry itself to lose favor with the public

The Fund may invest in foreign securities, which present additional risks such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Small Cap Growth Fund is designed for investors willing to accept greater risks than are present with many other mutual funds. It is not intended for those investors who desire assured income and conservation of capital. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Small Cap Growth Fund

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	32.14%
	1996	2.30%
	1997	21.12%
	1998	44.57%
	1999	61.42%
	2000*	-16.22%
	2001	-2.64%
	2002	-25.82%
	2003	35.31%
	2004	12.96%

	In the period shown in the chart, the highest quarterly return was 40.97% (the fourth quarter of 1999) and the lowest quarterly return was -23.83% (the third quarter of 2001). The Class C return for the year through June 30, 2005 was 5.03%.

	*Effective as of June 30, 2000, the name of the Fund was changed from Growth to Small Cap Growth and its strategy was changed to reflect a concentration in small cap securities.

Average Annual Total Returns

After-tax returns are shown only for Class C shares. After-tax returns for other Classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

				5 Years	10 Years
				(or Life	(or Life
			1 Year	of Class)	of Class)
			------	--------	--------
Class C¹
	Before Taxes		12.96%	-1.55%	13.46%
	After Taxes on Distributions		12.96%	-3.70%	11.07%
	After Taxes on Distributions
		and Sale of Fund Shares	8.42%	-2.18%	11.10%
Class Y (began on 12-29-1995)
	Before Taxes		14.02%	-0.66%	12.62%
Class A (began on 07-03-2000)
	Before Taxes		7.31%	-2.29%
Class B (began on 07-06-2000)
	Before Taxes		8.70%	-1.88%
Indexes
	Russell 2000 Growth Index²		14.30%	-3.54%	7.11%
	Lipper Small-Cap Growth Funds
		Universe Average³	10.65%	-1.82%	9.44%

²Reflects no deduction for fees, expenses or taxes.

³Net of fees and expenses.

Fees and Expenses

Ivy Small Cap Growth Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.85%	0.85%	0.85%	0.85%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.44%	0.67%	0.41%	0.26%
	Total Annual Fund Operating Expenses		1.54%	2.52%	2.26%	1.36%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$723	$1,033	$1,366	$2,304
Class B Shares	655	1,085	1,440	2,615¹
Class C Shares	229²	706	1,210	2,595
Class Y Shares	138	431	745	1,635

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$723	$1,033	$1,366	$2,304
Class B Shares	255	785	1,340	2,615¹
Class C Shares	229	706	1,210	2,595
Class Y Shares	138	431	745	1,635

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Small Cap Value Fund

An Overview of the Fund

Objective

To provide long-term accumulation of capital.

Principal Strategies

Ivy Small Cap Value Fund primarily invests in various types of equity securities of small capitalization companies. Under normal market conditions, at least 80% of the Fund's total assets (exclusive of collateral received in connection with securities lending) will be invested, at the time of purchase, in common stocks of small capitalization domestic companies and foreign issuers that are publicly traded in the United States. Although a universal definition of small capitalization companies does not exist, the Fund generally defines small capitalization companies as those whose market capitalizations are similar to the market capitalizations of companies in the Russell 2000® Value Index. These equity securities will consist primarily of value common stocks, but may also include preferred stock and other securities convertible into equity securities. The Fund's purchase of equity securities may include common stocks that are part of initial public offerings.

In selecting equity securities, the Fund' s investment subadvisor, BlackRock Financial Management, Inc. (BlackRock), searches for those companies that appear to be undervalued or trading below their true worth, and examines such features as a firm's financial condition, business prospects, competitive position and business strategy. BlackRock looks for companies that appear likely to come back into favor with investors, for reasons that may range from good prospective earnings or strong management teams to new products or services. The Fund may also invest in other securities, such as large cap stocks or growth stocks.

The Fund will typically sell a stock when it reaches an acceptable price, its fundamental factors have changed or it has performed below BlackRock's expectations. The Fund may also sell a security to take advantage of more attractive investment opportunities or to raise cash.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Small Cap Value Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
equity securities of small capitalization companies may be subject to greater price volatility due to, among other things, such companies' small size, limited product lines, limited access to financing sources and limited management depth
the value of a security believed by BlackRock to be undervalued may never reach what BlackRock believes is its full value, or such security's value may decrease
the mix of securities in the Portfolio, particularly the relative weightings in, and exposure to, different sectors and industries
the earnings performance, credit quality and other conditions of the companies whose securities the Portfolio holds
BlackRock's skill in evaluating and selecting securities for the Portfolio
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

products offered may fail to sell as anticipated
a period of unprofitability may be experienced before a company develops the expertise and clientele to succeed in an industry
the company may never achieve profitability
economic, market and technological factors may cause the new industry itself to lose favor with the public

The Fund may invest in foreign securities, which present additional risks such as currency fluctuations and political or economic conditions affecting the country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Small Cap Value Fund seeks to achieve its investment objective over longer rather than shorter periods of time, and is designed for investors seeking long-term focus. You should consider whether the Fund fits your particular investment objectives.

Effective January 31, 2005, BlackRock, Inc. completed its acquisition of State Street Research & Management, the former subadvisor to Ivy Small Cap Value Fund. At a meeting held January 27, 2005, shareholders of Ivy Small Cap Value Fund approved a new investment subadvisory agreement between IICO and BlackRock Financial Management, Inc., an indirect wholly-owned subsidiary of BlackRock, Inc.

Performance

Ivy Small Cap Value Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of a broad measure of market performance and a peer group average. For periods prior to December 8, 2003, the performance shown below is the performance of the Class A shares of Advantus Venture Fund which along with its other classes of shares was reorganized on December 8, 2003 into Class A shares of Ivy Small Cap Value Fund. The Fund would have had substantially similar annual returns because the shares would have been invested in the same portfolio of securities, but would differ to the extent that the Fund has different expenses. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy Small Cap Value Fund. If those expenses were reflected, performance shown below would differ.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1998	-7.30%
	1999	-3.93%
	2000	26.51%
	2001	15.98%
	2002	-18.68%
	2003	50.82%
	2004	15.75%

In the period shown in the chart, the highest quarterly return was 22.35% (the second quarter of 2003) and the lowest quarterly return was -26.24% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 0.40%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

					Life
			1 Year	5 Years	of Class
			------	-----------	-----------
Class A (began on 1-31-1997)¹
	Before Taxes		9.10%	14.44%	10.97%
	After Taxes on Distributions		7.86%	13.14%	9.62%
	After Taxes on Distributions
		and Sale of Fund Shares	7.55%	12.21%	9.04%
Class B (began on 12-8-03)
		Before Taxes	10.26%	15.05%
Class C (began on 12-8-03)
		Before Taxes	14.70%	19.19%
Class Y (began on 12-8-03)
		Before Taxes	15.94%	20.47%
Index
	Russell 2000 Value Index²		22.25%	17.29%	13.13%³
	Lipper Small-Cap Value Funds
		Universe Average⁴	20.87%	16.22%	12.19%³

¹For periods prior to December 8, 2003, performance shown is that of the Advantus Venture Fund, the predecessor to Ivy Small Cap Value Fund, restated to reflect current sales charges applicable to Class A of the Ivy Small Cap Value Fund. Class A shares of Ivy Small Cap Value Fund would generally have had substantially similar returns to Class A shares of the Advantus Venture Fund because they would have been invested in the same portfolio of securities, although returns would be different to the extent that expenses for Class A shares of the Advantus Venture Fund differ from expenses for Class A shares of the Ivy Small Cap Value Fund.

²Reflects no deduction for fees, expenses or taxes.

³Index comparison begins on January 31, 1997.

⁴Net of fees and expenses.

Fees and Expenses

Ivy Small Cap Value Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.85%	0.85%	0.85%	0.85%
		Distribution and Service (12b-1) Fees	0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.67%	1.17%	0.80%	0.44%
	Total Annual Fund Operating Expenses		1.77%	3.02%	2.65%	1.54%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$745	$1,100	$1,479	$2,539
Class B Shares	705	1,233	1,687	3,043¹
Class C Shares	268²	823	1,405	2,983
Class Y Shares	157	486	839	1,834

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$745	$1,100	$1,479	$2,539
Class B Shares	305	933	1,587	3,043¹
Class C Shares	268	823	1,405	2,983
Class Y Shares	157	486	839	1,834

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares eight years after the month in which the shares were purchased.

Ivy Value Fund

An Overview of the Fund

Objective

To provide long-term accumulation of capital.

Principal Strategies

Ivy Value Fund seeks to achieve its objective by investing in the common stocks of primarily large-cap U.S. and foreign companies. The Fund seeks to invest in stocks that are, in the opinion of IICO, undervalued relative to the true value of the company, and/or are out of favor in the financial markets but have a favorable outlook for capital appreciation. Although the Fund typically invests in large-cap companies, it may invest in securities of any size company.

Principal Risks of Investing in the Fund

A variety of factors can affect the investment performance of Ivy Value Fund. These include:

securities selected for the Fund may not perform as well as the securities held by other mutual funds with investment objectives that are similar to those of the Fund
the value of a security believed by IICO to be undervalued may never reach what IICO believes is its full value, or such security's value may decrease
the earnings performance, credit quality and other conditions of the companies whose securities the Fund holds
IICO's skill in evaluating and selecting securities for the Fund
adverse stock and bond market conditions, sometimes in response to general economic or industry news, that may cause the prices of the Fund's holdings to fall as part of a broad market decline

The value of foreign securities may be subject to greater volatility than domestic securities due to factors such as currency fluctuations and political or economic conditions affecting the foreign country.

For more information about the Fund's principal investment strategies and risks, please see "Additional Information About Principal Investment Strategies, Other Investments and Risks."

Who May Want to Invest

Ivy Value Fund seeks to achieve its investment objective over longer rather than shorter periods of time, and is designed for investors seeking long-term focus. You should consider whether the Fund fits your particular investment objectives.

Performance

Ivy Value Fund

The bar chart and performance table below provide some indication of the risks of investing in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns compare with those of a broad measure of market performance and a peer group average. For periods prior to December 8, 2003, the performance shown below is the performance of the Class A shares of Advantus Cornerstone Fund which along with its other classes of shares was reorganized on December 8, 2003 into Class A shares of Ivy Value Fund. The Fund would have had substantially similar annual returns because the shares would have been invested in the same portfolio of securities, but would differ to the extent that the Fund has different expenses. Performance has not been restated to reflect the estimated annual operating expenses of the Ivy Value Fund. If those expenses were reflected, performance shown below would differ.

Performance results include the effect of expense reduction arrangements. If those arrangements had not been in place, the performance results would have been lower.

CHART OF YEAR-BY-YEAR RETURNS

as of December 31 each year

	1995	32.93%
	1996	30.14%
	1997	21.08%
	1998	0.70%
	1999	0.02%
	2000	-2.21%
	2001	-10.81%
	2002	-15.71%
	2003	26.73%
	2004	14.14%

In the period shown in the chart, the highest quarterly return was 16.17% (the second quarter of 2003) and the lowest quarterly return was -18.54% (the third quarter of 2002). The Class A return for the year through June 30, 2005 was 1.53%.

Average Annual Total Returns

After-tax returns are shown only for Class A shares. After-tax returns for other classes may vary.

AVERAGE ANNUAL TOTAL RETURNS

as of December 31, 2004

			1 Year	5 Years	10 Years
			------	-----------	-----------
Class A¹
	Before Taxes		7.58%	0.08%	7.79%
	After Taxes on Distributions		7.47%	-0.09%	6.47%
	After Taxes on Distributions
		and Sale of Fund Shares	5.09%	0.01%	6.20%
Class B (began on 12-8-03)
		Before Taxes	8.93%	12.65%
Class C (began on 12-8-03)
		Before Taxes	13.14%	16.58%
Class Y (began on 12-8-03)
		Before Taxes	14.22%	17.72%
Index
	Russell 1000 Value Index²		16.48%	5.25%	13.82%
	Lipper Large-Cap Value Funds
		Universe Average³	11.94%	3.35%	11.31%

¹For periods prior to December 8, 2003, performance shown is that of the Advantus Cornerstone Fund, the predecessor of Ivy Value Fund, restated to reflect current sales charges applicable to Class A shares of the Ivy Value Fund. Class A shares of Ivy Value Fund would generally have had substantially similar returns to Class A shares of the Advantus Cornerstone Fund because they would have been invested in the same portfolio of securities, although returns would be different to the extent that expenses for Class A shares of the Advantus Cornerstone Fund differ from expenses for Class A shares of Ivy Value Fund.

²Reflects no deduction for fees, expenses or taxes.

³Net of fees and expenses.

Fees and Expenses

Ivy Value Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund:

Shareholder Fees
(fees paid directly from			Class A	Class B	Class C	Class Y
your investment)			--------	--------	--------	--------

	Maximum Sales Charge (Load)
		Imposed on Purchases
		(as a percentage of offering price)	5.75%	None	None	None

	Maximum Deferred Sales Charge (Load)¹
		(as a percentage of lesser of amount
		invested or redemption value)	None²	5.00%	1.00%	None

	Redemption fee/exchange fee
		(as a percentage of amount
		redeemed, if applicable)³	2.00%	2.00%	2.00%	2.00%

Annual Fund Operating Expenses
		(expenses that are	Class A	Class B	Class C	Class Y
		deducted from Fund assets)	------	------	------	------

	Management Fees		0.70%	0.70%	0.70%	0.70%
	Distribution and Service (12b-1) Fees		0.25%	1.00%	1.00%	0.25%
	Other Expenses		0.52%	0.82%	0.73%	0.39%
	Total Annual Fund Operating Expenses		1.47%	2.52%	2.43%	1.34%

²A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

³Shares redeemed or exchanged within fewer than five days of purchase are assessed a 2.00% redemption/exchange fee.

Example

If shares are redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$716	$1,013	$1,332	$2,231
Class B Shares	655	1,085	1,440	2,598¹
Class C Shares	246²	758	1,296	2,766
Class Y Shares	136	425	734	1,613

If shares are not redeemed
at end of period:	1 Year	3 Years	5 Years	10 Years
Class A Shares	$716	$1,013	$1,332	$2,231
Class B Shares	255	785	1,340	2,598¹
Class C Shares	246	758	1,296	2,766
Class Y Shares	136	425	734	1,613

¹Reflects annual operating expenses of Class A shares after conversion of Class B shares into Class A shares 8 years after the month in which the shares were purchased.

Additional Information About Principal Investment Strategies, Other Investments and Risks

Ivy Asset Strategy Fund: The Fund seeks to achieve its objective of high total return over the long term by allocating its assets primarily among a diversified portfolio of stocks, bonds, and short-term instruments. There is no guarantee, however, that the Fund will achieve its objective.

Allocating assets among different types of investments allows the Fund to take advantage of opportunities wherever they may occur, but also subjects the Fund to the risks of a given investment type. Stock values generally fluctuate in response to the activities of individual companies and general market and economic conditions. The values of bonds and short-term instruments generally fluctuate due to changes in interest rates and due to the credit quality of the issuer. The Fund may also invest up to 100% of its assets in foreign securities.

IICO regularly reviews the Fund's allocation of assets and makes changes to favor investments that it believes provide the best opportunity to achieve the Fund's objective. Although IICO uses its expertise and resources in choosing investments and in allocating assets, IICO's decisions may not always be beneficial to the Fund.

Generally, the mix of assets in the Fund will change from time to time depending on IICO's assessment of the market for each investment type. Some types of investments, such as indexed securities, may fall into more than one category.

IICO tries to balance the Fund's investment risks against potentially higher total returns by reducing the stock allocation during stock market down cycles and typically increasing the stock allocation during periods of strongly positive market performance. Generally, IICO makes asset shifts gradually over time. IICO considers various factors when it decides to sell a security, such as an individual security's performance and/or if it is an appropriate time to vary the Fund's mix.

The Fund may also seek to reduce or hedge the risks of investing in certain gold-related securities by investing in options on gold or in futures contracts on gold.

As a temporary defensive measure, the Fund may increase its holdings in bonds or short-term instruments when IICO believes that there is a potential bear market, prolonged downturn in stock prices or significant loss in stock value; the Fund may also invest in derivative instruments for both defensive and speculative purposes. IICO may, as a temporary defensive measure, invest up to all of the Fund's assets in:

money market instruments rated in one of the two highest rating categories by any nationally recognized statistical rating organization (NRSRO), or unrated securities judged by IICO to be of equivalent quality
precious metals

Although IICO may seek to preserve appreciation in the Fund by taking a temporary defensive position, doing so may prevent the Fund from achieving its investment objective.

Risks. An investment in Ivy Asset Strategy Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Extension Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Large Company Risk
Low-rated Securities Risk
Market Risk
Mid Size Company Risk
Prepayment Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities and other instruments in which the Fund may invest, is provided in the Statement of Additional Information (SAI).

Ivy Balanced Fund: The Fund seeks to achieve its primary objective of providing current income, and its secondary objective of long-term appreciation of capital, by investing primarily in a diversified mix of stocks, debt securities and short-term instruments, depending on market conditions. There is no guarantee, however, that the Fund will achieve its objectives.

The Fund owns common stocks in order to provide possible appreciation of capital and some dividend income and the Fund invests a portion of its total assets in either debt securities or preferred stocks, or both, in order to provide income and relative stability of capital. The Fund may also invest in convertible securities. The Fund ordinarily invests at least 25% of its total assets in fixed income securities.

In its equity investments, the Fund invests primarily in medium to large, well-established companies, that typically issue dividend producing securities. The majority of the Fund's debt holdings are either U.S. government securities or investment grade corporate bonds, that include bonds rated BBB- and higher by S&P or Baa3 and higher by Moody's or, if unrated, deemed by IICO to be of comparable quality. The Fund has no limitations on the range of maturities of debt securities in which it may invest. The Fund may also invest in foreign securities.

IICO may look at a number of factors in selecting securities for the Fund. For equity investments, it may emphasize a blend of value and growth potential. For value securities, IICO looks for undervalued companies whose asset value or earnings power is not reflected in the price of their stock. In selecting growth securities, it seeks to identify securities whose earnings are likely to grow faster than the economy. In selecting debt securities for the Fund, IICO seeks high-quality securities with minimal credit risk.

Generally, in determining whether to sell an equity security, IICO uses a similar analysis that it uses when buying securities in order to determine if the equity security is still undervalued or has ceased to offer the desired growth potential. In determining whether to sell a debt security, IICO considers whether the debt security continues to maintain minimal credit risk. IICO may also sell a security if the security ceases to produce income or otherwise to take advantage of attractive investment opportunities and/or to raise cash.

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities that may be considered equivalent to owning cash because of their safety and liquidity. By taking a temporary defensive position, however, the Fund may not achieve its investment objectives.

Risks. An investment in Ivy Balanced Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Extension Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Prepayment Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Capital Appreciation Fund (formerly, Ivy Tax-Managed Equity Fund): The Fund seeks to achieve its objective of long-term growth of capital while minimizing distributions of taxable gains and income to shareholders by investing primarily in a diversified portfolio of common stocks of U.S. and foreign companies that IICO considers to be high in quality and attractive in their long-term investment potential. The Fund seeks stocks that are favorably priced in relation to their fundamental value and will, likely, grow over time. There is no guarantee, however, that the Fund will achieve its objective.

The Fund emphasizes growth stocks; however, it may also invest in value stocks. As well, the Fund may invest in preferred stocks and debt securities that are mostly of investment grade. The Fund may also invest up to 25% of its total assets in foreign securities.

The Fund attempts to achieve high after-tax returns for its shareholders by balancing investment considerations and tax considerations. The Fund seeks to minimize income distributions and distributions of realized net short-term gains (taxed as ordinary income), as well as distributions of realized net long-term gains. The Fund seeks to achieve returns primarily in the form of price appreciation (not subject to current tax until shares are redeemed).

IICO ordinarily uses one or more of the following strategies in its management of the Fund:

a long-term, low turnover approach to investing
an emphasis on lower-yielding securities to require distribution of little, if any, taxable income
an attempt to avoid net realized short-term gains
in the sale of portfolio securities, selection of the most tax-favored lots
selective tax-advantaged hedging techniques as an alternative to taxable sales

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities, including commercial paper and short-term U.S. government securities, and/or preferred stocks. By taking a temporary defensive position, the Fund may not achieve its investment objective.

Notwithstanding the Fund's use of tax-management investment strategies, the Fund may have taxable income and may recognize capital gains from time to time. In addition, investors purchasing Fund shares when the Fund has large undistributed realized capital gains could receive a significant part of the purchase price of their shares back as a taxable capital gain distribution. Over time, securities with unrealized gains may comprise a substantial portion of the Fund's assets. As well, state or Federal tax laws or regulations may be amended at any time and may include adverse changes to applicable tax rates or capital gain holding periods.

Risks. An investment in Ivy Capital Appreciation Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Core Equity Fund: The Fund seeks to achieve its objectives of capital growth and income by investing, under normal market conditions, in common stocks of large, high quality U.S. and to a lesser extent foreign, companies that are well-known, have been consistently profitable and have dominant positions in their industries. It is possible that the universe of appropriate income producing stocks may be limited and may, from time to time, decrease. As such, there is no guarantee, however, that the Fund will achieve its objectives.

When IICO views stocks with high yields as less attractive than other common stocks, the Fund may hold lower-yielding common stocks because of their prospects for appreciation. When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities (typically, investment grade), including commercial paper and short-term U.S. government securities, and/or preferred stocks. However, by taking a temporary defensive position the Fund may not achieve its investment objectives.

Risks. An investment in Ivy Core Equity Fund is subject to various risks, including the following:

Company Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk

Ivy Cundill Global Value Fund: The Fund seeks to achieve its objective of long-term capital growth by investing primarily in the equity securities of companies throughout the world. There is no guarantee, however, that the Fund will achieve its objective.

The investment approach of Cundill, the Fund's subadvisor, is based on a contrarian "value" philosophy. Cundill looks for securities that are trading below their estimated intrinsic value. To determine the intrinsic value of a particular company, Cundill focuses primarily on the company's financial statements. Cundill also considers factors such as earnings, dividends, business prospects, management capabilities and potential catalysts (such as a change in management) to realize shareholder value. A security is purchased when the price reflects a significant discount to Cundill's estimate of the company's intrinsic value. Given the bottom-up or company-specific approach, Cundill does not forecast economies or corporate earnings.

The Fund may from time to time take a temporary defensive position, and invest without limit in U.S. government securities, investment-grade debt securities, and cash and cash equivalents such as commercial paper, short term notes and other money market securities. However, by taking a temporary defensive position the Fund may not achieve its investment objectives.

Risks. An investment in Ivy Cundill Global Value Fund is subject to various risks, including the following:

Company Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Market Risk
Mid Size Company Risk
Securities Lending Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Dividend Income Fund: The Fund seeks to achieve its objectives of income and long-term capital growth by investing primarily in dividend-paying common stocks that IICO believes also demonstrate favorable prospects for long-term capital growth. There is no guarantee, however, that the Fund will achieve its objectives.

Although major changes tend to be infrequent, the Board of Trustees of the Fund may change the Fund's investment objectives without seeking shareholder approval.

Common stocks are shares of a corporation or other entity that entitle the holder to a pro rata share of the profits of the corporation, if any, without preference over any other class of securities, including such entity's debt securities, preferred stock and other senior equity securities. Common stock usually carries with it the right to vote and frequently an exclusive right to do so. Preferred stock generally has a preference as to dividends and liquidation over an issuer's common stock but ranks junior to debt securities in an issuer's capital structure. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer's board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions. The ability of common stocks and preferred stocks to generate income is dependent on the earnings and continuing declaration of dividends by the issuers of such securities.

A convertible security is a bond, debenture, note, preferred stock, warrant or other security that may be converted into or exchanged for a prescribed amount of common stock or other security of the same or different issuer or into cash within a particular period of time at a specified price or formula. A convertible security generally entitles the holder to receive interest paid or accrued on debt securities or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities generally have characteristics similar to both debt and equity securities. The value of convertible securities tends to decline as interest rates rise and, because of the conversion feature, tends to vary with fluctuations in the market value of the underlying securities. Convertible securities ordinarily provide a stream of income with generally higher yields than those of common stock of the same or similar issuers. Convertible securiti es generally rank senior to common stock in a corporation's capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities generally do not participate directly in any dividend increases or decreases of the underlying securities although the market prices of convertible securities may be affected by any such dividend changes or other changes in the underlying securities.

For federal income tax purposes, long-term capital gains generally are taxed at a maximum rate of 15% for noncorporate shareholders. As a result of changes made by the Jobs and Growth Tax Relief Reconciliation Act of 2003, "qualified dividend income" received by noncorporate shareholders is taxed as net capital gain. IICO believes that the tax treatment of the qualified dividend income may benefit companies that regularly issue dividends.

While the Fund invests primarily in dividend-paying equity securities, it may also invest up to 20% of its net assets in debt securities in seeking to achieve its objectives. To the extent the Fund invests in debt securities, the Fund intends to primarily invest in investment-grade debt securities. The Fund invests primarily in domestic securities, but it may invest up to 25% of its total assets in foreign securities.

At times, when IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities including short-term cash equivalent securities. By taking a temporary defensive position, however, the Fund may not achieve its objectives.

Risks. An investment in Ivy Dividend Income Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk

Ivy European Opportunities Fund: The Fund seeks to achieve its objective of long-term capital growth by investing primarily in the equity securities of companies located or otherwise doing business in European countries and covering a broad range of economic and industry sectors. There is no guarantee, however, that the Fund will achieve its objectives.

Henderson, the Fund's subadvisor, follows a "bottom-up" approach to investing, which focuses on higher-quality companies that offer prospects for long-term earnings growth. Company selection is generally based on an analysis of a wide range of financial indicators (such as growth, earnings, cash, book and enterprise value), as well as factors such as market position, competitive advantage and management strength. Country and sector allocation decisions are driven by the company selection process.

The Fund may also invest a significant portion of its assets in debt securities of European issuers, up to 20% of which are considered below investment grade (commonly referred to as "high yield" or "junk" bonds).

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of Henderson as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

Risks. An investment in Ivy European Opportunities Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Initial Public Offering Risk
Large Company Risk
Low-rated Securities Risk
Market Risk
Mid Size Company Risk
Securities Lending Risk
Small Company Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Global Natural Resources Fund: The Fund seeks to achieve its objective of long-term growth by investing primarily in the equity securities of companies throughout the world that own, explore or develop natural resources and other basic commodities or that supply goods and services to such companies. There is no guarantee, however, that the Fund will achieve its objective.

The Fund's subadvisor, MFC, targets, for investment, well-managed companies that are expected to increase shareholder value through successful exploration and development of natural resources, balancing the Fund's portfolio with low cost, low debt producers that have outstanding asset bases, and positions that are based on anticipated commodity price trends. MFC places additional emphasis on sectors that are out of favor but appear to offer the most significant recovery potential over a one to three year period. MFC systematically reviews all investment decisions and may allow cash reserves to build up when valuations seem unattractive. MFC attempts to minimize risk through diversifying the Fund's portfolio by commodity, country, issuer, and market capitalization of companies; however, such diversification may not necessarily reduce fund volatility.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of MFC as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

The Fund may from time to time take a temporary defensive position, and invest without limitation in U.S. government securities, investment-grade debt securities, and cash and cash equivalents such as commercial paper, short term notes and other money market securities. However, by taking a temporary defensive position the Fund may not achieve its investment objectives.

The Fund can invest in precious metals and other physical commodities. Commodities trading is generally considered speculative because of the significant potential for investment loss. Among the factors that could affect the value of the Fund's investments in commodities are cyclical economic conditions, sudden political events and adverse international monetary policies. Markets for precious metals and other commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. The Fund may also pay more to store and accurately value its commodity holdings than it does with its other portfolio investments.

Risks. An investment in Ivy Global Natural Resources Fund is subject to various risks, including the following:

Company Risk
Concentration Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy International Fund: The Fund seeks to achieve its principal objective of long-term capital growth by investing primarily in equity securities principally traded in European, Pacific Basin and Latin American markets. There is no guarantee, however, that the Fund will achieve its objective.

The Fund invests in a variety of economic sectors and industry segments to reduce the effects of price volatility in any one area, and usually is invested in at least three different countries. IICO focuses on expanding foreign economies and companies that generally have at least $1 billion in capitalization at the time of investment and a solid history of operations. Individual securities are selected on the basis of various indicators (such as management, cash flow, assets and competitive market position) and are reviewed for fundamental financial strength.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of IICO as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

Risks. An investment in Ivy International Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy International Balanced Fund: The Fund seeks to achieve its objective of a high level of total return by investing in equity and debt securities issued by international companies and governmental agencies of any size. Normally, the Fund invests approximately 50% to 70% of its assets in international equity securities and approximately 30% to 50% of its assets in international investment-grade debt securities. There is no guarantee, however, that the Fund will achieve its objective.

The Fund invests primarily in securities of companies or governments in developed foreign markets. However, the Fund may also invest up to 20% of its total assets in equity securities of companies located in developing or emerging markets. In addition, the Fund may invest up to 10% of its total assets in debt securities of companies or governments located in developing or emerging markets. (For purposes of the investment percentages described in the preceding sentences, collateral received in connection with securities lending shall not be considered Fund assets.) Under normal circumstances, the Fund will maintain investments in at least three foreign countries.

Equity securities generally entitle the holder to participate in a company's general operating results. These include common stock, preferred stock, warrants or rights to purchase such securities. In selecting these equity securities, Templeton, the Fund's subadvisor, conducts a bottom-up, company-by-company analysis, rather than focusing on a specific industry or economic sector. Templeton concentrates primarily on the market price of a company's securities relative to its view regarding the company's long-term earnings potential; that is, Templeton seeks securities that it believes are selling at a discount. A company' s historical value measures, including price/earnings ratios, profit margins and liquidation value, will also be considered.

Debt securities represent an obligation of the issuer to repay a loan of money to it, and generally, provide for the payment of interest. These include bonds, notes and debentures; commercial paper; time deposits; bankers' acceptances; and structured investments which are more fully described in the SAI. In selecting debt securities Templeton evaluates current, as well as expected future trends in, interest rates and general economic conditions, and then attempts to identify those securities and issuers which, in its judgment, are likely to perform well in such circumstances.

The Fund may also invest a lesser portion of its assets in closed-end investment companies, restricted and illiquid securities, U.S. government and domestic investment-grade debt securities, American Depositary Receipts, European Depositary Receipts, securities and index futures contracts, forward foreign currency exchange contracts, exchange-traded foreign currency futures contracts, securities of other mutual funds, options (the Fund may purchase and sell put and call options), repurchase agreement transactions, securities purchased on a when-issued or forward commitment basis and money market securities. To generate additional income, the Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks and other institutions.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent Templeton's judgment as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

In an attempt to respond to adverse market, economic, political or other conditions, the Fund may invest for temporary defensive purposes, and without limit, in various short-term cash and cash equivalent items. By taking a temporary defensive position, the Fund may not always achieve its investment objective.

Risks. An investment in Ivy International Balanced Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Extension Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Prepayment Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy International Growth Fund: The Fund seeks to achieve its primary objective of long-term capital appreciation, and its secondary objective of current income, by investing primarily in a diversified portfolio of common stocks of growth-oriented foreign issuers. Growth securities are those whose earnings, IICO believes, are likely to have strong growth over several years. The Fund may invest in any geographic area and within various sectors. There is no guarantee, however, that the Fund will achieve its objectives.

The Fund may also invest, to a lesser extent, in preferred stocks and debt securities. The debt securities may be of any maturity and will typically be investment grade.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of such derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of IICO as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

When IICO believes that a temporary defensive position is desirable, it may invest up to all of the Fund's assets in debt securities, including commercial paper and short-term U.S. government securities, and/or preferred stocks; it may avoid investment in volatile emerging markets and increase investments in more stable, developed countries and industries; it may use forward currency contracts to hedge specific foreign currencies; and it may also invest up to all of the Fund's assets in domestic securities. By taking a temporary defensive position, the Fund may not achieve its investment objectives.

Risks. An investment in Ivy International Growth Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk

Ivy International Value Fund: The Fund seeks to achieve its primary objective of long-term capital growth by investing primarily in equity securities principally traded in European, Pacific Basin and Latin American markets. There is no guarantee, however, that the Fund will achieve its objective.

The Fund invests in a variety of economic sectors and industry segments to reduce the effects of price volatility in any one area. IICO seeks out rapidly expanding foreign economies and companies that generally have at least $1 billion in capitalization at the time of investment and a solid history of operations. Other factors that IICO considers in selecting particular countries include long-term economic growth prospects, anticipated inflation levels, and the effect of applicable government policies on local business conditions. The Fund is managed using a value approach, which focuses on financial ratios such as price/earnings, price/book value, price/cash flow, dividend yield and price/replacement cost. Securities purchased are believed to be attractively valued on one or more of these measures relative to a broad universe of comparable securities.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of the Fund's investment manager as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

Risks. An investment in Ivy International Value Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Large Cap Growth Fund: The Fund seeks to achieve its objective of appreciation of your investment through a diversified holding of securities, primarily those issued by large to medium sized, higher-quality U.S. and foreign companies that IICO believes have both appreciation possibilities and sustainable competitive advantage. There is no guarantee, however, that the Fund will achieve its objective.

The Fund invests primarily in common stocks but may also own, to a lesser extent, preferred stocks, convertible securities and debt securities, typically of investment grade and of any maturity. As well, the Fund may invest up to 25% of its total assets in foreign securities.

At times, as a temporary defensive measure, the Fund may invest up to all of its assets in debt securities, including commercial paper and short-term U.S. government securities (which may include money market instruments held as cash reserves), and/or preferred stocks. The Fund may also use options and futures contracts for temporary defensive purposes. By taking a temporary defensive position the Fund may not achieve its investment objective.

Risks. An investment in Ivy Large Cap Growth Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk

Ivy Mid Cap Growth Fund: The Fund seeks to achieve its objective of growth of your investment by investing primarily in a diversified portfolio of common stocks of U.S. and foreign companies whose market capitalizations are within the range of capitalizations of companies comprising the Russell Midcap® Growth Index (Russell Midcap) and that IICO believes offer above-average growth potential. For this purpose, the Fund considers a company's capitalization at the time the Fund acquires the company's securities, and the company need not be listed in the Russell Midcap. Companies whose capitalization falls outside the range of the Russell Midcap after purchase continue to be considered medium capitalization companies for purpose of the Fund's investment policy. There is no guarantee, however, that the Fund will achieve its objective.

In addition to common stocks, the Fund may invest in convertible securities, preferred stocks and debt securities of any maturity and mostly of investment grade. The Fund may also invest up to 25% of its total assets in foreign securities.

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities (including commercial paper, cash and cash equivalents, and short-term securities issued by the U.S. government or its agencies or instrumentalities), preferred stocks or both. As well, the Fund may choose to invest in companies whose sales and earnings growth are generally stable through a variety of economic conditions. The Fund may also use options and futures contracts for temporary defensive purposes. By taking a temporary defensive position the Fund may not achieve its investment objective.

Risks. An investment in Ivy Mid Cap Growth Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Market Risk
Mid Size Company Risk
Small Company Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Pacific Opportunities Fund: The Fund seeks to achieve its objective of long-term capital growth by investing primarily in equity securities of companies traded mainly on markets in the Pacific region, issued by companies organized under the laws of a Pacific region country or issued by any company with more than half of its business in the Pacific region. Examples of Pacific region countries include China, Hong Kong, Malaysia, South Korea, Taiwan, Singapore, Thailand, Indonesia, Australia and India. There is no guarantee, however, that the Fund will achieve its objective.

The Fund invests in a minimum of three different countries, and typically in at least six different countries, and does not intend to concentrate its investments in any particular industry. The countries in which the Fund invests are selected on the basis of a mix of factors that include long-term economic growth prospects, anticipated inflation levels, and the effect of applicable government policies on local business conditions. The Fund is managed using an approach which focuses on financial ratios such as price/earnings, price/book value, price/cash flow, dividend yield and price/replacement cost. Securities purchased are believed to be attractively valued on one or more of these measures relative to a broad universe of comparable securities.

The Fund may, but is not required to, use a range of derivative investment techniques to hedge various market risks (such as interest rates, currency exchange rates, and broad or specific equity or fixed-income market movements). The use of these derivative investment techniques involves a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent the judgment of IICO as to certain market movements is incorrect, the risk of loss is greater than if the derivative technique(s) had not been used.

Risks. An investment in Ivy Pacific Opportunities Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Currency Risk
Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Real Estate Securities Fund: The Fund seeks to achieve its objective of total return through a combination of capital appreciation and current income by investing primarily in real estate securities and real estate-related securities. The Fund does not invest directly in real estate. There is no guarantee, however, that the Fund will achieve its objective.

"Real estate securities" include securities offered by issuers that receive at least 50% of their gross revenue from the construction, ownership, management, financing or sale of residential, commercial or industrial real estate. Real estate securities issuers typically include real estate investment trusts (REITs), real estate operating companies (REOCs), real estate brokers and developers, real estate managers, hotel franchisers, real estate holding companies and publicly traded limited partnerships.

"Real estate-related securities" include securities issued by companies primarily engaged in businesses that sell or offer products or services that are closely related to the real estate industry. Real estate-related securities issuers typically include construction and related building companies, manufacturers and distributors of building supplies, brokers, financial institutions that issue or service mortgages and resort companies.

Most of the Fund's real estate securities portfolio will consist of securities issued by REITs and REOCs that are listed on a securities exchange or traded over-the-counter. A REIT is a corporation or trust that invests in fee or leasehold ownership of real estate, mortgages or shares issued by other REITs. REITs may be characterized as equity REITs (i.e., REITs that primarily invest in fee ownership and leasehold ownership of land), mortgage REITs (i.e., REITs that primarily invest in mortgages on real estate and other real estate debt) or hybrid REITs which invest in both fee and leasehold ownership of land and mortgages. The Fund mostly invests in equity REITs but also invests lesser portions of its assets in mortgage REITs and hybrid REITs. A REIT that meets the applicable requirements of the Internal Revenue Code of 1986, as amended (Code), may deduct dividends paid to shareholders, effectively eliminating any corporate level federal income tax. As a result, REITs distribute a larger portion of their earnings to investors than other corporate entities subject to federal corporate tax. A REOC is typically structured as a "C" corporation under the Code and does not have the favorable tax treatment that is accorded a REIT.

The Fund may invest in securities of issuers of any size, including issuers with small, medium or large market capitalizations. The Fund may also invest a limited portion of its assets in foreign securities. Generally, in selecting securities, Advantus Capital, the Fund's subadvisor, considers factors such as an issuer's financial condition, financial performance, quality of management, policies and strategies, real estate properties and competitive market position. In selecting equity securities for the Fund, Advantus Capital assesses an issuer's potential for sustainable earnings growth over time.

In addition, the Fund may invest up to 20% of its assets in securities issued by companies outside of the real estate industry. The Fund may also invest in non-real estate-related equity securities, convertible debt securities, investment-grade fixed income securities, securities of other mutual funds (open-end and closed), exchange-traded funds, repurchase agreement transactions, restricted and illiquid securities, stock index futures contracts, options (the Fund may purchase and sell put and call options), American Depositary Receipts, securities purchased on a when issued or forward commitment basis, and money market securities. To generate additional income, the Fund may lend securities representing up to one-third of the value of its total assets to broker-dealers, banks and other institutions.

In an attempt to respond to adverse market, economic, political or other conditions, the Fund may invest for temporary defensive purposes in various short-term cash and cash equivalent items. By taking a temporary defensive position, the Fund may not always achieve its investment objective.

An investment in the Ivy Real Estate Securities Fund may encounter the risk of greater volatility, due to the limited number of issuers of real estate and real estate-related securities, than an investment in portfolio of securities selected from a greater number of issuers.

As well, the value of the Fund's investments may decrease due to fluctuations in rental income, overbuilding and increased competition, casualty and condemnation losses, environmental costs and liabilities including changes in the Code or failure to meet Code requirements, extended vacancies of property, lack of available mortgage funds, government regulation and limitations, increases in property taxes, cash flow dependency, declines in real estate value, physical depreciation of buildings, inability to obtain project financing, increased operating costs and changes in general or local economic conditions.

Risks. An investment in Ivy Real Estate Securities Fund is subject to various risks, including the following:

Company Risk
Concentration Risk
Credit Risk
Diversification Risk
Extension Risk
Foreign Securities Risk
Income Risk
Interest Rate Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Prepayment Risk
REIT-Related Risk
REOC-Related Risk
Securities Lending Risk
Small Company Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Science and Technology Fund: The Fund seeks to achieve its objective of long-term capital growth by investing primarily in the equity securities of science and technology companies. Science and technology companies are companies whose products, processes or services, in IICO's opinion, are being or are expected to be significantly benefited by the use or commercial application of scientific or technological discoveries. As well, the Fund may invest in companies that utilize science and/or technology to improve their existing business even though the business, itself, is not within the science and technology industries. There is no guarantee, however, that the Fund will achieve its objective.

The Fund may invest in, but is not limited to, areas such as:

aerospace and defense electronics
biotechnology
business machines
cable and broadband access
communications equipment and software
computer software and services
computer systems
electronics and energy
electronic media
genomics
internet and internet-related services
medical devices and drugs
medical and hospital supplies and services
office equipment, supplies and services (including transaction processing services)

The Fund primarily owns common stocks; however, it may invest, to a lesser extent, in preferred stocks, debt securities and convertible securities. The Fund may invest a limited amount of its assets in foreign securities.

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in U.S. government securities or other debt securities, mostly of investment grade. The Fund may also invest in options and futures contracts for hedging purposes. By taking a temporary defensive position the Fund may not achieve its investment objective.

Risks. An investment in Ivy Science and Technology Fund is subject to various risks, including the following:

Company Risk
Concentration Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Initial Public Offering Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Small Company Risk

Ivy Small Cap Growth Fund: The Fund seeks to achieve its objective of growth of capital by investing primarily in common stocks of small cap companies that are relatively new or unseasoned, companies in their early stages of development, or smaller companies positioned in new or emerging industries where there is an opportunity for rapid growth. There is no guarantee, however, that the Fund will achieve its objective.

The Fund may occasionally invest in securities of larger companies that, in IICO's opinion, are being fundamentally changed or revitalized, have a position that is considered strong relative to the market as a whole or otherwise offer unusual opportunities for above average growth.

The Fund considers a company's capitalization at the time the Fund acquires the company's common stock. Common stock of a company whose capitalization exceeds the range of the Russell 2000® Growth Index after purchase will not be sold solely because of its increased capitalization.

In addition to common stocks, the Fund may also invest in securities convertible into common stocks, preferred stocks and debt securities that are mostly of investment grade. The Fund may invest up to 10% of its total assets in foreign securities.

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities, including commercial paper and short-term U.S. government securities, and/or preferred stocks. The Fund may also invest in more established companies, such as those with longer operating histories than many small cap companies. As well, it may increase the number of issuers in which it invests and thereby limit the Fund's position size in any particular security. By taking a temporary defensive position, the Fund may not achieve its investment objective.

Risks. An investment in Ivy Small Cap Growth Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Growth Stock Risk
Income Risk
Initial Public Offering Risk
Market Risk
Mid Size Company Risk
Small Company Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Small Cap Value Fund: The Fund seeks to achieve its objective of long-term accumulation of capital by investing primarily in various types of equity securities such as common stock, preferred stock and securities convertible into equity securities of small capitalization domestic companies and foreign issuers that are publicly traded in the United States. There is no guarantee, however, that the Fund will achieve its objective.

Although a universal definition of small capitalization companies does not exist, the Fund generally defines small capitalization companies as those whose market capitalizations are similar to the market capitalizations of companies in the Russell 2000® Value Index. Some companies may outgrow the definition of a small capitalization company after the Fund has purchased their securities. These companies continue to be considered small for purposes of the Fund' s minimum 80% allocation to small capitalization companies. From time to time, the Fund will also invest a lesser portion of its assets in securities of mid and large capitalization companies (i.e., companies with market capitalizations larger than that defined above).

In selecting value stocks and other equity securities, BlackRock, the Fund's subadvisor, primarily looks to equity securities it believes are undervalued or trading below their true worth, but that appear likely to come back into favor with investors. Undervalued securities are securities that BlackRock believes: (a) are undervalued relative to other securities in the market or currently earn low returns with a potential for higher returns, (b) are undervalued relative to the potential for improved operating performance and financial strength, or (c) are issued by companies that have recently undergone a change in management or control, or developed new products or services that may improve their business prospects or competitive position. In assessing relative value, BlackRock will consider factors such as a company's ratio of market price to earnings, ratio of market price to book value, ratio of market price to assets, ratio of market price to cash flow, estimated earnings growth rate, cash flow, yie ld, liquidation value, product pricing, quality of management and competitive market position. In seeking to achieve its investment objectives, the Fund may also invest in equity securities of companies that BlackRock believes show potential for sustainable earnings growth above the average market growth rate. The Fund's purchases of equity securities may include shares of common stock that are part of a company's initial public offering. In addition, the Fund may invest lesser portions of its assets in restricted and illiquid securities, convertible and non-convertible investment-grade and non-investment grade debt securities, securities of other mutual funds, foreign securities, warrants, repurchase agreement transactions, stock index futures contracts, options (the Fund may purchase and sell put and call options), when-issued or forward commitment transactions, index depositary receipts, and money market securities. To generate additional income, the Fund may lend securities representing up to one-thi rd of the value of its total assets to broker-dealers, banks and other institutions.

Risks. An investment in Ivy Small Cap Value Fund is subject to various risks, including the following:

Company Risk
Diversification Risk
Foreign Securities Risk
Initial Public Offering Risk
Market Risk
Mid Size Company Risk
Securities Lending Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

Ivy Value Fund: The Fund seeks to achieve its objective of long-term accumulation of capital by primarily investing, for the long term, in the common stocks of large-cap U.S. and foreign companies. The Fund seeks to invest in stocks that are, in the opinion of IICO, undervalued relative to the true value of the company, and/or are out of favor in the financial markets but have a favorable outlook for capital appreciation. The Fund may invest in foreign securities, primarily to provide additional opportunities to invest in quality overlooked growth stocks. There is no guarantee, however, that the Fund will achieve its objective.

IICO utilizes both fundamental research and quantitative analysis to identify securities for the Fund. The Fund will typically invest in core value stocks: stocks of companies in industries that have relatively lower price-to-earnings ratios than growth stocks. The Fund may also invest in growth stocks that are, in IICO's opinion, temporarily undervalued.

IICO utilizes both a top-down (assess the market environment) and a bottom-up (research individual issuers) analysis in its selection process. It considers numerous factors in its analysis of issuers and stocks, including the following:

intrinsic value of the company not reflected in stock price
historical earnings growth
future expected earnings growth
company's position in its respective industry
industry conditions
competitive strategy
management capabilities
free cash flow potential

The Fund will typically sell a stock when it reaches an acceptable price, its fundamental factors have changed or its has performed below IICO's expectations.

When IICO believes that a temporary defensive position is desirable, the Fund may invest up to all of its assets in debt securities, including commercial paper and short-term U.S. government securities, and/or preferred stocks. By taking a temporary defensive position, the Fund may not achieve its investment objective.

Risks. An investment in Ivy Value Fund is subject to various risks, including the following:

Company Risk
Credit Risk
Diversification Risk
Foreign Securities Risk
Income Risk
Large Company Risk
Market Risk
Mid Size Company Risk
Small Company Risk
Value Stock Risk

A description of these risks is set forth in Defining Risks below. Additional risk information, as well as additional information on securities in which the Fund may invest, is provided in the SAI.

All Funds

Because each Fund owns different types of investments, its performance will be affected by a variety of factors. The value of a Fund's investments and the income it generates will vary from day to day, generally reflecting changes in interest rates, market conditions, and other company and economic news. Performance will also depend on the skill of IICO or a subadvisor in selecting investments and on IICO's skill in allocating assets.

Each Fund may also invest in and use certain other types of instruments in seeking to achieve its objectives. For example, each Fund is permitted to invest in options, futures contracts, asset-backed securities and other derivative instruments if it is permitted to invest in the type of asset by which the return on, or value of, the derivative is measured. Certain types of each Fund's authorized investments and strategies, such as derivative instruments, foreign securities, junk bonds and precious metals involve special risks. Depending on how much a Fund invests or uses these strategies, these special risks may become significant.

Each Fund may actively trade securities in seeking to achieve its objectives. Factors that can lead to active trading for any fund include market volatility, a significant positive or negative development concerning a security, an attempt to maintain a fund's market capitalization target, and the need to sell a security to meet redemption activity. Actively trading securities may increase transaction costs (which may reduce performance) and increase distributions paid by the Fund, which would increase your taxable income.

Each Fund generally seeks to be fully invested. However, at times, IICO or a subadvisor may invest a portion of the Fund's assets in cash or cash equivalents if IICO or the subadvisor is unable to locate and invest in a sufficient number of securities that meet the Fund's quality, valuation and other investment requirements.

You will find more information about each Fund's permitted investments and strategies, as well as the restrictions that apply to them, in its SAI.

A description of the Funds' policies and procedures with respect to the disclosure of the Funds' securities holdings is available in the SAI.

Defining Risks

Company Risk - An individual security may perform differently than the overall market. This may be a result of specific factors such as changes in corporate profitability due to the success or failure of specific products or management strategies, or it may be due to changes in investor perceptions regarding a company.

Concentration Risk - If a Fund invests more than 25% of its total assets in a particular industry, the Fund's performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund that does not concentrate its investments in a single industry. Securities of companies within specific industries or sectors of the economy may periodically perform differently than the overall market. This may be due to changes in such things as the regulatory or competitive environment or to changes in investor perceptions regarding a sector or company.

Credit Risk - An issuer of a debt security (including mortgage-backed securities) or a REIT may not make payments on the security when due, or the other party to a contract may default on its obligation. There is also the risk that an issuer could suffer adverse changes in its financial condition that could lower the credit quality of a security. This could lead to greater volatility in the price of the security and in shares of a Fund. Also, a change in the quality rating of a debt security or a REIT security can affect the security's liquidity and make it more difficult to sell. If a Fund purchases unrated securities and obligations, it will depend on IICO's or a subadvisor's analysis of credit risk more heavily than usual.

Diversification Risk - A Fund is subject to diversification risk if the Fund may invest more than 5% of its total assets in the securities of a single issuer with respect to 25% of its total investment portfolio (a Fund is considered diversified, as defined in the Investment Company Act of 1940, as amended (1940 Act), if it does not invest more than 5% of its total assets in the securities of a single issuer with respect to 75% of its total investment portfolio). The Fund's performance may be more susceptible to a single economic, regulatory or technological occurrence than a fund with a more diversified investment portfolio.

Extension Risk - Rising interest rates could cause property owners to prepay their mortgages more slowly than expected, resulting in slower prepayments of mortgage-backed securities and real estate debt securities. This would, in effect, convert a short or medium-duration security into a longer-duration security, increasing its sensitivity to interest rate changes and causing its price to decline. Duration measures the expected price sensitivity of a fixed income security or portfolio for a given change in interest rates. For example, if interest rates rise by one percent, the value of a security or portfolio having a duration of two years generally will fall by approximately two percent.

Foreign Currency Risk -- Foreign securities may be denominated in foreign currencies. The value of a Fund's investments, as measured in U.S. dollars, may be affected unfavorably by changes in foreign currency exchange rates and exchange control regulations. Currency conversion can also be costly.

Foreign Currency Exchange Transactions and Forward Foreign Currency Contracts Risk -- The Funds may, but are not required to, use foreign currency exchange transactions and forward foreign currency contracts to hedge certain market risks (such as interest rates, currency exchange rates and broad or specific market movement). These investment techniques involve a number of risks, including the possibility of default by the counterparty to the transaction and, to the extent a Fund's judgment as to certain market movements is incorrect, the risk of losses that are greater than if the investment technique had not been used. For example, there may be an imperfect correlation between a Fund's portfolio holdings of securities denominated in a particular currency and the forward contracts entered into by the Fund. An imperfect correlation of this type may prevent the Funds from achieving the intended hedge or expose the Fund to the risk of currency exchange loss. These investment techniques also tend to l imit any potential gain that might result from an increase in the value of the hedged position.

Foreign Securities Risk - Investing in foreign securities involves a number of economic, financial and political considerations that are not associated with the U.S. markets and that could affect a Fund's performance unfavorably, depending upon prevailing conditions at any given time. For example, the securities markets of many foreign countries may be smaller, less liquid and subject to greater price volatility than those in the U.S. Foreign investing may also involve brokerage costs and tax considerations that are not usually present in the U.S. markets.

Other factors that can affect the value of a Fund's foreign investments include the comparatively weak supervision and regulation by some foreign governments of securities exchanges, brokers and issuers, and the fact that many foreign companies may not be subject to uniform accounting, auditing and financial reporting standards. It may also be difficult to obtain reliable information about the securities and business operations of certain foreign issuers. Settlement of portfolio transactions may also be delayed due to local restrictions or communication problems, which can cause a Fund to miss attractive investment opportunities or impair its ability to dispose of securities in a timely fashion (resulting in a loss if the value of the securities subsequently declines).

The value of securities issued by companies located in emerging market countries may be subject to greater volatility than foreign securities issued by companies in developed markets. Risks of investing in foreign securities issued by companies in emerging market countries include, among other things, greater social, political and economic instability, lack of liquidity and greater price volatility due to small market size and low trading volume, certain national policies that restrict investment opportunities and the lack of legal structures governing private and foreign investment and private property.

Growth Stock Risk -- Growth stocks are stocks of companies believed to have above-average potential for growth in revenue and earnings. Prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks. Growth stocks may not perform as well as value stocks or the stock market in general.

Income Risk - The Fund may experience a decline in its income due to falling interest rates.

Initial Public Offering Risk -- A Fund may not be able to sustain the positive effect on performance that may result from investments in initial public offerings (IPOs). Investments in IPOs can have a significant positive impact on the Fund's performance. The positive effect of investments of IPOs may not be sustainable because of a number of factors. The Fund may not be able to buy shares in some IPOs, or may be able to buy only a small number of shares. Also, the Fund may not be able to buy the shares at the commencement of the offering, and the general availability and performance of IPOs are dependent on market psychology and economic conditions. The relative performance impact of IPOs is also likely to decline as the Fund grows.

Interest Rate Risk - The value of a debt security, mortgage-backed security or fixed income obligation (including mortgage REITs) may decline due to changes in market interest rates. Generally, when interest rates rise, the value of such a security or obligation decreases. Conversely, when interest rates decline, the value of a debt security, mortgage-backed security or fixed income obligation (including mortgage REITs) generally increases. Long-term debt securities, mortgage-backed securities and fixed income obligations are generally more sensitive to interest rate changes.

As a rule of thumb, a portfolio of debt, mortgage-related and asset-backed securities experiences a decrease in principal value with an increase in interest rates. The extent of the decrease in principal value may be affected by a Fund's duration of its portfolio of debt, mortgage-related and asset-backed securities. Duration measures the relative price sensitivity of a security to changes in interest rates. "Effective" duration takes into consideration the likelihood that a security will be called, or prepaid, prior to maturity given current market interest rates. Typically, a security with a longer duration is more price sensitive than a security with a shorter duration. In general, a portfolio of debt, mortgage-related and asset-backed securities experiences a percentage decrease in principal value equal to its effective duration for each 1% increase in interest rates. For example, if a Fund holds a portfolio of securities with an effective duration of five years and interest rates rise 1%, the princ ipal value of such securities could be expected to decrease by approximately 5%.

Large Company Risk - A Fund with a portfolio of large capitalization company securities may underperform the market as a whole.

Low-rated Securities Risk -- In general, low-rated debt securities (commonly referred to as "high yield" or "junk" bonds) offer higher yields due to the increased risk that the issuer will be unable to meet its obligations on interest or principal payments at the time called for by the debt instrument. For this reason, these bonds are considered speculative and could significantly weaken a Fund's returns. In adverse economic or other circumstances, issuers of these lower rated securities and obligations are more likely to have difficulty making principal and interest payments than issuers of higher rated securities and obligations.

Market Risk - All securities may be subject to adverse trends in equity markets. Securities are subject to price movements due to changes in general economic conditions, the level of prevailing interest rates or investor perceptions of the market. In addition, prices are affected by the outlook for overall corporate profitability. Market prices of equity securities are generally more volatile than debt securities. This may cause a security to be worth less than the price originally paid for it, or less than it was worth an earlier time. Market risk may affect a single issuer or the market as a whole. As a result, a portfolio of such securities may underperform the market as a whole.

Mid Size Company Risk -Securities of mid capitalization companies may be more vulnerable to adverse developments than those of large companies due to such companies' limited product lines, limited markets and financial resources and dependence upon a relatively small management group.

Prepayment Risk -- Debt securities with high relative interest rates may be prepaid by the issuer prior to maturity, particularly during periods of falling interest rates. During periods of falling interest rates, there is the possibility that an issuer will call its securities if they can be refinanced by issuing new securities with a lower interest rate. As well, falling interest rates could cause prepayments of mortgage loans to occur more quickly than expected. This may occur because, as interest rates fall, more property owners refinance the mortgages underlying mortgage-backed securities (including mortgage REITs). As a result, a Fund would have to reinvest the proceeds in other securities with generally lower interest rates, resulting in a decline of the Fund's income.

REIT-Related Risk - The value of a Fund's REIT securities may be adversely affected by changes in the value of the underlying property. In addition, the value of equity or mortgage REITs could be adversely affected if the REIT fails to qualify for tax-free pass through income under the Internal Revenue Code of 1986 (as amended), or maintain its exemption from registration under the 1940 Act.

REOC-Related Risk -A REOC is similar to a REIT in that it is a company that owns and operates commercial real estate, but unlike a REIT it has the freedom to reinvest all its funds from operations back into the company, and, in general, faces fewer restrictions than a REIT. REOCs do not pay any specific level of income as dividends, and there is no minimum restriction on the number of owners nor limits on ownership concentration. The value of a Fund's REOC securities may be adversely affected by the same factors that adversely affect REITs. In addition, REOCs do not have the favorable tax treatment that is accorded a REIT.

Securities Lending Risk - A Fund may experience a delay in the recovery of loaned securities, or even the loss of rights in the collateral deposited by the borrower if the borrower should fail financially. To reduce these risks, a Fund enters into loan arrangements only with institutions that IICO or a subadvisor has determined are creditworthy.

Small Company Risk - Equity securities of small capitalization companies (including small capitalization REITs) are subject to greater price volatility due to, among other things, such companies' small size, limited product lines, limited access to financing sources and limited management depth. In addition, the frequency and volume of trading of such securities may be less than is typical of larger companies, making them subject to wider price fluctuations. In some cases, there could be difficulties in selling securities of small capitalization companies at the desired time.

Value Stock Risk -- Value stocks are stocks of companies that may have experienced adverse business or industry developments or may be subject to special risks that have caused the stocks to be out of favor and, in the opinion of IICO or a subadvisor, undervalued. The value of a security believed by IICO or a subadvisor to be undervalued may never reach what is believed to be is its full value, or such security' s value may decrease.

The Management of the Funds

Investment Advisor

The Funds are managed by Ivy Investment Management Company (IICO), subject to the authority of the Board of Trustees of Ivy Funds and the Board of Directors of Ivy Funds, Inc. IICO is a wholly-owned subsidiary of Waddell & Reed Financial, Inc., a publicly held company located at 6300 Lamar Avenue, P.O. Box 29217, Shawnee Mission, Kansas 66201-9217. IICO is an SEC-registered investment advisor with approximately $6.6 billion in assets under management as of June 30, 2005, and serves as the investment manager for each of the Funds within the Ivy Family of Funds. IICO has served as investment manager to the Ivy Funds (Trust) since December 31, 2002,¹ and to Ivy Funds, Inc. since June 30, 2003. Prior to June 30, 2003, Waddell & Reed Investment Management Company (WRIMCO), an affiliate of IICO, served as the investment manager for each of the Funds in the Ivy Funds, Inc. On June 30, 2003, WRIMCO assigned the Investment Management Agreement with Ivy Funds, Inc. (formerly W&R Funds, I nc.) to IICO. IICO is located at 6300 Lamar Avenue, P.O. Box 29217, Shawnee Mission, Kansas 66201-9217.

¹Until December 31, 2002, Ivy Management, Inc. (IMI) provided business management services and investment advisory services to the Ivy Funds. On December 31, 2002, IMI, an indirect wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR) and a wholly owned subsidiary of Ivy Acquisition Corporation (IAC), merged with and into IAC, a wholly owned subsidiary of WDR. Upon effectiveness of the merger, IAC changed its name to Waddell and Reed Ivy Investment Company (WRIICO), and WRIICO assumed all of IMI's duties with respect to the Ivy Funds. Effective March 7, 2005, WRIICO changed its name to Ivy Investment Management Company (IICO).

Investment Subadvisors

Advantus Capital Management, Inc. (Advantus Capital), an SEC-registered investment advisor located at 400 Robert Street North, St. Paul, Minnesota 55101, serves as investment subadvisor to Ivy Real Estate Securities Fund under an agreement with IICO. Since its inception in 1994, Advantus Capital has provided investment advisory services for mutual funds and has managed investment portfolios for various private accounts, including its affiliate, Minnesota Life Insurance Company (Minnesota Life). Both Advantus Capital and Minnesota Life are wholly-owned subsidiaries of Securian Financial Group, Inc., which is a second-tier subsidiary of Minnesota Mutual Companies, Inc., a mutual insurance holding company. Personnel of Advantus Capital also manage Minnesota Life's investment portfolio. Advantus Capital had approximately $16 billion in assets under management as of March 31, 2005.

BlackRock Financial Management, Inc. (BlackRock), located at 40 East 52nd Street, New York, NY 10022, provides investment advice to, and generally conducts the investment management program for, Small Cap Value Fund pursuant to an agreement with IICO. Together with its affiliates, BlackRock serves as investment adviser to fixed income, equity and liquidity investors in the United States and overseas through fund and institutional accounts with combined total assets as of June 30, 2005, of approximately $414 billion.

Cundill Investment Research Ltd., formerly Peter Cundill & Associates (Cundill), an SEC-registered investment adviser located at Suite 200, 1100 Melville Street, Vancouver, British Columbia, Canada V6E 4A6, serves as subadvisor to Ivy Cundill Global Value Fund under an agreement with IICO. Cundill began operations in 1984, and as of June 30, 2005 (along with its affiliates) had approximately $8.8 billion in assets under management.

Under an agreement between IICO and Henderson Global Investors (North America) Inc. (HGINA), HGINA serves as subadvisor to Ivy European Opportunities Fund. Henderson Investment Management Ltd. (Henderson), 4 Broadgate Avenue, London, England EC2M 2DA, under a subadvisory agreement with HGINA, serves as subadvisor to the Fund. Henderson is an indirect, wholly owned subsidiary of AMP Limited, an Australian life insurance and financial services company located in New South Wales, Australia. As of December 31, 2004, Henderson had approximately $133 billion in assets under management.

Mackenzie Financial Corporation (MFC), 150 Bloor Street West, Suite 400, Toronto, Ontario, Canada M5S 3B5, serves as the investment subadvisor to Ivy Global Natural Resources Fund pursuant to an agreement with IICO and is responsible for selecting Ivy Global Natural Resources Fund's portfolio investments. MFC has been an investment counsel and mutual fund manager in Toronto for more than 35 years, and as of June 30, 2005 had approximately $46 billion Canadian in assets under management.

Templeton Investment Counsel, LLC (Templeton), an SEC-registered investment advisor located at 500 East Broward Boulevard, Fort Lauderdale, Florida 33394, serves as investment subadvisor to the Ivy International Balanced Fund under to an agreement with IICO. Templeton provides investment advice, and generally conducts the investment management program for the Fund. Templeton and its affiliates had approximately $425 billion in assets under management as of June 30, 2005.

Management Fee

Like all mutual funds, the Funds pay fees related to their daily operations. Expenses paid out of each Fund's assets are reflected in its share price or dividends; they are neither billed directly to shareholders nor deducted from shareholder accounts.

Each Fund pays a management fee to IICO for providing investment advice and supervising its investments. IICO uses a portion of the applicable fee to pay a Fund's subadvisor, if any. Each Fund also pays other expenses, which are explained in the SAI.

The management fee is payable by a Fund at the annual rates of:

Ivy Capital Appreciation Fund: 0.65% of net assets up to $1 billion, 0.60% of net assets over $1 billion and up to $2 billion, 0.55% of net assets over $2 billion and up to $3 billion, and 0.50% of net assets over $3 billion
Ivy Asset Strategy Fund, Ivy Balanced Fund, Ivy Core Equity Fund, Ivy Dividend Income Fund, Ivy International Balanced Fund, Ivy Large Cap Growth Fund, Ivy Value Fund: 0.70% of net assets up to $1 billion, 0.65% of net assets over $1 billion and up to $2 billion, 0.60% of net assets over $2 billion and up to $3 billion, and 0.55% of net assets over $3 billion.
Ivy International Growth Fund, Ivy Mid Cap Growth Fund, Ivy Science and Technology Fund, Ivy Small Cap Growth Fund, Ivy Small Cap Value Fund: 0.85% of net assets up to $1 billion, 0.83% of net assets over $1 billion and up to $2 billion, 0.80% of net assets over $2 billion and up to $3 billion, and 0.76% of net assets over $3 billion
Ivy Real Estate Securities Fund: 0.90% of net assets up to $1 billion, 0.87% of net assets over $1 billion and up to $2 billion, 0.84% of net assets over $2 billion and up to $3 billion, and 0.80% of net assets over $3 billion
Ivy European Opportunities Fund: 1.00% of net assets up to $250 million; 0.85% of net assets over $250 million and up to $500 million, and 0.75% of net assets over $500 million
Ivy International Fund: 1.00% of net assets up to $2 billion, 0.90% of net assets over $2 billion and up to $2.5 billion, 0.80% of net assets over $2.5 billion and up to $3 billion, and 0.70% of net assets over $3 billion
Ivy Cundill Global Value Fund, Ivy Global Natural Resources Fund, Ivy International Value Fund, Ivy Pacific Opportunities Fund: 1.00% of net assets up to $500 million, 0.85% of net assets over $500 million and up to $1 billion, 0.83% of net assets over $1 billion and up to $2 billion, 0.80% of net assets over $2 billion and up to $3 billion, and 0.76% of net assets over $3 billion

Management fees for the following Funds as a percent of the Fund' s net assets for its fiscal year ended March 31, 2005 were:

Fund	Management Fees Paid¹	Management Fee without voluntary waiver
Ivy Asset Strategy Fund	0.70%	0.70%
Ivy Balanced Fund	0.70%	0.70%
Ivy Capital Appreciation Fund	0.65%	0.00%
Ivy Core Equity Fund	0.70%	0.70%
Ivy Cundill Global Value Fund	1.00%	1.00%
Ivy Dividend Income Fund	0.70%	0.70%
Ivy European Opportunities Fund	1.00%	1.00%
Ivy Global Natural Resources Fund	0.95%	0.95%
Ivy International Fund	1.00%	1.00%
Ivy International Balanced Fund	0.70%	0.70%
Ivy International Growth Fund	0.85%	0.85%
Ivy International Value Fund	1.00%	1.00%
Ivy Large Cap Growth Fund	0.70%	0.70%
Ivy Mid Cap Growth Fund	0.85%	0.85%
Ivy Pacific Opportunities Fund	1.00%	1.00%
Ivy Real Estate Securities Fund	0.90%	0.90%
Ivy Science and Technology Fund	0.85%	0.85%
Ivy Small Cap Growth Fund	0.85%	0.85%
Ivy Small Cap Value Fund	0.85%	0.85%
Ivy Value Fund	0.70%	0.70%

¹For Funds managed solely by IICO, IICO has voluntarily agreed to waive its management fee for any day that a Fund's net assets are less than $25 million, subject to IICO's right to change or modify this waiver.

Portfolio Management

Ivy Asset Strategy Fund: Michael L. Avery is primarily responsible for the management of the equity portion of the Fund, and has held his Fund responsibilities since January 1997. In June 2005 he was named Chief Investment Officer and Executive Vice President of IICO and WRIMCO. Mr. Avery is Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager, and has served as portfolio manager for investment companies managed by WRIMCO since February 1994. From August 1987 until June 2005, Mr. Avery had served as the Director of Research for IICO and for WRIMCO and its predecessor. He holds a BS degree in Business Administration from the University of Missouri, and an MBA with emphasis on finance from Saint Louis University.

Daniel J. Vrabac is primarily responsible for the management of the fixed-income portion of the Asset Strategy Fund, and has held his Fund responsibilities since January 1997. He is Senior Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager. Mr. Vrabac has been an employee of WRIMCO since May 1994. He earned a BA degree in economics from Duquesne University, and holds an MBA with emphasis in Investments and Finance from Indiana University.

Ivy Balanced Fund: Cynthia P. Prince-Fox is primarily responsible for the management of the Fund. Ms. Prince-Fox has held her responsibilities since the inception of the Fund, and was the portfolio manager for the predecessor fund since May 2003. She is Senior Vice President of IICO and WRIMCO, Vice President of the Trust, and Vice President of other investment companies for which WRIMCO serves as investment manager. Ms. Prince-Fox has served as the portfolio manager for investment companies managed by WRIMCO since January 1993. She earned a BBA degree in Finance from St. Mary's University at San Antonio, Texas, and has earned an MBA with an emphasis in Finance from Rockhurst College.

Ivy Capital Appreciation Fund: Barry M. Ogden is primarily responsible for the management of the Fund, and has held his Fund responsibilities since January 2002. He is Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager. Mr. Ogden has served as Assistant Portfolio Manager for investment companies managed by WRIMCO since January 1999 and has been an employee of WRIMCO since July 1994. He graduated from the University of Kansas with a BS degree in accounting, and has earned the designation of Certified Public Accountant. Mr. Ogden is a Chartered Financial Analyst.

Ivy Core Equity Fund: James D. Wineland is primarily responsible for the management of the Fund, and has held his Fund responsibilities for since July 1997. He is Senior Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager. Mr. Wineland has served as the portfolio manager for investment companies managed by WRIMCO and its predecessor since January 1988 and has been an employee of such since November 1984. He graduated from the United States Military Academy at West Point, and earned an MBA at the University of Kansas. Mr. Wineland is a Chartered Financial Analyst.

Ivy Cundill Global Value Fund: Peter Cundill and Hiok Hhu Ng are primarily responsible for the management of the Fund. Mr. Cundill has held his responsibilities for Ivy Cundill Global Value Fund since the Fund's inception. He founded Peter Cundill & Associates in 1976. Mr. Cundill earned a Bachelor of Commerce degree from McGill University, Montreal. He holds the designations of Chartered Business Valuator (CBV), Chartered Financial Analyst (CFA), and Fellow Chartered Accountant (FCA).

Hiok Hhu Ng has held his responsibilities for the Fund as Portfolio Manager since 2004. Hhu joined the Cundill Group as a research analyst, and became an Assistant Portfolio Manager for Ivy Cundill Global Value Fund in 2001. He holds a Bachelor of Finance degree from the University of British Columbia. He is a Chartered Financial Analyst, and has completed the Canadian Securities Course, Canadian Securities Institute.

Ivy Dividend Income Fund: David P. Ginther is primarily responsible for the management of the Fund, and has held his responsibilities since its inception. He is Vice President of IICO and WRIMCO, Vice President of the Trust, and portfolio manager for other investment companies for which WRIMCO serves as investment manager, and has been an employee of WRIMCO since 1995. Mr. Ginther holds a BS degree in accounting from Kansas State University, and has earned the designation of Certified Public Accountant.

Ivy European Opportunities Fund: Stephen Peak, Executive Director of Henderson Global Investors and head of Henderson's specialist continental Europe equities team, is primarily responsible for the management of the Fund, and has held his fund responsibilities since April 1999. Formerly a director and portfolio manager with Touche Remnant & Co., Mr. Peak has over 29 years of investment experience. He joined Henderson in 1986.

Ivy Global Natural Resources Fund: Frederick Sturm, a Senior Vice President of MFC, is primarily responsible for the management of the Fund. He has managed the Fund since its inception. Mr. Sturm joined MFC in 1983. He holds a degree in commerce from the University of Toronto. Mr. Sturm is a CFA charterholder.

Ivy International Fund, Ivy International Growth Fund and Ivy International Value Fund: Thomas A. Mengel is primarily responsible for the management of each of Ivy International Fund, Ivy International Growth Fund and Ivy International Value Fund. Mr. Mengel has held his Fund responsibilities for Ivy International Growth Fund since May 1996, and for each of Ivy International Fund and Ivy International Value Fund since December 2002. Mr. Mengel is Senior Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and of the Trust, and Vice President of other investment companies for which WRIMCO serves as investment manager. He is a graduate of the University of Berlin with a degree in Business, Finance and Economics.

Ivy International Balanced Fund: Edgerton Tucker Scott III and Alexander C. Calvo are primarily responsible for the management of the Fund. Mr. Scott has held his responsibilities since the inception of the Fund, and was the portfolio manager for the predecessor fund since June 2000. He is Senior Vice President of Templeton Investment Counsel, LLC. Mr. Scott earned a BA from the University of Virginia and a MBA from Amos Tuck School of Business at Dartmouth College. He is a Chartered Financial Analyst.

Mr. Calvo has also held his responsibilities since the inception of the Fund, and was the portfolio manager for the predecessor fund since July 2001. He is Senior Vice President, Director and Portfolio Manager for Franklin Templeton Investments International Bond Department. Mr. Calvo earned a BA in Economics and Political Science from State University of New York at Binghampton and a MA degree in International Affairs at Tufts University.

Ivy Large Cap Growth Fund: Daniel P. Becker is primarily responsible for the management of the Fund, and has held his responsibilities since its inception. He is Senior Vice President of IICO and WRIMCO, Vice President of the Trust and Vice President of another investment company for which WRIMCO serves as investment manager. Mr. Becker has been an employee of WRIMCO and its predecessor since October 1989, initially serving as an investment analyst, and has served as a portfolio manager for WRIMCO since January 1997. He earned a BS degree in Mathematical Economics from the University of Wisconsin, and holds an MS degree with an emphasis in Finance, Investments and Banking from the University of Wisconsin Graduate School of Business. Mr. Becker is a Chartered Financial Analyst.

Ivy Mid Cap Growth Fund: Kimberly A. Scott is primarily responsible for the management of the Fund, and has held her Fund responsibilities since February 2001. She is Senior Vice President of IICO and WRIMCO, Vice President of the Trust and Vice President of other investment companies managed by WRIMCO. Ms. Scott served as an investment analyst with WRIMCO from April 1999 to February 2001. She earned a BS in microbiology from the University of Kansas, and holds an MBA from the University of Cincinnati. Ms. Scott is a Chartered Financial Analyst.

Ivy Pacific Opportunities Fund: Frederick Jiang is primarily responsible for the management of the Fund. Mr. Jiang has held his Fund responsibilities since February 2004, and had been Assistant Portfolio Manager for the Fund since July 2003. He is Vice President of IICO and WRIMCO and Vice President of the Trust. From July 1999 to July 2003, he served as an investment analyst for IICO and WRIMCO. Mr. Jiang holds a BA degree in Economics from the Central University of Finance and Economics, Beijing, China, and earned an MBA degree in Finance from New York University. Mr. Jiang has earned a Chinese Certified Public Accountant designation, and is a Chartered Financial Analyst.

Ivy Real Estate Securities Fund: Joseph R. Betlej is primarily responsible for the management of the Fund. He has held his responsibilities since the inception of the Fund, and was the portfolio manager for the predecessor fund since February 1999. Mr. Betlej is Vice President and Investment Officer of Advantus Capital. He has been in the real estate industry since 1984 and has been with Advantus Capital since 1987. Mr. Betlej earned a BA in Architecture from the University of Minnesota and a MS in Real Estate Appraisal and Investment Analysis from the University of Wisconsin at Madison. He is a Chartered Financial Analyst.

Ivy Science and Technology Fund: Zachary H. Shafran is primarily responsible for the management of the Fund, and has held his Fund responsibilities since February 2001. He is Senior Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager. Mr. Shafran has served as a portfolio manager for investment companies managed by WRIMCO since January 1996. Mr. Shafran earned a BSBA degree in Business and an MBA with an emphasis in Finance from the University of Missouri at Kansas City.

Ivy Small Cap Growth Fund: Gilbert C. Scott is primarily responsible for the management of the Fund, and has held his Fund responsibilities since August 2003. He is Senior Vice President of IICO and WRIMCO, Vice President of Ivy Funds, Inc. and Vice President of other investment companies for which WRIMCO serves as investment manager. He joined Waddell & Reed in 1997 and has been assistant portfolio manager of small cap institutional accounts since September 2000. Mr. Scott earned a BBA degree in finance from the University of Massachusetts and an MBA from the University of Texas. He is a Chartered Financial Analyst.

Ivy Small Cap Value Fund: Wayne J. Archambo is primarily responsible for the management of the Fund, and has held his Fund responsibilities since January 2005, when BlackRock became the subadvisor for the Fund. Mr. Archambo is Managing Director and portfolio manager with BlackRock, and heads BlackRock's small and mid cap value equity team. Prior to joining BlackRock in 2002, he was a founding partner and Manager of Boston Partners Asset Management, L.P., since that company's inception in 1995. Mr. Archambo earned a BS in economics and finance from Nichols College and holds an MBA degree from Babson College. He is a member of the Boston Security Analysts Society, and is a Chartered Financial Analyst.

Ivy Value Fund: Matthew T. Norris is primarily responsible for the management of the Fund. He has held his responsibilities since the inception of the Fund, and was the portfolio manager for the predecessor fund since July 2003. Mr. Norris is Senior Vice President of IICO and WRIMCO, Vice President of the Trust and Vice President of other investment companies for which WRIMCO serves as investment manager. In June 2005 he was named Director of Equity Research for IICO and WRIMCO. From January 2000 to June 2003, Mr. Norris was a Portfolio Manager for Advantus Capital Management, Inc. He joined Advantus Capital in December 1997, first serving as an Analyst and later as a Senior Analyst. Prior to December 1997, Mr. Norris had been employed as an Equity Analyst and Portfolio Manager for Norwest Investment Management, Inc. He earned a BS degree from the University of Kansas, and an MBA from the University of Nebraska-Omaha. Mr. Norris is a Chartered Financial Analyst.

Additional information regarding portfolio managers, including information about the portfolio managers' compensation, other accounts managed by the portfolio managers and the portfolio managers' ownership of securities is included in the SAI.

Other members of IICO's investment management department provide input on market outlook, economic conditions, investment research and other considerations relating to a Fund's investments.

Your Account

Choosing a Share Class

Each class of shares offered in this prospectus has its own sales charge, if any, and expense structure. The decision as to which class of shares of a Fund is best suited to your needs depends on a number of factors that you should discuss with your financial advisor. Some factors to consider are how much you plan to invest and how long you plan to hold your investment. If you are investing a substantial amount and plan to hold your shares for a long time, Class A shares may be the most appropriate for you. If you are investing a lesser amount, you may want to consider Class B shares (if investing for at least seven years) or Class C shares (if investing for less than seven years). Class B are not available for investments of $100,000 or more, and Class C shares are not available for investments of $1 million or more. Class Y shares are designed for institutional investors and others investing through certain intermediaries.

Since your objectives may change over time, you may want to consider another class when you buy additional Fund shares. All of your future investments in a Fund will be made in the class you select when you open your account, unless you inform the Fund otherwise, in writing, when you make a future investment.

General Comparison of Class A, Class B and Class C Shares

Class A	Class B	Class C
Initial sales charge	No initial sales charge	No initial sales charge
No deferred sales charge¹	Deferred sales charge on shares you sell within six years after purchase	A 1% deferred sales charge on shares you sell within 12 months after purchase
Maximum distribution and service (12b-1) fees of 0.25%	Maximum distribution and service (12b-1) fees of 1.00%	Maximum distribution and service (12b-1) fees of 1.00%
	Converts to Class A shares 8 years after the month in which the shares were purchased, thus reducing future annual expenses	Does not convert to Class A shares, so annual expenses do not decrease
For an investment of $1 million or more, only Class A shares are available	Shareholders investing $100,000 may not purchase Class B shares. Requests to purchase Class B shares by such shareholders will not be honored	Shareholders investing $1 million may not purchase Class C shares. Requests to purchase Class C shares will automatically be treated as a request to purchase Class A shares

¹A 1% CDSC is imposed on purchases of $1 million or more of Class A shares that are redeemed within 12 months of purchase.

Each Fund has adopted a Distribution and Service Plan (Plan) pursuant to Rule 12b-1 under the 1940 Act for each of its Class A, Class B, Class C and Class Y shares. Such Plans permit the Funds to pay marketing and other fees to support both the sale and distribution of each Class of shares as well as the services provided to shareholders by their financial advisor. Under the Class A Plan, a Fund may pay Ivy Funds Distributor, Inc. (IFDI) a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Class A shares. This fee is to reimburse and/or compensate IFDI for, either directly or through third parties, distributing the Fund's Class A shares, providing personal service to Class A shareholders and/or maintaining Class A shareholder accounts. Under the Class B Plan and the Class C Plan, each Fund may pay IFDI, on an annual basis, a service fee of up to 0.25% of the average daily net assets of that class to compensate IFDI for, either directly or through third parties, providing personal service to shareholders of that class and/or maintaining shareholder accounts for that class and a distribution fee of up to 0.75% of the average daily net assets of that class to compensate IFDI for, either directly or through third parties, distributing shares of that class. No payment of the distribution fee will be made, and no deferred sales charge will be paid, to IFDI by any Fund if, and to the extent that, the aggregate distribution fees paid by the Fund and the deferred sales charges received by IFDI with respect to the Fund's Class B or Class C shares would exceed the maximum amount of such charges that IFDI is permitted to receive under the NASD rules as then in effect. Under the Class Y Plan, each Fund may pay IFDI a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Fund's Class Y shares to compensate IFDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing service to Class Y shareholders and/or maintaining Class Y shareholder accounts.

Since these fees are paid out of a fund's assets or income on an ongoing basis, over time they will increase the cost and reduce the return of an investment. The higher fees for Class B and Class C shares may result in a lower net asset value (NAV) than Class A shares and may cost you more over time than paying the initial sales charge for Class A shares. All or a portion of these fees may be paid to your financial advisor.

Class A shares

Class A shares are subject to an initial sales charge when you buy them, based on the amount of your investment, according to the table below. As noted, Class A shares that have a Plan pay an annual 12b-1 fee of up to 0.25% of average Class A net assets, except Class A shares of Ivy International Fund issued prior to January 1, 1992 are not subject to an ongoing service fee. For this Fund, the annual service fee attributable to the Class A shares of the Fund may equal up to 0.25% of the net assets issued on or after January 1, 1992. The ongoing expenses of Class A are lower than those for Class B or Class C shares and typically higher than those for Class Y shares.

Calculation of Sales Charges on Class A Shares

		Sales Charge	Reallowance
		as Approx.	to Dealers
	Sales Charge	Percent of	as Percent
Size of	as Percent of	Amount	of Offering
Purchase	Offering Price¹	Invested	Price²
--------	-----------	----------	-----------
under $100,000	5.75%	6.10%	5.00%
$100,000 to less than $200,000	4.75	4.99	4.00
$200,000 to less than $300,000	3.50	3.63	2.80
$300,000 to less than $500,000	2.50	2.56	2.00
$500,000 to less than $1,000,000	1.50	1.52	1.20
$1,000,000 and over³	0.00	0.00	see below

¹Due to the rounding of the NAV and the offering price of a fund to two decimal places, the actual sales charge percentage calculated on a particular purchase may be higher or lower than the percentage stated above.

²Until August 31, 2005, Legend Equities Corporation (Legend) receives a dealer reallowance in the full amount of the Class A shares sales charge. Edward Jones receives a dealer reallowance in the full amount of the Class A shares sales charge for its clients who are eligible for the Edward Jones Free Switch Program. Edward Jones will rebate 100% of the sales load to eligible Free Switch customers.

³No sales charge is payable at the time of purchase on investments of $1 million or more, although for such investments the Fund may impose a CDSC of 1% on certain redemptions made within 12 months of the purchase. The CDSC is assessed on an amount equal to the lesser of the then current market value or the cost of the shares being redeemed. Accordingly, no sales charge is imposed on increases in net asset value above the initial purchase price.

IFDI may pay dealers up to 1.00% on investments made in Class A shares with no initial sales charge.

IFDI or its affiliates may pay additional compensation from its own resources to broker-dealers based upon the value of shares of a Fund owned by the broker-dealer for its own account or for its customers, including compensation for shares of the Funds purchased by customers of such broker-dealers without payment of a sales charge.

Sales Charge Reductions

Lower sales charges on the purchase of Class A shares are available by:

Rights of Accumulation: combining the value of additional purchases of shares of any of the funds in Ivy Family of Funds and/or Waddell & Reed InvestEd Portfolios, Inc. with the NAV of Class A, Class B or Class C shares already held in your account or in an account eligible for grouping with your account (see "Account Grouping" below). To be entitled to Rights of Accumulation, you must inform IFDI that you are entitled to a reduced sales charge and provide IFDI with the name and number of the existing account(s) with which your purchase may be combined. The reduced sales charge is applicable only to the new purchase. It is not retroactive to shares already held in your account or in an account eligible for grouping with your account.
Letter of Intent: grouping all purchases of the funds referenced above, made during a thirteen-month period pursuant to a Letter of Intent (LOI). By signing a LOI, which is available from IFDI, you indicate an intention to invest, over a thirteen-month period, a dollar amount sufficient to qualify for a reduced sales charge. In determining the amount which you must invest in order to qualify for a reduced sales charge under the LOI, your Class A, Class B or Class C shares already held in the same account in which the purchase is being made or in any account eligible for grouping with that account, as described in "Account Grouping" below, will be included.
Account Grouping: grouping purchases by certain related persons. For the purpose of taking advantage of the lower sales charges available for large purchases, a purchase of Class A shares in any account that you own may be grouped with the current account value of purchased Class A, Class B and/or Class C shares in any other account that you may own, or in accounts of household members of your immediate family (spouse and children under 21). Please note that grouping is allowed only for a) accounts of the owner that have the same address or Tax ID number, and b) accounts of family members living (or maintaining a permanent address) in the same household as the owner. For purposes of account grouping, an individual's domestic partner may be treated as his or her spouse.

With respect to purchases under other retirement plans:

1.         All purchases of Class A shares made for a participant in a multi-participant Keogh plan may be grouped only with other purchases made under the same plan.
2.         All purchases of Class A shares made under an employee benefit plan described in Section 401 of the Internal Revenue Code of 1986, as amended (the Code) (a "qualified plan") that is maintained by a corporate employer and all plans of any one employer or affiliated employers will also be grouped. All qualified plans of an employer who is a franchisor and those of its franchisee(s) may also be grouped.
3.         All purchases of Class A shares made under a simplified employee pension plan (SEP), payroll deduction plan or similar arrangement adopted by an employer or affiliated employers may be grouped. Additionally, the purchases made by individual employees under such plan may also be grouped with the other accounts of the individual employees if such grouping would be more beneficial to an individual.
4.         All purchases of Class A shares made by you or your spouse for your respective individual retirement account (IRA), salary reduction plan account under Section 457 of the Code may be grouped, provided that such purchases are subject to a sales charge (see "Sales Charge Waivers for Certain Investors" and "Sales Charge Waivers for Certain Transactions" below; if your purchase qualifies for NAV eligibility pursuant to these sections, you may not group that investment), tax-sheltered annuity account (TSA) or Keogh plan account, provided that you and your spouse are the only participants in the Keogh plan.

In order for an eligible purchase to be grouped, you must advise IFDI at the time the purchase is made that it is eligible for grouping and identify the accounts with which it may be grouped.

Shares of Ivy Money Market are not eligible for either Rights of Accumulation or Letter of Intent privileges, unless such shares have been acquired by exchange for Class A shares on which a sales charge was paid, or as a dividend or distribution on such acquired shares.

If you are investing $1 million or more, either as a lump sum or through one of the sales charge reduction features described above, you may be eligible to buy Class A shares without a sales charge. However, you may be charged a CDSC of 1.00% on any shares purchased without a sales charge that you sell within the first 12 months of owning them. This CDSC may be waived under certain circumstances, as noted in this prospectus. Your financial advisor or a Client Services representative can answer your questions and help you determine if you are eligible.

For clients of Waddell & Reed, Inc. (Waddell & Reed) and Legend, the grouping privileges described above also apply to the corresponding classes of shares of funds in the Waddell & Reed Advisors Family of Funds.

Sales Charge Waivers for Certain Investors

Class A shares may be purchased at NAV by:

Shareholders investing through certain investment advisors and financial planners who charge a management, consulting or other fee for their services

The Trustees and officers of Ivy Funds, the Directors and officers of Ivy Funds, Inc. or of any affiliated entity of IICO, employees of IFDI and its affiliates, financial advisors of Waddell & Reed and its affiliates and the spouse, children, parents, children's spouses and spouse's parents of each of the foregoing (including purchases into certain retirement plans and certain trusts for those individuals), and the employees of financial advisors of Waddell & Reed

Minnesota Life Trustees and officers, Directors, or any affiliated entity of Minnesota Life, employees of Minnesota Life, Securian/CRI Financial Advisors, their respective spouses, children, parents, children's spouses and spouse's parents of each, including purchases into certain retirement plans and certain trusts for these individuals

Participants in a 401(k) plan or a 457 plan having 100 or more eligible employees, and the shares are held in individual plan participant accounts on the Fund's records

Participants in a 401(a) plan having 100 or more eligible employees, and the shares are held in individual plan participant accounts on the Fund's records and are segregated from any other retirement plan assets

Participants in a 401(a) plan or 457 plan that invest in the Ivy Family of Funds through a third party platform or agreement

The Merrill Lynch Daily K Plan (the "Plan"), provided the Plan has at least $3 million in assets or over 500 or more eligible employees. Class B shares of the Funds are made available to Plan participants at NAV without a CDSC if the Plan has less than $3 million in assets or fewer than 500 eligible employees. For further information see "Group Systematic Investment Program" in the SAI.

Sales representatives, and their immediate family members (spouse, children, parents, children's spouses and spouse's parents), associated with unaffiliated third party broker/dealers with which IFDI has entered into selling agreements

Clients investing via a Managed Allocation Portfolios (MAP) or Strategic Portfolio Allocation (SPA) program available through Waddell & Reed, Inc.

Waivers for Certain Transactions

Class A shares may be purchased at NAV through:

Exchange of Class A shares of any fund in the Ivy Family of Funds or Waddell & Reed InvestEd Portfolios, Inc. and, for clients of Waddell & Reed and Legend, any fund in the Waddell & Reed Advisors Funds if (i) a sales charge was previously paid on those shares, (ii) the shares were received in exchange for shares on which a sales charge was paid or (iii) the shares were acquired from reinvestment of dividends and distributions paid on such shares
One-Time Reinvestment of all or part of the proceeds of redemption of your Class A shares of a Fund in Class A shares of the Fund, if the reinvestment is made within 60 days of the Fund's receipt of your redemption request
Payments of Principal and Interest on Loans made pursuant to a 401(a) plan, if such loans are permitted by the plan and the plan may invest in shares of the Fund

Information about the purchase of Fund shares, applicable sales charges and sales charge reductions and waivers is also available, free of charge, at www.ivyfunds.com, including hyperlinks to facilitate access to this information. You will find more information in the Fund's SAI about sales charge reductions and waivers.

Contingent Deferred Sales Charge

A CDSC may be assessed against your redemption amount of Class B, Class C or certain Class A shares and paid to IFDI, as further described below. The purpose of the CDSC is to compensate IFDI for the costs incurred by it in connection with the sale of the Fund's Class B or Class C shares or certain Class A shares. IFDI pays 4.00% of the amount invested to dealers who sell Class B shares and 1.00% of the amount invested to dealers who sell Class C shares.

The CDSC will not be imposed on shares representing payment of dividends or other distributions and will be assessed on an amount equal to the lesser of the then current market value or the cost of the shares being redeemed. Accordingly, no CDSC will be imposed on increases in net asset value above the initial purchase price. In order to determine the applicable CDSC, if any, all purchases are totaled and considered to have been made on the first day of the month in which the purchase was made.

To keep your CDSC as low as possible, each time you place a request to redeem shares, the Fund assumes that a redemption is made first of shares not subject to a CDSC (including shares which represent reinvested dividends and distributions), and then of shares that represent the lowest sales charge.

Unless instructed otherwise, when requested to redeem a specific dollar amount, a Fund will redeem additional shares of the applicable class that are equal in value to the CDSC. For example, should you request a $1,000 redemption and the applicable CDSC is $27, the Fund will redeem shares having an aggregate NAV of $1,027, absent different instructions. The shares redeemed for payment of the CDSC are not subject to a CDSC.

Class B shares

Class B shares are not subject to an initial sales charge when you buy them. However, you may pay a CDSC if you sell your Class B shares within six years of their purchase, based on the table below. As noted above, Class B shares pay an annual 12b-1 service fee of up to 0.25% of average net assets and a distribution fee of up to 0.75% of average net assets. Over time, these fees will increase the cost of your investment and may cost you more than if you had purchased Class A shares. Class B shares, and any dividends and distributions paid on such shares, automatically convert to Class A shares, on a monthly basis, eight years after the end of the month in which the shares were purchased. Such conversion will be on the basis of the relative net asset values per share, without the imposition of any sales load, fee or other charge. The conversion from Class B shares to Class A shares is not considered a taxable event for Federal income tax purposes.

The Fund will redeem your Class B shares at their NAV next calculated after receipt of a written request for redemption in good order, subject to the CDSC identified below.

CDSC on Shares Sold Within Year	As % of Amount Subject to Charge
1	5.0%
2	4.0%
3	3.0%
4	3.0%
5	2.0%
6	1.0%
7+	0.0%

In the table, a year is a 12-month period. In order to determine the applicable CDSC, if any, all purchases are totaled and considered to have been made on the first day of the month in which the purchase was made. For example, if a shareholder opens an account on August 17, 2005, then redeems all Class B shares on August 15, 2006, the shareholder will pay a CDSC of 4.00%, the rate applicable to redemptions made within the second year of purchase.

Shareholders who are eligible to purchase Class A shares at a reduced sales charge due to the breakpoints available on a purchase of $100,000 or more of Class A shares, or through Rights of Accumulation, a Letter of Intent or grouping purchases by certain related persons may not purchase Class B shares. In such case, requests to purchase Class B shares will not be accepted. The Fund will not apply the limitation to Class B share purchases made by shareholders whose shares are held in an omnibus account on any of the Funds' records and it will be the selling broker's responsibility to apply the limitation for such purchases.

Class C shares

Class C shares are not subject to an initial sales charge when you buy them, but if you sell your Class C shares within 12 months after purchase, you will pay a 1.00% CDSC, which will be applied to the lesser of amount invested or redemption value of the shares redeemed. As noted above, Class C shares pay an annual 12b-1 service fee of up to 0.25% of average net assets and an annual distribution fee of up to 0.75% of average net assets. Over time, those fees will increase the cost of your investment and may cost you more than if you had purchased Class A shares. Class C shares do not convert to any other class; therefore, if you anticipate holding the shares for seven years or longer, Class C shares may not be appropriate.

Shareholders who are investing $1 million through a sales charge reduction feature, including a shareholder eligible to purchase Class A shares at no sales charge due to the breakpoints available on a purchase of $1 million or more of Class A shares, or through Rights of Accumulation, a Letter of Intent or grouping purchases by certain related persons may not purchase Class C shares. In such case, requests to purchase Class C shares will automatically be treated as a request to purchase Class A shares. The Fund will not apply the limitation to Class C share purchases made by shareholders whose shares are held in an omnibus account on any of the Funds' records and it will be the selling broker's responsibility to apply the limitation for such purchases.

The CDSC for Class B or Class C shares and for Class A shares that are subject to a CDSC will not apply in the following circumstances:

redemptions of shares requested within one year of the shareholder's death or disability, provided the Fund is notified of the death or disability at the time of the request and furnished proof of such event satisfactory to IFDI

redemptions of shares made to satisfy required minimum distributions after age 70 1/2 from a qualified retirement plan, a required minimum distribution from an individual retirement account, a Keogh plan or a custodial account under section 403(b)(7) of the Internal Revenue Code of 1986, as amended (Code), a tax-free return of an excess contribution, or that otherwise results from the death or disability of the employee, as well as in connection with redemptions by any tax-exempt employee benefit plan for which, as a result of a subsequent law or legislation, the continuation of its investment would be improper

redemptions of shares purchased by current or retired Trustees or Directors of the Funds, Directors of affiliated companies, current or retired officers of the Funds, employees of IFDI and its affiliates, financial advisors of Waddell & Reed and its affiliates, and by the members of the immediate families of such persons

redemptions of shares made pursuant to a shareholder's participation in any systematic withdrawal service adopted for a Fund, subject to the limitation on the service as further disclosed in the SAI (the service and this exclusion from the CDSC do not apply to a one-time withdrawal)

redemptions the proceeds of which are reinvested within 60 days in shares of the same class of the Fund as that redeemed

for Class C shares, redemptions made by shareholders that have purchased shares of the Fund through certain group plans that have selling agreements with IFDI and that are administered by a third party and/or for which brokers not affiliated with IFDI provide administrative or recordkeeping services

the exercise of certain exchange privileges

redemptions effected pursuant to the Fund's right to liquidate a shareholder's account if the aggregate NAV of the shares is less than $500

redemptions effected by another registered investment company by virtue of a merger or other reorganization with a Fund

These exceptions may be modified or eliminated by a Fund at any time without prior notice to shareholders, except with respect to redemptions effected pursuant to the Fund's right to liquidate a shareholder's shares, which may require certain notice.

Class Y shares

Class Y shares are not subject to a sales charge. Class Y shares do, however, pay an annual 12b-1 distribution and/or service fee of up to 0.25% of average net assets. Class Y shares are only available for purchase by:

participants of employee benefit plans established under section 403(b) or section 457, or qualified under section 401 of the Code, including 401(k) plans, when the plan has 100 or more eligible employees that are participants and holds the shares in an omnibus account on the Fund's records, and an unaffiliated third party provides administrative, distribution and/or other support services to the plan

banks, trust institutions, investment fund administrators and other third parties investing for their own accounts or for the accounts of their customers where such investments for customer accounts are held in an omnibus account on the Fund's records, and to which entity an unaffiliated third party provides administrative, distribution and/or other support services

government entities or authorities and corporations whose investment within the first 12 months after initial investment is $10 million or more and to which entity an unaffiliated third party provides certain administrative, distribution and/or other support services

certain retirement plans and trusts for employees of Waddell & Reed and its affiliates

Additional Dealer Compensation

Your financial advisor and the financial intermediary with which your advisor is affiliated typically will receive compensation when you buy and/or hold Fund shares. The source of that compensation may include the sales load, if any, that you pay as an investor and/or the 12b-1 fee paid by the class of shares of the Fund that you own. As well, IFDI may have selling agreements with financial intermediaries which provide for IFDI to pay fees to such intermediaries based on a percentage of assets and/or a fixed amount per shareholder account. IFDI makes payments to such intermediaries from its own resources and from amounts reimbursed by WRIMCO and IICO. These reimbursements to IFDI are funded out of WRIMCO and IICO's net income, respectively.

The amount and type of compensation that your financial advisor or intermediary receives will vary based upon the share class you buy, the value of those shares and the compensation practices of the intermediary. Compensation to the intermediary generally is based on the value of shares of the Funds owned by the intermediary for its own account or for its clients and may also be based on the gross and/or net sales of the Fund shares attributable to the intermediary. That compensation recognizes the distribution, administrative, promotional and other services provided by the intermediary, and may be required by the intermediary in order for the Ivy Family of Funds to be available for sale by the intermediary. The rate of compensation depends upon various factors, including but not limited to the intermediary' s established policies and prevailing practices in different segments of the financial services industry. In addition, an intermediary may maintain omnibus accounts or similar arrangements with a Fund for consolidated holdings of Fund shares by its clients, and may receive payments from IFDI or its affiliates for providing related sub-transfer agency and other services.

IFDI may also compensate an intermediary and/or financial advisor for IFDI's participation in various activities sponsored and/or arranged by the intermediary, including but not limited to programs that facilitate educating financial advisors and/or their clients about various topics, including the Funds. IFDI may also pay, or reimburse, an intermediary for certain other costs relating to the marketing of the Funds. The rate of compensation depends upon various factors, including but not limited to the nature of the activity and the intermediary' s established policies.

Compensation arrangements such as those described above are undertaken to help secure and maintain appropriate availability, visibility and competitiveness for the Funds, such that they may be widely available and have the capacity to grow and potentially gain economies of scale for Fund shareholders. Please consult the SAI for additional information regarding compensation arrangements with intermediaries.

Potential Conflicts of Interest

The Distributor of the Funds, IFDI, is a corporate affiliate of Waddell & Reed. Shares of the Funds are offered by Waddell & Reed through a distribution agreement with IFDI. The following paragraph discloses certain potential conflicts of interest in connection with the offering of the Funds by Waddell & Reed.

Financial advisors of Waddell & Reed predominantly recommend the proprietary mutual funds that are available through Waddell & Reed, including the Funds. Waddell & Reed's training programs emphasize these funds and advisors have access to the Funds' portfolio managers and other investment professionals, who are employed by affiliates. While Waddell & Reed financial advisors focus primarily on proprietary mutual funds, certain nonproprietary mutual funds are also available through Waddell & Reed. Waddell & Reed financial advisors are paid commissions for their sales of mutual fund shares, based upon a percentage of the amount received by Waddell & Reed from the mutual fund or its distributor. The percentage Waddell & Reed pays to its financial advisors in commissions is the same for proprietary and nonproprietary funds. However, Waddell & Reed financial advisors may qualify for annual bonus payments, increased service fees and/or personal office support payments bas ed upon their sales levels of the Funds. Waddell & Reed financial advisors' supervisors may also receive additional compensation based on the sales levels of the financial advisors whom they supervise. Due to the incentives offered by Waddell & Reed to its financial advisors, the percentage payout for the Funds is likely to exceed that for nonproprietary funds sold through Waddell & Reed.

Ways to Set Up Your Account

The different ways to set up (register) your account are listed below.

Individual or Joint Tenants

For your general investment needs

Individual accounts are owned by one person. Joint accounts have two or more owners (tenants).

Business or Organization

For investment needs of corporations, associations, partnerships, institutions or other groups

Retirement and other Tax-Advantaged Savings Plans

To shelter your savings from income taxes

Retirement and other tax-advantaged savings plans allow individuals to shelter investment income and capital gains from current income taxes. In addition, contributions to these accounts (other than Roth IRAs and Coverdell Education Savings Accounts) may be tax-deductible.

Individual Retirement Accounts (IRAs) allow certain individuals under age 70 1/2, with earned income, to invest up to the Annual Dollar Limit per year. For the 2005 and 2006 tax years, the Annual Dollar Limit is $4,000. For individuals who have attained age 50 by the last day of the calendar year for which a contribution is made, the Annual Dollar Limit also allows a catch-up contribution. The maximum annual catch-up contribution is $500 for 2005 and $1,000 for 2006. The maximum annual contribution for an individual and his or her spouse is the sum of their separate Annual Dollar Limits or, if less, the couple's combined earned income for the taxable year.

IRA Rollovers retain special tax advantages for certain distributions from employer-sponsored retirement plans.

Roth IRAs allow certain individuals to make nondeductible contributions up to the Annual Dollar Limit per year (as identified above). The maximum annual contribution for an individual and his or her spouse is the sum of their separate Annual Dollar Limits or, if less, the couple's combined earned income for the taxable year. An individual's maximum Roth IRA contribution for a taxable year is reduced by the amount of any contributions that individual makes to a traditional IRA for that year. Withdrawals of earnings may be tax-free if the account is at least five years old and certain other requirements are met.

Coverdell Education Savings Accounts (formerly, Education IRAs) are established for the benefit of a minor, with nondeductible contributions up to $2000 per taxable year, and permit tax-free withdrawals to pay the qualified education expenses of the beneficiary.

Simplified Employee Pension Plans (SEP-IRAs) provide small business owners or those with self-employed income (and their eligible employees) with many of the same advantages and contribution limits as a profit sharing plan but with fewer administrative requirements.

Savings Incentive Match Plans for Employees (SIMPLE Plans) can be established by small employers to contribute to, and allow their employees to contribute a portion of their wages on a pre-tax basis to, retirement accounts. This plan-type generally involves fewer administrative requirements than 401(k) or other qualified plans.

Keogh Plans allow self-employed individuals and their spouses, or one or more partners and their spouses, to make tax-deductible contributions for themselves of up to 100% of their adjusted annual earned income, with a maximum of $42,000 for 2005.

Pension and Profit-Sharing Plans, including 401(k) Plans, allow corporations and nongovernmental tax-exempt organizations of all sizes and/or their employees to contribute a percentage of the employees' wages or other amounts on a tax-deferred basis. These accounts need to be established by the administrator or trustee of the plan.

403(b) Custodial Accounts are available to employees of public school systems, churches and IRC 501(C)(3) tax-exempt organizations.

457(b) Plans allow certain employees of state and local governments and tax-exempt organizations to contribute a portion of their compensation on a tax-deferred basis.

Gifts or Transfers to a Minor

To invest for a child's education or other future needs

These custodial accounts provide a way to give money to a child and obtain tax benefits. An individual can give up to $11,000 a year per child free of Federal transfer tax consequences. Depending on state laws, you can set up a custodial account under the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA).

Trust

For money being invested by a trust

The trust must be established before an account can be opened, or you may use a trust form made available by IFDI. Contact your financial advisor for the form.

Pricing of Fund Shares

The price to buy a share of a Fund, called the offering price, is calculated every business day. Each Fund is open for business every day the NYSE is open. The Funds normally calculate their NAVs as of the close of business of the NYSE, normally 4 p.m. Eastern time, except that an option or futures contract held by a Fund may be priced at the close of the regular session of any other securities exchange on which that instrument is traded. As noted in this prospectus, certain Funds may invest in securities listed on foreign exchanges, or otherwise traded in a foreign market, which may trade on Saturdays or on U.S. national business holidays when the NYSE is closed. Consequently, the NAV of a Fund's shares may be significantly affected on days when the Fund does not price its shares and when you are not able to purchase or redeem the Fund's shares. The offering price of a share (the price to buy one share of a particular class) is the next NAV calculated per share of that class plus the applicable sales c harge (for Class A shares).

In the calculation of a Fund's NAV:

The securities in the Fund's portfolio that are listed or traded on an exchange are valued primarily using market prices.
Bonds are generally valued according to prices quoted by an independent pricing service.
Short-term debt securities are valued at amortized cost, which approximates market value.
Other investment assets for which market prices are unavailable or are unreliable are valued at their fair value by or at the direction of the Board of Trustees or Board of Directors, as discussed below.

When a Fund believes a reported market price for a security does not reflect the amount the Fund would receive on a current sale of that security, the Fund may substitute for the market price a fair-value estimate made according to procedures approved by the Board of Trustees or Board of Directors. A Fund may also use these procedures to value certain types of illiquid securities. Fair value pricing generally will be used by a Fund if the exchange on which a portfolio security is traded closes early or if trading in a particular security is halted during the day and does not resume prior to the time the Fund's NAV is calculated.

A Fund may also use these methods to value securities that trade in a foreign market if a significant event that appears likely to materially affect the value of foreign investments or foreign currency exchange rates occurs between the time that foreign market closes and the time the NYSE closes. Some funds, such as Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Fund, Ivy International Balanced Fund, Ivy International Growth Fund, Ivy International Value Fund and Ivy Pacific Opportunities Fund, which may invest a portion of their assets in foreign securities, may also be susceptible to a time zone arbitrage strategy in which shareholders attempt to take advantage of fund share prices that may not reflect developments in foreign securities markets that occurred after the close of such market but prior to the pricing of Fund shares. In that case, such investments or exchange rates may be valued at their fair values as determined accordin g to the procedures approved by the Fund's Board of Trustees or Board of Directors. Significant events include, but are not limited to, (1) those impacting a single issuer, (2) governmental actions that affect securities in one sector, country or region, (3) natural disasters or armed conflicts affecting a country or region, and (4) significant domestic or foreign market fluctuation. The Funds have retained a third-party pricing service (the Service) to assist in valuing foreign securities held in the Funds' portfolios. The Service conducts a screening process to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current market value as of the close of the NYSE. For foreign securities where WRSCO, in accordance with guideless adopted by each of the Fund' s Board of Trustees or Board of Directors, believes, at the approved degree of certainty, that the price is not reflective of current market price, WRSCO may use the indication of fair value from the Service to determine the fair value of the security. The Service, the methodology or the degree of certainty may change from time to time. The Boards regularly review, and WRSCO regularly monitors and reports to the Boards, the Service's pricing of the Funds' foreign securities, as applicable.

Fair valuation has the effect of updating security prices to reflect market value based on, among other things, the recognition of a significant event - thus potentially alleviating arbitrage opportunities with respect to Fund shares. Another effect of fair valuation is that a Fund's NAV will be subject, in part, to the judgment of the Board of Trustees or Board of Directors or its designee instead of being determined directly by market prices. When fair value pricing is applied, the prices of securities used by a Fund to calculate its NAV may differ from quoted or published prices for the same securities, and therefore, a shareholder purchasing or redeeming shares on a particular day might pay or receive more or less than would be the case if a security were valued differently. It may also affect all shareholders in that if Fund assets were paid out differently due to fair value pricing, all shareholders will be impacted incrementally. There is no assurance, however, that fair value pricing will more accurately reflect the value of a security on a particular day than the market price of such security on that day or that it will prevent or alleviate the impact of market timing activities. For a description of market timing activities, please see " Market Timing Policy."

Buying Shares

You may buy shares of each of the Funds through IFDI and through third parties that have entered into selling arrangements with IFDI. To open your account you must complete and sign an application. Your financial advisor can help you with any questions you might have.

IFDI generally will not accept new account applications to establish an account with non-U.S. address (APO/FPO addresses are acceptable) or for a non-resident alien.

By mail: To purchase any class of shares by check, make your check payable to Ivy Funds Distributor, Inc. Mail the check, along with your completed application, to:

Ivy Funds Distributor, Inc.

P. O. Box 29217

Shawnee Mission, Kansas

66201-9217

By telephone or internet: To purchase Class A, B or C shares of a Fund by wire or by Automated Clearing House (ACH) via telephone or internet access, you must have an existing account number. Please call 800-777-6472 to report your purchase, or fax the information to 800-532-2749. You should then instruct your bank to use the bank information listed immediately below. For internet transactions, you may not execute trades greater than $25,000. You may purchase Class Y shares by calling 800-532-2783 or faxing instructions to 800-532-2749. If you need to establish an account for Class Y shares, you must first call 800-532-2783 to obtain an account number. You may then mail a completed application to IFDI at the above address, or fax it to 800-532-2749.

Please instruct your bank to wire the amount you wish to invest, along with the account number and registration, to UMB Bank, n.a., ABA Number 101000695, DDA Number 98-0000-797-8.

When you place an order to buy shares, your order, if accepted, will be processed at the next offering price calculated after your order is received in proper form by the Fund or its authorized agent. Note the following:

All of your purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. Neither cash nor post-dated checks will be accepted.

If you buy shares by check, and then sell those shares by any method other than by exchange to another fund in the Ivy Family of Funds, the payment may be delayed for up to ten days from the date of purchase to ensure that your previous investment has cleared.

You may purchase shares of a Fund indirectly through certain broker-dealers, banks and other third parties, some of which may charge you a fee. These firms may have additional requirements regarding the purchase of Fund shares. If you purchase shares of a Fund from certain broker-dealers, banks or other authorized third parties, the Fund will be deemed to have received your purchase order when that third party (or its designee) has received your order. Your order will receive the offering price next calculated after the order has been received in proper form by the authorized third party (or its designee). Therefore, if your order is received in proper form by that firm before 4:00 p.m. Eastern time on a day in which the NYSE is open, you should generally receive that day's offering price. If your order is received in proper form by that firm after 4:00 p.m. Eastern time, you will receive the offering price as calculated as of the close of business of the NYSE on the next business day. You should c onsult that firm to determine the time by which it must receive your order for you to purchase shares of a Fund at that day's price.

Broker-dealers that perform account transactions for their clients by participating in networking through the National Securities Clearing Corporation (NSCC) are responsible for obtaining their clients' permission to perform those transactions, and are responsible to their clients who are shareholders of the Fund if the broker-dealer performs any transaction erroneously or improperly. Such dealers have independent networking agreements with IFDI, and are compensated for performing account transactions for their clients.

When you sign your account application, you will be asked to certify that your Social Security number or other taxpayer number is correct and whether you are subject to backup withholding for failing to report income to the Internal Revenue Service.

IFDI reserves the right to reject any purchase orders, including purchases by exchange, and it and the Funds reserve the right to discontinue offering Fund shares for purchase.

Minimum Investments

For Class A, Class B and Class C:

To Open an Account	$500 (per Fund)
For certain exchanges	$100 (per Fund)
For accounts opened with Automatic Investment Service	$50 (per Fund)
For accounts established through payroll deductions	Any amount

To Add to an Account	Any amount
For certain exchanges	$100 (per Fund)
For Automatic Investment Service	$25 (per Fund)

For Class Y:

To Open an Account
For a government entity or authority or for a corporation	$10 million
	(within first 12 months)
For other eligible investors	Any amount

To Add to an Account	Any amount

Adding to Your Account

Subject to the minimums described above, you can make additional investments of any amount at any time.

By mail: Make your check payable to Ivy Funds Distributor, Inc. Mail the check to IFDI, along with the detachable form that accompanies the confirmation of a prior purchase or your year-to-date statement, or a letter stating your account number, the account registration, the Fund and the class of shares that you wish to purchase.

By telephone or internet: Instruct your bank to wire the amount you wish to invest, along with the account number and registration, to UMB Bank, n.a., ABA Number 101000695, DDA Number 98-0000-797-8. See "Buying Shares" for additional information.

By Automatic Investment Method: You can authorize to have funds electronically drawn each month from your bank account through Electronic Funds Transfer (EFT) and invested as a purchase of shares into your Fund account. Complete the appropriate sections of the Account Application.

If you purchase shares of the Fund from certain broker-dealers, banks or other authorized third parties, additional purchases may be made through those firms.

Selling Shares

You can arrange to take money out of your Fund account at any time by selling (redeeming) some or all of your shares.

The redemption price (price to sell one share of a particular class of the Fund) is the NAV per share of that Fund class, subject to any applicable CDSC and/or redemption fee.

By mail: Complete an Account Service Request form, available from your financial advisor, or write a letter of instruction with:

the name on the account registration
the Fund's name
the account number
the dollar amount or number, and the class, of shares to be redeemed
any other applicable requirements listed in the table below

Deliver the form or your letter to:

Ivy Client Services

c/o Waddell & Reed Services Company

P. O. Box 29217

Shawnee Mission, Kansas

66201-9217

Unless otherwise instructed, a check will be sent to the address on the account. For your protection, the address of record must not have been changed within 30 days prior to your redemption request.

By telephone or internet: You may redeem your shares by telephone or internet. You may request to receive payment of your redemption proceeds via direct ACH for any shares you hold, or via wire if you hold Class Y shares. To redeem your shares, call 800.777.6472, fax your request to 800.532.2749, or place your redemption order at www.ivyfunds.com, and give your instructions to redeem your shares via ACH or via wire, as applicable. You may also request a redemption by check to the address on the account (provided the address has not been changed within the last 30 days). Requests by telephone or internet can only be accepted for amounts up to $50,000.

When you place an order to sell shares, your shares will be sold at the NAV next calculated, subject to any applicable CDSC and/or redemption fee, after receipt of a written request for redemption in good order by Ivy Client Services (on behalf of Waddell & Reed Services Company) or other authorized Fund agent at the address listed above. Note the following:

If more than one person owns the shares, each owner must sign the written request.

If you recently purchased the shares by check, the Fund may delay payment of redemption proceeds. You may arrange for the bank upon which the purchase check was drawn to provide telephone or written assurance, satisfactory to the Fund, that the check has cleared and been honored. If you do not, payment of the redemption proceeds on these shares will be delayed until the earlier of ten days from the date of purchase or the date the Fund can verify that your purchase check has cleared and been honored.

Redemptions may be suspended or payment dates postponed on days when the NYSE is closed (other than weekends or holidays), when trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC).

Payment is normally made in cash, although under extraordinary conditions redemptions may be made in portfolio securities when the Fund's Board of Trustees or Board of Directors determines that conditions exist making cash payments undesirable. A Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any one shareholder.

If you purchased shares of a Fund from certain broker-dealers, banks or other authorized third parties, you may sell those shares through those firms, some of which may charge you a fee and may have additional requirements to sell Fund shares. The Fund will be deemed to have received your order to sell shares when that firm (or its designee) has received your order. Your order will receive the NAV of the redeemed Class, subject to any applicable CDSC and/or redemption fee, next calculated after the order has been received in proper form by the authorized firm (or its designee). Therefore, if your order is received in proper form by that firm before 4:00 p.m. Eastern time on a day on which the NYSE is open, you should generally receive that day's offering price. If your order is received in proper form by that firm after 4:00 p.m. Eastern time, you will receive the offering price as calculated as of the close of business of the NYSE on the next business day. You should consult that firm to determine the time by which it must receive your order for you to sell shares at that day's price.

Dealers that perform account transactions for their clients by participating in networking through the NSCC are responsible for obtaining their clients' permission to perform those transactions, and are responsible to their clients who are shareholders of the Fund if the broker-dealer performs any transaction erroneously or improperly.

Special Requirements for Selling Shares

Account Type	Special Requirements
Individual or Joint Tenant	The written instructions must be signed by all persons required to sign for transactions, exactly as their names appear on the account.
Sole Proprietorship	The written instructions must be signed by the individual owner of the business.
UGMA, UTMA	The custodian must sign the written instructions indicating capacity as custodian.
Retirement Account	The written instructions must be signed by a properly authorized person.
Trust	The trustee must sign the written instructions indicating capacity as trustee. If the trustee's name is not in the account registration, provide a currently certified copy of the trust document.
Business or Organization	At least one person authorized by corporate resolution to act on the account must sign the written instructions.
Conservator, Guardian or Other Fiduciary	The written instructions must be signed by the person properly authorized by court order to act in the particular fiduciary capacity.

A Fund may require a signature guarantee in certain situations such as:

a redemption request made by a corporation, partnership or fiduciary
a redemption request made by someone other than the owner of record
the check is made payable to someone other than the owner of record
a check redemption request if the address on the account has been changed within the last 30 days

This requirement is to protect you and the Funds from fraud. You can obtain a signature guarantee from most banks and securities dealers, but not from a notary public.

Each Fund reserves the right to redeem at NAV all of your Fund shares in your account if the aggregate NAV of those shares is less than $500. The Fund will give you notice and 60 days to purchase a sufficient number of additional shares to bring the aggregate NAV of your shares in that Fund to $500. These redemptions will not be subject to a CDSC. The Fund will not apply its redemption right to individual retirement plan accounts or to accounts which have an aggregate NAV of less than $500 due to market forces.

You may reinvest, without charge, all or part of the amount of Class A shares of a Fund you redeemed by sending to the Fund the amount you want to reinvest. The reinvested amounts must be received by the Fund within 60 days after the date of your redemption, and the reinvestment must be made into the same fund, account, and class of shares from which it had been redeemed. You may do this only once with Class A shares of a Fund.

The CDSC will not apply to the proceeds of Class A (as applicable), Class B or Class C shares of a Fund which are redeemed and then reinvested in shares of the same class of the Fund within 60 days after such redemption. IFDI will, with your reinvestment, restore an amount equal to the CDSC attributable to the amount reinvested by adding the CDSC amount to your reinvestment. For purposes of determining a future CDSC, the reinvestment will be treated as a new investment. You may do this only once as to Class A shares of a Fund, once as to Class B shares of a Fund and once as to Class C shares of a Fund. The reinvestment must be made into the same fund, account, and class of shares from which it had been redeemed. This privilege may be eliminated or modified at any time without prior notice to shareholders.

Payments of principal and interest on loans made pursuant to a 401(a) qualified plan (if such loans are permitted by the plan) may be reinvested, without payment of a sales charge, in Class A shares of any of the Funds in which the plan may invest.

Telephone Transactions

The Funds and their agents will not be liable for following instructions communicated by telephone that they reasonably believe to be genuine. WRSCO, the Funds' transfer agent, will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. If WRSCO fails to do so, WRSCO may be liable for losses due to unauthorized or fraudulent instructions. Current procedures relating to instructions communicated by telephone include tape recording instructions, requiring personal identification and providing written confirmations of transactions effected pursuant to such instructions.

Shareholder Services

We provide a variety of services to help you manage your account.

Personal Service

Your local financial advisor is available to provide personal service. Additionally, a toll-free call, 800.777.6472, connects you to a Client Services Representative or our automated customer telephone service. During normal business hours, our Client Services staff is available to answer your questions or update your account records. At almost any time of the day or night, you may access your account information from a touch-tone phone, or from our web site, www.ivyfunds.com, to:

obtain information about your accounts
obtain price information about other funds in the Ivy Family of Funds

obtain a Fund's current prospectus

request duplicate statements
transact certain account activity, including exchange privileges and redemption of shares

Reports

Statements and reports sent to you include the following:

confirmation statements (after every purchase, other than those purchases made through Automatic Investment Service, and after every exchange, transfer or redemption)
quarter-to-date statements (quarterly)
year-to-date statements (after end of fourth quarter)
annual and semiannual reports to shareholders (every six months)

To avoid sending duplicate copies of materials to households and thereby reduce expenses, only one copy of the most recent prospectus, annual and semiannual reports of the Fund may be mailed to shareholders having the same last name and address in the Fund's records. The consolidation of these mailings, called householding, benefits the Fund through reduced mailing expense. You may call the telephone number listed for Client Services if you need additional copies of the documents. You may also visit www.ivyfunds.com to view and/or download these documents, as well as other information about each Fund.

You may now elect to receive your quarterly statements and/or prospectus and shareholder reports electronically. In order to do so, go to the "Access Your Account" feature available via www.ivyfunds.com.

Exchange Privileges

Except as otherwise noted, you may sell your shares and buy shares of the same Class of another Fund in the Ivy Family of Funds without the payment of an additional sales charge if you exchange Class A shares or without payment of a CDSC when you exchange Class B or Class C shares, or certain Class A shares. For Class B and Class C shares, or Class A shares to which the CDSC would otherwise apply, the time period for the CDSC will continue to run. However, exchanges of Class A shares from Ivy Money Market Fund are subject to any sales charge applicable to the Fund being exchanged into, unless the Ivy Money Market shares were previously acquired by an exchange from Class A shares of another Ivy fund for which a sales charge was paid (or represent reinvestment of dividends and distributions paid on such shares). You may sell your Class Y shares of any of the Funds and buy Class Y shares of another Fund or Class A shares of Ivy Money Market Fund.

For clients of Waddell & Reed and Legend, these exchange privileges also apply to the corresponding classes of shares of funds within the Waddell & Reed Advisors Family of Funds.

As of December 1, 2003, Class B and Class C shares of Ivy Money Market Fund are not available for direct investment; therefore, you may now utilize Class A shares of Ivy Money Market Fund for your Funds Plus Service into Class A, B or C shares of a non-money market fund. Please see the SAI for additional information.

You may exchange only into Funds that are legally permitted for sale in your state of residence. Currently, each fund within the Ivy Family of Funds may only be sold within the United States and the Commonwealth of Puerto Rico, except that Ivy Cundill Global Value Fund, Ivy Global Natural Resources Fund and Ivy Pacific Opportunities Fund are not eligible for sale in the Commonwealth of Puerto Rico. Note that exchanges out of a Fund may have tax consequences for you. Before exchanging into a Fund, read its prospectus.

Important Exchange Information

You must exchange into the same share class you currently own (except that you may exchange Class Y shares of any of the Funds for Class A shares of Ivy Money Market Fund, and in certain situations you may exchange Class A shares of Ivy Money Market Fund for Class B or Class C shares of any of the other Funds).
Exchanges are considered taxable events and may result in a capital gain or a capital loss for tax purposes.

How to Exchange

By mail: Send your written exchange request to Ivy Client Services at the address listed under "Selling Shares."

By telephone: Call IFDI at 800.777.6472 to authorize an exchange transaction. To process your exchange order by telephone, you must have telephone exchange privileges on your account. IFDI employs reasonable procedures that require personal identification prior to acting on exchange instructions communicated by telephone to confirm that such instructions are genuine. In the absence of such procedures, the Fund or IFDI may be liable for any losses due to unauthorized or fraudulent telephone instructions.

By internet: You will be allowed to exchange by internet if (1) you can provide proper identification information; and (2) you have established the internet trading option.

Market Timing Policy

The Funds are intended for long-term investment purposes. The Funds will take steps to seek to deter frequent purchases and redemptions in Fund shares (market timing activities). Market timing activities, especially those involving large dollar amounts, may disrupt portfolio investment management and may increase expenses and negatively impact investment returns for all Fund shareholders, including long-term shareholders. Market timing activities may also increase the expenses of WRSCO and/or IFDI, thereby indirectly affecting the Fund's shareholders.

Certain Funds may be more attractive to investors seeking to engage in market timing activities. For example, to the extent that a Fund, such as Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Fund, Ivy International Balanced Fund, Ivy International Growth Fund, Ivy International Value Fund and Ivy Pacific Opportunities Fund, invests a significant portion of its assets in foreign securities, the Fund may be susceptible to a time zone arbitrage strategy in which investors seek to take advantage of Fund share prices that may not reflect developments in foreign securities markets that occurred after the close of such market but prior to the pricing of Fund shares. A Fund that invests in securities that are, among other things, thinly traded or traded infrequently is susceptible to the risk that the current market price for such securities may not accurately reflect current market values. An investor may seek to engage in short-term tradi ng to take advantage of these pricing differences (commonly referred to as price arbitrage). Price arbitrage is more likely to occur in a Fund that invests a significant portion of its assets in small cap companies, such as Ivy Small Cap Growth Fund or Ivy Small Cap Value Fund.

To discourage market timing activities by investors, the Funds' Board of Trustees or Board of Directors has adopted a market timing policy and has approved the procedures of the Funds' transfer agent, WRSCO, for implementing this policy. WRSCO's procedures reflect the criteria that it has developed for purposes of identifying trading activity in Fund shares that may be indicative of market timing activities and outline how it will monitor transactions in Fund shares. In its monitoring of trading activity in Fund shares, on a periodic basis, WRSCO typically reviews Fund share transactions that exceed certain monetary thresholds and/or numerical transaction limits within a particular time period. In its attempt to identify market timing activities, WRSCO considers many factors, including (but not limited to) the frequency, size and/or timing of the investor' s transactions in Fund shares. As an additional step, WRSCO reviews internal monthly reporting of a Fund's overall redemption activity in relation to average assets and purchases within the period. If WRSCO identifies what it believes to be market timing activities, WRSCO and/or IFDI will, for clients of Waddell & Reed (including those shareholders that do not utilize any financial intermediary), send a letter to the shareholder to state that we are suspending exchange privileges and will refuse to accept additional purchases in the account. For trading via the NSCC we will, if possible, place a trading block on our system at a dealer-branch level or, if that cannot be accomplished, we will contact the associated broker-dealers and request that they block further trading. The letter will inform the shareholder that he/she may request the reinstatement of exchange privileges and the ability to make additional investments, after a prescribed period of time. In exercising any of the foregoing rights, W RSCO will consider the trading history of accounts under common ownership or control within any of the Waddell & Reed and/or Ivy Funds. For this purpose, transactions placed through the same financial intermediary on an omnibus basis may be deemed a part of a group and may be rejected in whole or in part. Transactions placed in violation of a Fund's market timing policy are not deemed accepted by the Fund and may be cancelled or revoked by the Fund on the next business day following receipt by the Fund.

A Fund seeks to apply its market timing policy consistently to all shareholders and prospective investors. Although the Funds, IFDI and WRSCO make efforts to monitor for market timing activities and will seek the assistance of financial intermediaries through which Fund shares are purchased or held, the Funds cannot always identify or detect excessive trading that may be facilitated by financial intermediaries or that are difficult to identify when effected through omnibus accounts maintained by those intermediaries because the intermediary maintains the underlying shareholder account. Under these circumstances, the Fund cannot identify transactions by underlying investors. Accordingly, there can be no assurance that the Funds will be able to eliminate all market timing activities.

Due to the complexity and subjectivity involved in identifying market timing activities and the volume of shareholder transactions that WRSCO processes, there can be no assurance that the Fund's and WRSCO's policies and procedures will identify all trades or trading practices that may be considered market timing activity. WRSCO may modify its procedures for implementing the Funds' market timing policy and/or its monitoring criteria at any time without prior notice. The Fund, WRSCO and/or IFDI shall not be liable for any loss resulting from rejected purchase orders or exchanges.

A Fund's market timing policy, in conjunction with the use of fair value pricing and application of the redemption fee, is intended to reduce a shareholder' s ability to engage in market timing activities, although there can be no assurance that a Fund will eliminate market timing activities.

Redemption Fee/Exchange Fee

To further discourage the use of the Funds as a vehicle for excessive short-term trading, each of the international funds will deduct a redemption fee of 2.00% from any redemption or exchange proceeds if you sell or exchange your shares of that Fund after holding the shares fewer than 30 days. Each of the non-international funds will deduct a redemption fee of 2.00% from any redemption or exchange proceeds if you sell or exchange your shares of that Fund after holding the shares fewer than five days. If you bought your shares on different days, the "first-in, first out" (FIFO) method is used to determine the holding period. Under this method, the shares you held longest will be redeemed first for purposes of determining whether the redemption fee applies. These fees are paid directly to the Fund.

A Fund's redemption fee will not be assessed against:

1.	certain omnibus accounts and retirement plan accounts where the omnibus account holder or the retirement plan administrator does not have the capability to impose a redemption fee on its underlying customers' accounts; and certain intermediaries that do not have, or report to the Funds, sufficient information to impose a redemption fee on their customers' accounts

2.	(i) premature distributions from retirement accounts due to the disability of the participant; (ii) minimum required distributions from retirement accounts; (iii) return of excess contributions in retirement accounts where the excess is reinvested into the Fund; (iv) redemptions resulting in the settlement of an estate due to the death of the shareholder; and (v) reinvested distributions (dividends and capital gains)

3.	shareholder accounts participating in Strategic Portfolio Allocation (SPA), Managed Allocation Portfolios (MAP) and/or Strategic Asset Management (SAM) advisory services that may periodically rebalance mutual fund holdings at regular intervals or in response to prevailing economic, political and/or financial conditions, as determined by the investment advisor for the advisory service.

4.	shareholder accounts participating in certain other asset allocation programs in which the sponsoring institution has agreed to monitor for frequent trading activity and, when operationally possible, to assess applicable redemption fees on the Funds' behalf.

In addition to these waivers, each Fund reserves the right to waive the redemption fee at its discretion where it believes such waiver is in the best interests of the Fund, including but not limited to when it determines that imposition of the redemption fee is not necessary to protect the Fund from the effects of excessive short-term trading. In addition, each Fund reserves the right to modify or eliminate the redemption fee or waivers at any time.

Certain intermediaries have agreed to charge a Fund's redemption fee on their customers' accounts. In this case, the amount of the fee and the holding period will generally be consistent with the Fund's criteria. However, due to operational requirements, the intermediaries' methods for tracking and calculating the fee may differ in some respects from the Fund's method. For Fund shares purchased through a financial intermediary, investors should contact their financial intermediary or refer to their plan documents for more information on how the redemption fee is applied to their shares.

Automatic Transactions for Class A, Class B and Class C Shareholders

Regular Investment Plans allow you to transfer money into your Fund account, or between Fund accounts, automatically. While Regular Investment Plans do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses and other long-term financial goals.

Systematic Withdrawal Plan lets you set up ongoing monthly, quarterly, semiannual or annual redemptions from your account. Please see the SAI for additional information.

Certain restrictions and fees imposed by the plan custodian may also apply for retirement accounts. Speak with your financial advisor for more information.

Regular Investment Plans

Automatic Investment Service
To move money from your bank account to an existing Fund account
	Minimum Amount	Frequency
	$25 (per Fund)	Monthly

Funds Plus Service
To move money from Ivy Money Market Fund Class A to a Fund whether in the same or a different class
	Minimum Amount	Frequency
	$100 (per Fund)	Monthly

Distributions and Taxes

Distributions

Each Fund distributes substantially all of its net investment income and net capital gains to its shareholders each year. Usually, a Fund distributes net investment income at the following times:

Annually in December: Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Fund, Ivy International Growth Fund, Ivy International Value Fund, Ivy Large Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Pacific Opportunities Fund, Ivy Science and Technology Fund and Ivy Small Cap Growth Fund

Quarterly in March, June, September and December: Ivy Asset Strategy Fund, Ivy Balanced Fund, Ivy Dividend Income Fund, Ivy International Balanced Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund and Ivy Value Fund

Net capital gains (and any net gains from foreign currency transactions) ordinarily are distributed by each Fund in December. Ordinarily, dividends are paid on shares starting on the day after they are issued and through the day they are redeemed.

Distribution Options. When you open an account, you may specify on your application how you want to receive your distributions. Each Fund offers two options:

1.	Share Payment Option. Your dividends, capital gains and other distributions with respect to a class will be automatically paid in additional shares of the same class of the Fund. If you do not indicate a choice on your application, you will be assigned this option.

2.	Cash Option. You will be sent a check for your dividends, capital gains and other distributions if the total distribution is at least five dollars. If the distribution is less than five dollars, it will be automatically paid in additional shares of the same class of the Fund.

For retirement accounts and accounts participating in MAP or SPA, all distributions are automatically paid in additional shares.

Taxes

As with any investment, you should consider how your investment in a Fund will be taxed. If your account is not a retirement account or other tax-advantaged savings plan (or you are not otherwise exempt from income tax), you should be aware of the following tax implications:

Taxes on distributions. You may be subject to tax as a result of income generated at the Fund level, to the extent the Fund makes actual or deemed distributions of such income to you. Dividends from the Fund's investment company taxable income (which includes net short-term capital gains and net gains from certain foreign currency transactions), if any, generally are taxable to you as ordinary income whether received in cash or paid in additional Fund shares, unless such dividends are "qualified dividend income" eligible for the reduced rate of tax on long-term capital gains, as described below. Distributions of the Fund's net capital gains (the excess of net long-term capital gains over net short-term capital loss), when designated as such, are taxable to you as long-term capital gains, whether received in cash or paid in additional Fund shares and regardless of the length of time you have owned your shares. For Federal income tax purposes, long-term capital gains generally are taxed at a maximum rate of 15% for noncorporate shareholders. As a result of changes made by the Jobs and Growth Tax Relief Reconciliation Act of 2003, "qualified dividend income" received by noncorporate shareholders who satisfy certain holding period requirements with respect to their Fund shares is taxed as net capital gain. The portion of the dividends that the Fund pays which is attributable to qualified dividend income received by the Fund will qualify for such treatment in the hands of noncorporate shareholders of the Fund who satisfy certain holding period requirements with respect to their Fund shares.

Each Fund notifies you after each calendar year-end as to the amounts of dividends and other distributions paid (or deemed paid) to you for that year.

A portion of the dividends paid by a Fund, whether received in cash or paid in additional Fund shares, may be eligible for the dividends received deduction allowed to corporations. The eligible portion may not exceed the aggregate dividends received by a Fund from U.S. corporations. However, dividends received by a corporate shareholder and deducted by it pursuant to the dividends received deduction are subject indirectly to the Federal alternative minimum tax.

Taxes on transactions. Your redemption of Fund shares will result in a taxable gain or loss to you, depending on whether the redemption proceeds are more or less than what you paid for the redeemed shares (which normally includes any sales charge paid).

An exchange of Fund shares for shares of any other fund in the Ivy Family of Funds generally will have similar tax consequences. However, special rules apply when you dispose of a Fund's Class A shares through a redemption or exchange within 90 days after your purchase and then reacquire Class A shares of that Fund or acquire Class A shares of another fund in the Ivy Family of Funds without paying a sales charge due to the 60-day reinvestment privilege or exchange privilege. See "Your Account--Selling Shares." In these cases, any gain on the disposition of the original Class A Fund shares will be increased, or loss decreased, by the amount of the sales charge you paid when those shares were acquired, and that amount will increase the adjusted basis of the shares you subsequently acquire. In addition, if you purchase shares of a Fund within 30 days before or after redeeming other shares of the Fund (regardless of class) at a loss, part or all of that loss will not be deductible and will increase the ba sis of the newly purchased shares.

Withholding. Each Fund must withhold a portion of all dividends and capital gains distributions and redemption proceeds payable to individuals and certain other noncorporate shareholders who do not furnish the Fund with a correct taxpayer identification number. Withholding is also required from dividends and capital gains distributions payable to shareholders who are otherwise subject to backup withholding.

State and local income taxes. The portion of the dividends a Fund pays that is attributable to interest earned on U.S. government securities generally is not subject to state and local income taxes, although distributions by any Fund to its shareholders of net realized gains on the sale of those securities are fully subject to those taxes. You should consult your tax adviser to determine the taxability in your state and locality of dividends and other distributions by the Funds.

The foregoing is only a summary of some of the important tax considerations generally affecting each Fund and its shareholders; you will find more information in each Fund's SAI. There may be other Federal, state or local tax considerations applicable to a particular investor. You are urged to consult your own tax adviser.

Financial Highlights

The following information is to help you understand the financial performance of each of the classes of each Fund for the fiscal periods shown. Certain information reflects financial results for a single Fund share. Total return shows how much your investment would have increased (or decreased) during each period, assuming reinvestment of all dividends and distributions. Except as noted below, tThis information has been audited by Deloitte & Touche, LLP, whose Reports of Independent Registered Public Accounting Firm, along with each Fund's financial statements for the fiscal year ended March 31, 2005, are included in the Funds' Annual Reports to Shareholders which areis incorporated by reference into eachits Statement of Additional Information. The financial highlights of Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund and Ivy Value Fund for each of the periods ended July 31, 2003 and prior; Ivy Balanced Fund and Ivy International Balanced Fund for each of the periods presented in the fo ur-year period ended September 30, 2003; and Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Fund, Ivy International Value Fund and Ivy Pacific Opportunities Fund for each of the periods presented in the two-year period ended December 31, 2001 were audited by other auditors whose reports expressed unqualified opinions on those financial highlights. The annual report contains additional performance information and will be made available upon request and without charge.

IVY ASSET STRATEGY FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$12.86	$0.06	$1.47	$1.53	($0.07)	($0.11)	(0.18)	$14.21
4-1-03 to 3-31-04	11.18	0.08	1.71	1.79	(0.11)	(0.00)	(0.11)	12.86
4-1-02 to 3-31-03	11.33	0.16	(0.16)	(0.00)	(0.15)	(0.00)	(0.15)	11.18
4-1-01 to 3-31-02	11.98	0.25	(0.40)	(0.15)	(0.30)	(0.20)	(0.50)	11.33
7-10-00* to 3-31-01	15.22	0.15	(0.60)	(0.45)	(0.13)	(2.66)	(2.79)	11.98
Class B
4-1-04 to 3-31-05	$12.83	($0.03)	$1.44	$1.41	($0.02)	($0.11)	($0.13)	$14.11
4-1-03 to 3-31-04	11.17	(0.03)	1.71	1.68	(0.02)	(0.00)	(0.02)	12.83
4-1-02 to 3-31-03	11.32	0.05	(0.15)	(0.10)	(0.05)	(0.00)	(0.05)	11.17
4-1-01 to 3-31-02	11.97	0.17	(0.41)	(0.24)	(0.21)	(0.20)	(0.41)	11.32
7-3-00* to 3-31-01	15.21	0.07	(0.60)	(0.53)	(0.05)	(2.66)	(2.71)	11.97
Class C
4-1-04 to 3-31-05	$12.83	($0.03)	$1.45	$1.42	($0.02)	($0.11)	($0.13)	$14.12
4-1-03 to 3-31-04	11.17	(0.03)	1.73	1.70	(0.04)	(0.00)	(0.04)	12.83
4-1-02 to 3-31-03	11.32	0.05	(0.14)	(0.09)	(0.06)	(0.00)	(0.06)	11.17
4-1-01 to 3-31-02	11.97	0.19	(0.43)	(0.24)	(0.21)	(0.20)	(0.41)	11.32
4-1-00 to 3-31-01	15.21	0.11	(0.62)	(0.51)	(0.07)	(2.66)	(2.73)	11.97
Class Y
4-1-04 to 3-31-05	$12.87	$0.08	$1.45	$1.53	($0.07)	($0.11)	($0.18)	$14.22
4-1-03 to 3-31-04	11.18	0.09	1.71	1.80	(0.11)	(0.00)	(0.11)	12.87
4-1-02 to 3-31-03	11.33	0.11	(0.10)	0.01	(0.16)	(0.00)	(0.16)	11.18
4-1-01 to 3-31-02	11.98	0.28	(0.42)	(0.14)	(0.31)	(0.20)	(0.51)	11.33
4-1-00 to 3-31-01	15.26	0.24	(0.63)	(0.39)	(0.23)	(2.66)	(2.89)	11.98

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	12.02%	^a	$39	1.44%		0.56%		98%
4-1-03 to 3-31-04	16.06%	^a	17	1.47%		0.53%		254%
4-1-02 to 3-31-03	0.00%	^a	9	1.40%		1.23%		109%
4-1-01 to 3-31-02	- -1.25%	^a	4	1.45%		2.28%		143%
7-10-00* to 3-31-01	- -3.77%	^a	2	1.26%	^b	2.26%	^b	215%	^c
Class B
4-1-04 to 3-31-05	11.02%		$11	2.30%		- -0.30%		98%
4-1-03 to 3-31-04	15.07%		7	2.38%		- -0.40%		254%
4-1-02 to 3-31-03	- -0.92%		3	2.35%		0.31%		109%
4-1-01 to 3-31-02	- -2.03%		3	2.25%		1.50%		143%
7-3-00* to 3-31-01	- -4.35%		2	2.15%	^b	1.37%	^b	215%	^c
Class C
4-1-04 to 3-31-05	11.11%		$55	2.21%		- -0.22%		98%
4-1-03 to 3-31-04	15.21%		49	2.27%		- -0.26%		254%
4-1-02 to 3-31-03	- -0.79%		51	2.20%		0.46%		109%
4-1-01 to 3-31-02	- -1.98%		47	2.20%		1.59%		143%
4-1-00 to 3-31-01	- -4.22%		54	2.15%		0.86%		215%
Class Y
4-1-04 to 3-31-05	12.05%		$4	1.35%		0.66%		98%
4-1-03 to 3-31-04	16.19%		2	1.39%		0.67%		254%
4-1-02 to 3-31-03	0.08%		1	1.32%		1.34%		109%
4-1-01 to 3-31-02	- -1.14%		1	1.33%		2.44%		143%
4-1-00 to 3-31-01	- -3.39%		1	1.32%		1.71%		215%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)For the fiscal year ended March 31, 2001.

IVY BALANCED FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income		From Realized Gains	Total Distributions		Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$13.35	$0.14	$0.65	$0.79	($0.14)		($0.00)	($0.14)		$14.00
10-1-03 to 3-31-04	12.18	0.05	1.16	1.21	(0.04)		(0.00)	(0.04)		13.35
10-1-02 to 9-30-03	10.54	0.16	1.64	1.80	(0.16)		(0.00)	(0.16)		12.18
10-1-01 to 9-30-02	11.45	0.23	(0.89)	(0.66)	(0.25)		(0.00)	(0.25)		10.54
10-1-00 to 9-30-01	19.73	0.22	(6.08)	(5.86)	(0.20)		(2.22)	(2.42)		11.45
10-1-99 to 9-30-00	17.88	0.31	2.55	2.86	(0.30)		(0.71)	(1.01)		19.73
Class B
4-1-04 to 3-31-05	$13.33	$0.01	$0.64	$0.65	($0.00)	^e	($0.00)	($0.00)	^e	$13.98
12-8-03* to 3-31-04	12.96	0.01	0.39	0.40	(0.03)		(0.00)	(0.03)		13.33
Class C
4-1-04 to 3-31-05	$13.34	$0.03	$0.63	$0.66	($0.02)		($0.00)	($0.02)		$13.98
12-8-03* to 3-31-04	12.96	0.02	0.39	0.41	(0.03)		(0.00)	(0.03)		13.34
Class Y
4-1-04 to 3-31-05	$13.35	$0.17	$0.65	$0.82	($0.17)		($0.00)	($0.17)		$14.00
12-8-03* to 3-31-04	12.96	0.04	0.40	0.44	(0.05)		(0.00)	(0.05)		13.35

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary ExpenseWaiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	5.90%	^a	$54	1.53%		N/A		1.02%		N/A		37%
10-1-03 to 3-31-04	10.06%	^a	52	1.52%	^b,c	1.57%	^b,c	0.86%	^b,c	0.81%	^b,c	29%
10-1-02 to 9-30-03	17.17%	^a,d	38	1.29%		1.62%		1.41%		1.08%		110%
10-1-01 to 9-30-02	- -5.91%	^a	37	1.22%		1.52%		1.84%		1.54%		129%
10-1-00 to 9-30-01	- -32.35%	^a	45	1.12%		1.40%		1.57%		1.29%		158%
10-1-99 to 9-30-00	16.22%	^a	78	1.11%		1.20%		1.58%		1.49%		132%
Class B
4-1-04 to 3-31-05	4.90%		$1.50	2.52%		N/A		0.06%		N/A		37%
12-8-03* to 3-31-04	3.05%		0.34	2.76%	^b	N/A		- -0.42%	^b	N/A		29%	^f
Class C
4-1-04 to 3-31-05	4.98%		$0.90	2.38%		N/A		0.19%		N/A		37%
12-8-03* to 3-31-04	3.13%		0.30	2.43%	^b	N/A		- -0.12%	^b	N/A		29%	^f
Class Y
4-1-04 to 3-31-05	6.16%		$44	1.30%		N/A		1.25%		N/A		37%
12-8-03* to 3-31-04	3.43%		53	1.36%	^b	N/A		0.97%	^b	N/A		29%	^f

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)In connection with the reorganization plan effected Decemer 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from October 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(d)Advantus Capital reimbursed the Fund for losses related to certain investment trades. With reimbursed losses, the total return for Class A, for the year ended September 30, 2003, would have been 17.26%.

(e)Not shown due to rounding.

(f)For the six months ended March 31, 2004.

IVY CAPITAL APPRECIATION FUND ^a

		Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$7.52	($0.02)	$0.49	$0.47	($0.00)	($0.00)	($0.00)	$7.99
4-1-03 to 3-31-04	5.73	(0.06)	1.85	1.79	(0.00)	(0.00)	(0.00)	7.52
4-1-02 to 3-31-03	6.43	(0.03)	(0.67)	(0.70)	(0.00)	(0.00)	(0.00)	5.73
4-1-01 to 3-31-02	7.19	(0.08)	(0.68)	(0.76)	(0.00)	(0.00)	(0.00)	6.43
6-30-00* to 3-31-01	10.00	0.00	(2.81)	(2.81)	(0.00)	(0.00)	(0.00)	7.19
Class B
4-1-04 to 3-31-05	$7.26	($0.01)	$0.37	$0.36	($0.00)	($0.00)	($0.00)	$7.62
4-1-03 to 3-31-04	5.58	(0.09)	1.77	1.68	(0.00)	(0.00)	(0.00)	$7.26
4-1-02 to 3-31-03	6.31	(0.11)	(0.62)	(0.73)	(0.00)	(0.00)	(0.00)	5.58
4-1-01 to 3-31-02	7.12	(0.13)	(0.68)	(0.81)	(0.00)	(0.00)	(0.00)	6.31
7-13-00* to 3-31-01	10.06	(0.05)	(2.89)	(2.94)	(0.00)	(0.00)	(0.00)	7.12
Class C
4-1-04 to 3-31-05	$7.24	$0.03	$0.33	$0.36	($0.00)	($0.00)	($0.00)	$7.60
4-1-03 to 3-31-04	5.57	(0.11)	1.78	1.67	(0.00)	(0.00)	(0.00)	7.24
4-1-02 to 3-31-03	6.32	(0.12)	(0.63)	(0.75)	(0.00)	(0.00)	(0.00)	5.57
4-1-01 to 3-31-02	7.13	(0.19)	(0.62)	(0.81)	(0.00)	(0.00)	(0.00)	6.32
7-6-00* to 3-31-01	10.01	(0.06)	(2.82)	(2.88)	(0.00)	(0.00)	(0.00)	7.13
Class Y
9-15-04* to 3-31-05	$7.33	$0.03	$0.63	$0.66	($0.00)	($0.00)	($0.00)	$7.99

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	6.25%	^b	$11	1.19%		1.84%		0.03%		- -0.62%		62%
4-1-03 to 3-31-04	31.24%	^b	6	1.47%		2.12%		- -1.05%		- -1.70%		115%
4-1-02 to 3-31-03	- -10.89%	^b	4	1.50%		2.15%		- -0.67%		- -1.32%		145%
4-1-01 to 3-31-02	- -10.57%	^b	4	1.62%		2.17%		- -0.92%		- -1.46%		96%
6-30-00* to 3-31-01	- -28.10%	^b	4	1.27%	^c	1.80%	^c	- -0.09%	^c	- -0.62%	^c	73%
Class B
4-1-04 to 3-31-05	4.96%		$1.07	2.03%		2.68%		- -0.81%		- -1.46%		62%
4-1-03 to 3-31-04	30.11%		0.54	2.28%		2.93%		- -1.87%		- -2.52%		115%
4-1-02 to 3-31-03	- -11.57%		0.25	2.47%		3.12%		- -1.63%		- -2.28%		145%
4-1-01 to 3-31-02	- -11.38%		0.36	2.56%		3.42%		- -1.86%		- -2.71%		96%
7-13-00* to 3-31-01	- -29.22%		0.30	2.45%	^c	3.48%	^c	- -1.74%	^c	- -2.77%	^c	73%
Class C
4-1-04 to 3-31-05	4.97%		$2.37	2.15%		2.80%		- -0.96%		- -1.61%		62%
4-1-03 to 3-31-04	29.98%		1.37	2.46%		3.11%		- -2.05%		- -2.70%		115%
4-1-02 to 3-31-03	- -11.87%		0.69	2.64%		3.29%		- -1.81%		- -2.46%		145%
4-1-01 to 3-31-02	- -11.36%		0.87	2.76%		3.69%		- -2.07%		- -2.99%		96%
7-6-00* to 3-31-01	- -28.77%		0.00	2.35%	^c	3.34%	^c	- -1.52%	^c	- -2.50%	^c	73%
Class Y
9-15-04* to 3-31-05	9.00%		$0.11	1.11%	^c	1.76%	^c	0.47%	^c	- -0.18%	^c	62%	^d

*Commencement of operations of the class.

(a)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.

(b)Total return calculated without taking into account the sales load deducted on an initial purchase.

(c)Annualized.

(d)For the fiscal year ended March 31, 2005.

IVY CORE EQUITY FUND ^a

		Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$8.08	$0.02	$0.93	$0.95	($0.00)	($0.00)	($0.00)	$9.03
4-1-03 to 3-31-04	6.63	0.01	1.44	1.45	(0.00)	(0.00)	(0.00)	8.08
4-1-02 to 3-31-03	8.89	(0.08)	(2.18)	(2.26)	(0.00)	(0.00)	(0.00)	6.63
4-1-01 to 3-31-02	9.51	(0.20)	(0.11)	(0.31)	(0.00)	(0.31)	(0.31)	8.89
7-3-00* to 3-31-01	13.89	(0.00)	(2.00)	(2.00)	(0.00)	(2.38)	(2.38)	9.51
Class B
4-1-04 to 3-31-05	$7.78	($0.07)	$0.92	$0.85	($0.00)	($0.00)	($0.00)	$8.63
4-1-03 to 3-31-04	6.45	(0.05)	1.38	1.33	(0.00)	(0.00)	(0.00)	7.78
4-1-02 to 3-31-03	8.74	(0.06)	(2.23)	(2.29)	(0.00)	(0.00)	(0.00)	6.45
4-1-01 to 3-31-02	9.44	(0.14)	(0.25)	(0.39)	(0.00)	(0.31)	(0.31)	8.74
7-11-00* to 3-31-01	14.10	(0.05)	(2.23)	(2.28)	(0.00)	(2.38)	(2.38)	9.44
Class Ce
4-1-04 to 3-31-05	$7.82	($0.06)	$0.92	$0.86	($0.00)	($0.00)	($0.00)	$8.68
4-1-03 to 3-31-04	6.48	(0.04)	1.38	1.34	(0.00)	(0.00)	(0.00)	7.82
4-1-02 to 3-31-03	8.76	(0.04)	(2.24)	(2.28)	(0.00)	(0.00)	(0.00)	6.48
4-1-01 to 3-31-02	9.45	(0.08)	(0.30)	(0.38)	(0.00)	(0.31)	(0.31)	8.76
4-1-00 to 3-31-01	13.76	(0.11)	(1.82)	(1.93)	(0.00)	(2.38)	(2.38)	9.45
Class Y
4-1-04 to 3-31-05	$8.37	$0.25	$0.76	$1.01	($0.00)	($0.00)	($0.00)	$9.38
4-1-03 to 3-31-04	6.86	0.05	1.46	1.51	(0.00)	(0.00)	(0.00)	8.37
4-1-02 to 3-31-03	9.19	0.04	(2.37)	(2.33)	(0.00)	(0.00)	(0.00)	6.86
4-1-01 to 3-31-02	9.82	(0.11)	(0.21)	(0.32)	(0.00)	(0.31)	(0.31)	9.19
4-1-00 to 3-31-01	14.08	(0.04)	(1.84)	(1.88)	(0.00)	(2.38)	(2.38)	9.82

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	11.76%	^b	$65	1.50%		0.07%		42%
4-1-03 to 3-31-04	21.87%	^b	75	1.46%		0.24%		59%
4-1-02 to 3-31-03	- -25.42%	^b	13	1.31%		0.28%		39%
4-1-01 to 3-31-02	- -3.18%	^b	9	1.26%		- -0.11%		22%
7-3-00* to 3-31-01	- -16.72%	^b	4	1.18%	^c	- -0.11%	^c	39%	^d
Class B
4-1-04 to 3-31-05	10.93%		$12	2.36%		- -0.77%		42%
4-1-03 to 3-31-04	20.62%		12	2.42%		- -0.66%		59%
4-1-02 to 3-31-03	- -26.20%		5	2.36%		- -0.76%		39%
4-1-01 to 3-31-02	- -4.06%		6	2.18%		- -1.04%		22%
7-11-00* to 3-31-01	- -18.50%		5	2.11%	^c	- -1.02%	^c	39%	^d
Class Ce
4-1-04 to 3-31-05	11.00%		$183	2.22%		- -0.63%		42%
4-1-03 to 3-31-04	20.68%		200	2.27%		- -0.45%		59%
4-1-02 to 3-31-03	- -26.03%		200	2.18%		- -0.58%		39%
4-1-01 to 3-31-02	- -3.94%		356	2.05%		- -0.91%		22%
4-1-00 to 3-31-01	- -16.40%		440	1.97%		- -0.93%		39%
Class Y
4-1-04 to 3-31-05	12.07%		$2	1.24%		0.34%		42%
4-1-03 to 3-31-04	22.01%		2	1.26%		0.61%		59%
4-1-02 to 3-31-03	- -25.35%		2	1.20%		0.40%		39%
4-1-01 to 3-31-02	- -3.18%		4	1.17%		- -0.03%		22%
4-1-00 to 3-31-01	- -15.62%		2	1.15%		- -0.11%		39%

*Commencement of operations of the class.

(a)Core Equity Fund (formerly Total Return Fund) changed its name effective October 2, 2000.

(b)Total return calculated without taking into account the sales load deducted on an initial purchase.

(c)Annualized.

(d)For the fiscal year ended March 31, 2001.

IVY CUNDILL GLOBAL VALUE FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations				Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$12.57	$0.04		$1.25	$1.29	($0.07)	($0.00)	($0.07)	$13.79
1-1-04 to 3-31-04	11.41	0.01		1.15	1.16	(0.00)	(0.00)	(0.00)	12.57
1-1-03 to 12-31-03	8.39	0.01		3.05	3.06	(0.04)	(0.00)	(0.04)	11.41
1-1-02 to 12-31-02	9.64	(0.00)	^c	(1.17)	(1.17)	(0.00)	(0.08)	(0.08)	8.39
9-4-01* to 12-31-01	10.15	0.01		(0.23)	(0.22)	(0.02)	(0.27)	(0.29)	9.64
Class B
4-1-04 to 3-31-05	$12.38	($0.01)		$1.17	$1.16	($0.00)	($0.00)	($0.00)	$13.54
1-1-04 to 3-31-04	11.26	(0.02)		1.14	1.12	(0.00)	(0.00)	(0.00)	12.38
1-1-03 to 12-31-03	8.32	(0.06)		3.00	2.94	(0.00)	(0.00)	(0.00)	11.26
1-1-02 to 12-31-02	9.61	(0.05)	^c	(1.16)	(1.21)	(0.00)	(0.08)	(0.08)	8.32
9-26-01* to 12-31-01	9.26	0.01		0.62	0.63	(0.02)	(0.26)	(0.28)	9.61
Class C
4-1-04 to 3-31-05	$12.30	($0.02)		$1.20	$1.18	($0.00)	($0.00)	($0.00)	$13.48
1-1-04 to 3-31-04	11.19	(0.01)		1.12	1.11	(0.00)	(0.00)	(0.00)	12.30
1-1-03 to 12-31-03	8.26	(0.03)		2.96	2.93	(0.00)	(0.00)	(0.00)	11.19
1-1-02 to 12-31-02	9.57	(0.07)	^c	(1.16)	(1.23)	(0.00)	(0.08)	(0.08)	8.26
10-19-01* to 12-31-01	9.44	0.01		0.40	0.41	(0.02)	(0.26)	(0.28)	9.57
Class Y
4-1-04 to 3-31-05	$12.58	$0.07		$1.29	$1.36	($0.12)	($0.00)	($0.12)	$13.82
1-1-04 to 3-31-04	11.40	(0.01)		1.19	1.18	(0.00)	(0.00)	(0.00)	12.58
7-24-03* to 12-31-03	9.84	0.02		1.58	1.60	(0.04)	(0.00)	(0.04)	11.40

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets with Reimbursement		Ratio of Expenses to Average Net Assets without Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets with Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets without Reimbursement		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	10.29%	^a	$320.75	1.74%		- -		0.08%		- -		5%
1-1-04 to 3-31-04	10.17%	^a	58.68	1.70%	^b	1.84%	^b	- -0.09%	^b	- -0.23%	^b	1%
1-1-03 to 12-31-03	36.43%	^a	29.53	2.05%		2.21%		0.18%		0.02%		24%
1-1-02 to 12-31-02	- -12.17%	^a	1.40	2.28%		4.97%		0.02%		- -2.67%		122%
9-4-01* to 12-31-01	- -2.07%	^a	0.21	4.47%	^b	31.77%	^b	0.94%	^b	- -26.36%	^b	57%	^d
Class B
4-1-04 to 3-31-05	9.37%		$37	2.62%		- -		- -0.86%		- -		5%
1-1-04 to 3-31-04	9.95%		12	2.52%	^b	2.67%	^b	- -1.31%	^b	- -1.46%	^b	1%
1-1-03 to 12-31-03	35.34%		7	3.20%		3.36%		- -1.13%		- -1.29%		24%
1-1-02 to 12-31-02	- -12.62%		2	2.84%		5.53%		- -0.54%		- -3.23%		122%
9-26-01* to 12-31-01	6.91%		1	6.04%	^b	39.53%	^b	0.60%	^b	- -32.89%	^b	57%	^d
Class C
4-1-04 to 3-31-05	9.59%		$96.38	2.42%		- -		- -0.62%		- -		5%
1-1-04 to 3-31-04	9.92%		23.84	2.35%	^b	2.50%	^b	- -1.09%	^b	- -1.23%	^b	1%
1-1-03 to 12-31-03	35.47%		11.24	2.93%		3.10%		- -0.83%		- -1.00%		24%
1-1-02 to 12-31-02	- -12.88%		0.45	3.10%		5.79%		- -0.80%		- -3.49%		122%
10-19-01* to 12-31-01	4.44%		0.03	7.71%	^b	51.61%	^b	0.99%	^b	- -42.91%	^b	57%	^d
Class Y
4-1-04 to 3-31-05	10.90%		$10	1.20%		1.56%		0.52%		0.16%		5%
1-1-04 to 3-31-04	10.35%		2	1.20%	^b	1.80%	^b	- -0.32%	^b	- -0.92%	^b	1%
7-24-03* to 12-31-03	16.28%		1	1.76%	^b	2.09%	^b	0.55%	^b	0.22%	^b	24%	^e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)Based on average shares outstanding.

(d)For the 12 months ended December 31, 2001.

(e)For the 12 months ended December 31, 2003.

IVY DIVIDEND INCOME FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$11.07	$0.09	$1.10	$1.19	($0.09)	($0.04)	($0.13)	$12.13
1-1-04 to 3-31-04	11.03	0.01	0.04	0.05	(0.01)	(0.00)	(0.01)	11.07
6-30-03* to 12-31-03	10.00	0.04	1.03	1.07	(0.04)	(0.00)	(0.04)	11.03
Class B
4-1-04 to 3-31-05	$11.05	$0.02	$1.06	$1.08	($0.00)	($0.04)	($0.04)	$12.09
1-1-04 to 3-31-04	11.03	(0.02)	0.04	0.02	(0.00)	(0.00)	(0.00)	11.05
6-30-03* to 12-31-03	10.00	0.01	1.03	1.04	(0.01)	(0.00)	(0.01)	11.03
Class C
4-1-04 to 3-31-05	$11.05	$0.01	$1.07	$1.08	($0.00)	($0.04)	($0.04)	$12.09
1-1-04 to 3-31-04	11.03	(0.02)	0.04	0.02	(0.00)	(0.00)	(0.00)	11.05
6-30-03* to 12-31-03	10.00	0.01	1.03	1.04	(0.01)	(0.00)	(0.01)	$11.03
Class Y
4-1-04 to 3-31-05	$11.07	$0.11	$1.10	$1.21	($0.11)	($0.04)	($0.15)	$12.13
1-1-04 to 3-31-04	11.03	0.01	0.04	0.05	(0.01)	(0.00)	(0.01)	11.07
6-30-03* to 12-31-03	10.00	0.05	1.03	1.08	(0.05)	(0.00)	(0.05)	11.03

			Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	10.78%	^a	$32	1.59%		- -	^b	0.94%		- -	^b	32%
1-1-04 to 3-31-04	0.41%	^a	17	2.00%	c	2.40%	^c	0.20%	^c	- -0.20%	^c	12%
6-30-03* to 12-31-03	10.70%	^a	16	1.11%	c	1.81%	^c	1.34%	^c	0.64%	^c	16%
Class B
4-1-04 to 3-31-05	9.76%		$6	2.44%		- -	^b	0.11%		- -	^b	32%
1-1-04 to 3-31-04	0.18%		2	2.99%	c	3.39%	^c	- -0.81%	^c	- -1.21%	^c	12%
6-30-03* to 12-31-03	10.36%		2	2.03%	c	2.73%	^c	0.36%	^c	- -0.34%	^c	16%
Class C
4-1-04 to 3-31-05	9.76%		$10	2.42%		- -	^b	0.10%		- -	^b	32%
1-1-04 to 3-31-04	0.18%		6	2.88%	c	3.28%	^c	- -0.68%	^c	- -1.08%	^c	12%
6-30-03* to 12-31-03	10.38%		5	1.98%	c	2.68%	^c	0.45%	^c	- -0.25%	^c	16%
Class Y
4-1-04 to 3-31-05	10.94%		$1	1.44%		- -	^b	1.09%		- -	^b	32%
1-1-04 to 3-31-04	0.42%		1	1.91%	c	2.31%	^c	0.28%	^c	- -0.12%	^c	12%
6-30-03* to 12-31-03	10.78%		1	1.25%	c	1.95%	^c	1.08%	^c	0.38%	^c	16%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Because the Fund's net assets exceeded $25 million, there was no waiver of expenses. Therefore, no ratio is provided.

(c)Annualized.

IVY EUROPEAN OPPORTUNITIES FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations					Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)		Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$22.30	($0.03)		$6.05		$6.02	($0.01)	($0.00)	($0.01)	$28.31
1-1-04 to 3-31-04	19.89	(0.03)		2.44		2.41	(0.00)	(0.00)	(0.00)	22.30
1-1-03 to 12-31-03	13.20	0.02		6.71		6.73	(0.04)	(0.00)	(0.04)	19.89
1-1-02 to 12-31-02	13.65	0.01	^c	(0.46)	^d	(0.45)	(0.00)	(0.00)	(0.00)	13.20
1-1-01 to 12-31-01	17.25	(0.08)		(3.49)	^d	(3.57)	(0.00)	(0.03)	(0.03)	13.65
1-1-00 to 12-31-00	17.13	(0.07)		0.82		0.75	(0.00)	(0.63)	(0.63)	17.25
Class B
4-1-04 to 3-31-05	$21.66	($0.17)		$5.83		$5.66	($0.00)	($0.00)	($0.00)	$27.32
1-1-04 to 3-31-04	19.36	(0.09)		2.39		2.30	(0.00)	(0.00)	(0.00)	21.66
1-1-03 to 12-31-03	12.93	(0.07)		6.50		6.43	(0.00)	(0.00)	(0.00)	19.36
1-1-02 to 12-31-02	13.54	(0.10)	^c	(0.51)		(0.61)	(0.00)	(0.00)	(0.00)	12.93
1-1-01 to 12-31-01	17.26	(0.20)		(3.49)		(3.69)	(0.00)	(0.03)	(0.03)	13.54
1-1-00 to 12-31-00	17.13	(0.18)		0.83		0.65	(0.00)	(0.52)	(0.52)	17.26
Class C
4-1-04 to 3-31-05	$21.74	($0.14)		$5.82		$5.68	($0.00)	($0.00)	($0.00)	$27.42
1-1-04 to 3-31-04	19.43	(0.08)		2.39		2.31	(0.00)	(0.00)	(0.00)	21.74
1-1-03 to 12-31-03	12.98	(0.07)		6.52		6.45	(0.00)	(0.00)	(0.00)	19.43
1-1-02 to 12-31-02	13.59	(0.10)	^c	(0.51)		(0.61)	(0.00)	(0.00)	(0.00)	12.98
1-1-01 to 12-31-01	17.32	(0.22)		(3.48)		(3.70)	(0.00)	(0.03)	(0.03)	13.59
1-1-00 to 12-31-00	17.13	(0.22)		0.88		0.66	(0.00)	(0.47)	(0.47)	17.32
Class Y
4-1-04 to 3-31-05	$22.30	$0.09		$6.00		$6.09	($0.06)	($0.00)	($0.06)	$28.33
1-1-04 to 3-31-04	19.89	(0.02)		2.43		2.41	(0.00)	(0.00)	(0.00)	22.30
7-24-03* to 12-31-03	14.88	(0.04)		5.12		5.08	(0.07)	(0.00)	(0.07)	19.89

Ratios and Supplemental Data
For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement	Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement	Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	27.02%	^a	$170	1.79%		N/A	- -0.07%		N/A	63%
1-1-04 to 3-31-04	12.12%	^a	79	1.72%	^b	N/A	- -0.61%	^b	N/A	31%
1-1-03 to 12-31-03	51.02%	^a	38	2.26%		N/A	0.18%		N/A	123%
1-1-02 to 12-31-02	- -3.30%	^a	20	2.15%		2.15%	0.06%		0.06%	69%
1-1-01 to 12-31-01	- -20.67%	^a	31	2.15%		2.17%	- -0.44%		-0.46%	66%
1-1-00 to 12-31-00	4.51%	^a	55	1.83%		N/A	- -0.36%		N/A	46%
Class B
4-1-04 to 3-31-05	26.13%		$40	2.53%		N/A	- -0.73%		N/A	63%
1-1-04 to 3-31-04	11.88%		32	2.58%	^b	N/A	- -1.57%	^b	N/A	31%
1-1-03 to 12-31-03	49.73%		29	3.00%		N/A	- -0.47%		N/A	123%
1-1-02 to 12-31-02	- -4.51%		25	2.92%		2.92%	- -0.70%		-0.70%	69%
1-1-01 to 12-31-01	- -21.35%		34	2.89%		2.91%	- -1.18%		-1.20%	66%
1-1-00 to 12-31-00	4.12%		57	2.59%		N/A	- -1.12%		N/A	46%
Class C
4-1-04 to 3-31-05	26.13%		$45	2.51%		N/A	- -0.79%		N/A	63%
1-1-04 to 3-31-04	11.89%		27	2.56%	^b	N/A	- -1.54%	^b	N/A	31%
1-1-03 to 12-31-03	49.69%		23	2.98%		N/A	- -0.43%		N/A	123%
1-1-02 to 12-31-02	- -4.49%		19	2.92%		2.92%	- -0.70%		-0.70%	69%
1-1-01 to 12-31-01	- -21.32%		25	2.91%		2.93%	- -1.20%		-1.22%	66%
1-1-00 to 12-31-00	3.98%		50	2.58%		N/A	- -1.11%		N/A	46%
Class Y
4-1-04 to 3-31-05	27.32%		$4	1.61%		N/A	0.53%		N/A	63%
1-1-04 to 3-31-04	12.12%		4	1.75%	^b	N/A	- -0.71%	^b	N/A	31%
7-24-03* to 12-31-03	34.14%		3	1.51%	^b	N/A	- -0.58%	^b	N/A	123%	^e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)Based on average shares outstanding.

(d)Includes redemption fees added to capital.

(e)For the 12 months ended December 31, 2003.

IVY GLOBAL NATURAL RESOURCES FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations					Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)		Total from Investment Operations	From Net Investment Income		From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$17.63	($0.04)		$5.06		$5.02	($0.00)	^a	($0.00)	($0.00)	$22.65
1-1-04 to 3-31-04	16.69	0.03		0.91		0.94	(0.00)		(0.00)	(0.00)	17.63
1-1-03 to 12-31-03	11.50	0.10		5.14		5.24	(0.05)		(0.00)	(0.05)	16.69
1-1-02 to 12-31-02	11.05	(0.11)	^d	0.63	^e	0.52	(0.00)		(0.07)	(0.07)	11.50
1-1-01 to 12-31-01	9.74	0.04	^d	1.45		1.49	(0.18)		(0.00)	(0.18)	11.05
1-1-00 to 12-31-00	8.91	(0.07)		0.95		0.88	(0.05)		(0.00)	(0.05)	9.74
Class B
4-1-04 to 3-31-05	$17.04	($0.04)		$4.72		$4.68	($0.00)		($0.00)	($0.00)	$21.72
1-1-04 to 3-31-04	16.16	(0.01)		0.89		0.88	(0.00)		(0.00)	(0.00)	17.04
1-1-03 to 12-31-03	11.19	(0.06)		5.03		4.97	(0.00)		(0.00)	(0.00)	16.16
1-1-02 to 12-31-02	10.81	(0.19)	^d	0.57		0.38	(0.00)		(0.00)	(0.00)	11.19
1-1-01 to 12-31-01	9.56	(0.02)	^d	1.42		1.40	(0.15)		(0.00)	(0.15)	10.81
1-1-00 to 12-31-00	8.77	(0.09)		0.90		0.81	(0.02)		(0.00)	(0.02)	9.56
Class C
4-1-04 to 3-31-05	$16.72	($0.09)		$4.69		$4.60	($0.00)		($0.00)	($0.00)	$21.32
1-1-04 to 3-31-04	15.86	0.00		0.86		0.86	(0.00)		(0.00)	(0.00)	16.72
1-1-03 to 12-31-03	10.97	0.04		4.85		4.89	(0.00)		(0.00)	(0.00)	15.86
1-1-02 to 12-31-02	10.61	(0.18)	^d	0.55		0.37	(0.00)		(0.01)	(0.01)	10.97
1-1-01 to 12-31-01	9.40	(0.02)	^d	1.39		1.37	(0.16)		(0.00)	(0.16)	10.61
1-1-00 to 12-31-00	8.63	(0.07)		0.89		0.82	(0.05)		(0.00)	(0.05)	9.40
Class Y
4-1-04 to 3-31-05	$17.66	($0.02)		$5.13		$5.11	($0.07)		($0.00)	($0.07)	$22.70
1-1-04 to 3-31-04	16.70	0.01		0.95		0.96	(0.00)		(0.00)	(0.00)	17.66
7-24-03* to 12-31-03	12.60	0.00		4.16		4.16	(0.06)		(0.00)	(0.06)	16.70

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	28.50%	^b	$895	1.55%		N/A		- -0.52%		N/A		110%
1-1-04 to 3-31-04	5.63%	^b	192	1.65%	^c	N/A		- -0.80%	^c	N/A		29%
1-1-03 to 12-31-03	45.61%	^b	95	1.89%		N/A		- -0.66%		N/A		58%
1-1-02 to 12-31-02	4.66%	^b,e	17	2.22%		2.38%		- -0.91%		- -1.07%		67%
1-1-01 to 12-31-01	15.40%	^b	8	2.25%		3.71%		0.38%		- -1.08%		169%
1-1-00 to 12-31-00	9.86%	^b	6	2.29%		4.54%		- -0.69%		- -2.94%		134%
Class B
4-1-04 to 3-31-05	27.46%		$110	2.39%		N/A		- -1.35%		N/A		110%
1-1-04 to 3-31-04	5.45%		30	2.42%	^c	N/A		- -1.59%	^c	N/A		29%
1-1-03 to 12-31-03	44.42%		21	2.90%		N/A		- -1.54%		N/A		58%
1-1-02 to 12-31-02	3.52%		9	2.93%		3.09%		- -1.62%		- -1.78%		67%
1-1-01 to 12-31-01	14.73%		5	2.87%		4.33%		- -0.24%		- -1.70%		169%
1-1-00 to 12-31-00	9.27%		3	2.80%		5.05%		- -1.20%		- -3.45%		134%
Class C
4-1-04 to 3-31-05	27.51%		$312	2.31%		N/A		- -1.28%		N/A		110%
1-1-04 to 3-31-04	5.42%		64	2.38%	^c	N/A		- -1.54%	^c	N/A		29%
1-1-03 to 12-31-03	44.58%		34	2.65%		N/A		- -1.48%		N/A		58%
1-1-02 to 12-31-02	3.46%		5	2.94%		3.10%		- -1.64%		- -1.80%		67%
1-1-01 to 12-31-01	14.62%		2	2.86%		4.32%		- -0.23%		- -1.69%		169%
1-1-00 to 12-31-00	9.49%		1	2.70%		4.95%		- -1.10%		- -3.35%		134%
Class Y
4-1-04 to 3-31-05	28.98%		$21	1.20%		1.48%		- -0.19%		-0.47%		110%
1-1-04 to 3-31-04	5.75%		4	1.20%	^c	1.63%	^c	- -0.35%	^c	- -0.79%	^c	29%
7-24-03* to 12-31-03	33.03%		1	1.39%	^c	N/A		- -0.54%	^c	N/A		58%	^f

*Commencement of operations of the class.

(a)Not shown due to rounding.

(b)Total return calculated without taking into account the sales load deducted on an initial purchase.

(c)Annualized.

(d)Based on average shares outstanding.

(e)Includes redemption fees added to capital.

(f)For the 12 months ended December 31, 2003.

IVY INTERNATIONAL FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations				Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$21.34	($0.02)		$1.54	$1.52	($0.00)	($0.00)	($0.00)	$22.86
1-1-04 to 3-31-04	20.64	(0.01)		0.71	0.70	(0.00)	(0.00)	(0.00)	21.34
1-1-03 to 12-31-03	16.35	(0.02)		4.31	4.29	(0.00)	(0.00)	(0.00)	20.64
1-1-02 to 12-31-02	20.69	0.06	^c	(4.40)	(4.34)	(0.00)	(0.00)	(0.00)	16.35
1-1-01 to 12-31-01	26.20	0.05		(5.56)	(5.51)	(0.00)	(0.00)	(0.00)	20.69
1-1-00 to 12-31-00	47.09	0.19		(12.44)	(12.25)	(0.04)	(8.60)	(8.64)	26.20
Class B
4-1-04 to 3-31-05	$20.12	($0.22)	^c	$1.40	$1.18	($0.00)	($0.00)	($0.00)	$21.30
1-1-04 to 3-31-04	19.52	(0.07)		0.67	0.60	(0.00)	(0.00)	(0.00)	20.12
1-1-03 to 12-31-03	15.62	(0.23)		4.13	3.90	(0.00)	(0.00)	(0.00)	19.52
1-1-02 to 12-31-02	20.03	(0.12)	^c	(4.29)	(4.41)	(0.00)	(0.00)	(0.00)	15.62
1-1-01 to 12-31-01	25.64	(0.21)		(5.40)	(5.61)	(0.00)	(0.00)	(0.00)	20.03
1-1-00 to 12-31-00	46.78	(0.17)		(12.33)	(12.50)	(0.04)	(8.60)	(8.64)	25.64
Class C
4-1-04 to 3-31-05	$20.00	($0.32)		$1.52	$1.20	($0.00)	($0.00)	($0.00)	$21.20
1-1-04 to 3-31-04	19.39	(0.07)		0.68	0.61	(0.00)	(0.00)	(0.00)	20.00
1-1-03 to 12-31-03	15.52	(0.20)		4.07	3.87	(0.00)	(0.00)	(0.00)	19.39
1-1-02 to 12-31-02	19.90	(0.11)	^c	(4.27)	(4.38)	(0.00)	(0.00)	(0.00)	15.52
1-1-01 to 12-31-01	25.46	(0.21)		(5.35)	(5.56)	(0.00)	(0.00)	(0.00)	19.90
1-1-00 to 12-31-00	46.57	(0.19)		(12.28)	(12.47)	(0.04)	(8.60)	(8.64)	25.46
Class Y
4-1-04 to 3-31-05	$21.35	($0.09)		$1.60	$1.51	($0.00)	($0.00)	($0.00)	$22.86
1-1-04 to 3-31-04	20.65	(0.02)		0.72	0.70	(0.00)	(0.00)	(0.00)	21.35
7-24-03* to 12-31-03	17.69	0.02		2.94	2.96	(0.00)	(0.00)	(0.00)	20.65


Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement	Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement	Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	7.12%	^a	$122	1.61%		N/A	- -0.15%		N/A	76%
1-1-04 to 3-31-04	3.39%	^a	125	1.69%	^b	N/A	- -0.26%	^b	N/A	27%
1-1-03 to 12-31-03	26.24%	^a	124	1.81%		N/A	- -0.07%		N/A	136%
1-1-02 to 12-31-02	- -20.96%	^a,d	127	1.89%		1.89%	0.32%		0.32%	34%
1-1-01 to 12-31-01	- -21.03%	^a,d	345	1.60%		1.66%	0.18%		0.12%	43%
1-1-00 to 12-31-00	- -17.26%	^a	588	1.66%		N/A	0.37%		N/A	91%
Class B
4-1-04 to 3-31-05	5.87%		$17	2.75%		N/A	- -1.09%		N/A	76%
1-1-04 to 3-31-04	3.08%		49	2.75%	^b	N/A	- -1.35%	^b	N/A	27%
1-1-03 to 12-31-03	24.97%		55	2.84%		N/A	- -1.06%		N/A	136%
1-1-02 to 12-31-02	- -22.00%		68	2.85%		2.85%	- -0.64%		- -0.64%	34%
1-1-01 to 12-31-01	- -21.88%		137	2.54%		2.60%	- -0.76%		- -0.82%	43%
1-1-00 to 12-31-00	- -17.95%		281	2.50%		N/A	- -0.47%		N/A	91%
Class C
4-1-04 to 3-31-05	6.00%		$9	2.64%		N/A	- -1.14%		N/A	76%
1-1-04 to 3-31-04	3.15%		11	2.67%	^b	N/A	- -1.25%	^b	N/A	27%
1-1-03 to 12-31-03	24.94%		12	2.80%		N/A	- -0.94%		N/A	136%
1-1-02 to 12-31-02	- -22.00%		14	2.83%		2.83%	- -0.62%		- -0.62%	34%
1-1-01 to 12-31-01	- -21.84%		26	2.54%		2.60%	- -0.76%		- -0.82%	43%
1-1-00 to 12-31-00	- -17.97%		57	2.49%		N/A	- -0.46%		N/A	91%
Class Y
4-1-04 to 3-31-05	7.07%		$0.23	1.66%		N/A	- -0.33%		N/A	76%
1-1-04 to 3-31-04	3.39%		0.14	1.76%	^b	N/A	- -0.32%	^b	N/A	27%
7-24-03* to 12-31-03	16.73%		0.14	0.59%	^b	N/A	0.24%	^b	N/A	136%	^d

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)Based on average shares outstanding.

(d)For the 12 months ended December 31, 2003.

IVY INTERNATIONAL BALANCED FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations				Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Tax Return of Capital	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$13.07	$0.22		$1.69	$1.91	($0.28)	($0.07)	($0.00)	($0.35)	$14.63
10-1-03 to 3-31-04	11.33	0.09		1.83	1.92	(0.18)	(0.00)	(0.00)	(0.18)	13.07
10-1-02 to 9-30-03	8.72	0.21		2.40	2.61	(0.00)	(0.00)	(0.00)	(0.00)	11.33
10-1-01 to 9-30-02	9.28	0.18		(0.59)	(0.41)	(0.00)	(0.13)	(0.02)	(0.15)	8.72
10-1-00 to 9-30-01	11.59	0.18		(1.28)	(1.10)	(0.11)	(1.10)	(0.00)	(1.21)	9.28
10-1-99 to 9-30-00	11.80	0.23		0.50	0.73	(0.36)	(0.58)	(0.00)	(0.94)	11.59
Class B
4-1-05 to 3-31-05	$13.04	$0.03	^d	$1.70	$1.73	($0.11)	($0.07)	N/A	($0.18)	$14.59
12-8-03* to 3-31-04	12.34	0.19		0.69	0.88	(0.18)	($0.00)	N/A	(0.18)	13.04
Class C
4-1-05 to 3-31-05	$13.04	$0.07	^d	$1.69	$1.76	($0.13)	($0.07)	N/A	($0.20)	$14.60
12-8-03* to 3-31-04	12.34	0.19		0.69	0.88	(0.18)	(0.00)	N/A	(0.18)	13.04
Class Y
4-1-05 to 3-31-05	$13.07	$0.24	^d	$1.67	$1.91	($0.28)	($0.07)	N/A	($0.35)	$14.63
12-8-03* to 3-31-04	12.34	0.21		0.70	0.91	(0.18)	(0.00)	N/A	(0.18)	13.07

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	14.81%	^a	$97	1.42%		N/A		1.71%		N/A		16%
10-1-03 to 3-31-04	17.05%	^a	60	1.54%	^b,c	1.60%	^b,c	1.43%	^b,c	1.37%	^b,c	15%
10-1-02 to 9-30-03	29.93%	^a	46	1.67%		1.71%		2.06%		2.02%		39%
10-1-01 to 9-30-02	- -4.62%	^a	36	1.62%		1.72%		1.84%		1.74%		48%
10-1-00 to 9-30-01	- -10.57%	^a	40	1.62%		1.73%		1.60%		1.49%		36%
10-1-99 to 9-30-00	6.26%	^a	48	1.52%		1.65%		1.92%		1.79%		44%
Class B
4-1-05 to 3-31-05	13.37%		$3.05	2.64%		N/A		0.20%		N/A		16%
12-8-03* to 3-31-04	7.18%		0.23	3.01%	^b	N/A		1.09%	^b	N/A		15%	^e
Class C
4-1-05 to 3-31-05	13.58%		$3.97	2.44%		N/A		0.44%		N/A		16%
12-8-03* to 3-31-04	7.18%		0.31	2.86%	^b	N/A		1.13%	^b	N/A		15%	^e
Class Y
4-1-05 to 3-31-05	14.84%		$0.40	1.40%		N/A		1.72%		N/A		16%
12-8-03* to 3-31-04	7.47%		0.19	1.79%	^b	N/A		2.00%	^b	N/A		15%	^e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund

were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from October 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(d)Based on average shares outstanding.

(e)For the six months ended March 31, 2004.

IVY INTERNATIONAL GROWTH FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$10.60	($0.05)	$0.65	$0.60	($0.17)	($0.00)	($0.17)	$11.03
4-1-03 to 3-31-04	7.57	(0.02)	3.05	3.03	(0.00)	(0.00)	(0.00)	10.60
4-1-02 to 3-31-03	9.82	(0.03)	(2.22)	(2.25)	(0.00)	(0.00)	(0.00)	7.57
4-1-01 to 3-31-02	12.03	(0.17)	(2.01)	(2.18)	(0.00)	(0.03)	(0.03)	9.82
7-3-00* to 3-31-01	24.33	(0.02)	(6.46)	(6.48)	(0.00)	(5.82)	(5.82)	12.03
Class B
4-1-04 to 3-31-05	$10.19	($0.19)	$0.65	$0.46	($0.05)	($0.00)	($0.05)	$10.60
4-1-03 to 3-31-04	7.35	(0.12)	2.96	2.84	(0.00)	(0.00)	(0.00)	10.19
4-1-02 to 3-31-03	9.65	(0.11)	(2.19)	(2.30)	(0.00)	(0.00)	(0.00)	7.35
4-1-01 to 3-31-02	11.94	(0.19)	(2.07)	(2.26)	(0.00)	(0.03)	(0.03)	9.65
7-10-00* to 3-31-01	24.59	(0.09)	(6.74)	(6.83)	(0.00)	(5.82)	(5.82)	11.94
Class C
4-1-04 to 3-31-05	$10.27	($0.19)	$0.68	$0.49	($0.07)	($0.00)	($0.07)	$10.69
4-1-03 to 3-31-04	7.40	(0.10)	2.97	2.87	(0.00)	(0.00)	(0.00)	10.27
4-1-02 to 3-31-03	9.69	(0.08)	(2.21)	(2.29)	(0.00)	(0.00)	(0.00)	7.40
4-1-01 to 3-31-02	11.96	(0.11)	(2.13)	(2.24)	(0.00)	(0.03)	(0.03)	9.69
4-1-00 to 3-31-01	28.58	(0.17)	(10.63)	(10.80)	(0.00)	(5.82)	(5.82)	11.96
Class Y
4-1-04 to 3-31-05	$11.53	$0.11	$0.59	$0.70	($0.21)	($0.00)	($0.21)	$12.02
4-1-03 to 3-31-04	8.17	0.10	3.26	3.36	(0.00)	(0.00)	(0.00)	11.53
4-1-02 to 3-31-03	10.55	(0.16)	(2.22)	(2.38)	(0.00)	(0.00)	(0.00)	8.17
4-1-01 to 3-31-02	12.87	(0.18)	(2.11)	(2.29)	(0.00)	(0.03)	(0.03)	10.55
4-1-00 to 3-31-01	29.86	(0.17)	(11.00)	(11.17)	(0.00)	(5.82)	(5.82)	12.87

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	5.65%	^a	$13	1.90%		- -0.51%		82%
4-1-03 to 3-31-04	40.03%	^a	12	2.01%		- -0.23%		176%
4-1-02 to 3-31-03	- -22.91%	^a	5	2.10%		- -0.10%		108%
4-1-01 to 3-31-02	- -18.12%	^a	7	1.89%		- -0.49%		134%
7-3-00* to 3-31-01	- -29.73%	^a	5	1.72%	^b	- -0.31%	^b	103%	^c
Class B
4-1-04 to 3-31-05	4.55%		$4	2.93%		- -1.53%		82%
4-1-03 to 3-31-04	38.64%		5	3.02%		- -1.46%		176%
4-1-02 to 3-31-03	- -23.83%		2	3.24%		- -1.22%		108%
4-1-01 to 3-31-02	- -18.93%		2	2.89%		- -1.42%		134%
7-10-00* to 3-31-01	- -30.89%		2	2.61%	^b	- -1.30%	^b	103%	^c
Class C
4-1-04 to 3-31-05	4.72%		$45	2.77%		- -1.35%		82%
4-1-03 to 3-31-04	38.78%		54	2.85%		- -0.96%		176%
4-1-02 to 3-31-03	- -23.63%		46	2.93%		- -0.86%		108%
4-1-01 to 3-31-02	- -18.73%		74	2.62%		- -1.03%		134%
4-1-00 to 3-31-01	- -40.45%		123	2.36%		- -1.03%		103%
Class Y
4-1-04 to 3-31-05	6.09%		$5	1.57%		- -0.19%		82%
4-1-03 to 3-31-04	41.13%		5	1.62%		0.63%		176%
4-1-02 to 3-31-03	- -22.56%		11	1.63%		0.39%		108%
4-1-01 to 3-31-02	- -17.79%		8	1.52%		- -0.11%		134%
4-1-00 to 3-31-01	- -39.91%		7	1.44%		- -0.02%		103%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)For the fiscal year ended March 31, 2001.

IVY INTERNATIONAL VALUE FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations					Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)		Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$10.14	($0.02)		$1.49		$1.47	($0.00)	($0.00)	($0.00)	$11.61
1-1-04 to 3-31-04	9.73	(0.01)		0.42		0.41	(0.00)	(0.00)	(0.00)	10.14
1-1-03 to 12-31-03	7.65	(0.02)		2.10		2.08	(0.00)	(0.00)	(0.00)	9.73
1-1-02 to 12-31-02	9.10	0.08	^c	(1.53)	^d	(1.45)	(0.00)	(0.00)	(0.00)	7.65
1-1-01 to 12-31-01	11.01	0.07		(1.96)	^d	(1.89)	(0.02)	(0.00)	(0.02)	9.10
1-1-00 to 12-31-00	11.99	0.14		(1.01)		(0.87)	(0.04)	(0.07)	(0.11)	11.01
Class B
4-1-04 to 3-31-05	$9.60	($0.08)		$1.39		$1.31	($0.00)	($0.00)	($0.00)	$10.91
1-1-04 to 3-31-04	9.24	(0.03)		0.39		0.36	(0.00)	(0.00)	(0.00)	9.60
1-1-03 to 12-31-03	7.32	(0.08)		2.00		1.92	(0.00)	(0.00)	(0.00)	9.24
1-1-02 to 12-31-02	8.97	0.01	^c	(1.66)		(1.65)	(0.00)	(0.00)	(0.00)	7.32
1-1-01 to 12-31-01	10.94	(0.02)		(1.93)		(1.95)	(0.02)	(0.00)	(0.02)	8.97
1-1-00 to 12-31-00	11.91	0.02		(0.96)		(0.94)	(0.01)	(0.02)	(0.03)	10.94
Class C
4-1-04 to 3-31-05	$9.59	($0.07)		$1.38		$1.31	($0.00)	($0.00)	($0.00)	$10.90
1-1-04 to 3-31-04	9.23	(0.03)		0.39		0.36	(0.00)	(0.00)	(0.00)	9.59
1-1-03 to 12-31-03	7.32	(0.08)		1.99		1.91	(0.00)	(0.00)	(0.00)	9.23
1-1-02 to 12-31-02	8.97	0.01	^c	(1.66)		(1.65)	(0.00)	(0.00)	(0.00)	7.32
1-1-01 to 12-31-01	10.94	(0.02)		(1.93)		(1.95)	(0.02)	(0.00)	(0.02)	8.97
1-1-00 to 12-31-00	11.92	0.02		(0.97)		(0.95)	(0.01)	(0.02)	(0.03)	10.94
Class Y
4-1-04 to 3-31-05	$10.15	($0.01)		$1.50		$1.49	($0.00)	($0.00)	($0.00)	$11.64
1-1-04 to 3-31-04	9.74	(0.01)		0.42		0.41	(0.00)	(0.00)	(0.00)	10.15
7-24-03* to 12-31-03	8.16	(0.01)		1.59		1.58	(0.00)	(0.00)	(0.00)	9.74


Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement	Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement	Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	14.50%	^a	$17	1.99%		N/A	0.09%		N/A	106%
1-1-04 to 3-31-04	4.21%	^a	10	2.16%	^b	N/A	- -0.41%	^b	N/A	23%
1-1-03 to 12-31-03	27.19%	^a	9	2.28%		N/A	- -0.19%		N/A	148%
1-1-02 to 12-31-02	- -15.93%	^a,d	8	1.77%		2.32%	0.91%		0.36%	48%
1-1-01 to 12-31-01	- -17.17%	^a,d	13	1.77%		2.15%	0.58%		0.20%	39%
1-1-00 to 12-31-00	- -7.25%	^a	24	1.74%		1.92%	0.96%		0.78%	36%
Class B
4-1-04 to 3-31-05	13.65%		$20	2.76%		N/A	- -0.58%		N/A	106%
1-1-04 to 3-31-04	3.90%		24	2.91%	^b	N/A	- -1.20%	^b	N/A	23%
1-1-03 to 12-31-03	26.23%		25	2.95%		N/A	- -0.82%		N/A	148%
1-1-02 to 12-31-02	- -18.39%		28	2.50%		3.05%	0.18%		- -0.37%	48%
1-1-01 to 12-31-01	- -17.84%		46	2.50%		2.88%	- -0.15%		- -0.53%	39%
1-1-00 to 12-31-00	- -7.94%		76	2.51%		2.69%	0.20%		0.02%	36%
Class C
4-1-04 to 3-31-05	13.66%		$7	2.79%		N/A	- -0.63%		N/A	106%
1-1-04 to 3-31-04	3.90%		8	3.01%	^b	N/A	- -1.30%	^b	N/A	23%
1-1-03 to 12-31-03	26.09%		8	3.01%		N/A	- -0.82%		N/A	148%
1-1-02 to 12-31-02	- -18.39%		9	2.50%		3.05%	0.18%		- -0.37%	48%
1-1-01 to 12-31-01	- -17.84%		16	2.51%		2.89%	- -0.16%		- -0.54%	39%
1-1-00 to 12-31-00	- -7.97%		30	2.51%		2.69%	0.19%		0.01%	36%
Class Y
4-1-04 to 3-31-05	14.68%		$0.29	1.82%		N/A	0.29%		N/A	106%
1-1-04 to 3-31-04	4.21%		0.15	2.08%	^b	N/A	- -0.31%	^b	N/A	23%
7-24-03* to 12-31-03	19.36%		0.13	1.47%	^b	N/A	- -0.38%	^b	N/A	148%	^e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)Based on average shares outstanding.

(d)Includes redemption fees added to capital.

(e)For the 12 months ended December 31, 2003.

IVY LARGE CAP GROWTH FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$9.27	($0.03)	$0.30	$0.27	($0.00)	($0.00)	($0.00)	$9.54
4-1-03 to 3-31-04	7.24	(0.04)	2.07	2.03	(0.00)	(0.00)	(0.00)	9.27
4-1-02 to 3-31-03	9.21	(0.03)	(1.94)	(1.97)	(0.00)	(0.00)	(0.00)	7.24
4-1-01 to 3-31-02	9.48	(0.04)	(0.23)	(0.27)	(0.00)	(0.00)	(0.00)	9.21
6-30-00* to 3-31-01	10.00	0.05	(0.45)	(0.40)	(0.06)	(0.06)	(0.12)	9.48
Class B
4-1-04 to 3-31-05	$8.83	($0.05)	$0.21	$0.16	($0.00)	($0.00)	($0.00)	$8.99
4-1-03 to 3-31-04	6.99	(0.13)	1.97	1.84	(0.00)	(0.00)	(0.00)	8.83
4-1-02 to 3-31-03	9.05	(0.14)	(1.92)	(2.06)	(0.00)	(0.00)	(0.00)	6.99
4-1-01 to 3-31-02	9.44	(0.16)	(0.23)	(0.39)	(0.00)	(0.00)	(0.00)	9.05
7-6-00* to 3-31-01	10.02	(0.03)	(0.49)	(0.52)	(0.00)	(0.06)	(0.06)	9.44
Class C
4-1-04 to 3-31-05	$8.99	($0.09)	$0.28	$0.19	($0.00)	($0.00)	($0.00)	$9.18
4-1-03 to 3-31-04	7.08	(0.11)	2.02	1.91	(0.00)	(0.00)	(0.00)	8.99
4-1-02 to 3-31-03	9.10	(0.10)	(1.92)	(2.02)	(0.00)	(0.00)	(0.00)	7.08
4-1-01 to 3-31-02	9.45	(0.12)	(0.23)	(0.35)	(0.00)	(0.00)	(0.00)	9.10
7-3-00* to 3-31-01	10.00	(0.00)	(0.48)	(0.48)	(0.01)	(0.06)	(0.07)	9.45
Class Y
4-1-04 to 3-31-05	$9.32	$0.00	$0.30	$0.30	($0.00)	($0.00)	($0.00)	$9.62
4-1-03 to 3-31-04	7.26	(0.03)	2.09	2.06	(0.00)	(0.00)	(0.00)	9.32
4-1-02 to 3-31-03	9.22	(0.30)	(1.66)	(1.96)	(0.00)	(0.00)	(0.00)	7.26
4-1-01 to 3-31-02	9.48	(0.01)	(0.25)	(0.26)	(0.00)	(0.00)	(0.00)	9.22
7-6-00* to 3-31-01	10.02	0.09	(0.50)	(0.41)	(0.07)	(0.06)	(0.13)	9.48

Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	2.91%	^a	$82	1.50%		1.52%	^b	- -0.31%		- -0.33%	^b	131%
4-1-03 to 3-31-04	28.04%	^a	76	1.55%		- -	^c	- -0.89%		- -	^c	162%
4-1-02 to 3-31-03	- -21.39%	^a	21	1.28%		1.66%		- -0.23%		- -0.61%		72%
4-1-01 to 3-31-02	- -2.85%	^a	20	1.58%		1.69%		- -0.38%		- -0.49%		99%
6-30-00* to 3-31-01	- -4.27%	^a	19	1.13%	^d	1.34%	^d	0.89%	^d	0.68%	^d	75%
Class B
4-1-04 to 3-31-05	1.81%		$8	2.53%		- -	^c	- -1.30%		- -	^c	131%
4-1-03 to 3-31-04	26.32%		5	2.85%		- -	^c	- -2.16%		- -	^c	162%
4-1-02 to 3-31-03	- -22.76%		2	2.93%		3.31%		- -1.87%		- -2.25%		72%
4-1-01 to 3-31-02	- -4.13%		2	2.98%		3.19%		- -1.79%		- -2.00%		99%
7-6-00* to 3-31-01	- -5.32%		2	2.53%	^d	3.00%	^d	- -0.60%	^d	- -1.07%	^d	75%
Class C
4-1-04 to 3-31-05	2.11%		$12	2.25%		2.28%	^b	- -1.06%		- -1.09%	^b	131%
4-1-03 to 3-31-04	26.98%		11	2.44%		- -	^c	- -1.75%		- -	^c	162%
4-1-02 to 3-31-03	- -22.28%		4	2.26%		2.64%		- -1.20%		- -1.58%		72%
4-1-01 to 3-31-02	- -3.60%		7	2.51%		2.68%		- -1.31%		- -1.48%		99%
7-3-00* to 3-31-01	- -4.93%		7	2.06%	^d	2.44%	^d	- -0.08%	^d	- -0.46%	^d	75%
Class Y
4-1-04 to 3-31-05	3.22%		$49.66	1.20%		1.25%	^b	- -0.01%		- -0.06%	^b	131%
4-1-03 to 3-31-04	28.38%		59.48	1.26%		- -	^c	- -0.64%		- -	^c	162%
4-1-02 to 3-31-03	- -21.26%		0.89	1.05%		1.43%		0.00%		- -0.38%		72%
4-1-01 to 3-31-02	- -2.74%		0.77	1.36%		1.45%		- -0.20%		- -0.29%		99%
7-6-00* to 3-31-01	- -4.38%		0.28	1.13%	^d	1.34%	^d	1.11%	^d	0.90%	^d	75%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Ivy Funds Distributor, Inc. and Waddell & Reed Services Company have voluntarily agreed to waive expenses so that the total annual fund operating expenses do not exceed the following levels for the specified classes: Class A, 1.50%; Class C, 2.25%; Class Y, 1.20%.

(c)Because the Fund's net assets exceeded $25 million, there was no waiver of expenses. Therefore, no ratio is provided.

(d)Annualized.

IVY MID CAP GROWTH FUND

	Selected Per-Share Data

		Income (Loss) From Investment Operations			Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income		From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$9.09	($0.09)	$0.99	$0.90	($0.00)		($0.00)	($0.00)	$9.99
4-1-03 to 3-31-04	6.67	(0.08)	2.50	2.42	(0.00)		(0.00)	(0.00)	9.09
4-1-02 to 3-31-03	8.91	(0.05)	(2.19)	(2.24)	(0.00)	^b	(0.00)	(0.00)	6.67
4-1-01 to 3-31-02	9.11	0.02	(0.17)	(0.15)	(0.05)		(0.00)	(0.05)	8.91
6-30-00* to 3-31-01	10.00	0.11	(0.65)	(0.54)	(0.06)		(0.29)	(0.35)	9.11
Class B
4-1-04 to 3-31-05	$8.75	($0.23)	$0.98	$0.75	($0.00)		($0.00)	($0.00)	$9.50
4-1-03 to 3-31-04	6.49	(0.17)	2.43	2.26	(0.00)		(0.00)	(0.00)	8.75
4-1-02 to 3-31-03	8.81	(0.14)	(2.18)	(2.32)	(0.00)		(0.00)	(0.00)	6.49
4-1-01 to 3-31-02	9.07	(0.09)	(0.17)	(0.26)	(0.00)		(0.00)	(0.00)	8.81
7-6-00* to 3-31-01	10.01	0.02	(0.66)	(0.64)	(0.01)		(0.29)	(0.30)	9.07
Class C
4-1-04 to 3-31-05	$8.86	($0.15)	$0.96	$0.81	($0.00)		($0.00)	($0.00)	$9.67
4-1-03 to 3-31-04	6.56	(0.13)	2.43	2.30	(0.00)		(0.00)	(0.00)	8.86
4-1-02 to 3-31-03	8.85	(0.10)	(2.19)	(2.29)	(0.00)		(0.00)	(0.00)	6.56
4-1-01 to 3-31-02	9.08	(0.05)	(0.18)	(0.23)	(0.00)		(0.00)	(0.00)	8.85
7-3-00* to 3-31-01	10.00	0.04	(0.66)	(0.62)	(0.01)		(0.29)	(0.30)	9.08
Class Y
4-1-04 to 3-31-05	$9.09	($0.06)	$1.01	$0.95	($0.00)		($0.00)	($0.00)	$10.04
4-1-03 to 3-31-04	6.67	(0.05)	2.47	2.42	(0.00)		(0.00)	(0.00)	9.09
4-1-02 to 3-31-03	8.91	(0.01)	(2.20)	(2.21)	(0.03)		(0.00)	(0.03)	6.67
4-1-01 to 3-31-02	9.11	0.00	(0.14)	(0.14)	(0.06)		(0.00)	(0.06)	8.91
7-10-00* to 3-31-01	10.23	0.11	(0.88)	(0.77)	(0.06)		(0.29)	(0.35)	9.11


Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	9.90%	^a	$68	1.65%		1.70%		- -0.95%		- -1.00%		25%
4-1-03 to 3-31-04	36.28%	^a	50	1.84%		1.89%		- -1.20%		- -1.25%		24%
4-1-02 to 3-31-03	- -25.13%	^a	14	1.17%		2.02%		- -0.49%		- -1.34%		36%
4-1-01 to 3-31-02	- -1.67%	^a	15	1.17%		1.84%		0.34%		- -0.33%		39%
6-30-00* to 3-31-01	- -5.88%	^a	11	1.01%	^c	1.65%	^c	1.85%	^c	1.21%	^c	110%
Class B
4-1-04 to 3-31-05	8.57%		$11	2.81%		- ---		- -2.12%		- ---		25%
4-1-03 to 3-31-04	34.82%		12	3.04%		3.09%		- -2.37%		- -2.43%		24%
4-1-02 to 3-31-03	- -26.33%		2	2.73%		3.58%		- -2.05%		- -2.90%		36%
4-1-01 to 3-31-02	- -2.87%		2	2.49%		3.90%		- -0.95%		- -2.37%		39%
7-6-00* to 3-31-01	- -6.85%		2	2.40%	^c	3.93%	^c	0.44%	^c	- -1.09%	^c	110%
Class C
4-1-04 to 3-31-05	9.14%		$11	2.35%		2.46%		- -1.66%		- -1.77%		25%
4-1-03 to 3-31-04	35.06%		10	2.59%		2.64%		- -1.98%		- -2.03%		24%
4-1-02 to 3-31-03	- -25.88%		3	2.18%		3.03%		- -1.50%		- -2.35%		36%
4-1-01 to 3-31-02	- -2.53%		4	2.10%		3.30%		- -0.55%		- -1.74%		39%
7-3-00* to 3-31-01	- -6.58%		4	1.99%	^c	3.26%	^c	0.84%	^c	- -0.43%	^c	110%
Class Y
4-1-04 to 3-31-05	10.45%		$1.96	1.25%		1.48%		- -0.55%		- -0.78%		25%
4-1-03 to 3-31-04	36.28%		1.36	1.72%		1.77%		- -0.91%		- -0.96%		24%
4-1-02 to 3-31-03	- -24.86%		0.33	0.86%		1.71%		- -0.18%		- -1.03%		36%
4-1-01 to 3-31-02	- -1.52%		0.44	0.83%		1.30%		0.50%		0.03%		39%
7-10-00* to 3-31-01	- -7.97%		0.18	1.03%	^c	1.68%	^c	1.77%	^c	1.11%	^c	110%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Not shown due to rounding.

(c)Annualized.

IVY PACIFIC OPPORTUNITIES FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations					Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)		Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$9.55	($0.07)		$1.13		$1.06	($0.00)	($0.00)	($0.00)	$10.61
1-1-04 to 3-31-04	9.11	0.00		0.44		0.44	(0.00)	(0.00)	(0.00)	9.55
1-1-03 to 12-31-03	5.96	(0.02)		3.17		3.15	(0.00)	(0.00)	(0.00)	9.11
1-1-02 to 12-31-02	6.72	0.01	^c	(0.77)	^d	(0.76)	(0.00)	(0.00)	(0.00)	5.96
1-1-01 to 12-31-01	7.42	(0.03)	^c	(0.66)	^d	(0.69)	(0.01)	(0.00)	(0.01)	6.72
1-1-00 to 12-31-00	9.15	0.07		(1.74)		(1.67)	(0.06)	(0.00)	(0.06)	7.42
Class B
4-1-04 to 3-31-05	$9.01	($0.13)		$1.03		$0.90	($0.00)	($0.00)	($0.00)	$9.91
1-1-04 to 3-31-04	8.61	(0.04)		0.44		0.40	(0.00)	(0.00)	(0.00)	9.01
1-1-03 to 12-31-03	5.75	(0.06)		2.92		2.86	(0.00)	(0.00)	(0.00)	8.61
1-1-02 to 12-31-02	6.56	(0.04)	^c	(0.77)		(0.81)	(0.00)	(0.00)	(0.00)	5.75
1-1-01 to 12-31-01	7.33	(0.08)	^c	(0.68)		(0.76)	(0.01)	(0.00)	(0.01)	6.56
1-1-00 to 12-31-00	9.04	0.01		(1.71)		(1.70)	(0.01)	(0.00)	(0.01)	7.33
Class C
4-1-04 to 3-31-05	$9.09	($0.09)		$1.01		$0.92	($0.00)	($0.00)	($0.00)	$10.01
1-1-04 to 3-31-04	8.68	(0.02)		0.43		0.41	(0.00)	(0.00)	(0.00)	9.09
1-1-03 to 12-31-03	5.75	(0.05)		2.98		2.93	(0.00)	(0.00)	(0.00)	8.68
1-1-02 to 12-31-02	6.55	(0.03)	^c	(0.77)		(0.80)	(0.00)	(0.00)	(0.00)	5.75
1-1-01 to 12-31-01	7.31	(0.08)	^c	(0.67)		(0.75)	(0.01)	(0.00)	(0.01)	6.55
1-1-00 to 12-31-00	9.07	0.01		(1.71)		(1.70)	(0.06)	(0.00)	(0.06)	7.31
Class Y
4-1-04 to 3-31-05	$9.58	($0.04)		$1.13		$1.09	($0.00)	($0.00)	($0.00)	$10.67
1-1-04 to 3-31-04	9.13	(0.00)		0.45		0.45	(0.00)	(0.00)	(0.00)	9.58
7-24-03* to 12-31-03	6.85	(0.01)		2.29		2.28	(0.00)	(0.00)	(0.00)	9.13


Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Reimbursement		Ratio of Expenses to Average Net Assets excluding Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets including Reimbursement		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Reimbursement		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	11.10%	^a	$64	2.22%		N/A		- -0.80%		N/A		87%
1-1-04 to 3-31-04	4.83%	^a	29	2.07%	^b	N/A		- -1.07%	^b	N/A		61%
1-1-03 to 12-31-03	52.85%	^a	18	2.64%		2.73%		- -0.39%		- -0.48%		187%
1-1-02 to 12-31-02	- -11.31%	^a,d	5	2.21%		3.52%		0.20%		- -1.11%		16%
1-1-01 to 12-31-01	- -9.29%	^a,d	6	2.21%		3.57%		- -0.49%		- -1.85%		82%
1-1-00 to 12-31-00	- -18.25%	^a	9	2.16%		3.10%		0.83%		- -0.11%		108%
Class B
4-1-04 to 3-31-05	9.99%		$6	3.06%		N/A		- -1.57%		N/A		87%
1-1-04 to 3-31-04	4.65%		6	2.86%	^b	N/A		- -1.92%	^b	N/A		61%
1-1-03 to 12-31-03	49.74%		6	3.46%		3.55%		- -1.15%		- -1.24%		187%
1-1-02 to 12-31-02	- -12.35%		3	2.96%		4.27%		- -0.55%		- -1.86%		16%
1-1-01 to 12-31-01	- -10.35%		4	2.95%		4.31%		- -1.22%		- -2.58%		82%
1-1-00 to 12-31-00	- -18.80%		6	2.92%		3.86%		0.07%		- -0.87%		108%
Class C
4-1-04 to 3-31-05	10.12%		$7	3.06%		N/A		- -1.68%		N/A		87%
1-1-04 to 3-31-04	4.72%		3	2.57%	^b	N/A		- -1.59%	^b	N/A		61%
1-1-03 to 12-31-03	50.96%		2	3.48%		3.57%		- -1.14%		- -1.23%		187%
1-1-02 to 12-31-02	- -12.21%		1	2.94%		4.25%		- -0.53%		- -1.84%		16%
1-1-01 to 12-31-01	- -10.25%		1	2.90%		4.26%		- -1.18%		- -2.54%		82%
1-1-00 to 12-31-00	- -18.79%		2	3.03%		3.97%		- -0.03%		- -0.97%		108%
Class Y
4-1-04 to 3-31-05	11.38%		$1.10	1.88%		N/A		- -0.47%		N/A		87%
1-1-04 to 3-31-04	4.93%		0.71	1.64%	^b	N/A		- -0.68%	^b	N/A		61%
7-24-03* to 12-31-03	33.28%		0.50	2.01%	^b	2.18%	^b	- -0.40%	^b	- -0.57%	^b	187%	^e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)Based on average shares outstanding.

(d)Includes redemption fees added to capital.

(e)For the 12 months ended December 31, 2003.

IVY REAL ESTATE SECURITIES FUND

		Selected Per-Share Data

		Income (Loss) From Investment Operations				Less Distributions

For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$16.99	$0.15	^a	$1.93	$2.08	($0.25)	($0.69)	($0.94)	$18.13
8-1-03 to 3-31-04	13.42	0.62		3.38	4.00	(0.24)	(0.19)	(0.43)	16.99
8-1-02 to 7-31-03	11.93	0.48		1.72	2.20	(0.48)	(0.23)	(0.71)	13.42
8-1-01 to 7-31-02	11.67	0.32		1.01	1.33	(0.28)	(0.79)	(1.07)	11.93
8-1-00 to 7-31-01	11.23	0.51		0.47	0.98	(0.54)	(0.00)	(0.54)	11.67
8-1-99 to 7-31-00	10.25	0.43		1.00	1.43	(0.41)	(0.04)	(0.45)	11.23
Class B
4-1-05 to 3-31-05	$16.97	($0.07)	^a	$1.95	$1.88	($0.08)	($0.69)	($0.77)	$18.08
12-8-03* to 3-31-04	15.18	0.07		2.08	2.15	(0.17)	(0.19)	(0.36)	16.97
Class C
4-1-05 to 3-31-05	$16.99	$0.12		$1.82	$1.94	($0.14)	($0.69)	($0.83)	$18.10
12-8-03* to 3-31-04	15.18	0.08		2.09	2.17	(0.17)	(0.19)	(0.36)	16.99
Class Y
4-1-05 to 3-31-05	$16.99	$0.26	^a	$1.87	$2.13	($0.29)	($0.69)	($0.98)	$18.14
12-8-03* to 3-31-04	15.18	0.04		2.15	2.19	(0.19)	(0.19)	(0.38)	16.99


Ratios and Supplemental Data

For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	12.09%	^b	$155	1.67%		N/A		0.95%		N/A		48%
8-1-03 to 3-31-04	29.78%	^b	44	1.48%	^c,d	1.49%	^c,d	4.35%	^c,d	4.34%	^c,d	35%
8-1-02 to 7-31-03	19.65%	^b	60	1.46%		1.46%		2.95%		2.95%		48%
8-1-01 to 7-31-02	12.31%	^b	32	1.50%		1.69%		2.83%		2.64%		101%
8-1-00 to 7-31-01	9.10%	^b	17	1.50%		1.99%		4.29%		3.81%		173%
8-1-99 to 7-31-00	14.89%	^b	12	1.50%		2.72%		4.26%		3.04%		117%
Class B
4-1-05 to 3-31-05	10.91%		$10	2.73%		N/A		- -0.24%		N/A		48%
12-8-03* to 3-31-04	14.46%		2	3.02%	^c	N/A		- -5.40%	^c	N/A		35%	^e
Class C
4-1-05 to 3-31-05	11.21%		$10	2.49%		N/A		0.14%		N/A		48%
12-8-03* to 3-31-04	14.59%		2	2.82%	^c	N/A		- -4.46%	^c	N/A		35%	^e
Class Y
4-1-05 to 3-31-05	12.40%		$148	1.44%		N/A		1.59%		N/A		48%
12-8-03* to 3-31-04	14.78%		91	1.60%	^c	N/A		0.14%	^c	N/A		35%	^e

*Commencement of operations of the class.

(a)Based on average weekly shares outstanding.

(b)Total return calculated without taking into account the sales load deducted on an initial purchase.

(c)Annualized.

(d)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that included the effect of income and expenses for those Class B and Class C shares from August 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(e)For the eight months ended March 31, 2004.

IVY SCIENCE AND TECHNOLOGY FUND

	Selected Per-Share Data


		Income (Loss) From Investment Operations				Less Distributions


For the Period From	Net Asset Value Beginning of Period	Net Investment Income (Loss)		Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05	$19.55	($0.28)		$2.07	$1.79	($0.00)	($0.00)	($0.00)	$21.34
4-1-03 to 3-31-04	14.17	(0.19)		5.57	5.38	(0.00)	(0.00)	(0.00)	19.55
4-1-02 to 3-31-03	18.19	(0.32)		(3.70)	(4.02)	(0.00)	(0.00)	(0.00)	14.17
4-1-01 to 3-31-02	17.93	(0.45)		0.73	0.28	(0.00)	(0.02)	(0.02)	18.19
7-3-00* to 3-31-01	34.91	0.02		(9.35)	(9.33)	(0.00)	(7.65)	(7.65)	17.93

Class B
4-1-04 to 3-31-05	$18.77	($0.42)		$1.89	$1.47	($0.00)	($0.00)	($0.00)	$20.24
4-1-03 to 3-31-04	13.77	(0.39)		5.39	5.00	(0.00)	(0.00)	(0.00)	18.77
4-1-02 to 3-31-03	17.88	(0.34)		(3.77)	(4.11)	(0.00)	(0.00)	(0.00)	13.77
4-1-01 to 3-31-02	17.80	(0.38)		0.48	0.10	(0.00)	(0.02)	(0.02)	17.88
7-3-00* to 3-31-01	34.91	(0.06)		(9.40)	(9.46)	(0.00)	(7.65)	(7.65)	17.80

Class C
4-1-04 to 3-31-05	$18.98	($0.42)		$1.97	$1.55	($0.00)	($0.00)	($0.00)	$20.53
4-1-03 to 3-31-04	13.88	(0.38)		5.48	5.10	(0.00)	(0.00)	(0.00)	18.98
4-1-02 to 3-31-03	17.97	(0.25)		(3.84)	(4.09)	(0.00)	(0.00)	(0.00)	13.88
4-1-01 to 3-31-02	17.83	(0.24)		0.40	0.16	(0.00)	(0.02)	(0.02)	17.97
4-1-00 to 3-31-01	45.03	(0.12)		(19.43)	(19.55)	(0.00)	(7.65)	(7.65)	17.83

Class Y
4-1-04 to 3-31-05	$20.07	($0.18)	^(d)	$2.07	$1.89	($0.00)	($0.00)	($0.00)	$21.96
4-1-03 to 3-31-04	14.51	(0.15)		5.71	5.56	(0.00)	(0.00)	(0.00)	20.07
4-1-02 to 3-31-03	18.54	(0.26)		(3.77)	(4.03)	(0.00)	(0.00)	(0.00)	14.51
4-1-01 to 3-31-02	18.21	(0.51)		0.86	0.35	(0.00)	(0.02)	(7.65)	18.54
4-1-00 to 3-31-01	45.36	(0.01)		(19.49)	(19.50)	(0.00)	(7.65)	(7.65)	18.21

			Ratios and Supplemental Data


For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	9.16%	^a	$55	1.70%		- -1.09%		106%
4-1-03 to 3-31-04	37.97%	^a	36	1.80%		- -1.35%		114%
4-1-02 to 3-31-03	- -22.10%	^a	14	1.79%		- -0.92%		74%
4-1-01 to 3-31-02	1.56%	^a	12	1.75%		- -0.76%		91%
7-3-00* to 3-31-01	- -31.95%	^a	6	1.70%	^b	0.26%	^b	111%	^c

Class B
4-1-04 to 3-31-05	7.83%		$12	2.90%		- -2.31%		106%
4-1-03 to 3-31-04	36.31%		11	3.06%		- -2.60%		114%
4-1-02 to 3-31-03	- -22.99%		4	3.00%		- -2.12%		74%
4-1-01 to 3-31-02	0.56%		4	2.75%		- -1.73%		91%
7-3-00* to 3-31-01	- -32.37%		3	2.53%	^b	- -0.55%	^b	111%	^c

Class C
4-1-04 to 3-31-05	8.17%		$88	2.58%		- -2.00%		106%
4-1-03 to 3-31-04	36.74%		89	2.66%		- -2.15%		114%
4-1-02 to 3-31-03	- -22.76%		70	2.67%		- -1.77%		74%
4-1-01 to 3-31-02	0.89%		112	2.45%		- -1.40%		91%
4-1-00 to 3-31-01	- -47.49%		134	2.27%		- -0.44%		111%

Class Y
4-1-04 to 3-31-05	9.42%		$33	1.45%		- -0.87%		106%
4-1-03 to 3-31-04	38.32%		9	1.45%		- -1.03%		114%
4-1-02 to 3-31-03	- -21.74%		3	1.41%		- -0.53%		74%
4-1-01 to 3-31-02	1.92%		3	1.39%		- -0.43%		91%
4-1-00 to 3-31-01	- -47.00%		1	1.35%		0.47%		111%

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)For the fiscal year ended March 31, 2001.

(d)Based on average weekly shares outstanding.

IVY SMALL CAP GROWTH FUNDa

		Selected Per-Share Data


			Income (Loss) From Investment Operations			Less Distributions


For the Period From	Net Asset Value Beginning of Period		Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05		$11.36	($0.08)	$1.04	$0.96	($0.00)	($0.00)	($0.00)	$12.32
4-1-03 to 3-31-04		8.25	(0.08)	3.19	3.11	(0.00)	(0.00)	(0.00)	11.36
4-1-02 to 3-31-03		10.59	(0.23)	(2.11)	(2.34)	(0.00)	(0.00)	(0.00)	8.25
4-1-01 to 3-31-02		9.43	(0.59)	1.75	1.16	(0.00)	(0.00)	(0.00)	10.59
7-3-00* to 3-31-01		19.64	(0.02)	(4.74)	(4.76)	(0.00)	(5.45)	(5.45)	9.43

Class B
4-1-04 to 3-31-05		$10.91	($0.23)	$1.05	$0.82	($0.00)	($0.00)	($0.00)	$11.73
4-1-03 to 3-31-04		8.01	(0.20)	3.10	2.90	(0.00)	(0.00)	(0.00)	10.91
4-1-02 to 3-31-03		10.40	(0.21)	(2.18)	(2.39)	(0.00)	(0.00)	(0.00)	8.01
4-1-01 to 3-31-02		9.36	(0.26)	1.30	1.04	(0.00)	(0.00)	(0.00)	10.40
7-6-00* to 3-31-01		19.26	(0.06)	(4.39)	(4.45)	(0.00)	(5.45)	(5.45)	9.36

Class C
4-1-04 to 3-31-05		$11.02	($0.24)	$1.09	$0.85	($0.00)	($0.00)	($0.00)	$11.87
4-1-03 to 3-31-04		8.07	(0.21)	3.16	2.95	(0.00)	(0.00)	(0.00)	11.02
4-1-02 to 3-31-03		10.44	(0.16)	(2.21)	(2.37)	(0.00)	(0.00)	(0.00)	8.07
4-1-01 to 3-31-02		9.38	(0.16)	1.22	1.06	(0.00)	(0.00)	(0.00)	10.44
4-1-00 to 3-31-01		21.64	(0.10)	(6.71)	(6.81)	(0.00)	(5.45)	(5.45)	9.38

Class Y
4-1-04 to 3-31-05		$12.26	($0.09)	$1.16	$1.07	($0.00)	($0.00)	($0.00)	$13.33
4-1-03 to 3-31-04		8.89	(0.10)	3.47	3.37	(0.00)	(0.00)	(0.00)	12.26
4-1-02 to 3-31-03		11.39	(0.11)	(2.39)	(2.50)	(0.00)	(0.00)	(0.00)	8.89
4-1-01 to 3-31-02		10.14	(0.34)	1.59	1.25	(0.00)	(0.00)	(0.00)	11.39
4-1-00 to 3-31-01		22.65	(0.20)	(6.86)	(7.06)	(0.00)	(5.45)	(5.45)	10.14

			Ratios and Supplemental Data


For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	8.45%	^b	$72	1.54%		- -1.14%		83%
4-1-03 to 3-31-04	37.70%	^b	92	1.48%		- -1.21%		91%
4-1-02 to 3-31-03	- -22.10%	^b	20	1.54%		- -1.22%		31%
4-1-01 to 3-31-02	12.30%	^b	16	1.39%		- -0.93%		29%
7-3-00* to 3-31-01	- -28.30%	^b	4	1.49%	^c	- -0.39%	^c	48%	^d

Class B
4-1-04 to 3-31-05	7.52%		$15	2.52%		- -2.11%		83%
4-1-03 to 3-31-04	36.21%		13	2.57%		- -2.29%		91%
4-1-02 to 3-31-03	- -22.98%		7	2.64%		- -2.31%		31%
4-1-01 to 3-31-02	11.11%		8	2.43%		- -1.94%		29%
7-6-00* to 3-31-01	- -27.29%		5	2.31%	^c	- -1.18%	^c	48%	^d

Class C
4-1-04 to 3-31-05	7.71%		$308	2.26%		- -1.85%		83%
4-1-03 to 3-31-04	36.56%		334	2.31%		- -2.03%		91%
4-1-02 to 3-31-03	- -22.70%		273	2.31%		- -1.98%		31%
4-1-01 to 3-31-02	11.30%		435	2.20%		- -1.70%		29%
4-1-00 to 3-31-01	- -35.17%		459	2.12%		- -0.81%		48%

Class Y
4-1-04 to 3-31-05	8.73%		$115	1.36%		- -0.95%		83%
4-1-03 to 3-31-04	37.91%		124	1.35%		- -1.09%		91%
4-1-02 to 3-31-03	- -21.95%		42	1.33%		- -1.00%		31%
4-1-01 to 3-31-02	12.33%		48	1.31%		- -0.83%		29%
4-1-00 to 3-31-01	- -34.67%		21	1.30%		- -0.02%		48%

*Commencement of operations of the class.

(a)Small Cap Growth Fund (formerly Growth Fund) changed its name and strategy effective June 30, 2000.

(b)Total return calculated without taking into account the sales load deducted on an initial purchase.

(c)Annualized.

(d)For the fiscal year ended March 31, 2001.

IVY SMALL CAP VALUE FUND

		Selected Per-Share Data


			Income (Loss) From Investment Operations			Less Distributions


For the Period From	Net Asset Value Beginning of Period		Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Tax Return of Capital	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05		$16.68	($0.13)	$1.52	$1.39	($0.00)	($1.19)	($0.00)	($1.19)	$16.88
8-1-03 to 3-31-04		13.02	(0.08)	3.76	3.68	(0.00)	(0.02)	(0.00)	(0.02)	16.68
8-1-02 to 7-31-03		12.25	(0.09)	1.74	1.65	(0.00)	(0.88)	(0.00)	(0.88)	13.02
8-1-01 to 7-31-02		15.05	(0.08)	(1.84)	(1.92)	(0.00)	(0.88)	(0.00)	(0.88)	12.25
8-1-00 to 7-31-01		11.47	(0.06)	4.04	3.98	(0.00)	(0.40)	(0.00)	(0.40)	15.05
8-1-99 to 7-31-00		11.20	0.05	0.32	0.37	(0.10)	(0.00)	(0.00)	(0.10)	11.47

Class B
4-1-04 to 3-31-05		$16.61	($0.23)	$1.40	$1.17	($0.00)	($1.19)	N/A	($1.19)	$16.59
12-8-03* to 3-31-04		15.27	(0.05)	1.41	1.36	(0.00)	(0.02)	N/A	(0.02)	16.61

Class C
4-1-04 to 3-31-05		$16.63	($0.19)	$1.42	$1.23	($0.00)	($1.19)	N/A	($1.19)	$16.67
12-8-03* to 3-31-04		15.27	(0.05)	1.43	1.38	(0.00)	(0.02)	N/A	(0.02)	16.63

Class Y
4-1-04 to 3-31-05		$16.68	($0.10)	$1.53	$1.43	($0.00)	($1.19)	N/A	($1.19)	$16.92
12-8-03* to 3-31-04		15.27	(0.04)	1.47	1.43	(0.00)	(0.02)	N/A	(0.02)	16.68

				Ratios and Supplemental Data


For the Period From	Total Return			Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver	Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver	Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05		8.23%	a	$66	1.76%		N/A	- -0.79%		N/A	124%
8-1-03 to 3-31-04		28.29%	a	65	1.65%	b,c	N/A	- -0.76%	b,c	N/A	27%
8-1-02 to 7-31-03		14.91%	a	59	1.53%		1.53%	- -0.82%		- -0.82%	54%
8-1-01 to 7-31-02		- -13.27%	a	53	1.27%		1.37%	- -0.57%		- -0.67%	37%
8-1-00 to 7-31-01		35.18%	a	55	1.40%		1.51%	- -0.56%		- -0.67%	38%
8-1-99 to 7-31-00		3.74%	a	31	1.40%		1.71%	0.63%		0.32%	169%

Class B
4-1-04 to 3-31-05		6.92%		$5	3.02%		N/A	- -1.88%		N/A	124%
12-8-03* to 3-31-04		8.93%		1	3.79%	b	N/A	- -2.93%	b	N/A	27%	e

Class C
4-1-04 to 3-31-05		7.28%		$8	2.65%		N/A	- -1.53%		N/A	124%
12-8-03* to 3-31-04		9.06%		2	2.83%	b	N/A	- -2.00%	b	N/A	27%	e

Class Y
4-1-04 to 3-31-05		8.48%		$25	1.53%		N/A	- -0.56%		N/A	124%
12-8-03* to 3-31-04		9.38%		25	1.60%	b	N/A	- -0.82%	b	N/A	27%	e

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(c)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that included the effect of income and expenses for those Class B and Class C shares from August 1, 2003 up to the time of merger. Actual expenses that applied to Class A shareholders were lower than shown above.

(d)Not shown due to rounding.

(e)For the eight months ended March 31, 2004.

IVY VALUE FUND

		Selected Per-Share Data


			Income (Loss) From Investment Operations			Less Distributions


For the Period From	Net Asset Value Beginning of Period		Net Investment Income (Loss)	Net Gain (Loss) on Investments (Realized and Unrealized)	Total from Investment Operations	From Net Investment Income	From Realized Gains	Tax Return of Capital	Total Distributions	Net Asset Value End of Period

Class A
4-1-04 to 3-31-05		$14.54	$0.15	$1.48	$1.63	($0.13)	($0.00)	($0.00)	($0.13)	$16.04
8-1-03 to 3-31-04		12.54	0.08	1.98	2.06	(0.06)	(0.00)	(0.00)	(0.06)	14.54
8-1-02 to 7-31-03		11.81	0.12	0.72	0.84	(0.11)	(0.00)	(0.00)	(0.11)	12.54
10-1-01 to 7-31-02		12.59	0.08	(0.78)	(0.70)	(0.08)	(0.00)	(0.00)	(0.08)	11.81
10-1-00 to 9-30-01		15.08	0.09	(2.50)	(2.41)	(0.08)	(0.00)	(0.00)	(0.08)	12.59
10-1-99 to 9-30-00		15.14	0.06	0.13	0.19	(0.11)	(0.13)	(0.01)	(0.25)	15.08
10-1-98 to 9-30-99		13.88	0.15	1.26	1.41	(0.15)	(0.00)	(0.00)	(0.15)	15.14

Class B
4-1-04 to 3-31-05		$14.50	$0.03	$1.44	$1.47	($0.00)	($0.00)	N/A	($0.00)	$15.97
12-8-03* to 3-31-04		13.63	0.01	0.90	0.91	(0.04)	(0.00)	N/A	(0.04)	14.50

Class C
4-1-04 to 3-31-05		$14.51	$0.03	$1.46	$1.49	($0.00)	($0.00)	N/A	($0.00)	$16.00
12-8-03* to 3-31-04		13.63	0.02	0.90	0.92	(0.04)	(0.00)	N/A	(0.04)	14.51

Class Y
4-1-04 to 3-31-05		$14.54	$0.17	$1.49	$1.66	($0.15)	($0.00)	N/A	($0.15)	$16.05
12-8-03* to 3-31-04		13.63	0.01	0.95	0.96	(0.05)	(0.00)	N/A	(0.05)	14.54

			Ratios and Supplemental Data


For the Period From	Total Return		Net Assets End of Period (in Millions)	Ratio of Expenses to Average Net Assets including Voluntary Expense Waiver		Ratio of Expenses to Average Net Assets excluding Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets including Voluntary Expense Waiver		Ratio of Net Investment Income (Loss) to Average Net Assets excluding Voluntary Expense Waiver		Portfolio Turnover Rate

Class A
4-1-04 to 3-31-05	11.21%	^a	$41	1.47%		N/A		0.92%		N/A		81%
8-1-03 to 3-31-04	16.32%	^a	52	1.45%	^b,c	1.52%	^b,c	0.61%	^b,c	0.53%	^b,c	86%
8-1-02 to 7-31-03	7.23%	^a	64	1.29%		1.50%		1.05%		0.84%		123%
10-1-01 to 7-31-02	- -5.72%	^a	58	1.24%	^b	1.41%	^b	0.70%	^b	0.53%	^b	95%
10-1-00 to 9-30-01	- -15.97%	^a	66	1.24%		1.39%		0.61%		0.46%		148%
10-1-99 to 9-30-00	1.26%	^a	81	1.24%		1.34%		0.43%		0.33%		180%
10-1-98 to 9-30-99	10.13%	^a	93	1.21%		1.23%		0.94%		0.92%		79%

Class B
4-1-04 to 3-31-05	10.14%		$2	2.53%		N/A		0.07%		N/A		81%
12-8-03* to 3-31-04	6.65%		1	3.12%	^b	N/A		- -1.29%	^b	N/A		86%	^d

Class C
4-1-04 to 3-31-05	10.27%		$3	2.42%		N/A		0.15%		N/A		81%
12-8-03* to 3-31-04	6.73%		1	2.90%	^b	N/A		- -1.18%	^b	N/A		86%	^d

Class Y
4-1-04 to 3-31-05	11.44%		$20	1.34%		N/A		1.09%		N/A		81%
12-8-03* to 3-31-04	7.05%		22	1.48%	^b	N/A		0.35%	^b	N/A		86%	^d

*Commencement of operations of the class.

(a)Total return calculated without taking into account the sales load deducted on an initial purchase.

(b)Annualized.

(d)For the eight months ended March 31, 2004.

IVY FUNDS

Custodian	Distributor
UMB Bank, n.a.	Ivy Funds Distributor, Inc.
928 Grand Boulevard	6300 Lamar Avenue
Kansas City, Missouri 64106	P. O. Box 29217
	Shawnee Mission, Kansas
Legal Counsel	66201-9217
Bell, Boyd & Lloyd LLC	913.236.2000
Three First National Plaza	800.777.6472
70 West Madison Street
Suite 3300
Chicago, Illinois 60602-4207

Independent Registered
Public Accounting Firm	Transfer Agent
Deloitte & Touche LLP	Waddell & Reed
1010 Grand Boulevard	Services Company
Kansas City, Missouri	6300 Lamar Avenue
64106-2232	P. O. Box 29217
	Shawnee Mission, Kansas
Investment Manager	66201-9217
Ivy Investment	913.236.2000
Management Company	800.777.6472
6300 Lamar Avenue
P. O. Box 29217	Accounting Services Agent
Shawnee Mission, Kansas	Waddell & Reed
66201-9217	Services Company
913.236.2000	6300 Lamar Avenue
800.777.6472	P. O. Box 29217
	Shawnee Mission, Kansas
	66201-9217
	913.236.2000
	800.777.6472

IVY FUNDS

You can get more information about each Fund in the--

Statement of Additional Information (SAI), which contains detailed information about a Fund, particularly the investment policies and practices. You may not be aware of important information about a Fund unless you read both the Prospectus and the SAI. The current SAI is on file with the Securities and Exchange Commission (SEC) and it is incorporated into this Prospectus by reference (that is, the SAI is legally part of the Prospectus).

Annual and Semiannual Reports to Shareholders, which detail a Fund's actual investments and include financial statements as of the close of the particular annual or semiannual period. The annual report also contains a discussion of the market conditions and investment strategies that significantly affected a Fund's performance during the year covered by the report.

To request a copy of the Funds' current SAI or copies of the most recent Annual and Semiannual reports, without charge, or for other inquiries, contact the Fund or Ivy Funds Distributor, Inc. at the address and telephone number below. Copies of the SAI, Annual and/or Semiannual reports may also be requested via e-mail at request@waddell.com and are available at www.ivyfunds.com.

Information about the Funds (including the current SAI and most recent Annual and Semiannual Reports) is available from the SEC's web site at http://www.sec.gov and may also be obtained, after paying a duplicating fee, by electronic request at publicinfo@sec.gov or from the SEC's Public Reference Room in Washington, D.C. 20549-0102. You can find out about the operation of the Public Reference Room and applicable copying charges by calling 202.942.8090.

The Funds' SEC file numbers are as follows:

Ivy Funds, Inc. 811-06569

Ivy Fund: 811-01028

IVY FUNDS DISTRIBUTOR, INC.

6300 Lamar Avenue

P. O. Box 29217

Shawnee Mission, Kansas 66201-9217

913.236.2000

800.777.6472

WRP3300 (7-05)

534334

Ivy Funds Inactive N-14Registration statement for investment companies business combination