UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
FORM N-CSR |
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES |
Investment Company Act file number 811-01028 |
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Ivy Funds |
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(Exact name of registrant as specified in charter) |
6300 Lamar Avenue, Overland Park, Kansas 66202 |
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(Address of principal executive offices) (Zip code) |
Kristen A. Richards |
6300 Lamar Avenue |
Overland Park, Kansas 66202 |
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(Name and address of agent for service) |
Registrant's telephone number, including area code: 913-236-2000 |
Date of fiscal year end: March 31 |
Date of reporting period: September 30, 2007 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report
September 30, 2007
Ivy Balanced Fund
Ivy Bond Fund
Ivy Cundill Global Value Fund
Ivy Dividend Income Fund
Ivy European Opportunities Fund
Ivy Global Natural Resources Fund
Ivy International Balanced Fund
Ivy International Core Equity Fund
Ivy International Growth Fund
Ivy Managed European/Pacific Fund
Ivy Managed International Opportunities Fund
Ivy Mortgage Securities Fund
Ivy Pacific Opportunities Fund
Ivy Real Estate Securities Fund
Ivy Small Cap Value Fund
Ivy Value Fund
3 | President's Letter | |
5 | Illustration of Fund Expenses | |
15 | Ivy Balanced Fund | |
31 | Ivy Bond Fund | |
56 | Ivy Cundill Global Value Fund | |
74 | Ivy Dividend Income Fund | |
89 | Ivy European Opportunities Fund | |
105 | Ivy Global Natural Resources Fund | |
127 | Ivy International Balanced Fund | |
146 | Ivy International Core Equity Fund | |
162 | Ivy International Growth Fund | |
179 | Ivy Managed European/Pacific Fund | |
190 | Ivy Managed International Opportunities Fund | |
201 | Ivy Mortgage Securities Fund | |
226 | Ivy Pacific Opportunities Fund | |
246 | Ivy Real Estate Securities Fund | |
260 | Ivy Small Cap Value Fund | |
275 | Ivy Value Fund | |
289 | Notes to Financial Statements | |
328 | Renewal of Investment Management Agreement | |
333 | Proxy Voting Information | |
334 | Quarterly Portfolio Schedule Information | |
335 | IRA Disclosure |
This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus and current performance information.
President's Letter
September 30, 2007
Dear Shareholder:
It's been a rewarding but volatile six months for equity investors. Stock markets around the globe generally provided attractive returns, with energy stocks outpacing all other sectors. Since the spring it has appeared to us that large company domestic growth stocks have generally come back in favor, boosted by low valuations and solid overseas growth for U.S.-based multinational companies. Also, quality now seems to be a more important equity attribute than we have seen in several years.
For the bond market, it's also been a bumpy road. Corporate and mortgage bond prices faced greater volatility as a subprime lending crisis of global dimensions unfolded. The U.S. dollar weakened against most foreign currencies, making dollar-denominated bonds less attractive. High yield investors, meanwhile, demanded greater income to help offset concern about bond defaults and the potential for a U.S. recession. After months of expressing anxiety about lingering consumer inflation, the Federal Reserve changed policy in September and reduced its short-term interest rate target by 50 basis points (0.50 percent) to 4.75 percent. More cuts may follow.
Enclosed is our report on your Ivy Fund's operations for the six months ended September 30, 2007. The S&P 500 Index advanced 8.44 percent over the period while the Lehman Brothers Aggregate Bond Index rose 2.31 percent.
U.S. growth slows
Dragged down by the worst housing market in a generation, the U.S. economy's four-year-old expansion is slowing. However, growth still appears robust for most of Asia. North America was fortunate to have a relatively mild hurricane season, and this may have been a factor in helping to keep a lid on gasoline prices. This year the biggest financial storm was found not in nature, but in the commercial paper and mortgage markets. Liquidity dried up for both business and consumer borrowers with less than perfect credit. Consequently, the financial and consumer discretionary sectors of the S&P 500 have been hard hit over the past six months, with each falling while most other sectors rose.
The economic news is mixed, as you can see in the Economic Snapshot chart below. Overall inflation is the same as it was six months ago. Unemployment is slightly higher than six months ago but is still relatively low. However, the cost of financing a home is slightly higher. Overall GDP growth is solid, while oil prices are substantially higher.
Economic Snapshot | ||||||
---|---|---|---|---|---|---|
9-30-2007 | 3-31-2007 | |||||
U.S. unemployment rate | 4.70 | % | 4.40 | % | ||
Inflation (U.S. Consumer Price Index) | 2.80 | % | 2.80 | % | ||
U.S. GDP | 3.90 | % | 1.50 | % | ||
30-year fixed mortgage rate | 6.28 | % | 6.13 | % | ||
Oil price per barrel | $ | 81.66 | $ | 65.87 |
Source: Bloomberg, U.S. Department of Labor
The U.S. Consumer Price Index is the government's measure of the change in the retail cost of goods and services. Gross domestic product measures year-over-year changes in the output of goods and services. Mortgage rates shown reflect the average rate on a conventional loan with a 60-day lender commitment. Oil prices reflect the market price of West Texas intermediate grade crude.
Stock valuations for companies in the S&P 500 appear reasonable to us. As we look forward, even though past performance does not guarantee future results, presidential election years typically have been positive for investors. However, we recommend a prudent level of caution in 2008, as we believe that the range of possibilities for investors is as wide as the current field of presidential candidates. As always, we believe that maintaining a well-rounded portfolio is an essential element for securing your long-term financial future. In both politics and investing, it may be wise to remember that nothing - good or bad - can ever be assured.
Our commitment
At the Ivy Funds, we consistently focus on offering you strategies that emphasize participation in positive markets, as well as a very strong effort to manage risk. We will strive to earn your continued confidence for many years to come.
Respectfully,
President
The opinions expressed in this letter are those of the President of Ivy Funds, and are current only through the end of the period of the report, as stated on the cover. The President's views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
Illustration of Fund Expenses
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following tables are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2007.
Actual ExpensesThe first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000 = 7.5), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. There may be additional fees charged to holders of certain accounts that are not included in the expenses shown in the tables. These fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Simple IRAs, Tax-Sheltered Accounts (TSAs), Keogh Plans, Owner Only 401(k) (Exclusive K) Plans and Final Pay Plans. As of the close of the six months covered by the tables, a customer is charged an annual fee of $15 within each plan type. This fee is waived for IRA Rollovers and Conversion Roth IRAs if the customer owns another type of IRA. Coverdell Education Savings Account plans are charged an annual fee of $10 per customer. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the expense tables. Additional fees have the effect of reducing investment returns.
Hypothetical Example for Comparison PurposesThe second line for each share class of the following tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line of each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Ivy Balanced Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,117.10 | 1.40 | % | $ | 7.41 | ||||
Class B | 1,000 | 1,111.60 | 2.32 | 12.25 | ||||||||
Class C | 1,000 | 1,112.70 | 2.12 | 11.20 | ||||||||
Class E** | 1,000 | 1,116.30 | 1.19 | 6.24 | ||||||||
Class I** | 1,000 | 1,116.70 | 1.06 | 5.61 | ||||||||
Class Y | 1,000 | 1,117.70 | 1.29 | 6.88 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.06 | 1.40 | % | $ | 7.06 | ||||
Class B | 1,000 | 1,013.45 | 2.32 | 11.68 | ||||||||
Class C | 1,000 | 1,014.46 | 2.12 | 10.68 | ||||||||
Class E** | 1,000 | 1,019.10 | 1.19 | 6.06 | ||||||||
Class I** | 1,000 | 1,019.75 | 1.06 | 5.35 | ||||||||
Class Y | 1,000 | 1,018.60 | 1.29 | 6.56 |
Ivy Bond Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,001.50 | 1.21 | % | $ | 6.10 | ||||
Class B | 1,000 | 995.70 | 2.36 | 11.77 | ||||||||
Class C | 1,000 | 997.30 | 2.02 | 10.09 | ||||||||
Class E** | 1,000 | 1,000.30 | 1.33 | 6.60 | ||||||||
Class I** | 1,000 | 1,003.20 | 0.95 | 4.71 | ||||||||
Class Y | 1,000 | 1,000.80 | 1.38 | 6.90 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,019.01 | 1.21 | % | $ | 6.16 | ||||
Class B | 1,000 | 1,013.23 | 2.36 | 11.88 | ||||||||
Class C | 1,000 | 1,014.95 | 2.02 | 10.18 | ||||||||
Class E** | 1,000 | 1,018.40 | 1.33 | 6.76 | ||||||||
Class I** | 1,000 | 1,020.32 | 0.95 | 4.85 | ||||||||
Class Y | 1,000 | 1,018.16 | 1.38 | 6.96 |
Ivy Cundill Global Value Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 948.40 | 1.55 | % | $ | 7.60 | ||||
Class B | 1,000 | 943.50 | 2.43 | 11.86 | ||||||||
Class C | 1,000 | 945.20 | 2.20 | 10.70 | ||||||||
Class E** | 1,000 | 949.50 | 2.05 | 9.94 | ||||||||
Class I** | 1,000 | 958.20 | 1.20 | 5.78 | ||||||||
Class Y | 1,000 | 949.80 | 1.20 | 5.85 | ||||||||
Advisor Class*** | 1,000 | 950.30 | 1.04 | 5.07 | ||||||||
Class II*** | 1,000 | 950.50 | 1.11 | 5.46 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.28 | 1.55 | % | $ | 7.87 | ||||
Class B | 1,000 | 1,012.88 | 2.43 | 12.28 | ||||||||
Class C | 1,000 | 1,014.05 | 2.20 | 11.08 | ||||||||
Class E** | 1,000 | 1,014.79 | 2.05 | 10.38 | ||||||||
Class I** | 1,000 | 1,019.07 | 1.20 | 6.06 | ||||||||
Class Y | 1,000 | 1,019.06 | 1.20 | 6.06 | ||||||||
Advisor Class*** | 1,000 | 1,019.84 | 1.04 | 5.25 | ||||||||
Class II*** | 1,000 | 1,019.52 | 1.11 | 5.65 |
Ivy Dividend Income Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,131.40 | 1.37 | % | $ | 7.35 | ||||
Class B | 1,000 | 1,125.70 | 2.34 | 12.44 | ||||||||
Class C | 1,000 | 1,127.70 | 2.15 | 11.49 | ||||||||
Class E** | 1,000 | 1,125.30 | 2.17 | 11.48 | ||||||||
Class I** | 1,000 | 1,129.40 | 1.01 | 5.32 | ||||||||
Class Y | 1,000 | 1,132.50 | 1.25 | 6.72 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.22 | 1.37 | % | $ | 6.96 | ||||
Class B | 1,000 | 1,013.34 | 2.34 | 11.78 | ||||||||
Class C | 1,000 | 1,014.31 | 2.15 | 10.88 | ||||||||
Class E** | 1,000 | 1,014.19 | 2.17 | 10.98 | ||||||||
Class I** | 1,000 | 1,020.02 | 1.01 | 5.15 | ||||||||
Class Y | 1,000 | 1,018.82 | 1.25 | 6.36 |
Ivy European Opportunities Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,081.80 | 1.57 | % | $ | 8.22 | ||||
Class B | 1,000 | 1,077.70 | 2.34 | 12.15 | ||||||||
Class C | 1,000 | 1,078.20 | 2.24 | 11.74 | ||||||||
Class E** | 1,000 | 1,080.10 | 1.30 | 6.76 | ||||||||
Class I** | 1,000 | 1,082.50 | 1.17 | 6.04 | ||||||||
Class Y | 1,000 | 1,083.00 | 1.41 | 7.39 | ||||||||
Advisor Class*** | 1,000 | 1,084.00 | 1.15 | 6.04 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.20 | 1.57 | % | $ | 7.97 | ||||
Class B | 1,000 | 1,013.35 | 2.34 | 11.78 | ||||||||
Class C | 1,000 | 1,013.82 | 2.24 | 11.38 | ||||||||
Class E** | 1,000 | 1,018.54 | 1.30 | 6.56 | ||||||||
Class I** | 1,000 | 1,019.21 | 1.17 | 5.96 | ||||||||
Class Y | 1,000 | 1,017.98 | 1.41 | 7.16 | ||||||||
Advisor Class*** | 1,000 | 1,019.29 | 1.15 | 5.86 |
Ivy Global Natural Resources Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,270.30 | 1.29 | % | $ | 7.38 | ||||
Class B | 1,000 | 1,265.30 | 2.08 | 11.78 | ||||||||
Class C | 1,000 | 1,265.80 | 1.99 | 11.33 | ||||||||
Class E** | 1,000 | 1,254.40 | 2.28 | 12.74 | ||||||||
Class I** | 1,000 | 1,263.40 | 1.03 | 5.77 | ||||||||
Class R | 1,000 | 1,268.50 | 1.57 | 8.96 | ||||||||
Class Y | 1,000 | 1,270.70 | 1.20 | 6.81 | ||||||||
Advisor Class*** | 1,000 | 1,272.20 | 0.96 | 5.45 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.61 | 1.29 | % | $ | 6.56 | ||||
Class B | 1,000 | 1,014.63 | 2.08 | 10.48 | ||||||||
Class C | 1,000 | 1,015.07 | 1.99 | 10.08 | ||||||||
Class E** | 1,000 | 1,013.64 | 2.28 | 11.48 | ||||||||
Class I** | 1,000 | 1,019.93 | 1.03 | 5.15 | ||||||||
Class R | 1,000 | 1,017.22 | 1.57 | 7.97 | ||||||||
Class Y | 1,000 | 1,019.07 | 1.20 | 6.06 | ||||||||
Advisor Class*** | 1,000 | 1,020.25 | 0.96 | 4.85 |
Ivy International Balanced Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,065.30 | 1.31 | % | $ | 6.82 | ||||
Class B | 1,000 | 1,059.40 | 2.29 | 11.84 | ||||||||
Class C | 1,000 | 1,061.10 | 2.05 | 10.61 | ||||||||
Class E** | 1,000 | 1,060.30 | 2.03 | 10.40 | ||||||||
Class I** | 1,000 | 1,064.90 | 0.99 | 5.06 | ||||||||
Class Y | 1,000 | 1,065.50 | 1.28 | 6.61 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.50 | 1.31 | % | $ | 6.66 | ||||
Class B | 1,000 | 1,013.58 | 2.29 | 11.58 | ||||||||
Class C | 1,000 | 1,014.79 | 2.05 | 10.38 | ||||||||
Class E** | 1,000 | 1,014.89 | 2.03 | 10.28 | ||||||||
Class I** | 1,000 | 1,020.13 | 0.99 | 4.95 | ||||||||
Class Y | 1,000 | 1,018.67 | 1.28 | 6.46 |
Ivy International Core Equity Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,136.10 | 1.54 | % | $ | 8.22 | ||||
Class B | 1,000 | 1,131.80 | 2.35 | 12.58 | ||||||||
Class C | 1,000 | 1,132.50 | 2.21 | 11.84 | ||||||||
Class E** | 1,000 | 1,133.30 | 2.33 | 12.27 | ||||||||
Class I** | 1,000 | 1,138.30 | 1.16 | 6.09 | ||||||||
Class Y | 1,000 | 1,136.60 | 1.41 | 7.58 | ||||||||
Advisor Class*** | 1,000 | 1,134.00 | 1.82 | 9.71 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.36 | 1.54 | % | $ | 7.77 | ||||
Class B | 1,000 | 1,013.30 | 2.35 | 11.88 | ||||||||
Class C | 1,000 | 1,013.99 | 2.21 | 11.18 | ||||||||
Class E** | 1,000 | 1,013.40 | 2.33 | 11.78 | ||||||||
Class I** | 1,000 | 1,019.27 | 1.16 | 5.86 | ||||||||
Class Y | 1,000 | 1,017.98 | 1.41 | 7.16 | ||||||||
Advisor Class*** | 1,000 | 1,015.93 | 1.82 | 9.17 |
Ivy International Growth Fund Expenses | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | |||||||||
Based on Actual Fund Return (1) | |||||||||||||
Class A | $ | 1,000 | $ | 1,156.40 | 1.45 | % | $ | 7.87 | |||||
Class B | 1,000 | 1,150.70 | 2.49 | 13.44 | |||||||||
Class C | 1,000 | 1,150.80 | 2.47 | 13.33 | |||||||||
Class E** | 1,000 | 1,159.20 | 1.30 | 6.91 | |||||||||
Class I** | 1,000 | 1,170.10 | 1.18 | 6.29 | |||||||||
Class Y | 1,000 | 1,156.40 | 1.46 | 7.87 | |||||||||
Advisor Class*** | 1,000 | 1,138.40 | 4.57 | 24.48 | |||||||||
Class II*** | 1,000 | 1,157.00 | 1.20 | 6.47 | |||||||||
Based on 5% Return (2) | |||||||||||||
Class A | $ | 1,000 | $ | 1,017.82 | 1.45 | % | $ | 7.37 | |||||
Class B | 1,000 | 1,012.61 | 2.49 | 12.58 | |||||||||
Class C | 1,000 | 1,012.68 | 2.47 | 12.48 | |||||||||
Class E** | 1,000 | 1,018.57 | 1.30 | 6.56 | |||||||||
Class I** | 1,000 | 1,019.17 | 1.18 | 5.96 | |||||||||
Class Y | 1,000 | 1,017.74 | 1.46 | 7.36 | |||||||||
Advisor Class*** | 1,000 | 1,002.15 | 4.57 | 22.92 | |||||||||
Class II*** | 1,000 | 1,019.06 | 1.20 | 6.06 |
Ivy Managed European/Pacific Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 4-2-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,191.00 | 1.27 | % | $ | 6.90 | ||||
Class B | 1,000 | 1,188.00 | 2.06 | 11.16 | ||||||||
Class C | 1,000 | 1,188.00 | 2.03 | 11.05 | ||||||||
Class E** | 1,000 | 1,192.00 | 1.20 | 6.58 | ||||||||
Class I** | 1,000 | 1,194.00 | 0.94 | 5.16 | ||||||||
Class Y | 1,000 | 1,192.00 | 1.19 | 6.47 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.72 | 1.27 | % | $ | 6.46 | ||||
Class B | 1,000 | 1,014.76 | 2.06 | 10.38 | ||||||||
Class C | 1,000 | 1,014.88 | 2.03 | 10.28 | ||||||||
Class E** | 1,000 | 1,019.05 | 1.20 | 6.06 | ||||||||
Class I** | 1,000 | 1,020.34 | 0.94 | 4.75 | ||||||||
Class Y | 1,000 | 1,019.10 | 1.19 | 6.06 |
Ivy Managed International Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 4-2-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,125.00 | 0.89 | % | $ | 4.68 | ||||
Class B | 1,000 | 1,122.00 | 1.69 | 8.91 | ||||||||
Class C | 1,000 | 1,122.00 | 1.63 | 8.59 | ||||||||
Class E** | 1,000 | 1,126.00 | 0.85 | 4.46 | ||||||||
Class I** | 1,000 | 1,127.00 | 0.29 | 3.08 | ||||||||
Class Y | 1,000 | 1,126.00 | 0.85 | 4.46 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,020.63 | 0.89 | % | $ | 4.45 | ||||
Class B | 1,000 | 1,016.62 | 1.69 | 8.57 | ||||||||
Class C | 1,000 | 1,016.88 | 1.63 | 8.27 | ||||||||
Class E** | 1,000 | 1,020.83 | 0.85 | 4.24 | ||||||||
Class I** | 1,000 | 1,047.59 | 0.29 | 3.07 | ||||||||
Class Y | 1,000 | 1,020.79 | 0.85 | 4.34 |
Ivy Mortgage Securities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,005.00 | 1.14 | % | $ | 5.71 | ||||
Class B | 1,000 | 1,000.10 | 2.12 | 10.70 | ||||||||
Class C | 1,000 | 1,001.10 | 1.92 | 9.61 | ||||||||
Class E** | 1,000 | 1,003.70 | 1.29 | 6.41 | ||||||||
Class I** | 1,000 | 1,010.00 | 0.79 | 3.92 | ||||||||
Class Y | 1,000 | 1,005.70 | 1.01 | 5.11 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,019.37 | 1.14 | % | $ | 5.76 | ||||
Class B | 1,000 | 1,014.42 | 2.12 | 10.78 | ||||||||
Class C | 1,000 | 1,015.43 | 1.92 | 9.67 | ||||||||
Class E** | 1,000 | 1,018.58 | 1.29 | 6.56 | ||||||||
Class I** | 1,000 | 1,021.11 | 0.79 | 4.04 | ||||||||
Class Y | 1,000 | 1,020.02 | 1.01 | 5.15 |
Ivy Pacific Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,370.80 | 1.77 | % | $ | 10.55 | ||||
Class B | 1,000 | 1,364.10 | 2.77 | 16.43 | ||||||||
Class C | 1,000 | 1,365.60 | 2.51 | 14.90 | ||||||||
Class E** | 1,000 | 1,375.00 | 1.45 | 8.55 | ||||||||
Class I** | 1,000 | 1,377.70 | 1.34 | 7.85 | ||||||||
Class Y | 1,000 | 1,372.30 | 1.56 | 9.25 | ||||||||
Advisor Class*** | 1,000 | 1,374.20 | 1.24 | 7.36 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.21 | 1.77 | % | $ | 8.97 | ||||
Class B | 1,000 | 1,011.18 | 2.77 | 13.98 | ||||||||
Class C | 1,000 | 1,012.47 | 2.51 | 12.68 | ||||||||
Class E** | 1,000 | 1,017.81 | 1.45 | 7.37 | ||||||||
Class I** | 1,000 | 1,018.37 | 1.34 | 6.76 | ||||||||
Class Y | 1,000 | 1,017.23 | 1.56 | 7.87 | ||||||||
Advisor Class*** | 1,000 | 1,018.84 | 1.24 | 6.26 |
Ivy Real Estate Securities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 927.70 | 1.63 | % | $ | 7.90 | ||||
Class B | 1,000 | 922.80 | 2.63 | 12.69 | ||||||||
Class C | 1,000 | 923.50 | 2.44 | 11.73 | ||||||||
Class E** | 1,000 | 916.60 | 2.56 | 12.17 | ||||||||
Class I** | 1,000 | 924.50 | 1.16 | 5.48 | ||||||||
Class R | 1,000 | 927.20 | 1.68 | 8.09 | ||||||||
Class Y | 1,000 | 928.80 | 1.38 | 6.65 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.88 | 1.63 | % | $ | 8.27 | ||||
Class B | 1,000 | 1,011.86 | 2.63 | 13.28 | ||||||||
Class C | 1,000 | 1,012.84 | 2.44 | 12.28 | ||||||||
Class E** | 1,000 | 1,012.25 | 2.26 | 12.88 | ||||||||
Class I** | 1,000 | 1,019.26 | 1.16 | 5.86 | ||||||||
Class R | 1,000 | 1,016.66 | 1.68 | 8.47 | ||||||||
Class Y | 1,000 | 1,018.16 | 1.38 | 6.96 |
Ivy Small Cap Value Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 984.60 | 1.73 | % | $ | 8.63 | ||||
Class B | 1,000 | 979.30 | 2.82 | 14.05 | ||||||||
Class C | 1,000 | 980.90 | 2.52 | 12.58 | ||||||||
Class E** | 1,000 | 986.40 | 1.27 | 6.26 | ||||||||
Class I** | 1,000 | 991.50 | 1.18 | 5.87 | ||||||||
Class Y | 1,000 | 986.00 | 1.38 | 6.85 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.38 | 1.73 | % | $ | 8.77 | ||||
Class B | 1,000 | 1,010.91 | 2.82 | 14.28 | ||||||||
Class C | 1,000 | 1,012.42 | 2.52 | 12.78 | ||||||||
Class E** | 1,000 | 1,018.72 | 1.27 | 6.46 | ||||||||
Class I** | 1,000 | 1,019.14 | 1.18 | 5.96 | ||||||||
Class Y | 1,000 | 1,018.14 | 1.38 | 6.96 |
Ivy Value Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,046.20 | 1.48 | % | $ | 7.57 | ||||
Class B | 1,000 | 1,040.90 | 2.44 | 12.45 | ||||||||
Class C | 1,000 | 1,041.80 | 2.34 | 11.94 | ||||||||
Class E** | 1,000 | 1,044.90 | 1.18 | 5.93 | ||||||||
Class I** | 1,000 | 1,045.30 | 1.08 | 5.42 | ||||||||
Class Y | 1,000 | 1,047.60 | 1.30 | 6.65 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.63 | 1.48 | % | $ | 7.47 | ||||
Class B | 1,000 | 1,012.86 | 2.44 | 12.28 | ||||||||
Class C | 1,000 | 1,013.33 | 2.34 | 11.78 | ||||||||
Class E** | 1,000 | 1,019.17 | 1.18 | 5.96 | ||||||||
Class I** | 1,000 | 1,019.67 | 1.08 | 5.45 | ||||||||
Class Y | 1,000 | 1,018.54 | 1.30 | 6.56 |
*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the tables), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2007, and divided by 365.
**Actual inception date of Class E and Class I shares for each Fund is 4-2-07 (the date on which shares were first acquired by shareholders). The calculations are based on 181 days in the period ended September 30, 2007
***Class closed to investment.
(1)This section uses the Fund's actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The "Ending Account Value" shown is computed using the Fund's actual return and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the fourth column.
(2)This section uses a hypothetical 5% annual return and actual Fund expenses. It helps to compare the Fund's ongoing costs with other mutual funds. A shareholder can compare the Fund's ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, redemption fees or exchange fees.
SHAREHOLDER SUMMARY OF IVY BALANCED FUND
Portfolio Highlights
On September 30, 2007, Ivy Balanced Fund had net assets totaling $100,632,195 invested in a diversified portfolio of:
67.69% | Domestic Common Stocks | |
14.49% | United States Government and Government Agency Obligations | |
8.21% | Cash and Cash Equivalents | |
4.80% | Foreign Common Stocks | |
3.85% | Domestic Corporate Debt Securities | |
0.57% | Other Government Securities | |
0.39% | Foreign Corporate Debt Securities |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Stocks | $ | 72.49 | |||
Technology Stocks | $ | 15.27 | |||
Health Care Stocks | $ | 10.51 | |||
Financial Services Stocks | $ | 9.32 | |||
Energy Stocks | $ | 8.02 | |||
Consumer Nondurables Stocks | $ | 7.69 | |||
Miscellaneous Stocks | $ | 5.26 | |||
Consumer Services Stocks | $ | 3.94 | |||
Capital Goods Stocks | $ | 3.49 | |||
Multi-Industry Stocks | $ | 3.30 | |||
Utilities Stocks | $ | 3.08 | |||
Raw Materials Stocks | $ | 2.61 | |||
Bonds | $ | 19.30 | |||
United States Government and Government Agency Obligations | $ | 14.49 | |||
Corporate Debt Securities | $ | 4.24 | |||
Other Government Securities | $ | 0.57 | |||
Cash and Cash Equivalents | $ | 8.21 |
The Investments of Ivy Balanced Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Air Transportation - 0.81% | |||||||
Southwest Airlines Co. | 55,300 | $ | 818,440 | ||||
Aircraft - 1.73% | |||||||
Boeing Company (The) | 16,600 | 1,742,834 | |||||
Banks - 2.32% | |||||||
Bank of America Corporation | 16,600 | 834,482 | |||||
Northern Trust Corporation | 22,600 | 1,498,267 | |||||
2,332,749 | |||||||
Beverages - 4.48% | |||||||
Anheuser-Busch Companies, Inc. | 15,000 | 749,850 | |||||
Brown-Forman Corporation, Class B | 12,400 | 928,884 | |||||
Coca-Cola Company (The) | 18,700 | 1,074,689 | |||||
PepsiCo, Inc. | 24,000 | 1,758,240 | |||||
4,511,663 | |||||||
Business Equipment and Services - 0.98% | |||||||
Pitney Bowes Inc. | 21,800 | 990,156 | |||||
Chemicals - Petroleum and Inorganic - 1.16% | |||||||
E.I. du Pont de Nemours and Company | 23,600 | 1,169,616 | |||||
Chemicals - Specialty - 1.45% | |||||||
Air Products and Chemicals, Inc. | 14,900 | 1,456,624 | |||||
Communications Equipment - 5.62% | |||||||
Cisco Systems, Inc. | 69,800 | 2,312,125 | |||||
Nokia Corporation, Series A, ADR | 56,200 | 2,131,666 | |||||
QUALCOMM Incorporated | 28,600 | 1,208,350 | |||||
5,652,141 | |||||||
Computers - Micro - 1.65% | |||||||
Apple Inc.* | 10,800 | 1,657,638 | |||||
Computers - Peripherals - 1.16% | |||||||
Microsoft Corporation | 39,758 | 1,171,469 | |||||
Defense - 2.53% | |||||||
General Dynamics Corporation | 30,200 | 2,550,994 | |||||
Electrical Equipment - 1.19% | |||||||
Emerson Electric Co. | 22,400 | 1,192,128 | |||||
Electronic Components - 2.58% | |||||||
Microchip Technology Incorporated | 34,700 | 1,259,610 | |||||
Texas Instruments Incorporated | 36,500 | 1,335,535 | |||||
2,595,145 | |||||||
Finance Companies - 1.05% | |||||||
American Express Company | 17,800 | 1,056,786 | |||||
Food and Related - 1.35% | |||||||
Wm. Wrigley Jr. Company | 21,100 | 1,355,253 | |||||
Health Care - Drugs - 5.25% | |||||||
Abbott Laboratories | 27,700 | 1,485,274 | |||||
Allergan, Inc. | 22,200 | 1,431,234 | |||||
Genentech, Inc.* | 13,700 | 1,068,874 | |||||
Gilead Sciences, Inc.* | 31,800 | 1,299,189 | |||||
5,284,571 | |||||||
Health Care - General - 4.04% | |||||||
DENTSPLY International Inc. | 35,000 | 1,457,925 | |||||
Johnson & Johnson | 26,200 | 1,721,340 | |||||
Zimmer Holdings, Inc.* | 10,900 | 882,791 | |||||
4,062,056 | |||||||
Hospital Supply and Management - 1.22% | |||||||
Medtronic, Inc. | 21,800 | 1,229,738 | |||||
Hotels and Gaming - 1.56% | |||||||
Las Vegas Sands, Inc.* | 11,800 | 1,574,356 | |||||
Household - General Products - 1.86% | |||||||
Colgate-Palmolive Company | 26,300 | 1,875,716 | |||||
Insurance - Life - 1.30% | |||||||
Aflac Incorporated | 23,000 | 1,311,920 | |||||
Insurance - Property and Casualty - 1.18% | |||||||
Berkshire Hathaway Inc., Class B* | 300 | 1,185,600 | |||||
Motion Pictures - 1.39% | |||||||
News Corporation Limited, Class A | 63,400 | 1,394,166 | |||||
Multiple Industry - 3.30% | |||||||
Altria Group, Inc. | 9,800 | 681,394 | |||||
General Electric Company | 63,680 | 2,636,352 | |||||
3,317,746 | |||||||
Non-Residential Construction - 2.30% | |||||||
Fluor Corporation | 16,100 | 2,318,078 | |||||
Petroleum - International - 5.55% | |||||||
BP p.l.c., ADR | 19,000 | 1,317,650 | |||||
Chevron Corporation | 13,500 | 1,263,330 | |||||
Exxon Mobil Corporation | 32,400 | 2,998,944 | |||||
5,579,924 | |||||||
Petroleum - Services - 2.47% | |||||||
Schlumberger Limited | 23,700 | 2,488,500 | |||||
Publishing - 0.99% | |||||||
Meredith Corporation | 17,400 | 997,020 | |||||
Retail - General Merchandise - 0.95% | |||||||
Wal-Mart Stores, Inc. | 21,900 | 955,935 | |||||
Retail - Specialty Stores - 0.68% | |||||||
Best Buy Co., Inc. | 14,800 | 681,096 | |||||
Security and Commodity Brokers - 3.47% | |||||||
CME Group Inc. | 1,500 | 881,025 | |||||
J.P. Morgan Chase & Co. | 26,800 | 1,227,976 | |||||
UBS AG | 26,000 | 1,384,500 | |||||
3,493,501 | |||||||
Timesharing and Software - 1.08% | |||||||
Paychex, Inc. | 26,400 | 1,082,796 | |||||
Trucking and Shipping - 0.76% | |||||||
Expeditors International of Washington, Inc. | 16,100 | 761,047 | |||||
Utilities - Electric - 1.48% | |||||||
Exelon Corporation | 19,700 | 1,484,592 | |||||
Utilities - Telephone - 1.60% | |||||||
AT&T Inc. | 38,100 | 1,612,011 | |||||
TOTAL COMMON STOCKS - 72.49% | $ | 72,944,005 | |||||
(Cost: $48,897,910) | |||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | ||||||
---|---|---|---|---|---|---|---|
Banks - 0.26% | |||||||
Wells Fargo Bank, N.A., | |||||||
7.55%, 6-21-10 | $ | 250 | 265,169 | ||||
Beverages - 0.35% | |||||||
Diageo Capital plc, | |||||||
3.5%, 11-19-07 | 350 | 349,082 | |||||
Finance Companies - 1.96% | |||||||
American International Group, | |||||||
3.85%, 11-26-07 (A) | 500 | 498,721 | |||||
Banco Hipotecario Nacional: | |||||||
7.916%, 7-25-09 (A) | 7 | 65 | |||||
8.0%, 3-31-11 (A) | 165 | 41,364 | |||||
First Union-Lehman Brothers-Bank of America Commercial Mortgage Trust, | |||||||
6.56%, 11-18-35 | 337 | 337,840 | |||||
Prudential Insurance Company of America, | |||||||
6.6%, 5-15-08 (A) | 750 | 754,293 | |||||
Unilever Capital Corporation, | |||||||
5.9%, 11-15-32 | 350 | 342,045 | |||||
1,974,328 | |||||||
Food and Related - 1.19% | |||||||
Archer-Daniels-Midland Company, | |||||||
7.0%, 2-1-31 | 700 | 777,771 | |||||
Cargill, Inc., | |||||||
6.375%, 6-1-12 (B) | 400 | 415,846 | |||||
1,193,617 | |||||||
Insurance - Life - 0.48% | |||||||
StanCorp Financial Group, Inc., | |||||||
6.875%, 10-1-12 | 450 | 482,726 | |||||
TOTAL CORPORATE DEBT SECURITIES - 4.24% | $ | 4,264,922 | |||||
(Cost: $4,221,278) | |||||||
OTHER GOVERNMENT SECURITIES - 0.57% | |||||||
Canada | |||||||
Hydro-Quebec, | |||||||
8.0%, 2-1-13 | 500 | $ | 573,523 | ||||
(Cost: $564,391) | |||||||
| |||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | |||||||
---|---|---|---|---|---|---|---|
Mortgage-Backed Obligations - 4.43% | |||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
6.23%, 1-1-08 | 414 | 412,622 | |||||
6.0%, 9-1-17 | 361 | 366,694 | |||||
5.0%, 1-1-18 | 403 | 396,381 | |||||
5.5%, 4-1-18 | 314 | 313,875 | |||||
6.5%, 10-1-28 | 139 | 142,568 | |||||
6.5%, 2-1-29 | 28 | 28,722 | |||||
7.0%, 5-1-31 | 28 | 29,160 | |||||
7.5%, 5-1-31 | 48 | 50,396 | |||||
7.0%, 7-1-31 | 41 | 42,896 | |||||
7.0%, 9-1-31 | 59 | 61,735 | |||||
7.0%, 9-1-31 | 44 | 45,507 | |||||
7.0%, 11-1-31 | 143 | 149,180 | |||||
6.5%, 2-1-32 | 156 | 161,115 | |||||
7.0%, 2-1-32 | 151 | 157,612 | |||||
7.0%, 2-1-32 | 88 | 92,655 | |||||
6.5%, 3-1-32 | 48 | 49,527 | |||||
7.0%, 3-1-32 | 93 | 97,255 | |||||
7.0%, 6-1-32 | 30 | 31,906 | |||||
7.0%, 7-1-32 | 170 | 177,469 | |||||
6.5%, 8-1-32 | 74 | 75,888 | |||||
6.0%, 9-1-32 | 599 | 602,648 | |||||
6.5%, 9-1-32 | 143 | 147,240 | |||||
5.5%, 5-1-33 | 287 | 282,090 | |||||
5.5%, 5-1-33 | 168 | 165,367 | |||||
5.5%, 5-1-33 | 115 | 112,846 | |||||
5.5%, 6-1-33 | 270 | 264,776 | |||||
4,458,130 | |||||||
Treasury Obligations - 10.06% | |||||||
United States Treasury Bond, | |||||||
7.5%, 11-15-16 | 500 | 607,695 | |||||
United States Treasury Notes: | |||||||
3.0%, 2-15-08 | 900 | 896,485 | |||||
4.0%, 3-15-10 | 800 | 800,250 | |||||
4.25%, 10-15-10 | 2,000 | 2,011,406 | |||||
3.875%, 2-15-13 | 1,250 | 1,228,711 | |||||
3.625%, 5-15-13 | 750 | 726,562 | |||||
4.25%, 8-15-13 | 900 | 898,594 | |||||
4.25%, 8-15-15 | 3,000 | 2,955,936 | |||||
10,125,639 | |||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 14.49% | $ | 14,583,769 | |||||
(Cost: $14,642,928) | |||||||
| |||||||
SHORT-TERM SECURITIES | |||||||
---|---|---|---|---|---|---|---|
Household - General Products - 2.98% | |||||||
Fortune Brands Inc., | |||||||
5.55%, 10-1-07 | 3,000 | 3,000,000 | |||||
Finance Companies - 2.55% | |||||||
Toyota Motor Credit Corporation, | |||||||
4.78%, 11-16-07 | 2,584 | 2,568,218 | |||||
Forest and Paper Products - 1.02% | |||||||
Sonoco Products Co., | |||||||
5.6%, 10-1-07 | 1,028 | 1,028,000 | |||||
Retail - General Merchadise - 1.49% | |||||||
Target Corporation, | |||||||
5.0%, 10-19-07 | 1,500 | 1,496,250 | |||||
TOTAL SHORT-TERM SECURITIES - 8.04% | $ | 8,092,468 | |||||
(Cost: $8,092,468) | |||||||
TOTAL INVESTMENT SECURITIES - 99.83% | $ | 100,458,687 | |||||
(Cost: $76,418,975) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.17% | 173,508 | ||||||
NET ASSETS - 100.00% | $ | 100,632,195 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $1,294,443, or 1.29% of net assets. |
(B)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of this security amounted to 0.41% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY BALANCED FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $76,419) (Notes 1 and 3) | $ | 100,459 | ||
Cash | 4 | |||
Receivables: | ||||
Dividends and interest | 265 | |||
Fund shares sold | 89 | |||
Prepaid and other assets | 30 | |||
Total assets | 100,847 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 66 | |||
Accrued management fee (Note 2) | 57 | |||
Accrued service fee (Note 2) | 39 | |||
Accrued shareholder servicing (Note 2) | 21 | |||
Accrued accounting services fee (Note 2) | 4 | |||
Accrued distribution fee (Note 2) | 4 | |||
Other | 24 | |||
Total liabilities | 215 | |||
Total net assets | $ | 100,632 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 74,391 | ||
Accumulated undistributed income : | ||||
Accumulated undistributed net investment income | 115 | |||
Accumulated undistributed net realized gain on investment transactions | 2,086 | |||
Net unrealized appreciation in value of investments | 24,040 | |||
Net assets applicable to outstanding units of capital | $ | 100,632 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $17.98 | |||
Class B | $17.93 | |||
Class C | $17.94 | |||
Class E | $17.99 | |||
Class I | $17.98 | |||
Class Y | $17.98 | |||
Capital shares outstanding: | ||||
Class A | 3,633 | |||
Class B | 160 | |||
Class C | 192 | |||
Class E | 6 | |||
Class I | 6 | |||
Class Y | 1,602 |
See Notes to Financial Statements.
Statement of Operations
IVY BALANCED FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 650 | ||
Dividends (net of foreign withholding taxes of $12) | 625 | |||
Total income | 1,275 | |||
Expenses (Note 2): | ||||
Investment management fee | 340 | |||
Service fee: | ||||
Class A | 75 | |||
Class B | 3 | |||
Class C | 4 | |||
Class Y | 36 | |||
Shareholder servicing: | ||||
Class A | 76 | |||
Class B | 6 | |||
Class C | 3 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | 22 | |||
Accounting services fee | 25 | |||
Distribution fee: | ||||
Class A | 3 | |||
Class B | 10 | |||
Class C | 12 | |||
Class E | –– | * | ||
Audit fees | 14 | |||
Custodian fees | 3 | |||
Legal fees | 1 | |||
Other | 54 | |||
Total expenses | 687 | |||
Net investment income | 588 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 1,435 | |||
Unrealized appreciation in value of investments during the period | 8,633 | |||
Net gain on investments | 10,068 | |||
Net increase in net assets resulting from operations | $ | 10,656 | ||
*Not shown due to rounding
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY BALANCED FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 588 | $ | 987 | ||||
Realized net gain on investments | 1,435 | 3,925 | ||||||
Unrealized appreciation | 8,633 | 1,967 | ||||||
Net increase in net assets resulting from operations | 10,656 | 6,879 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (326 | ) | (661 | ) | ||||
Class B | (1 | ) | (3 | ) | ||||
Class C | (5 | ) | (11 | ) | ||||
Class E | (1 | ) | NA | |||||
Class I | (1 | ) | NA | |||||
Class Y | (165 | ) | (411 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
(499 | ) | (1,086 | ) | |||||
Capital share transactions (Note 5) | (2,865 | ) | (11,344 | ) | ||||
Total increase (decrease) | 7,292 | (5,551 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 93,340 | 98,891 | ||||||
End of period | $ | 100,632 | $ | 93,340 | ||||
Undistributed net investment income | $ | 115 | $ | 26 | ||||
(1)See "Financial Highlights" on pages 25 - 30.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended September 30, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.18 | $ | 10.54 | $ | 11.45 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.11 | 0.16 | 0.15 | 0.14 | 0.05 | 0.16 | 0.23 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.78 | 0.98 | 1.21 | 0.65 | 1.16 | 1.64 | (0.89 | ) | ||||||||||||||||
Total from investment operations | 1.89 | 1.14 | 1.36 | 0.79 | 1.21 | 1.80 | (0.66 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.18 | ) | (0.14 | ) | (0.14 | ) | (0.04 | ) | (0.16 | ) | (0.25 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.09 | ) | (0.18 | ) | (0.14 | ) | (0.14 | ) | (0.04 | ) | (0.16 | ) | (0.25 | ) | ||||||||||
Net asset value, end of period | $ | 17.98 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.18 | $ | 10.54 | ||||||||||
Total return (1) | 11.71 | % | 7.53 | % | 9.71 | % | 5.90 | % | 10.06 | % | 17.17 | %(2) | - -5.91 | % | ||||||||||
Net assets, end of period (in millions) | $65 | $59 | $57 | $54 | $52 | $38 | $37 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.40 | %(3) | 1.39 | % | 1.42 | % | 1.53 | % | 1.52 | %(3)(4) | 1.29 | % | 1.22 | % | ||||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 1.22 | %(3) | 1.03 | % | 1.00 | % | 1.02 | % | 0.86 | %(3)(4) | 1.41 | % | 1.84 | % | ||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.40 | %(3)(5) | 1.39 | %(5) | 1.42 | %(5) | 1.53 | %(5) | 1.57 | %(3)(4) | 1.62 | % | 1.52 | % | ||||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 1.22 | %(3)(5) | 1.03 | %(5) | 1.00 | %(5) | 1.02 | %(5) | 0.81 | %(3)(4) | 1.08 | % | 1.54 | % | ||||||||||
Portfolio turnover rate | 4 | % | 23 | % | 49 | % | 37 | % | 29 | % | 110 | % | 129 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.14 | $ | 15.18 | $ | 13.98 | $ | 13.33 | $ | 12.96 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income | 0.03 | 0.01 | 0.00 | 0.01 | 0.01 | |||||||||||||||
Net realized and unrealized gain on investments | 1.77 | 0.98 | 1.21 | 0.64 | 0.39 | |||||||||||||||
Total from investment operations | 1.80 | 0.99 | 1.21 | 0.65 | 0.40 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.01 | ) | (0.03 | ) | (0.01 | ) | (0.00 | )* | (0.03 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.01 | ) | (0.03 | ) | (0.01 | ) | (0.00 | )* | (0.03 | ) | ||||||||||
Net asset value, end of period | $ | 17.93 | $ | 16.14 | $ | 15.18 | $ | 13.98 | $ | 13.33 | ||||||||||
Total return | 11.16 | % | 6.49 | % | 8.62 | % | 4.90 | % | 3.05 | % | ||||||||||
Net assets, end of period (in thousands) | $2,859 | $2,506 | $1,995 | $1,503 | $338 | |||||||||||||||
Ratio of expenses to average net assets | 2.32 | %(2) | 2.39 | % | 2.41 | % | 2.52 | % | 2.76 | %(2) | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.31 | %(2) | 0.03 | % | 0.01 | % | 0.06 | % | - -0.42 | %(2) | ||||||||||
Portfolio turnover rate | 4 | % | 23 | % | 49 | % | 37 | % | 29 | %(3) |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.15 | $ | 15.20 | $ | 13.98 | $ | 13.34 | $ | 12.96 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income | 0.04 | 0.04 | 0.03 | 0.03 | 0.02 | |||||||||||||||
Net realized and unrealized gain on investments | 1.78 | 0.97 | 1.20 | 0.63 | 0.39 | |||||||||||||||
Total from investment operations | 1.82 | 1.01 | 1.23 | 0.66 | 0.41 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.03 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.03 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | ||||||||||
Net asset value, end of period | $ | 17.94 | $ | 16.15 | $ | 15.20 | $ | 13.98 | $ | 13.34 | ||||||||||
Total return | 11.27 | % | 6.67 | % | 8.80 | % | 4.98 | % | 3.13 | % | ||||||||||
Net assets, end of period (in thousands) | $3,447 | $3,018 | $1,996 | $898 | $301 | |||||||||||||||
Ratio of expenses to average net assets | 2.12 | %(2) | 2.16 | % | 2.25 | % | 2.38 | % | 2.43 | %(2) | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.51 | %(2) | 0.27 | % | 0.21 | % | 0.19 | % | - -0.12 | %(2) | ||||||||||
Portfolio turnover rate | 4 | % | 23 | % | 49 | % | 37 | % | 29 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.18 | |||
Income from investment operations: | |||||
Net investment income | 0.12 | (2) | |||
Net realized and unrealized gain on investments | 1.79 | (2) | |||
Total from investment operations | 1.91 | ||||
Less distributions from: | |||||
Net investment income | (0.10 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.10 | ) | |||
Net asset value, end of period | $ | 17.99 | |||
Total return (3) | 11.63 | % | |||
Net assets, end of period (in thousands) | $112 | ||||
Ratio of expenses to average net assets | 1.19 | %(4) | |||
Ratio of net investment income to average net assets | 1.45 | %(4) | |||
Portfolio turnover rate | 4 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.18 | |||
Income from investment operations: | |||||
Net investment income | 0.13 | (2) | |||
Net realized and unrealized gain on investments | 1.78 | (2) | |||
Total from investment operations | 1.91 | ||||
Less distributions from: | |||||
Net investment income | (0.11 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.11 | ) | |||
Net asset value, end of period | $ | 17.98 | |||
Total return | 11.67 | % | |||
Net assets, end of period (in thousands) | $112 | ||||
Ratio of expenses to average net assets | 1.06 | %(3) | |||
Ratio of net investment income to average net assets | 1.58 | %(3) | |||
Portfolio turnover rate | 4 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.96 | ||||||||||
Income from investment operations: | ||||||||||||||||||||
Net investment income | 0.11 | 0.18 | 0.17 | 0.17 | 0.04 | |||||||||||||||
Net realized and unrealized gain on investments | 1.79 | 0.98 | 1.21 | 0.65 | 0.40 | |||||||||||||||
Total from investment operations | 1.90 | 1.16 | 1.38 | 0.82 | 0.44 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.10 | ) | (0.20 | ) | (0.16 | ) | (0.17 | ) | (0.05 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.10 | ) | (0.20 | ) | (0.16 | ) | (0.17 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $ | 17.98 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | ||||||||||
Total return | 11.77 | % | 7.67 | % | 9.89 | % | 6.16 | % | 3.43 | % | ||||||||||
Net assets, end of period (in millions) | $29 | $28 | $38 | $44 | $53 | |||||||||||||||
Ratio of expenses to average net assets | 1.29 | %(2) | 1.26 | % | 1.26 | % | 1.30 | % | 1.36 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 1.34 | %(2) | 1.16 | % | 1.15 | % | 1.25 | % | 0.97 | %(2) | ||||||||||
Portfolio turnover rate | 4 | % | 23 | % | 49 | % | 37 | % | 29 | % (3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY BOND FUND
Portfolio Highlights
On September 30, 2007, Ivy Bond Fund had net assets totaling $86,979,230
invested in a diversified portfolio of:
94.06% | Bonds | |
5.41% | Cash and Cash Equivalents | |
0.53% | Preferred Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Corporate Bonds | $ | 64.35 | |||
United States Government Agency Mortgage-Backed Obligations | $ | 16.41 | |||
United States Government Treasury Obligations | $ | 12.06 | |||
Cash and Cash Equivalents | $ | 5.41 | |||
United States Government Agency Obligations | $ | 1.24 | |||
Preferred Stocks | $ | 0.53 |
On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:
AAA | 47.53 | % | |||
AA | 4.99 | % | |||
A | 8.04 | % | |||
BBB | 23.07 | % | |||
BB | 8.95 | % | |||
Below B | 0.43 | % | |||
Non-rated | 1.05 | % | |||
Cash and Cash Equivalents and Equities | 5.94 | % |
Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.
Certain U.S. government securities in which the Fund may invest, such as Treasury securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. However, other U.S. government securities in which the Fund may invest, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB) are not backed by the full faith and credit of the U.S. government, are not insured or guaranteed by the U.S. government and, instead, may be supported only by the right of the issuer to borrow from the U.S. Treasury or by the credit of the issuer.
The Investments of Ivy Bond Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
PREFERRED STOCKS | Shares | Value | ||||||
Real Estate Investment Trust | ||||||||
PS Business Parks, Inc., 7.0% Cumulative | 10,500 | $ | 236,250 | |||||
Public Storage, Inc., 6.25% Cumulative | 10,500 | 226,485 | ||||||
TOTAL PREFERRED STOCKS - 0.53% | $ | 462,735 | ||||||
(Cost: $520,050) | ||||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | |||||||
Aluminum - 0.22% | ||||||||
Steelcase Inc., | ||||||||
6.5%, 8-15-11 | $ | 185 | 191,780 | |||||
Asset-Backed Securities - 3.45% | ||||||||
ABFS Mortgage Loan Trust 2002-4, | ||||||||
7.42%, 12-15-33 (A) | 120 | 114,876 | ||||||
Associates Manufactured Housing Contract Pass-Through Certificates, | ||||||||
7.725%, 6-15-28 | 129 | 130,412 | ||||||
C-Bass 2006-CB2 Trust, | ||||||||
5.86%, 12-25-36 | 530 | 524,562 | ||||||
C-Bass 2006-MH1 Trust: | ||||||||
6.24%, 10-25-36 (A) (B) | 105 | 106,347 | ||||||
6.25%, 10-25-36 (A) (B) | 170 | 172,065 | ||||||
Centex Home Equity Loan Trust 2005-C, | ||||||||
5.048%, 6-25-35 (A) | 370 | 357,465 | ||||||
Citibank Credit Card Issuance Trust, Class 2005-C1, | ||||||||
5.5%, 3-24-17 | 200 | 189,170 | ||||||
CountryPlace Manufactured Housing Contract Trust 2005-1, | ||||||||
5.2%, 12-15-35 (A) (C) | 300 | 277,781 | ||||||
Green Tree Financial Corporation: | ||||||||
6.4%, 10-15-18 | 65 | 66,373 | ||||||
7.35%, 5-15-27 | 36 | 37,800 | ||||||
Home Equity Loan Trust 2003-HS2, | ||||||||
5.09%, 7-25-33 (A) | 36 | 33,668 | ||||||
National Collegiate Trust 1997-S2 (The), | ||||||||
7.24%, 9-20-14 | 163 | 160,269 |
Origen Manufactured Housing Contract: | ||||||||
Trust 2004-A, | ||||||||
5.7%, 1-15-35 | 100 | 97,146 | ||||||
Trust 2004-B, | ||||||||
5.73%, 11-15-35 | 50 | 48,029 | ||||||
Trust 2005-A: | ||||||||
4.49%, 5-15-18 | 170 | 168,970 | ||||||
5.86%, 6-15-36 (A) | 120 | 117,694 | ||||||
Trust 2005-B, | ||||||||
5.605%, 5-15-22 | 80 | 80,408 | ||||||
Vanderbilt Mortgage and Finance, Inc., | ||||||||
6.86875%, 3-7-28 (A) | 147 | 146,575 | ||||||
WFS Financial 2005-2 Owner Trust, | ||||||||
4.39%, 11-19-12 | 175 | 174,019 | ||||||
3,003,629 | ||||||||
Banks - 0.23% | ||||||||
Wells Fargo Mortgage Backed Securities 2003-9 Trust, | ||||||||
5.25%, 8-25-33 (B) | 272 | 200,911 | ||||||
Broadcasting - 0.55% | ||||||||
Cox Communications, Inc., | ||||||||
7.125%, 10-1-12 | 450 | 476,919 | ||||||
Business Equipment and Services - 0.75% | ||||||||
HSBC Finance Corporation, | ||||||||
5.7%, 6-1-11 | 400 | 403,222 | ||||||
International Lease Finance Corporation, | ||||||||
5.625%, 9-20-13 | 250 | 247,749 | ||||||
650,971 | ||||||||
Chemicals - Specialty - 0.58% | ||||||||
Valspar Corporation (The), | ||||||||
6.05%, 5-1-17 | 500 | 500,685 | ||||||
Collateralized Mortgage Obligations - 7.28% | ||||||||
Banc of America: | ||||||||
Alternative Loan Trust 2005-10: | ||||||||
5.66892%, 11-25-35 (A) | 280 | 255,903 | ||||||
5.66892%, 11-25-35 (A) | 135 | 116,834 | ||||||
Alternative Loan Trust 2005-12: | ||||||||
5.80813%, 1-25-36 (A) | 300 | 279,331 | ||||||
5.80813%, 1-25-36 (A) | 218 | 173,757 | ||||||
Alternative Loan Trust 2006-4, | ||||||||
6.2253%, 5-25-46 (A) | 323 | 305,009 | ||||||
Alternative Loan Trust 2006-8, | ||||||||
6.25114%, 11-25-46 (A) | 144 | 111,280 | ||||||
Mortgage 2007-1 Trust: | ||||||||
6.0%, 3-25-37 | 245 | 238,569 | ||||||
6.0%, 3-25-37 | 169 | 150,423 | ||||||
Mortgage Trust 2004-7, | ||||||||
5.75%, 8-25-34 | 90 | 88,882 | ||||||
Banco Hipotecario Nacional, | ||||||||
7.916%, 7-25-09 (C) | 7 | 74 | ||||||
BlackRock Capital Finance, | ||||||||
7.75%, 9-25-26 (B) | 106 | 106,168 | ||||||
Chase Mortgage Finance Trust, Series 2003-S11, | ||||||||
5.5%, 10-25-33 | 116 | 112,246 | ||||||
CitiMortgage Alternative Loan Trust, Series 2007-A7: | ||||||||
6.23737%, 7-25-37 | 155 | 98,745 | ||||||
6.25%, 7-25-37 | 462 | 445,704 | ||||||
Credit Suisse First Boston Mortgage Securities Corp., | ||||||||
6.0%, 11-25-18 | 43 | 43,229 | ||||||
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC: | ||||||||
5.25%, 4-25-32 | 191 | 173,532 | ||||||
5.39485%, 4-25-32 (A) | 282 | 243,589 | ||||||
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC: | ||||||||
5.25%, 11-25-32 (C) | 292 | 278,612 | ||||||
5.25%, 11-25-32 (C) | 251 | 240,658 | ||||||
J.P. Morgan Mortgage Trust: | ||||||||
2005-S2, | ||||||||
5.67065%, 9-25-35 (A) | 509 | 465,887 | ||||||
2006-S3, | ||||||||
6.5%, 8-25-36 | 395 | 393,186 | ||||||
Lehman XS Trust, Series 2005-8, | ||||||||
5.69%, 12-25-35 | 585 | �� | 579,982 | |||||
MASTR Asset Securitization Trust 2003-10, | ||||||||
5.5%, 11-25-33 | 179 | 174,319 | ||||||
Mellon Residential Funding, | ||||||||
6.75%, 6-26-28 | 46 | 46,053 | ||||||
RALI Series 2003-QS10 Trust, | ||||||||
5.75%, 5-25-33 | 243 | 234,014 | ||||||
Structured Asset Securities Corporation, | ||||||||
5.63%, 5-25-34 (A) | 184 | 183,550 | ||||||
Wells Fargo Alternative Loan 2007-PA3 Trust, | ||||||||
6.20114%, 7-25-37 (A) | 874 | 792,936 | ||||||
6,332,472 | ||||||||
Computers - Peripherals - 0.34% | ||||||||
Intuit Inc., | ||||||||
5.75%, 3-15-17 | 310 | 295,863 | ||||||
Conduit - 14.97% | ||||||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates: | ||||||||
Series 2001-1, | ||||||||
6.125%, 4-15-36 (B) | 380 | 371,870 | ||||||
Series 2002-2, | ||||||||
6.2%, 7-11-43 (B) | 275 | 272,864 | ||||||
Banc of America Commercial Mortgage Trust 2007-1, | ||||||||
5.451%, 1-15-49 | 500 | 493,597 | ||||||
Bear Stearns Mortgage Funding Trust 2006-SL6, | ||||||||
5.73125%, 1-25-37 (A) | 265 | 58,028 | ||||||
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2: | ||||||||
6.0%, 7-15-31 (B) | 500 | 482,833 | ||||||
6.0%, 7-15-31 (B) | 100 | 98,833 | ||||||
Bear Stearns Commercial Mortgage Securities Trust: | ||||||||
2002-TOP6, | ||||||||
6.0%, 10-15-36 (B) | 320 | 319,632 | ||||||
2004-PWR4, | ||||||||
5.468%, 6-11-41 (A) | 1,500 | 1,499,266 | ||||||
CD 2006-CD2 Mortgage Trust, | ||||||||
5.80516%, 1-15-46 (A)(C) | 710 | 677,831 | ||||||
CD 2007-CD4 Commercial Mortgage Trust, | ||||||||
5.883%, 12-11-49 (C) | 480 | 373,837 | ||||||
CHL Mortgage Pass-Through Trust 2004-J4, | ||||||||
5.25%, 5-25-34 | 689 | 577,606 | ||||||
COMM 2006-CNL2: | ||||||||
5.5699%, 2-5-19 (A)(B) | 725 | 679,457 | ||||||
5.5699%, 2-5-19 (A)(B) | 95 | 91,127 | ||||||
Capital One Multi-asset Execution Trust, | ||||||||
5.75%, 7-15-20 | 295 | 297,325 | ||||||
Chase Issuance Trust, | ||||||||
6.0425%, 1-15-14 | 280 | 268,246 | ||||||
Commercial Mortgage Asset Trust, | ||||||||
6.0%, 11-17-32 | 225 | 216,823 | ||||||
DLJ Commercial Mortgage Corp. 1998-CG1, | ||||||||
7.35697%, 6-10-31 (A)(B) | 350 | 372,596 | ||||||
Discover Card Execution Note Trust, | ||||||||
5.65%, 3-16-20 | 385 | 384,311 | ||||||
First Horizon Mortgage Pass-Through Trust 2003-8, | ||||||||
5.12611%, 10-25-33 (A) | 96 | 69,041 | ||||||
GE Capital Commercial Mortgage Corp. 2002-2, | ||||||||
6.039%, 8-11-36 (B) | 565 | 568,850 | ||||||
GE Commercial Mortgage Corporation, Series 2007-C1 Trust, | ||||||||
5.543%, 12-10-49 (A) | 700 | 695,592 | ||||||
GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2001-LI B, | ||||||||
6.733%, 2-14-16 (B) | 225 | 238,913 | ||||||
Hilton Hotel Pool Trust: | ||||||||
6.165%, 10-3-15 (A)(B) | 790 | 780,229 | ||||||
7.653%, 10-3-15 (B) | 430 | 456,676 | ||||||
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1, | ||||||||
5.506%, 11-11-38 (C) | 464 | 461,121 | ||||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: | ||||||||
1.09475%, 11-28-35 (A)(C) (Interest Only) | 5,993 | 134,844 | ||||||
5.88%, 11-28-35 (A)(C) | 155 | 148,805 | ||||||
5.88%, 11-28-35 (A)(C) | 105 | 103,097 | ||||||
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series1998-D6, | ||||||||
6.0%, 3-15-30 (B) | 500 | 511,768 | ||||||
Wachovia Bank Commercial Mortgage Trust (The), | ||||||||
4.942%, 11-15-34 (B) | 285 | 260,586 | ||||||
Wachovia Bank Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates: | ||||||||
Series 2006-C26, | ||||||||
6.011%, 6-15-45 (A) | 450 | 464,129 | ||||||
Series 2007- C31, | ||||||||
5.509%, 4-15-47 | 595 | 588,985 | ||||||
13,018,718 | ||||||||
Construction Materials - 1.24% | ||||||||
Crane Co., | ||||||||
6.55%, 11-15-36 | 540 | 530,311 | ||||||
USG Corporation, | ||||||||
6.3%, 11-15-16 | 600 | 544,532 | ||||||
1,074,843 | ||||||||
Finance Companies - 20.84% | ||||||||
Allied Capital Corporation, | ||||||||
6.625%, 7-15-11 | 685 | 700,125 | ||||||
American Capital Strategies, Ltd., | ||||||||
6.85%, 8-1-12 | 435 | 446,559 | ||||||
Asset Securitization Corporation: | ||||||||
1.6136%, 10-13-26 (Interest Only) (A)(B) | 951 | 39,251 | ||||||
7.66418%, 2-14-43 (A) | 170 | 185,089 | ||||||
CSAB Mortgage-Backed Trust 2006-2, | ||||||||
6.08%, 9-25-36 (A) | 650 | 637,329 | ||||||
CSFB Commercial Mortgage Trust 2003-C4, | ||||||||
5.322%, 8-15-36 (A)(B) | 500 | 480,192 | ||||||
CWHEQ Home Equity Loan Trust: | ||||||||
Series 2006-S6, | ||||||||
5.962%, 3-25-34 | 210 | 199,786 | ||||||
Series 2007-S2, | ||||||||
5.934%, 5-25-37 | 580 | 567,881 | ||||||
Caithness Coso Funding Corp., | ||||||||
5.489%, 6-15-19 (C) | 218 | 218,824 | ||||||
Capmark Financial Group Inc.: | ||||||||
6.3%, 5-10-17 (B) | 200 | 174,060 | ||||||
5.875%, 5-10-12 (B) | 540 | 491,791 | ||||||
Capital Auto Receivables Asset Trust: | ||||||||
2006-1, | ||||||||
7.16%, 1-15-13 (B) | 245 | 250,179 | ||||||
2007-1, | ||||||||
6.57%, 9-16-13 (B) | 525 | 500,652 | ||||||
2007-2, | ||||||||
8.3%, 2-15-14 (B) | 275 | 293,517 | ||||||
2007-3, | ||||||||
8.0%, 3-17-14 (B) | 480 | 481,950 | ||||||
CarMax Auto Owner Trust 2007-3, | ||||||||
7.58%, 3-17-14 | 380 | 382,474 | ||||||
Cendant Mortgage Corporation and Bishop's Gate Residential Mortgage Trust, | ||||||||
6.25%, 6-25-32 | 124 | 115,598 | ||||||
Colonial Bank, N.A., | ||||||||
6.375%, 12-1-15 | 500 | 493,936 | ||||||
ERAC USA Finance Company, | ||||||||
5.9%, 11-15-15 (B) | 265 | 261,036 | ||||||
FirstEnergy Generation Corp., | ||||||||
6.85%, 6-1-34 (B) | 295 | 300,900 | ||||||
Flagstar Home Equity Loan Trust 2007-1, | ||||||||
5.997%, 1-25-35 (A)(C) | 415 | 404,749 | ||||||
Ford Credit Auto Owner Trust: | ||||||||
2006-B, | ||||||||
7.12%, 2-15-13 (B) | 140 | 136,021 | ||||||
2006-C, | ||||||||
6.89%, 5-15-13 | 200 | 199,831 | ||||||
2007-A, | ||||||||
7.05%, 12-15-13 (B) | 175 | 167,947 | ||||||
Fund American Companies, Inc., | ||||||||
5.875%, 5-15-13 | 560 | 551,974 | ||||||
GMAC LLC, | ||||||||
6.625%, 5-15-12 | 320 | 298,594 | ||||||
GMACM Home Equity Loan Trust: | ||||||||
2006-HE3, | ||||||||
6.088%, 10-25-36 (A) | 485 | 455,291 | ||||||
2007-HE1, | ||||||||
5.952%, 8-25-37 (A) | 570 | 559,767 | ||||||
Goldman Sachs Capital I, | ||||||||
6.345%, 2-15-34 | 610 | 568,377 | ||||||
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed Notes, Series 2007-1, | ||||||||
6.057%, 4-11-17 (C) | 473 | 464,067 | ||||||
J.P. Morgan Alternative Loan Trust 2006-A7, | ||||||||
5.75%, 12-25-36 (A) | 645 | 624,389 | ||||||
J.P. Morgan Chase Commerical Mortgage Securities Trust 2007-LDP11, | ||||||||
6.00725%, 6-15-49 (A) | 1,500 | 1,526,297 | ||||||
J.P. Morgan Mortgage Acquisition Trust: | ||||||||
2006-CW2, | ||||||||
6.337%, 8-25-36 (A) | 590 | 587,127 | ||||||
2006-WF1, | ||||||||
6.41%, 7-25-36 (A) | 1,095 | 1,091,783 | ||||||
JPMorgan Chase Capital XVIII, | ||||||||
6.95%, 8-17-36 | 425 | 417,835 | ||||||
Lazard Group LLC, | ||||||||
6.85%, 6-15-17 (C) | 750 | 737,947 | ||||||
Lehman Brothers Holdings Inc., | ||||||||
6.0%, 7-19-12 | 300 | 304,650 | ||||||
Morgan Stanley Capital I, Inc., Commercial Mortgage Pass-Through Certificates, Series 1998-XL2, | ||||||||
6.4352%, 10-3-34 (A) | 500 | 499,731 | ||||||
PNC Funding Corp, | ||||||||
5.625%, 2-1-17 | 370 | 361,621 | ||||||
RASC Series 2003-KS10 Trust, | ||||||||
6.41%, 12-25-33 | 101 | 84,302 | ||||||
Selkirk Cogen Funding Corporation, | ||||||||
8.65%, 12-26-07 | 27 | 27,618 | ||||||
Symetra Financial Corporation, | ||||||||
6.125%, 4-1-16 (B) | 400 | 399,867 | ||||||
TimberStar Trust I, | ||||||||
6.2082%, 10-15-36 (B) | 460 | 432,382 | ||||||
18,123,296 | ||||||||
Hospital Supply and Management - 0.55% | ||||||||
Laboratory Corporation of America Holdings: | ||||||||
5.5%, 2-1-13 | 215 | 207,853 | ||||||
5.625%, 12-15-15 | 285 | 275,802 | ||||||
483,655 | ||||||||
Household - General Products - 0.74% | ||||||||
Estee Lauder Companies Inc. (The), | ||||||||
6.0%, 5-15-37 | 670 | 648,352 | ||||||
Insurance - Life - 0.89% | ||||||||
StanCorp Financial Group, Inc.: | ||||||||
6.875%, 10-1-12 | 450 | 482,726 | ||||||
6.9%, 5-29-67 | 300 | 289,115 | ||||||
771,841 | ||||||||
Insurance - Property and Casualty - 1.27% | ||||||||
Commerce Group, Inc. (The), | ||||||||
5.95%, 12-9-13 | 305 | 302,643 | ||||||
Liberty Mutual Holding Company Inc., | ||||||||
7.8%, 3-15-37 (C) | 360 | 350,394 | ||||||
Willis North America Inc., | ||||||||
6.2%, 3-28-17 | 455 | 451,462 | ||||||
1,104,499 | ||||||||
Multiple Industry - 0.42% | ||||||||
Tyco Electronics Ltd.: | ||||||||
6.55%, 10-1-17 (B) | 190 | 192,345 | ||||||
7.125%, 10-1-37 (B) | 165 | 171,024 | ||||||
363,369 | ||||||||
Petroleum - Domestic - 1.34% | ||||||||
Plains Exploration & Production Company, | ||||||||
7.75%, 6-15-15 | 750 | 735,000 | ||||||
Williams Partners L.P. and Williams Partners Finance Corporation, | ||||||||
7.25%, 2-1-17 | 420 | 428,400 | ||||||
1,163,400 | ||||||||
Petroleum - International - 0.60% | ||||||||
El Paso Corporation, | ||||||||
7.0%, 6-15-17 | 515 | 522,850 | ||||||
Real Estate Investment Trust - 2.87% | ||||||||
Equity One, Inc.: | ||||||||
6.25%, 1-15-17 | 285 | 276,127 | ||||||
6.0%, 9-15-17 (B) | 185 | 175,603 | ||||||
Healthcare Realty Trust Incorporated, | ||||||||
5.125%, 4-1-14 | 550 | 527,670 | ||||||
Highwoods Realty Limited Partnership, | �� | |||||||
5.85%, 3-15-17 | 405 | 383,791 | ||||||
Liberty Property Limited Partnership, | ||||||||
6.625%, 10-1-17 | 295 | 294,450 | ||||||
Nationwide Health Properties, Inc., | ||||||||
6.0%, 5-20-15 | 440 | 443,681 | ||||||
Realty Income Corporation, | ||||||||
6.75%, 8-15-19 | 395 | 395,631 | ||||||
2,496,953 | ||||||||
Security and Commodity Brokers - 2.90% | ||||||||
Bear Stearns Companies Inc. (The), | ||||||||
5.56%, 2-4-08 | 600 | 599,501 | ||||||
Janus Capital Group Inc., | ||||||||
6.25%, 6-15-12 | 565 | 572,787 | ||||||
Jefferies Group, Inc., | ||||||||
6.25%, 1-15-36 | 400 | 358,271 | ||||||
Lehman Brothers Holdings Inc., | ||||||||
6.5%, 7-19-17 | 595 | 602,995 | ||||||
Nuveen Investments, Inc., | ||||||||
5.5%, 9-15-15 | 465 | 392,638 | ||||||
2,526,192 | ||||||||
Utilities - Electric - 1.33% | ||||||||
MidAmerican Energy Holdings Company, | ||||||||
6.125%, 4-1-36 | 475 | 461,184 | ||||||
Oncor Electric Delivery Company, | ||||||||
7.0%, 9-1-22 | 450 | 458,864 | ||||||
Pennsylvania Electric Company, | ||||||||
5.125%, 4-1-14 | 250 | 239,268 | ||||||
1,159,316 | ||||||||
Utilities - Telephone - 0.99% | ||||||||
Qwest Corporation, | ||||||||
6.5%, 6-1-17 (B) | 425 | 416,500 | ||||||
Sprint Capital Corporation, | ||||||||
6.9%, 5-1-19 | 440 | 441,671 | ||||||
858,171 | ||||||||
TOTAL CORPORATE DEBT SECURITIES - 64.35% | $ | 55,968,685 | ||||||
(Cost: $57,586,996) | ||||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | Principal Amount in Thousands | Value | ||||||
---|---|---|---|---|---|---|---|---|
Agency Obligations - 1.24% | ||||||||
Federal National Mortgage Association: | ||||||||
4.25%, 5-15-09 | $ | 500 | $ | 498,492 | ||||
5.125%, 1-2-14 | 575 | 580,583 | ||||||
1,079,075 | ||||||||
Mortgage-Backed Obligations - 16.41% | ||||||||
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates: | ||||||||
3.5%, 2-15-30 | 114 | 108,784 | ||||||
6.5%, 9-1-32 | 209 | 215,185 | ||||||
6.0%, 11-1-33 | 448 | 450,338 | ||||||
5.5%, 5-1-34 | 175 | 171,816 | ||||||
5.5%, 5-1-34 | 119 | 117,402 | ||||||
5.5%, 6-1-34 | 1,452 | 1,424,724 | ||||||
5.0%, 9-1-34 | 40 | 38,365 | ||||||
5.5%, 9-1-34 | 146 | 143,029 | ||||||
5.5%, 10-1-34 | 329 | 323,454 | ||||||
5.5%, 7-1-35 | 416 | 408,193 | ||||||
5.5%, 7-1-35 | 208 | 204,021 | ||||||
5.5%, 10-1-35 | 550 | 539,217 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.23%, 1-1-08 | 138 | 137,541 | ||||||
5.5%, 1-1-17 | 164 | 164,415 | ||||||
6.0%, 9-1-17 | 94 | 95,340 | ||||||
5.5%, 3-1-18 | 100 | 100,462 | ||||||
5.0%, 6-1-18 | 382 | 375,560 | ||||||
5.0%, 7-1-18 | 137 | 134,610 | ||||||
7.5%, 5-1-31 | 110 | 116,256 | ||||||
7.0%, 9-1-31 | 40 | 41,866 | ||||||
7.0%, 11-1-31 | 79 | 82,878 | ||||||
6.5%, 12-1-31 | 49 | 50,394 | ||||||
7.0%, 2-1-32 | 69 | 71,642 | ||||||
7.0%, 3-1-32 | 79 | 82,615 | ||||||
6.5%, 4-1-32 | 22 | 22,757 | ||||||
6.5%, 5-1-32 | 22 | 22,792 | ||||||
6.5%, 7-1-32 | 62 | 63,634 | ||||||
6.5%, 8-1-32 | 54 | 55,308 | ||||||
6.5%, 8-1-32 | 50 | 51,548 | ||||||
6.5%, 9-1-32 | 90 | 92,646 | ||||||
6.5%, 9-1-32 | 36 | 37,465 | ||||||
6.0%, 10-1-32 | 116 | 116,619 | ||||||
6.5%, 10-1-32 | 104 | 107,205 | ||||||
6.0%, 11-1-32 | 124 | 125,005 | ||||||
6.0%, 3-1-33 | 93 | 93,524 | ||||||
5.5%, 4-1-33 | 156 | 153,736 | ||||||
6.0%, 4-1-33 | 179 | 179,934 | ||||||
5.5%, 5-1-33 | 116 | 114,125 | ||||||
6.0%, 10-1-33 | 177 | 178,329 | ||||||
5.5%, 1-1-34 | 110 | 107,670 | ||||||
5.5%, 1-1-34 | 106 | 104,082 | ||||||
6.0%, 1-1-34 | 440 | 442,489 | ||||||
5.5%, 3-1-34 | 155 | 152,096 | ||||||
5.5%, 3-1-34 | 66 | 65,126 | ||||||
5.5%, 4-1-34 | 161 | 158,282 | ||||||
5.5%, 4-1-34 | 49 | 47,680 | ||||||
5.0%, 5-1-34 | 69 | 66,308 | ||||||
5.5%, 5-1-34 | 132 | 129,720 | ||||||
6.0%, 10-1-34 | 975 | 976,219 | ||||||
5.5%, 11-1-34 | 1,276 | 1,252,847 | ||||||
6.0%, 11-1-34 | 795 | 797,643 | ||||||
5.5%, 2-1-35 | 185 | 181,517 | ||||||
5.0%, 7-1-35 | 198 | 188,752 | ||||||
5.0%, 7-1-35 | 99 | 94,696 | ||||||
5.0%, 7-1-35 | 84 | 80,136 | ||||||
5.0%, 7-1-35 | 47 | 45,394 | ||||||
4.5%, 9-1-35 | 404 | 375,259 | ||||||
5.5%, 10-1-35 | 924 | 906,989 | ||||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only), | ||||||||
0.93645%, 6-17-45 (A) | 5,006 | 255,194 | ||||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates, | ||||||||
5.5%, 10-1-35 | 845 | 833,118 | ||||||
14,273,951 | ||||||||
Treasury Inflation Protected Obligation - 1.41% | ||||||||
United States Treasury Notes, | ||||||||
1.875%, 7-15-13 (D) | 1,100 | 1,227,758 | ||||||
Treasury Obligations - 10.65% | ||||||||
United States Treasury Bond, | ||||||||
5.375%, 2-15-31 | 1,950 | 2,088,175 | ||||||
United States Treasury Notes: | ||||||||
2.625%, 5-15-08 | 2,500 | 2,476,952 | ||||||
3.375%, 10-15-09 (E) | 1,400 | 1,383,375 | ||||||
4.625%, 2-29-12 | 2,615 | 2,660,151 | ||||||
4.125%, 8-31-12 | 500 | 497,812 | ||||||
4.75%, 8-15-17 | 155 | 157,059 | ||||||
9,263,524 | ||||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 29.71% | $ | 25,844,308 | ||||||
(Cost: $25,945,524) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Electrical Equipment - 1.72% | ||||||||
W.W. Grainger, Inc., | ||||||||
4.78%, 10-24-07 | 1,500 | 1,495,419 | ||||||
Finance Companies - 1.73% | ||||||||
Toyota Motor Credit Corporation, | ||||||||
4.78%, 11-16-07 | 1,516 | 1,506,741 | ||||||
Household - General - 1.61% | ||||||||
Fortune Brands Inc., | ||||||||
5.55%, 10-1-07 | 1,400 | 1,400,000 | ||||||
Retail - General Merchandise - 1.72% | ||||||||
Target Corporation, | ||||||||
5.0%, 10-19-07 | 1,500 | 1,496,250 | ||||||
TOTAL SHORT-TERM SECURITIES - 6.78% | $ | 5,898,410 | ||||||
(Cost: $5,898,410) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.37% | $ | 88,174,138 | ||||||
(Cost: $89,950,980) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.37%) | (1,194,908 | ) | ||||||
NET ASSETS - 100.00% | $ | 86,979,230 | ||||||
Notes to Schedule of Investments | ||||||||||||
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. | ||||||||||||
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. | ||||||||||||
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors/Trustees. At September 30, 2007, the total value of theses securities amounted to $11,456,942, or 13.17%% if net assets. | ||||||||||||
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors/Trustees. At September 30, 2007, the total value of theses securities amounted to $4,872,641, or 5.6% if net assets. | ||||||||||||
(D)The interest rate for this security is a stated rate, but the interest payments are determined by multiplying the inflation-adjusted principal by one half of the stated rate for each semiannual interest payment date. | ||||||||||||
(E)Security serves as collateral for the following open futures contracts at September 30, 2007. (See Note 7 to financial statements): | ||||||||||||
Description | Type | Number of Contracts | Expiration Date | Market Value | Unrealized Appreciation (Depreciation | ) | ||||||
U.S. 2 Year Treasury Note | Long | 64 | 12-31-07 | $ | 13,251,000 | $ | 69,368 | |||||
U.S. 5 Year Treasury Note | Long | 59 | 12-31-07 | 6,314,844 | 9,814 | |||||||
U.S. 10 Year Treasury Note | Short | (129 | ) | 12-31-07 | (14,097,281 | ) | 54,214 | |||||
U.S. 30 Year Treasury Bond | Short | (9 | ) | 12-31-07 | (1,002,094 | ) | (1,310 | ) | ||||
$ | 4,466,469 | $ | 132,086 | |||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | ||||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY BOND FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $89,951) (Notes 1 and 3) | $ | 88,174 | ||
Receivables: | ||||
Dividends and interest | 706 | |||
Investment securities sold | 409 | |||
Fund shares sold | 204 | |||
Variation margin - Futures | 12 | |||
Prepaid and other assets | 33 | |||
Total assets | 89,538 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 2,209 | |||
Payable to Fund shareholders | 205 | |||
Accrued management fee (Note 2) | 37 | |||
Accrued service fee (Note 2) | 37 | |||
Dividends payable | 28 | |||
Accrued shareholder servicing (Note 2) | 18 | |||
Accrued accounting services fee (Note 2) | 4 | |||
Accrued distribution fee (Note 2) | 4 | |||
Other | 17 | |||
Total liabilities | 2,559 | |||
Total net assets | $ | 86,979 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 89,275 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | –– | |||
Accumulated undistributed net realized loss on investment transactions | (651 | ) | ||
Net unrealized depreciation in value of investments | (1,645 | ) | ||
Net assets applicable to outstanding units of capital | $ | 86,979 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $10.23 | |||
Class B | $10.23 | |||
Class C | $10.23 | |||
Class E | $10.23 | |||
Class I | $10.23 | |||
Class Y | $10.23 | |||
Capital shares outstanding: | ||||
Class A | 7,829 | |||
Class B | 210 | |||
Class C | 406 | |||
Class E | 41 | |||
Class I | 15 | |||
�� Class Y | 1 |
See Notes to Financial Statements.
Statement of Operations
IVY BOND FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 2,301 | ||
Dividends | 18 | |||
Total income | 2,319 | |||
Expenses (Note 2): | ||||
Investment management fee | 206 | |||
Service fee: | ||||
Class A | 87 | |||
Class B | 2 | |||
Class C | 6 | |||
Class Y | –– | * | ||
Shareholder servicing: | ||||
Class A | 73 | |||
Class B | 6 | |||
Class C | 6 | |||
Class E | 1 | |||
Class I | –– | * | ||
Class Y | –– | * | ||
Registration fees | 39 | |||
Distribution fee: | ||||
Class A | 2 | |||
Class B | 8 | |||
Class C | 18 | |||
Class E | –– | * | ||
Accounting services fee | 24 | |||
Audit fees | 13 | |||
Custodian fees | 7 | |||
Legal fees | 1 | |||
Other | 6 | |||
Total expenses | 505 | |||
Net investment income | 1,814 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 5 | |||
Realized net loss on futures | (69 | ) | ||
Realized net loss on investments | (64 | ) | ||
Unrealized depreciation in value of securities during the period | (1,650 | ) | ||
Unrealized appreciation in value of futures during the period | 49 | |||
Unrealized depreciation in value of investments during the period | (1,601 | ) | ||
Net loss on investments | (1,665 | ) | ||
Net increase in net assets resulting from operations | $ | 149 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY BOND FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,814 | $ | 2,846 | ||||
Realized net loss on investments | (64 | ) | (186 | ) | ||||
Unrealized appreciation (depreciation) | (1,601 | ) | 1,245 | |||||
Net increase in net assets resulting from operations | 149 | 3,905 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (1,676 | ) | (2,687 | ) | ||||
Class B | (35 | ) | (55 | ) | ||||
Class C | (92 | ) | (102 | ) | ||||
Class E | (7 | ) | NA | |||||
Class I | (4 | ) | NA | |||||
Class Y | (–– | )* | (2 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
(1,814 | ) | (2,846 | ) | |||||
Capital share transactions (Note 5) | 18,469 | 10,386 | ||||||
Total increase | 16,804 | 11,445 | ||||||
NET ASSETS | ||||||||
Beginning of period | 70,175 | 58,730 | ||||||
End of period | $ | 86,979 | $ | 70,175 | ||||
Undistributed net investment income | $ | –– | $ | –– | ||||
*Not shown due to rounding
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended September 30, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.73 | $ | 10.57 | $ | 10.30 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.24 | 0.46 | 0.42 | 0.41 | 0.23 | 0.45 | 0.52 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | ) | 0.18 | (0.24 | ) | (0.30 | ) | 0.09 | 0.15 | 0.27 | ||||||||||||||
Total from investment operations | 0.01 | 0.64 | 0.18 | 0.11 | 0.32 | 0.60 | 0.79 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.46 | ) | (0.42 | ) | (0.42 | ) | (0.22 | ) | (0.44 | ) | (0.52 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.24 | ) | (0.46 | ) | (0.42 | ) | (0.42 | ) | (0.22 | ) | (0.44 | ) | (0.52 | ) | ||||||||||
Net asset value, end of period | $ | 10.23 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.73 | $ | 10.57 | ||||||||||
Total return(1) | 0.15 | % | 6.40 | % | 1.74 | % | 1.04 | % | 3.03 | % | 5.84 | % | 7.90 | % | ||||||||||
Net assets, end of period (in millions) | $80 | $64 | $56 | $49 | $23 | $18 | $17 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.21 | %(2) | 1.20 | % | 1.23 | % | 1.17 | % | 1.46 | %(2)(3) | 1.15 | % | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets including reimbursement | 4.70 | %(2) | 4.48 | % | 4.03 | % | 3.84 | % | 4.53 | %(2)(3) | 4.25 | % | 5.07 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.21 | %(2)(4) | 1.20 | %(4) | 1.23 | %(4) | 1.43 | % | 2.36 | %(2)(3) | 2.01 | % | 1.92 | % | ||||||||||
Ratio of net investment income to average net assets excluding reimbursement | 4.70 | %(2)(4) | 4.48 | %(4) | 4.03 | %(4) | 3.58 | % | 3.64 | %(2)(3) | 3.39 | % | 4.30 | % | ||||||||||
Portfolio turnover rate | 4 | % | 91 | % | 126 | % | 200 | % | 78 | % | 119 | % | 148 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.18 | 0.34 | 0.30 | 0.28 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | ) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | ||||||||||||
Total from investment operations | (0.05 | ) | 0.52 | 0.06 | (0.03 | ) | 0.30 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.18 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.11 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.18 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.11 | ) | ||||||||||
Net asset value, end of period | $ | 10.23 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | ||||||||||
Total return | - -0.43 | % | 5.22 | % | 0.57 | % | - -0.23 | % | 2.77 | % | ||||||||||
Net assets, end of period (in thousands) | $2,149 | $1,828 | $1,451 | $744 | $287 | |||||||||||||||
Ratio of expenses to average net assets | 2.36 | %(2) | 2.32 | % | 2.38 | % | 2.45 | % | 2.76 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 3.55 | %(2) | 3.37 | % | 2.90 | % | 2.63 | % | 3.04 | %(2) | ||||||||||
Portfolio turnover rate | 4 | % | 91 | % | 126 | % | 200 | % | 78 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.20 | 0.37 | 0.31 | 0.27 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | ) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | ||||||||||||
Total from investment operations | (0.03 | ) | 0.55 | 0.07 | (0.04 | ) | 0.30 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.37 | ) | (0.31 | ) | (0.27 | ) | (0.11 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.20 | ) | (0.37 | ) | (0.31 | ) | (0.27 | ) | (0.11 | ) | ||||||||||
Net asset value, end of period | $ | 10.23 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | ||||||||||
Total return | - -0.27 | % | 5.48 | % | 0.66 | % | - -0.40 | % | 2.77 | % | ||||||||||
Net assets, end of period (in thousands) | $4,159 | $4,096 | $1,737 | $547 | $115 | |||||||||||||||
Ratio of expenses to average net assets | 2.02 | %(2) | 2.06 | % | 2.28 | % | 2.59 | % | 2.61 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 3.89 | %(2) | 3.62 | % | 3.01 | % | 2.47 | % | 3.09 | %(2) | ||||||||||
Portfolio turnover rate | 4 | % | 91 | % | 126 | % | 200 | % | 78 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07 (1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.46 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.23 | (2) | |||
Net realized and unrealized loss on investments | (0.23 | )(2) | |||
Total from investment operations | 0.00 | ||||
Less distributions from: | |||||
Net investment income | (0.23 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.23 | ) | |||
Net asset value, end of period | $ | 10.23 | |||
Total return (3) | 0.03 | % | |||
Net assets, end of period (in thousands) | $416 | ||||
Ratio of expenses to average net assets | 1.33 | %(4) | |||
Ratio of net investment income to average net assets | 4.59 | %(4) | |||
Portfolio turnover rate | 4 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07 (1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.46 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.26 | (2) | |||
Net realized and unrealized loss on investments | (0.23 | )(2) | |||
Total from investment operations | 0.03 | ||||
Less distributions from: | |||||
Net investment income | (0.26 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.26 | ) | |||
Net asset value, end of period | $ | 10.23 | |||
Total return | 0.32 | % | |||
Net assets, end of period (in thousands) | $155 | ||||
Ratio of expenses to average net assets | 0.95 | %(3) | |||
Ratio of net investment income to average net assets | 4.96 | %(3) | |||
Portfolio turnover rate | 4 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.24 | (2) | 0.46 | 0.41 | 0.39 | 0.13 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | )(2) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | ||||||||||||
Total from investment operations | 0.01 | 0.64 | 0.17 | 0.08 | 0.32 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.24 | ) | (0.46 | ) | (0.41 | ) | (0.39 | ) | (0.13 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.24 | ) | (0.46 | ) | (0.41 | ) | (0.39 | ) | (0.13 | ) | ||||||||||
Net asset value, end of period | $ | 10.23 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | ||||||||||
Total return | 0.08 | % | 6.43 | % | 1.62 | % | 0.75 | % | 3.03 | % | ||||||||||
Net assets, end of period (in thousands) | $8 | $42 | $20 | $34 | $25 | |||||||||||||||
Ratio of expenses to average net assets | 1.38 | %(3) | 1.09 | % | 1.34 | % | 1.46 | % | 1.54 | %(3) | ||||||||||
Ratio of net investment income to average net assets | 4.54 | %(3) | 4.60 | % | 3.91 | % | 3.65 | % | 3.99 | %(3) | ||||||||||
Portfolio turnover rate | 4 | % | 91 | % | 126 | % | 200 | % | 78 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY CUNDILL GLOBAL VALUE FUND
Portfolio Highlights
On September 30, 2007, Ivy Cundill Global Value Fund had net assets totaling
$869,366,906 invested in a diversified portfolio of:
85.20% | Foreign Common Stocks | |
8.69% | Domestic Common Stocks | |
6.11% | Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
Country Weightings
Japan | $ | 34.73 | |||
South Korea | $ | 19.38 | |||
United States | $ | 8.69 | |||
Italy | $ | 8.41 | |||
Germany | $ | 6.14 | |||
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts | $ | 6.11 | |||
Singapore | $ | 5.26 | |||
Bermuda | $ | 4.86 | |||
Turkey | $ | 2.95 | |||
Canada | $ | 2.81 | |||
Cayman Islands | $ | 0.66 |
Sector Weightings
Consumer Nondurables Stocks | $ | 18.06 | |||
Consumer Services Stocks | $ | 17.14 | |||
Financial Services Stocks | $ | 16.85 | |||
Technology Stocks | $ | 10.59 | |||
Utilities Stocks | $ | 8.27 | |||
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts | $ | 6.11 | |||
Retail Stocks | $ | 5.00 | |||
Multi-Industry Stocks | $ | 4.86 | |||
Business Equipment and Services Stocks | $ | 4.82 | |||
Health Care Stocks | $ | 4.62 | |||
Capital Goods Stocks | $ | 3.68 |
The Investments of Ivy Cundill Global Value Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Bermuda - 4.86% | ||||||||
First Pacific Company Limited (A) | 56,604,000 | $ | 42,231,738 | |||||
Canada - 2.81% | ||||||||
Fairfax Financial Holdings Limited (A) | 100,100 | 24,406,829 | ||||||
Cayman Islands - 0.66% | ||||||||
Semiconductor Manufacturing International Corporation (A)* | 48,574,000 | 5,748,513 | ||||||
| | |||||||
Germany - 6.14% | ||||||||
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A) | 278,707 | 53,413,311 | ||||||
| | |||||||
Italy - 8.41% | ||||||||
Italmobiliare S.p.A., Non-Convertible Savings Shares (A) | 388,008 | 32,023,704 | ||||||
Mediaset S.p.A. (A) | 3,978,030 | 41,068,513 | ||||||
73,092,217 | ||||||||
Japan - 34.73% | ||||||||
AIFUL Corporation (A) | 2,299,050 | 36,027,424 | ||||||
Asatsu-DK Inc. (A)* | 1,302,000 | 41,939,668 | ||||||
Coca-Cola West Holdings Company, Limited (A)* | 1,879,200 | 44,172,202 | ||||||
Kirin Brewery Company, Limited (A)* | 2,495,000 | 33,016,149 | ||||||
Mabuchi Motor Co., Ltd. (A)* | 673,000 | 43,884,299 | ||||||
Seven & i Holdings Co., Ltd. (A) | 1,690,700 | 43,494,698 | ||||||
TV Asahi Corporation (A) | 16,614 | 26,758,281 | ||||||
Takefuji Corporation (A) | 1,643,520 | 32,622,867 | ||||||
301,915,588 | ||||||||
Singapore - 5.26% | ||||||||
Singapore Press Holdings Limited (A) | 15,738,000 | 45,767,863 | ||||||
South Korea - 19.38% | ||||||||
Korea Electric Power Corporation (A) | 1,124,104 | 52,692,375 | ||||||
Korea Tobacco & Ginseng Corporation (A) | 692,838 | 54,127,969 | ||||||
SK Telecom Co., Ltd. (A)* | 42,571 | 9,768,258 | ||||||
SK Telecom Co., Ltd., ADR* | 318,866 | 9,470,320 | ||||||
Samsung Electronics Co., Ltd. (A)* | 91,213 | 42,457,100 | ||||||
168,516,022 | ||||||||
Thailand - 2.95% | ||||||||
Thai Beverage Public Company Limited (A)* | 143,580,000 | 25,613,396 | ||||||
United States - 8.69% | ||||||||
DIRECTV Group, Inc. (The)* | 1,458,742 | 35,418,256 | ||||||
Pfizer Inc.* | 1,642,700 | 40,131,161 | ||||||
75,549,417 | ||||||||
TOTAL COMMON STOCKS - 93.89% | $ | 816,254,894 | ||||||
(Cost: $758,777,011) | ||||||||
UNREALIZED LOSS ON OPEN FORWARD CURRENCY CONTRACTS - (2.05%) | Face Amount in Thousands | |||||||
Euro, 1-18-08 (B) | EUR46,105 | (3,504,446 | ) | |||||
Euro, 3-14-08 (B) | 33,340 | (1,252,287 | ) | |||||
Japanese Yen, 1-18-08 (B) | JPY17,097,976 | (8,938,920 | ) | |||||
Japanese Yen, 3-14-08 (B) | 14,179,514 | (331,376 | ) | |||||
Singapore Dollar, 1-18-08 (B) | SGD52,044 | (832,595 | ) | |||||
Singapore Dollar, 3-14-08 (B) | 40,826 | (535,181 | ) | |||||
South Korean Won, 1-18-08 (B) | KRW77,245,913 | (1,394,122 | ) | |||||
South Korean Won, 3-14-08 (B) | 59,905,775 | (1,052,300 | ) | |||||
$ | (17,841,227 | ) | ||||||
SHORT-TERM SECURITIES - 6.05% | Principal Amount in Thousands | |||||||
Repurchase Agreements | ||||||||
J.P. Morgan Securities Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $52,594,869 on 10-1-07 (C) | $ | 52,578 | $ | 52,578,000 | ||||
Cost: $52,578,000) | ||||||||
TOTAL INVESTMENT SECURITIES - 97.89% | $ | 850,991,667 | ||||||
(Cost: $811,355,011) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.11% | 18,375,239 | |||||||
NET ASSETS - 100.00% | $ | 869,366,906 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro, JPY - Japanese Yen, KRW - South Korean Won, SGD - Singapore Dollar). |
(C)Collateralized by $39,639,000 United States Treasury Bond, 8.5% due 2-15-20; market value and accrued interest aggregate $53,698,597. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY CUNDILL GLOBAL VALUE FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (Notes 1 and 3): | ||||
Securities (cost - $758,777) | $ | 798,414 | ||
Repurchase agreement (cost - $52,578) | 52,578 | |||
850,992 | ||||
Cash denominated in foreign currencies (cost - $25,786) | 26,031 | |||
Receivables: | ||||
Dividends and interest | 2,850 | |||
Fund shares sold | 1,845 | |||
Prepaid and other assets | 54 | |||
Total assets | 881,772 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 5,306 | |||
Due to custodian | 3,741 | |||
Payable for investment securities purchased | 1,695 | |||
Accrued management fee (Note 2) | 687 | |||
Accrued service fee (Note 2) | 351 | |||
Accrued shareholder servicing (Note 2) | 291 | |||
Accrued distribution fee (Note 2) | 154 | |||
Accrued accounting services fee (Note 2) | 12 | |||
Accrued administrative fee (Note 2) | 7 | |||
Other | 161 | |||
Total liabilities | 12,405 | |||
Total net assets | $ | 869,367 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 747,803 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 5,111 | |||
Accumulated undistributed net realized gain on investment transactions | 76,563 | |||
Net unrealized appreciation in value of investments | 39,890 | |||
Net assets applicable to outstanding units of capital | $ | 869,367 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $15.44 | |||
Class B | $15.04 | |||
Class C | $15.01 | |||
Class E | $15.41 | |||
Class I | $15.61 | |||
Class Y | $15.52 | |||
Advisor Class | $15.50 | |||
Class II | $15.36 | |||
Capital shares outstanding: | ||||
Class A | 39,909 | |||
Class B | 3,354 | |||
Class C | 12,385 | |||
Class E | 20 | |||
Class I | 127 | |||
Class Y | 760 | |||
Advisor Class | 181 | |||
Class II | 2 |
See Notes to Financial Statements.
Statement of Operations
IVY CUNDILL GLOBAL VALUE FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $1,154) | $ | 10,394 | ||
Interest and amortization | 2,868 | |||
Total income | 13,262 | |||
Expenses (Note 2): | ||||
Investment management fee | 4,559 | |||
Shareholder servicing: | ||||
Class A | 919 | |||
Class B | 109 | |||
Class C | 180 | |||
Class E | 1 | |||
Class I | 2 | |||
Class Y | 11 | |||
Advisor Class | –– | * | ||
Class II | –– | * | ||
Service fee: | ||||
Class A | 817 | |||
Class B | 72 | |||
Class C | 279 | |||
Class Y | 17 | |||
Distribution fee: | ||||
Class A | 40 | |||
Class B | 215 | |||
Class C | 837 | |||
Class E | –– | * | ||
Custodian fees | 132 | |||
Accounting services fee | 82 | |||
Administrative fee | 49 | |||
Audit fees | 12 | |||
Legal fees | 10 | |||
Other | 256 | |||
Total | 8,599 | |||
Less expenses in excess of voluntary limit (Note 2) | (15 | ) | ||
Total expenses | 8,584 | |||
Net investment income | 4,678 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 40,455 | |||
Realized net gain on forward currency contracts | 2,481 | |||
Realized net gain on foreign currency transactions | 2,026 | |||
Realized net gain on investments | 44,962 | |||
Unrealized depreciation in value of securities during the period | (86,224 | ) | ||
Unrealized depreciation in value of forward currency contracts during the period | (14,275 | ) | ||
Unrealized depreciation in value of investments during the period | (100,499 | ) | ||
Net loss on investments | (55,537 | ) | ||
Net decrease in net assets resulting from operations | $ | (50,859 | ) | |
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY CUNDILL GLOBAL VALUE FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 4,678 | $ | 5,753 | ||||
Realized net gain on investments | 44,962 | 79,392 | ||||||
Unrealized appreciation (depreciation) | (100,499 | ) | 10,677 | |||||
Net increase (decrease) in net assets resulting from operations | (50,859 | ) | 95,822 | |||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (4,498 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (219 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
�� Class Y | (–– | ) | (146 | ) | ||||
Advisor Class | (–– | ) | (37 | ) | ||||
Class II | (–– | ) | (–– | )* | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (30,521 | ) | ||||
Class B | (–– | ) | (2,704 | ) | ||||
Class C | (–– | ) | (10,901 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (689 | ) | ||||
Advisor Class | (–– | ) | (142 | ) | ||||
Class II | (–– | ) | (1 | ) | ||||
(–– | ) | (49,858 | ) | |||||
Capital share transactions (Note 5) | (77,731 | ) | 38,788 | |||||
Total increase (decrease) | (128,590 | ) | 84,752 | |||||
NET ASSETS | ||||||||
Beginning of period | 997,957 | 913,205 | ||||||
End of period | $869,367 | $997,957 | ||||||
Undistributed net investment income (loss) | $5,111 | $(1,593 | ) | |||||
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.28 | $ | 15.52 | $ | 13.79 | $ | 12.57 | $ | 11.41 | $ | 8.39 | $ | 9.64 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.13 | 0.17 | 0.04 | 0.01 | 0.01 | (0.00 | )(1) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.94 | ) | 1.49 | 2.21 | 1.25 | 1.15 | 3.05 | (1.17 | )(1) | |||||||||||||||
Total from investment operations | (0.84 | ) | 1.62 | 2.38 | 1.29 | 1.16 | 3.06 | (1.17 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.11 | ) | (0.16 | ) | (0.07 | ) | (0.00 | ) | (0.04 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.86 | ) | (0.65 | ) | (0.07 | ) | (0.00 | ) | (0.04 | ) | (0.08 | ) | ||||||||||
Net asset value, end of period | $ | 15.44 | $ | 16.28 | $ | 15.52 | $ | 13.79 | $ | 12.57 | $ | 11.41 | $ | 8.39 | ||||||||||
Total return(2) | - -5.16 | % | 10.71 | % | 17.49 | % | 10.29 | % | 10.17 | % | 36.43 | % | - -12.17 | % | ||||||||||
Net assets, end of period (in millions) | $616 | $688 | $625 | $321 | $59 | $30 | $1 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.55 | %(3) | 1.55 | % | 1.62 | % | 1.74 | % | 1.70 | %(3) | 2.05 | % | 2.28 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.14 | %(3) | 0.81 | % | 1.09 | % | 0.08 | % | - -0.09 | %(3) | 0.18 | % | 0.02 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.55 | %(3)(4) | 1.55 | %(4) | 1.62 | %(4) | 1.74 | %(4) | 1.84 | %(3) | 2.21 | % | 4.97 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.14 | %(3)(4) | 0.81 | %(4) | 1.09 | %(4) | 0.08 | %(4) | - -0.23 | %(3) | 0.02 | % | - -2.67 | % | ||||||||||
Portfolio turnover rate | 28 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % | 122 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.93 | $ | 15.23 | $ | 13.54 | $ | 12.38 | $ | 11.26 | $ | 8.32 | $ | 9.61 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.02 | (0.01 | ) | 0.06 | (0.01 | ) | (0.02 | ) | (0.06 | ) | (0.05 | )(1) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.91 | ) | 1.46 | 2.14 | 1.17 | 1.14 | 3.00 | (1.16 | )(1) | |||||||||||||||
Total from investment operations | (0.89 | ) | 1.45 | 2.20 | 1.16 | 1.12 | 2.94 | (1.21 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.02 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.75 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Net asset value, end of period | $ | 15.04 | $ | 15.93 | $ | 15.23 | $ | 13.54 | $ | 12.38 | $ | 11.26 | $ | 8.32 | ||||||||||
Total return | - -5.65 | % | 9.82 | % | 16.43 | % | 9.37 | % | 9.95 | % | 35.34 | % | - -12.62 | % | ||||||||||
Net assets, end of period (in millions) | $50 | $59 | $57 | $37 | $12 | $7 | $2 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.43 | %(2) | 2.44 | % | 2.51 | % | 2.62 | % | 2.52 | %(2) | 3.20 | % | 2.84 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.27 | %(2) | - -0.07 | % | 0.21 | % | - -0.86 | % | - -1.31 | %(2) | - -1.13 | % | - -0.54 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.43 | %(2)(3) | 2.44 | %(3) | 2.51 | %(3) | 2.62 | %(3) | 2.67 | %(2) | 3.36 | % | 5.53 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.27 | %(2)(3) | - -0.07 | %(3) | 0.21 | %(3) | - -0.86 | %(3) | - -1.46 | %(2) | - -1.29 | % | - -3.23 | % | ||||||||||
Portfolio turnover rate | 28 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % | 122 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.88 | $ | 15.16 | $ | 13.48 | $ | 12.30 | $ | 11.19 | $ | 8.26 | $ | 9.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.03 | 0.08 | (0.02 | ) | (0.01 | ) | (0.03 | ) | (0.07 | )(1) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.91 | ) | 1.46 | 2.14 | 1.20 | 1.12 | 2.96 | (1.16 | )(1) | |||||||||||||||
Total from investment operations | (0.87 | ) | 1.49 | 2.22 | 1.18 | 1.11 | 2.93 | (1.23 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.02 | ) | (0.05 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.77 | ) | (0.54 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Net asset value, end of period | $ | 15.01 | $ | 15.88 | $ | 15.16 | $ | 13.48 | $ | 12.30 | $ | 11.19 | $ | 8.26 | ||||||||||
Total return | - -5.48 | % | 10.03 | % | 16.70 | % | 9.59 | % | 9.92 | % | 35.47 | % | - -12.88 | % | ||||||||||
Net assets, end of period (in thousands) | $185,854 | $233,049 | $211,242 | $96,375 | $23,840 | $11,235 | $446 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.20 | %(2) | 2.21 | % | 2.28 | % | 2.42 | % | 2.35 | %(2) | 2.93 | % | 3.10 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.49 | %(2) | 0.15 | % | 0.43 | % | - -0.62 | % | - -1.09 | %(2) | - -0.83 | % | - -0.80 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.20 | %(2)(3) | 2.21 | %(3) | 2.28 | %(3) | 2.42 | %(3) | 2.50 | %(2) | 3.10 | % | 5.79 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.49 | %(2)(3) | 0.15 | %(3) | 0.43 | %(3) | - -0.62 | %(3) | - -1.23 | %(2) | - -1.00 | % | - -3.49 | % | ||||||||||
Portfolio turnover rate | 28 | % | 42% | 4 | % | 5% | 1% | 24 | % | 122 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.28 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.02 | (2) | |||
Net realized and unrealized loss on investments | (0.89 | )(2) | |||
Total from investment operations | (0.87 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 15.41 | |||
Total return (3) | - -5.05 | % | |||
Net assets, end of period (in thousands) | $310 | ||||
Ratio of expenses to average net assets | 2.05 | %(4) | |||
Ratio of net investment income to average net assets | 0.27 | %(4) | |||
Portfolio turnover rate | 28 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.34 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.13 | (2) | |||
Net realized and unrealized loss on investments | (0.86 | )(2) | |||
Total from investment operations | (0.73 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 15.61 | |||
Total return | -4.18 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets | 1.20 | %(3) | |||
Ratio of net investment income to average net assets | 1.47 | %(3) | |||
Portfolio turnover rate | 28 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.33 | $ | 15.56 | $ | 13.82 | $ | 12.58 | $ | 11.40 | $ | 9.84 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.19 | 0.19 | 0.07 | (0.01 | ) | 0.02 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.92 | ) | 1.49 | 2.26 | 1.29 | 1.19 | 1.58 | ||||||||||||||||
Total from investment operations | (0.81 | ) | 1.68 | 2.45 | 1.36 | 1.18 | 1.60 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.16 | ) | (0.22 | ) | (0.12 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.91 | ) | (0.71 | ) | (0.12 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Net asset value, end of period | $ | 15.52 | $ | 16.33 | $ | 15.56 | $ | 13.82 | $ | 12.58 | $ | 11.40 | |||||||||||
Total return | - -5.02 | % | 11.14 | % | 17.99 | % | 10.90 | % | 10.35 | % | 16.28 | % | |||||||||||
Net assets, end of period (in millions) | $12 | $15 | $17 | $10 | $2 | $1 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.20 | %(2) | 1.20 | % | 1.19 | % | 1.20 | % | 1.20 | %(2) | 1.76 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.47 | %(2) | 1.18 | % | 1.46 | % | 0.52 | % | - -0.32 | %(2) | 0.55 | %(2) | |||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.43 | %(2) | 1.42 | % | 1.46 | % | 1.56 | % | 1.80 | %(2) | 2.09 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.24 | %(2) | 0.96 | % | 1.19 | % | 0.16 | % | - -0.92 | %(2) | 0.22 | %(2) | |||||||||||
Portfolio turnover rate | 28 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Advisor Class Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.30 | $ | 15.54 | $ | 13.77 | $ | 12.54 | $ | 11.37 | $ | 8.34 | $ | 9.55 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 0.13 | 0.21 | 0.22 | 0.04 | (0.01 | ) | (0.01 | ) | 0.04 | (2) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.93 | ) | 1.49 | 2.23 | 1.32 | 1.18 | 3.10 | (1.17 | )(2) | ||||||||||||||||
Total from investment operations | (0.80 | ) | 1.70 | 2.45 | 1.36 | 1.17 | 3.09 | (1.13 | ) | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.19 | ) | (0.19 | ) | (0.13 | ) | (0.00 | ) | (0.06 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.94 | ) | (0.68 | ) | (0.13 | ) | (0.00 | ) | (0.06 | ) | (0.08 | ) | |||||||||||
Net asset value, end of period | $ | 15.50 | $ | 16.30 | $ | 15.54 | $ | 13.77 | $ | 12.54 | $ | 11.37 | $ | 8.34 | |||||||||||
Total return | -4.97 | % | 11.33 | % | 18.09 | % | 10.86 | % | 10.29 | % | 37.11 | % | - -11.86 | % | |||||||||||
Net assets, end of period (in millions) | $3 | $3 | $3 | $3 | $3 | $3 | $2 | ||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.04 | %(3) | 1.05 | % | 1.12 | % | 1.23 | % | 1.26 | %(3) | 2.12 | % | 1.83 | % | |||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.65 | %(3) | 1.31 | % | 1.57 | % | 0.41 | % | - -0.17 | %(3) | - -0.07 | % | 0.47 | % | |||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.04 | %(3)(4) | 1.05 | %(4) | 1.12 | %(4) | 1.23 | %(4) | 1.41 | %(3) | 2.28 | % | 4.52 | % | |||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.65 | %(3)(4) | 1.31 | %(4) | 1.57 | %(4) | 0.41 | %(4) | - -0.32 | %(3) | - -0.23 | % | - -2.22 | % | |||||||||||
Portfolio turnover rate | 28 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % | 122 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class II Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended | For the period from 11-5-02(2) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | 12-31-02 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.16 | $ | 15.41 | $ | 13.70 | $ | 12.49 | $ | 11.33 | $ | 8.31 | $ | 8.85 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.24 | 0.25 | (3) | 0.02 | (0.01 | ) | 0.00 | 0.26 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.97 | ) | 1.44 | 2.16 | (3) | 1.30 | 1.17 | 3.08 | (0.72 | ) | ||||||||||||||
Total from investment operations | (0.80 | ) | 1.68 | 2.41 | 1.32 | 1.16 | 3.08 | (0.46 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.18 | ) | (0.21 | ) | (0.11 | ) | (0.00 | ) | (0.06 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.93 | ) | (0.70 | ) | (0.11 | ) | (0.00 | ) | (0.06 | ) | (0.08 | ) | ||||||||||
Net asset value, end of period | $ | 15.36 | $ | 16.16 | $ | 15.41 | $ | 13.70 | $ | 12.49 | $ | 11.33 | $ | 8.31 | ||||||||||
Total return | -4.95 | % | 11.24 | % | 17.88 | % | 10.62 | % | 10.24 | % | 37.12 | % | - -5.23 | % | ||||||||||
Net assets, end of period (in thousands) | $25 | $26 | $24 | $70 | $63 | $57 | $42 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.11 | %(4) | 1.08 | % | 1.28 | % | 1.49 | % | 1.39 | %(4) | 2.03 | % | 11.51 | %(4) | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.58 | %(4) | 1.28 | % | 1.20 | % | 0.16 | % | - -0.29 | %(4) | 0.03 | % | 2.96 | %(4) | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.11 | %(4)(5) | 1.08 | %(5) | 1.28 | %(5) | 1.49 | %(5) | 1.53 | %(4) | 2.20 | % | 28.44 | %(4) | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.58 | %(4)(5) | 1.28 | %(5) | 1.20 | %(5) | 0.16 | %(5) | - -0.44 | %(4) | - -0.13 | % | - -13.97 | %(4) | ||||||||||
Portfolio turnover rate | 28 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % | 122 | %(6) |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY DIVIDEND INCOME FUND
Portfolio Highlights
On September 30, 2007, Ivy Dividend Income Fund had net assets totaling
$186,368,424 invested in a diversified portfolio of:
85.42% | Domestic Common Stocks | |
7.34% | Foreign Common Stocks | |
7.24% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Financial Services Stocks | $ | 17.56 | |||
Energy Stocks | $ | 16.78 | |||
Capital Goods Stocks | $ | 9.38 | |||
Technology Stocks | $ | 9.31 | |||
Consumer Nondurables Stocks | $ | 8.42 | |||
Cash and Cash Equivalents | $ | 7.24 | |||
Raw Materials Stocks | $ | 7.03 | |||
Utilities Stocks | $ | 6.22 | |||
Multi-Industry Stocks | $ | 6.10 | |||
Miscellaneous Stocks | $ | 5.53 | |||
Health Care Stocks | $ | 3.41 | |||
Shelter Stocks | $ | 3.02 |
The Investments of Ivy Dividend Income Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Aircraft - 6.59% | ||||||||
Boeing Company (The) | 53,650 | $ | 5,632,713 | |||||
Goodrich Corporation | 48,850 | 3,333,035 | ||||||
Raytheon Company | 52,050 | 3,321,831 | ||||||
12,287,579 | ||||||||
Banks - 1.61% | ||||||||
Bank of America Corporation | 59,450 | 2,988,551 | ||||||
Beverages - 3.86% | ||||||||
Coca-Cola Company (The) | 39,400 | 2,264,318 | ||||||
Diageo plc, ADR | 30,300 | 2,658,219 | ||||||
PepsiCo, Inc. | 31,100 | 2,278,386 | ||||||
7,200,923 | ||||||||
Capital Equipment - 4.25% | ||||||||
Caterpillar Inc. | 19,850 | 1,556,835 | ||||||
Deere & Company | 42,900 | 6,367,218 | ||||||
7,924,053 | ||||||||
Chemicals - Petroleum and Inorganic - 4.27% | ||||||||
E.I. du Pont de Nemours and Company | 48,400 | 2,398,704 | ||||||
Monsanto Company | 41,900 | 3,592,506 | ||||||
UAP Holding Corp. | 62,450 | 1,959,369 | ||||||
7,950,579 | ||||||||
Chemicals - Specialty - 1.68% | ||||||||
Air Products and Chemicals, Inc. | 32,050 | 3,133,208 | ||||||
Communications Equipment - 0.71% | ||||||||
Nokia Corporation, Series A, ADR | 34,650 | 1,314,275 | ||||||
Computers - Peripherals - 1.09% | ||||||||
Microsoft Corporation | 68,750 | 2,025,719 | ||||||
Electrical Equipment - 0.99% | ||||||||
Emerson Electric Co. | 34,450 | 1,833,429 | ||||||
Electronic Components - 0.92% | ||||||||
Microchip Technology Incorporated | 47,100 | 1,709,730 | ||||||
Finance Companies - 1.12% | ||||||||
Blackstone Group L.P. (The)* | 11,400 | 285,912 | ||||||
Fannie Mae | 29,750 | 1,809,097 | ||||||
2,095,009 | ||||||||
Health Care - Drugs - 2.48% | ||||||||
Abbott Laboratories | 43,850 | 2,351,237 | ||||||
Merck & Co., Inc. | 43,850 | 2,266,607 | ||||||
4,617,844 | ||||||||
Hospital Supply and Management - 0.93% | ||||||||
Medtronic, Inc. | 30,650 | 1,728,967 | ||||||
Hotels and Gaming - 2.25% | ||||||||
Harrah's Entertainment, Inc. | 19,550 | 1,699,481 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 41,100 | 2,496,825 | ||||||
4,196,306 | ||||||||
Household - General Products - 3.64% | ||||||||
Colgate-Palmolive Company | 47,250 | 3,369,870 | ||||||
Procter & Gamble Company (The) | 48,450 | 3,407,973 | ||||||
6,777,843 | ||||||||
Insurance - Life - 0.92% | ||||||||
Aflac Incorporated | 30,200 | 1,722,608 | ||||||
Insurance - Property and Casualty - 4.61% | ||||||||
ACE Limited | 22,250 | 1,347,682 | ||||||
Ambac Financial Group, Inc. | 31,500 | 1,981,665 | ||||||
Everest Re Group, Ltd. | 15,250 | 1,681,160 | ||||||
MBIA Inc. | 33,750 | 2,060,438 | ||||||
Travelers Companies, Inc. (The) | 30,150 | 1,517,751 | ||||||
8,588,696 | ||||||||
Metal Fabrication - 1.13% | ||||||||
Loews Corporation, Carolina Group | 25,700 | 2,113,311 | ||||||
Mining - 0.59% | ||||||||
Rio Tinto plc, ADR | 3,200 | 1,098,880 | ||||||
Multiple Industry - 6.10% | ||||||||
Altria Group, Inc. | 66,000 | 4,588,980 | ||||||
General Electric Company | 109,100 | 4,516,740 | ||||||
NuStar GP Holdings, LLC | 72,950 | 2,268,016 | ||||||
11,373,736 | ||||||||
Non-Residential Construction - 3.01% | ||||||||
Fluor Corporation | 39,000 | 5,615,220 | ||||||
Petroleum - International - 6.06% | ||||||||
Anadarko Petroleum Corporation | 44,550 | 2,394,562 | ||||||
Apache Corporation | 27,900 | 2,512,674 | ||||||
Exxon Mobil Corporation | 59,600 | 5,516,576 | ||||||
Marathon Oil Corporation | 15,200 | 866,704 | ||||||
11,290,516 | ||||||||
Petroleum - Services - 10.72% | ||||||||
Baker Hughes Incorporated | 41,500 | 3,750,355 | ||||||
Grant Prideco, Inc.* | 33,000 | 1,799,160 | ||||||
National Oilwell Varco, Inc.* | 22,650 | 3,272,925 | ||||||
Schlumberger Limited | 64,200 | 6,741,000 | ||||||
Transocean Inc.* | 17,600 | 1,989,680 | ||||||
Weatherford International Ltd.* | 36,200 | 2,431,916 | ||||||
19,985,036 | ||||||||
Railroad - 2.05% | ||||||||
Burlington Northern Santa Fe Corporation | 17,650 | 1,432,650 | ||||||
Union Pacific Corporation | 21,150 | 2,391,219 | ||||||
3,823,869 | ||||||||
Real Estate Investment Trust - 3.02% | ||||||||
Douglas Emmett, Inc. | 78,500 | 1,941,305 | ||||||
ProLogis | 22,650 | 1,502,828 | ||||||
Simon Property Group, Inc. | 21,900 | 2,190,000 | ||||||
5,634,133 | ||||||||
Restaurants - 1.23% | ||||||||
McDonald's Corporation | 42,000 | 2,287,740 | ||||||
Security and Commodity Brokers - 9.30% | ||||||||
AllianceBernstein Holding L.P. | 60,450 | 5,323,831 | ||||||
CME Group Inc. | 9,450 | 5,550,457 | ||||||
J.P. Morgan Chase & Co. | 39,452 | 1,807,691 | ||||||
NYMEX Holdings, Inc. | 21,800 | 2,837,924 | ||||||
UBS AG | 34,000 | 1,810,500 | ||||||
17,330,403 | ||||||||
Steel - 0.49% | ||||||||
Nucor Corporation | 15,450 | 918,812 | ||||||
Tobacco - 0.92% | ||||||||
Reynolds American Inc. | 27,000 | 1,716,930 | ||||||
Utilities - Electric - 2.69% | ||||||||
Dominion Resources, Inc. | 22,100 | 1,863,030 | ||||||
NRG Energy, Inc.* | 74,650 | 3,156,949 | ||||||
5,019,979 | ||||||||
Utilities - Gas and Pipeline - 0.72% | ||||||||
Enbridge Inc. | 36,350 | 1,332,954 | ||||||
Utilities - Telephone - 2.81% | ||||||||
AT&T Inc. | 54,073 | 2,287,829 | ||||||
Iowa Telecommunications Services, Inc. | 84,150 | 1,670,378 | ||||||
Verizon Communications Inc. | 28,950 | 1,281,906 | ||||||
5,240,113 | ||||||||
TOTAL COMMON STOCKS - 92.76% | $ | 172,876,951 | ||||||
(Cost: $129,801,414) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Commercial Paper | ||||||||
Electrical Equipment - 0.80% | ||||||||
W.W. Grainger, Inc., | ||||||||
4.78%, 10-24-07 | $ | 1,500 | 1,495,419 | |||||
Finance Companies - 1.07% | ||||||||
Prudential Funding LLC, | ||||||||
5.15%, 10-11-07 | 2,000 | 1,997,139 | ||||||
Food and Related - 2.68% | ||||||||
Hershey Company (The), | ||||||||
5.3%, 10-15-07 | 3,000 | 2,993,817 | ||||||
Kellogg Co., | ||||||||
5.75%, 10-12-07 | 2,000 | 1,996,486 | ||||||
4,990,303 | ||||||||
Forest and Paper Products - 0.06% | ||||||||
Sonoco Products Co., | ||||||||
5.6%, 10-1-07 | 109 | 109,000 | ||||||
Leisure Time Industry - 1.07% | ||||||||
Walt Disney Company (The), | ||||||||
5.2%, 10-11-07 | 2,000 | 1,997,111 | ||||||
Retail - General Merchandise - 2.14% | ||||||||
Target Corporation, | ||||||||
5.0%, 10-19-07 | $ | 4,000 | 3,990,000 | |||||
Total Commercial Paper - 7.82% | 14,578,972 | |||||||
Municipal Obligation - Taxable - 0.54% | ||||||||
California | ||||||||
County of Sacramento, Taxable Pension Funding Bonds, Series 1995B (Bayerische Landesbank Girozentrale, New York Branch), | ||||||||
5.25%, 10-3-07 (A) | 1,000 | 1,000,000 | ||||||
TOTAL SHORT-TERM SECURITIES - 8.36% | $ | 15,578,972 | ||||||
(Cost: $15,578,972) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.12% | $ | 188,455,923 | ||||||
(Cost: $145,380,386) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.12%) | (2,087,499 | ) | ||||||
NET ASSETS - 100.00% | $ | 186,368,424 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY DIVIDEND INCOME FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $145,380) (Notes 1 and 3) | $ | 188,456 | ||
Receivables: | ||||
Fund shares sold | 587 | |||
Dividends and interest | 342 | |||
Prepaid and other assets | 43 | |||
Total assets | 189,428 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 2,664 | |||
Payable for investment securities purchased | 126 | |||
Accrued management fee (Note 2) | 105 | |||
Accrued service fee (Note 2) | 58 | |||
Accrued shareholder servicing (Note 2) | 46 | |||
Accrued distribution fee (Note 2) | 21 | |||
Due to custodian | 9 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Other | 25 | |||
Total liabilities | 3,060 | |||
Total net assets | $ | 186,368 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 141,205 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 102 | |||
Accumulated undistributed net realized gain on investment transactions | 1,985 | |||
Net unrealized appreciation in value of investments | 43,076 | |||
Net assets applicable to outstanding units of capital | $ | 186,368 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $17.68 | |||
Class B | $17.59 | |||
Class C | $17.61 | |||
Class E | $17.67 | |||
Class I | $17.69 | |||
Class Y | $17.69 | |||
Capital shares outstanding: | ||||
Class A | 7,994 | |||
Class B | 684 | |||
Class C | 1,347 | |||
Class E | 41 | |||
Class I | 6 | |||
Class Y | 477 |
See Notes to Financial Statements.
Statement of Operations
IVY DIVIDEND INCOME FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $12) | $ | 1,574 | ||
Interest and amortization | 450 | |||
Total income | 2,024 | |||
Expenses (Note 2): | ||||
Investment management fee | 579 | |||
Shareholder servicing: | ||||
Class A | 169 | |||
Class B | 27 | |||
Class C | 32 | |||
Class E | 2 | |||
Class I | –– | * | ||
Class Y | 4 | |||
Service fee: | ||||
Class A | 153 | |||
Class B | 14 | |||
Class C | 27 | |||
Class Y | 7 | |||
Distribution fee: | ||||
Class A | 5 | |||
Class B | 42 | |||
Class C | 81 | |||
Class E | –– | * | ||
Accounting services fee | 36 | |||
Audit fees | 11 | |||
Custodian fees | 3 | |||
Legal fees | 2 | |||
Other | 72 | |||
Total expenses | 1,266 | |||
Net investment income | 758 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 580 | |||
Unrealized appreciation in value of investments during the period | 18,519 | |||
Net gain on investments | 19,099 | |||
Net increase in net assets resulting from operations | $ | 19,857 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY DIVIDEND INCOME FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 758 | $ | 1,040 | ||||
Realized net gain on investments | 580 | 2,989 | ||||||
Unrealized appreciation | 18,519 | 7,777 | ||||||
Net increase in net assets resulting from operations | 19,857 | 11,806 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (621 | ) | (963 | ) | ||||
Class B | (3 | ) | (24 | ) | ||||
Class C | (20 | ) | (61 | ) | ||||
Class E | (1 | ) | NA | |||||
Class I | (1 | ) | NA | |||||
Class Y | (33 | ) | (17 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (1,058 | ) | ||||
Class B | (–– | ) | (106 | ) | ||||
Class C | (–– | ) | (209 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (16 | ) | ||||
(679 | ) | (2,454 | ) | |||||
Capital share transactions (Note 5) | 28,301 | 46,283 | ||||||
Total increase | 47,479 | 55,635 | ||||||
NET ASSETS | ||||||||
Beginning of period | 138,889 | 83,254 | ||||||
End of period | $ | 186,368 | $ | 138,889 | ||||
Undistributed net investment income | $ | 102 | $ | 23 | ||||
(1)See "Financial Highlights" on pages 83 - 88.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 6-30-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | $ | 10.00 | |||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income | 0.09 | (2) | 0.17 | (2) | 0.12 | (2) | 0.09 | 0.01 | 0.04 | ||||||||||||||
Net realized and unrealized gain on investments | 1.97 | (2) | 1.49 | (2) | 2.30 | (2) | 1.10 | 0.04 | 1.03 | ||||||||||||||
Total from investment operations | 2.06 | 1.66 | 2.42 | 1.19 | 0.05 | 1.07 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.18 | ) | (0.11 | ) | (0.09 | ) | (0.01 | ) | (0.04 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.08 | ) | (0.37 | ) | (0.14 | ) | (0.13 | ) | (0.01 | ) | (0.04 | ) | |||||||||||
Net asset value, end of period | $ | 17.68 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | |||||||||||
Total return (3) | 13.14 | % | 11.57 | % | 19.99 | % | 10.78 | % | 0.41 | % | 10.70 | % | |||||||||||
Net assets, end of period (in millions) | $141 | $107 | $61 | $32 | $17 | $16 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.37 | %(4) | 1.38 | % | 1.45 | % | 1.59 | % | 2.00 | %(4) | 1.11 | %(4) | |||||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 1.08 | %(4) | 1.16 | % | 0.92 | % | 0.94 | % | 0.20 | %(4) | 1.34 | %(4) | |||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.37 | %(4)(5) | 1.38 | %(5) | 1.45 | %(5) | 1.59 | %(5) | 2.40 | %(4) | 1.81 | %(4) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 1.08 | %(4)(5) | 1.16 | %(5) | 0.92 | %(5) | 0.94 | %(5) | - -0.20 | %(4) | 0.64 | %(4) | |||||||||||
Portfolio turnover rate | 9 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 6-30-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.01 | 0.05 | 0.01 | 0.02 | (0.02 | ) | 0.01 | ||||||||||||||||
Net realized and unrealized gain on investments | 1.96 | 1.47 | 2.28 | 1.06 | 0.04 | 1.03 | |||||||||||||||||
Total from investment operations | 1.97 | 1.52 | 2.29 | 1.08 | 0.02 | 1.04 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.04 | ) | (0.01 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.01 | ) | (0.23 | ) | (0.04 | ) | (0.04 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Net asset value, end of period | $ | 17.59 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | |||||||||||
Total return | 12.57 | % | 10.63 | % | 18.94 | % | 9.76 | % | 0.18 | % | 10.36 | % | |||||||||||
Net assets, end of period (in millions) | $12 | $10 | $7 | $6 | $2 | $2 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.34 | %(2) | 2.30 | % | 2.32 | % | 2.44 | % | 2.99 | %(2) | 2.03 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.10 | %(2) | 0.29 | % | 0.03 | % | 0.11 | % | - -0.81 | %(2) | 0.36 | %(2) | |||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.34 | %(2)(3) | 2.30 | %(3) | 2.32 | %(3) | 2.44 | %(3) | 3.39 | %(2) | 2.73 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 0.10 | %(2)(3) | 0.29 | %(3) | 0.03 | %(3) | 0.11 | %(3) | - -1.21 | %(2) | - -0.34 | %(2) | |||||||||||
Portfolio turnover rate | 9 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 6-30-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.02 | 0.07 | 0.01 | 0.01 | (0.02 | ) | 0.01 | ||||||||||||||||
Net realized and unrealized gain on investments | 1.97 | 1.47 | 2.28 | 1.07 | 0.04 | 1.03 | |||||||||||||||||
Total from investment operations | 1.99 | 1.54 | 2.29 | 1.08 | 0.02 | 1.04 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.06 | ) | (0.01 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.01 | ) | (0.25 | ) | (0.04 | ) | (0.04 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Net asset value, end of period | $ | 17.61 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | |||||||||||
Total return | 12.77 | % | 10.74 | % | 18.95 | % | 9.76 | % | 0.18 | % | 10.38 | % | |||||||||||
Net assets, end of period (in millions) | $24 | $19 | $14 | $10 | $6 | $5 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.15 | %(2) | 2.17 | % | 2.27 | % | 2.42 | % | 2.88 | %(2) | 1.98 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.30 | %(2) | 0.42 | % | 0.08 | % | 0.10 | % | - -0.68 | %(2) | 0.45 | %(2) | |||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.15 | %(2)(3) | 2.17 | %(3) | 2.27 | %(3) | 2.42 | %(3) | 3.28 | %(2) | 2.68 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 0.30 | %(2)(3) | 0.42 | %(3) | 0.08 | %(3) | 0.10 | %(3) | - -1.08 | %(2) | - -0.25 | %(2) | |||||||||||
Portfolio turnover rate | 9 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 15.70 | |||
Income from investment operations: | |||||
Net investment income | 0.01 | (2) | |||
Net realized and unrealized gain on investments | 2.01 | (2) | |||
Total from investment operations | 2.02 | ||||
Less distributions from: | |||||
Net investment income | (0.05 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.05 | ) | |||
Net asset value, end of period | $ | 17.67 | |||
Total return (3) | 12.53 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets | 2.17 | %(4) | |||
Ratio of net investment income to average net assets | 0.39 | %(4) | |||
Portfolio turnover rate | 9 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 15.70 | |||
Income from investment operations: | |||||
Net investment income | 0.08 | (2) | |||
Net realized and unrealized gain on investments | 2.01 | (2) | |||
Total from investment operations | 2.09 | ||||
Less distributions from: | |||||
Net investment income | (0.10 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.10 | ) | |||
Net asset value, end of period | $ | 17.69 | |||
Total return | 12.94 | % | |||
Net assets, end of period (in thousands) | $113 | ||||
Ratio of expenses to average net assets | 1.01 | %(3) | |||
Ratio of net investment income to average net assets | 1.45 | %(3) | |||
Portfolio turnover rate | 9 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND INCOME FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 6-30-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | $ | 10.00 | |||||||||||
Income from investment operations: | |||||||||||||||||||||||
Net investment income | 0.09 | (2) | 0.12 | (2) | 0.15 | (2) | 0.11 | 0.01 | 0.05 | ||||||||||||||
Net realized and unrealized gain on investments | 1.99 | (2) | 1.55 | (2) | 2.29 | (2) | 1.10 | 0.04 | 1.03 | ||||||||||||||
Total from investment operations | 2.08 | 1.67 | 2.44 | 1.21 | 0.05 | 1.08 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.19 | ) | (0.13 | ) | (0.11 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.09 | ) | (0.38 | ) | (0.16 | ) | (0.15 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Net asset value, end of period | $ | 17.69 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | |||||||||||
Total return | 13.25 | % | 11.65 | % | 20.14 | % | 10.94 | % | 0.42 | % | 10.78 | % | |||||||||||
Net assets, end of period (in millions) | $8 | $3 | $1 | $1 | $1 | $1 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.25 | %(3) | 1.29 | % | 1.34 | % | 1.44 | % | 1.91 | %(3) | 1.25 | %(3) | |||||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 1.26 | %(3) | 0.92 | % | 1.03 | % | 1.09 | % | 0.28 | %(3) | 1.08 | %(3) | |||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.25 | %(3)(4) | 1.29 | %(4) | 1.34 | %(4) | 1.44 | %(4) | 2.31 | %(3) | 1.95 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 1.26 | %(3)(4) | 0.92 | %(4) | 1.03 | %(4) | 1.09 | %(4) | - -0.12 | %(3) | 0.38 | %(3) | |||||||||||
Portfolio turnover rate | 9 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY EUROPEAN OPPORTUNITIES FUND
Portfolio Highlights
On September 30, 2007, Ivy European Opportunities Fund had net assets totaling $626,190,655 invested in a diversified portfolio of:
96.49% | Foreign Common Stocks and Rights | |
3.51% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund was invested by country and by industry, respectively, as follows:
United Kingdom | $ | 21.06 | |||
Germany | $ | 17.03 | |||
France | $ | 11.16 | |||
Greece | $ | 9.36 | |||
Other Europe (1) | $ | 6.01 | |||
Spain | $ | 5.68 | |||
Norway | $ | 4.60 | |||
Italy | $ | 4.36 | |||
Netherlands | $ | 3.94 | |||
Other Bahamas/Caribbean (2) | $ | 3.94 | |||
Cash and Cash Equivalents | $ | 3.51 | |||
Ireland | $ | 3.47 | |||
Other (3) | $ | 3.36 | |||
Bermuda | $ | 2.52 |
(1)Includes $0.94 Belgium, $1.73 Luxembourg, $1.83 Sweden and $1.51 Switzerland.
(2)Includes $2.16 British Virgin Islands and $1.78 Cayman Islands.
(3)Includes $2.15 Cyprus and $1.21 Turkey.
Sector Weightings
Financial Services Stocks | $ | 29.44 | |||
Capital Goods Stocks | $ | 12.23 | |||
Utilities Stocks | $ | 11.16 | |||
Energy Stocks | $ | 10.33 | |||
Consumer Durables Stocks | $ | 7.04 | |||
Consumer Nondurables Stocks | $ | 6.54 | |||
Miscellaneous Stocks | $ | 6.02 | |||
Consumer Services Stocks | $ | 4.09 | |||
Multi-Industry Stocks | $ | 3.84 | |||
Cash and Cash Equivalents | $ | 3.51 | |||
Transportation Stocks | $ | 3.33 | |||
Health Care Stocks | $ | 2.47 |
The Investments of Ivy European Opportunities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS AND RIGHTS | Shares | Value | |||||
Belgium - 0.94% | |||||||
Fortis (A) | 168,594 | $ | 4,964,374 | ||||
Fortis N.V., Rights (A)* | 168,594 | 896,713 | |||||
5,861,087 | |||||||
Bermuda - 2.52% | |||||||
SeaDrill Limited (A)* | 702,558 | 15,800,632 | |||||
British Virgin Islands - 2.16% | |||||||
Inmarsat plc (A) | 1,455,414 | 13,541,401 | |||||
Cayman Islands - 1.78% | |||||||
Subsea 7 Inc. (A)* | 402,399 | 11,158,572 | |||||
Cyprus - 2.15% | |||||||
Prosafe ASA (A) | 754,126 | 13,456,419 | |||||
France - 11.16% | |||||||
Altamir Amboise (A) | 484,911 | 6,879,985 | |||||
Altamir Amboise, Rights (A)* | 620,694 | 265,522 | |||||
France Telecom (A) | 401,768 | 13,457,386 | |||||
Peugeot S.A. (A) | 260,452 | 21,496,046 | |||||
Sanofi-Aventis (A) | 182,866 | 15,483,727 | |||||
TOTAL S.A. (A) | 151,219 | 12,295,209 | |||||
69,877,875 | |||||||
Germany - 17.03% | |||||||
Commerzbank Aktiengesellschaft (A) | 423,748 | 17,202,734 | |||||
Continental Aktiengesellschaft (A) | 112,197 | 15,574,695 | |||||
DaimlerChrysler AG, Registered Shares (A) | 69,487 | 7,009,241 | |||||
Deutsche Post AG (A) | 322,362 | 9,358,882 | |||||
Hypo Real Estate Holding AG (A) | 281,994 | 16,084,302 | |||||
Pfleiderer Ag, Registered Shares (A) | 425,982 | 9,937,494 | |||||
RWE Aktiengesellschaft (A) | 143,210 | 17,978,594 | |||||
SAP Aktiengesellschaft (A) | 230,624 | 13,492,995 | |||||
106,638,937 | |||||||
Greece - 9.36% | |||||||
Alpha Bank (A) | 473,719 | 16,509,137 | |||||
Coca-Cola Hellenic Bottling Company S.A. (A) | 264,680 | 15,285,460 | |||||
National Bank of Greece S.A. (A) | 317,983 | 20,268,135 | |||||
Titan Cement Company S.A. (A) | 126,954 | 6,560,500 | |||||
58,623,232 | |||||||
Ireland - 3.47% | |||||||
CRH public limited company (A) | 410,980 | 16,197,988 | |||||
IAWS Group, plc (A) | 250,242 | 5,548,722 | |||||
21,746,710 | |||||||
Italy - 4.36% | |||||||
AZIMUT HOLDING S.P.A. (A) | 567,000 | 8,731,908 | |||||
Eni S.p.A. (A) | 323,515 | 11,989,555 | |||||
UniCredito Italiano S.p.A. (A) | 769,096 | 6,580,125 | |||||
27,301,588 | |||||||
Luxembourg - 1.73% | |||||||
SES GLOBAL S.A., Fiduciary Deposit Receipts (A) | 458,062 | 10,796,910 | |||||
Netherlands - 3.94% | |||||||
Aalberts Industries N.V. (A) | 226,264 | 5,394,536 | |||||
Akzo Nobel N.V. (A) | 155,156 | 12,787,886 | |||||
Univar N.V. (A) | 85,009 | 6,447,588 | |||||
24,630,010 | |||||||
Norway - 4.60% | |||||||
BW Offshore Limited (A)* | 1,049,878 | 4,810,014 | |||||
Eitzen Chemical ASA (A)(B)* | 847,312 | 3,536,197 | |||||
Statoil ASA (A) | 600,698 | 20,473,593 | |||||
28,819,804 | |||||||
Spain - 5.68% | |||||||
Banco Bilbao Vizcaya Argentaria, S.A. (A) | 381,445 | 8,942,029 | |||||
Banco Santander Central Hispano, S.A. (A) | 474,536 | 9,222,897 | |||||
Enagas, S.A. (A) | 297,235 | 7,705,418 | |||||
FOMENTO DE CONSTRUCCIONES Y CONTRATAS, S.A. (A) | 98,848 | 7,999,008 | |||||
Promotora de Informaciones, S.A. (A) | 87,015 | 1,718,487 | |||||
35,587,839 | |||||||
Sweden - 1.83% | |||||||
Investor AB, B Shares (A) | 446,930 | 11,478,238 | |||||
Switzerland - 1.51% | |||||||
UBS AG (A) | 175,672 | 9,445,624 | |||||
Turkey - 1.21% | |||||||
Turkiye Halk Bankasi A.S. (A)(B)* | 933,013 | 7,575,416 | |||||
United Kingdom - 21.06% | |||||||
Admiral Group Plc (A) | 91,833 | 1,691,008 | |||||
Ashtead Group plc (A) | 4,197,645 | 8,931,890 | |||||
Aurora Russia Limited (A)* | 1,110,000 | 1,930,395 | |||||
British Sky Broadcasting Group plc (A) | 920,220 | 13,085,214 | |||||
Evolution Group Plc (The) (A) | 2,389,703 | 5,243,793 | |||||
IP Group plc (A)* | 1,619,705 | 4,498,628 | |||||
Imperial Tobacco Group PLC (A) | 346,887 | 15,905,020 | |||||
Investec plc (A) | 356,195 | 3,731,317 | |||||
Lloyds TSB Group plc (A) | 1,022,122 | 11,345,061 | |||||
MAXjet Airways, Inc. (A)* | 150,000 | 365,210 | |||||
MAXjet Airways, Inc. (A)(B)* | 1,129,023 | 2,748,869 | |||||
Man Group plc (A) | 932,526 | 10,560,462 | |||||
NDS Group plc, ADR* | 100,000 | 4,994,000 | |||||
Premier Brands Foods plc (A) | 918,000 | 4,188,436 | |||||
Regal Petroleum plc (A)* | 667,000 | 2,517,831 | |||||
Regal Petroleum plc (A)(B)* | 1,050,000 | 3,963,602 | |||||
Royal Bank of Scotland Group plc (The) (A) | 1,765,579 | 18,964,911 | |||||
Vodafone Group Plc (A) | 4,765,992 | 17,210,852 | |||||
131,876,499 | |||||||
TOTAL COMMON STOCKS AND RIGHTS - 96.49% | $ | 604,216,793 | |||||
(Cost: $489,543,364) | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | ||||||
Finance Companies - 0.95% | |||||||
Prudential Funding LLC, | |||||||
5.23%, 10-5-07 | $ | 6,000 | 5,996,513 | ||||
Food and Related - 0.32% | |||||||
Archer Daniels Midland Company, | |||||||
5.1%, 11-6-07 | 2,000 | 1,989,800 | |||||
Mining - 0.56% | |||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | |||||||
5%, 10-1-07 | 3,493 | 3,493,000 | |||||
TOTAL SHORT-TERM SECURITIES - 1.83% | $ | 11,479,313 | |||||
(Cost: $11,479,313) | |||||||
TOTAL INVESTMENT SECURITIES - 98.32% | $ | 615,696,106 | |||||
(Cost: $501,022,677) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.68% | 10,494,549 | ||||||
NET ASSETS - 100.00% | $ | 626,190,655 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $17,824,084, or 2.85% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY EUROPEAN OPPORTUNITIES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $501,023) (Notes 1 and 3) | $ | 615,696 | ||
Receivables: | ||||
Investment securities sold | 10,447 | |||
Fund shares sold | 2,233 | |||
Dividends and interest | 1,450 | |||
Prepaid and other assets | 58 | |||
Total assets | 629,884 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 1,790 | |||
Payable to Fund shareholders | 668 | |||
Accrued management fee (Note 2) | 444 | |||
Accrued service fee (Note 2) | 204 | |||
Due to custodian | 195 | |||
Accrued shareholder servicing (Note 2) | 181 | |||
Accrued distribution fee (Note 2) | 77 | |||
Accrued accounting services fee (Note 2) | 9 | |||
Accrued administrative fee (Note 2) | 5 | |||
Other | 120 | |||
Total liabilities | 3,693 | |||
Total net assets | $ | 626,191 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 454,785 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 4,080 | |||
Accumulated undistributed net realized gain on investment transactions | 52,587 | |||
Net unrealized appreciation in value of investments | 114,739 | |||
Net assets applicable to outstanding units of capital | $ | 626,191 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $43.89 | |||
Class B | $42.18 | |||
Class C | $42.35 | |||
Class E | $43.95 | |||
Class I | $44.09 | |||
Class Y | $43.98 | |||
Advisor Class | $44.40 | |||
Capital shares outstanding: | ||||
Class A | 10,457 | |||
Class B | 1,359 | |||
Class C | 1,686 | |||
Class E | 2 | |||
Class I | 684 | |||
Class Y | 136 | |||
Advisor Class | 51 |
Statement of Operations
IVY EUROPEAN OPPORTUNITIES FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $1,006) | $ | 9,660 | ||
Interest and amortization | 520 | |||
Total income | 10,180 | |||
Expenses (Note 2): | ||||
Investment management fee | 2,648 | |||
Shareholder servicing: | ||||
Class A | 638 | |||
Class B | 85 | |||
Class C | 76 | |||
Class E | –– | * | ||
Class I | 12 | |||
Class Y | 4 | |||
Advisor Class | 1 | |||
Service fee: | ||||
Class A | 527 | |||
Class B | 73 | |||
Class C | 91 | |||
Class Y | 7 | |||
Distribution fee: | ||||
Class A | 21 | |||
Class B | 210 | |||
Class C | 263 | |||
Class E | –– | * | ||
Custodian fees | 116 | |||
Accounting services fee | 54 | |||
Administrative fee | 30 | |||
Audit fees | 23 | |||
Legal fees | 6 | |||
Other | 149 | |||
Total expenses | 5,034 | |||
Net investment income | 5,146 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 42,241 | |||
Realized net loss on foreign currency transactions | (185 | ) | ||
Realized net gain on investments | 42,056 | |||
Unrealized depreciation in value of investments during the period | (4,108 | ) | ||
Net gain on investments | 37,948 | |||
Net increase in net assets resulting from operations | $ | 43,094 | ||
*Not shown due to rounding.
Statement of Changes in Net Assets
IVY EUROPEAN OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 5,146 | $ | 3,038 | ||||
Realized net gain on investments | 42,056 | 42,154 | ||||||
Unrealized appreciation (depreciation) | (4,108 | ) | 38,366 | |||||
Net increase in net assets resulting from operations | 43,094 | 83,558 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (3,582 | ) | ||||
Class B | (–– | ) | (171 | ) | ||||
Class C | (–– | ) | (263 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (69 | ) | ||||
Advisor Class | (–– | ) | (33 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Advisor Class | (–– | ) | (–– | ) | ||||
(–– | ) | (4,118 | ) | |||||
Capital share transactions (Note 5) | 68,368 | 99,354 | ||||||
Total increase | 111,462 | 178,794 | ||||||
NET ASSETS | ||||||||
Beginning of period | 514,729 | 335,935 | ||||||
End of period | $ | 626,191 | $ | 514,729 | ||||
Undistributed net investment income (loss) | $ | 4,080 | $ | (881 | ) | |||
(1)See "Financial Highlights" on pages 98 - 104.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||
Net asset value, beginning of period | $ | 40.58 | $ | 33.58 | $ | 28.31 | $ | 22.30 | $ | 19.89 | $ | 13.20 | $ | 13.65 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.40 | 0.31 | 0.10 | (0.03 | ) | (0.03 | ) | 0.02 | 0.01 | (1) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.91 | 7.11 | 5.37 | 6.05 | 2.44 | 6.71 | (0.46 | )(2) | |||||||||||||||
| |||||||||||||||||||||||
Total from investment operations | 3.31 | 7.42 | 5.47 | 6.02 | 2.41 | 6.73 | (0.45 | ) | |||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.42 | ) | (0.20 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.42 | ) | (0.20 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 43.89 | $ | 40.58 | $ | 33.58 | $ | 28.31 | $ | 22.30 | $ | 19.89 | $ | 13.20 | |||||||||
Total return (3) | 8.18 | % | 22.17 | % | 19.41 | % | 27.02 | % | 12.12 | % | 51.02 | % | - -3.30 | %(2) | |||||||||
Net assets, end of period (in millions) | $459 | $389 | $235 | $170 | $79 | $38 | $20 | ||||||||||||||||
Ratio of expenses to average net assets | 1.57 | %(4) | 1.64 | % | 1.72 | % | 1.79 | % | 1.72 | %(4) | 2.26 | % | 2.15 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 1.91 | %(4) | 0.91 | % | 0.35 | % | - -0.07 | % | - -0.61 | %(4) | 0.18 | % | 0.06 | % | |||||||||
Portfolio turnover rate | 26 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % | 69 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||
Net asset value, beginning of period | $ | 39.14 | $ | 32.40 | $ | 27.32 | $ | 21.66 | $ | 19.36 | $ | 12.93 | $ | 13.54 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.25 | 0.09 | (0.11 | ) | (0.17 | ) | (0.09 | ) | (0.07 | ) | (0.10 | )(1) | |||||||||||
Net realized and unrealized gain (loss) on investments | 2.79 | 6.78 | 5.19 | 5.83 | 2.39 | 6.50 | (0.51 | )(1) | |||||||||||||||
Total from investment operations | 3.04 | 6.87 | 5.08 | 5.66 | 2.30 | 6.43 | (0.61 | ) | |||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.13 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.13 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 42.18 | $ | 39.14 | $ | 32.40 | $ | 27.32 | $ | 21.66 | $ | 19.36 | $ | 12.93 | |||||||||
Total return | 7.77 | % | 21.24 | % | 18.59 | % | 26.13 | % | 11.88 | % | 49.73 | % | -4.51 | % | |||||||||
Net assets, end of period (in millions) | $57 | $52 | $44 | $40 | $32 | $29 | $25 | ||||||||||||||||
Ratio of expenses to average net assets | 2.34 | %(2) | 2.40 | % | 2.45 | % | 2.53 | % | 2.58 | %(2) | 3.00 | % | 2.92 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 1.16 | %(2) | 0.27 | % | - -0.30 | % | - -0.73 | % | - -1.57 | %(2) | - -0.47 | % | - -0.70 | % | |||||||||
Portfolio turnover rate | 26 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % | 69 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||
Net asset value, beginning of period | $ | 39.28 | $ | 32.52 | $ | 27.42 | $ | 21.74 | $ | 19.43 | $ | 12.98 | $ | 13.59 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.27 | 0.12 | (0.09 | ) | (0.14 | ) | (0.08 | ) | (0.07 | ) | (0.10 | )(1) | |||||||||||
Net realized and unrealized gain (loss) on investments | 2.80 | 6.81 | 5.19 | 5.82 | 2.39 | 6.52 | (0.51 | )(1) | |||||||||||||||
| |||||||||||||||||||||||
Total from investment operations | 3.07 | 6.93 | 5.10 | 5.68 | 2.31 | 6.45 | (0.61 | ) | |||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 42.35 | $ | 39.28 | $ | 32.52 | $ | 27.42 | $ | 21.74 | $ | 19.43 | $ | 12.98 | |||||||||
Total return | 7.82 | % | 21.33 | % | 18.60 | % | 26.13 | % | 11.89 | % | 49.69 | % | -4.49 | % | |||||||||
Net assets, end of period (in millions) | $72 | $65 | $51 | $45 | $27 | $23 | $19 | ||||||||||||||||
Ratio of expenses to average net assets | 2.24 | %(2) | 2.32 | % | 2.42 | % | 2.51 | % | 2.56 | %(2) | 2.98 | % | 2.92 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 1.27 | %(2) | 0.32 | % | - -0.29 | % | - -0.79 | % | - -1.54 | %(2) | - -0.43 | % | - -0.70 | % | |||||||||
Portfolio turnover rate | 26 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % | 69 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 40.58 | |||
Income from investment operations: | |||||
Net investment income | 0.50 | (2) | |||
Net realized and unrealized gain on investments | 2.87 | (2) | |||
Total from investment operations | 3.37 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 43.95 | |||
Total return (3) | 8.01 | % | |||
Net assets, end of period (in thousands) | $108 | ||||
Ratio of expenses to average net assets | 1.30 | %(4) | |||
Ratio of net investment income to average net assets | 2.26 | %(4) | |||
Portfolio turnover rate | 26 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 40.61 | |||
Income from investment operations: | |||||
Net investment income | 0.29 | (2) | |||
Net realized and unrealized gain on investments | 3.19 | (2) | |||
Total from investment operations | 3.48 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 44.09 | |||
Total return | 8.25 | % | |||
Net assets, end of period (in millions) | $30 | ||||
Ratio of expenses to average net assets | 1.17 | %(3) | |||
Ratio of net investment income to average net assets | 1.32 | %(3) | |||
Portfolio turnover rate | 26 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 40.61 | $ | 33.60 | $ | 28.33 | $ | 22.30 | $ | 19.89 | $ | 14.88 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.38 | 0.44 | 0.18 | 0.09 | (0.02 | ) | (0.04 | ) | |||||||||||||||
Net realized and unrealized gain on investments | 2.99 | 7.05 | 5.34 | 6.00 | 2.43 | 5.12 | |||||||||||||||||
Total from investment operations | 3.37 | 7.49 | 5.52 | 6.09 | 2.41 | 5.08 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.48 | ) | (0.25 | ) | (0.06 | ) | (0.00 | ) | (0.07 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.48 | ) | (0.25 | ) | (0.06 | ) | (0.00 | ) | (0.07 | ) | |||||||||||
Net asset value, end of period | $ | 43.98 | $ | 40.61 | $ | 33.60 | $ | 28.33 | $ | 22.30 | $ | 19.89 | |||||||||||
Total return | 8.30 | % | 22.38 | % | 19.60 | % | 27.32 | % | 12.12 | % | 34.14 | % | |||||||||||
Net assets, end of period (in millions) | $6 | $7 | $4 | $4 | $4 | $3 | |||||||||||||||||
Ratio of expenses to average net assets | 1.41 | %(2) | 1.44 | % | 1.55 | % | 1.61 | % | 1.75 | %(2) | 1.51 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | 2.08 | %(2) | 1.14 | % | 0.60 | % | 0.53 | % | - -0.71 | %(2) | - -0.58 | %(2) | |||||||||||
Portfolio turnover rate | 26 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Advisor Class Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||
Net asset value, beginning of period | $ | 40.96 | $ | 33.88 | $ | 28.55 | $ | 22.48 | $ | 20.03 | $ | 13.34 | $ | 13.80 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.66 | 0.94 | 0.35 | (2) | 0.21 | (0.01 | ) | 0.24 | 0.06 | (2) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.78 | 6.73 | 5.32 | (2) | 5.99 | 2.46 | 6.58 | (0.52 | ) | ||||||||||||||
Total from investment operations | 3.44 | 7.67 | 5.67 | 6.20 | 2.45 | 6.82 | (0.46 | ) | |||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.59 | ) | (0.34 | ) | (0.13 | ) | (0.00 | ) | (0.13 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.59 | ) | (0.34 | ) | (0.13 | ) | (0.00 | ) | (0.13 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 44.40 | $ | 40.96 | $ | 33.88 | $ | 28.55 | $ | 22.48 | $ | 20.03 | $ | 13.34 | |||||||||
Total return | 8.40 | % | 22.76 | % | 20.00 | % | 27.64 | % | 12.23 | % | 51.12 | % | - -3.33 | % | |||||||||
Net assets, end of period (in millions) | $2 | $2 | $2 | $4 | $4 | $4 | $6 | ||||||||||||||||
Ratio of expenses to average net assets | 1.15 | %(3) | 1.19 | % | 1.25 | % | 1.36 | % | 1.41 | %(3) | 1.96 | % | 1.81 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 2.42 | %(3) | 1.60 | % | 1.13 | % | 0.51 | % | - -0.41 | %(3) | 1.02 | % | 0.40 | % | |||||||||
Portfolio turnover rate | 26 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % | 69 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF
IVY GLOBAL NATURAL RESOURCES FUND
Portfolio Highlights
On September 30, 2007, Ivy Global Natural Resources Fund had net assets totaling
$7,585,302,492 invested in a diversified portfolio of:
57.89% | Foreign Common Stocks | |
40.61% | Domestic Common Stocks | |
1.50% | Cash and Cash Equivalents, Corporate Debt Securities and Unrealized Loss Open Forwardon Open Forward Currency Contracts |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
North America | $ | 53.89 | |||
United States | $ | 40.61 | |||
Canada | $ | 11.70 | |||
Mexico | $ | 1.58 | |||
South America (1) | $ | 12.93 | |||
Europe | $ | 11.51 | |||
Other Europe (2) | $ | 4.17 | |||
France | $ | 3.03 | |||
Germany | $ | 2.23 | |||
Luxembourg | $ | 2.08 | |||
Pacific Basin | $ | 10.24 | |||
China | $ | 3.32 | |||
Other Pacific Basin (3) | $ | 3.19 | |||
Papua New Guinea | $ | 1.92 | |||
Thailand | $ | 1.81 | |||
Other | $ | 5.19 | |||
South Africa | $ | 5.12 | |||
Cyprus | $ | 0.07 | |||
Bahamas/Caribbean | $ | 4.82 | |||
Cayman Islands | $ | 4.08 | |||
Bermuda | $ | 0.74 | |||
Cash and Cash Equivalents and Unrealized Loss on Open Forward Currency Contracts | $ | 1.42 |
(1)Includes $12.93 Brazil.
(2)Includes $0.81 Norway, $1.64 Russia, $0.49 Switzerland and $1.23 United Kingdom.
(3)Includes $0.15 Australia, $0.27 Hong Kong, $0.83 Japan, $0.23 Malaysia, $0.15 Philippines,
$0.42 Singapore and $1.14 Taiwan.
Sector Weightings
Energy Stocks | $ | 43.18 | |||
Raw Materials Stocks | $ | 27.95 | |||
Capital Goods Stocks | $ | 7.73 | |||
Multi-Industry Stocks | $ | 6.04 | |||
Miscellaneous Stocks | $ | 3.95 | |||
Shelter Stocks | $ | 3.55 | |||
Utilities Stocks | $ | 3.08 | |||
Technology Stocks | $ | 3.02 | |||
Cash and Cash Equivalents, Corporate Debt Securities and Unrealized Loss on Open Forward Currency Contracts | $ | 1.50 |
The Investments of Ivy Global Natural Resources Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Australia - 0.15% | ||||||||
Sino Gold Mining Limited (A)* | 1,657,600 | $ | 11,060,963 | |||||
Bermuda - 0.74% | ||||||||
Aquarius Platinum Limited (A) | 500,000 | 17,595,548 | ||||||
Weatherford International Ltd.* | 575,000 | 38,628,500 | ||||||
56,224,048 | ||||||||
Brazil - 12.85% | ||||||||
Aracruz Celulose S.A., ADR | 500,000 | 36,795,000 | ||||||
Bradespar S.A. (A) | 1,700,000 | 96,463,175 | ||||||
Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais S.A. (A)* | 600,000 | 3,891,980 | ||||||
CPFL Energia S.A. (A) | 850,000 | 16,554,828 | ||||||
CPFL Energia S.A., ADR | 275,000 | 16,013,250 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (A)* | 750,000 | 18,707,038 | ||||||
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP, ADR | 850,000 | 41,990,000 | ||||||
Companhia Energetica de Minas Gerais - CEMIG, ADR | 3,000,000 | 63,990,000 | ||||||
Companhia Vale do Rio Doce, ADR | 9,500,000 | 322,335,000 | ||||||
Cosan S.A. Industria e Comercio, Class A* | 2,500,000 | 32,250,000 | ||||||
Suzano Bahia Sul Papel E Celulose S.A. (A) | 9,917,200 | 157,658,051 | ||||||
Usinas Siderurgicas de Minas Gerais S.A. - USIMINA S (A) | 1,200,000 | 93,617,021 | ||||||
Votorantim Celulose e Papel S.A. (A) | 850,000 | 24,405,619 | ||||||
Votorantim Celulose e Papel S.A., ADR | 1,750,000 | 50,085,000 | ||||||
974,755,962 | ||||||||
Canada - 11.70% | ||||||||
ARISE Technologies Corporation (A)* | 5,000,000 | 8,445,182 | ||||||
Agnico-Eagle Mines Limited (A) | 3,000,000 | 148,786,005 | ||||||
Canadian Oil Sands Trust (A) | 1,000,000 | 33,177,500 | ||||||
Eldorado Gold Corporation (A)* | 2,854,900 | 17,623,371 | ||||||
Ferus Gas Industries Trust (A)(B)(C)* | 615,000 | 2,164,078 | ||||||
Goldcorp Inc. (A) | 5,000,000 | 152,817,574 | ||||||
IAMGOLD Corporation (A) | 10,000,000 | 86,965,264 | ||||||
Kinross Gold Corporation (A)* | 5,500,000 | 82,169,607 | ||||||
MGM Energy Corp. (A)* | 5,060,500 | 13,635,088 | ||||||
OPTI Canada Inc. (A)* | 1,300,000 | 24,336,199 | ||||||
Pason Systems Inc. (A) | 2,000,000 | 29,920,072 | ||||||
Progress Energy Trust (A) | 900,000 | 10,885,236 | ||||||
Progress Energy Trust (A)(B) | 826,900 | 10,001,113 | ||||||
Savanna Energy Services Corp. (A)* | 800,000 | 13,673,151 | ||||||
Silver Wheaton Corp. (A)* | 6,000,000 | 83,667,622 | ||||||
Suncor Energy Inc. (A) | 500,000 | 47,484,040 | ||||||
Talisman Energy Inc. (A) | 1,000,000 | 19,635,047 | ||||||
Trican Well Service Ltd. (A) | 3,500,000 | 71,256,221 | ||||||
UTS Energy Corporation (A)* | 2,000,000 | 11,099,382 | ||||||
Uranium One Inc. (A)* | 1,000,000 | 13,220,731 | ||||||
Xtreme Coil Drilling Corp. (A)(B)* | 650,000 | 6,691,801 | ||||||
887,654,284 | ||||||||
Cayman Islands - 4.08% | ||||||||
Neo-Neon Holdings Limited (A)* | 6,972,200 | 9,058,474 | ||||||
Noble Corporation | 4,700,000 | 230,535,000 | ||||||
Suntech Power Holdings Co., Ltd., ADR* | 1,750,000 | 69,825,000 | ||||||
309,418,474 | ||||||||
China - 3.32% | ||||||||
LDK Solar Co., Ltd., ADR* | 1,408,300 | 97,031,870 | ||||||
Xinao Gas Holdings Limited (A) | 16,123,000 | 32,893,712 | ||||||
Yingli Green Energy Holding Company Limited* | 4,670,200 | 121,752,114 | ||||||
251,677,696 | ||||||||
Cyprus - 0.07% | ||||||||
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(C)* | 3,335,000 | 5,002,500 | ||||||
| | |||||||
France - 3.03% | ||||||||
Schneider Electric SA (A) | 550,000 | 69,486,232 | ||||||
THEOLIA (A)* | 1,000,000 | 26,665,146 | ||||||
TOTAL S.A. (A) | 750,000 | 60,980,479 | ||||||
Vallourec (A) | 252,616 | 72,763,667 | ||||||
229,895,524 | ||||||||
Germany - 2.23% | ||||||||
Q-Cells AG (A)* | 700,000 | 71,667,926 | ||||||
SGL Carbon AG (A)* | 500,000 | 28,968,045 | ||||||
Siemens AG (A) | 500,000 | 68,623,537 | ||||||
169,259,508 | ||||||||
Hong Kong - 0.27% | ||||||||
Guangdong Investment Limited (A) | 30,000,000 | 20,568,959 | ||||||
Japan - 0.83% | ||||||||
DOWA HOLDINGS Co., Ltd. (A) | 2,500,000 | 31,667,610 | ||||||
Sharp Corporation (A) | 1,000,000 | 18,151,743 | ||||||
Sumitomo Electric Industries, Ltd. (A) | 850,000 | 13,541,984 | ||||||
63,361,337 | ||||||||
Luxembourg - 2.08% | ||||||||
Tenaris S.A., ADR | 3,000,000 | 157,860,000 | ||||||
Malaysia - 0.23% | ||||||||
IOI Corporation Berhad (A) | 1,997,500 | 3,546,552 | ||||||
Kuala Lumpur Kepong Berhad (A) | 3,500,000 | 13,558,327 | ||||||
17,104,879 | ||||||||
Mexico - 1.58% | ||||||||
Cemex, S.A. de C.V., ADR* | 4,000,000 | 119,680,000 | ||||||
Norway - 0.81% | ||||||||
Statoil ASA (A) | 1,800,000 | 61,349,409 | ||||||
Papua New Guinea - 1.92% | ||||||||
Lihir Gold Limited (A)* | 37,000,000 | 129,358,002 | ||||||
Lihir Gold Limited, ADR* | 450,040 | 16,169,937 | ||||||
145,527,939 | ||||||||
Philippines - 0.15% | ||||||||
PNOC Energy Development Corporation (A) | 80,000,000 | 11,365,150 | ||||||
Russia - 1.64% | ||||||||
OAO LUKOIL, ADR | 1,500,000 | 124,650,000 | ||||||
Singapore - 0.42% | ||||||||
Bio-Treat Technology Limited (A) | 10,000,000 | 6,125,883 | ||||||
China Energy Limited (A)* | 25,000,000 | 25,580,613 | ||||||
31,706,496 | ||||||||
South Africa - 5.12% | ||||||||
Anglo Platinum Limited (A) | 325,000 | 49,184,242 | ||||||
Gold Fields Limited (A) | 5,500,000 | 99,113,843 | ||||||
Gold Fields Limited, ADR | 8,000,000 | 144,720,000 | ||||||
Impala Platinum Holdings Limited (A) | 2,296,200 | 79,991,871 | ||||||
Mvelaphanda Resources Limited (A)* | 2,000,000 | 15,673,581 | ||||||
388,683,537 | ||||||||
Switzerland - 0.49% | ||||||||
Givaudan SA, Registered Shares (A) | 40,000 | 36,968,005 | ||||||
Taiwan - 1.14% | ||||||||
Everlight Electronics Co., Ltd. (A)* | 7,724,406 | 33,728,447 | ||||||
Motech Industries Inc. (A) | 3,395,013 | 36,930,583 | ||||||
Motech Industries Inc., GDR (B) | 1,481,681 | 16,117,578 | ||||||
86,776,608 | ||||||||
Thailand - 1.81% | ||||||||
PTT Public Company Limited (A) | 9,000,000 | 88,227,571 | ||||||
Thai Oil Public Company Limited (A) | 19,440,000 | 48,777,243 | ||||||
137,004,814 | ||||||||
United Kingdom - 1.23% | ||||||||
BG Group plc (A) | 2,511,700 | 43,475,288 | ||||||
Randgold Resources Limited, ADR | 1,500,000 | 49,815,000 | ||||||
93,290,288 | ||||||||
United States - 40.61% | ||||||||
Allegheny Technologies Incorporated | 850,000 | 93,457,500 | ||||||
Andersons, Inc. (The) | 734,000 | 35,228,330 | ||||||
Arch Coal, Inc. | 2,472,900 | 83,435,646 | ||||||
Bunge Limited | 560,000 | 60,172,000 | ||||||
Burlington Northern Santa Fe Corporation | 400,000 | 32,468,000 | ||||||
CONSOL Energy Inc. | 5,684,300 | 264,888,380 | ||||||
Cameron International Corporation* | 450,000 | 41,530,500 | ||||||
Celanese Corporation, Series A | 750,000 | 29,235,000 | ||||||
Chevron Corporation | 350,000 | 32,753,000 | ||||||
ConocoPhillips | 1,500,000 | 131,655,000 | ||||||
Cytec Industries Inc. | 400,000 | 27,356,000 | ||||||
Diamond Offshore Drilling, Inc. | 1,785,000 | 202,222,650 | ||||||
First Solar, Inc.* | 115,000 | 13,527,450 | ||||||
Foundation Coal Holdings, Inc. | 500,000 | 19,600,000 | ||||||
General Electric Company | 1,750,000 | 72,450,000 | ||||||
GlobalSanteFe Corporation | 1,150,000 | 87,423,000 | ||||||
Halliburton Company | 6,500,000 | 249,600,000 | ||||||
Helix Energy Solutions Group, Inc.* | 2,000,000 | 84,920,000 | ||||||
Konarka Technologies, Inc. (B)(C)* | 3,500,000 | 10,850,000 | ||||||
MEMC Electronic Materials, Inc.* | 2,100,000 | 123,606,000 | ||||||
Oceaneering International, Inc.* | 1,000,000 | 75,800,000 | ||||||
Peabody Energy Corporation | 4,500,000 | 215,415,000 | ||||||
Praxair, Inc. | 1,250,000 | 104,700,000 | ||||||
Smith International, Inc. | 2,500,000 | 178,500,000 | ||||||
Sunoco, Inc. | 1,900,000 | 134,482,000 | ||||||
SunPower Corporation, Class A* | 400,000 | 33,094,000 | ||||||
Superior Energy Services, Inc.* | 1,750,000 | 62,020,000 | ||||||
Tesoro Corporation | 3,250,000 | 149,565,000 | ||||||
Ultra Petroleum Corp.* | 900,000 | 55,836,000 | ||||||
Valero Energy Corporation | 4,750,000 | 319,105,000 | ||||||
W-H Energy Services, Inc.* | 750,000 | 55,312,500 | ||||||
3,080,207,956 | ||||||||
TOTAL COMMON STOCKS - 98.50% | $ | 7,471,054,336 | ||||||
(Cost: $5,588,434,445) | ||||||||
CORPORATE DEBT SECURITIES - 0.08% | Principal Amount in Thousands | |||||||
---|---|---|---|---|---|---|---|---|
Brazil | ||||||||
Bahia Sul Celulose S.A., | ||||||||
0.0%, 12-1-12 (B)(D) | BRL10,692 | $ | 6,335,526 | |||||
(Cost: $5,244,566) | ||||||||
UNREALIZED LOSS ON OPEN FORWARD CURRENCY CONTRACTS - (0.64%) | Face Amount in Thousands | |||||||
Canadian Dollar, 10-3-07 (D) | CAD71,000 | (4,090,134 | ) | |||||
Canadian Dollar, 10-10-07 (D) | 62,000 | (3,582,794 | ) | |||||
Canadian Dollar, 10-17-07 (D) | 87,500 | (3,243,083 | ) | |||||
Canadian Dollar, 10-24-07 (D) | 85,000 | (4,523,286 | ) | |||||
Canadian Dollar, 10-31-07 (D) | 73,000 | (4,674,761 | ) | |||||
Canadian Dollar, 11-7-07 (D) | 75,700 | (4,918,438 | ) | |||||
Canadian Dollar, 11-14-07 (D) | 70,700 | (2,890,816 | ) | |||||
Canadian Dollar, 11-28-07 (D) | 61,000 | (3,128,062 | ) | |||||
Canadian Dollar, 12-5-07 (D) | 77,500 | (2,895,842 | ) | |||||
Canadian Dollar, 12-12-07 (D) | 50,000 | (2,442,243 | ) | |||||
Canadian Dollar, 12-19-07 (D) | 77,500 | (2,055,624 | ) | |||||
Canadian Dollar, 12-28-07 (D) | 77,500 | (555,448 | ) | |||||
South African Rand, 10-3-07 (D) | ZAR157,000 | (943,535 | ) | |||||
South African Rand, 10-10-07 (D) | 9,500 | (464,551 | ) | |||||
South African Rand, 10-11-07 (D) | 103,000 | (480,050 | ) | |||||
South African Rand, 10-17-07 (D) | 120,000 | (354,897 | ) | |||||
South African Rand, 10-24-07 (D) | 120,000 | (353,647 | ) | |||||
South African Rand, 10-31-07 (D) | 125,150 | (832,589 | ) | |||||
South African Rand, 11-7-07 (D) | 99,000 | (480,708 | ) | |||||
South African Rand, 11-14-07 (D) | 131,150 | (638,638 | ) | |||||
South African Rand, 11-21-07 (D) | 130,000 | (1,152,098 | ) | |||||
South African Rand, 11-28-07 (D) | 130,000 | (897,417 | ) | |||||
South African Rand, 12-5-07 (D) | 130,000 | (1,042,873 | ) | |||||
South African Rand, 12-12-07 (D) | 146,000 | (963,002 | ) | |||||
South African Rand, 12-20-07 (D) | 119,000 | (701,268 | ) | |||||
South African Rand, 12-21-07 (D) | 127,000 | (273,366 | ) | |||||
$ | (48,579,170 | ) | ||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
---|---|---|---|---|---|---|---|---|
Commercial Paper | ||||||||
Banks - 0.32% | ||||||||
Lloyds TSB Bank PLC: | ||||||||
4.97%, 10-17-07 | $ | 7,000 | $ | 6,984,538 | ||||
5.59%, 10-17-07 | 17,750 | 17,705,901 | ||||||
24,690,439 | ||||||||
Capital Equipment - 0.22% | ||||||||
Deere (John) Capital Corporation: | ||||||||
5.26%, 10-5-07 | 6,000 | 5,996,493 | ||||||
5.18%, 11-20-07 | 10,867 | 10,788,818 | ||||||
16,785,311 | ||||||||
Chemicals - Specialty - 0.02% | ||||||||
Air Products and Chemicals, Inc., | ||||||||
5.05%, 10-1-07 | 1,469 | 1,469,000 | ||||||
Finance Companies - 0.16% | ||||||||
Unilever Capital Corporation, | ||||||||
5.32%, 10-5-07 | 12,000 | 11,992,907 | ||||||
Food and Related - 0.20% | ||||||||
Archer Daniels Midland Company, | ||||||||
5.1%, 11-6-07 | 15,000 | 14,923,500 | ||||||
Household - General Products - 0.20% | ||||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | ||||||||
5.2%, 10-9-07 | 15,000 | 14,982,667 | ||||||
Mining - 0.17% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited): | ||||||||
5.0%, 10-1-07 | 10,649 | 10,649,000 | ||||||
5.1%, 10-1-07 | 2,104 | 2,104,000 | ||||||
12,753,000 | ||||||||
Multiple Industry - 0.05% | ||||||||
Honeywell International Inc., | ||||||||
4.76%, 11-21-07 | 4,000 | 3,973,026 | ||||||
Security and Commodity Brokers - 0.06% | ||||||||
UBS Finance Delaware LLC (UBS AG), | ||||||||
5.52%, 10-15-07 | 5,000 | 4,989,267 | ||||||
Total Commercial Paper - 1.40% | 106,559,117 | |||||||
Municipal Obligation - Taxable - 0.02% | ||||||||
Washington | ||||||||
Washington State Housing Finance Commission, Taxable Variable Rate Demand Multifamily Revenue Bonds (Seaport Landing Retirement Project), Series 2005B (Bank of America), | ||||||||
5.06%, 10-1-07 (E) | 1,320 | 1,320,000 | ||||||
TOTAL SHORT-TERM SECURITIES - 1.42% | $ | 107,879,117 | ||||||
(Cost: $107,879,117) | ||||||||
TOTAL INVESTMENT SECURITIES - 99.36% | $ | 7,536,689,809 | ||||||
(Cost: $5,701,558,128) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.64% | 48,612,683 | |||||||
NET ASSETS - 100.00% | $ | 7,585,302,492 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transacations exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $57,162,596, or 0.75% of net assets. |
(C)Securities valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. |
(D)Principal amounts are denominated in the indicated foreign currency, were applicable (BRL - Brazilian Real, CAD - Canadian Dollar, ZAR - South African Rand). |
(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY GLOBAL NATURAL RESOURCES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $5,701,558) (Notes 1 and 3) | $ | 7,536,690 | ||
Cash denominated in foreign currencies (cost - $843) | 842 | |||
Receivables: | ||||
Fund shares sold | 57,603 | |||
Investment securities sold | 46,898 | |||
Dividends and interest | 10,581 | |||
Prepaid and other assets | 109 | |||
Total assets | 7,652,723 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 50,736 | |||
Payable to Fund shareholders | 4,684 | |||
Accrued management fee (Note 2) | 4,665 | |||
Accrued service fee (Note 2) | 3,022 | |||
Accrued shareholder servicing (Note 2) | 1,531 | |||
Accrued distribution fee (Note 2) | 1,161 | |||
Due to custodian | 404 | |||
Accrued accounting services fee (Note 2) | 15 | |||
Accrued administrative fee (Note 2) | 8 | |||
Other | 1,195 | |||
Total liabilities | 67,421 | |||
Total net assets | $ | 7,585,302 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 5,043,067 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 12,828 | |||
Accumulated undistributed net realized gain on investment transactions | 694,251 | |||
Net unrealized appreciation in value of investments | 1,835,156 | |||
Net assets applicable to outstanding units of capital | $ | 7,585,302 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $40.23 | |||
Class B | $37.68 | |||
Class C | $36.95 | |||
Class E | $40.12 | |||
Class I | $40.63 | |||
Class R | $40.10 | |||
Class Y | $40.46 | |||
Advisor Class | $40.05 | |||
Capital shares outstanding: | ||||
Class A | 121,888 | |||
Class B | 9,404 | |||
Class C | 44,417 | |||
Class E | 39 | |||
Class I | 1,087 | |||
Class R | 292 | |||
Class Y | 15,523 | |||
Advisor Class | 10 |
See Notes to Financial Statements.
Statement of Operations
IVY GLOBAL NATURAL RESOURCES FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $3,370) | $ | 47,675 | ||
Interest and amortization (net of foreign withholding taxes of $37) | 9,513 | |||
Total income | 57,188 | |||
Expenses (Note 2): | ||||
Investment management fee | 25,378 | |||
Service fee: | ||||
Class A | 4,968 | |||
Class B | 413 | |||
Class C | 1,735 | |||
Class R | 9 | |||
Class Y | 537 | |||
Distribution fee: | ||||
Class A | 219 | |||
Class B | 1,174 | |||
Class C | 5,204 | |||
Class E | 1 | |||
Class R | 9 | |||
Shareholder servicing: | ||||
Class A | 3,427 | |||
Class B | 315 | |||
Class C | 857 | |||
Class E | 5 | |||
Class I | 18 | |||
Class R | 7 | |||
Class Y | 334 | |||
Advisor Class | –– | * | ||
Custodian fees | 796 | |||
Accounting services fee | 87 | |||
Administrative fee | 50 | |||
Audit fees | 28 | |||
Legal fees | 27 | |||
Other | 1,084 | |||
Total | 46,682 | |||
Less expenses in excess of voluntary limit (Note 2) | (132 | ) | ||
Total expenses | 46,550 | |||
Net investment income | 10,638 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | $ | 619,676 | ||
Realized net loss on forward currency contracts | (36,329 | ) | ||
Realized net loss on foreign currency transactions | (2,773 | ) | ||
Realized net gain on investments | 580,574 | |||
Unrealized appreciation in value of securities during the period | 935,796 | |||
Unrealized depreciation in value of forward currency contracts during the period | (44,790 | ) | ||
Unrealized appreciation in value of foreign currency exchange transactions during the period | 66 | |||
Unrealized appreciation in value of investments during the period | 891,072 | |||
Net gain on investments | 1,471,646 | |||
Net increase in net assets resulting from operations | $ | 1,482,284 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY GLOBAL NATURAL RESOURCES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 10,638 | $ | 14,992 | ||||
Realized net gain on investments | 580,574 | 369,398 | ||||||
Unrealized appreciation | 891,072 | 225,771 | ||||||
Net increase in net assets resulting from operations | 1,482,284 | 610,161 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (14,592 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class R | (–– | ) | (4 | ) | ||||
Class Y | (–– | ) | (1,219 | ) | ||||
Advisor Class | (–– | ) | (2 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (261,685 | ) | ||||
Class B | (–– | ) | (23,885 | ) | ||||
Class C | (–– | ) | (96,422 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class R | (–– | ) | (115 | ) | ||||
Class Y | (–– | ) | (17,486 | ) | ||||
Advisor Class | (–– | ) | (28 | ) | ||||
(–– | ) | (415,438 | ) | |||||
Capital share transactions (Note 5) | 1,017,965 | 1,406,805 | ||||||
Total increase | 2,500,249 | 1,601,528 | ||||||
NET ASSETS | ||||||||
Beginning of period | 5,085,053 | 3,483,525 | ||||||
End of period | $ | 7,585,302 | $ | 5,085,053 | ||||
Undistributed net investment income | $ | 12,828 | $ | 4,963 | ||||
(1)See "Financial Highlights" on pages 119 - 126.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 31.67 | $ | 30.13 | $ | 22.65 | $ | 17.63 | $ | 16.69 | $ | 11.50 | $ | 11.05 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.17 | (1) | 0.12 | (0.04 | ) | 0.03 | 0.10 | (0.11 | )(1) | |||||||||||||||
Net realized and unrealized gain on investments | 8.48 | 4.40 | (1) | 8.88 | 5.06 | 0.91 | 5.14 | 0.63 | (1)(2) | ||||||||||||||||
Total from investment operations | 8.56 | 4.57 | 9.00 | 5.02 | 0.94 | 5.24 | 0.52 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.16 | ) | (0.00 | ) | (0.00 | )* | (0.00 | ) | (0.05 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.07 | ) | |||||||||||
Total distributions | (0.00 | ) | (3.03 | ) | (1.52 | ) | (0.00 | )* | (0.00 | ) | (0.05 | ) | (0.07 | ) | |||||||||||
Net asset value, end of period | $ | 40.23 | $ | 31.67 | $ | 30.13 | $ | 22.65 | $ | 17.63 | $ | 16.69 | $ | 11.50 | |||||||||||
Total return (3) | 27.03 | % | 15.47 | % | 40.76 | % | 28.50 | % | 5.63 | % | 45.61 | % | 4.66 | %(2) | |||||||||||
Net assets, end of period (in millions) | $4,904 | $3,360 | $2,343 | $895 | $192 | $95 | $17 | ||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.29 | %(4) | 1.31 | % | 1.40 | % | 1.55 | % | 1.65 | %(4) | 1.89 | % | 2.22 | % | |||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.53 | %(4) | 0.57 | % | 0.73 | % | - -0.52 | % | - -0.80 | %(4) | - -0.66 | % | - -0.91 | % | |||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.29 | %(4)(5) | 1.31 | %(5) | 1.40 | %(5) | 1.55 | %(5) | 1.65 | %(4)(5) | 1.89 | %(5) | 2.38 | % | |||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.53 | %(4)(5) | 0.57 | %(5) | 0.73 | %(5) | - -0.52 | %(5) | - -0.80 | %(4)(5) | - -0.66 | %(5) | - -1.07 | % | |||||||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % | 67 | % |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.78 | $ | 28.57 | $ | 21.72 | $ | 17.04 | $ | 16.16 | $ | 11.19 | $ | 10.81 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.05 | ) | 0.03 | (0.04 | ) | (0.01 | ) | (0.06 | ) | (0.19 | )(1) | ||||||||||||
Net realized and unrealized gain on investments | 7.94 | 4.13 | 8.34 | 4.72 | 0.89 | 5.03 | 0.57 | (1) | |||||||||||||||||
Total from investment operations | 7.90 | 4.08 | 8.37 | 4.68 | 0.88 | 4.97 | 0.38 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Net asset value, end of period | $ | 37.68 | $ | 29.78 | $ | 28.57 | $ | 21.72 | $ | 17.04 | $ | 16.16 | $ | 11.19 | |||||||||||
Total return | 26.53 | % | 14.55 | % | 39.59 | % | 27.46 | % | 5.45 | % | 44.42 | % | 3.52 | % | |||||||||||
Net assets, end of period (in millions) | $354 | $272 | $223 | $110 | $30 | $21 | $9 | ||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.08 | %(2) | 2.12 | % | 2.23 | % | 2.39 | % | 2.42 | %(2) | 2.90 | % | 2.93 | % | |||||||||||
Ratio of net investment loss to average net assets including reimbursement | - -0.26 | %(2) | - -0.24 | % | - -0.10 | % | - -1.35 | % | - -1.59 | %(2) | - -1.54 | % | - -1.62 | % | |||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.08 | %(2)(3) | 2.12 | %(3) | 2.23 | %(3) | 2.39 | %(3) | 2.42 | %(2)(3) | 2.90 | %(3) | 3.09 | % | |||||||||||
Ratio of net investment loss to average net assets excluding reimbursement | - -0.26 | %(2)(3) | - -0.24 | %(3) | - -0.10 | %(3) | - -1.35 | %(3) | - -1.59 | %(2)(3) | - -1.54 | %(3) | - -1.78 | % | |||||||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % | 67 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 29.19 | $ | 28.04 | $ | 21.32 | $ | 16.72 | $ | 15.86 | $ | 10.97 | $ | 10.61 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.03 | ) | 0.02 | (0.09 | ) | 0.00 | 0.04 | (0.18 | )(1) | ||||||||||||||
Net realized and unrealized gain on investments | 7.78 | 4.05 | 8.22 | 4.69 | 0.86 | 4.85 | 0.55 | (1) | |||||||||||||||||
Total from investment operations | 7.76 | 4.02 | 8.24 | 4.60 | 0.86 | 4.89 | 0.37 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Total distributions | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Net asset value, end of period | $ | 36.95 | $ | 29.19 | $ | 28.04 | $ | 21.32 | $ | 16.72 | $ | 15.86 | $ | 10.97 | |||||||||||
Total return | 26.58 | % | 14.65 | % | 39.72 | % | 27.51 | % | 5.42 | % | 44.58 | % | 3.46 | % | |||||||||||
Net assets, end of period (in millions) | $1,641 | $1,138 | $801 | $312 | $64 | $34 | $5 | ||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.99 | %(2) | 2.04 | % | 2.15 | % | 2.31 | % | 2.38 | %(2) | 2.65 | % | 2.94 | % | |||||||||||
Ratio of net investment loss to average net assets including reimbursement | - -0.18 | %(2) | - -0.16 | % | - -0.02 | % | - -1.28 | % | - -1.54 | %(2) | - -1.48 | % | - -1.64 | % | |||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.99 | %(2)(3) | 2.04 | %(3) | 2.15 | %(3) | 2.31 | %(3) | 2.38 | %(2)(3) | 2.65 | %(3) | 3.10 | % | |||||||||||
Ratio of net investment loss to average net assets excluding reimbursement | - -0.18 | %(2)(3) | - -0.16 | %(3) | - -0.02 | %(3) | - -1.28 | %(3) | - -1.54 | %(2)(3) | - -1.48 | %(3) | - -1.80 | % | |||||||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % | 67 | % |
(1)Based on average shares outstanding
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 31.67 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.12 | )(2) | |||
Net realized and unrealized gain on investments | 8.57 | (2) | |||
Total from investment operations | 8.45 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 40.12 | |||
Total return (3) | 25.44 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets | 2.28 | %(4) | |||
Ratio of net investment loss to average net assets | - -0.57 | %(4) | |||
Portfolio turnover rate | 65 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 31.84 | |||
Income from investment operations: | |||||
Net investment income | 0.12 | (2) | |||
Net realized and unrealized gain on investments | 8.67 | (2) | |||
Total from investment operations | 8.79 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 40.63 | |||
Total return | 26.34 | % | |||
Net assets, end of period (in millions) | $44 | ||||
Ratio of expenses to average net assets | 1.03 | %(3) | |||
Ratio of net investment income to average net assets | 0.66 | %(3) | |||
Portfolio turnover rate | 65 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended | For the period from 12-29-05(1) to | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | 3-31-06 | |||||||||||
Net asset value, beginning of period | $ | 31.62 | $ | 30.10 | $ | 26.11 | |||||||
Income from investment operations: | |||||||||||||
Net investment income | 0.05 | 0.05 | (2) | 0.06 | |||||||||
Net realized and unrealized gain on investments | 8.43 | 4.44 | (2) | 3.93 | |||||||||
Total from investment operations | 8.48 | 4.49 | 3.99 | ||||||||||
Less distributions from: | |||||||||||||
Net investment income | (0.00 | ) | (0.10 | ) | (0.00 | ) | |||||||
Capital gains | (0.00 | ) | (2.87 | ) | (0.00 | ) | |||||||
Total distributions | (0.00 | ) | (2.97 | ) | (0.00 | ) | |||||||
Net asset value, end of period | $ | 40.10 | $ | 31.62 | $ | 30.10 | |||||||
Total return | 26.85 | % | 15.20 | % | 15.28 | % | |||||||
Net assets, end of period (in thousands) | $11,728 | $3,893 | $115 | ||||||||||
Ratio of expenses to average net assets | 1.57 | %(3) | 1.58 | % | 1.69 | %(3) | |||||||
Ratio of net investment income to average net assets | 0.22 | %(3) | 0.23 | % | 0.82 | %(3) | |||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 31.84 | $ | 30.27 | $ | 22.70 | $ | 17.66 | $ | 16.70 | $ | 12.60 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.21 | (2) | 0.24 | (2) | (0.02 | ) | 0.01 | 0.00 | |||||||||||||
Net realized and unrealized gain on investments | 8.55 | 4.43 | (2) | 8.85 | (2) | 5.13 | 0.95 | 4.16 | ||||||||||||||
Total from investment operations | 8.62 | 4.64 | 9.09 | 5.11 | 0.96 | 4.16 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.20 | ) | (0.00 | ) | (0.07 | ) | (0.00 | ) | (0.06 | ) | ||||||||||
Capital gains | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.07 | ) | (1.52 | ) | (0.07 | ) | (0.00 | ) | (0.06 | ) | ||||||||||
Net asset value, end of period | $ | 40.46 | $ | 31.84 | $ | 30.27 | $ | 22.70 | $ | 17.66 | $ | 16.70 | ||||||||||
Total return | 27.07 | % | 15.63 | % | 41.07 | % | 28.98 | % | 5.75 | % | 33.03 | % | ||||||||||
Net assets, end of period (in millions) | $628 | $311 | $116 | $21 | $4 | $1 | ||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.20 | %(3)(4) | 1.20 | %(4) | 1.20 | %(4) | 1.20 | %(4) | 1.20 | %(3)(4) | 1.39 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.60 | %(3)(4) | 0.66 | %(4) | 0.91 | %(4) | - -0.19 | %(4) | - -0.35 | %(3)(4) | - -0.54 | %(3) | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.26 | %(3)(4) | 1.27 | %(4) | 1.35 | %(4) | 1.48 | %(4) | 1.63 | %(3)(4) | 1.39 | %(3)(5) | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.54 | %(3)(4) | 0.59 | %(4) | 0.76 | %(4) | - -0.47 | %(4) | - -0.79 | %(3)(4) | - -0.54 | %(3)(5) | ||||||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | %(6) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Advisor Class Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 31.48 | $ | 29.92 | $ | 22.45 | $ | 17.47 | $ | 16.54 | $ | 11.43 | $ | 11.02 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.16 | 0.31 | 0.13 | (0.14 | ) | (0.03 | ) | (0.58 | ) | (0.07 | ) | |||||||||||||
Net realized and unrealized gain on investments | 8.41 | 4.34 | 8.86 | 5.14 | 0.96 | 5.78 | 0.56 | |||||||||||||||||
Total from investment operations | 8.57 | 4.65 | 8.99 | 5.00 | 0.93 | 5.20 | 0.49 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.22 | ) | (0.00 | ) | (0.02 | ) | (0.00 | ) | (0.09 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.08 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.09 | ) | (1.52 | ) | (0.02 | ) | (0.00 | ) | (0.09 | ) | (0.08 | ) | ||||||||||
Net asset value, end of period | $ | 40.05 | $ | 31.48 | $ | 29.92 | $ | 22.45 | $ | 17.47 | $ | 16.54 | $ | 11.43 | ||||||||||
Total return | 27.22 | % | 15.86 | % | 41.09 | % | 28.63 | % | 5.62 | % | 45.55 | % | 4.46 | % | ||||||||||
Net assets, end of period (in thousands) | $385 | $322 | $368 | $476 | $512 | $484 | $570 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 0.96 | %(2) | 0.95 | % | 1.25 | % | 1.47 | % | 1.57 | %(2) | 2.19 | % | 1.82 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.86 | %(2) | 0.94 | % | 0.97 | % | - -0.36 | % | - -0.74 | %(2) | - -0.41 | % | - -0.51 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 0.96 | %(2)(3) | 0.95 | %(3) | 1.25 | %(3) | 1.47 | %(3) | 1.57 | %(2)(3) | 2.19 | %(3) | 1.98 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.86 | %(2)(3) | 0.94 | %(3) | 0.97 | %(3) | - -0.36 | %(3) | - -0.74 | %(2)(3) | - -0.41 | %(3) | - -0.67 | % | ||||||||||
Portfolio turnover rate | 65 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % | 67 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL BALANCED FUND
Portfolio Highlights
On September 30, 2007, Ivy International Balanced Fund had net assets totaling
$335,226,625 invested in a diversified portfolio of:
65.81% | Foreign Common Stocks | |
26.33% | Other Government Securities | |
3.73% | Cash and Cash Equivalents | |
2.85% | Foreign Corporate Debt Securities | |
1.28% | Domestic Corporate Debt Securities |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
Europe | $ | 66.57 | |||
United Kingdom | $ | 16.96 | |||
Other Europe (1) | $ | 11.44 | |||
Sweden | $ | 9.40 | |||
France | $ | 8.17 | |||
Germany | $ | 8.07 | |||
Norway | $ | 4.75 | |||
Netherlands | $ | 4.55 | |||
Switzerland | $ | 3.23 | |||
Pacific Basin | $ | 27.05 | |||
Singapore | $ | 5.02 | |||
Other Pacific Basin (2) | $ | 4.79 | |||
Malaysia | $ | 4.66 | |||
Japan | $ | 4.36 | |||
South Korea | $ | 4.31 | |||
Taiwan | $ | 3.91 | |||
Cash and Cash Equivalents | $ | 3.73 | |||
Other (3) | $ | 2.65 |
(1)Includes $0.18 Austria, $0.81 Belgium, $0.50 Denmark, $1.82 Finland, $0.24 Ireland,
$2.44 Italy, $2.89 Poland and $2.56 Spain.
(2)Includes $3.01 Australia, $0.93 China, $0.76 Hong Kong and $0.09 New Zealand.
(3)Includes $0.24 Canada, $1.10 Cayman Islands, $1.02 Israel and $0.29 Supernational.
Sector Weightings
Other Government Securities | $ | 26.33 | |||
Financial Services Stocks | $ | 16.20 | |||
Utilities Stocks | $ | 11.37 | |||
Technology Stocks | $ | 6.27 | |||
Energy Stocks | $ | 5.03 | |||
Consumer Durables Stocks | $ | 4.92 | |||
Health Care Stocks | $ | 4.18 | |||
Consumer Services Stocks | $ | 4.16 | |||
Corporate Debt Securities | $ | 4.13 | |||
Miscellaneous Stocks | $ | 3.91 | |||
Cash and Cash Equivalents | $ | 3.73 | |||
Business Equipment and Services Stocks | $ | 2.86 | |||
Retail Stocks | $ | 2.70 | |||
Capital Goods Stocks | $ | 2.18 | |||
Shelter Stocks | $ | 2.03 |
The Investments of Ivy International Balanced Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Australia - 1.58% | ||||||||
National Australia Bank Limited (A) | 54,242 | $ | 1,911,309 | |||||
Telekom Austria Aktiengesellschaft (A) | 128,820 | 3,370,712 | ||||||
5,282,021 | ||||||||
Belgium - 0.59% | ||||||||
Belgacom SA (A) | 42,790 | 1,985,465 | ||||||
Cayman Island- 1.10% | ||||||||
ACE Limited | 46,490 | 2,815,899 | ||||||
XL Capital Ltd, Class A | 10,870 | 860,904 | ||||||
3,676,803 | ||||||||
China - 0.93% | ||||||||
China Telecom Corporation Limited (A) | 3,774,000 | 2,844,876 | ||||||
China Telecom Corporation Limited (A)(B) | 360,000 | 271,371 | ||||||
3,116,247 | ||||||||
Denmark - 0.50% | ||||||||
Vestas Wind Systems A/S (A)* | 21,080 | 1,665,330 | ||||||
Finland - 1.50% | ||||||||
Stora Enso Oyj, Class R (A) | 104,960 | 2,044,452 | ||||||
UPM-Kymmene Corporation (A) | 124,110 | 3,001,477 | ||||||
5,045,929 | ||||||||
France - 8.17% | ||||||||
AXA S.A. (A) | 109,570 | 4,902,831 | ||||||
France Telecom (A) | 220,724 | 7,393,242 | ||||||
Sanofi-Aventis (A) | 69,548 | 5,888,805 | ||||||
THOMSON (A) | 231,400 | 3,524,009 | ||||||
TOTAL S.A. (A) | 41,440 | 3,369,375 | ||||||
Vivendi Universal (A) | 54,670 | 2,307,508 | ||||||
27,385,770 | ||||||||
Germany - 3.87% | ||||||||
Bayerische Motoren Werke Aktiengesellschaft (A) | 47,660 | 3,082,007 | ||||||
Deutsche Post AG (A) | 70,260 | 2,039,803 | ||||||
E.ON AG (A) | 5,810 | 1,072,293 | ||||||
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A) | 17,210 | 3,298,242 | ||||||
Siemens AG (A) | 25,310 | 3,473,723 | ||||||
12,966,068 | ||||||||
Hong Kong - 0.76% | ||||||||
Hutchison Whampoa Limited, Ordinary Shares (A) | 239,000 | 2,556,372 | ||||||
Israel - 1.02% | ||||||||
Check Point Software Technologies Ltd.* | 135,710 | 3,416,499 | ||||||
Italy - 2.44% | ||||||||
Eni S.p.A. (A) | 83,858 | 3,107,800 | ||||||
Mediaset S.p.A. (A) | 341,234 | 3,522,842 | ||||||
UniCredito Italiano S.p.A. (A) | 179,693 | 1,537,393 | ||||||
8,168,035 | ||||||||
Japan - 4.36% | ||||||||
AIFUL Corporation (A) | 54,200 | 849,345 | ||||||
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A) | 189 | 1,661,864 | ||||||
Konica Minolta Holdings, Inc. (A) | 76,500 | 1,296,700 | ||||||
NGK SPARK PLUG CO., LTD. (A) | 176,000 | 2,735,037 | ||||||
Nissan Motor Co., Ltd. (A) | 234,000 | 2,344,787 | ||||||
Promise Co., Ltd. (A) | 46,200 | 1,126,192 | ||||||
Sony Corporation (A) | 61,500 | 2,982,240 | ||||||
USS Co., Ltd. (A) | 24,690 | 1,622,857 | ||||||
14,619,022 | ||||||||
Netherlands - 4.55% | ||||||||
Akzo Nobel N.V. (A) | 16,030 | 1,321,185 | ||||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 138,500 | 6,147,963 | ||||||
Koninklijke Philips Electronics N.V., Ordinary Shares (A) | 40,460 | 1,826,005 | ||||||
Reed Elsevier NV (A) | 183,940 | 3,493,677 | ||||||
Vedior N.V. (A) | 111,960 | 2,463,379 | ||||||
15,252,209 | ||||||||
Norway - 1.50% | ||||||||
Norske Skogindustrier ASA (A) | 163,411 | 1,748,915 | ||||||
Telenor ASA (A) | 163,300 | 3,271,301 | ||||||
5,020,216 | ||||||||
Singapore - 2.44% | ||||||||
DBS Group Holdings Ltd (A) | 33,000 | 479,838 | ||||||
Flextronics International Ltd.* | 237,690 | 2,658,563 | ||||||
Singapore Telecommunications Limited (A) | 931,000 | 2,519,435 | ||||||
Venture Corporation Limited (A) | 226,000 | 2,510,266 | ||||||
8,168,102 | ||||||||
South Korea - 2.89% | ||||||||
KT Corporation, ADR | 48,730 | 1,220,687 | ||||||
Kookmin Bank, ADR | 16,440 | 1,347,916 | ||||||
SK Telecom Co., Ltd., ADR | 41,000 | 1,217,700 | ||||||
Samsung Electronics Co., Ltd. (A) | 7,368 | 4,629,152 | ||||||
Samsung Electronics Co., Ltd., GDR (B) | 4,010 | 1,259,766 | ||||||
9,675,221 | ||||||||
Spain - 2.41% | ||||||||
Gamesa Corporacion Tecnologica, S.A. (A) | 53,110 | 2,169,718 | ||||||
Repsol YPF, S.A. (A) | 70,566 | 2,520,610 | ||||||
Telefonica, S.A., ADR | 40,135 | 3,362,510 | ||||||
Telefonica, S.A., Brazilian Depositary Receipts (A) | 569 | 15,831 | ||||||
8,068,669 | ||||||||
Sweden - 1.10% | ||||||||
Nordea Bank AB, Finnish Depositary Receipts (A) | 89,560 | 1,559,309 | ||||||
Securitas AB, Class B (A) | 105,270 | 1,388,549 | ||||||
Securitas Systems AB, Class B (A) | 204,730 | 756,129 | ||||||
3,703,987 | ||||||||
Switzerland - 3.23% | ||||||||
Lonza Group Ltd, Registered Shares (A) | 5,800 | 632,682 | ||||||
Nestle S.A., Registered Shares (A) | 7,930 | 3,562,285 | ||||||
Novartis AG, Registered Shares (A) | 77,210 | 4,260,891 | ||||||
Swiss Reinsurance Company, Registered Shares (A) | 26,800 | 2,387,082 | ||||||
10,842,940 | ||||||||
Taiwan - 3.91% | ||||||||
Chunghwa Telecom Co., Ltd., ADR | 175,623 | 3,245,513 | ||||||
Compal Electronics Inc., GDR | 55,073 | 311,350 | ||||||
Compal Electronics Inc., GDR (B) | 134,498 | 760,372 | ||||||
Lite-On Technology Corporation (A) | 343,233 | 536,384 | ||||||
Lite-On Technology Corporation, GDR (A) | 259,309 | 3,985,293 | ||||||
Mega Financial Holding Company (A) | 6,790,000 | 4,286,012 | ||||||
13,124,924 | ||||||||
Thailand - 0.00% | ||||||||
Advanced Info Service Public Company Limited (A) | 3,000 | 7,790 | ||||||
United Kingdom - 16.96% | ||||||||
Aviva plc (A) | 296,630 | 4,466,807 | ||||||
BAE Systems plc (A) | 93,350 | 942,553 | ||||||
BP p.l.c. (A) | 424,390 | 4,927,599 | ||||||
British Sky Broadcasting Group plc (A) | 230,870 | 3,282,892 | ||||||
Compass Group PLC (A) | 560,920 | 3,465,869 | ||||||
Fiberweb plc (A) | 51,523 | 62,195 | ||||||
GlaxoSmithKline plc (A) | 145,100 | 3,850,452 | ||||||
Group 4 Securicor plc (A) | 897,590 | 3,709,657 | ||||||
HSBC Holdings plc (A) | 190,630 | 3,527,802 | ||||||
INVESCO PLC (A) | 26,400 | 357,304 | ||||||
Kingfisher plc (A) | 707,280 | 2,587,398 | ||||||
Old Mutual plc (A) | 1,645,380 | 5,396,399 | ||||||
Pearson plc (A) | 86,110 | 1,334,568 | ||||||
Rentokil Initial plc (A) | 376,520 | 1,285,727 | ||||||
Royal Bank of Scotland Group plc (The) (A) | 500,230 | 5,373,205 | ||||||
Royal Dutch Shell plc, Class B (A) | 71,241 | 2,932,664 | ||||||
tesco plc (A) | 157,950 | 1,419,501 | ||||||
Unilever PLC (A) | 52,092 | 1,646,660 | ||||||
Vodafone Group Plc (A) | 1,678,588 | 6,061,680 | ||||||
Vodafone Group Plc, ADR | 6,590 | 239,217 | ||||||
56,870,149 | ||||||||
TOTAL COMMON STOCKS - 65.81% | $ | 220,617,768 | ||||||
(Cost: $181,343,434) | ||||||||
CORPORATE DEBT SECURITIES - 4.13% | Principal Amount in Thousands | |||||||
Germany | ||||||||
KfW, Frankfurt/Main, Federal Republic of Germany: | ||||||||
0.60%, 8-08-11 (C)(D) | JPY950,000 | 8,270,537 | ||||||
0.60%, 8-08-11 (C)(D) | 640,000 | 5,571,730 | ||||||
(Cost: $13,829,440) | $ | 13,842,267 | ||||||
OTHER GOVERNMENT SECURITIES | ||||||||
Australia - 1.43% | ||||||||
New South Wales Treasury Corporation, | ||||||||
8.0%, 3-01-08 (C) | AUD4,350 | 3,878,056 | ||||||
Queensland Treasury Corporation, | ||||||||
6.0%, 7-14-09 (C) | 1,050 | 921,260 | ||||||
4,799,316 | ||||||||
Austria - 0.18% | ||||||||
Republic of Austria: | ||||||||
5.5%, 10-20-07 (C) | EUR360 | 513,483 | ||||||
4.0%, 7-15-09 (C) | 70 | 99,623 | ||||||
613,106 | ||||||||
Belgium - 0.22% | ||||||||
Belgium Government Bond: | ||||||||
7.5%, 7-29-08 (C) | 405 | 592,998 | ||||||
5.0%, 9-28-12 (C) | 100 | 147,209 | ||||||
740,207 |
Canada - 0.24% | ||||||||
Canadian Government Bond | ||||||||
6.0%, 6-01-11 (C) | CAD748 | 797,491 | ||||||
Finland - 0.32% | ||||||||
Finland Government Bond: | ||||||||
3.0%, 7-04-08 (C) | EUR400 | 565,757 | ||||||
5.0%, 4-25-09 (C) | 60 | 86,653 | ||||||
5.75%, 2-23-11 (C) | 280 | 418,493 | ||||||
1,070,903 | ||||||||
Germany - 0.07% | ||||||||
Deutsche Bundesrepublik, | ||||||||
5.0%, 7-04-11 (C) | 170 | 249,297 | ||||||
Ireland - 0.24% | ||||||||
Ireland Government Bond, | ||||||||
5.0%, 4-18-13 (C) | 540 | 796,475 | ||||||
Malaysia - 4.66% | ||||||||
Bank Negara Monetary Notes: | ||||||||
0.0%, 12-06-07 (C) | MYR3,400 | 991,785 | ||||||
0.0%, 12-13-07 (C) | 8,665 | 2,525,955 | ||||||
0.0%, 12-21-07 (C) | 19,200 | 5,592,884 | ||||||
3.546%, 1-11-08 (C) | 8,250 | 2,423,256 | ||||||
3.569%, 2-14-08 (C) | 1,450 | 426,095 | ||||||
0.0%, 2-28-08 (C) | 1,160 | 335,778 | ||||||
3.17%, 5-15-08 (C) | 1,400 | 410,577 | ||||||
0.0%, 9-23-08 (C) | 4,530 | 1,287,429 | ||||||
Malaysian Government Bond, | ||||||||
7.0%, 3-15-09 (C) | 580 | 178,544 | ||||||
Malaysian Treasury Bills: | ||||||||
0.0%, 1-04-08 (C) | 400 | 116,398 | ||||||
0.0%, 2-29-08 (C) | 800 | 231,617 | ||||||
0.0%, 3-28-08 (C) | 500 | 144,393 | ||||||
0.0%, 5-09-08 (C) | 2,000 | 575,388 | ||||||
0.0%, 6-06-08 (C) | 1,300 | 373,005 | ||||||
15,613,104 | ||||||||
New Zealand - 0.09% | ||||||||
New Zealand Government Bond, | ||||||||
6.0%, 11-15-11 (C) | NZD410 | 303,042 | ||||||
Norway - 3.25% | ||||||||
Norway Government Bond, | ||||||||
5.5%, 5-15-09 (C) | NOK32,920 | 6,166,868 | ||||||
Norway Treasury Bills: | ||||||||
0.0%, 12-19-07 (C) | 23,805 | 4,376,946 | ||||||
0.0%, 6-18-08 (C) | 370 | 66,290 | ||||||
0.0%, 9-17-08 (C) | 1,550 | 274,337 | ||||||
10,884,441 | ||||||||
Poland - 2.89% | ||||||||
Poland Government Bond: | ||||||||
5.75%, 6-24-08 (C) | PLN1,200 | 455,918 | ||||||
6.0%, 5-24-09 (C) | 9,425 | 3,605,206 | ||||||
6.25%, 10-24-15 (C) | 3,250 | 1,270,772 | ||||||
5.75%, 9-23-22 (C) | 11,570 | 4,369,334 | ||||||
9,701,230 | ||||||||
Singapore - 2.58% | ||||||||
Singapore Government Bond: | ||||||||
2.625%, 10-01-07 (C) | SGD6,450 | 4,341,972 | ||||||
4.375%, 1-15-09 (C) | 6,200 | 4,300,976 | ||||||
8,642,948 | ||||||||
South Korea - 1.42% | ||||||||
South Korea Treasury Bond: | ||||||||
4.5%, 9-09-08 (C) | KRW1,000,000 | 1,083,807 | ||||||
4.25%, 9-10-08 (C) | 2,300,000 | 2,487,026 | ||||||
4.75%, 6-10-09 (C) | 1,100,000 | 1,188,151 | ||||||
4,758,984 | ||||||||
Spain - 0.15% | ||||||||
Spain Government Bond, | ||||||||
6.0%, 1-31-08 (C) | EUR350 | 501,815 | ||||||
Supranational - 0.29% | ||||||||
European Investment Bank, | ||||||||
0.78125%, 9-21-11 (C)(D) | JPY110,000 | 957,409 | ||||||
Sweden - 8.30% | ||||||||
Sweden Government Bond: | ||||||||
6.5%, 5-05-08 (C) | SEK118,100 | 18,599,912 | ||||||
5.0%, 1-28-09 (C) | 51,100 | 8,032,821 | ||||||
Sweden Treasury Bills: | ||||||||
0.0%, 6-18-08 (C) | 4,000 | 603,772 | ||||||
0.0%, 9-17-08 (C) | 4,000 | 597,513 | ||||||
27,834,018 | ||||||||
TOTAL OTHER GOVERNMENT SECURITIES - 26.33% | $ | 88,263,786 | ||||||
(Cost: $82,005,985) | ||||||||
| ||||||||
SHORT-TERM SECURITIES | ||||||||
---|---|---|---|---|---|---|---|---|
Chemicals - Petroleum and Inorganic - 0.89% | ||||||||
E.I. du Pont de Nemours and Company, | ||||||||
4.75%, 10-09-07 | $ | 3,000 | 2,996,833 | |||||
Chemicals - Specialty- 0.29% | ||||||||
Air Products and Chemicals, Inc., | ||||||||
5.05%, 10-01-07 | 964 | 964,000 | ||||||
Finance Companies - 1.79% | ||||||||
Prudential Funding LLC, | ||||||||
5.23%, 10-05-07 | 6,000 | 5,996,513 | ||||||
Household - General Products - 0.89% | ||||||||
Clorox Co., | ||||||||
5.42%, 10-09-07 | 3,000 | 2,996,387 | ||||||
Leisure Time Industry - 0.60% | ||||||||
Walt Disney Company (The), | ||||||||
5.2%, 10-11-07 | 2,000 | 1,997,111 | ||||||
Publishing - 0.59% | ||||||||
Gannett Co., Inc., | ||||||||
5.35%, 10-25-07 | 2,000 | 1,992,867 | ||||||
Retail - General Merchandise - 0.60% | ||||||||
Target Corporation, | ||||||||
5.0%, 10-19-07 | 2,000 | 1,995,000 | ||||||
TOTAL SHORT-TERM SECURITIES - 5.65% | $ | 18,938,711 | ||||||
(Cost: $18,938,711) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.92% | $ | 341,662,532 | ||||||
(Cost: $296,117,570) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.92%) | (6,435,907 | ) | ||||||
NET ASSETS - 100.00% | $ | 335,226,625 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $2,291,509, or 0.68% of net assets. |
(C)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CAD - Canadian Dollar, EUR - Euro, JPY - Japanese Yen, KRW - South Korean Won, MYR - Malaysian Ringgit, NOK - Norwegian Krone, NZD - New Zealand Dollar, PLN - Polish Zloty, SEK - Swedish Krona, SGD - Singapore Dollar). |
(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY INTERNATIONAL BALANCED FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $296,118) (Notes 1 and 3) | $ | 341,663 | ||
Cash | 1,168 | |||
Cash denominated in foreign currencies (cost - $1,072) | 1,101 | |||
Receivables: | ||||
Dividends and interest | 2,444 | |||
Fund shares sold | 1,148 | |||
Prepaid and other assets | 37 | |||
Total assets | 347,561 | |||
LIABILITIES | ||||
Payable to investment securities purchased | 11,136 | |||
Payable to Fund shareholders | 652 | |||
Accrued management fee (Note 2) | 186 | |||
Accrued service fee (Note 2) | 85 | |||
Accrued shareholder servicing (Note 2) | 81 | |||
Accrued distribution fee (Note 2) | 30 | |||
Accrued accounting services fee (Note 2) | 9 | |||
Other | 155 | |||
Total liabilities | 12,334 | |||
Total net assets | $ | 335,227 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 278,781 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 3,006 | |||
Accumulated undistributed net realized gain on investment transactions | 7,799 | |||
Net unrealized appreciation in value of investments | 45,641 | |||
Net assets applicable to outstanding units of capital | $ | 335,227 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $17.65 | |||
Class B | $17.59 | |||
Class C | $17.61 | |||
Class E | $17.61 | |||
Class I | $17.67 | |||
Class Y | $17.66 | |||
Capital shares outstanding: | ||||
Class A | 14,607 | |||
Class B | 780 | |||
Class C | 2,141 | |||
Class E | 26 | |||
Class I | 1,338 | |||
Class Y | 107 |
See Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL BALANCED FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $530) | $ | 4,253 | ||
Interest and amortization (net of foreign withholding taxes of $16) | 1,902 | |||
Total income | 6,155 | |||
Expenses (Note 2): | ||||
Investment management fee | 1,085 | |||
Shareholder servicing: | ||||
Class A | 300 | |||
Class B | 28 | |||
Class C | 37 | |||
Class E | 1 | |||
Class I | 9 | |||
Class Y | 2 | |||
Service fee: | ||||
Class A | 274 | |||
Class B | 16 | |||
Class C | 43 | |||
Class Y | 2 | |||
Distribution fee: | ||||
Class A | 37 | |||
Class B | 49 | |||
Class C | 130 | |||
Class E | –– | * | ||
Custodian fees | 59 | |||
Accounting services fee | 51 | |||
Audit fees | 16 | |||
Legal fees | 3 | |||
Other | 66 | |||
Total expenses | 2,208 | |||
Net investment income | 3,947 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 4,984 | |||
Realized net gain on foreign currency transactions | 2,380 | |||
Realized net gain on investments | 7,364 | |||
Unrealized appreciation in value of investments during the period | 7,650 | |||
Net gain on investments | 15,014 | |||
Net increase in net assets resulting from operations | $ | 18,961 | ||
*Not shown due to rounding
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY INTERNATIONAL BALANCED FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 3,947 | $ | 2,622 | ||||
Realized net gain on investments | 7,364 | 8,507 | ||||||
Unrealized appreciation | 7,650 | 19,022 | ||||||
Net increase in net assets resulting from operations | 18,961 | 30,151 | ||||||
Distributions to shareholders from (Note 1F) :(1) | ||||||||
Net investment income: | ||||||||
Class A | (3,552 | ) | (4,320 | ) | ||||
Class B | (130 | ) | (158 | ) | ||||
Class C | (381 | ) | (332 | ) | ||||
Class E | (4 | ) | NA | |||||
Class I | (213 | ) | NA | |||||
Class Y | (21 | ) | (28 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (5,577 | ) | ||||
Class B | (–– | ) | (387 | ) | ||||
Class C | (–– | ) | (669 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (38 | ) | ||||
(4,301 | ) | (11,509 | ) | |||||
Capital share transactions (Note 5) | 41,623 | 132,436 | ||||||
Total increase | 56,283 | 151,078 | ||||||
NET ASSETS | ||||||||
Beginning of period | 278,944 | 127,866 | ||||||
End of period | $ | 335,227 | $ | 278,944 | ||||
Undistributed net investment income | $ | 3,006 | $ | 980 | ||||
(1)See "Financial Highlights" on pages 140 - 145.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended September 30, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.81 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 11.33 | $ | 8.72 | $ | 9.28 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.23 | 0.24 | (1) | 0.29 | 0.22 | 0.09 | 0.21 | 0.18 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.86 | 2.36 | (1) | 1.14 | 1.69 | 1.83 | 2.40 | (0.59 | ) | |||||||||||||||
Total from investment operations | 1.09 | 2.60 | 1.43 | 1.91 | 1.92 | 2.61 | (0.41 | ) | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.25 | ) | (0.43 | ) | (0.36 | ) | (0.28 | ) | (0.18 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.13 | ) | ||||||||||
Tax return of capital | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.02 | ) | ||||||||||
Total distributions | (0.25 | ) | (0.94 | ) | (0.91 | ) | (0.35 | ) | (0.18 | ) | (0.00 | ) | (0.15 | ) | ||||||||||
Net asset value, end of period | $ | 17.65 | $ | 16.81 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 11.33 | $ | 8.72 | ||||||||||
Total return(2) | 6.53 | % | 17.48 | % | 10.14 | % | 14.81 | % | 17.05 | % | 29.93 | % | -4.62 | % | ||||||||||
Net assets, end of period (in millions) | $258 | $235 | $112 | $97 | $60 | $46 | $36 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.31 | %(3) | 1.38 | % | 1.45 | % | 1.42 | % | 1.54 | %(3)(4) | 1.67 | % | 1.62 | % | ||||||||||
Ratio of net investment income to average net assets including reimbursement | 2.69 | %(3) | 1.52 | % | 1.94 | % | 1.71 | % | 1.43 | %(3)(4) | 2.06 | % | 1.84 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.31 | %(3)(5) | 1.38 | %(5) | 1.45 | %(5) | 1.42 | %(5) | 1.60 | %(3)(4) | 1.71 | % | 1.72 | % | ||||||||||
Ratio of net investment income to average net assets excluding reimbursement | 2.69 | %(3)(5) | 1.52 | %(5) | 1.94 | %(5) | 1.71 | %(5) | 1.37 | %(3)(4) | 2.02 | % | 1.74 | % | ||||||||||
Portfolio turnover rate | 9 | % | 22 | % | 27 | % | 16 | % | 15 | % | 39 | % | 48 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 16.77 | $ | 15.11 | $ | 14.59 | $ | 13.04 | $ | 12.34 | |||||||||||
Income from investment operations: | |||||||||||||||||||||
Net investment income | 0.18 | 0.07 | (2) | 0.08 | 0.03 | (2) | 0.19 | ||||||||||||||
Net realized and unrealized gain on investments | 0.85 | 2.37 | (2) | 1.18 | 1.70 | (2) | 0.69 | ||||||||||||||
Total from investment operations | 1.03 | 2.44 | 1.26 | 1.73 | 0.88 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.21 | ) | (0.27 | ) | (0.19 | ) | (0.11 | ) | (0.18 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.21 | ) | (0.78 | ) | (0.74 | ) | (0.18 | ) | (0.18 | ) | |||||||||||
Net asset value, end of period | $ | 17.59 | $ | 16.77 | $ | 15.11 | $ | 14.59 | $ | 13.04 | |||||||||||
Total return | 5.94 | % | 16.38 | % | 8.93 | % | 13.37 | % | 7.18 | % | |||||||||||
Net assets, end of period (in thousands) | $13,720 | $12,056 | $5,548 | $3,049 | $225 | ||||||||||||||||
Ratio of expenses to average net assets | 2.29 | %(3) | 2.35 | % | 2.59 | % | 2.64 | % | 3.01 | %(3) | |||||||||||
Ratio of net investment income to average net assets | 1.69 | %(3) | 0.46 | % | 0.73 | % | 0.20 | % | 1.09 | %(3) | |||||||||||
Portfolio turnover rate | 9 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 16.78 | $ | 15.12 | $ | 14.60 | $ | 13.04 | $ | 12.34 | |||||||||||
Income from investment operations: | |||||||||||||||||||||
Net investment income | 0.16 | 0.11 | (2) | 0.11 | 0.07 | (2) | 0.19 | ||||||||||||||
Net realized and unrealized gain on investments | 0.86 | 2.37 | (2) | 1.19 | 1.69 | (2) | 0.69 | ||||||||||||||
Total from investment operations | 1.02 | 2.48 | 1.30 | 1.76 | 0.88 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.19 | ) | (0.31 | ) | (0.23 | ) | (0.13 | ) | (0.18 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.19 | ) | (0.82 | ) | (0.78 | ) | (0.20 | ) | (0.18 | ) | |||||||||||
Net asset value, end of period | $ | 17.61 | $ | 16.78 | $ | 15.12 | $ | 14.60 | $ | 13.04 | |||||||||||
Total return | 6.11 | % | 16.64 | % | 9.21 | % | 13.58 | % | 7.18 | % | |||||||||||
Net assets, end of period (in thousands) | $37,697 | $29,921 | $9,422 | $3,968 | $307 | ||||||||||||||||
Ratio of expenses to average net assets | 2.05 | %(3) | 2.12 | % | 2.29 | % | 2.44 | % | 2.86 | %(3) | |||||||||||
Ratio of net investment income to average net assets | 1.91 | %(3) | 0.70 | % | 0.98 | % | 0.44 | % | 1.13 | %(3) | |||||||||||
Portfolio turnover rate | 9 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.81 | |||
Income from investment operations: | |||||
Net investment income | 0.11 | (2) | |||
Net realized and unrealized gain on investments | 0.93 | (2) | |||
Total from investment operations | 1.04 | ||||
Less distributions from: | |||||
Net investment income | (0.24 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.24 | ) | |||
Net asset value, end of period | $ | 17.61 | |||
Total return (3) | 6.03 | % | |||
Net assets, end of period (in thousands) | $451 | ||||
Ratio of expenses to average net assets | 2.03 | %(4) | |||
Ratio of net investment income to average net assets | 1.54 | %(4) | |||
Portfolio turnover rate | 9 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.82 | |||
Income from investment operations: | |||||
Net investment income | 0.16 | (2) | |||
Net realized and unrealized gain on investments | 0.97 | (2) | |||
Total from investment operations | 1.13 | ||||
Less distributions from: | |||||
Net investment income | (0.28 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.28 | ) | |||
Net asset value, end of period | $ | 17.67 | |||
Total return | 6.49 | % | |||
Net assets, end of period (in millions) | $24 | ||||
Ratio of expenses to average net assets | 0.99 | %(3) | |||
Ratio of net investment income to average net assets | 2.33 | %(3) | |||
Portfolio turnover rate | 9 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 16.82 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 12.34 | |||||||||||
Income from investment operations: | |||||||||||||||||||||
Net investment income | 0.22 | 0.25 | (2) | 0.29 | (2) | 0.24 | (2) | 0.21 | |||||||||||||
Net realized and unrealized gain on investments | 0.87 | 2.37 | (2) | 1.14 | (2) | 1.67 | (2) | 0.70 | |||||||||||||
Total from investment operations | 1.09 | 2.62 | 1.43 | 1.91 | 0.91 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.25 | ) | (0.44 | ) | (0.36 | ) | (0.28 | ) | (0.18 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.25 | ) | (0.95 | ) | (0.91 | ) | (0.35 | ) | (0.18 | ) | |||||||||||
Net asset value, end of period | $ | 17.66 | $ | 16.82 | $ | 15.15 | $ | 14.63 | $ | 13.07 | |||||||||||
Total return | 6.55 | % | 17.61 | % | 10.18 | % | 14.84 | % | 7.47 | % | |||||||||||
Net assets, end of period (in thousands) | $1,897 | $1,665 | $662 | $397 | $185 | ||||||||||||||||
Ratio of expenses to average net assets | 1.28 | %(3) | 1.24 | % | 1.41 | % | 1.40 | % | 1.79 | %(3) | |||||||||||
Ratio of net investment income to average net assets | 2.49 | %(3) | 1.64 | % | 1.99 | % | 1.72 | % | 2.00 | %(3) | |||||||||||
Portfolio turnover rate | 9 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL CORE EQUITY FUND
Portfolio Highlights
On September 30, 2007, Ivy International Core Equity Fund had net assets totaling
$286,375,689 invested in a diversified portfolio of:
95.60% | Foreign Common Stocks | |
2.28% | Other Government Securities | |
1.21% | Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts | |
0.91% | Domestic Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
Country Weightings
Europe | $ | 66.84 | |||
United Kingdom | $ | 17.97 | |||
Switzerland | $ | 12.74 | |||
France | $ | 11.43 | |||
Germany | $ | 9.58 | |||
Other Europe (1) | $ | 7.71 | |||
Netherlands | $ | 3.96 | |||
Norway | $ | 3.45 | |||
Pacific Basin | $ | 29.11 | |||
Japan | $ | 14.74 | |||
Other Pacific Basin (2) | $ | 5.86 | |||
Australia | $ | 4.59 | |||
China | $ | 3.92 | |||
Other (3) | $ | 2.84 | |||
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts | $ | 1.21 |
(1)Includes $1.46 Greece, $2.39 Italy, $1.47 Spain and $2.39 Sweden.
(2)Includes $2.79 Hong Kong, $1.12 India and $1.95 Singapore.
(3)Includes $1.93 Brazil and $0.91 United States.
Sector Weightings
Capital Goods Stocks | $ | 17.50 | |||
Consumer Nondurables Stocks | $ | 15.07 | |||
Financial Services Stocks | $ | 12.25 | |||
Business Equipment and Services Stocks | $ | 8.53 | |||
Utilities Stocks | $ | 7.89 | |||
Raw Materials Stocks | $ | 5.16 | |||
Health Care Stocks | $ | 5.13 | |||
Energy Stocks | $ | 5.12 | |||
Consumer Durables Stocks | $ | 5.02 | |||
Miscellaneous Stocks | $ | 4.51 | |||
Technology Stocks | $ | 4.01 | |||
Multi-Industry Stocks | $ | 3.69 | |||
Transportation Stocks | $ | 2.63 | |||
Other Government Securities | $ | 2.28 | |||
Cash and Cash Equivalents and Unrealized Gain on Open Forward Currency Contracts | $ | 1.21 |
The Investments of Ivy International Core Equity Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS AND RIGHTS | Shares | Value | ||||||
Australia - 4.59% | ||||||||
Foster's Group Limited (A) | 569,110 | $ | 3,297,651 | |||||
Rio Tinto Limited (A) | 72,390 | 6,951,547 | ||||||
Telstra Corporation Limited (A) | 750,000 | 2,901,637 | ||||||
13,150,835 | ||||||||
Brazil - 1.93% | ||||||||
Petroleo Brasileiro S.A. - Petrobras, ADR | 73,170 | 5,524,335 | ||||||
China - 3.92% | ||||||||
China Mobile Limited (A) | 293,500 | 4,806,184 | ||||||
Qiao Xing Mobile Communication Co., Ltd.* | 243,200 | 2,371,200 | ||||||
SINA Corporation* | 84,750 | 4,057,830 | ||||||
11,235,214 | ||||||||
France - 11.43% | ||||||||
ALSTOM (A) | 16,380 | 3,330,001 | ||||||
L'Oreal (A) | 42,980 | 5,638,409 | ||||||
LVMH Moet Hennessy - Louis Vuitton (A) | 35,090 | 4,206,557 | ||||||
TOTAL S.A. (A) | 64,620 | 5,254,078 | ||||||
Technip-Coflexip (A) | 39,820 | 3,560,173 | ||||||
VINCI (A) | 45,230 | 3,533,705 | ||||||
Vallourec (A) | 15,770 | 4,542,400 | ||||||
Vivendi Universal (A) | 63,160 | 2,665,853 | ||||||
32,731,176 | ||||||||
Germany - 7.30% | ||||||||
Beiersdorf Aktiengesellschaft (A) | 56,560 | 4,222,906 | ||||||
Commerzbank Aktiengesellschaft (A) | 128,520 | 5,217,477 | ||||||
Deutsche Borse AG (A) | 27,030 | 3,671,631 | ||||||
Fresenius AG (A) | 45,220 | 3,507,776 | ||||||
Siemens AG (A) | 31,130 | 4,272,501 | ||||||
20,892,291 | ||||||||
Greece - 1.46% | ||||||||
Alpha Bank (A) | 120,300 | 4,192,462 | ||||||
Hong Kong - 2.79% | ||||||||
CNOOC Limited (A) | 2,309,000 | 3,879,100 | ||||||
Cheung Kong (Holdings) Limited (A) | 249,000 | 4,106,305 | ||||||
7,985,405 | ||||||||
India - 1.12% | ||||||||
Infosys Technologies Limited, ADR | 66,320 | 3,207,567 | ||||||
Italy - 2.39% | ||||||||
Capitalia S.p.A. (A) | 438,100 | 4,185,530 | ||||||
Capitalia S.p.A., Rights (A)* | 261,020 | 1 | ||||||
Davide Campari - Milano S.p.A. (A) | 258,300 | 2,651,913 | ||||||
6,837,444 | ||||||||
Japan - 14.74% | ||||||||
Chiyoda Corporation (A) | 180,000 | 3,243,808 | ||||||
JGC Corporation (A) | 167,000 | 3,220,346 | ||||||
Mitsubishi Electric Corporation (A) | 507,000 | 6,355,983 | ||||||
Mitsui Fudosan Co., Ltd. (A) | 109,000 | 3,027,119 | ||||||
Nintendo Co., Ltd. (A) | 9,300 | 4,841,684 | ||||||
Nissin Kogyo Co., Ltd. (A) | 117,900 | 3,397,458 | ||||||
Shin-Etsu Chemical Co., Ltd. (A) | 46,800 | 3,235,032 | ||||||
Sumitomo Mitsui Financial Group, Inc. (A) | 310 | 2,415,444 | ||||||
Suzuki Motor Corporation (A) | 168,100 | 4,975,754 | ||||||
Toda Corporation (A) | 561,000 | 2,959,701 | ||||||
Toyota Motor Corporation (A) | 77,100 | 4,550,890 | ||||||
42,223,219 | ||||||||
Netherlands - 3.96% | ||||||||
Heineken N.V. (A) | 108,900 | 7,146,228 | ||||||
TNT N.V. (A) | 100,140 | 4,198,143 | ||||||
11,344,371 | ||||||||
Norway - 3.45% | ||||||||
Aker Kvaerner ASA (A) | 167,640 | 5,340,537 | ||||||
Orkla ASA (A) | 254,000 | 4,537,018 | ||||||
9,877,555 | ||||||||
Singapore - 1.95% | ||||||||
Singapore Telecommunications Limited (A) | 2,065,000 | 5,588,219 | ||||||
Spain - 1.47% | ||||||||
Telefonica, S.A. (A) | 150,450 | 4,211,287 | ||||||
Sweden - 2.39% | ||||||||
Atlas Copco AB, Class A, ADR (A) | 179,160 | 3,099,943 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares (A) | 932,120 | 3,731,894 | ||||||
6,831,837 | ||||||||
Switzerland - 12.74% | ||||||||
Compagnie Financiere Richemont SA (A) | 47,220 | 3,129,073 | ||||||
Holcim Ltd, Registered Shares (A) | 35,900 | 3,965,420 | ||||||
Nestle S.A., Registered Shares (A) | 18,930 | 8,503,663 | ||||||
Roche Holdings AG, Genussschein (A) | 38,260 | 6,937,244 | ||||||
Swatch Group Ltd (The), Bearer Shares (A) | 15,860 | 5,203,796 | ||||||
Syngenta AG (A) | 21,280 | 4,587,743 | ||||||
Zurich Financial Services, Registered Shares (A) | 13,860 | 4,157,702 | ||||||
36,484,641 | ||||||||
United Kingdom - 17.97% | ||||||||
BAE Systems plc (A) | 667,050 | 6,735,191 | ||||||
BAE Systems plc (A)(B) | 100,000 | 1,009,698 | ||||||
Barclays PLC (A) | 325,070 | 3,960,618 | ||||||
British American Tobacco p.l.c. (A) | 94,580 | 3,390,297 | ||||||
Delek Global Real Estate Limited (A)(B)* | 451,984 | 1,451,868 | ||||||
Informa plc (A) | 304,500 | 3,118,141 | ||||||
Intertek Group plc (A) | 183,520 | 3,555,803 | ||||||
Prudential plc (A) | 342,900 | 5,272,309 | ||||||
Serco Group plc (A) | 352,090 | 2,989,552 | ||||||
Smith & Nephew plc (A) | 348,870 | 4,264,871 | ||||||
Standard Chartered PLC (A) | 173,810 | 5,689,827 | ||||||
Vodafone Group Plc (A) | 1,411,129 | 5,095,839 | ||||||
WPP Group plc (A) | 364,820 | 4,941,297 | ||||||
51,475,311 | ||||||||
United States - 0.91% | ||||||||
Comtech Group, Inc.* | 143,150 | 2,607,477 | ||||||
TOTAL COMMON STOCKS AND RIGHTS - 96.51% | $ | 276,400,646 | ||||||
(Cost: $236,002,270) | ||||||||
OTHER GOVERNMENT SECURITIES - 2.28% | Principal Amount in Thousands | |||||||
Germany | ||||||||
Bundesschatzanweisungen Federal Treasury Notes, | ||||||||
3.0%, 3-14-08 (C) | EUR 4,600 | $ | 6,528,446 | |||||
(Cost: $6,164,767) | ||||||||
UNREALIZED GAIN ON OPEN FORWARD CURRENCY CONTRACTS - 0.15% | Face Amount in Thousands | |||||||
Australian Dollar, 8-27-08 (C) | AUD 4,600 | 309,322 | ||||||
Japanese Yen, 4-1-08 (C) | JPY 490,000 | 29,582 | ||||||
Swedish Krona, 3-17-08 (C) | SEK 17,274 | 89,912 | ||||||
$ | 428,816 | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
---|---|---|---|---|---|---|---|---|
Electrical Equipment - 0.70% | ||||||||
W.W. Grainger, Inc., | ||||||||
4.78%, 10-24-07 | $ | 2,000 | 1,993,892 | |||||
Food and Related - 0.69% | ||||||||
Archer Daniels Midland Company, | ||||||||
5.1%, 11-6-07 | 2,000 | 1,989,800 | ||||||
Mining - 0.33% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | ||||||||
5%, 10-1-07 | 934 | 934,000 | ||||||
TOTAL SHORT-TERM SECURITIES - 1.72% | $ | 4,917,692 | ||||||
(Cost: $4,917,692) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.66% | $ | 288,275,600 | ||||||
(Cost: $247,084,729) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%) | (1,899,911 | ) | ||||||
NET ASSETS - 100.00% | $ | 286,375,689 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $2,461,566 or 0.86% of net assets. |
(C)Principal amounts are denominated in the indicated foreign currency, were applicable (AUD - Australian Dollar, EUR - Euro, JPY - Japanese Yen, SEK - Swedish Krona). |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY INTERNATIONAL CORE EQUITY FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $247,085) (Notes 1 and 3) | $ | 288,276 | ||
Cash denominated in foreign currencies (cost - $8,989) | 9,071 | |||
Receivables: | ||||
Investment securities sold | 13,433 | |||
Fund shares sold | 1,455 | |||
Dividends and interest | 823 | |||
Prepaid and other assets | 49 | |||
Total assets | 313,107 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 25,654 | |||
Payable to Fund shareholders | 635 | |||
Accrued management fee (Note 2) | 188 | |||
Accrued shareholder servicing (Note 2) | 82 | |||
Accrued service fee (Note 2) | 69 | |||
Accrued distribution fee (Note 2) | 35 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Due to custodian | 5 | |||
Accrued administrative fee (Note 2) | 2 | |||
Other | 55 | |||
Total liabilities | 26,731 | |||
Total net assets | $ | 286,376 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 221,840 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 1,533 | |||
Accumulated undistributed net realized gain on investment transactions | 21,786 | |||
Net unrealized appreciation in value of investments | 41,217 | |||
Net assets applicable to outstanding units of capital | $ | 286,376 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $20.02 | |||
Class B | $18.46 | |||
Class C | $18.45 | |||
Class E | $19.97 | |||
Class I | $20.16 | |||
Class Y | $20.13 | |||
Advisor Class | $19.89 | |||
Capital shares outstanding: | ||||
Class A | 10,396 | |||
Class B | 953 | |||
Class C | 2,272 | |||
Class E | 39 | |||
Class I | 631 | |||
Class Y | 257 | |||
Advisor Class | –– | * |
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL CORE EQUITY FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $327) | $ | 3,311 | ||
Interest and amortization | 256 | |||
Total income | 3,567 | |||
Expenses (Note 2): | ||||
Investment management fee | 1,060 | |||
Shareholder servicing: | ||||
Class A | 256 | |||
Class B | 29 | |||
Class C | 39 | |||
Class E | 2 | |||
Class I | 5 | |||
Class Y | 3 | |||
Advisor Class | –– | * | ||
Service fee: | ||||
Class A | 194 | |||
Class B | 22 | |||
Class C | 47 | |||
Class Y | 5 | |||
Distribution fee: | ||||
Class A | 35 | |||
Class B | 65 | |||
Class C | 142 | |||
Class E | 1 | |||
Accounting services fee | 36 | |||
Custodian fees | 34 | |||
Audit fees | 22 | |||
Administrative fee | 13 | |||
Legal fees | 2 | |||
Other | 87 | |||
Total expenses | 2,099 | |||
Net investment income | 1,468 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 10,422 | |||
Realized net gain on foreign currency transactions | 5 | |||
Realized net gain on investments | 10,427 | |||
Unrealized appreciation in value of investments during the period | 19,503 | |||
Net gain on investments | 29,930 | |||
Net increase in net assets resulting from operations | $ | 31,398 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY INTERNATIONAL CORE EQUITY FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,468 | $ | 672 | ||||
Realized net gain on investments | 10,427 | 21,872 | ||||||
Unrealized appreciation | 19,503 | 3,107 | ||||||
Net increase in net assets resulting from operations | 31,398 | 25,651 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (435 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (7 | ) | ||||
Advisor Class | (–– | ) | (–– | )* | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (5,291 | ) | ||||
Class B | (–– | ) | (666 | ) | ||||
Class C | (–– | ) | (1,213 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (77 | ) | ||||
Advisor Class | (–– | ) | (–– | )* | ||||
(–– | ) | (7,689 | ) | |||||
Capital share transactions (Note 5) | 39,543 | 99,073 | ||||||
Total increase | 70,941 | 117,035 | ||||||
NET ASSETS | ||||||||
Beginning of period | 215,435 | 98,400 | ||||||
End of period | $ | 286,376 | $ | 215,435 | ||||
Undistributed net investment income | $ | 1,533 | $ | 60 | ||||
*Not shown due to rounding.
(1)See "Financial Highlights" on pages 155 - 161.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 17.63 | $ | 15.73 | $ | 11.61 | $ | 10.14 | $ | 9.73 | $ | 7.65 | $ | 9.10 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.10 | (1) | (0.06 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | 0.08 | (1) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.28 | 2.59 | (1) | 4.18 | 1.49 | 0.42 | 2.10 | (1.53 | )(1) | ||||||||||||||||||
Total from investment operations | 2.39 | 2.69 | 4.12 | 1.47 | 0.41 | 2.08 | (1.45 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Capital gains | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Total distributions | (0.00 | ) | (0.79 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Net asset value, end of period | $ | 20.02 | $ | 17.63 | $ | 15.73 | $ | 11.61 | $ | 10.14 | $ | 9.73 | $ | 7.65 | |||||||||||||
Total return(3) | 13.61 | % | 17.35 | % | 35.49 | % | 14.50 | % | 4.21 | % | 27.19 | % | - -15.93 | %(2) | |||||||||||||
Net assets, end of period (in millions) | $208 | $161 | $67 | $17 | $10 | $9 | $8 | ||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.54 | %(4) | 1.56 | % | 1.82 | % | 1.99 | % | 2.16 | %(4) | 2.28 | % | 1.77 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.34 | %(4) | 0.63 | % | 0.14 | % | 0.09 | % | - -0.41 | %(4) | - -0.19 | % | 0.91 | % | |||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.54 | %(4)(5) | 1.56 | %(5) | 1.82 | %(5) | 1.99 | %(5) | 2.16 | %(4)(5) | 2.28 | %(5) | 2.32 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.34 | %(4)(5) | 0.63 | %(5) | 0.14 | %(5) | 0.09 | %(5) | - -0.41 | %(4)(5) | - -0.19 | %(5) | 0.36 | % | |||||||||||||
Portfolio turnover rate | 56 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % | 48 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 16.31 | $ | 14.67 | $ | 10.91 | $ | 9.60 | $ | 9.24 | $ | 7.32 | $ | 8.97 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.04 | (0.00 | )(1) | (0.12 | ) | (0.08 | ) | (0.03 | ) | (0.08 | ) | 0.01 | (1) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.11 | 2.37 | (1) | 3.88 | 1.39 | 0.39 | 2.00 | (1.66 | )(1) | ||||||||||||||||||
Total from investment operations | 2.15 | 2.37 | 3.76 | 1.31 | 0.36 | 1.92 | (1.65 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Capital gains | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Total distributions | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Net asset value, end of period | $ | 18.46 | $ | 16.31 | $ | 14.67 | $ | 10.91 | $ | 9.60 | $ | 9.24 | $ | 7.32 | |||||||||||||
Total return | 13.18 | % | 16.39 | % | 34.46 | % | 13.65 | % | 3.90 | % | 26.23 | % | - -18.39 | % | |||||||||||||
Net assets, end of period (in millions) | $18 | $17 | $15 | $20 | $24 | $25 | $28 | ||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.35 | %(2) | 2.35 | % | 2.62 | % | 2.76 | % | 2.91 | %(2) | 2.95 | % | 2.50 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.62 | %(2) | - -0.03 | % | - -0.41 | % | - -0.58 | % | - -1.20 | %(2) | - -0.82 | % | 0.18 | % | |||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.35 | %(2)(3) | 2.35 | %(3) | 2.62 | %(3) | 2.76 | %(3) | 2.91 | %(2)(3) | 2.95 | %(3) | 3.05 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.62 | %(2)(3) | - -0.03 | %(3) | - -0.41 | %(3) | - -0.58 | %(3) | - -1.20 | %(2)(3) | - -0.82 | %(3) | - -0.37 | % | |||||||||||||
Portfolio turnover rate | 56 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % | 48 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 16.30 | $ | 14.65 | $ | 10.90 | $ | 9.59 | $ | 9.23 | $ | 7.32 | $ | 8.97 | |||||||||||||
Income (loss) from | |||||||||||||||||||||||||||
investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.06 | (0.01 | )(1) | (0.02 | ) | (0.07 | ) | (0.03 | ) | (0.08 | ) | 0.01 | (1) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.09 | 2.39 | (1) | 3.77 | 1.38 | 0.39 | 1.99 | (1.66 | )(1) | ||||||||||||||||||
Total from investment operations | 2.15 | 2.38 | 3.75 | 1.31 | 0.36 | 1.91 | (1.65 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Capital gains | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Total distributions | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Net asset value, end of period | $ | 18.45 | $ | 16.30 | $ | 14.65 | $ | 10.90 | $ | 9.59 | $ | 9.23 | $ | 7.32 | |||||||||||||
Total return | 13.25 | % | 16.48 | % | 34.40 | % | 13.66 | % | 3.90 | % | 26.09 | % | - -18.39 | % | |||||||||||||
Net assets, end of period (in millions) | $42 | $34 | $15 | $7 | $8 | $8 | $9 | ||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.21 | %(2) | 2.29 | % | 2.58 | % | 2.79 | % | 3.01 | %(2) | 3.01 | % | 2.50 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.67 | %(2) | - -0.08 | % | - -0.50 | % | - -0.63 | % | - -1.30 | %(2) | - -0.82 | % | 0.18 | % | |||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.21 | %(2)(3) | 2.29 | %(3) | 2.58 | %(3) | 2.79 | %(3) | 3.01 | %(2)(3) | 3.01 | %(3) | 3.05 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.67 | %(2)(3) | - -0.08 | %(3) | - -0.50 | %(3) | - -0.63 | %(3) | - -1.30 | %(2)(3) | - -0.82 | %(3) | - -0.37 | % | |||||||||||||
Portfolio turnover rate | 56 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % | 48 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 17.63 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.01 | )(2) | |||
Net realized and unrealized gain on investments | 2.35 | (2) | |||
Total from investment operations | 2.34 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 19.97 | |||
Total return (3) | 13.33 | % | |||
Net assets, end of period (in thousands) | $790 | ||||
Ratio of expenses to average net assets | 2.33 | %(4) | |||
Ratio of net investment loss to average net assets | - -0.03 | %(4) | |||
Portfolio turnover rate | 56 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 17.71 | |||
Income from investment operations: | |||||
Net investment income | 0.09 | (2) | |||
Net realized and unrealized gain on investments | 2.36 | (2) | |||
Total from investment operations | 2.45 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 20.16 | |||
Total return | 13.83 | % | |||
Net assets, end of period (in millions) | $13 | ||||
Ratio of expenses to average net assets | 1.16 | %(3) | |||
Ratio of net investment income to average net assets | 0.96 | %(3) | |||
Portfolio turnover rate | 56 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 17.70 | $ | 15.79 | $ | 11.64 | $ | 10.15 | $ | 9.74 | $ | 8.16 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.12 | (2) | (0.06 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||
Net realized and unrealized gain on investments | 2.32 | 2.59 | (2) | 4.21 | 1.50 | 0.42 | 1.59 | |||||||||||||||
Total from investment operations | 2.43 | 2.71 | 4.15 | 1.49 | 0.41 | 1.58 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.80 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 20.13 | $ | 17.70 | $ | 15.79 | $ | 11.64 | $ | 10.15 | $ | 9.74 | ||||||||||
Total return | 13.66 | % | 17.47 | % | 35.65 | % | 14.68 | % | 4.21 | % | 19.36 | % | ||||||||||
Net assets, end of period (in thousands) | $5,177 | $3,848 | $1,025 | $294 | $145 | $125 | ||||||||||||||||
Ratio of expenses to average net assets | 1.41 | %(3) | 1.45 | % | 1.72 | % | 1.82 | % | 2.08 | %(3) | 1.47 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.39 | %(3) | 0.76 | % | 0.13 | % | 0.29 | % | - -0.31 | %(3) | - -0.38 | %(3) | ||||||||||
Portfolio turnover rate | 56 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Advisor Class Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||
Net asset value, beginning of period | $ | 17.54 | $ | 15.65 | $ | 11.52 | $ | 10.04 | $ | 9.63 | $ | 7.54 | $ | 9.14 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.14 | 0.14 | (2) | 0.03 | (2) | (0.00 | ) | 0.67 | 0.10 | (2) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.25 | 2.56 | 3.99 | (2) | 1.45 | (2) | 0.41 | 1.42 | (1.70 | )(2) | ||||||||||||||||
Total from investment operations | 2.35 | 2.70 | 4.13 | 1.48 | 0.41 | 2.09 | (1.60 | ) | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.08 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.81 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 19.89 | $ | 17.54 | $ | 15.65 | $ | 11.52 | $ | 10.04 | $ | 9.63 | $ | 7.54 | ||||||||||||
Total return | 13.40 | % | 17.48 | % | 35.85 | % | 14.74 | % | 4.26 | % | 27.72 | % | - -17.51 | % | ||||||||||||
Net assets, end of period (in thousands) | $1 | $1 | $1 | $31 | $41 | $39 | $124 | |||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.82 | %(3) | 1.47 | % | 1.84 | % | 1.91 | % | 1.62 | %(3) | 2.59 | % | 1.50 | % | ||||||||||||
Ratio of net investment income to average net assets including reimbursement | 1.09 | %(3) | 0.85 | % | 1.15 | % | 0.29 | % | 0.11 | %(3) | 1.43 | % | 1.18 | % | ||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.82 | %(3)(4) | 2.48 | % | 1.84 | %(4) | 1.91 | %(4) | 1.62 | %(3)(4) | 2.59 | %(4) | 2.05 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.09 | %(3)(4) | - -0.16 | % | 1.15 | %(4) | 0.29 | %(4) | 0.11 | %(3)(4) | 1.43 | %(4) | 0.63 | % | ||||||||||||
Portfolio turnover rate | 56 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % | 48 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL GROWTH FUND
Portfolio Highlights
On September 30, 2007, Ivy International Growth Fund had net assets totaling
$269,842,322 invested in a diversified portfolio of:
93.42% | Foreign Common Stocks | |
4.04% | Domestic Common Stocks | |
2.54% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
Country Weightings
Europe | $ | 65.48 | |||
Germany | $ | 16.67 | |||
United Kingdom | $ | 13.94 | |||
Switzerland | $ | 12.20 | |||
France | $ | 9.05 | |||
Other Europe (1) | $ | 6.05 | |||
Greece | $ | 3.84 | |||
Italy | $ | 3.73 | |||
Pacific Basin | $ | 23.30 | |||
Japan | $ | 13.85 | |||
Other Pacific Basin (2) | $ | 5.50 | |||
China | $ | 3.95 | |||
North America | $ | 5.02 | |||
United States | $ | 4.04 | |||
Other North America (3) | $ | 0.98 | |||
Cash and Cash Equivalents | $ | 2.54 | |||
Bahamas/Caribbean (4) | $ | 2.52 | |||
Other (5) | $ | 1.14 |
(1)Includes $1.01 Belgium, $2.03 Finland, $0.94 Ireland, $ 1.06 Norway and $1.01 Sweden.
(2)Includes $2.14 Australia, $1.79 Hong Kong, $0.59 India and $0.98 South Korea.
(3)Includes $0.98 Canada.
(4)Includes $1.35 Bermuda and $1.17 Cayman Islands.
(5)Includes $1.14 South America.
Sector Weightings
Capital Goods Stocks | $ | 18.10 | |||
Consumer Nondurables Stocks | $ | 13.16 | |||
Financial Services Stocks | $ | 12.01 | |||
Raw Materials Stocks | $ | 8.50 | |||
Consumer Durables Stocks | $ | 8.24 | |||
Technology Stocks | $ | 5.46 | |||
Business Equipment and Services Stocks | $ | 5.33 | |||
Health Care Stocks | $ | 5.32 | |||
Utilities Stocks | $ | 4.88 | |||
Multi-Industry Stocks | $ | 4.54 | |||
Retail Stocks | $ | 4.29 | |||
Energy Stocks | $ | 3.98 | |||
Miscellaneous Stocks | $ | 3.65 | |||
Cash and Cash Equivalents | $ | 2.54 |
The Investments of Ivy International Growth Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Australia - 2.14% | |||||||
Boart Longyear Limited (A)(B)* | 1,545,000 | $ | 3,262,878 | ||||
Novogen LTD (A)* | 474,580 | 791,704 | |||||
Rio Tinto Limited (A) | 18,000 | 1,728,524 | |||||
5,783,106 | |||||||
Belgium - 1.01% | |||||||
InBev NV (A) | 30,000 | 2,718,989 | |||||
Bermuda - 1.35% | |||||||
Esprit Holdings Limited (A) | 230,000 | 3,653,917 | |||||
Brazil - 1.14% | |||||||
Petroleo Brasileiro S.A. - Petrobras, ADR | 40,600 | 3,065,300 | |||||
Canada - 0.98% | |||||||
Shoppers Drug Mart Corporation (A)(B) | 48,450 | 2,648,883 | |||||
Cayman Islands - 1.17% | |||||||
Agile Property Holdings Limited (A) | 1,500,000 | 3,149,019 | |||||
China - 3.95% | |||||||
China Mobile Limited (A) | 378,000 | 6,189,906 | |||||
Qiao Xing Mobile Communication Co., Ltd.* | 115,500 | 1,126,125 | |||||
SINA Corporation* | 70,000 | 3,351,600 | |||||
10,667,631 | |||||||
Finland - 2.03% | |||||||
Fortum Oyj (A) | 72,000 | 2,642,673 | |||||
Nokia OYJ (A) | 75,000 | 2,851,174 | |||||
5,493,847 | |||||||
France - 9.05% | |||||||
ALSTOM (A) | 8,300 | 1,687,363 | |||||
LVMH Moet Hennessy - Louis Vuitton (A) | 22,000 | 2,637,340 | |||||
Pernod Ricard (A) | 11,520 | 2,513,804 | |||||
SR.Teleperformance (A)(B) | 46,666 | 1,818,622 | |||||
TOTAL S.A. (A) | 51,000 | 4,146,673 | |||||
Technip-Coflexip (A) | 30,000 | 2,682,200 | |||||
VINCI (A) | 87,000 | 6,797,088 | |||||
Vallourec (A) | 7,400 | 2,131,501 | |||||
24,414,591 | |||||||
Germany - 16.67% | |||||||
Allianz Aktiengesellschaft, Registered Shares (A) | 21,000 | 4,906,458 | |||||
Arcandor AG (A)* | 50,000 | 1,661,937 | |||||
Bayer Aktiengesellschaft (A) | 75,000 | 5,956,879 | |||||
Beiersdorf Aktiengesellschaft (A) | 30,000 | 2,239,872 | |||||
Commerzbank Aktiengesellschaft (A) | 50,000 | 2,029,831 | |||||
Deutsche Borse AG (A) | 53,200 | 7,226,443 | |||||
E.ON AG (A) | 17,600 | 3,248,254 | |||||
elexis AG (A) | 48,000 | 1,392,862 | |||||
Fresenius AG (A) | 45,000 | 3,490,710 | |||||
Siemens AG (A) | 38,600 | 5,297,737 | |||||
Vossloh AG (A) | 21,450 | 2,307,445 | |||||
Wacker Chemie AG (A) | 12,000 | 2,823,368 | |||||
Wacker Construction Equipment AG (A)* | 36,000 | 1,012,819 | |||||
Wacker Construction Equipment AG (A)(B)* | 49,500 | 1,392,626 | |||||
44,987,241 | |||||||
Greece - 3.84% | |||||||
Bank of Cyprus Limited (A) | 206,000 | 3,636,555 | |||||
Hellenic Exchanges Holding S.A. (A) | 100,000 | 3,208,373 | |||||
National Bank of Greece S.A. (A) | 20,000 | 1,274,794 | |||||
Piraeus Bank S.A. (A) | 62,500 | 2,233,384 | |||||
10,353,106 | |||||||
Hong Kong - 1.79% | |||||||
CNOOC Limited (A) | 2,100,000 | 3,527,982 | |||||
Hutchison Whampoa Limited, Ordinary Shares (A) | 121,000 | 1,294,230 | |||||
4,822,212 | |||||||
India - 0.59% | |||||||
ICICI Bank Limited, ADR | 30,000 | 1,581,600 | |||||
Ireland - 0.94% | |||||||
CRH public limited company (A) | 64,700 | 2,550,026 | |||||
Italy - 3.73% | |||||||
DiaSorin S.p.A. (A)(B)* | 60,000 | 1,103,680 | |||||
Finmeccanica SpA (A) | 60,000 | 1,747,922 | |||||
Saipem S.p.A. (A) | 89,000 | 3,797,117 | |||||
UniCredito Italiano S.p.A. (A) | 400,001 | 3,422,273 | |||||
10,070,992 | |||||||
Japan - 13.85% | |||||||
Astellas Pharma Inc. (A) | 28,000 | 1,343,142 | |||||
Canon Inc. (A) | 79,200 | 4,323,197 | |||||
Hokuhoku Financial Group, Inc. (A) | 400,000 | 1,131,763 | |||||
Hoya Corporation (A) | 86,000 | 2,934,924 | |||||
Japan Tobacco Inc. (A) | 550 | 3,021,373 | |||||
Makita Corporation (A) | 70,000 | 3,071,432 | |||||
Mitsubishi Electric Corporation (A) | 235,000 | 2,946,067 | |||||
Mitsubishi Estate Co., Ltd. (A) | 120,000 | 3,437,078 | |||||
Nintendo Co., Ltd. (A) | 10,200 | 5,310,234 | |||||
Shin-Etsu Chemical Co., Ltd. (A) | 42,000 | 2,903,234 | |||||
Suzuki Motor Corporation (A) | 45,000 | 1,331,998 | |||||
Toyota Motor Corporation (A) | 80,000 | 4,722,065 | |||||
YAMADA-DENKI Co., Ltd. (A) | 9,000 | 890,872 | |||||
37,367,379 | |||||||
Norway - 1.06% | |||||||
Aker Kvaerner ASA (A) | 90,000 | 2,867,146 | |||||
South Korea - 0.98% | |||||||
Samsung Electronics Co., Ltd. (A) | 4,200 | 2,638,767 | |||||
Sweden - 1.01% | |||||||
H & M Hennes & Mauritz AB (A) | 42,900 | 2,719,488 | |||||
Switzerland - 12.20% | |||||||
ABB Ltd (A) | 120,000 | 3,160,146 | |||||
Compagnie Financiere Richemont SA (A) | 47,550 | 3,150,941 | |||||
Holcim Ltd, Registered Shares (A) | 35,300 | 3,899,145 | |||||
Julius Baer Holding Ltd., Bearer Shares (A) | 38,000 | 2,841,228 | |||||
Nestle S.A., Registered Shares (A) | 13,000 | 5,839,811 | |||||
Nobel Biocare Holding AG (A) | 9,000 | 2,436,977 | |||||
Roche Holdings AG, Genussschein (A) | 28,500 | 5,167,576 | |||||
Swatch Group Ltd (The), Bearer Shares (A) | 8,200 | 2,690,487 | |||||
Syngenta AG (A) | 5,100 | 1,099,506 | |||||
UBS AG (A) | 49,000 | 2,634,657 | |||||
32,920,474 | |||||||
United Kingdom - 13.94% | |||||||
BAE Systems plc (A) | 451,000 | 4,553,738 | |||||
BHP Billiton Plc (A) | 144,000 | 5,155,905 | |||||
British American Tobacco p.l.c. (A) | 177,000 | 6,344,709 | |||||
Diageo plc (A) | 85,000 | 1,867,788 | |||||
IG Group Holdings plc (A)(B) | 272,000 | 2,107,783 | |||||
Informa plc (A) | 155,000 | 1,587,231 | |||||
Intertek Group plc (A) | 145,000 | 2,809,457 | |||||
Reckitt Benckiser plc (A) | 87,500 | 5,141,583 | |||||
Safestore Holdings Limited (A)(B) | 205,000 | 772,797 | |||||
Serco Group plc (A) | 150,000 | 1,273,631 | |||||
Standard Chartered PLC (A) | 42,500 | 1,391,276 | |||||
Tanfield Group PLC (A)* | 1,000,000 | 3,539,570 | |||||
Vodafone Group Plc (A) | 300,000 | 1,083,354 | |||||
37,628,822 | |||||||
United States - 4.04% | |||||||
Research In Motion Limited* | 110,550 | 10,892,491 | |||||
TOTAL COMMON STOCKS - 97.46% | $ | 262,995,027 | |||||
(Cost: $188,110,051) | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | ||||||
Finance Companies - 1.48% | |||||||
Prudential Funding LLC, | |||||||
5.23%, 10-5-07 | $ | 4,000 | 3,997,675 | ||||
Mining - 0.96% | |||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | |||||||
5.0%, 10-1-07 | 2,592 | 2,592,000 | |||||
TOTAL SHORT-TERM SECURITIES - 2.44% | $ | 6,589,675 | |||||
(Cost: $6,589,675) | |||||||
TOTAL INVESTMENT SECURITIES - 99.90% | $ | 269,584,702 | |||||
(Cost: $194,699,726) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.10% | 257,620 | ||||||
NET ASSETS - 100.00% | $ | 269,842,322 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amounted to $13,107,269 or 4.86% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY INTERNATIONAL GROWTH FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $194,700) (Notes 1 and 3) | $ | 269,585 | ||
Receivables: | ||||
Dividends and interest | 892 | |||
Fund shares sold | 321 | |||
Prepaid and other assets | 44 | |||
Total assets | 270,842 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 320 | |||
Accrued management fee (Note 2) | 179 | |||
Due to custodian | 165 | |||
Accrued service fee (Note 2) | 102 | |||
Accrued shareholder servicing (Note 2) | 81 | |||
Accrued distribution fee (Note 2) | 43 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Accrued administrative fee (Note 2) | 2 | |||
Other | 102 | |||
Total liabilities | 1,000 | |||
Total net assets | $ | 269,842 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 446,552 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 911 | |||
Accumulated undistributed net realized loss on investment transactions | (252,571 | ) | ||
Net unrealized appreciation in value of investments | 74,950 | |||
Net assets applicable to outstanding units of capital | $ | 269,842 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $40.01 | |||
Class B | $36.56 | |||
Class C | $36.48 | |||
Class E | $40.04 | |||
Class I | $40.39 | |||
Class Y | $39.99 | |||
Advisor Class | $37.18 | |||
Class II | $40.46 | |||
Capital shares outstanding: | ||||
Class A | 4,441 | |||
Class B | 330 | |||
Class C | 1,682 | |||
Class E | 3 | |||
Class I | 356 | |||
Class Y | 99 | |||
Advisor Class | –– | * | ||
Class II | 7 |
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL GROWTH FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $280) | $ | 2,661 | ||
Interest and amortization | 176 | |||
Total income | 2,837 | |||
Expenses (Note 2): | ||||
Investment management fee | 1,063 | |||
Shareholder servicing: | ||||
Class A | 185 | |||
Class B | 27 | |||
Class C | 128 | |||
Class E | –– | * | ||
Class I | 5 | |||
Class Y | 4 | |||
Advisor Class | –– | * | ||
Class II | –– | * | ||
Distribution fee: | ||||
Class A | 14 | |||
Class B | 44 | |||
Class C | 218 | |||
Class E | –– | * | ||
Service fee: | ||||
Class A | 176 | |||
Class B | 15 | |||
Class C | 73 | |||
Class Y | 5 | |||
Custodian fees | 65 | |||
Accounting services fee | 37 | |||
Audit fees | 23 | |||
Administrative fee | 13 | |||
Other | 66 | |||
Total expenses | 2,161 | |||
Net investment income | 676 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 18,900 | |||
Realized net loss on foreign currency transactions | (16 | ) | ||
Realized net gain on investments | 18,884 | |||
Unrealized appreciation in value of investments during the period | 16,862 | |||
Net gain on investments | 35,746 | |||
Net increase in net assets resulting from operations | $ | 36,422 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY INTERNATIONAL GROWTH FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 676 | $ | 535 | ||||
Realized net gain on investments | 18,884 | 34,584 | ||||||
Unrealized appreciation (depreciation) | 16,862 | (1,366 | ) | |||||
Net increase in net assets resulting from operations | 36,422 | 33,753 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (236 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (8 | ) | ||||
Advisor Class | (–– | ) | (–– | ) | ||||
Class II | (–– | ) | (1 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Advisor Class | (–– | ) | (–– | ) | ||||
Class II | (–– | ) | (–– | ) | ||||
(–– | ) | (245 | ) | |||||
Capital share transactions (Note 5) | (4,813 | ) | (26,372 | ) | ||||
Total increase | 31,609 | 7,136 | ||||||
NET ASSETS | ||||||||
Beginning of period | 238,233 | 231,097 | ||||||
End of period | $ | 269,842 | $ | 238,233 | ||||
Undistributed net investment income | $ | 911 | $ | 251 | ||||
(1)See "Financial Highlights" on pages 171 - 178.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||
Net asset value, beginning of period | $ | 34.60 | $ | 29.74 | $ | 22.86 | $ | 21.34 | $ | 20.64 | $ | 16.35 | $ | 20.69 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.19 | 0.08 | (0.02 | ) | (0.01 | ) | (0.02 | ) | 0.06 | (1) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.23 | 4.72 | 6.97 | 1.54 | 0.71 | 4.31 | (4.40 | )(1) | ||||||||||||||||||
Total from investment operations | 5.41 | 4.91 | 7.05 | 1.52 | 0.70 | 4.29 | (4.34 | ) | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.05 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.05 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 40.01 | $ | 34.60 | $ | 29.74 | $ | 22.86 | $ | 21.34 | $ | 20.64 | $ | 16.35 | ||||||||||||
Total return(2) | 15.64 | % | 16.51 | % | 30.92 | % | 7.12 | % | 3.39 | % | 26.24 | % | - -20.96 | % | ||||||||||||
Net assets, end of period (in millions) | $178 | $165 | $156 | $122 | $125 | $124 | $127 | |||||||||||||||||||
Ratio of expenses to average net assets | 1.45 | %(3) | 1.46 | % | 1.59 | % | 1.61 | % | 1.69 | %(3) | 1.81 | % | 1.89 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets | 0.83 | %(3) | 0.55 | % | 0.25 | % | - -0.15 | % | - -0.26 | %(3) | - -0.07 | % | 0.32 | % | ||||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % | 34 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||
Net asset value, beginning of period | $ | 31.79 | $ | 27.58 | $ | 21.30 | $ | 20.12 | $ | 19.52 | $ | 15.62 | $ | 20.03 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment loss | (0.03 | )(1) | (0.15 | ) | (0.17 | )(1) | (0.22 | )(1) | (0.07 | ) | (0.23 | ) | (0.12 | )(1) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.80 | (1) | 4.36 | 6.45 | (1) | 1.40 | (1) | 0.67 | 4.13 | (4.29 | )(1) | |||||||||||||||
Total from investment operations | 4.77 | 4.21 | 6.28 | 1.18 | 0.60 | 3.90 | (4.41 | ) | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 36.56 | $ | 31.79 | $ | 27.58 | $ | 21.30 | $ | 20.12 | $ | 19.52 | $ | 15.62 | ||||||||||||
Total return | 15.07 | % | 15.23 | % | 29.48 | % | 5.87 | % | 3.08 | % | 24.97 | % | - -22.00 | % | ||||||||||||
Net assets, end of period (in millions) | $12 | $11 | $13 | $17 | $49 | $55 | $68 | |||||||||||||||||||
Ratio of expenses to average net assets | 2.49 | %(2) | 2.55 | % | 2.74 | % | 2.75 | % | 2.75 | %(2) | 2.84 | % | 2.85 | % | ||||||||||||
Ratio of net investment loss to average net assets | - -0.21 | %(2) | - -0.53 | % | - -0.72 | % | - -1.09 | % | - -1.35 | %(2) | - -1.06 | % | - -0.64 | % | ||||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % | 34 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||
Net asset value, beginning of period | $ | 31.71 | $ | 27.52 | $ | 21.20 | $ | 20.00 | $ | 19.39 | $ | 15.52 | $ | 19.90 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment loss | (0.04 | ) | (0.15 | ) | (0.09 | )(1) | (0.32 | ) | (0.07 | ) | (0.20 | ) | (0.11 | )(1) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.81 | 4.34 | 6.41 | (1) | 1.52 | 0.68 | 4.07 | (4.27 | )(1) | |||||||||||||||||
Total from investment operations | 4.77 | 4.19 | 6.32 | 1.20 | 0.61 | 3.87 | (4.38 | ) | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 36.48 | $ | 31.71 | $ | 27.52 | $ | 21.20 | $ | 20.00 | $ | 19.39 | $ | 15.52 | ||||||||||||
Total return | 15.08 | % | 15.23 | % | 29.81 | % | 6.00 | % | 3.15 | % | 24.94 | % | - -22.00 | % | ||||||||||||
Net assets, end of period (in millions) | $62 | $57 | $56 | $9 | $11 | $12 | $14 | |||||||||||||||||||
Ratio of expenses to average net assets | 2.47 | %(2) | 2.54 | % | 2.43 | % | 2.64 | % | 2.67 | %(2) | 2.80 | % | 2.83 | % | ||||||||||||
Ratio of net investment loss to average net assets | - -0.20 | %(2) | - -0.53 | % | - -0.39 | % | - -1.14 | % | - -1.25 | %(2) | - -0.94 | % | - -0.62 | % | ||||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % | 34 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 34.60 | |||
Income from investment operations: | |||||
Net investment income | 0.19 | (2) | |||
Net realized and unrealized gain on investments | 5.25 | (2) | |||
Total from investment operations | 5.44 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 40.04 | |||
Total return (3) | 15.92 | % | |||
Net assets, end of period (in thousands) | $116 | ||||
Ratio of expenses to average net assets | 1.30 | %(4) | |||
Ratio of net investment income to average net assets | 0.99 | %(4) | |||
Portfolio turnover rate | 50 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 34.59 | |||
Income from investment operations: | |||||
Net investment income | 0.12 | (2) | |||
Net realized and unrealized gain on investments | 5.68 | (2) | |||
Total from investment operations | 5.80 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 40.39 | |||
Total return | 17.01 | % | |||
Net assets, end of period (in millions) | $14 | ||||
Ratio of expenses to average net assets | 1.18 | %(3) | |||
Ratio of net investment income to average net assets | 0.64 | %(3) | |||
Portfolio turnover rate | 50 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 34.59 | $ | 29.74 | $ | 22.86 | $ | 21.35 | $ | 20.65 | $ | 17.69 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | 0.15 | (2) | 0.28 | 0.18 | (2) | (0.09 | ) | (0.02 | ) | 0.02 | ||||||||||||
Net realized and unrealized gain on investments | 5.25 | (2) | 4.63 | 6.87 | (2) | 1.60 | 0.72 | 2.94 | ||||||||||||||
Total from investment operations | 5.40 | 4.91 | 7.05 | 1.51 | 0.70 | 2.96 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.06 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 39.99 | $ | 34.59 | $ | 29.74 | $ | 22.86 | $ | 21.35 | $ | 20.65 | ||||||||||
Total return | 15.64 | % | 16.50 | % | 30.95 | % | 7.07 | % | 3.39 | % | 16.73 | % | ||||||||||
Net assets, end of period (in thousands) | $3,967 | $4,960 | $6,144 | $229 | $140 | $135 | ||||||||||||||||
Ratio of expenses to average net assets | 1.46 | %(3) | 1.46 | % | 1.58 | % | 1.66 | % | 1.76 | %(3) | 0.59 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.80 | %(3) | 0.65 | % | 0.81 | % | - -0.33 | % | - -0.32 | %(3) | 0.24 | %(3) | ||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Advisor Class Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002(2) | |||||||||||||||||||
Net asset value, beginning of period | $ | 32.66 | $ | 28.96 | $ | 22.84 | $ | 21.66 | $ | 21.00 | $ | 16.85 | $ | 20.67 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment loss | (0.38 | ) | (0.79 | ) | (0.75 | ) | (0.38 | ) | (0.08 | ) | (1.00 | ) | (0.24 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 4.90 | 4.49 | 6.87 | 1.56 | 0.74 | 5.15 | (3.58 | ) | |||||||||||||||||
Total from investment operations | 4.52 | 3.70 | 6.12 | 1.18 | 0.66 | 4.15 | (3.82 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Net asset value, end of period | $ | 37.18 | $ | 32.66 | $ | 28.96 | $ | 22.84 | $ | 21.66 | $ | 21.00 | $ | 16.85 | |||||||||||
Total return | 13.84 | % | 12.81 | % | 26.80 | % | 5.45 | % | 3.14 | % | 25.00 | % | - -18.71 | % | |||||||||||
Net assets, end of period (in thousands) | $1 | $1 | $1 | $1 | $1 | $1 | $2 | ||||||||||||||||||
Ratio of expenses to average net assets | 4.57 | %(3) | 4.66 | % | 4.71 | % | 3.11 | % | 2.35 | %(3) | 2.72 | % | 3.46 | % | |||||||||||
Ratio of net investment loss to average net assets | - -2.20 | %(3) | - -2.68 | % | - -3.03 | % | - -1.75 | % | - -1.58 | %(3) | - -0.98 | % | - -1.24 | % | |||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % | 34 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class II Shares (1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||
Net asset value, beginning of period | $ | 34.98 | $ | 30.07 | $ | 23.13 | $ | 21.58 | $ | 20.86 | $ | 16.48 | $ | 20.85 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.40 | 0.39 | 0.15 | (2) | 0.29 | (0.00 | ) | (0.08 | ) | 0.14 | (2) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.08 | 4.66 | 7.02 | (2) | 1.26 | 0.72 | 4.46 | (4.51 | )(2) | |||||||||||||||||
Total from investment operations | 5.48 | 5.05 | 7.17 | 1.55 | 0.72 | 4.38 | (4.37 | ) | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.14 | ) | (0.23 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.14 | ) | (0.23 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 40.46 | $ | 34.98 | $ | 30.07 | $ | 23.13 | $ | 21.58 | $ | 20.86 | $ | 16.48 | ||||||||||||
Total return | 15.70 | % | 16.83 | % | 31.12 | % | 7.18 | % | 3.45 | % | 26.58 | % | - -20.95 | % | ||||||||||||
Net assets, end of period (in thousands) | $302 | $303 | $299 | $345 | $669 | $684 | $1,304 | |||||||||||||||||||
Ratio of expenses to average net assets | 1.20 | %(3) | 1.20 | % | 1.39 | % | 1.47 | % | 1.38 | %(3) | 1.66 | % | 1.51 | % | ||||||||||||
Ratio of net investment income to average net assets | 1.13 | %(3) | 0.81 | % | 0.51 | % | 0.20 | % | 0.04 | %(3) | 0.06 | % | 0.70 | % | ||||||||||||
Portfolio turnover rate | 50 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % | 34 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MANAGED EUROPEAN/PACIFIC FUND
Portfolio Highlights
As a shareholder of Ivy Managed European/Pacific Fund, for every $100 you had invested on
September 30, 2007, your Fund owned:
Ivy European Opportunities Fund, Class I | $ | 56.08 | |||
Ivy Pacific Opportunities Fund, Class I | $ | 43.55 | |||
Cash and Cash Equivalents | $ | 0.37 | |||
The Investments of Ivy Managed European/Pacific Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
AFFILIATED MUTUAL FUNDS | Shares | Value | ||||||
Ivy European Opportunities Fund, Class I | 420,342 | $ | 18,532,888 | |||||
Ivy Pacific Opportunities Fund, Class I | 614,432 | 14,389,999 | ||||||
TOTAL AFFILIATED MUTUAL FUNDS - 99.63% | $ | 32,922,887 | ||||||
(Cost: $30,090,800) | ||||||||
SHORT-TERM SECURITIES - 1.31% | Principal Amount in Thousands | |||||||
Repurchase Agreement | ||||||||
J.P. Morgan Securities, Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $434,139 on 10-1-07 (A) | $434 | $ | 434,000 | |||||
(Cost: $434,000) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.94% | $ | 33,356,887 | ||||||
(Cost: $30,524,800) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.94%) | (309,867 | ) | ||||||
NET ASSETS - 100.00% | $ | 33,047,020 | ||||||
Notes to Schedule of Investments |
(A)Collateralized by $372,000 United States Treasury Bond, 6.375% due 8-15-27; market value and accrued interest aggregate $444,556. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY MANAGED EUROPEAN/PACIFIC FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (Notes 1 and 3): | ||||
Investments in affiliated mutual funds (cost - $30,091) | $ | 32,923 | ||
Repurchase agreement (cost - $434) | 434 | |||
33,357 | ||||
Cash | 1 | |||
Receivable for Fund shares sold | 521 | |||
Prepaid and other assets | 51 | |||
Total assets | 33,930 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 840 | |||
Payable to Fund shareholders | 28 | |||
Accrued shareholder servicing (Note 2) | 3 | |||
Accrued accounting services fee (Note 2) | 1 | |||
Accrued distribution fee (Note 2) | 1 | |||
Accrued management fee (Note 2) | 1 | |||
Accrued service fee (Note 2) | 1 | |||
Other | 8 | |||
Total liabilities | 883 | |||
Total net assets | $ | 33,047 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 30,309 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (91 | ) | ||
Accumulated undistributed net realized loss on investment transactions | (3 | ) | ||
Net unrealized appreciation in value of investments | 2,832 | |||
Net assets applicable to outstanding units of capital | $ | 33,047 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.91 | |||
Class B | $11.88 | |||
Class C | $11.87 | |||
Class E | $11.92 | |||
Class I | $11.94 | |||
Class Y | $11.92 | |||
Capital shares outstanding: | ||||
Class A | 2,499 | |||
Class B | 86 | |||
Class C | 126 | |||
Class E | 20 | |||
Class I | 20 | |||
Class Y | 24 |
See Notes to Financial Statements.
Statement of Operations
IVY MANAGED EUROPEAN/PACIFIC FUND
For the Period from April 2, 2007 through September 30, 2007
(In Thousands (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 10 | ||
Expenses (Note 2): | ||||
Registration fees | 55 | |||
Service fee: | ||||
Class A | 17 | |||
Class B | 1 | |||
Class C | 1 | |||
Class Y | –– | * | ||
Shareholder servicing: | ||||
Class A | 7 | |||
Class B | –– | * | ||
Class C | –– | * | ||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Distribution fee: | ||||
Class B | 2 | |||
Class C | 3 | |||
Class E | –– | * | ||
Investment management fee | 4 | |||
Accounting services fee | 3 | |||
Custodian fees | 2 | |||
Audit fees | –– | * | ||
Legal fees | –– | * | ||
Other | 8 | |||
Total | 103 | |||
Less voluntary waiver of investment management fee (Note 2) | (2 | ) | ||
Total expenses | 101 | |||
Net investment loss | (91 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net loss on investments in affiliated mutual funds | (3 | ) | ||
Unrealized appreciation in value of affiliated mutual funds during the period | 2,832 | |||
Net gain on investments | 2,829 | |||
Net increase in net assets resulting from operations | $ | 2,738 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MANAGED EUROPEAN/PACIFIC FUND
(In Thousands) (Unaudited)
For the period from 4-2-07(1) through | ||||
---|---|---|---|---|
9-30-07 | ||||
INCREASE IN NET ASSETS | ||||
Operations: | ||||
Net investment loss | $ | (91 | ) | |
Realized net loss on investments | (3 | ) | ||
Unrealized appreciation | 2,832 | |||
Net increase in net assets resulting from operations | 2,738 | |||
Distributions to shareholders from (Note 1F): (2) | ||||
Net investment income: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class E | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
Realized gains on investment transactions: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class E | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
(–– | ) | |||
Capital share transactions (Note 5) | 30,309 | |||
Total increase | 33,047 | |||
NET ASSETS | ||||
Beginning of period | –– | |||
End of period | $ | 33,047 | ||
Undistributed net investment loss | $ | (91 | ) | |
(1)Commencement of operations.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.07 | )(2) | |||
Net realized and unrealized gain on investments | 1.98 | (2) | |||
Total from investment operations | 1.91 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.91 | |||
Total return (3) | 19.10 | % | |||
Net assets, end of period (in millions) | $30 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.27 | %(4) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.17 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.30 | %(4) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.19 | %(4) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.10 | )(2) | |||
Net realized and unrealized gain on investments | 1.98 | (2) | |||
Total from investment operations | 1.88 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.88 | |||
Total return | 18.80 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.06 | %(3) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.85 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.09 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.88 | %(3) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.10 | )(2) | |||
Net realized and unrealized gain on investments | 1.97 | (2) | |||
Total from investment operations | 1.87 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.87 | |||
Total return | 18.80 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.03 | %(3) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.80 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.06 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.83 | %(3) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.04 | )(2) | |||
Net realized and unrealized gain on investments | 1.96 | (2) | |||
Total from investment operations | 1.92 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.92 | |||
Total return (3) | 19.20 | % | |||
Net assets, end of period (in thousands) | $238 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.20 | %(4) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.71 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.23 | %(4) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.74 | %(4) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.03 | )(2) | |||
Net realized and unrealized gain on investments | 1.97 | (2) | |||
Total from investment operations | 1.94 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.94 | |||
Total return | 19.40 | % | |||
Net assets, end of period (in thousands) | $239 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.94 | %(3) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.45 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.97 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.48 | %(3) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.04 | )(2) | |||
Net realized and unrealized gain on investments | 1.96 | (2) | |||
Total from investment operations | 1.92 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.92 | |||
Total return | 19.20 | % | |||
Net assets, end of period (in thousands) | $291 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.19 | %(3) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.76 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.22 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.79 | %(3) | |||
Portfolio turnover rate | 0 | %* |
*Not shown due to rounding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Portfolio Highlights
As a shareholder of Ivy Managed International Opportunities Fund, for every $100 you had invested on
September 30, 2007, your Fund owned:
Ivy International Balanced Fund, Class I | $ | 38.63 | |||
Ivy International Core Equity Fund, Class I | $ | 20.12 | |||
Ivy International Growth Fund, Class I | $ | 15.39 | |||
Ivy European Opportunities Fund, Class I | $ | 14.47 | |||
Ivy Pacific Opportunities Fund, Class I | $ | 11.26 | |||
Cash and Cash Equivalents | $ | 0.13 |
The Investments of Ivy Managed International Opportunities Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
AFFILIATED MUTUAL FUNDS | Shares | Value | ||||||
Ivy European Opportunities Fund, Class I | 193,551 | $ | 8,533,662 | |||||
Ivy International Balanced Fund, Class I | 1,289,772 | 22,790,277 | ||||||
Ivy International Core Equity Fund, Class I | 588,778 | 11,869,753 | ||||||
Ivy International Growth Fund, Class I | 224,773 | 9,078,596 | ||||||
Ivy Pacific Opportunities Fund, Class I | 283,617 | 6,642,308 | ||||||
TOTAL AFFILIATED MUTUAL FUNDS - 99.87% | $ | 58,914,596 | ||||||
(Cost: $55,696,326) | ||||||||
SHORT-TERM SECURITIES - 1.29% | Principal Amount in Thousands | |||||||
Repurchase Agreement | ||||||||
J.P. Morgan Securities, Inc., 3.85% Repurchase Agreement dated 9-28-07 to be repurchased at $759,244 on 10-1-07 (A) | $759 | $ | 759,000 | |||||
(Cost: $759,000) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.16% | $ | 59,673,596 | ||||||
(Cost: $56,455,326) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.16%) | (684,532 | ) | ||||||
NET ASSETS - 100.00% | $ | 58,989,064 | ||||||
Notes to Schedule of Investments |
(A)Collateralized by $652,000 United States Treasury Bond, 6.375% due 8-15-27; market value and accrued interest aggregate $779,167. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts (Unaudited)
ASSETS | ||||
Investment securities - at value (Notes 1 and 3): | ||||
Investments in affiliated mutual funds (cost - $55,696) | $ | 58,915 | ||
Repurchase agreement (cost - $759) | 759 | |||
59,674 | ||||
Cash | 1 | |||
Receivables: | ||||
Fund shares sold | 513 | |||
Interest | –– | * | ||
Prepaid and other assets | 56 | |||
Total assets | 60,244 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 1,233 | |||
Accrued shareholder servicing (Note 2) | 4 | |||
Payable to Fund shareholders | 3 | |||
Accrued accounting services fee (Note 2) | 2 | |||
Accrued distribution fee (Note 2) | 2 | |||
Accrued management fee (Note 2) | 2 | |||
Accrued service fee (Note 2) | 1 | |||
Other | 8 | |||
Total liabilities | 1,255 | |||
Total net assets | $ | 58,989 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 55,684 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 87 | |||
Accumulated undistributed net realized gain on investment transactions | –– | |||
Net unrealized appreciation in value of investments | 3,218 | |||
Net assets applicable to outstanding units of capital | $ | 58,989 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.25 | |||
Class B | $11.21 | |||
Class C | $11.22 | |||
Class E | $11.26 | |||
Class I | $11.27 | |||
Class Y | $11.26 | |||
Capital shares outstanding: | ||||
Class A | 4,787 | |||
Class B | 176 | |||
Class C | 203 | |||
Class E | 20 | |||
Class I | 20 | |||
Class Y | 38 |
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Operations
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
For the Period from April 2, 2007 through September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends from affiliated mutual funds | $ | 200 | ||
Interest and amortization | 18 | |||
Total income | 218 | |||
Expenses (Note 2): | ||||
Registration fees | 56 | |||
Service fee: | ||||
Class A | 31 | |||
Class B | 1 | |||
Class C | 2 | |||
Class Y | –– | * | ||
Shareholder servicing: | ||||
Class A | 9 | |||
Class B | 1 | |||
Class C | –– | * | ||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Distribution fee: | ||||
Class B | 4 | |||
Class C | 5 | |||
Class E | –– | * | ||
Investment management fee | 7 | |||
Accounting services fee | 6 | |||
Custodian fees | 2 | |||
Audit fees | –– | * | ||
Legal fees | –– | * | ||
Other | 8 | |||
Total | 132 | |||
Less voluntary waiver of investment management fee (Note 2) | (1 | ) | ||
Total expenses | 131 | |||
Net investment income | 87 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Unrealized appreciation in value of affiliated mutual funds during the period | 3,218 | |||
Net gain on investments | 3,218 | |||
Net increase in net assets resulting from operations | $ | 3,305 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the period from 4-2-07(1) through | ||||
---|---|---|---|---|
9-30-07 | ||||
INCREASE IN NET ASSETS | ||||
Operations: | ||||
Net investment income | $ | 87 | ||
Realized net gain on investments | –– | |||
Unrealized appreciation | 3,218 | |||
Net increase in net assets resulting from operations | 3,305 | |||
Distributions to shareholders from (Note 1F): (2) | ||||
Net investment income: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class E | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
Realized gains on investment transactions: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class E | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
(–– | ) | |||
Capital share transactions (Note 5) | 55,684 | |||
Total increase | 58,989 | |||
NET ASSETS | ||||
Beginning of period | –– | |||
End of period | $ | 58,989 | ||
Undistributed net investment income | $ | 87 | ||
(1)Commencement of operations.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income from investment operations: | |||||
Net investment income | 0.04 | (2) | |||
Net realized and unrealized gain on investments | 1.21 | (2) | |||
Total from investment operations | 1.25 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.25 | |||
Total return (3) | 12.50 | % | |||
Net assets, end of period (in millions) | $54 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.89 | %(4) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.68 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.90 | %(4) | |||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.67 | %(4) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.00 | )(2) | |||
Net realized and unrealized gain on investments | 1.21 | (2) | |||
Total from investment operations | 1.21 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.21 | |||
Total return | 12.20 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.69 | %(3) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.07 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.70 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.08 | %(3) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income from investment operations: | |||||
Net investment income | 0.00 | (2) | |||
Net realized and unrealized gain on investments | 1.22 | (2) | |||
Total from investment operations | 1.22 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.22 | |||
Total return | 12.20 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.63 | %(3) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.04 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.64 | %(3) | |||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.03 | %(3) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income from investment operations: | |||||
Net investment income | 0.04 | (2) | |||
Net realized and unrealized gain on investments | 1.22 | (2) | |||
Total from investment operations | 1.26 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.26 | |||
Total return (3) | 12.60 | % | |||
Net assets, end of period (in thousands) | $225 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.85 | %(4) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.77 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.86 | %(4) | |||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.76 | %(4) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income from investment operations: | |||||
Net investment income | 0.06 | (2) | |||
Net realized and unrealized gain on investments | 1.21 | (2) | |||
Total from investment operations | 1.27 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.27 | |||
Total return | 12.70 | % | |||
Net assets, end of period (in thousands) | $225 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.29 | %(3) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 1.02 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.30 | %(3) | |||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 1.01 | %(3) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income from investment operations: | |||||
Net investment income | 0.03 | (2) | |||
Net realized and unrealized gain on investments | 1.23 | (2) | |||
Total from investment operations | 1.26 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.26 | |||
Total return | 12.60 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.85 | %(3) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.61 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.86 | %(3) | |||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.60 | %(3) | |||
Portfolio turnover rate | 0 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MORTGAGE SECURITIES FUND
Portfolio Highlights
On September 30, 2007, Ivy Mortgage Securities Fund had net assets totaling
$344,476,317 invested in a diversified portfolio of:
56.27% | Corporate Bonds | |
38.53% | United States Government Agency Obligations | |
5.20% | Cash and Cash Equivalents |
On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:
AAA | 66.25 | % | |||
AA | 10.32 | % | |||
A | 5.15 | % | |||
BBB | 7.29 | % | |||
BB | 4.30 | % | |||
Non-Rated | 1.49 | % | |||
Cash and Cash Equivalents | 5.20 | % |
Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.
Certain U.S. government securities in which the Fund may invest, such as Treasury securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. However, other U.S. government securities in which the Fund may invest, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB) are not backed by the full faith and credit of the U.S. government, are not insured or guaranteed by the U.S. government and, instead, may be supported only by the right of the issuer to borrow from the U.S. Treasury or by the credit of the issuer.
The Investments of Ivy Mortgage Securities Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | Value | ||||||
Finance Companies | ||||||||
ABFS Mortgage Loan Trust: | ||||||||
2001-2, | ||||||||
6.99%, 12-25-31 (A) | $ | 1,074 | $ | 1,076,724 | ||||
2002-4, | ||||||||
7.423%, 12-15-33 (A) | 1,485 | 1,421,585 | ||||||
Aames Mortgage Trust 2001-4, | ||||||||
6.65%, 1-25-32 (A) | 501 | 481,633 | ||||||
Asset Securitization Corporation: | ||||||||
1.6136%, 10-13-26 (Interest Only) (A)(B) | 4,115 | 169,866 | ||||||
8.62125%, 8-13-29 (Interest Only) (A) | 1,384 | 329,330 | ||||||
7.66418%, 2-14-43 (A) | 1,430 | 1,556,925 | ||||||
Associates Manufactured Housing Contract Pass-Through Certificates, | ||||||||
7.9%, 3-15-27 | 1,313 | 1,340,166 | ||||||
Banc of America Alternative Loan Trust: | ||||||||
2004-11, | ||||||||
6.0%, 12-25-34 | 1,135 | 1,122,204 | ||||||
2005-6, | ||||||||
6.0%, 7-25-35 | 863 | 861,143 | ||||||
2005-8: | ||||||||
5.57587%, 9-25-35 (A) | 2,049 | 1,895,418 | ||||||
5.57587%, 9-25-35 (A) | 407 | 351,195 | ||||||
2005-10, | ||||||||
5.66892%, 11-25-35 (A) | 1,157 | 908,277 | ||||||
2005-12, | ||||||||
5.80813%, 1-25-36 (A) | 1,635 | 1,449,669 | ||||||
2006-4: | ||||||||
6.2253%, 5-25-46 (A) | 896 | 685,705 | ||||||
6.2253%, 5-25-46 (A) | 642 | 605,396 | ||||||
2006-6, | ||||||||
6.0%, 6-25-46 | 3,070 | 3,016,611 | ||||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates: | ||||||||
Series 2002-2, | ||||||||
6.2%, 7-11-43 (B) | 1,200 | 1,190,680 | ||||||
Series 2003-1, | ||||||||
4.9%, 9-11-36 (B) | 1,000 | 931,966 | ||||||
Series 2004-6, | ||||||||
5.104%, 12-10-42 (A)(B) | 800 | 733,458 | ||||||
Banc of America Commercial Mortgage Trust 2007-1, | ||||||||
5.451%, 1-15-49 | 1,000 | 987,194 | ||||||
Banc of America Funding 2004-2 Trust, | ||||||||
6.5%, 7-20-32 | 1,213 | 1,205,246 | ||||||
Banc of America Funding Corporation, | ||||||||
5.00739%, 9-20-34 (A) | 1,284 | 1,264,904 | ||||||
Banc of America Mortgage 2005-J Trust, | ||||||||
5.08948%, 11-25-35 (A) | 2,031 | 2,018,731 | ||||||
Banc of America Mortgage 2007-1 Trust: | ||||||||
6.0%, 3-25-37 | 3,618 | 3,398,794 | ||||||
6.0%, 3-25-37 | 1,000 | 973,750 | ||||||
Banc of America Mortgage Alternative Loan Trust 2003-5, | ||||||||
5.5%, 7-25-33 | 1,276 | 1,078,357 | ||||||
Banc of America Mortgage Trust: | ||||||||
2003-9, | ||||||||
5.5%, 12-25-33 | 816 | 636,052 | ||||||
2004-1, | ||||||||
5.5%, 2-25-34 | 1,910 | 1,722,614 | ||||||
2004-2: | ||||||||
5.0%, 3-25-19 | 299 | 287,756 | ||||||
5.0%, 3-25-19 | 233 | 220,311 | ||||||
5.5%, 3-25-34 | 471 | 430,041 | ||||||
2004-3: | ||||||||
4.875%, 4-25-19 | 403 | 383,930 | ||||||
4.875%, 4-25-19 | 216 | 201,884 | ||||||
2004-7, | ||||||||
5.75%, 8-25-34 | 1,106 | 1,091,981 | ||||||
Banc of America Structured Securities Trust 2002-X1 F, | ||||||||
6.274%, 10-11-33 (B) | 1,750 | 1,764,036 | ||||||
Banco Hipotecario Nacional: | ||||||||
7.916%, 7-25-09 (C) | 23 | 233 | ||||||
2.57%, 3-25-11 (C) | 10 | 100 | ||||||
7.54%, 5-31-17 (C) | - | * | 1 | |||||
BankAmerica Manufactured Housing Contract Trust: | ||||||||
7.8%, 10-10-26 | 2,000 | 2,043,964 | ||||||
7.015%, 1-10-28 | 1,041 | 1,054,148 | ||||||
Bear Stearns Commercial Mortgage Securities Inc.: | ||||||||
Series 2001-TOP2 Trust Fund, | ||||||||
7.49057%, 2-15-35 (A)(B) | 3,000 | 3,130,055 | ||||||
Series 2000-WF1 Trust Fund, | ||||||||
6.5%, 2-15-32 | 1,015 | 1,022,902 | ||||||
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6, | ||||||||
6.0%, 10-15-36 (B) | 938 | 936,422 | ||||||
Bear Stearns Mortgage Funding Trust 2006-SL2, | ||||||||
5.54125%, 9-25-36 (A) | 2,295 | 1,000,680 | ||||||
Bear Stearns Mortgage Securities Inc., | ||||||||
8.0%, 11-25-29 | 419 | 418,026 | ||||||
BlackRock Capital Finance, | ||||||||
7.75%, 9-25-26 (B) | 567 | 566,230 | ||||||
C-Bass: | ||||||||
2005-CB3 Trust, | ||||||||
5.109%, 12-25-34 (A) | 1,254 | 1,179,768 | ||||||
2006-CB2 Trust, | ||||||||
5.717%, 12-25-36 (A) | 394 | 392,561 | ||||||
2006-MH1 Trust, | ||||||||
5.97%, 9-25-36 (A)(B) | 1,444 | 1,467,222 | ||||||
Mortgage Loan Trust 2007-CB2, | ||||||||
5.891%, 2-25-37 (A) | 436 | 434,312 | ||||||
CHL Mortgage Pass-Through Trust: | ||||||||
2002-32, | ||||||||
5.5314%, 1-25-33 (A) | 1,381 | 1,308,461 | ||||||
2003-28, | ||||||||
4.15%, 8-25-33 | 1,500 | 1,422,028 | ||||||
2003-HYB2, | ||||||||
3.96935%, 7-19-33 (A) | 2,019 | 1,946,185 | ||||||
COMM 2006-CNL2, | ||||||||
5.5699%, 2-5-19 (A)(B) | 925 | 887,290 | ||||||
CSAB Mortgage-Backed Trust 2006-2, | ||||||||
6.08%, 9-25-36 (A) | 3,540 | 3,470,990 | ||||||
CSFB Commercial Mortgage Trust 2003-C4, | ||||||||
5.322%, 8-15-36 (A)(B) | 1,000 | 960,384 | ||||||
CWHEQ Home Equity Loan Trust, Series 2006-S3, | ||||||||
6.518%, 1-25-29 (A) | 2,135 | 2,065,044 | ||||||
Capital Auto Receivables Asset Trust: | ||||||||
2006-1, | ||||||||
7.16%, 1-15-13 (B) | 1,140 | 1,164,097 | ||||||
2007-2, | ||||||||
8.3%, 2-15-14 (B) | 1,105 | 1,179,405 | ||||||
Centex Home Equity Loan Trust 2005-C, | ||||||||
5.048%, 6-25-35 (A) | 2,301 | 2,223,044 | ||||||
Chase Mortgage Finance Trust: | ||||||||
Series 2003-S2, | ||||||||
5.0%, 3-25-18 | 1,646 | 1,624,174 | ||||||
Series 2003-S11, | ||||||||
5.5%, 10-25-33 | 867 | 841,844 | ||||||
Citicorp Residential Mortgage Trust Series 2006-2, | ||||||||
5.872%, 9-25-36 (A) | 1,217 | 1,211,071 | ||||||
CitiMortgage Alternative Loan Trust: | ||||||||
Series 2006-A7, | ||||||||
0.0%, 12-25-36 (D) | 3,417 | 3,363,250 | ||||||
Series 2007-A7, | ||||||||
6.23737%, 7-25-37 (A) | 644 | 410,905 | ||||||
Collateralized Mortgage Obligation Trust, | ||||||||
5.0%, 7-1-18 | 33 | 32,548 | ||||||
Commercial Mortgage Asset Trust, | ||||||||
7.8%, 11-17-32 (A) | 1,000 | 1,123,146 | ||||||
Conseco Finance Securitizations Corp., | ||||||||
6.981%, 6-15-32 | 1,035 | 976,442 | ||||||
CountryPlace Manufactured Housing Contract Trust 2005-1, | ||||||||
4.8%, 12-15-35 (A)(C) | 1,275 | 1,232,368 | ||||||
Countrywide Home Loans Alternative Loan Trust 2004-J9, | ||||||||
4.586%, 10-25-34 (A) | 1,984 | 1,968,716 | ||||||
Countrywide Home Loans, Inc. Asset-Backed Certificates, Series 2005-10, | ||||||||
4.915%, 2-25-36 (A) | 5,000 | 4,744,372 | ||||||
Credit Suisse Commercial Mortgage Trust Series 2006-C5, | ||||||||
5.311%, 12-15-39 | 1,000 | 981,401 | ||||||
Credit Suisse First Boston Mortgage Securities Corp., | ||||||||
6.0%, 11-25-18 | 473 | 475,524 | ||||||
DLJ Commercial Mortgage Corp. 1998-CG1, | ||||||||
7.35697%, 6-10-31 (A)(B) | 1,640 | 1,745,879 | ||||||
FFCA Secured Lending Corporation: | ||||||||
6.71375%, 2-18-22 (A)(C) | 1,500 | 1,425,904 | ||||||
6.96375%, 2-18-22 (A)(C) | 1,000 | 941,842 | ||||||
First Horizon Mortgage Pass-Through Trust 2003-8, | ||||||||
5.12611%, 10-25-33 (A) | 369 | 266,300 | ||||||
Flagstar Home Equity Loan Trust 2007-1, | ||||||||
5.997%, 1-25-35 (A)(C) | 1,630 | 1,589,736 | ||||||
Ford Credit Auto Owner Trust: | ||||||||
2006-B, | ||||||||
7.12%, 2-15-13 (B) | 635 | 616,952 | ||||||
2007-A, | ||||||||
7.05%, 12-15-13 (B) | 390 | 374,283 | ||||||
GMAC Commercial Mortgage Securities, | ||||||||
5.94%, 7-1-13 (B) | 131 | 128,653 | ||||||
GS Mortgage Securities Trust 2007-GG10, | ||||||||
5.93329%, 8-10-45 (A) | 1,500 | 1,525,522 | ||||||
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC: | ||||||||
5.25%, 4-25-32 | 780 | 709,902 | ||||||
5.39485%, 4-25-32 (A) | 1,214 | 1,049,308 | ||||||
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC: | ||||||||
5.25%, 11-25-32 (C) | 1,075 | 1,024,496 | ||||||
5.25%, 11-25-32 (C) | 501 | 481,315 | ||||||
Green Tree Financial Corporation: | ||||||||
7.65%, 4-15-19 | 683 | 712,035 | ||||||
8.3%, 11-15-19 | 500 | 521,883 | ||||||
9.1%, 4-15-25 | 1,075 | 1,121,981 | ||||||
9.0%, 6-15-25 | 1,052 | 1,104,004 | ||||||
Greenwich Capital Commercial Funding Corp., Commercial Mortgage Trust 2002-C1, | ||||||||
5.5%, 1-11-35 (B) | 780 | 746,915 | ||||||
Hilton Hotel Pool Trust: | ||||||||
6.165%, 10-3-15 (A)(B) | 500 | 493,816 | ||||||
7.653%, 10-3-15 (B) | 1,955 | 2,076,284 | ||||||
Home Equity Loan Trust 2003-HS2, | ||||||||
5.09%, 7-25-33 (A) | 178 | 168,340 | ||||||
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1, | ||||||||
5.506%, 11-11-38 (C) | 2,091 | 2,079,393 | ||||||
Impac CMB Trust Series 2003-2F, | ||||||||
6.0%, 1-25-33 (A) | 893 | 636,382 | ||||||
J.P. Morgan Alternative Loan Trust 2005-S1 Mortgage Pass-Through Certificates, Series 2005-S1, | ||||||||
6.0%, 12-25-35 | 998 | 988,868 | ||||||
J.P. Morgan Alternative Loan Trust 2006-A6, | ||||||||
5.95%, 11-25-36 (A) | 2,500 | 2,497,758 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities Corp., | ||||||||
6.2207%, 10-12-37 (B) | 2,300 | 2,341,995 | ||||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2007-LDP10, | ||||||||
5.42%, 1-15-49 | 3,000 | 2,955,937 | ||||||
J.P. Morgan Mortgage Acquisition Trust: | ||||||||
2006-CW2, | ||||||||
6.337%, 8-25-36 (A) | 2,725 | 2,711,729 | ||||||
2006-WF1, | ||||||||
6.41%, 7-25-36 (A) | 2,510 | 2,502,625 | ||||||
J.P. Morgan Mortgage Trust: | ||||||||
2004-A3, | ||||||||
4.29236%, 7-25-34 (A) | 1,399 | 1,364,468 | ||||||
2005-S2: | ||||||||
5.67065%, 9-25-35 (A) | 2,231 | 2,041,903 | ||||||
6.5%, 9-25-35 | 2,310 | 2,343,268 | ||||||
2006-A2: | ||||||||
3.75609%, 11-25-33 (A) | 1,551 | 1,529,560 | ||||||
3.8175%, 8-25-34 (A) | 2,128 | 2,074,864 | ||||||
2006-A6, | ||||||||
6.04729%, 10-25-36 (A) | 2,510 | 2,582,748 | ||||||
2006-S3: | ||||||||
6.187%, 8-25-36 | 1,200 | 1,097,503 | ||||||
6.5%, 8-25-36 | 1,810 | 1,801,689 | ||||||
2007-A1, | ||||||||
4.82%, 7-25-35 (A) | 2,188 | 2,080,856 | ||||||
2007-A2, | ||||||||
5.7161%, 4-25-37 (A) | 3,519 | 3,518,621 | ||||||
LB-UBS Commercial Mortgage Trust 2003-C3, | ||||||||
4.846%, 2-15-37 (A)(B) | 300 | 278,866 | ||||||
Lehman Mortgage Trust Mortgage Pass-Through Certificates, Series 2006-5, | ||||||||
6.88956%, 9-25-36 (A) | 2,004 | 1,952,420 | ||||||
Lehman XS Trust, Series 2005-8, | ||||||||
5.69%, 12-25-35 | 3,057 | 3,030,779 | ||||||
MASTR Asset Securitization Trust: | ||||||||
2003-10, | ||||||||
5.5%, 11-25-33 | 1,442 | 1,400,775 | ||||||
2003-6, | ||||||||
5.5%, 7-25-33 | 1,677 | 1,618,507 | ||||||
Metropolitan Asset Funding, Inc., | ||||||||
6.98%, 5-20-12 (B) | 9 | 9,400 | ||||||
Mid-State Capital Corporation 2004-1 Trust: | ||||||||
6.005%, 8-15-37 | 334 | 342,272 | ||||||
6.497%, 8-15-37 | 1,215 | 1,234,604 | ||||||
Morgan Stanley Capital I Trust 2003-IQ5, | ||||||||
5.93473%, 4-15-38 (A)(B) | 2,348 | 2,215,119 | ||||||
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1, | ||||||||
6.51994%, 4-25-17 (A) | 261 | 260,929 | ||||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: | ||||||||
1.09475%, 11-28-35 (Interest Only) (A)(C) | 30,757 | 692,029 | ||||||
5.88%, 11-28-35 (A)(C) | 680 | 652,821 | ||||||
5.88%, 11-28-35 (A)(C) | 340 | 333,838 | ||||||
Multi Security Asset Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-RR4, | ||||||||
5.0%, 11-28-35 (C) | 2,000 | 1,957,500 | ||||||
NationsLink Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-2, | ||||||||
5.0%, 8-20-30 (B) | 1,000 | 966,132 | ||||||
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series1998-D6, | ||||||||
6.0%, 3-15-30 (B) | 2,250 | 2,302,955 | ||||||
Oakwood Mortgage Investors, Inc.: | ||||||||
8.1%, 10-15-21 (B) | 310 | 312,536 | ||||||
7.375%, 8-15-27 | 287 | 289,605 | ||||||
Origen Manufactured Housing Contract Trust: | ||||||||
2004-A, | ||||||||
5.7%, 1-15-35 | 543 | 527,502 | ||||||
2004-B, | ||||||||
4.75%, 8-15-21 | 400 | 386,809 | ||||||
2005-A, | ||||||||
4.97%, 10-15-21 | 935 | 926,020 | ||||||
Trust 2005-B: | ||||||||
5.605%, 5-15-22 | 360 | 361,838 | ||||||
5.91%, 1-15-37 | 700 | 693,306 | ||||||
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2, | ||||||||
6.0%, 2-25-37 | 1,563 | 1,379,008 | ||||||
Prudential Home Mortgage Securities: | ||||||||
6.98002%, 9-28-08 (A)(B) | 3 | 2,994 | ||||||
6.73%, 4-28-24 (A)(C) | 3 | 3,262 | ||||||
8.04423%, 9-28-24 (A)(B) | 24 | 23,668 | ||||||
RALI Series: | ||||||||
2003-QS10 Trust, | ||||||||
5.5%, 5-25-33 | 2,202 | 2,144,510 | ||||||
2003-QS11 Trust, | ||||||||
5.75%, 6-25-33 | 2,495 | 2,391,758 | ||||||
RAMP Series 2005-RS1 Trust, | ||||||||
5.145%, 1-25-35 (A) | 1,075 | 921,509 | ||||||
RASC Series 2003-KS10 Trust, | ||||||||
6.41%, 12-25-33 | 313 | 261,335 | ||||||
RESI Finance Limited Partnership 2003-C and RESI Finance DE Corporation 2003-C, | ||||||||
7.22%, 9-10-35 (A)(C) | 1,427 | 1,402,600 | ||||||
RFMSI Series 2004-S5 Trust: | ||||||||
4.5%, 5-25-19 | 337 | 315,659 | ||||||
4.5%, 5-25-19 | 168 | 154,346 | ||||||
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, | ||||||||
7.75%, 12-25-30 (A) | 1,202 | 1,241,170 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21, | ||||||||
5.4%, 11-25-35 (A) | 1,575 | 1,527,750 | ||||||
Structured Asset Mortgage Investments, Inc.: | ||||||||
5.85515%, 4-30-30 (A) | 19 | 19,281 | ||||||
5.85515%, 4-30-30 (A) | 9 | 8,786 | ||||||
Structured Asset Securities Corporation: | ||||||||
5.54%, 11-25-32 (A) | 225 | 224,362 | ||||||
5.25%, 8-25-33 | 1,311 | 1,207,502 | ||||||
5.25%, 8-25-33 | 571 | 511,764 | ||||||
5.63%, 5-25-34 (A) | 811 | 807,619 | ||||||
6.0%, 6-25-34 (A) | 2,247 | 2,253,115 | ||||||
Vanderbilt Mortgage and Finance, Inc.: | ||||||||
7.955%, 12-7-24 | 657 | 692,369 | ||||||
7.525%, 11-7-26 | 915 | 914,784 | ||||||
Wachovia Bank Commercial Mortgage Trust (The), | ||||||||
4.942%, 11-15-34 (B) | 964 | 881,421 | ||||||
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2002-MS11 Trust, | ||||||||
5.60537%, 12-25-32 (A) | 958 | 905,393 | ||||||
Wells Fargo Alternative Loan 2007-PA3 Trust: | ||||||||
5.75%, 7-25-37 | 1,079 | 997,648 | ||||||
6.20114%, 7-25-37 (A) | 1,787 | 1,622,121 | ||||||
6.20114%, 7-25-37 (A) | 1,563 | 1,300,973 | ||||||
Wells Fargo Mortgage Backed Securities: | ||||||||
2003-2 Trust, | ||||||||
5.25%, 2-25-18 | 269 | 249,694 | ||||||
2003-4 Trust, | ||||||||
5.5%, 6-25-33 | 938 | 814,603 | ||||||
2003-9 Trust, | ||||||||
5.25%, 8-25-33 (B) | 1,135 | 838,283 | ||||||
2004-1 Trust (The), | ||||||||
5.5%, 2-25-34 | 1,636 | 1,537,284 | ||||||
2005-16 Trust, | ||||||||
5.75%, 1-25-36 | 500 | 482,751 | ||||||
TOTAL CORPORATE DEBT SECURITIES - 56.27% | $ | 193,814,246 | ||||||
(Cost: $200,401,875) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | ||||||||
---|---|---|---|---|---|---|---|---|
Agency Obligations - 0.20% | ||||||||
Federal Home Loan Mortgage Corporation, | ||||||||
2.75%, 3-15-08 (E) | 200 | 198,062 | ||||||
Federal National Mortgage Association, | ||||||||
5.0%, 9-15-08 (E) | 500 | 503,212 | ||||||
701,274 | ||||||||
Mortgage-Backed Obligations - 38.33% | ||||||||
Federal Home Loan Mortgage Corporation Adjustable Rate Participation Certificates, | ||||||||
9.97667%, 3-15-09 (A) | 358 | 364,152 | ||||||
Federal Home Loan Mortgage Corporation Agency REMIC/CMO, | ||||||||
5.0%, 6-15-31 | 2,000 | 1,932,939 | ||||||
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates: | ||||||||
5.5%, 12-1-17 | 679 | 679,919 | ||||||
5.5%, 9-1-19 | 1,172 | 1,170,070 | ||||||
3.5%, 2-15-30 | 1,826 | 1,740,549 | ||||||
6.5%, 9-1-32 | 1,119 | 1,152,776 | ||||||
5.3%, 1-15-33 | 206 | 198,728 | ||||||
5.0%, 7-15-33 | 2,080 | 1,977,794 | ||||||
5.5%, 5-1-34 | 837 | 821,812 | ||||||
5.5%, 5-1-34 | 1,240 | 1,218,331 | ||||||
6.5%, 5-1-34 | 805 | 822,301 | ||||||
5.5%, 10-1-34 | 994 | 975,381 | ||||||
5.0%, 5-15-35 | 2,196 | 2,010,326 | ||||||
5.5%, 7-1-35 | 2,775 | 2,720,281 | ||||||
5.0%, 8-1-35 | 897 | 856,818 | ||||||
5.5%, 10-1-35 | 1,628 | 1,597,680 | ||||||
5.0%, 12-1-35 | 843 | 805,446 | ||||||
6.0%, 10-1-37 | 1,000 | 1,000,938 | ||||||
Federal National Mortgage Association Adjustable Rate Pass-Through Certificates, | ||||||||
4.659%, 7-1-35 (A) | 1,239 | 1,224,979 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.0%, 1-1-18 | 432 | 437,881 | ||||||
5.5%, 2-1-18 | 426 | 426,876 | ||||||
5.5%, 3-1-18 | 1,968 | 1,969,152 | ||||||
5.0%, 5-1-18 | 1,339 | 1,317,165 | ||||||
5.0%, 10-1-18 | 1,324 | 1,301,490 | ||||||
5.5%, 9-1-19 | 343 | 342,501 | ||||||
5.5%, 10-1-20 | 5,300 | 5,286,750 | ||||||
5.5%, 2-1-24 | 509 | 504,108 | ||||||
6.0%, 8-1-29 | 414 | 417,331 | ||||||
7.0%, 11-1-31 | 198 | 207,195 | ||||||
6.5%, 2-1-32 | 139 | 142,959 | ||||||
6.5%, 2-1-32 | 124 | 127,352 | ||||||
6.5%, 2-1-32 | 180 | 185,902 | ||||||
7.0%, 2-1-32 | 248 | 259,434 | ||||||
7.0%, 3-1-32 | 338 | 353,465 | ||||||
6.5%, 4-1-32 | 76 | 77,851 | ||||||
6.5%, 5-1-32 | 133 | 136,754 | ||||||
6.5%, 5-1-32 | 88 | 89,732 | ||||||
6.5%, 7-1-32 | 662 | 681,788 | ||||||
6.0%, 9-1-32 | 150 | 151,874 | ||||||
6.5%, 9-1-32 | 79 | 81,169 | ||||||
6.0%, 10-1-32 | 979 | 988,261 | ||||||
6.0%, 10-1-32 | 945 | 953,533 | ||||||
6.5%, 10-1-32 | 63 | 64,973 | ||||||
6.0%, 11-1-32 | 826 | 833,749 | ||||||
6.0%, 11-1-32 | 485 | 489,630 | ||||||
6.0%, 3-1-33 | 1,259 | 1,270,099 | ||||||
6.0%, 3-1-33 | 1,159 | 1,169,045 | ||||||
6.0%, 3-1-33 | 817 | 824,796 | ||||||
6.0%, 3-1-33 | 248 | 249,778 | ||||||
5.5%, 4-1-33 | 1,694 | 1,665,468 | ||||||
5.5%, 5-1-33 | 544 | 534,458 | ||||||
5.5%, 5-1-33 | 290 | 285,313 | ||||||
6.0%, 6-1-33 | 2,722 | 2,735,438 | ||||||
6.5%, 8-1-33 | 44 | 45,396 | ||||||
6.0%, 10-1-33 | 267 | 268,347 | ||||||
5.0%, 11-1-33 | 1,709 | 1,635,790 | ||||||
6.0%, 12-1-33 | 513 | 516,463 | ||||||
5.0%, 1-1-34 | 1,644 | 1,573,811 | ||||||
5.5%, 1-1-34 | 1,498 | 1,470,549 | ||||||
5.0%, 3-1-34 | 963 | 921,439 | ||||||
5.0%, 3-1-34 | 406 | 388,731 | ||||||
5.5%, 3-1-34 | 2,241 | 2,203,683 | ||||||
5.5%, 4-1-34 | 1,932 | 1,899,382 | ||||||
5.5%, 4-1-34 | 1,577 | 1,547,548 | ||||||
5.5%, 4-1-34 | 610 | 599,111 | ||||||
5.0%, 5-1-34 | 186 | 178,171 | ||||||
5.5%, 7-1-34 | 1,793 | 1,762,068 | ||||||
6.0%, 8-1-34 | 633 | 634,861 | ||||||
5.5%, 9-1-34 | 1,270 | 1,247,000 | ||||||
6.0%, 9-1-34 | 841 | 844,349 | ||||||
6.5%, 9-1-34 | 985 | 1,006,150 | ||||||
5.5%, 10-1-34 | 7,125 | 6,978,047 | ||||||
5.5%, 10-1-34 | 1,929 | 1,895,129 | ||||||
6.0%, 10-1-34 | 1,000 | 1,001,250 | ||||||
5.5%, 11-1-34 | 716 | 702,822 | ||||||
6.0%, 11-1-34 | 397 | 398,821 | ||||||
6.5%, 11-1-34 | 73 | 74,115 | ||||||
6.0%, 12-1-34 | 2,389 | 2,397,766 | ||||||
5.5%, 1-1-35 | 635 | 622,664 | ||||||
4.5%, 2-1-35 | 468 | 434,725 | ||||||
5.5%, 2-1-35 | 2,364 | 2,320,913 | ||||||
5.5%, 2-1-35 | 1,911 | 1,877,497 | ||||||
5.5%, 2-1-35 | 1,111 | 1,090,597 | ||||||
6.5%, 3-1-35 | 1,199 | 1,227,755 | ||||||
6.0%, 4-1-35 | 1,681 | 1,684,630 | ||||||
6.0%, 6-1-35 | 2,713 | 2,722,985 | ||||||
5.0%, 7-1-35 | 801 | 764,893 | ||||||
5.5%, 7-1-35 | 796 | 780,938 | ||||||
5.5%, 10-1-35 | 1,700 | 1,669,213 | ||||||
5.5%, 10-1-35 | 943 | 926,091 | ||||||
5.5%, 2-1-36 | 1,638 | 1,587,864 | ||||||
6.5%, 2-1-36 | 673 | 685,382 | ||||||
6.5%, 6-1-36 | 1,234 | 1,256,430 | ||||||
6.0%, 8-1-36 | 2,057 | 2,060,596 | ||||||
6.5%, 10-1-36 | 2,935 | 2,988,197 | ||||||
6.0%, 11-1-36 | 2,307 | 2,310,346 | ||||||
6.0%, 5-1-37 | 988 | 989,542 | ||||||
6.5%, 8-1-37 | 1,990 | 2,026,030 | ||||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only): | ||||||||
1.13796%, 3-16-34 (A) | 7,622 | 302,696 | ||||||
0.84617%, 7-16-40 (A) | 3,952 | 127,564 | ||||||
0.25135%, 3-16-42 (A) | 15,044 | 159,687 | ||||||
0.93645%, 6-17-45 (A) | 19,635 | 1,000,993 | ||||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
7.875%, 5-15-17 | 621 | 678,023 | ||||||
6.25%, 7-15-24 | 283 | 289,361 | ||||||
5.5%, 3-16-32 | 4,575 | 4,562,096 | ||||||
5.0%, 7-15-33 | 1,014 | 982,278 | ||||||
5.0%, 7-15-34 | 883 | 855,642 | ||||||
5.0%, 10-1-34 | 700 | 677,032 | ||||||
5.5%, 12-15-34 | 1,030 | 1,016,267 | ||||||
5.5%, 12-15-34 | 601 | 593,171 | ||||||
5.0%, 1-15-35 | 1,758 | 1,701,578 | ||||||
5.5%, 10-1-35 | 3,000 | 2,957,814 | ||||||
5.0%, 12-15-35 | 1,940 | 1,877,602 | ||||||
6.0%, 10-1-36 | 1,875 | 1,886,719 | ||||||
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust: | ||||||||
1995-1 Class 1, | ||||||||
7.20763%, 2-15-25 (A) | 225 | 237,077 | ||||||
1995-1 Class 2, | ||||||||
7.7925%, 2-15-25 | 72 | 76,592 | ||||||
132,034,769 | ||||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 38.53% | $ | 132,736,043 | ||||||
(Cost: $135,428,208) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper | ||||||||
Chemicals - Petroleum and Inorganic - 1.45% | ||||||||
E.I. du Pont de Nemours and Company, | ||||||||
4.75%, 10-9-07 | 5,000 | 4,994,722 | ||||||
Finance Companies - 0.87% | ||||||||
Prudential Funding LLC, | ||||||||
5.15%, 10-11-07 | 3,000 | 2,995,708 | ||||||
Food and Related - 1.88% | ||||||||
ConAgra Foods, Inc., | ||||||||
5.23%, 10-3-07 | 1,500 | 1,499,564 | ||||||
General Mills, Inc., | ||||||||
5.31%, 10-10-07 | 5,000 | 4,993,363 | ||||||
6,492,927 |
Health Care - Drugs - 1.74% | ||||||||
GlaxoSmithKline Finance plc, | ||||||||
5.4%, 10-5-07 | 6,000 | 5,996,400 | ||||||
Household - General Products - 2.03% | ||||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)): | ||||||||
5.2%, 10-9-07 | 4,000 | 3,995,378 | ||||||
4.8%, 10-17-07 | 3,000 | 2,993,600 | ||||||
6,988,978 | ||||||||
Leisure Time Industry - 1.45% | ||||||||
Walt Disney Company (The), | ||||||||
5.365%, 10-3-07 | 5,000 | 4,998,510 | ||||||
Mining - 1.07% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | ||||||||
5.0%, 10-1-07 | 3,675 | 3,675,000 | ||||||
Publishing - 0.58% | ||||||||
Gannett Co., Inc., | ||||||||
5.35%, 10-25-07 | 2,000 | 1,992,867 | ||||||
Total Commercial Paper - 11.07% | 38,135,112 | |||||||
Commercial Paper (backed by irrevocable bank letter of credit) - 0.58% | ||||||||
Finance Companies | ||||||||
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)), | ||||||||
5.0%, 10-2-07 | 2,000 | 1,999,722 | ||||||
TOTAL SHORT-TERM SECURITIES - 11.65% | $ | 40,134,834 | ||||||
(Cost: $40,134,834) | ||||||||
TOTAL INVESTMENT SECURITIES - 106.45% | $ | 366,685,123 | ||||||
(Cost: $375,964,917) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (6.45%) | (22,208,806 | ) | ||||||
NET ASSETS - 100.00% | $ | 344,476,317 | ||||||
Notes to Schedule of Investments | |||||||||||||
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. | |||||||||||||
*Not shown due to rounding. | |||||||||||||
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. | |||||||||||||
(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $31,437,262 or 9.13% of net assets. | |||||||||||||
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $13,817,438 or 4.01% of net assets. | |||||||||||||
(D)This security does not bear interest for an initial period of time and subsequently becomes interest bearing. | |||||||||||||
(E)Securities serve as collateral for the following open futures contracts at September 30, 2007. (See Note 7 to financial statements): | |||||||||||||
Description | Type | Expiration Date | Number of Contracts | Market Value | Unrealized Appreciation (Depreciation | ) | |||||||
United States 5 Year Treasury Note | Short | 12-31-07 | 6 | $ | 642,188 | $ | (4,436 | ) | |||||
United States 10 Year Treasury Note | Short | 12-19-07 | 97 | 10,600,281 | 41,577 | ||||||||
$ | 11,242,469 | $ | 37,141 | ||||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | |||||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY MORTGAGE SECURITIES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $375,965) (Notes 1 and 3) | $ | 366,685 | ||
Receivables: | ||||
Interest | 1,532 | |||
Fund shares sold | 656 | |||
Variation margin (Note 7) | 9 | |||
Prepaid and other assets | 43 | |||
Total assets | 368,925 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 22,897 | |||
Payable to Fund shareholders | 610 | |||
Due to custodian | 309 | |||
Accrued management fee (Note 2) | 139 | |||
Dividends payable | 130 | |||
Accrued service fee (Note 2) | 127 | |||
Accrued shareholder servicing (Note 2) | 102 | |||
Accrued distribution fee (Note 2) | 20 | |||
Accrued accounting services fee (Note 2) | 9 | |||
Other | 106 | |||
Total liabilities | 24,449 | |||
Total net assets | $ | 344,476 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 355,140 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | –– | |||
Accumulated undistributed net realized loss on investment transactions | (1,421 | ) | ||
Net unrealized depreciation in value of investments | (9,243 | ) | ||
Net assets applicable to outstanding units of capital | $ | 344,476 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $10.39 | |||
Class B | $10.39 | |||
Class C | $10.39 | |||
Class E | $10.39 | |||
Class I | $10.39 | |||
Class Y | $10.39 | |||
Capital shares outstanding: | ||||
Class A | 28,759 | |||
Class B | 1,281 | |||
Class C | 1,889 | |||
Class E | 17 | |||
Class I | 24 | |||
Class Y | 1,188 |
See Notes to Financial Statements.
Statement of Operations
IVY MORTGAGE SECURITIES FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 9,876 | ||
Expenses (Note 2): | ||||
Investment management fee | 834 | |||
Shareholder servicing: | ||||
Class A | 378 | |||
Class B | 30 | |||
Class C | 29 | |||
Class E | 1 | |||
Class I | –– | * | ||
Class Y | 10 | |||
Service fee: | ||||
Class A | 350 | |||
Class B | 15 | |||
Class C | 24 | |||
Class Y | 16 | |||
Distribution fee: | ||||
Class A | 11 | |||
Class B | 45 | |||
Class C | 73 | |||
Class E | –– | * | ||
Accounting services fee | 53 | |||
Audit fees | 15 | |||
Custodian fees | 15 | |||
Legal fees | 4 | |||
Other | 121 | |||
Total expenses | 2,024 | |||
Net investment income | 7,852 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net loss on securities | (568 | ) | ||
Realized net gain on futures | 87 | |||
Realized net loss on investments | (481 | ) | ||
Unrealized depreciation in value of securities during the period | (5,779 | ) | ||
Unrealized appreciation in value of futures contracts during the period | 46 | |||
Unrealized depreciation in value of investments during the period | (5,733 | ) | ||
Net loss on investments | (6,214 | ) | ||
Net increase in net assets resulting from operations | $ | 1,638 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MORTGAGE SECURITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | |||||||
---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 7,852 | $ | 14,172 | ||||
Realized net loss on investments | (481 | ) | (111 | ) | ||||
Unrealized appreciation (depreciation) | (5,733 | ) | 3,634 | |||||
Net increase in net assets resulting from operations | 1,638 | 17,695 | ||||||
Distributions to shareholders from (Note 1F): (1) | ||||||||
Net investment income: | ||||||||
Class A | (6,900 | ) | (12,512 | ) | ||||
Class B | (230 | ) | (422 | ) | ||||
Class C | (388 | ) | (765 | ) | ||||
Class E | (3 | ) | NA | |||||
Class I | (6 | ) | NA | |||||
Class Y | (325 | ) | (473 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
(7,852 | ) | (14,172 | ) | |||||
Capital share transactions (Note 5) | 29,187 | 38,091 | ||||||
Total increase | 22,973 | 41,614 | ||||||
NET ASSETS | ||||||||
Beginning of period | 321,503 | 279,889 | ||||||
End of period | $ | 344,476 | $ | 321,503 | ||||
Undistributed net investment income | $ | –– | $ | –– | ||||
(1)See "Financial Highlights" on pages 220 - 225.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended September 30, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.97 | $ | 11.07 | $ | 10.99 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.25 | 0.51 | 0.48 | 0.49 | 0.25 | 0.59 | 0.70 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.03 | (0.12 | ) | 0.11 | |||||||||||||
Total from investment operations | 0.05 | 0.66 | 0.24 | 0.22 | 0.28 | 0.47 | 0.81 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.25 | ) | (0.51 | ) | (0.48 | ) | (0.49 | ) | (0.25 | ) | (0.57 | ) | (0.72 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Tax return of capital | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | ||||||||||
Total distributions | (0.25 | ) | (0.51 | ) | (0.48 | ) | (0.50 | ) | (0.29 | ) | (0.57 | ) | (0.73 | ) | ||||||||||
Net asset value, end of period | $ | 10.39 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.97 | $ | 11.07 | ||||||||||
Total return(1) | 0.50 | % | 6.52 | % | 2.24 | % | 2.12 | % | 2.70 | % | 4.19 | %(2) | 7.88 | % | ||||||||||
Net assets, end of period (in millions) | $299 | $278 | $243 | $188 | $134 | $91 | $67 | |||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.14 | %(3) | 1.14 | % | 1.05 | % | 0.95 | % | 1.05 | %(3)(4) | 0.97 | % | 0.95 | % | ||||||||||
Ratio of net investment income to average net assets including reimbursement | 4.78 | %(3) | 4.90 | % | 4.51 | % | 4.59 | % | 4.56 | %(3)(4) | 5.27 | % | 6.24 | % | ||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.14 | %(3)(5) | 1.14 | %(5) | 1.16 | % | 1.23 | % | 1.38 | %(3)(4) | 1.12 | % | 1.21 | % | ||||||||||
Ratio of net investment income to average net assets excluding reimbursement | 4.78 | %(3)(5) | 4.90 | %(5) | 4.40 | % | 4.31 | % | 4.22 | %(3)(4) | 5.12 | % | 5.98 | % | ||||||||||
Portfolio turnover rate | 48 | % | 121 | % | 154 | % | 200 | % | 57 | % | 83 | % | 99 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.20 | 0.40 | 0.36 | 0.37 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | ||||||||||||
Total from investment operations | 0.00 | 0.55 | 0.12 | 0.10 | 0.25 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.40 | ) | (0.36 | ) | (0.37 | ) | (0.12 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | ||||||||||
Total distributions | (0.20 | ) | (0.40 | ) | (0.36 | ) | (0.38 | ) | (0.16 | ) | ||||||||||
Net asset value, end of period | $ | 10.39 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | ||||||||||
Total return | 0.01 | % | 5.45 | % | 1.12 | % | 0.92 | % | 2.32 | % | ||||||||||
Net assets, end of period (in millions) | $13 | $12 | $11 | $7 | $1 | |||||||||||||||
Ratio of expenses to average net assets | 2.12 | %(2) | 2.16 | % | 2.16 | % | 2.16 | % | 1.89 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 3.80 | %(2) | 3.88 | % | 3.41 | % | 3.29 | % | 3.59 | %(2) | ||||||||||
Portfolio turnover rate | 48 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.21 | 0.42 | 0.38 | 0.38 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | ||||||||||||
Total from investment operations | 0.01 | 0.57 | 0.14 | 0.11 | 0.25 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.21 | ) | (0.42 | ) | (0.38 | ) | (0.38 | ) | (0.12 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | ||||||||||
Total distributions | (0.21 | ) | (0.42 | ) | (0.38 | ) | (0.39 | ) | (0.16 | ) | ||||||||||
Net asset value, end of period | $ | 10.39 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | ||||||||||
Total return | 0.11 | % | 5.69 | % | 1.34 | % | 1.05 | % | 2.32 | % | ||||||||||
Net assets, end of period (in millions) | $20 | $19 | $19 | $12 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 1.92 | %(2) | 1.93 | % | 1.93 | % | 2.03 | % | 1.86 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 4.00 | %(2) | 4.11 | % | 3.63 | % | 3.41 | % | 3.61 | %(2) | ||||||||||
Portfolio turnover rate | 48 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.59 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.24 | (2) | |||
Net realized and unrealized loss on investments | (0.20 | )(2) | |||
Total from investment operations | 0.04 | ||||
Less distributions from: | |||||
Net investment income | (0.24 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.24 | ) | |||
Net asset value, end of period | $ | 10.39 | |||
Total return(3) | 0.37 | % | |||
Net assets, end of period (in thousands) | $179 | ||||
Ratio of expenses to average net assets | 1.29 | %(4) | |||
Ratio of net investment income to average net assets | 4.62 | %(4) | |||
Portfolio turnover rate | 48 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.59 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.31 | (2) | |||
Net realized and unrealized loss on investments | (0.20 | )(2) | |||
Total from investment operations | 0.11 | ||||
Less distributions from: | |||||
Net investment income | (0.31 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.31 | ) | |||
Net asset value, end of period | $ | 10.39 | |||
Total return | 1.00 | % | |||
Net assets, end of period (in thousands) | $256 | ||||
Ratio of expenses to average net assets | 0.79 | %(3) | |||
Ratio of net investment income to average net assets | 5.13 | %(3) | |||
Portfolio turnover rate | 48 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.25 | 0.52 | 0.48 | 0.48 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | ||||||||||||
Total from investment operations | 0.05 | 0.67 | 0.24 | 0.21 | 0.28 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.25 | ) | (0.52 | ) | (0.48 | ) | (0.48 | ) | (0.15 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | ||||||||||
Total distributions | (0.25 | ) | (0.52 | ) | (0.48 | ) | (0.49 | ) | (0.19 | ) | ||||||||||
Net asset value, end of period | $ | 10.39 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | ||||||||||
Total return | 0.57 | % | 6.66 | % | 2.26 | % | 1.95 | % | 2.56 | % | ||||||||||
Net assets, end of period (in millions) | $12 | $13 | $7 | $6 | $3 | |||||||||||||||
Ratio of expenses to average net assets | 1.01 | %(2) | 1.00 | % | 1.03 | % | 1.12 | % | 1.09 | %(2) | ||||||||||
Ratio of net investment income to average net assets | 4.92 | %(2) | 5.04 | % | 4.53 | % | 4.41 | % | 4.38 | %(2) | ||||||||||
Portfolio turnover rate | 48 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY PACIFIC OPPORTUNITIES FUND
Portfolio Highlights
On September 30, 2007, Ivy Pacific Opportunities Fund had net assets totaling
$666,587,513 invested in a diversified portfolio of:
94.57% | Foreign Common Stocks and Investment Funds | |
5.43% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by country and by industry, respectively, as follows:
Country Weightings
South Korea | $ | 21.67 | |||
China | $ | 20.22 | |||
Taiwan | $ | 10.89 | |||
Hong Kong | $ | 7.81 | |||
India | $ | 7.78 | |||
Singapore | $ | 7.42 | |||
Cayman Islands | $ | 6.52 | |||
Cash and Cash Equivalents | $ | 5.43 | |||
Bermuda | $ | 2.85 | |||
Malaysia | $ | 2.83 | |||
Other Pacific Basin (1) | $ | 2.57 | |||
Indonesia | $ | 2.52 | |||
Other (2) | $ | 1.49 |
(1)Includes $1.63 Australia, $0.10 Philippines and $0.84 Thailand.
(2)Includes $0.36 Canada and $1.13 United Kingdom.
Sector Weightings
Financial Services Stocks | $ | 18.79 | |||
Raw Materials Stocks | $ | 11.57 | |||
Capital Goods Stocks | $ | 10.38 | |||
Business Equipment and Services Stocks | $ | 9.00 | |||
Technology Stocks | $ | 8.87 | |||
Utilities Stocks | $ | 7.79 | |||
Shelter Stocks | $ | 6.51 | |||
Multi-Industry Stocks | $ | 5.89 | |||
Cash and Cash Equivalents | $ | 5.43 | |||
Energy Stocks | $ | 5.38 | |||
Retail Stocks | $ | 4.58 | |||
Consumer Nondurables Stocks | $ | 3.30 | |||
Miscellaneous Stocks | $ | 2.51 |
The Investments of Ivy Pacific Opportunities Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Australia - 1.63% | ||||||||
Rio Tinto Limited (A) | 113,430 | $ | 10,892,581 | |||||
Bermuda - 2.85% | ||||||||
China Yurun Food Group Limited (A) | 5,000,000 | 7,203,638 | ||||||
Enerchina Holdings Limited (A)* | 56,718,000 | 3,210,240 | ||||||
REXCAPITAL Financial Holdings Limited (A)* | 52,975,000 | 8,586,286 | ||||||
Wah Sang Gas Holdings Limited (A)(B)* | 736,000 | 15,148 | ||||||
19,015,312 | ||||||||
Canada - 0.36% | ||||||||
Canadian Solar Inc.* | 250,000 | 2,393,750 | ||||||
Cayman Islands - 6.25% | ||||||||
Agile Property Holdings Limited (A) | 4,678,000 | 9,820,740 | ||||||
Heng Tai Consumables Group Limited (A)* | 18,000,000 | 2,894,319 | ||||||
Shimao Property Holdings Limited (A) | 2,167,500 | 6,594,078 | ||||||
Simcere Pharmaceutical Group* | 350,000 | 5,575,500 | ||||||
Suntech Power Holdings Co., Ltd., ADR* | 161,400 | 6,439,860 | ||||||
Tencent Holdings Limited (A) | 1,600,000 | 10,332,075 | ||||||
41,656,572 | ||||||||
China - 20.22% | ||||||||
Acorn International, Inc., ADR* | 127,700 | 2,640,836 | ||||||
Aluminum Corporation of China Limited (A)(D) | 750,000 | 2,156,268 | ||||||
China BlueChemical Ltd., H Shares (A) | 7,604,000 | 5,027,697 | ||||||
China Merchants Bank Co., Limited, H Shares (A) | 1,329,500 | 5,840,404 | ||||||
China Merchants Bank Co., Limited, H Shares (A)(D) | 2,000,000 | 8,785,865 | ||||||
China Mobile Limited (A) | 1,277,500 | 20,919,589 | ||||||
China Oilfield Services Limited (A) | 5,190,000 | 11,950,449 | ||||||
China Resources Power Holdings Company Limited (A) | 2,500,000 | 7,766,422 | ||||||
China Shenhua Energy Company Limited, H Shares (A) | 1,400,000 | 8,410,247 | ||||||
China Shenhua Energy Company Limited, H shares (A)(D) | 1,200,000 | 7,208,783 | ||||||
Hunan Nonferrous Metals Corporation Limited (A) | 8,204,000 | 8,463,770 | ||||||
PetroChina Company Limited, H Shares (A) | 2,222,000 | 4,213,135 | ||||||
PetroChina Company Limited, H Shares (A)(C) | 1,526,000 | 2,893,449 | ||||||
Ping An Insurance (Group) Company of China, Ltd., H Shares (A) | 1,094,500 | 15,149,276 | ||||||
SINA Corporation* | 67,000 | 3,207,960 | ||||||
Sino-Ocean Land Holdings Limited (A)(C)* | 1,000,000 | 1,415,000 | ||||||
Sinopec Shanghai Petrochemical Company Limited (A) | 7,000,000 | 5,735,897 | ||||||
Xinhua Finance Media, ADR* | 598,100 | 4,581,446 | ||||||
Yingli Green Energy Holding Company Limited* | 324,200 | 8,451,894 | ||||||
134,818,387 | ||||||||
Hong Kong - 7.81% | ||||||||
Bank of East Asia, Limited (The) (A) | 1,178,600 | 6,610,233 | ||||||
Beijing Enterprises Holdings Limited (A) | 1,538,000 | 7,814,789 | ||||||
CNOOC Limited (A) | 6,000,000 | 10,079,948 | ||||||
Cheung Kong (Holdings) Limited (A) | 450,000 | 7,421,033 | ||||||
China Aoyuan Property Group Limited (A) | 300,000 | 200,673 | ||||||
Hang Lung Properties Limited (A) | 1,651,000 | 7,390,778 | ||||||
Hutchison Whampoa Limited, Ordinary Shares (A) | 498,000 | 5,326,666 | ||||||
Lee & Man Paper Manufacturing Limited (A) | 1,658,000 | 7,198,171 | ||||||
52,042,291 | ||||||||
India - 7.78% | ||||||||
Ambuja Cements Limited (A) | 1,699,734 | 6,163,789 | ||||||
Bharat Heavy Electricals Limited (A) | 225,860 | 11,545,656 | ||||||
ICICI Bank Limited, ADR | 200,000 | 10,544,000 | ||||||
Infosys Technologies Limited (A) | 120,000 | 5,699,981 | ||||||
Reliance Industries Limited (A) | 168,940 | 9,742,959 | ||||||
Satyam Computer Services Limited (A) | 440,000 | 4,926,432 | ||||||
TATA POWER COMPANY LIMITED (THE) (A) | 150,000 | 3,215,886 | ||||||
51,838,703 | ||||||||
Indonesia - 2.52% | ||||||||
PT Astra International Tbk (A) | 2,866,000 | 6,032,860 | ||||||
PT Bank Rakyat Indonesia (A) | 6,778,500 | 4,892,083 | ||||||
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 120,000 | 5,858,400 | ||||||
16,783,343 | ||||||||
Malaysia - 2.83% | ||||||||
Bumiputra-Commerce Holdings Berhad (A) | 1,356,000 | 4,258,019 | ||||||
Genting Berhad (A) | 2,067,900 | 4,885,281 | ||||||
IOI Corporation Berhad (A) | 1,748,950 | 3,105,252 | ||||||
LION DIVERSIFIED HOLDINGS BERHAD (A) | 1,946,300 | 6,625,702 | ||||||
18,874,254 | ||||||||
Philippines - 0.10% | ||||||||
Vista Land & Lifescapes, Inc. (A)(D)* | 6,000,000 | 679,245 | ||||||
Singapore - 7.42% | ||||||||
DBS Group Holdings Ltd (A) | 626,000 | 9,102,390 | ||||||
K-REIT Asia (A) | 1,205,940 | 2,183,762 | ||||||
Keppel Corporation Limited (A) | 725,080 | 7,028,712 | ||||||
Keppel Land Limited (A) | 1,426,000 | 7,967,553 | ||||||
SembCorp Industries Ltd (A) | 1,424,000 | 6,182,969 | ||||||
Singapore Telecommunications Limited (A) | 2,139,350 | 5,789,422 | ||||||
United Overseas Bank Limited (A) | 365,000 | 5,430,158 | ||||||
Wilmar International Limited (A) | 2,356,000 | 5,804,753 | ||||||
49,489,719 | ||||||||
South Korea - 21.67% | ||||||||
Daegu Bank, Ltd. (A) | 443,300 | 8,210,156 | ||||||
Daelim Industrial Co., Ltd. (A) | 55,000 | 10,186,298 | ||||||
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (A) | 106,240 | 6,721,259 | ||||||
Dongkuk Steel Mill Co., Ltd. (A) | 140,450 | 7,412,298 | ||||||
ForHuman Co., Ltd. (A)* | 194,760 | 5,990,487 | ||||||
GMARKET INC., ADR* | 300,000 | 7,042,500 | ||||||
Hana Financial Group, Inc. (A) | 100,000 | 4,714,816 | ||||||
Hyundai Department Store Co., Ltd. (A) | 70,510 | 8,474,760 | ||||||
Hyundai Development Company - Engineering & Construction (A) | 80,720 | 7,541,040 | ||||||
KCC Corporation (A) | 11,340 | 6,926,420 | ||||||
Kookmin Bank (A) | 138,140 | 11,501,604 | ||||||
Korea Investment Holdings Co., Ltd. (A) | 37,650 | 2,476,541 | ||||||
Korea Tobacco & Ginseng Corporation (A) | 67,710 | 5,289,844 | ||||||
Kyeryong Construction Industrial Co. Ltd (A) | 102,500 | 6,215,855 | ||||||
LG Chem, Ltd. (A) | 85,000 | 8,916,084 | ||||||
Lotte Shopping Co., Ltd. (A) | 17,000 | 7,244,318 | ||||||
NHN Corporation (A)* | 28,620 | 6,623,379 | ||||||
Samsung Corporation (A) | 148,250 | 10,901,688 | ||||||
Samsung Electronics Co., Ltd. (A) | 19,160 | 12,037,806 | ||||||
144,427,153 | ||||||||
Taiwan - 10.89% | ||||||||
Cathay Financial Holding Co., Ltd. (A) | 2,145,662 | 5,075,689 | ||||||
Foxconn Technology Co., Ltd. (A) | 557,635 | 6,458,895 | ||||||
Fubon Financial Holding Co., Ltd. (A) | 5,573,000 | 4,755,877 | ||||||
Hon Hai Precision Ind. Co., Ltd. (A)* | 1,219,200 | 9,190,231 | ||||||
MediaTek Incorporation (A) | 539,700 | 9,724,026 | ||||||
Nan Ya Plastics Corporation (A) | 2,496,000 | 6,500,996 | ||||||
TSRC Corporation (A) | 3,195,000 | 5,482,458 | ||||||
Taiwan Fertilizer Co., Ltd. (A) | 4,000,000 | 9,658,342 | ||||||
Taiwan Semiconductor Manufacturing Company Ltd. (A) | 3,546,005 | 6,910,554 | ||||||
Wistron Corporation (A) | 4,874,978 | 8,813,351 | ||||||
72,570,419 | ||||||||
Thailand - 0.84% | ||||||||
Advanced Info Service Public Company Limited (A) | 961,500 | 2,496,674 | ||||||
PTT Public Company Limited (A) | 315,000 | 3,087,965 | ||||||
5,584,639 | ||||||||
United Kingdom - 1.13% | ||||||||
Standard Chartered PLC (A) | 231,500 | 7,534,169 | ||||||
TOTAL COMMON STOCKS - 94.30% | $ | 628,600,537 | ||||||
(Cost: $399,015,932) | ||||||||
INVESTMENT FUNDS - 0.27% | ||||||||
Multiple Industry | ||||||||
Vietnam Azalea Fund Limited (E)(F)* | 500,000 | $ | 1,777,000 | |||||
(Cost: $1,900,000) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Commercial Paper | ||||||||
Banks - 0.82% | ||||||||
Lloyds TSB Bank PLC: | ||||||||
4.97%, 10-17-07 | $ | 1,500 | 1,496,687 | |||||
5.59%, 10-17-07 | 4,000 | 3,990,062 | ||||||
5,486,749 | ||||||||
Beverages - 0.52% | ||||||||
Coca-Cola Company (The), | ||||||||
4.82%, 10-12-07 | 3,500 | 3,494,845 | ||||||
Food and Related - 0.30% | ||||||||
Archer Daniels Midland Company, | ||||||||
5.1%, 11-6-07 | 2,000 | 1,989,800 | ||||||
Health Care - Drugs - 0.75% | ||||||||
GlaxoSmithKline Finance plc, | ||||||||
5.4%, 10-5-07 | $ | 5,000 | 4,997,000 | |||||
Health Care - General - 0.30% | ||||||||
Johnson & Johnson, | ||||||||
4.72%, 11-20-07 | 2,000 | 1,986,889 | ||||||
Household - General Products - 1.31% | ||||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)): | ||||||||
5.2%, 10-9-07 | 5,000 | 4,994,222 | ||||||
4.8%, 10-17-07 | 3,750 | 3,742,000 | ||||||
8,736,222 | ||||||||
Mining - 0.74% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | ||||||||
5.0%, 10-1-07 | 4,920 | 4,920,000 | ||||||
Security and Commodity Brokers - 0.45% | ||||||||
UBS Finance Delaware LLC (UBS AG), | ||||||||
5.52%, 10-15-07 | 3,000 | 2,993,560 | ||||||
Total Commercial Paper - 5.19% | 34,605,065 | |||||||
Commercial Paper (backed by irrevocable bank letter of credit) - 0.45% | ||||||||
Finance Companies | ||||||||
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)), | ||||||||
5.0%, 10-2-07 | 3,000 | 2,999,584 | ||||||
TOTAL SHORT-TERM SECURITIES - 5.64% | $ | 37,604,649 | ||||||
(Cost: $37,604,649) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.21% | $ | 667,982,186 | ||||||
(Cost: $438,520,581) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.21%) | (1,394,673 | ) | ||||||
NET ASSETS - 100.00% | $ | 666,587,513 | ||||||
Notes to Schedule of Investments | ||||||||||||
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. | ||||||||||||
The following written options were outstanding as of September 30, 2007. (See Note 6 to financial statements): | ||||||||||||
Underlying Security | Contracts Subject to Call | Premium Received | Market Value | |||||||||
MSCI AC Asia Excluding Japan Index | 321,429 | $ | 1,476,002 | $ | 6,615,009 | |||||||
Underlying Security | Contracts Subject to Put | Premium Received | Market Value | |||||||||
MSCI AC Asia Excluding Japan Index | 321,429 | $ | 540,001 | $ | 77,143 | |||||||
*No dividends were paid during the preceding 12 months. | ||||||||||||
(A)Listed on an exchange outside the United States. | ||||||||||||
(B)Security was valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. | ||||||||||||
(C)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $4,308,449 or 0.65% of net assets. | ||||||||||||
(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2007, the total value of these securities amount to $18,830,161 or 2.82% of net assets. | ||||||||||||
(E)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities. | ||||||||||||
(F)Restricted security. At September 30, 2007, the total value of restricted securities owned were: |
Security | Acquisition Date | Shares | Cost | Market Value | ||||||||
Vietnam Azalea Fund Limited | 8-3-07 | 500,000 | $ | 1,900,000 | $ | 1,777,000 | ||||||
The total market value of restricted securities represents approximately 0.27% of net assets at September 30, 2007. | ||||||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | ||||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY PACIFIC OPPORTUNITIES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $438,521) (Notes 1 and 3) | $ | 667,982 | ||
Cash denominated in foreign currencies (cost - $7,188) | 7,238 | |||
Receivables: | ||||
Fund shares sold | 3,619 | |||
Investment securities sold | 3,121 | |||
Dividends and interest | 1,818 | |||
Prepaid and other assets | 63 | |||
Total assets | 683,841 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 7,904 | |||
Outstanding written options - at value (premium received - $2,016) (Note 6) | 6,692 | |||
Payable to Fund shareholders | 650 | |||
Accrued management fee (Note 2) | 490 | |||
Due to custodian | 361 | |||
Accrued service fee (Note 2) | 234 | |||
Accrued shareholder servicing (Note 2) | 173 | |||
Accrued distribution fee (Note 2) | 42 | |||
Accrued accounting services fee (Note 2) | 9 | |||
Accrued administrative fee (Note 2) | 5 | |||
Other | 693 | |||
Total liabilities | 17,253 | |||
Total net assets | $ | 666,588 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 397,509 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 654 | |||
Accumulated undistributed net realized gain on investment transactions | 44,048 | |||
Net unrealized appreciation in value of investments | 224,377 | |||
Net assets applicable to outstanding units of capital | $ | 666,588 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $23.18 | |||
Class B | $21.13 | |||
Class C | $21.47 | |||
Class E | $23.21 | |||
Class I | $23.42 | |||
Class Y | $23.37 | |||
Advisor Class | $22.73 | |||
Capital shares outstanding: | ||||
Class A | 24,078 | |||
Class B | 1,314 | |||
Class C | 2,180 | |||
Class E | 6 | |||
Class I | 1,082 | |||
Class Y | 356 | |||
Advisor Class | 5 |
See Notes to Financial Statements.
Statement of Operations
IVY PACIFIC OPPORTUNITIES FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $672) | $ | 6,038 | ||
Interest and amortization | 366 | |||
Total income | 6,404 | |||
Expenses (Note 2): | ||||
Investment management fee | 2,615 | |||
Shareholder servicing: | ||||
Class A | 730 | |||
Class B | 65 | |||
Class C | 62 | |||
Class E | –– | * | ||
Class I | 11 | |||
Class Y | 5 | |||
Advisor Class | –– | * | ||
Service fee: | ||||
Class A | 525 | |||
Class B | 29 | |||
Class C | 48 | |||
Class Y | 8 | |||
Custodian fee | 283 | |||
Distribution fee: | ||||
Class A | 33 | |||
Class B | 87 | |||
Class C | 145 | |||
Class E | –– | * | ||
Accounting services fee | 50 | |||
Administrative fee | 27 | |||
Audit fees | 12 | |||
Legal fees | 4 | |||
Other | 156 | |||
Total expenses | 4,895 | |||
Net investment income | 1,509 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | $ | 25,861 | ||
Realized net loss on foreign currency transactions | (177 | ) | ||
Realized net gain on investments | 25,684 | |||
Unrealized appreciation in value of securities during the period(1) | 148,015 | |||
Unrealized depreciation in value of written options during the period | (4,676 | ) | ||
Unrealized appreciation in value of foreign currency exchange transactions during the period | 49 | |||
Unrealized appreciation in value of investments during the period | 143,388 | |||
Net gain on investments | 169,072 | |||
Net increase in net assets resulting from operations | $ | 170,581 | ||
*Not shown due to rounding.
(1)Includes $123 in depreciation of affiliated security.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY PACIFIC OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment income (loss) | $ | 1,509 | $ | (768 | ) | ||||
Realized net gain on investments | 25,684 | 26,457 | |||||||
Unrealized appreciation | 143,388 | 41,957 | |||||||
Net increase in net assets resulting from operations | 170,581 | 67,646 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (–– | ) | (189 | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (18 | ) | |||||
Advisor Class | (–– | ) | (–– | )* | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (11,514 | ) | |||||
Class B | (–– | ) | (669 | ) | |||||
Class C | (–– | ) | (1,077 | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (239 | ) | |||||
Advisor Class | (–– | ) | (3 | ) | |||||
(–– | ) | (13,709 | ) | ||||||
Capital share transactions (Note 5) | 58,877 | 159,167 | |||||||
Total increase | 229,458 | 213,104 | |||||||
NET ASSETS | |||||||||
Beginning of period | 437,130 | 224,026 | |||||||
End of period | $ | 666,588 | $ | 437,130 | |||||
Undistributed net investment income (loss) | $ | 654 | $ | (678 | ) | ||||
*Not shown due to rounding.
(1)See "Financial Highlights" on pages 239 - 245.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.91 | $ | 14.32 | $ | 10.61 | $ | 9.55 | $ | 9.11 | $ | 5.96 | $ | 6.72 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.06 | (0.02 | ) | 0.02 | (1) | (0.07 | ) | 0.00 | (0.02 | ) | 0.01 | (1) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.21 | 3.23 | 3.83 | (1) | 1.13 | 0.44 | 3.17 | (0.77 | )(2) | |||||||||||||||||||
Total from investment operations | 6.27 | 3.21 | 3.85 | 1.06 | 0.44 | 3.15 | (0.76 | ) | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.01 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Capital gains | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Total distributions | (0.00 | ) | (0.62 | ) | (0.14 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Net asset value, end of period | $ | 23.18 | $ | 16.91 | $ | 14.32 | $ | 10.61 | $ | 9.55 | $ | 9.11 | $ | 5.96 | ||||||||||||||
Total return(3) | 37.08 | % | 22.60 | % | 36.51 | % | 11.10 | % | 4.83 | % | 52.85 | % | - -11.31 | %(2) | ||||||||||||||
Net assets, end of period (in millions) | $558 | $375 | $191 | $64 | $29 | $18 | $5 | |||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.77 | %(4) | 1.84 | % | 1.95 | % | 2.22 | % | 2.07 | %(4) | 2.64 | % | 2.21 | % | ||||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.66 | %(4) | - -0.14 | % | 0.24 | % | - -0.80 | % | - -1.07 | %(4) | - -0.39 | % | 0.20 | % | ||||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.77 | %(4)(5) | 1.84 | %(5) | 1.95 | %(5) | 2.22 | %(5) | 2.07 | %(4)(5) | 2.73 | % | 3.52 | % | ||||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.66 | %(4)(5) | - -0.14 | %(5) | 0.24 | %(5) | - -0.80 | %(5) | - -1.07 | %(4)(5) | - -0.48 | % | - -1.11 | % | ||||||||||||||
Portfolio turnover rate | 42 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % | 16 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.49 | $ | 13.29 | $ | 9.91 | $ | 9.01 | $ | 8.61 | $ | 5.75 | $ | 6.56 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment loss | (0.02 | ) | (0.07 | ) | (0.06 | )(1) | (0.13 | ) | (0.04 | ) | (0.06 | ) | (0.04 | )(1) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.66 | 2.88 | 3.54 | (1) | 1.03 | 0.44 | 2.92 | (0.77 | ) | |||||||||||||||||||
Total from investment operations | 5.64 | 2.81 | 3.48 | 0.90 | 0.40 | 2.86 | (0.81 | ) | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Capital gains | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Total distributions | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Net asset value, end of period | $ | 21.13 | $ | 15.49 | $ | 13.29 | $ | 9.91 | $ | 9.01 | $ | 8.61 | $ | 5.75 | ||||||||||||||
Total return | 36.41 | % | 21.33 | % | 35.26 | % | 9.99 | % | 4.65 | % | 49.74 | % | - -12.35 | % | ||||||||||||||
Net assets, end of period (in millions) | $28 | $20 | $11 | $6 | $6 | $6 | $3 | |||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.77 | %(2) | 2.88 | % | 2.91 | % | 3.06 | % | 2.86 | %(2) | 3.46 | % | 2.96 | % | ||||||||||||||
Ratio of net investment loss to average net assets including reimbursement | - -0.33 | %(2) | - -1.15 | % | - -0.51 | % | - -1.57 | % | - -1.92 | %(2) | - -1.15 | % | - -0.55 | % | ||||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.77 | %(2)(3) | 2.88 | %(3) | 2.91 | %(3) | 3.06 | %(3) | 2.86 | %(2)(3) | 3.55 | % | 4.27 | % | ||||||||||||||
Ratio of net investment loss to average net assets excluding reimbursement | - -0.33 | %(2)(3) | - -1.15 | %(3) | - -0.51 | %(3) | -1.57 | %(3) | - -1.92 | %(2)(3) | - -1.24 | % | - -1.86 | % | ||||||||||||||
Portfolio turnover rate | 42 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % | 16 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 15.73 | $ | 13.45 | $ | 10.01 | $ | 9.09 | $ | 8.68 | $ | 5.75 | $ | 6.55 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment loss | (0.00 | ) | (0.08 | ) | (0.06 | )(1) | (0.09 | ) | (0.02 | ) | (0.05 | ) | (0.03 | )(1) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.74 | 2.97 | 3.60 | (1) | 1.01 | 0.43 | 2.98 | (0.77 | ) | |||||||||||||||||||
Total from investment operations | 5.74 | 2.89 | 3.54 | 0.92 | 0.41 | 2.93 | (0.80 | ) | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Capital gains | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Total distributions | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Net asset value, end of period | $ | 21.47 | $ | 15.73 | $ | 13.45 | $ | 10.01 | $ | 9.09 | $ | 8.68 | $ | 5.75 | ||||||||||||||
Total return | 36.56 | % | 21.68 | % | 35.51 | % | 10.12 | % | 4.72 | % | 50.96 | % | - -12.21 | % | ||||||||||||||
Net assets, end of period (in millions) | $47 | $34 | $18 | $7 | $3 | $2 | $1 | |||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 2.51 | %(2) | 2.60 | % | 2.75 | % | 3.06 | % | 2.57 | %(2) | 3.48 | % | 2.94 | % | ||||||||||||||
Ratio of net investment loss to average net assets including reimbursement | - -0.07 | %(2) | - -0.87 | % | - -0.50 | % | - -1.68 | % | - -1.59 | %(2) | - -1.14 | % | - -0.53 | % | ||||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 2.51 | %(2)(3) | 2.60 | %(3) | 2.75 | %(3) | 3.06 | %(3) | 2.57 | %(2)(3) | 3.57 | % | 4.25 | % | ||||||||||||||
Ratio of net investment loss to average net assets excluding reimbursement | - -0.07 | %(2)(3) | - -0.87 | %(3) | - -0.50 | %(3) | - -1.68 | %(3) | - -1.59 | %(2)(3) | - -1.23 | % | - -1.84 | % | ||||||||||||||
Portfolio turnover rate | 42 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % | 16 | % |
(1)Based on average shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.91 | |||
Income from investment operations: | |||||
Net investment income | 0.14 | (2) | |||
Net realized and unrealized gain on investments | 6.16 | (2) | |||
Total from investment operations | 6.30 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 23.21 | |||
Total return(3) | 37.50 | % | |||
Net assets, end of period (in thousands) | $137 | ||||
Ratio of expenses to average net assets | 1.45 | %(4) | |||
Ratio of net investment income to average net assets | 1.01 | %(4) | |||
Portfolio turnover rate | 42 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 17.03 | |||
Income from investment operations: | |||||
Net investment income | 0.11 | (2) | |||
Net realized and unrealized gain on investments | 6.28 | (2) | |||
Total from investment operations | 6.39 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 23.42 | |||
Total return | 37.77 | % | |||
Net assets, end of period (in millions) | $25 | ||||
Ratio of expenses to average net assets | 1.34 | %(3) | |||
Ratio of net investment income to average net assets | 0.87 | %(3) | |||
Portfolio turnover rate | 42 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the period from 7-24-03(1) to | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.03 | $ | 14.41 | $ | 10.67 | $ | 9.58 | $ | 9.13 | $ | 6.85 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.02 | 0.04 | (2) | (0.04 | ) | (0.00 | ) | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain on investments | 6.27 | 3.26 | 3.87 | (2) | 1.13 | 0.45 | 2.29 | |||||||||||||||||
Total from investment operations | 6.34 | 3.28 | 3.91 | 1.09 | 0.45 | 2.28 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.05 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.66 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 23.37 | $ | 17.03 | $ | 14.41 | $ | 10.67 | $ | 9.58 | $ | 9.13 | ||||||||||||
Total return | 37.23 | % | 22.95 | % | 36.90 | % | 11.38 | % | 4.93 | % | 33.28 | % | ||||||||||||
Net assets, end of period (in thousands) | $8,329 | $8,101 | $3,790 | $1,100 | $707 | $497 | ||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.56 | %(3) | 1.58 | % | 1.68 | % | 1.88 | % | 1.64 | %(3) | 2.01 | %(3) | ||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 0.84 | %(3) | 0.11 | % | 0.46 | % | - -0.47 | % | - -0.68 | %(3) | - -0.40 | %(3) | ||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.56 | %(3)(4) | 1.58 | %(4) | 1.68 | %(4) | 1.88 | %(4) | 1.64 | %(3)(4) | 2.18 | %(3) | ||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 0.84 | %(3)(4) | 0.11 | %(4) | 0.46 | %(4) | - -0.47 | %(4) | - -0.68 | %(3)(4) | - -0.57 | %(3) | ||||||||||||
Portfolio turnover rate | 42 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Advisor Class Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended December 31, | ||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||||
Net asset value, beginning of period | $ | 16.54 | $ | 14.01 | $ | 10.38 | $ | 9.28 | $ | 8.85 | $ | 5.81 | $ | 6.59 | |||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.09 | 0.14 | (2) | (0.01 | ) | (0.01 | ) | (0.01 | ) | 0.04 | (2) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.08 | 3.15 | 3.70 | (2) | 1.11 | 0.44 | 3.05 | (0.82 | ) | ||||||||||||||||||
Total from investment operations | 6.19 | 3.24 | 3.84 | 1.10 | 0.43 | 3.04 | (0.78 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.10 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Capital gains | (0.00 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Total distributions | (0.00 | ) | (0.71 | ) | (0.21 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||||
Net asset value, end of period | $ | 22.73 | $ | 16.54 | $ | 14.01 | $ | 10.38 | $ | 9.28 | $ | 8.85 | $ | 5.81 | |||||||||||||
Total return | 37.42 | % | 23.33 | % | 37.28 | % | 11.85 | % | 4.86 | % | 52.32 | % | - -11.84 | % | |||||||||||||
Net assets, end of period (in thousands) | $122 | $89 | $76 | $64 | $58 | $55 | $34 | ||||||||||||||||||||
Ratio of expenses to average net assets including reimbursement | 1.24 | %(3) | 1.28 | % | 1.42 | % | 1.56 | % | 1.82 | %(3) | 2.49 | % | 1.74 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets including reimbursement | 1.20 | %(3) | 0.55 | % | 1.12 | % | - -0.06 | % | - -0.88 | %(3) | - -0.09 | % | 0.67 | % | |||||||||||||
Ratio of expenses to average net assets excluding reimbursement | 1.24 | %(3)(4) | 1.28 | %(4) | 1.42 | %(4) | 1.56 | %(4) | 1.82 | %(3)(4) | 2.65 | % | 3.05 | % | |||||||||||||
Ratio of net investment income (loss) to average net assets excluding reimbursement | 1.20 | %(3)(4) | 0.55 | %(4) | 1.12 | %(4) | - -0.06 | %(4) | - -0.88 | %(3)(4) | - -0.25 | % | - -0.64 | % | |||||||||||||
Portfolio turnover rate | 42 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % | 16 | % |
(1)See Note 5 to financial statements.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY REAL ESTATE SECURITIES FUND
Portfolio Highlights
On September 30, 2007, Ivy Real Estate Securities Fund had net assets totaling
$532,314,297 invested in a diversified portfolio of:
94.27% | Domestic Common Stocks | |
3.24% | Foreign Common Stocks | |
2.49% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Shelter Stocks | $ | 89.10 | |||
Business Equipment and Services Stocks | $ | 3.58 | |||
Consumer Services Stocks | $ | 2.65 | |||
Cash and Cash Equivalents | $ | 2.49 | |||
Miscellaneous Stocks | $ | 2.18 | |||
The Investments of Ivy Real Estate Securities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Business Equipment and Services - 3.58% | |||||||
Brookfield Properties Corporation | 692,000 | $ | 17,230,800 | ||||
CB Richard Ellis Group, Inc., Class A* | 64,700 | 1,801,248 | |||||
19,032,048 | |||||||
Health Care - General - 0.32% | |||||||
Brookdale Senior Living, Inc. | 42,700 | 1,699,887 | |||||
Hotels and Gaming - 2.65% | |||||||
Hilton Hotels Corporation | 185,800 | 8,637,842 | |||||
Marriott International, Inc., Class A | 42,200 | 1,834,434 | |||||
Starwood Hotels & Resorts Worldwide, Inc. | 59,600 | 3,620,700 | |||||
14,092,976 | |||||||
Multiple Industry - 1.45% | |||||||
Forest City Enterprises, Inc., Class A | 101,278 | 5,586,494 | |||||
Macquarie Infrastructure Company Trust | 55,800 | 2,153,322 | |||||
7,739,816 | |||||||
Real Estate Investment Trust - 89.10% | |||||||
AMB Property Corporation | 188,600 | 11,280,166 | |||||
Acadia Realty Trust | 101,300 | 2,748,269 | |||||
Alexandria Real Estate Equities, Inc. | 67,900 | 6,536,054 | |||||
American Campus Communities, Inc. | 174,500 | 5,111,105 | |||||
Archstone-Smith Trust | 357,100 | 21,475,994 | |||||
Associated Estates Realty Corporation | 133,000 | 1,734,320 | |||||
AvalonBay Communities, Inc. | 148,100 | 17,484,686 | |||||
BRE Properties, Inc., Class A | 55,000 | 3,076,150 | |||||
BioMed Realty Trust, Inc. | 322,012 | 7,760,489 | |||||
Boston Properties, Inc. | 206,400 | 21,444,960 | |||||
Brandywine Realty Trust | 301,700 | 7,636,027 | |||||
Camden Property Trust | 165,500 | 10,633,375 | |||||
Corporate Office Properties Trust | 190,500 | 7,930,515 | |||||
DCT Industrial Trust Inc. | 459,600 | 4,812,012 | |||||
Developers Diversified Realty Corporation | 220,300 | 12,308,161 | |||||
Digital Realty Trust, Inc. | 142,500 | 5,613,075 | |||||
Douglas Emmett, Inc. | 119,400 | 2,952,762 | |||||
EastGroup Properties, Inc. | 68,300 | 3,091,258 | |||||
Equity Inns, Inc. | 93,500 | 2,111,230 | |||||
Equity Lifestyle Properties, Inc. | 41,800 | 2,165,240 | |||||
Equity Residential | 413,600 | 17,520,096 | |||||
Essex Property Trust, Inc. | 91,000 | 10,698,870 | |||||
Extra Space Storage Inc. | 161,200 | 2,480,868 | |||||
Federal Realty Investment Trust | 103,700 | 9,187,820 | |||||
General Growth Properties, Inc. | 251,432 | 13,481,784 | |||||
Gramercy Capital Corp. | 55,000 | 1,384,350 | |||||
Health Care REIT, Inc. | 81,800 | 3,618,832 | |||||
Healthcare Realty Trust Incorporated | 42,700 | 1,138,382 | |||||
Hersha Hospitality Trust | 195,600 | 1,936,440 | |||||
Home Properties, Inc. | 70,500 | 3,678,690 | |||||
Hospitality Properties Trust | 50,400 | 2,048,760 | |||||
Host Hotels & Resorts, Inc. | 899,447 | 20,183,591 | |||||
Kilroy Realty Corporation | 108,800 | 6,596,544 | |||||
Kimco Realty Corporation | 339,000 | 15,326,190 | |||||
Kite Realty Group Trust | 100,500 | 1,889,400 | |||||
LaSalle Hotel Properties | 71,600 | 3,012,928 | |||||
Liberty Property Trust | 137,900 | 5,544,959 | |||||
Macerich Company (The) | 139,800 | 12,243,684 | |||||
Maguire Properties, Inc. | 201,300 | 5,199,579 | |||||
Mid-America Apartment Communities, Inc. | 67,500 | 3,364,875 | |||||
National Retail Properties, Inc. | 71,800 | 1,750,484 | |||||
Nationwide Health Properties, Inc. | 122,500 | 3,690,925 | |||||
PS Business Parks, Inc. | 71,900 | 4,087,515 | |||||
ProLogis | 541,465 | 35,926,203 | |||||
Public Storage, Inc. | 254,600 | 20,024,290 | |||||
Regency Centers Corporation | 114,800 | 8,810,900 | |||||
SL Green Realty Corp. | 112,400 | 13,124,948 | |||||
Simon Property Group, Inc. | 402,200 | 40,220,000 | |||||
Tanger Factory Outlet Centers, Inc. | 86,700 | 3,519,153 | |||||
Taubman Centers, Inc. | 142,500 | 7,801,875 | |||||
Ventas, Inc. | 168,300 | 6,967,620 | |||||
Vornado Realty Trust | 249,600 | 27,293,760 | |||||
Weingarten Realty Investors | 63,600 | 2,636,856 | |||||
474,297,019 | |||||||
Utilities - Telephone - 0.41% | |||||||
Crown Castle International Corp.* | 54,200 | 2,202,146 | |||||
TOTAL COMMON STOCKS - 97.51% | $ | 519,063,892 | |||||
(Cost: $388,911,445) | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | ||||||
---|---|---|---|---|---|---|---|
Finance Companies - 0.90% | |||||||
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)), | |||||||
5.0%, 10-2-07 | $ | 2,000 | $ | 1,999,722 | |||
Prudential Funding LLC, | |||||||
5.15%, 10-11-07 | 2,800 | 2,795,995 | |||||
4,795,717 | |||||||
Household - General - 0.56% | |||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | |||||||
4.8%, 10-17-07 | 3,000 | 2,993,600 | |||||
Mining - 0.31% | |||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | |||||||
5.1%, 10-1-07 | 1,612 | 1,612,000 | |||||
Retail - General Merchandise - 0.56% | |||||||
Target Corporation, | |||||||
5.0%, 10-19-07 | 3,000 | 2,992,500 | |||||
TOTAL SHORT-TERM SECURITIES - 2.33% | $ | 12,393,817 | |||||
(Cost: $12,393,817) | |||||||
TOTAL INVESTMENT SECURITIES - 99.84% | $ | 531,457,709 | |||||
(Cost: $401,305,262) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.16% | 856,588 | ||||||
NET ASSETS - 100.00% | $ | 532,314,297 | |||||
Notes to Schedule of Investments |
*No dividends were paid during the preceding 12 months. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY REAL ESTATE SECURITIES FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $401,305) (Notes 1 and 3) | $ | 531,458 | ||
Cash | 15 | |||
Receivables: | ||||
Dividends and interest | 1,841 | |||
Investment securities sold | 997 | |||
Fund shares sold | 551 | |||
Prepaid and other assets | 44 | |||
Total assets | 534,906 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 900 | |||
Payable to Fund shareholders | 886 | |||
Accrued management fee (Note 2) | 385 | |||
Accrued shareholder servicing (Note 2) | 174 | |||
Accrued service fee (Note 2) | 117 | |||
Accrued distribution fee (Note 2) | 22 | |||
Accrued accounting services fee (Note 2) | 12 | |||
Other | 96 | |||
Total liabilities | 2,592 | |||
Total net assets | $ | 532,314 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 377,591 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 26 | |||
Accumulated undistributed net realized gain on investment transactions | 24,545 | |||
Net unrealized appreciation in value of investments | 130,152 | |||
Net assets applicable to outstanding units of capital | $ | 532,314 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $24.20 | |||
Class B | $23.91 | |||
Class C | $24.02 | |||
Class E | $24.14 | |||
Class I | $24.30 | |||
Class R | $24.21 | |||
Class Y | $24.22 | |||
Capital shares outstanding: | ||||
Class A | 13,729 | |||
Class B | 742 | |||
Class C | 785 | |||
Class E | 16 | |||
Class I | 62 | |||
Class R | 7 | |||
Class Y | 6,664 |
See Notes to Financial Statements.
Statement of Operations
IVY REAL ESTATE SECURITIES FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $36) | $ | 5,639 | ||
Interest and amortization | 108 | |||
Total income | 5,747 | |||
Expenses (Note 2): | ||||
Investment management fee | 2,751 | |||
Shareholder servicing: | ||||
Class A | 686 | |||
Class B | 61 | |||
Class C | 49 | |||
Class E | 2 | |||
Class I | 1 | |||
Class R | –– | * | ||
Class Y | 156 | |||
Service fee: | ||||
Class A | 430 | |||
Class B | 25 | |||
Class C | 28 | |||
Class R | –– | * | ||
Class Y | 257 | |||
Distribution fee: | ||||
Class A | 21 | |||
Class B | 74 | |||
Class C | 85 | |||
Class E | –– | * | ||
Class R | –– | * | ||
Accounting services fee | 84 | |||
Custodian fees | 22 | |||
Audit fees | 15 | |||
Legal fees | 7 | |||
Other | 162 | |||
Total expenses | 4,916 | |||
Net investment income | 831 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 5,760 | |||
Unrealized depreciation in value of investments during the period | (60,404 | ) | ||
Net loss on investments | (54,644 | ) | ||
Net decrease in net assets resulting from operations | $ | (53,813 | ) | |
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY REAL ESTATE SECURITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 831 | $ | 3,791 | ||||
Realized net gain on investments | 5,760 | 36,618 | ||||||
Unrealized appreciation (depreciation) | (60,404 | ) | 57,001 | |||||
Net increase (decrease) in net assets resulting from operations | (53,813 | ) | 97,410 | |||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (579 | ) | (1,898 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | )* | NA | |||||
Class I | (6 | ) | NA | |||||
Class R | (–– | )* | (1 | ) | ||||
Class Y | (514 | ) | (1,896 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (13,023 | ) | ||||
Class B | (–– | ) | (719 | ) | ||||
Class C | (–– | ) | (855 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class R | (–– | ) | (5 | ) | ||||
Class Y | (–– | ) | (9,462 | ) | ||||
(1,099 | ) | (27,859 | ) | |||||
Capital share transactions (Note 5) | (120,550 | ) | 134,609 | |||||
Total increase (decrease) | (175,462 | ) | 204,160 | |||||
NET ASSETS | ||||||||
Beginning of period | 707,776 | 503,616 | ||||||
End of period | $ | 532,314 | $ | 707,776 | ||||
Undistributed net investment income | $ | 26 | $ | 294 | ||||
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended July 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | ||||||||||||||||||
Net asset value, beginning of period | $ | 26.14 | $ | 23.11 | $ | 18.13 | $ | 16.99 | $ | 13.42 | $ | 11.93 | $ | 11.67 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.04 | 0.10 | 0.15 | 0.15 | (1) | 0.62 | 0.48 | 0.32 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.94 | ) | 4.05 | 5.81 | 1.93 | (1) | 3.38 | 1.72 | 1.01 | |||||||||||||||
Total from investment operations | (1.90 | ) | 4.15 | 5.96 | 2.08 | 4.00 | 2.20 | 1.33 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.15 | ) | (0.18 | ) | (0.25 | ) | (0.24 | ) | (0.48 | ) | (0.28 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | (0.23 | ) | (0.79 | ) | ||||||||||
Total distributions | (0.04 | ) | (1.12 | ) | (0.98 | ) | (0.94 | ) | (0.43 | ) | (0.71 | ) | (1.07 | ) | ||||||||||
Net asset value, end of period | $ | 24.20 | $ | 26.14 | $ | 23.11 | $ | 18.13 | $ | 16.99 | $ | 13.42 | $ | 11.93 | ||||||||||
Total return(2) | - -7.23 | % | 18.09 | % | 33.53 | % | 12.09 | % | 29.78 | % | 19.65 | % | 12.31 | % | ||||||||||
Net assets, end of period (in millions) | $332 | $395 | $256 | $155 | $44 | $60 | $32 | |||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.63 | %(3) | 1.57 | % | 1.64 | % | 1.67 | % | 1.48 | %(3)(4) | 1.46 | % | 1.50 | % | ||||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.19 | %(3) | 0.54 | % | 0.91 | % | 0.95 | % | 4.35 | %(3)(4) | 2.95 | % | 2.83 | % | ||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.63 | %(3)(5) | 1.57 | %(5) | 1.64 | %(5) | 1.67 | %(5) | 1.49 | %(3)(4) | 1.46 | %(5) | 1.69 | % | ||||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.19 | %(3)(5) | 0.54 | %(5) | 0.91 | %(5) | 0.95 | %(5) | 4.34 | %(3)(4) | 2.95 | %(5) | 2.64 | % | ||||||||||
Portfolio turnover rate | 4 | % | 35 | % | 35 | % | 48 | % | 35 | % | 48 | % | 101 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 25.91 | $ | 23.00 | $ | 18.08 | $ | 16.97 | $ | 15.18 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.09 | ) | 0.01 | (0.07 | )(2) | 0.07 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (1.89 | ) | 3.97 | 5.72 | 1.95 | (2) | 2.08 | ||||||||||||||
Total from investment operations | (2.00 | ) | 3.88 | 5.73 | 1.88 | 2.15 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.08 | ) | (0.17 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.97 | ) | (0.81 | ) | (0.77 | ) | (0.36 | ) | |||||||||||
Net asset value, end of period | $ | 23.91 | $ | 25.91 | $ | 23.00 | $ | 18.08 | $ | 16.97 | |||||||||||
Total return | - -7.72 | % | 16.93 | % | 32.19 | % | 10.91 | % | 14.46 | % | |||||||||||
Net assets, end of period (in millions) | $18 | $22 | $15 | $10 | $2 | ||||||||||||||||
Ratio of expenses to average net assets | 2.63 | %(3) | 2.57 | % | 2.66 | % | 2.73 | % | 3.02 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets | - -0.79 | %(3) | - -0.42 | % | 0.01 | % | - -0.24 | % | - -5.40 | %(3) | |||||||||||
Portfolio turnover rate | 4 | % | 35 | % | 35 | % | 48 | % | 35 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 26.01 | $ | 23.04 | $ | 18.10 | $ | 16.99 | $ | 15.18 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.06 | ) | 0.03 | 0.12 | 0.08 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.91 | ) | 4.00 | 5.73 | 1.82 | 2.09 | |||||||||||||||
Total from investment operations | (1.99 | ) | 3.94 | 5.76 | 1.94 | 2.17 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.02 | ) | (0.14 | ) | (0.17 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.97 | ) | (0.82 | ) | (0.83 | ) | (0.36 | ) | |||||||||||
Net asset value, end of period | $ | 24.02 | $ | 26.01 | $ | 23.04 | $ | 18.10 | $ | 16.99 | |||||||||||
Total return | - -7.65 | % | 17.17 | % | 32.38 | % | 11.21 | % | 14.59 | % | |||||||||||
Net assets, end of period (in millions) | $19 | $26 | $17 | $10 | $2 | ||||||||||||||||
Ratio of expenses to average net assets | 2.44 | %(2) | 2.39 | % | 2.46 | % | 2.49 | % | 2.82 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | - -0.51 | %(2) | - -0.28 | % | 0.15 | % | 0.14 | % | -4.46 | %(2) | |||||||||||
Portfolio turnover rate | 4 | % | 35 | % | 35 | % | 48 | % | 35 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 26.14 | |||
Loss from investment operations: | |||||
Net investment loss | (0.15 | )(2) | |||
Net realized and unrealized loss on investments | (1.83 | )(2) | |||
Total from investment operations | (1.98 | ) | |||
Less distributions from: | |||||
Net investment income | (0.02 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.02 | ) | |||
Net asset value, end of period | $ | 24.14 | |||
Total return(3) | - -8.34 | % | |||
Net assets, end of period (in thousands) | $396 | ||||
Ratio of expenses to average net assets | 2.56 | %(4) | |||
Ratio of net investment loss to average net assets | - -1.25 | %(4) | |||
Portfolio turnover rate | 4 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 26.15 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.07 | (2) | |||
Net realized and unrealized loss on investments | (1.83 | )(2) | |||
Total from investment operations | (1.76 | ) | |||
Less distributions from: | |||||
Net investment income | (0.09 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.09 | ) | |||
Net asset value, end of period | $ | 24.30 | |||
Total return | - -7.55 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets | 1.16 | %(3) | |||
Ratio of net investment income to average net assets | 0.58 | %(3) | |||
Portfolio turnover rate | 4 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended | For the period from 12-29-05(1) to | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | 3-31-06 | |||||||||||||
Net asset value, beginning of period | $ | 26.14 | $ | 23.11 | $ | 20.55 | |||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | 0.03 | 0.15 | (0.20 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (1.93 | ) | 3.98 | 2.79 | |||||||||||
Total from investment operations | (1.90 | ) | 4.13 | 2.59 | |||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.03 | ) | (0.13 | ) | (0.03 | ) | |||||||||
Capital gains | (0.00 | ) | (0.97 | ) | (0.00 | ) | |||||||||
Total distributions | (0.03 | ) | (1.10 | ) | (0.03 | ) | |||||||||
Net asset value, end of period | $ | 24.21 | $ | 26.14 | $ | 23.11 | |||||||||
Total return | - -7.28 | % | 17.98 | % | 12.59 | % | |||||||||
Net assets, end of period (in thousands) | $166 | $158 | $113 | ||||||||||||
Ratio of expenses to average net assets | 1.68 | %(2) | 1.68 | % | 1.73 | %(2) | |||||||||
Ratio of net investment income (loss) to average net assets | 0.05 | %(2) | 0.43 | % | - -3.64 | %(2) | |||||||||
Portfolio turnover rate | 4 | % | 35 | % | 35 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 26.15 | $ | 23.12 | $ | 18.14 | $ | 16.99 | $ | 15.18 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.12 | 0.23 | 0.27 | 0.26 | (2) | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.98 | ) | 3.97 | 5.75 | 1.87 | (2) | 2.15 | ||||||||||||||
Total from investment operations | (1.86 | ) | 4.20 | 6.02 | 2.13 | 2.19 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.07 | ) | (0.20 | ) | (0.24 | ) | (0.29 | ) | (0.19 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||||
Total distributions | (0.07 | ) | (1.17 | ) | (1.04 | ) | (0.98 | ) | (0.38 | ) | |||||||||||
Net asset value, end of period | $ | 24.22 | $ | 26.15 | $ | 23.12 | $ | 18.14 | $ | 16.99 | |||||||||||
Total return | - -7.12 | % | 18.32 | % | 33.86 | % | 12.40 | % | 14.78 | % | |||||||||||
Net assets, end of period (in millions) | $161 | $265 | $216 | $148 | $91 | ||||||||||||||||
Ratio of expenses to average net assets | 1.38 | %(3) | 1.37 | % | 1.39 | % | 1.44 | % | 1.60 | %(3) | |||||||||||
Ratio of net investment income to average net assets | 0.60 | %(3) | 0.94 | % | 1.27 | % | 1.59 | % | 0.14 | %(3) | |||||||||||
Portfolio turnover rate | 4 | % | 35 | % | 35 | % | 48 | % | 35 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY SMALL CAP VALUE FUND
Portfolio Highlights
On September 30, 2007, Ivy Small Cap Value Fund had net assets totaling
$162,383,365 invested in a diversified portfolio of:
86.25% | Domestic Common Stocks | |
9.88% | Foreign Common Stocks | |
3.87% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Financial Services Stocks | $ | 17.79 | |||
Retail Stocks | $ | 11.18 | |||
Technology Stocks | $ | 10.80 | |||
Consumer Services Stocks | $ | 9.36 | |||
Consumer Nondurables Stocks | $ | 7.84 | |||
Business Equipment and Services Stocks | $ | 7.36 | |||
Health Care Stocks | $ | 7.19 | |||
Capital Goods Stocks | $ | 7.03 | |||
Shelter Stocks | $ | 6.37 | |||
Energy Stocks | $ | 4.39 | |||
Cash and Cash Equivalents | $ | 3.87 | |||
Transporation Stocks | $ | 2.33 | |||
Utilities Stocks | $ | 2.25 | |||
Raw Materials Stocks | $ | 2.24 |
The Investments of Ivy Small Cap Value | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Air Transportation - 0.88% | ||||||||
ABX Air, Inc.* | 201,884 | $ | 1,428,329 | |||||
Aircraft - 1.50% | ||||||||
Orbital Sciences Corporation* | 109,600 | 2,437,504 | ||||||
Apparel - 1.75% | ||||||||
Albany International Corp., Class A | 27,000 | 1,012,230 | ||||||
Fossil, Inc.* | 49,000 | 1,829,170 | ||||||
2,841,400 | ||||||||
Banks - 9.62% | ||||||||
Boston Private Financial Holdings, Inc. | 30,400 | 845,880 | ||||||
Cathay General Bancorp | 61,698 | 1,986,676 | ||||||
Columbia Banking System, Inc. | 23,212 | 737,561 | ||||||
First Midwest Bancorp, Inc. | 60,700 | 2,071,084 | ||||||
First Niagara Financial Group, Inc. | 190,300 | 2,693,696 | ||||||
KBW, Inc.* | 78,500 | 2,259,230 | ||||||
Sterling Bancshares, Inc. | 126,915 | 1,446,196 | ||||||
Umpqua Holdings Corporation | 49,066 | 980,829 | ||||||
United Bankshares, Inc. | 47,970 | 1,459,008 | ||||||
Wintrust Financial Corporation | 26,811 | 1,144,830 | ||||||
15,624,990 | ||||||||
Broadcasting - 0.90% | ||||||||
Belo Corp., Class A | 57,300 | 994,728 | ||||||
Outdoor Channel Holdings, Inc.* | 50,900 | 459,882 | ||||||
1,454,610 | ||||||||
Business Equipment and Services - 6.90% | ||||||||
Brink's Company (The) | 60,600 | 3,386,328 | ||||||
Great Lakes Dredge & Dock Corporation* | 101,600 | 889,000 | ||||||
H&E Equipment Services, Inc.* | 50,900 | 915,691 | ||||||
Heidrick & Struggles International, Inc.* | 52,700 | 1,918,807 | ||||||
SkillSoft Public Limited Company* | 114,800 | 1,030,904 | ||||||
Waste Connections, Inc.* | 71,350 | 2,266,076 | ||||||
Watson Wyatt & Company Holdings, Inc., Class A | 17,900 | 804,426 | ||||||
11,211,232 | ||||||||
Capital Equipment - 4.07% | ||||||||
Actuant Corporation, Class A* | 14,200 | 922,574 | ||||||
Astec Industries, Inc.* | 25,100 | 1,441,242 | ||||||
Chart Industries, Inc.* | 54,400 | 1,752,224 | ||||||
Goodman Global, Inc.* | 104,139 | 2,486,839 | ||||||
6,602,879 | ||||||||
Chemicals - Specialty - 1.72% | ||||||||
H.B. Fuller Company | 94,100 | 2,792,888 | ||||||
Communications Equipment - 1.61% | ||||||||
Dycom Industries, Inc.* | 85,229 | 2,610,564 | ||||||
Computers - Micro - 0.39% | ||||||||
Tech Data Corporation* | 15,600 | 625,482 | ||||||
Computers - Peripherals - 3.76% | ||||||||
Electronics for Imaging, Inc.* | 87,000 | 2,334,645 | ||||||
Epicor Software Corporation* | 45,100 | 620,351 | ||||||
Lawson Software, Inc.* | 225,000 | 2,251,125 | ||||||
Mentor Graphics Corporation* | 60,000 | 906,600 | ||||||
6,112,721 | ||||||||
Construction Materials - 1.55% | ||||||||
Texas Industries, Inc. | 32,100 | 2,519,850 | ||||||
Containers - 1.98% | ||||||||
Silgan Holdings Inc. | 59,951 | 3,219,968 | ||||||
Cosmetics and Toiletries - 1.38% | ||||||||
Elizabeth Arden, Inc.* | 83,043 | 2,238,424 | ||||||
Electronic Components - 3.54% | ||||||||
Cirrus Logic, Inc.* | 114,500 | 731,083 | ||||||
PMC-Sierra, Inc.* | 107,600 | 903,302 | ||||||
RF Micro Devices, Inc.* | 366,600 | 2,465,385 | ||||||
Tessera Technologies, Inc.* | 21,213 | 795,912 | ||||||
Trident Microsystems, Inc.* | 53,300 | 848,003 | ||||||
5,743,685 | ||||||||
Food and Related - 2.73% | ||||||||
Hain Celestial Group, Inc. (The)* | 95,011 | 3,050,328 | ||||||
Sensient Technologies Corporation | 47,700 | 1,377,099 | ||||||
4,427,427 | ||||||||
Forest and Paper Products - 1.19% | ||||||||
Louisiana-Pacific Corporation | 113,400 | 1,924,398 | ||||||
Health Care - Drugs - 3.05% | ||||||||
Axcan Pharma Inc.* | 193,048 | 4,004,781 | ||||||
PharMerica Corporation* | 63,787 | 951,702 | ||||||
4,956,483 | ||||||||
Health Care - General - 2.07% | ||||||||
Amedisys, Inc.* | 45,166 | 1,734,374 | ||||||
Invacare Corporation | 69,900 | 1,634,262 | ||||||
3,368,636 | ||||||||
Hospital Supply and Management - 2.07% | ||||||||
Kindred Healthcare, Inc.* | 64,200 | 1,149,822 | ||||||
Magellan Health Services, Inc.* | 53,700 | 2,176,729 | ||||||
Orthofix International N.V.* | 730 | 35,770 | ||||||
3,362,321 | ||||||||
Hotels and Gaming - 6.59% | ||||||||
Morgans Hotel Group Co.* | 108,336 | 2,356,850 | ||||||
Orient-Express Hotels Ltd. | 62,500 | 3,204,375 | ||||||
Pinnacle Entertainment, Inc.* | 126,900 | 3,455,487 | ||||||
Vail Resorts, Inc.* | 26,987 | 1,681,020 | ||||||
10,697,732 | ||||||||
Insurance - Property and Casualty - 4.18% | ||||||||
Aspen Insurance Holdings Limited | 40,300 | 1,124,773 | ||||||
Endurance Specialty Holdings Ltd. | 30,361 | 1,261,500 | ||||||
IPC Holdings, Ltd. | 88,549 | 2,555,967 | ||||||
Platinum Underwriters Holdings, Ltd. | 51,391 | 1,848,020 | ||||||
6,790,260 | ||||||||
Leisure Time Industry - 0.41% | ||||||||
LeapFrog Enterprises, Inc.* | 80,838 | 666,913 | ||||||
Metal Fabrication - 0.41% | ||||||||
A.M. Castle & Co. | 20,300 | 661,780 | ||||||
Mining - 0.52% | ||||||||
USEC Inc.* | 83,000 | 850,750 | ||||||
Motor Vehicle Parts - 1.46% | ||||||||
LKQ Corporation* | 68,100 | 2,369,199 | ||||||
Non-Residential Construction - 1.00% | ||||||||
Perini Corporation* | 29,088 | 1,626,892 | ||||||
Petroleum - Domestic - 0.98% | ||||||||
Delta Petroleum Corporation* | 89,100 | 1,595,336 | ||||||
Petroleum - International - 1.30% | ||||||||
Swift Energy Company* | 51,600 | 2,111,472 | ||||||
Petroleum - Services - 2.11% | ||||||||
Cal Dive International, Inc.* | 75,800 | 1,137,000 | ||||||
Hercules Offshore, Inc.* | 48,583 | 1,268,016 | ||||||
North American Energy Partners Inc.* | 58,700 | 1,013,162 | ||||||
3,418,178 | ||||||||
Real Estate Investment Trust - 5.18% | ||||||||
Arbor Realty Trust, Inc. | 116,029 | 2,191,788 | ||||||
Capital Trust, Inc., Class A | 31,509 | 1,118,570 | ||||||
Gramercy Capital Corp. | 109,819 | 2,764,144 | ||||||
LaSalle Hotel Properties | 55,600 | 2,339,648 | ||||||
8,414,150 | ||||||||
Retail - Food Stores - 3.53% | ||||||||
Longs Drug Stores Corporation | 46,200 | 2,294,754 | ||||||
Ruddick Corporation | 102,500 | 3,437,850 | ||||||
5,732,604 | ||||||||
Retail - General Merchandise - 3.00% | ||||||||
BJ's Wholesale Club, Inc.* | 147,000 | 4,874,520 | ||||||
Retail - Specialty Stores - 4.65% | ||||||||
AnnTaylor Stores Corporation* | 46,300 | 1,466,321 | ||||||
Carter's, Inc.* | 48,600 | 969,570 | ||||||
Dress Barn, Inc. (The)* | 55,700 | 948,293 | ||||||
Jos. A. Bank Clothiers, Inc.* | 5,400 | 180,684 | ||||||
Sally Holdings, Inc.* | 95,234 | 804,727 | ||||||
Talbots, Inc. (The) | 85,100 | 1,531,800 | ||||||
Tween Brands, Inc.* | 50,000 | 1,642,000 | ||||||
7,543,395 | ||||||||
Savings and Loans - 1.82% | ||||||||
Sterling Financial Corporation* | 82,548 | 2,220,128 | ||||||
WSFS Financial Corporation* | 11,892 | 739,385 | ||||||
2,959,513 | ||||||||
Security and Commodity Brokers - 2.17% | ||||||||
Piper Jaffray Companies* | 65,613 | 3,516,857 | ||||||
Timesharing and Software - 0.46% | ||||||||
TradeStation Group, Inc.* | 64,600 | 752,913 | ||||||
Trucking and Shipping - 1.45% | ||||||||
Kirby Corporation* | 26,700 | 1,178,538 | ||||||
Knight Transportation, Inc. | 68,600 | 1,180,606 | ||||||
2,359,144 | ||||||||
Utilities - Electric - 1.43% | ||||||||
Black Hills Corporation | 19,100 | 783,482 | ||||||
UIL Holdings Corporation | 48,700 | 1,534,050 | ||||||
2,317,532 | ||||||||
Utilities - Gas and Pipeline - 0.82% | ||||||||
Southwest Gas Corporation | 46,958 | 1,328,442 | ||||||
TOTAL COMMON STOCKS - 96.13% | $ | 156,091,373 | ||||||
(Cost: $146,946,011) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
---|---|---|---|---|---|---|---|---|
Banks - 1.77% | ||||||||
Rabobank USA Financial Corp. (Rabobank Nederland), | ||||||||
4.99%, 10-1-07 | $ | 2,882 | 2,882,000 | |||||
Household - General - 1.23% | ||||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | ||||||||
5.2%, 10-9-07 | 2,000 | 1,997,689 | ||||||
Leisure Time Industry - 1.23% | ||||||||
Walt Disney Company (The), | ||||||||
5.2%, 10-11-07 | 2,000 | 1,997,111 | ||||||
TOTAL SHORT-TERM SECURITIES - 4.23% | $ | 6,876,800 | ||||||
(Cost: $6,876,800) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.36% | $ | 162,968,173 | ||||||
(Cost: $153,822,811) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.36%) | (584,808 | ) | ||||||
NET ASSETS - 100.00% | $ | 162,383,365 | ||||||
Notes to Schedule of Investments |
*No dividends were paid during the preceding 12 months. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY SMALL CAP VALUE FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $153,823) (Notes 1 and 3) | $ | 162,968 | ||
Receivables: | ||||
Investment securities sold | 441 | |||
Fund shares sold | 196 | |||
Dividends and interest | 191 | |||
Prepaid and other assets | 33 | |||
Total assets | 163,829 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 597 | |||
Payable for investment securities purchased | 560 | |||
Accrued management fee (Note 2) | 115 | |||
Accrued shareholder servicing (Note 2) | 74 | |||
Accrued service fee (Note 2) | 42 | |||
Accrued distribution fee (Note 2) | 12 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Due to custodian | 3 | |||
Other | 37 | |||
Total liabilities | 1,446 | |||
Total net assets | $ | 162,383 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 145,255 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (441) | |||
Accumulated undistributed net realized gain on investment transactions | 8,424 | |||
Net unrealized appreciation in value of investments | 9,145 | |||
Net assets applicable to outstanding units of capital | $ | 162,383 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $15.97 | |||
Class B | $15.16 | |||
Class C | $15.38 | |||
Class E | $16.01 | |||
Class I | $16.29 | |||
Class Y | $16.19 | |||
Capital shares outstanding: | ||||
Class A | 7,799 | |||
Class B | 498 | |||
Class C | 712 | |||
Class E | 6 | |||
Class I | 35 | |||
Class Y | 1,152 |
See Notes to Financial Statements.
Statement of Operations
IVY SMALL CAP VALUE FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
;
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Dividends | $ | 897 | ||
Interest and amortization | 206 | |||
Total income | 1,103 | |||
Expenses (Note 2): | ||||
Investment management fee | 723 | |||
Shareholder servicing: | ||||
Class A | 300 | |||
Class B | 34 | |||
Class C | 31 | |||
Class E | –– | * | ||
Class I | 1 | |||
Class Y | 15 | |||
Service fee: | ||||
Class A | 153 | |||
Class B | 11 | |||
Class C | 15 | |||
Class Y | 25 | |||
Distribution fee: | ||||
Class A | 7 | |||
Class B | 32 | |||
Class C | 46 | |||
Class E | –– | * | ||
Accounting services fee | 36 | |||
Audit fees | 13 | |||
Custodian fees | 10 | |||
Legal fees | 1 | |||
Other | 77 | |||
Total expenses | 1,530 | |||
Net investment loss | (427 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 2,383 | |||
Unrealized depreciation in value of investments during the period | (4,784 | ) | ||
Net loss on investments | (2,401 | ) | ||
Net decrease in net assets resulting from operations | $ | (2,828 | ) | |
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY SMALL CAP VALUE FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | |||||||
---|---|---|---|---|---|---|---|---|
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment loss | $ | (427 | ) | $ | (428 | ) | ||
Realized net gain on investments | 2,383 | 13,402 | ||||||
Unrealized depreciation | (4,784 | ) | (1,667 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (2,828 | ) | 11,307 | |||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (8,051 | ) | ||||
Class B | (–– | ) | (627 | ) | ||||
Class C | (–– | ) | (925 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (1,624 | ) | ||||
(–– | ) | (11,227 | ) | |||||
Capital share transactions (Note 5) | 2,147 | 35,884 | ||||||
Total increase (decrease) | (681 | ) | 35,964 | |||||
NET ASSETS | ||||||||
Beginning of period | 163,064 | 127,100 | ||||||
End of period | $ | 162,383 | $ | 163,064 | ||||
Undistributed net investment loss | $ | (441 | ) | $ | (14 | ) | ||
(1)See "Financial Highlights" on pages 269 - 274.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended July 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 2003 | 2002 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.22 | $ | 16.24 | $ | 16.88 | $ | 16.68 | $ | 13.02 | $ | 12.25 | $ | 15.05 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment loss | (0.04 | ) | (0.03 | ) | (0.11 | ) | (0.13 | ) | (0.08 | ) | (0.09 | ) | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 1.35 | 2.62 | 1.52 | 3.76 | 1.74 | (1.84 | ) | ||||||||||||||||
Total from investment operations | (0.25 | ) | 1.32 | 2.51 | 1.39 | 3.68 | 1.65 | (1.92 | ) | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | )* | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | (0.88 | ) | (0.88 | ) | |||||||||||
Total distributions | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | (0.88 | ) | (0.88 | ) | |||||||||||
Net asset value, end of period | $ | 15.97 | $ | 16.22 | $ | 16.24 | $ | 16.88 | $ | 16.68 | $ | 13.02 | $ | 12.25 | |||||||||||
Total return(1) | - -1.54 | % | 8.26 | % | 16.44 | % | 8.23 | % | 28.29 | % | 14.91 | % | - -13.27 | % | |||||||||||
Net assets, end of period (in millions) | $125 | $121 | $86 | $66 | $65 | $59 | $53 | ||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.73 | %(2) | 1.74 | % | 1.80 | % | 1.76 | % | 1.65 | %(2)(3) | 1.53 | % | 1.27 | % | |||||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.43 | %(2) | - -0.24 | % | - -0.76 | % | - -0.79 | % | - -0.76 | %(2)(3) | - -0.82 | % | - -0.57 | % | |||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.73 | %(2)(4) | 1.74 | %(4) | 1.80 | %(4) | 1.76 | %(4) | 1.65 | %(2)(3)(4) | 1.53 | %(4) | 1.37 | % | |||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.43 | %(2)(4) | - -0.24 | %(4) | - -0.76 | %(4) | - -0.79 | %(4) | - -0.76 | %(2)(3)(4) | - -0.82 | %(4) | - -0.67 | % | |||||||||||
Portfolio turnover rate | 63 | % | 123 | % | 157 | % | 124 | % | 27 | % | 54 | % | 37 | % |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 15.48 | $ | 15.72 | $ | 16.59 | $ | 16.61 | $ | 15.27 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.16 | ) | (0.14 | ) | (0.25 | ) | (0.23 | ) | (0.05 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.16 | ) | 1.24 | 2.53 | 1.40 | 1.41 | |||||||||||||||
Total from investment operations | (0.32 | ) | 1.10 | 2.28 | 1.17 | 1.36 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Total distributions | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Net asset value, end of period | $ | 15.16 | $ | 15.48 | $ | 15.72 | $ | 16.59 | $ | 16.61 | |||||||||||
Total return | - -2.07 | % | 7.11 | % | 15.28 | % | 6.92 | % | 8.93 | % | |||||||||||
Net assets, end of period (in millions) | $7 | $9 | $7 | $5 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.82 | %(2) | 2.82 | % | 2.84 | % | 3.02 | % | 3.79 | %(2) | |||||||||||
Ratio of net investment loss to average net assets | - -1.53 | %(2) | - -1.33 | % | - -1.80 | % | - -1.88 | % | - -2.93 | %(2) | |||||||||||
Portfolio turnover rate | 63 | % | 123 | % | 157 | % | 124 | % | 27 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 15.69 | $ | 15.87 | $ | 16.67 | $ | 16.63 | $ | 15.27 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.13 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.05 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.18 | ) | 1.28 | 2.56 | 1.42 | 1.43 | |||||||||||||||
Total from investment operations | (0.31 | ) | 1.16 | 2.35 | 1.23 | 1.38 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Total distributions | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Net asset value, end of period | $ | 15.38 | $ | 15.69 | $ | 15.87 | $ | 16.67 | $ | 16.63 | |||||||||||
Total return | - -1.91 | % | 7.43 | % | 15.64 | % | 7.28 | % | 9.06 | % | |||||||||||
Net assets, end of period (in millions) | $11 | $12 | $10 | $8 | $2 | ||||||||||||||||
Ratio of expenses to average net assets | 2.52 | %(2) | 2.52 | % | 2.54 | % | 2.65 | % | 2.83 | %(2) | |||||||||||
Ratio of net investment loss to average net assets | - -1.23 | %(2) | - -1.04 | % | - -1.50 | % | - -1.53 | % | - -2.00 | %(2) | |||||||||||
Portfolio turnover rate | 63 | % | 123 | % | 157 | % | 124 | % | 27 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.22 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.05 | (2) | |||
Net realized and unrealized loss on investments | (0.26 | )(2) | |||
Total from investment operations | (0.21 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 16.01 | |||
Total return(3) | - -1.36 | % | |||
Net assets, end of period (in thousands) | $98 | ||||
Ratio of expenses to average net assets | 1.27 | %(4) | |||
Ratio of net investment income to average net assets | 0.03 | %(4) | |||
Portfolio turnover rate | 63 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 16.42 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.05 | (2) | |||
Net realized and unrealized loss on investments | (0.18 | )(2) | |||
Total from investment operations | (0.13 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 16.29 | |||
Total return | - -0.85 | % | |||
Net assets, end of period (in thousands) | $570 | ||||
Ratio of expenses to average net assets | 1.18 | %(3) | |||
Ratio of net investment loss to average net assets | - -0.11 | %(3) | |||
Portfolio turnover rate | 63 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 16.42 | $ | 16.36 | $ | 16.92 | $ | 16.68 | $ | 15.27 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | 0.03 | (0.06 | ) | (0.10 | ) | (0.04 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.22 | ) | 1.37 | 2.65 | 1.53 | 1.47 | |||||||||||||||
Total from investment operations | (0.23 | ) | 1.40 | 2.59 | 1.43 | 1.43 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Total distributions | (0.00 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||||
Net asset value, end of period | $ | 16.19 | $ | 16.42 | $ | 16.36 | $ | 16.92 | $ | 16.68 | |||||||||||
Total return | - -1.40 | % | 8.70 | % | 16.88 | % | 8.48 | % | 9.38 | % | |||||||||||
Net assets, end of period (in millions) | $19 | $21 | $24 | $25 | $25 | ||||||||||||||||
Ratio of expenses to average net assets | 1.38 | %(2) | 1.39 | % | 1.41 | % | 1.53 | % | 1.60 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | - -0.09 | %(2) | 0.08 | % | - -0.37 | % | - -0.56 | % | - -0.82 | %(2) | |||||||||||
Portfolio turnover rate | 63 | % | 123 | % | 157 | % | 124 | % | 27 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY VALUE FUND
Portfolio Highlights
On September 30, 2007, Ivy Value Fund had net assets totaling $90,201,620 invested
in a diversified portfolio of:
89.24% | Domestic Common Stocks | |
5.83% | Cash and Cash Equivalents | |
4.93% | Foreign Common Stocks |
Sector Weightings
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Financial Services Stocks | $ | 26.04 | |||
Energy Stocks | $ | 15.28 | |||
Technology Stocks | $ | 14.35 | |||
Health Care Stocks | $ | 11.06 | |||
Utilities Stocks | $ | 8.34 | |||
Cash and Cash Equivalents | $ | 5.83 | |||
Miscellaneous Stocks | $ | 5.61 | |||
Multi-Industry Stocks | $ | 4.04 | |||
Consumer Nondurables Stocks | $ | 3.96 | |||
Capital Goods Stocks | $ | 3.70 | |||
Transportation Stocks | $ | 1.79 |
The Investments of Ivy Value Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Aircraft - 4.25% | ||||||||
Lockheed Martin Corporation | 9,600 | $ | 1,041,504 | |||||
Raytheon Company | 43,800 | 2,795,316 | ||||||
3,836,820 | ||||||||
Banks - 6.47% | ||||||||
Bank of America Corporation | 71,056 | 3,571,985 | ||||||
Citigroup Inc. | 28,613 | 1,335,369 | ||||||
Wachovia Corporation | 18,450 | 925,267 | ||||||
5,832,621 | ||||||||
Beverages - 1.45% | ||||||||
Diageo plc, ADR | 14,950 | 1,311,564 | ||||||
Business Equipment and Services - 1.12% | ||||||||
Waste Management, Inc. | 26,700 | 1,007,658 | ||||||
Capital Equipment - 2.07% | ||||||||
Illinois Tool Works Inc. | 31,280 | 1,865,539 | ||||||
Chemicals - Petroleum and Inorganic - 0.87% | ||||||||
E.I. du Pont de Nemours and Company | 15,850 | 785,526 | ||||||
Communications Equipment - 1.37% | ||||||||
Nokia Corporation, Series A, ADR | 32,600 | 1,236,518 | ||||||
Computers - Main and Mini - 7.89% | ||||||||
Hewlett-Packard Company (A) | 84,000 | 4,182,360 | ||||||
International Business Machines Corporation (A) | 17,300 | 2,037,940 | ||||||
Xerox Corporation* | 51,700 | 896,478 | ||||||
7,116,778 | ||||||||
Defense - 0.84% | ||||||||
General Dynamics Corporation | 9,000 | 760,230 | ||||||
Finance Companies - 8.15% | ||||||||
Capital One Financial Corporation | 41,000 | 2,723,630 | ||||||
CIT Group Inc. (A) | 21,000 | 844,200 | ||||||
Discover Financial Services* | 10,650 | 221,520 | ||||||
Fannie Mae | 33,300 | 2,024,973 | ||||||
Freddie Mac | 26,000 | 1,534,260 | ||||||
7,348,583 | ||||||||
Food and Related - 2.51% | ||||||||
General Mills, Inc. | 22,800 | 1,322,628 | ||||||
Kraft Foods Inc. | 27,321 | 942,848 | ||||||
2,265,476 | ||||||||
Forest and Paper Products - 0.67% | ||||||||
Weyerhaeuser Company | 8,400 | 607,320 | ||||||
Health Care - Drugs - 4.40% | ||||||||
Endo Pharmaceuticals Holdings Inc.* | 30,200 | 935,898 | ||||||
McKesson Corporation | 32,200 | 1,893,038 | ||||||
Pfizer Inc. | 46,600 | 1,138,438 | ||||||
3,967,374 | ||||||||
Health Care - General - 1.52% | ||||||||
AmerisourceBergen Corporation | 30,300 | 1,373,499 | ||||||
Hospital Supply and Management - 5.14% | ||||||||
Aetna Inc. | 25,200 | 1,367,604 | ||||||
Coventry Health Care, Inc.* | 30,400 | 1,891,184 | ||||||
Humana Inc. (A)* | 19,700 | 1,376,636 | ||||||
4,635,424 | ||||||||
Insurance - Property and Casualty - 6.27% | ||||||||
Everest Re Group, Ltd. | 17,200 | 1,896,128 | ||||||
MBIA Inc. | 21,400 | 1,306,470 | ||||||
Travelers Companies, Inc. (The) | 48,752 | 2,454,176 | ||||||
5,656,774 | ||||||||
Metal Fabrication - 1.63% | ||||||||
Loews Corporation, Carolina Group | 17,900 | 1,471,917 | ||||||
Mining - 0.37% | ||||||||
Freeport-McMoRan Copper & Gold Inc., Class B | 3,200 | 335,648 | ||||||
Multiple Industry - 4.04% | ||||||||
Altria Group, Inc. | 52,400 | 3,643,372 | ||||||
Petroleum - International - 15.28% | ||||||||
Apache Corporation | 11,100 | 999,666 | ||||||
Chevron Corporation | 37,800 | 3,537,324 | ||||||
ConocoPhillips | 28,800 | 2,527,776 | ||||||
Devon Energy Corporation | 16,000 | 1,331,200 | ||||||
Exxon Mobil Corporation | 42,706 | 3,952,867 | ||||||
Marathon Oil Corporation | 25,200 | 1,436,904 | ||||||
13,785,737 | ||||||||
Railroad - 1.79% | ||||||||
Union Pacific Corporation | 14,300 | 1,616,758 | ||||||
Real Estate Investment Trust - 1.03% | ||||||||
Vornado Realty Trust | 8,400 | 918,540 | ||||||
Retail - General Merchandise - 1.55% | ||||||||
Macy's Inc. (A) | 43,300 | 1,399,456 | ||||||
Security and Commodity Brokers - 5.15% | ||||||||
Bear Stearns Companies Inc. (The) (A) | 7,300 | 896,513 | ||||||
J.P. Morgan Chase & Co. | 67,402 | 3,088,359 | ||||||
Morgan Stanley (A) | 10,500 | 661,500 | ||||||
4,646,372 | ||||||||
Utilities - Electric - 4.60% | ||||||||
Mirant Corporation* | 68,700 | 2,794,716 | ||||||
NRG Energy, Inc.* | 32,000 | 1,353,280 | ||||||
4,147,996 | ||||||||
Utilities - Telephone - 3.74% | ||||||||
AT&T Inc. (A) | 42,100 | 1,781,251 | ||||||
Sprint Nextel Corporation | 22,200 | 421,800 | ||||||
Verizon Communications Inc. | 26,400 | 1,168,992 | ||||||
3,372,043 | ||||||||
TOTAL COMMON STOCKS - 94.17% | $ | 84,945,543 | ||||||
(Cost: $66,638,827) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Chemicals - Speciality - 2.23% | ||||||||
Air Products and Chemicals, Inc., | ||||||||
5.05%, 10-1-07 | $ | 2,010 | 2,010,000 | |||||
Health Care - General - 3.32% | ||||||||
Johnson & Johnson, | ||||||||
4.73%, 10-9-07 | 3,000 | 2,996,847 | ||||||
Leisure Time Industries - 2.22% | ||||||||
Walt Disney Company (The), | ||||||||
5.2%, 10-11-07 | 2,000 | 1,997,111 | ||||||
TOTAL SHORT-TERM SECURITIES - 7.77% | $ | 7,003,958 | ||||||
(Cost: $7,003,958) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.94% | $ | 91,949,501 | ||||||
(Cost: $73,642,785) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.94%) | (1,747,881 | ) | ||||||
NET ASSETS - 100.00% | $ | 90,201,620 | ||||||
Notes to Schedule of Investments | ||||||||||||
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. | ||||||||||||
*No dividends were paid during the preceding 12 months. | ||||||||||||
(A)Securities serve as cover for the following written options outstanding at September 30, 2007. (See Note 6 to financial statements): | ||||||||||||
Underlying Security | Contracts Subject to Call | Expiration Month/ Exercise Price | Premium Received | Market Value | ||||||||
AT&T Inc. | 59 | October/42.5 | $ | 3,717 | $ | 3,776 | ||||||
Hewlett-Packard Company | 36 | November/52.5 | 2,088 | 3,060 | ||||||||
Humana Inc. | 218 | October/72.5 | 18,094 | 20,771 | ||||||||
$ | 23,899 | $ | 27,607 | |||||||||
Underlying Security | Contracts Subject to Put | Expiration Month/ Exercise Price | Premium Received | Market Value | ||||||||
Bear Stearns Companies Inc. (The) | 31 | October/90 | $ | 8,969 | $ | 465 | ||||||
CIT Group Inc. | 78 | November/30 | 3,042 | 3,510 | ||||||||
International Business Machines Corporation: | 25 | October/100 | 2,863 | 188 | ||||||||
32 | October/105 | 4,864 | 608 | |||||||||
Macy's Inc. | 145 | November/22.5 | 4,205 | 1,812 | ||||||||
Morgan Stanley | 51 | October/50 | 3,085 | 255 | ||||||||
$ | 27,028 | $ | 6,838 | |||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | ||||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY VALUE FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $73,643) (Notes 1 and 3) | $ | 91,949 | ||
Receivables: | ||||
Dividends and interest | 121 | |||
Fund shares sold | 76 | |||
Prepaid and other assets | 30 | |||
Total assets | 92,176 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 1,582 | |||
Payable to Fund shareholders | 171 | |||
Accrued management fee (Note 2) | 52 | |||
Accrued shareholder servicing (Note 2) | 42 | |||
Outstanding written options - at value (premium received - $51) (Note 6) | 34 | |||
Accrued service fee (Note 2) | 31 | |||
Due to custodian | 27 | |||
Accrued distribution fee (Note 2) | 7 | |||
Accrued accounting services fee (Note 2) | 4 | |||
Other | 24 | |||
Total liabilities | 1,974 | |||
Total net assets | $ | 90,202 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 67,783 | ||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 88 | |||
Accumulated undistributed net realized gain on investment transactions | 4,008 | |||
Net unrealized appreciation in value of investments | 18,323 | |||
Net assets applicable to outstanding units of capital | $ | 90,202 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $19.86 | |||
Class B | $19.61 | |||
Class C | $19.69 | |||
Class E | $19.88 | |||
Class I | $19.87 | |||
Class Y | $19.86 | |||
Capital shares outstanding: | ||||
Class A | 3,931 | |||
Class B | 317 | |||
Class C | 275 | |||
Class E | 5 | |||
Class I | 5 | |||
Class Y | 16 |
See Notes to Financial Statements.
Statement of Operations
IVY VALUE FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $1) | $ | 937 | ||
Interest and amortization | 83 | |||
Total income | 1,020 | |||
Expenses (Note 2): | ||||
Investment management fee | 320 | |||
Shareholder servicing: | ||||
Class A | 127 | |||
Class B | 17 | |||
Class C | 12 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Service fee: | ||||
Class A | 96 | |||
Class B | 8 | |||
Class C | 7 | |||
Class Y | –– | * | ||
Distribution fee: | ||||
Class A | 3 | |||
Class B | 24 | |||
Class C | 21 | |||
Class E | –– | * | ||
Accounting services fee | 25 | |||
Audit fees | 13 | |||
Custodian fees | 5 | |||
Legal fees | 1 | |||
Other | 54 | |||
Total expenses | 733 | |||
Net investment income | 287 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 3,159 | |||
Realized net loss on written options | (489 | ) | ||
Realized net gain on investments | 2,670 | |||
Unrealized appreciation in value of securities during the period | 804 | |||
Unrealized depreciation in value of written options during the period | (7 | ) | ||
Unrealized appreciation in value of investments during the period | 797 | |||
Net gain on investments | 3,467 | |||
Net increase in net assets resulting from operations | $ | 3,754 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY VALUE FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 287 | $ | 544 | ||||
Realized net gain on investments | 2,670 | 2,770 | ||||||
Unrealized appreciation | 797 | 7,603 | ||||||
Net increase in net assets resulting from operations | 3,754 | 10,917 | ||||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (241 | ) | (470 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (1 | ) | ||||
Class E | (–– | )* | NA | |||||
Class I | (1 | ) | NA | |||||
Class Y | (1 | ) | (51 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (1,502 | ) | ||||
Class B | (–– | ) | (120 | ) | ||||
Class C | (–– | ) | (106 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (8 | ) | ||||
(243 | ) | (2,258 | ) | |||||
Capital share transactions (Note 5) | 2,947 | (4,333 | ) | |||||
Total increase | 6,458 | 4,326 | ||||||
NET ASSETS | ||||||||
Beginning of period | 83,744 | 79,418 | ||||||
End of period | $ | 90,202 | $ | 83,744 | ||||
Undistributed net investment income | $ | 88 | $ | 44 | ||||
*Not shown due to rounding
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the fiscal period ended | For the fiscal year ended | For the period from 10-1-01 to | For the fiscal year ended | |||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | 7-31-03 | 7-31-02 | 9-30-01 | |||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.04 | $ | 17.17 | $ | 16.04 | $ | 14.54 | $ | 12.54 | $ | 11.81 | $ | 12.59 | $ | 15.08 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||
Net investment income | 0.07 | 0.13 | 0.10 | 0.15 | 0.08 | 0.12 | 0.08 | 0.09 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.81 | 2.28 | 1.14 | 1.48 | 1.98 | 0.72 | (0.78 | ) | (2.50 | ) | ||||||||||||||||||||
Total from investment operations | 0.88 | 2.41 | 1.24 | 1.63 | 2.06 | 0.84 | (0.70 | ) | (2.41 | ) | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.13 | ) | (0.11 | ) | (0.13 | ) | (0.06 | ) | (0.11 | ) | (0.08 | ) | (0.08 | ) | ||||||||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||||
Total distributions | (0.06 | ) | (0.54 | ) | (0.11 | ) | (0.13 | ) | (0.06 | ) | (0.11 | ) | (0.08 | ) | (0.08 | ) | ||||||||||||||
Net asset value, end of period | $ | 19.86 | $ | 19.04 | $ | 17.17 | $ | 16.04 | $ | 14.54 | $ | 12.54 | $ | 11.81 | $ | 12.59 | ||||||||||||||
Total return(1) | 4.62 | % | 14.12 | % | 7.75 | % | 11.21 | % | 16.32 | % | 7.23 | % | - -5.72 | % | - -15.97 | % | ||||||||||||||
Net assets, end of period (in millions) | $78 | $73 | $58 | $41 | $52 | $64 | $58 | $66 | ||||||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.48 | %(2) | 1.49 | % | 1.53 | % | 1.47 | % | 1.45 | %(2)(3) | 1.29 | % | 1.24 | %(2) | 1.24 | % | ||||||||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.74 | %(2) | 0.76 | % | 0.65 | % | 0.92 | % | 0.61 | %(2)(3) | 1.05 | % | 0.70 | %(2) | 0.61 | % | ||||||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.48 | %(2)(4) | 1.49 | %(4) | 1.53 | %(4) | 1.47 | %(4) | 1.52 | %(2)(3) | 1.50 | % | 1.41 | %(2) | 1.39 | % | ||||||||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 0.74 | %(2)(4) | 0.76 | %(4) | 0.65 | %(4) | 0.92 | %(4) | 0.53 | %(2)(3) | 0.84 | % | 0.53 | %(2) | 0.46 | % | ||||||||||||||
Portfolio turnover rate | 35 | % | 61 | % | 63 | % | 81 | % | 86 | % | 123 | % | 95 | % | 148 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 18.83 | $ | 17.04 | $ | 15.97 | $ | 14.50 | $ | 13.63 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.03 | ) | (0.04 | ) | 0.03 | 0.01 | |||||||||||||
Net realized and unrealized gain on investments | 0.80 | 2.23 | 1.12 | 1.44 | 0.90 | ||||||||||||||||
Total from investment operations | 0.78 | 2.20 | 1.08 | 1.47 | 0.91 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.41 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Net asset value, end of period | $ | 19.61 | $ | 18.83 | $ | 17.04 | $ | 15.97 | $ | 14.50 | |||||||||||
Total return | 4.09 | % | 12.99 | % | 6.73 | % | 10.14 | % | 6.65 | % | |||||||||||
Net assets, end of period (in millions) | $6 | $6 | $5 | $2 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.44 | %(2) | 2.46 | % | 2.50 | % | 2.53 | % | 3.12 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | - -0.20 | %(2) | - -0.21 | % | - -0.33 | % | 0.07 | % | - -1.29 | %(2) | |||||||||||
Portfolio turnover rate | 35 | % | 61 | % | 63 | % | 81 | % | 86 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 18.90 | $ | 17.08 | $ | 16.00 | $ | 14.51 | $ | 13.63 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.01 | ) | (0.04 | ) | 0.03 | 0.02 | |||||||||||||
Net realized and unrealized gain on investments | 0.80 | 2.24 | 1.13 | 1.46 | 0.90 | ||||||||||||||||
Total from investment operations | 0.79 | 2.23 | 1.09 | 1.49 | 0.92 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | )* | (0.01 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.41 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | |||||||||||
Net asset value, end of period | $ | 19.69 | $ | 18.90 | $ | 17.08 | $ | 16.00 | $ | 14.51 | |||||||||||
Total return | 4.18 | % | 13.09 | % | 6.80 | % | 10.27 | % | 6.73 | % | |||||||||||
Net assets, end of period (in millions) | $6 | $5 | $4 | $3 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.34 | %(2) | 2.38 | % | 2.41 | % | 2.42 | % | 2.90 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | - -0.12 | %(2) | - -0.12 | % | - -0.23 | % | 0.15 | % | - -1.18 | %(2) | |||||||||||
Portfolio turnover rate | 35 | % | 61 | % | 63 | % | 81 | % | 86 | %(3) |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 19.04 | |||
Income from investment operations: | |||||
Net investment income | 0.11 | (2) | |||
Net realized and unrealized gain on investments | 0.80 | (2) | |||
Total from investment operations | 0.91 | ||||
Less distributions from: | |||||
Net investment income | (0.07 | ) | |||
Capital gains | 0.00 | ||||
Total distributions | (0.07 | ) | |||
Net asset value, end of period | $ | 19.88 | |||
Total return(3) | 4.49 | % | |||
Net assets, end of period (in thousands) | $105 | ||||
Ratio of expenses to average net assets | 1.18 | %(4) | |||
Ratio of net investment income to average net assets | 1.08 | %(4) | |||
Portfolio turnover rate | 35 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 19.04 | |||
Income from investment operations: | |||||
Net investment income | 0.12 | (2) | |||
Net realized and unrealized gain on investments | 0.81 | (2) | |||
Total from investment operations | 0.93 | ||||
Less distributions from: | |||||
Net investment income | (0.10 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.10 | ) | |||
Net asset value, end of period | $ | 19.87 | |||
Total return | 4.53 | % | |||
Net assets, end of period (in thousands) | $105 | ||||
Ratio of expenses to average net assets | 1.08 | %(3) | |||
Ratio of net investment income to average net assets | 1.18 | %(3) | |||
Portfolio turnover rate | 35 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 12-8-03(1) to | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 19.04 | $ | 17.18 | $ | 16.05 | $ | 14.54 | $ | 13.63 | |||||||||||
Income from investment operations: | |||||||||||||||||||||
Net investment income | 0.10 | 0.22 | (2) | 0.13 | 0.17 | 0.01 | |||||||||||||||
Net realized and unrealized gain on investments | 0.80 | 2.22 | (2) | 1.15 | 1.49 | 0.95 | |||||||||||||||
Total from investment operations | 0.90 | 2.44 | 1.28 | 1.66 | 0.96 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.08 | ) | (0.17 | ) | (0.15 | ) | (0.15 | ) | (0.05 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.08 | ) | (0.58 | ) | (0.15 | ) | (0.15 | ) | (0.05 | ) | |||||||||||
Net asset value, end of period | $ | 19.86 | $ | 19.04 | $ | 17.18 | $ | 16.05 | $ | 14.54 | |||||||||||
Total return | 4.76 | % | 14.28 | % | 7.99 | % | 11.44 | % | 7.05 | % | |||||||||||
Net assets, end of period (in thousands) | $308 | $294 | $12,286 | $20,286 | $22,379 | ||||||||||||||||
Ratio of expenses to average net assets | 1.30 | %(3) | 1.29 | % | 1.31 | % | 1.34 | % | 1.48 | %(3) | |||||||||||
Ratio of net investment income to average net assets | 0.92 | %(3) | 0.96 | % | 0.89 | % | 1.09 | % | 0.35 | %(3) | |||||||||||
Portfolio turnover rate | 35 | % | 61 | % | 63 | % | 81 | % | 86 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Notes to Financial Statements
September 30, 2007 (Unaudited)NOTE 1 - Significant Accounting Policies
Ivy Funds (the Trust) is organized as a Massachusetts business trust under a Declaration of Trust dated December 21, 1983 and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Trust issues sixteen series of capital shares; each series represents ownership of a separate mutual fund (Fund). The assets belonging to each Fund are held separately by the custodian. The capital shares of each Fund represent a pro rata beneficial interest in the principal, net income and realized and unrealized capital gains or losses of its respective investments and other assets. The following is a summary of significant accounting policies consistently followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.
A. Security valuation - Each stock and convertible bond is valued at the latest sale price thereof on each business day of the fiscal period as reported by the principal securities exchange on which the issue is traded or, if no sale is reported for a stock, the average of the latest bid and asked prices. Bonds, other than convertible bonds, are valued using a pricing system provided by a pricing service or dealer in bonds. Convertible bonds are valued using this pricing system only on days when there is no sale reported. Stocks which are traded over-the-counter are priced using the Nasdaq Stock Market, which provides information on bid and asked prices quoted by major dealers in such stocks. Securities for which quotations are not readily available or are deemed not to be reliable because of significant events or circumstances identified between the closing of their principal markets and the closing of the New York Sto ck Exchange are valued at fair value as determined in good faith under procedures established by and under the general supervision of the Trust's Board of Trustees. Management's valuation committee makes fair value determinations for the Trust, subject to the supervision of the Board of Trustees. Short-term debt securities, purchased with less than 60 days to maturity, are valued at amortized cost, which approximates market value. Short-term debt securities denominated in foreign currencies are valued at amortized cost in that currency.B. Security transactions and related investment income - Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Premium and discount on the purchase of bonds are amortized for both financial and tax reporting purposes over the remaining lives of the bonds. Dividend inco me is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Interest income is recorded on the accrual basis. See Note 3 - Investment Securities Transactions.
C. Foreign currency translations - All assets and liabilities denominated in foreign currencies are translated into United States dollars daily. Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. The Trust combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments.
D. Forward foreign currency exchange contracts - A forward foreign currency exchange contract (Forward Contract) is an obligation to purchase or sell a specific currency at a future date at a fixed price. Forward Contracts are marked-to-market daily at the applicable translation rates and the resulting unrealized gains or losses are reflected in the Trust's financial statements. Gains or losses are realized by the Trust at the time the Forward Contract is extinguished. Contracts may be extinguished either by entry into a closing transaction or by delivery of the currency. Risks may arise from the possibility that the other party will not complete the obligations of the contract and from unanticipated movements in the value of the foreign currency relative to the United States dollar. The Trust uses Forward Contracts to attempt to reduce the overall risk of its investments.
E. Federal income taxes - It is the Trust's policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, the Trust intends to pay distributions as required to avoid imposition of excise tax. Accordingly, provision has not been made for Federal income taxes. See Note 4 - Federal Income Tax Matters.
F. Dividends and distributions - Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as deferral of wash sales and post-October losses, foreign currency transactions, net operating losses and expiring capital loss carryovers.
G. Repurchase agreements - Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, remains at least equal to the value of the loan, including accrued interest thereon. The collateral for the repurchase agreement is held by the custodian bank.
H. New Accounting Pronouncements - In June 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 16, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management has concluded that the adoption of FIN 48 will not result in a material impact on the Trust's net assets, results of operations and financial statement disclosures. In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." SFAS 157 defines fair value for purposes of financial statement presentation, establishes a hierarchy for mea suring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Trust will adopt SFAS 157 during 2008 and its potential impact, if any, on each Fund's financial statements is currently being assessed by management.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
NOTE 2 - Investment Management and Payments to Affiliated PersonsIvy Investment Management Company (IICO), a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as the investment manager for each Fund. IICO provides advice and supervises investments for which services it is paid a fee. The fee is payable by each Fund at the following annual rates:
Fund | Net Asset Breakpoints | Annual Rate |
---|---|---|
Ivy Balanced Fund | Up to $1 Billion | 0.70% |
Over $1 Billion up to $2 Billion | 0.65% | |
Over $2 Billion up to $3 Billion | 0.60% | |
Over $3 Billion | 0.55% | |
Ivy Bond Fund | Up to $500 Million | 0.525% |
Over $500 Million and up to $1 Billion | 0.50% | |
Over $1 Billion and up to $1.5 Billion | 0.45% | |
Over $1.5 Billion | 0.40% | |
Ivy Cundill Global Value Fund | Up to $500 Million | 1.00% |
Over $500 Million and up to $1 Billion | 0.85% | |
Over $1 Billion and up to $2 Billion | 0.83% | |
Over $2 Billion and up to $3 Billion | 0.80% | |
Over $3 Billion | 0.76% | |
Ivy Dividend Income Fund | Up to $1 Billion | 0.70% |
Over $1 Billion up to $2 Billion | 0.65% | |
Over $2 Billion up to $3 Billion | 0.60% | |
Over $3 Billion | 0.55% | |
Ivy European Opportunities Fund | Up to $250 Million | 1.00% |
Over $250 Million up to $500 Million | 0.85% | |
Over $500 Million | 0.75% | |
Ivy Global Natural Resources Fund | Up to $500 Million | 1.00% |
Over $500 Million and up to $1 Billion | 0.85% | |
Over $1 Billion and up to $2 Billion | 0.83% | |
Over $2 Billion and up to $3 Billion | 0.80% | |
Over $3 Billion | 0.76% | |
Ivy International Balanced Fund | Up to $1 Billion | 0.70% |
Over $1 Billion and up to $2 Billion | 0.65% | |
Over $2 Billion and up to $3 Billion | 0.60% | |
Over $3 Billion | 0.55% | |
Ivy International Core Equity Fund | Up to $1 Billion | 0.85% |
Over $1 Billion and up to $2 Billion | 0.83% | |
Over $2 Billion and up to $3 Billion | 0.80% | |
Over $3 Billion | 0.70% | |
Ivy International Growth Fund | Up to $1 Billion | 0.85% |
Over $1 Billion and up to $2 Billion | 0.83% | |
Over $2 Billion and up to $3 Billion | 0.80% | |
Over $3 Billion | 0.70% | |
Ivy Managed European/Pacific Fund | All levels | 0.05% |
Ivy Managed International Opportunities Fund | All levels | 0.05% |
Ivy Mortgage Securities Fund | Up to $500 Million | 0.50% |
Over $500 Million and up to $1 Billion | 0.45% | |
Over $1 Billion and up to $1.5 Billion | 0.40% | |
Over $1.5 Billion | 0.35% | |
Ivy Pacific Opportunities Fund | Up to $500 Million | 1.00% |
Over $500 Million and up to $1 Billion | 0.85% | |
Over $1 Billion and up to $2 Billion | 0.83% | |
Over $2 Billion and up to $3 Billion | 0.80% | |
Over $3 Billion | 0.76% | |
Ivy Real Estate Securities Fund | Up to $1 Billion | 0.90% |
Over $1 Billion up to $2 Billion | 0.87% | |
Over $2 Billion up to $3 Billion | 0.84% | |
Over $3 Billion | 0.80% | |
Ivy Small Cap Value Fund | Up to $1 Billion | 0.85% |
Over $1 Billion up to $2 Billion | 0.83% | |
Over $2 Billion up to $3 Billion | 0.80% | |
Over $3 Billion | 0.76% | |
Ivy Value Fund | Up to $1 Billion | 0.70% |
Over $1 Billion up to $2 Billion | 0.65% | |
Over $2 Billion up to $3 Billion | 0.60% | |
Over $3 Billion | 0.55% |
These fees are accrued daily and are paid monthly. However, IICO has voluntarily agreed to waive its management fee for Ivy Dividend Income Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund on any day that the Fund's net assets are less than $25 million, subject to IICO's right to change or modify this waiver. During the six-month period ending September 30, 2007, IICO voluntarily waived its fee (in thousands) as shown in the following table:
Ivy Managed European/Pacific Fund | $ | 2 | |
Ivy Managed International Opportunities Fund | 1 |
Mackenzie Financial Corporation (MFC) serves as subadvisor to Ivy Global Natural Resources Fund under an agreement with IICO and receives a fee as follows: 0.50% of the Fund's average daily net assets up to $500 million, 0.425% of net assets over $500 million and up to $1 billion, 0.415% of net assets over $1 billion and up to $2 billion, 0.40% of net assets over $2 billion and up to $3 billion, and 0.38% of net assets over $3 billion.
Effective December 7, 2006, MFC serves as subadvisor to Ivy Cundill Global Value Fund under an agreement with IICO and receives a fee as follows:
Fund | Net Asset Breakpoints | Annual Rate |
---|---|---|
Ivy Cundill Global Value Fund | On the first $500 Million | 0.50% |
On the next $500 Million | 0.425% | |
On the next $1 Billion | 0.415% | |
On the next $1 Billion | 0.40% | |
On all assets exceeding $3 Billion | 0.38% |
MFC was the interim subadvisor to Ivy Cundill Global Value Fund from September 22, 2006 until December 7, 2006. Prior to September 22, 2006, Cundill Investment Research Ltd. served as subadvisor to the Fund.
Henderson Global Investors (North America) Inc. (HGINA) serves as subadvisor to Ivy European Opportunities Fund under an agreement with IICO. Henderson Investment Management Ltd., under a subadvisory agreement with HGINA, serves as subadvisor to the Fund. HGINA receives a fee payable monthly at an annual rate of 0.50% of average net assets.
Advantus Capital Management, Inc. serves as subadvisor to Ivy Bond Fund, Ivy Mortgage Securities Fund and Ivy Real Estate Securities Fund under an agreement with IICO and receives a fee equal to, on an annual basis, 0.27%, 0.30% and 0.55% of the respective Fund's average net assets.
Effective February 2, 2007, BlackRock Capital Management, Inc. serves as subadvisor to Ivy Small Cap Value Fund under an agreement with IICO and receives a fee equal to, on an annual basis, 0.50% of the Fund's average net assets.
BlackRock Capital Management, Inc, was the interim subadvisor to the Fund from September 27, 2006 until February 2, 2007. Prior to September 27, 2006, Blackrock Financial Management Inc. served as subadvisor to the Fund.
Templeton Investment Counsel, LLC serves as subadvisor to Ivy International Balanced Fund under an agreement with IICO and receives a fee that is shown in the following table:
Fund | Net Asset Breakpoints | Annual Rate |
---|---|---|
Ivy International Balanced Fund | On the first $100 Million | 0.50% |
All net assets exceeding $100 Million | 0.40% |
Pursuant to a Master Fund Accounting Services Agreement, IICO provides certain accounting and pricing services for each Fund. As of March 18, 2003, IICO assigned its responsibilities under the Accounting Services Agreement to Waddell & Reed Services Company (WRSCO), an indirect subsidiary of WDR. For these services, each Fund, other than Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund (the Ivy Managed Funds), pays WRSCO a monthly fee of one-twelfth of the annual fee shown in the following table:
Accounting Services Fee | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Average Net Asset Level (in millions) | Annual Fee Rate for Each Level | |||||||||||
From | $ | 0 | to | $ | 10 | $ | 0 | |||||
From | $ | 10 | to | $ | 25 | $ | 11,500 | |||||
From | $ | 25 | to | $ | 50 | $ | 23,100 | |||||
From | $ | 50 | to | $ | 100 | $ | 35,500 | |||||
From | $ | 100 | to | $ | 200 | $ | 48,400 | |||||
From | $ | 200 | to | $ | 350 | $ | 63,200 | |||||
From | $ | 350 | to | $ | 550 | $ | 82,500 | |||||
From | $ | 550 | to | $ | 750 | $ | 96,300 | |||||
From | $ | 750 | to | $ | 1,000 | $ | 121,600 | |||||
$ | 1,000 and Over | $ | 148,500 | |||||||||
In addition, for each class of shares in excess of one, each Fund pays WRSCO a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.
Under the Accounting and Administrative Services Agreement for the Ivy Managed Funds, each Fund pays WRSCO, for its services, a monthly fee of one-twelfth of the annual fee shown in the following table:
Accounting Services Fee | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Average Net Asset Level (in millions) | Annual Fee Rate for Each Level | |||||||||||
From | $ | 0 | to | $ | 10 | $ | 0 | |||||
From | $ | 10 | to | $ | 25 | $ | 5,748 | |||||
From | $ | 25 | to | $ | 50 | $ | 11,550 | |||||
From | $ | 50 | to | $ | 100 | $ | 17,748 | |||||
From | $ | 100 | to | $ | 200 | $ | 24,198 | |||||
From | $ | 200 | to | $ | 350 | $ | 31,602 | |||||
From | $ | 350 | to | $ | 550 | $ | 41,250 | |||||
From | $ | 550 | to | $ | 750 | $ | 48,150 | |||||
From | $ | 750 | to | $ | 1,000 | $ | 60,798 | |||||
$ | 1,000 and Over | $ | 74,250 | |||||||||
In addition, for each class of shares in excess of one, each of the Ivy Managed Funds pays WRSCO a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.
Under the Shareholder Servicing Agreement, except for the Ivy Managed Funds, with respect to Class A, Class B, Class C, Class E, Advisor Class and Class II shares, for each shareholder account that was in existence at any time during the prior month: 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 pay WRSCO a monthly fee of $1.5792; Ivy Bond Fund and Ivy Mortgage Securities Fund pay WRSCO a monthly fee of $1.6958; and Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Growth Fund, Ivy International Core Equity Fund and Ivy Pacific Opportunities Fund each pay WRSCO a monthly fee of $1.5042. For Class I and Class Y shares, each Fund pays WRSCO a monthly fee at an annual rate of 0.15% of the average daily net assets of the class for the preceding month. For Class R shares, each Fund pays WRSCO a monthly fee at an annual rate of 0.20% of the average daily net assets of the class for the preceding month. Effective September 1, 2006, the Shareholder Servicing Agreement with respect to Class A, Class B and Class C shares has been revised so that each Fund pays WRSCO an annual fee (payable monthly) for each account of the Fund that is non-networked and is as shown above; however, WRSCO has agreed to reduce those fees if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Porfolios, Inc., Ivy Funds and Ivy Funds, Inc.) reaches certain levels. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain intermediaries), WRSCO has agreed to reduce its per account fees charged to the Funds to $0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classes. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WRSCO if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. WRSCO pays such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate (e.g., 0.10%) fee, based on the average daily net asset value of the omnibus account (or a combination thereof).
Under the Shareholder Servicing Agreement for the Ivy Managed Funds, no fee is charged to the Ivy Managed Funds as compensation for services rendered under this Shareholder Servicing Agreement. The Ivy Managed Funds do, however, reimburse any out-of-pocket expenses incurred by WRSCO in the performance of its duties under this Agreement, including long distance telephone communications costs; microfilm and storage costs for certain documents; forms, printing and mailing costs; charges of any sub-agent used by WRSCO in performing services under the Shareholder Servicing Agreement; and costs of legal and special services not provided by IFDI, IICO or WRSCO.
Pursuant to an Administrative Services Agreement, IICO provides certain administrative services to each Fund. The administrative fee for each Fund is a monthly fee at the annual rate of 0.01% of each Fund's average daily net assets.
As principal underwriter for the Trust's shares, Ivy Funds Distributor, Inc. (IFDI) receives sales commissions (which are not an expense of the Trust) for Class A and Class E shares. A contingent deferred sales charge (CDSC) may be assessed against a shareholder's redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IFDI. During the six-month period ended September 30, 2007, IFDI received the following amounts in sales commissions and CDSC:
Sales Commissions | CDSC | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Class A | Class B | Class C | Class E | |||||||||||||||
Ivy Balanced Fund | $ | 45,115 | $ | –– | $ | 1,695 | $ | 401 | $ | –– | ||||||||
Ivy Bond Fund | 83,193 | 246 | 999 | 257 | –– | |||||||||||||
Ivy Cundill Global Value Fund | 629,640 | 1,916 | 53,892 | 4,490 | –– | |||||||||||||
Ivy Dividend Income Fund | 249,624 | 2 | 6,952 | 1,037 | –– | |||||||||||||
Ivy European Opportunities Fund | 771,824 | –– | 14,646 | 5,047 | –– | |||||||||||||
Ivy Global Natural Resources Fund | 3,050,203 | –– | 192,933 | 70,761 | –– | |||||||||||||
Ivy International Balanced Fund | 380,253 | 2,348 | 4,342 | 4,247 | –– | |||||||||||||
Ivy International Core Equity Fund | 333,175 | 90 | 3,082 | 1,284 | –– | |||||||||||||
Ivy International Growth Fund | 89,989 | 57 | 6,713 | 657 | –– | |||||||||||||
Ivy Managed European/Pacific Fund | 322,542 | –– | 235 | 105 | –– | |||||||||||||
Ivy Managed International Opportunities Fund | 199,305 | –– | 185 | 21 | –– | |||||||||||||
Ivy Mortgage Securities Fund | 266,320 | 392 | 15,840 | 1,589 | –– | |||||||||||||
Ivy Pacific Opportunities Fund | 957,419 | –– | 11,458 | 1,915 | –– | |||||||||||||
Ivy Real Estate Securities Fund | 609,404 | 1,440 | 15,130 | 3,166 | –– | |||||||||||||
Ivy Small Cap Value Fund | 227,597 | 1,494 | 3,632 | 235 | –– | |||||||||||||
Ivy Value Fund | 85,524 | –– | 1,450 | 377 | –– |
With respect to Class A, Class B, Class C and Class E shares, IFDI pays sales commissions and all expenses in connection with the sale of the Trust's shares, except for registration fees and related expenses. During the six-month period ended September 30, 2007, IFDI paid the following amounts:
Ivy Balanced Fund | $ | 44,551 | |
Ivy Bond Fund | 87,839 | ||
Ivy Cundill Global Value Fund | 746,783 | ||
Ivy Dividend Income Fund | 284,079 | ||
Ivy European Opportunities Fund | 879,221 | ||
Ivy Global Natural Resources Fund | 5,740,767 | ||
Ivy International Balanced Fund | 482,212 | ||
Ivy International Core Equity Fund | 412,838 | ||
Ivy International Growth Fund | 111,880 | ||
Ivy Managed European/Pacific Fund | 171,632 | ||
Ivy Managed International Opportunities Fund | 299,254 | ||
Ivy Mortgage Securities Fund | 277,043 | ||
Ivy Pacific Opportunities Fund | 1,016,007 | ||
Ivy Real Estate Securities Fund | 645,782 | ||
Ivy Small Cap Value Fund | 240,148 | ||
Ivy Value Fund | 94,945 |
Under a Distribution and Service Plan for Class A shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay a distribution and/or service fee to IFDI in an amount not to exceed 0.25% of the Fund's average annual net assets attributable to that class. The fee is to be paid to reimburse IFDI for amounts it expends in connection with the distribution of the Class A shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts. Under a Distribution and Service Plan for Class B and Class C shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay IFDI a service fee in an amount not to exceed 0.25% of the Fund's average annual net assets attributable to that class. The fee is to be paid to reimburse IFDI for amounts it expends in connection with the provision of personal services to Fund shareholders and/or maintenance of shareholder accounts. Under the Distributi on and Service Plan for Class B shares and Class C shares adopted by the Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay IFDI a distribution fee not to exceed 0.75% of the Fund's average annual net assets attributable to that class to compensate IFDI for its services in connection with the distribution of shares of that class. The Class B Plan and the Class C Plan each permit IFDI to receive compensation, through the distribution fee, for its distribution activities for that class. Under the Distribution and Service Plan for Class E shares adopted by the Trust on behalf of each of the Ivy Funds pursuant to Rule 12b-1 under the 1940 Act, each Fund may pay IFDI, the principal underwriter for the Fund, a fee up to 0.25% of the Fund's average annual net assets attributable to Class E shares, paid daily, to compensate IFDI for its costs and expenses in connection with, either directly or through others, the distribution of the Class E shares, the provision of personal serv ices to Class E shareholders and/or maintenance of Class E shareholder accounts. The Class E Plan permits IFDI to be compensated for these Class E-related distribution activities through the distribution fee, subject to the limit contained in the Plan. The Class E Plan also permits IFDI to be compensated for amounts it expends: in compensating, training and supporting registered financial advisors, sales manager and/or other appropriate personnel in providing personal services to Class E shareholders of the funds and/or maintaining Class E shareholder accounts; increasing services provided to Class E shareholders of the Funds by office personnel located at field sales offices; engaging in other activities useful in providing personal service to Class E shareholders of the Funds and/or maintenance of Class E shareholder accounts; and in compensating broker-dealers and other third parties who may regularly sell Class E shares of the Funds, and may regularly provide shareholder services and/or maintain sharehol der accounts with respect to Class E shares. Under the Class R Plan, each Fund may pay IFDI a fee of up to 0.50%, on an annual basis, of the average daily net assets attributable to that class to compensate IFDI for, either directly or through third parties, distributing the Class R shares of that Fund, providing personal service to Class R shareholders and/or maintenance of Class R shareholder accounts. 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 attributable to that class to compensate IFDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal service to Class Y shareholders and/or maintenance of Class Y shareholder accounts.
For Ivy Cundill Global Value Fund, Ivy Global Natural Resources Fund, Ivy International Core Equity Fund and Ivy Pacific Opportunities Fund, IICO has contractually agreed to reimburse a Fund's expenses, for the calendar year ended December 31, 2006, and for the following five years, to the extent necessary to ensure that the Fund's annual operating expenses, when calculated at the Fund level, do not exceed 2.50% of the Fund's average net assets (excluding 12b-1 fees and certain other expenses). During the six-month period ended September 30, 2007, IICO did not reimburse any of the Fund's expenses.
In addition, IFDI and WRSCO have voluntarily agreed to waive sufficient Fund expenses to ensure that the total annual fund operating expenses do not exceed the following levels for the specified funds/classes:
Fund and Class | Expense Limitation (as a percentage of average net assets of each Class) | ||||
Ivy Cundill Global Value Fund, Class A | 1.90% | ||||
Ivy Cundill Global Value Fund, Class C | 2.55% | ||||
Ivy Cundill Global Value Fund, Class Y | 1.20% | ||||
Ivy Global Natural Resources Fund, Class A | 1.70% | ||||
Ivy Global Natural Resources Fund, Class C | 2.40% | ||||
Ivy Global Natural Resources Fund, Class Y | 1.20% |
During the six-month period ended September 30, 2007, IFDI reimbursed the Fund's service fees (in thousands) as shown:
Ivy Cundill Global Value Fund, Class Y | $ | 15 | |
Ivy Global Natural Resources Fund, Class Y | 132 |
During the six-month period ended September 30, 2007, the Funds paid Trustees' regular compensation of $220,538, which is included in other expenses.
NOTE 3 - Investment Securities TransactionsInvestment securities transactions for the six-month period ended September 30, 2007 are summarized as follows:
Ivy Balanced Fund | Ivy Bond Fund | Ivy Cundill Global Value Fund | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 3,369,048 | $ | 20,727,596 | $ | 231,976,666 | |||||
Purchases of U.S. government securities | –– | 16,726,929 | –– | ||||||||
Purchases of short-term securities | 355,666,440 | 384,900,946 | 14,057,618,583 | ||||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 8,877,948 | 9,849,967 | 244,752,711 | ||||||||
Proceeds from maturities and sales of U.S. government securities | 408,645 | 13,723,122 | –– | ||||||||
Proceeds from maturities and sales of short-term securities | 352,786,927 | 380,638,693 | 14,131,855,000 |
Ivy Dividend Income Fund | Ivy European Opportunities Fund | Ivy Global Natural Resources Fund | |||||||
---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 38,689,398 | $ | 201,219,097 | $ | 4,750,012,824 | |||
Purchases of U.S. government securities | –– | –– | –– | ||||||
Purchases of short-term securities | 802,885,737 | 1,385,403,926 | 9,022,749,613 | ||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 14,152,543 | 144,948,635 | 3,856,325,651 | ||||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | –– | ||||||
Proceeds from maturities and sales of short-term securities | 797,098,767 | 1,384,119,195 | 8,989,325,651 |
Ivy International Balanced Fund | Ivy International Core Equity Fund | Ivy International Growth Fund | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 70,036,503 | $ | 176,456,642 | $ | 122,734,364 | |||||
Purchases of U.S. government securities | –– | –– | –– | ||||||||
Purchases of short-term securities | 861,721,262 | 662,267,306 | 623,649,791 | ||||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 23,063,885 | 132,352,893 | 127,518,708 | ||||||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | –– | ||||||||
Proceeds from maturities and sales of short-term securities | 861,454,617 | 660,684,148 | 620,127,026 |
Ivy Managed European/ Pacific Fund | Ivy Managed International Opportunities Fund | Ivy Mortgage Securities Fund | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 30,165,562 | $ | 55,696,326 | $ | 40,695,970 | |||||
Purchases of U.S. government securities | –– | –– | 133,334,172 | ||||||||
Purchases of short-term securities | 49,200,000 | 91,168,000 | 1,160,569,186 | ||||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 71,307 | –– | 22,566,166 | ||||||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | 133,612,283 | ||||||||
Proceeds from maturities and sales of short-term securities | 48,766,000 | 90,409,000 | 1,138,712,000 |
Ivy Pacific Opportunities Fund | Ivy Real Estate Securities Fund | Ivy Small Cap Value Fund | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 245,085,925 | $ | 57,848,415 | $ | 106,877,105 | |||||
Purchases of U.S. government securities | –– | –– | –– | ||||||||
Purchases of short-term securities | 802,249,878 | 322,997,391 | 564,294,682 | ||||||||
Purchases of options | 3,600,005 | –– | –– | ||||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 214,748,359 | 178,139,142 | 101,797,205 | ||||||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | –– | ||||||||
Proceeds from maturities and sales of short-term securities | 778,577,216 | 320,023,520 | 567,872,878 | ||||||||
Proceeds from options | 2,353,503 | –– | –– |
Ivy Value Fund | |||
---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 31,644,471 | |
Purchases of U.S. government securities | –– | ||
Purchases of short-term securities | 345,018,479 | ||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 30,653,743 | ||
Proceeds from maturities and sales of U.S. government securities | –– | ||
Proceeds from maturities and sales of short-term securities | 341,791,806 |
For Federal income tax purposes, cost of investments owned at September 30, 2007 and the related unrealized appreciation (depreciation) were as follows:
Cost | Appreciation | Depreciation | Aggregate Appreciation (Depreciation) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Ivy Balanced Fund | $ | 76,420,713 | $ | 24,537,969 | $ | 499,995 | $ | 24,037,974 | |||||
Ivy Bond Fund | 90,009,791 | 407,237 | 2,242,890 | (1,835,653 | ) | ||||||||
Ivy Cundill Global Value Fund | 812,645,276 | 159,911,997 | 105,092,155 | 54,819,842 | |||||||||
Ivy Dividend Income Fund | 145,409,966 | 44,450,564 | 1,404,607 | 43,045,957 | |||||||||
Ivy European Opportunities Fund | 502,643,002 | 127,794,040 | 14,740,936 | 113,053,104 | |||||||||
Ivy Global Natural Resources Fund | 5,712,255,476 | 1,904,547,422 | 31,533,919 | 1,873,013,503 | |||||||||
Ivy International Balanced Fund | 296,183,993 | 50,894,612 | 5,416,073 | 45,478,539 | |||||||||
Ivy International Core Equity Fund | 247,092,280 | 42,959,946 | 2,115,530 | 40,844,416 | |||||||||
Ivy International Growth Fund | 194,727,906 | 77,058,835 | 2,202,039 | 74,856,796 | |||||||||
Ivy Managed European/Pacific Fund | 30,524,800 | 2,832,087 | –– | 2,832,087 | |||||||||
Ivy Managed International Opportunities Fund | 56,455,326 | 3,218,270 | –– | 3,218,270 | |||||||||
Ivy Mortgage Securities Fund | 375,980,810 | 1,543,922 | 10,839,609 | (9,295,687 | ) | ||||||||
Ivy Pacific Opportunities Fund | 439,115,590 | 236,060,737 | 7,194,141 | 228,866,596 | |||||||||
Ivy Real Estate Securities Fund | 401,940,249 | 135,412,897 | 5,895,437 | 129,517,460 | |||||||||
Ivy Small Cap Value Fund | 153,856,923 | 15,592,003 | 6,480,753 | 9,111,250 | |||||||||
Ivy Value Fund | 73,987,693 | 19,225,202 | 1,263,394 | 17,961,808 |
For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2007 and the related net capital losses and post-October activity were as follows:
Ivy Balanced Fund | Ivy Bond Fund | Ivy Cundill Global Value Fund | ||||||||||
Net ordinary income | $ | 988,959 | $ | 2,847,833 | $ | 25,207,346 | ||||||
Distributed ordinary income | 1,085,606 | 2,841,082 | 14,086,154 | |||||||||
Undistributed ordinary income | 38,786* | 36,210* | 11,236,019 | |||||||||
Realized long-term capital gains | 653,025 | –– | 51,372,008 | |||||||||
Distributed long-term capital gains | –– | –– | 35,772,161 | |||||||||
Undistributed long-term capital gains | 653,025 | –– | 19,196,641 | |||||||||
Net capital losses | –– | 461,131 | –– | |||||||||
Post-October losses deferred | –– | –– | 287,658 |
Ivy Dividend Income Fund | Ivy European Opportunities Fund | Ivy Global Natural Resources Fund | ||||||||||
Net ordinary income | $ | 1,068,470 | $ | 4,879,556 | $ | 142,452,257 | ||||||
Distributed ordinary income | 1,079,904 | 4,118,063 | 197,937,422 | |||||||||
Undistributed ordinary income | 28,255* | 761,493 | 54,518,171 | |||||||||
Realized long-term capital gains | 2,824,612 | 10,359,289 | 250,403,581 | |||||||||
Distributed long-term capital gains | 1,389,185 | –– | 220,660,776 | |||||||||
Undistributed long-term capital gains | 1,435,427 | 10,359,289 | 78,900,749 | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | –– | –– | 573,848 |
Ivy International Balanced Fund | Ivy International Core Equity Fund | Ivy International Growth Fund | ||||||||||
Net ordinary income | $ | 6,270,627 | $ | 7,228,646 | $ | 566,909 | ||||||
Distributed ordinary income | 5,842,010 | 837,091 | 244,825 | |||||||||
Undistributed ordinary income | 1,949,547 | 6,391,555 | 322,084 | |||||||||
Realized long-term capital gains | 4,862,347 | 12,068,191 | –– | |||||||||
Distributed long-term capital gains | 5,666,925 | 6,971,717 | –– | |||||||||
Undistributed long-term capital gains | 1,924,208 | 5,096,474 | –– | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | –– | 44,740 | –– | |||||||||
*This entire amount was distributed prior to September 30, 2007. |
Ivy Mortgage Securities Fund | Ivy Pacific Opportunities Fund | Ivy Real Estate Securities Fund | ||||||||||
Net ordinary income | $ | 14,179,448 | $ | 16,574,426 | $ | 13,944,969 | ||||||
Distributed ordinary income | 14,174,142 | 6,928,367 | 8,767,618 | |||||||||
Undistributed ordinary income | 176,961* | 14,509,064 | 7,085,430 | |||||||||
Realized long-term capital gains | –– | 9,390,595 | 26,471,724 | |||||||||
Distributed long-term capital gains | –– | 6,780,715 | 19,091,476 | |||||||||
Undistributed long-term capital gains | –– | 4,211,703 | 12,870,552 | |||||||||
Net capital losses | 484,106 | –– | –– | |||||||||
Post-October losses deferred | 275,654 | 129,873 | –– |
Ivy Small Cap Value Fund | Ivy Value Fund | |||||||
Net ordinary income | $ | 7,736,967 | $ | 1,503,840 | ||||
Distributed ordinary income | 6,874,058 | 521,854 | ||||||
Undistributed ordinary income | 4,223,778 | 1,011,126 | ||||||
Realized long-term capital gains | 5,487,432 | 2,139,011 | ||||||
Distributed long-term capital gains | 4,367,343 | 1,735,651 | ||||||
Undistributed long-term capital gains | 2,187,065 | 878,555 | ||||||
Net capital losses | –– | –– | ||||||
Post-October losses deferred | –– | –– |
Internal Revenue Code regulations permit each Fund to defer into its next fiscal year net capital losses or net long-term capital losses and currency losses incurred between each November 1 and the end of its fiscal year (post-October losses).
Capital Loss Carryovers are available to offset future realized capital gain net income incurred in the 8 taxable years succeeding the loss year for Federal income tax purposes. The following shows the totals by year in which the capital loss carryovers will expire if not utilized.
Ivy Bond Fund | Ivy Global Natural Resources Fund | Ivy International Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2008 | $ | –– | $ | –– | $ | 407,464 | ||||||
March 31, 2009 | 28,681 | –– | 77,610,725 | |||||||||
March 31, 2010 | –– | 167,845 | 146,210,535 | |||||||||
March 31, 2011 | –– | –– | 47,213,802 | |||||||||
March 31, 2015 | 461,131 | –– | –– | |||||||||
Total carryover | $ | 489,812 | $ | 167,845 | $ | 271,442,526 | ||||||
*This entire amount was distributed prior to September 30, 2007. |
Ivy Mortgage Securities Fund | Ivy Pacific Opportunities Fund | |||||||
---|---|---|---|---|---|---|---|---|
March 31, 2008 | $ | –– | $ | 157,220 | ||||
March 31, 2009 | –– | 157,220 | ||||||
March 31, 2010 | –– | 157,220 | ||||||
March 31, 2014 | 164,447 | –– | ||||||
March 31, 2015 | 484,106 | –– | ||||||
Total carryover | $ | 648,553 | $ | 471,660 | ||||
Ivy Developing Markets Fund was merged into Ivy Pacific Opportunities Fund as of June 16, 2003. At the time of the merger, Ivy Developing Markets Fund had capital loss carryovers available to offset future gains of the Ivy Pacific Opportunities Fund. These carryovers are limited to $157,220 for each period ending from March 31, 2008 through 2010 plus any unused limitations from prior years.
Ivy International Growth Fund was merged into Ivy International Growth Fund (formerly, Ivy International Fund) as of March 27, 2006. At the time of the merger, Ivy International Growth Fund had capital loss carryovers available to offset future gains of the Ivy International Fund. These carryovers are limited to $7,403,026 for the period ending March 31, 2008 and $3,234,412 for each period ending from March 31, 2009 through 2010 plus any unused limitations from prior years and the amount of certain built-in gains realized, if any.
Note 5 - Multiclass OperationsEach Fund within the Trust offers five classes of shares, Class A, Class B, Class C, Class I and Class Y, and all Funds except Ivy Balanced Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Pacific Opportunities Fund, Ivy Small Cap Value Fund and Ivy Value Fund offer Class E shares. Each share class has equal rights as to assets and voting privileges. In addition, Ivy Global Natural Resources Fund and Ivy Real Estate Securities Fund offer Class R shares, which also have equal rights as to assets and voting privileges. Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy Global Natural Resources Fund, Ivy International Core Equity Fund, Ivy International Growth Fund and Ivy Pacific Opportunities Fund also offered Advisor Class shares and Ivy Cundill Global Value Fund and Ivy International Growth Fund also offered Class II shares. Advisor Class and Class II shares are no longer available for investment. A comprehensive discussion of the terms under which shares of each class are offered is contained in the Prospectuses and the Statement of Additional Information for the Trust.
Income, non-class specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based on the value of their relative net assets as of the beginning of each day adjusted for the prior day's capital share activity.
Transactions in capital stock for the six-month period ended September 30, 2007 are summarized below. Amounts are in thousands.
Ivy Balanced Fund | Ivy Bond Fund | |||||||
---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||
Class A | 322 | 2,165 | ||||||
Class B | 18 | 64 | ||||||
Class C | 39 | 273 | ||||||
Class E | 6 | 40 | ||||||
Class I | 6 | 16 | ||||||
Class Y | 52 | 1 | ||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | 18 | 91 | ||||||
Class B | –– | * | 3 | |||||
Class C | –– | * | 7 | |||||
Class E | –– | * | 1 | |||||
Class I | –– | * | –– | * | ||||
Class Y | 10 | –– | * | |||||
Shares redeemed: | ||||||||
Class A | (377 | ) | (564 | ) | ||||
Class B | (13 | ) | (32 | ) | ||||
Class C | (34 | ) | (265 | ) | ||||
Class E | (–– | ) | (–– | )* | ||||
Class I | (–– | ) | (1 | ) | ||||
Class Y | (217 | ) | (4 | ) | ||||
Increase (decrease) in outstanding capital shares | (170) | 1,795 | ||||||
*Not shown due to rounding. | ||||||||
Value issued from sale of shares: | ||||||||
Class A | $ | 5,497 | $ | 22,271 | ||||
Class B | 296 | 658 | ||||||
Class C | 670 | 2,799 | ||||||
Class E | 100 | 417 | ||||||
Class I | 100 | 164 | ||||||
Class Y | 897 | 8 | ||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | 312 | 940 | ||||||
Class B | 1 | 33 | ||||||
Class C | 4 | 72 | ||||||
Class E | 1 | 7 | ||||||
Class I | 1 | 4 | ||||||
Class Y | 165 | –– | * | |||||
Value redeemed: | ||||||||
Class A | (6,408 | ) | (5,812 | ) | ||||
Class B | (226 | ) | (328 | ) | ||||
Class C | (577 | ) | (2,710 | ) | ||||
Class E | (–– | ) | (2 | ) | ||||
Class I | (–– | ) | (10 | ) | ||||
Class Y | (3,698 | ) | (42 | ) | ||||
Increase (decrease) in outstanding capital | $ | (2,865 | ) | $ | 18,469 | |||
*Not shown due to rounding. |
Ivy Cundill Global Value Fund | Ivy Dividend Income Fund | Ivy European Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 4,618 | 2,203 | 2,072 | |||||||||
Class B | 140 | 114 | 169 | |||||||||
Class C | 799 | 254 | 203 | |||||||||
Class E | 20 | 41 | 2 | |||||||||
Class I | 156 | 6 | 697 | |||||||||
Class Y | 108 | 338 | 37 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 35 | –– | |||||||||
Class B | –– | –– | * | –– | ||||||||
Class C | –– | 1 | –– | |||||||||
Class E | –– | –– | * | –– | ||||||||
Class I | –– | –– | * | –– | ||||||||
Class Y | –– | 1 | –– | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (6,959 | ) | (1,053 | ) | (1,199 | ) | ||||||
Class B | (468 | ) | (69 | ) | (129 | ) | ||||||
Class C | (3,089 | ) | (147 | ) | (164 | ) | ||||||
Class E | (–– | )* | (–– | )* | (–– | ) | ||||||
Class I | (29 | ) | (–– | ) | (13 | ) | ||||||
Class Y | (279 | ) | (29 | ) | (80 | ) | ||||||
Advisor Class | (16 | ) | NA | (4 | ) | |||||||
Class II | (–– | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital shares | (4,999 | ) | 1,695 | 1,591 | ||||||||
*Not shown due to rounding. | ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 75,677 | $ | 36,907 | $ | 88,620 | ||||||
Class B | 2,262 | 1,892 | 7,009 | |||||||||
Class C | 12,916 | 4,240 | 8,420 | |||||||||
Class E | 332 | 676 | 100 | |||||||||
Class I | 2,557 | 100 | 29,817 | |||||||||
Class Y | 1,795 | 5,708 | 1,554 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 599 | –– | |||||||||
Class B | –– | 3 | –– | |||||||||
Class C | –– | 18 | –– | |||||||||
Class E | –– | 1 | –– | |||||||||
Class I | –– | 1 | –– | |||||||||
Class Y | –– | 13 | –– | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (112,487 | ) | (17,742 | ) | (51,078 | ) | ||||||
Class B | (7,423 | ) | (1,161 | ) | (5,306 | ) | ||||||
Class C | (48,118 | ) | (2,462 | ) | (6,736 | ) | ||||||
Class E | (1 | ) | (6 | ) | (–– | ) | ||||||
Class I | (475 | ) | (–– | ) | (561 | ) | ||||||
Class Y | (4,502 | ) | (486 | ) | (3,278 | ) | ||||||
Advisor Class | (264 | ) | NA | (193 | ) | |||||||
Class II | (–– | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital | $ | (77,731 | ) | $ | 28,301 | $ | 68,368 | |||||
Ivy Global Natural Resources Fund | Ivy International Balanced Fund | Ivy International Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 28,702 | 2,791 | 2,816 | |||||||||
Class B | 944 | 116 | 141 | |||||||||
Class C | 8,170 | 637 | 398 | |||||||||
Class E | 39 | 25 | 40 | |||||||||
Class I | 1,108 | 1,332 | 639 | |||||||||
Class R | 221 | NA | NA | |||||||||
Class Y | 6,784 | 81 | 108 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 192 | –– | |||||||||
Class B | –– | 7 | –– | |||||||||
Class C | –– | 19 | –– | |||||||||
Class E | –– | –– | * | –– | ||||||||
Class I | –– | 12 | –– | |||||||||
Class R | –– | NA | NA | |||||||||
Class Y | –– | –– | * | –– | ||||||||
Advisor Class | –– | NA | ||||||||||
Shares redeemed: | ||||||||||||
Class A | (12,899 | ) | (2,372 | ) | (1,535 | ) | ||||||
Class B | (663 | ) | (62 | ) | (233 | ) | ||||||
Class C | (2,751 | ) | (298 | ) | (205 | ) | ||||||
Class E | (–– | )* | (–– | )* | (–– | )* | ||||||
Class I | (21 | ) | (6 | ) | (8 | ) | ||||||
Class R | (52 | ) | NA | NA | ||||||||
Class Y | (1,024 | ) | (73 | ) | (69 | ) | ||||||
Advisor Class | (1 | ) | NA | (–– | ) | |||||||
Increase in outstanding capital shares | 28,557 | 2,401 | 2,092 | |||||||||
*Not shown due to rounding. | ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 1,033,693 | $ | 48,404 | $ | 53,110 | ||||||
Class B | 31,899 | 2,003 | 2,454 | |||||||||
Class C | 270,732 | 11,016 | 6,916 | |||||||||
Class E | 1,377 | 439 | 740 | |||||||||
Class I | 39,715 | 23,112 | 12,003 | |||||||||
Class R | 8,019 | NA | NA | |||||||||
Class Y | 243,824 | 1,403 | 2,035 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 3,295 | –– | |||||||||
Class B | –– | 112 | –– | |||||||||
Class C | –– | 332 | –– | |||||||||
Class E | –– | 4 | –– | |||||||||
Class I | –– | 213 | –– | |||||||||
Class R | –– | NA | NA | |||||||||
Class Y | –– | 7 | –– | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (459,693 | ) | (41,162 | ) | (28,758 | ) | ||||||
Class B | (22,219 | ) | (1,061 | ) | (4,022 | ) | ||||||
Class C | (90,557 | ) | (5,152 | ) | (3,546 | ) | ||||||
Class E | (2 | ) | (1 | ) | (5 | ) | ||||||
Class I | (781 | ) | (98 | ) | (151 | ) | ||||||
Class R | (1,864 | ) | NA | NA | ||||||||
Class Y | (36,152 | ) | (1,243 | ) | (1,233 | ) | ||||||
Advisor Class | (26 | ) | NA | (–– | ) | |||||||
Increase in outstanding capital | $ | 1,017,965 | $ | 41,623 | $ | 39,543 | ||||||
Ivy International Growth Fund | Ivy Managed European/ Pacific Fund | Ivy Managed International Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 307 | 2,581 | 4,917 | |||||||||
Class B | 21 | 94 | 182 | |||||||||
Class C | 50 | 128 | 216 | |||||||||
Class E | 3 | 20 | 20 | |||||||||
Class I | 366 | 20 | 20 | |||||||||
Class Y | 9 | 24 | 38 | |||||||||
Advisor Class | –– | NA | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | –– | –– | –– | |||||||||
Class I | –– | –– | –– | |||||||||
Class Y | –– | –– | –– | |||||||||
Advisor Class | –– | NA | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (636 | ) | (82 | ) | (131 | ) | ||||||
Class B | (52 | ) | (8 | ) | (5 | ) | ||||||
Class C | (147 | ) | (2 | ) | (13 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (11 | ) | (–– | ) | (–– | ) | ||||||
Class Y | (53 | ) | (–– | ) | (–– | ) | ||||||
Advisor Class | (–– | ) | NA | NA | ||||||||
Class II | (1 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital shares | (144 | ) | 2,775 | 5,244 | ||||||||
| ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 11,295 | $ | 28,282 | $ | 52,267 | ||||||
Class B | 717 | 1,011 | 1,918 | |||||||||
Class C | 1,657 | 1,383 | 2,274 | |||||||||
Class E | 100 | 200 | 200 | |||||||||
Class I | 13,508 | 200 | 200 | |||||||||
Class Y | 325 | 251 | 398 | |||||||||
Advisor Class | –– | NA | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | –– | –– | –– | |||||||||
Class I | –– | –– | –– | |||||||||
Class Y | –– | –– | –– | |||||||||
Advisor Class | –– | NA | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (23,412 | ) | (909 | ) | (1,376 | ) | ||||||
Class B | (1,751 | ) | (84 | ) | (57 | ) | ||||||
Class C | (4,943 | ) | (25 | ) | (140 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (401 | ) | (–– | ) | (–– | ) | ||||||
Class Y | (1,864 | ) | (–– | ) | (–– | ) | ||||||
Advisor Class | (–– | ) | NA | NA | ||||||||
Class II | (44 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital | $ | (4,813 | ) | $ | 30,309 | $ | 55,684 | |||||
Ivy Mortgage Securities Fund | Ivy Pacific Opportunities Fund | Ivy Real Estate Securities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 6,209 | 4,980 | 1,965 | |||||||||
Class B | 327 | 230 | 63 | |||||||||
Class C | 400 | 332 | 91 | |||||||||
Class E | 17 | 6 | 16 | |||||||||
Class I | 30 | 1,144 | 85 | |||||||||
Class R | NA | NA | 2 | |||||||||
Class Y | 332 | 137 | 113 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 600 | –– | 23 | |||||||||
Class B | 20 | –– | –– | |||||||||
Class C | 33 | –– | –– | |||||||||
Class E | –– | * | –– | –– | * | |||||||
Class I | 1 | –– | –– | * | ||||||||
Class R | NA | NA | –– | * | ||||||||
Class Y | 23 | –– | 21 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (4,258 | ) | (3,104 | ) | (3,377 | ) | ||||||
Class B | (151 | ) | (194 | ) | (158 | ) | ||||||
Class C | (366 | ) | (293 | ) | (302 | ) | ||||||
Class E | (–– | )* | (–– | ) | (–– | )* | ||||||
Class I | (6 | ) | (62 | ) | (23 | ) | ||||||
Class R | NA | NA | (1 | ) | ||||||||
Class Y | (413 | ) | (257 | ) | (3,597 | ) | ||||||
Advisor Class | NA | (–– | ) | NA | ||||||||
Increase (decrease) in outstanding capital shares | 2,798 | 2,919 | (5,079) | |||||||||
*Not shown due to rounding. | ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 64,764 | $ | 97,948 | $ | 48,699 | ||||||
Class B | 3,401 | 4,093 | 1,557 | |||||||||
Class C | 4,168 | 6,091 | 2,268 | |||||||||
Class E | 181 | 100 | 420 | |||||||||
Class I | 323 | 21,954 | 2,222 | |||||||||
Class R | NA | NA | 40 | |||||||||
Class Y | 3,472 | 2,793 | 2,762 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 6,256 | –– | 559 | |||||||||
Class B | 209 | –– | –– | |||||||||
Class C | 348 | –– | –– | |||||||||
Class E | 3 | –– | –– | |||||||||
Class I | 6 | –– | 6 | |||||||||
Class R | NA | NA | –– | * | ||||||||
Class Y | 239 | –– | 513 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (44,412 | ) | (59,620 | ) | (81,238 | ) | ||||||
Class B | (1,575 | ) | (3,443 | ) | (3,736 | ) | ||||||
Class C | (3,819 | ) | (5,215 | ) | (7,161 | ) | ||||||
Class E | (3 | ) | (–– | ) | (1 | ) | ||||||
Class I | (67 | ) | (1,242 | ) | (560 | ) | ||||||
Class R | NA | NA | (17 | ) | ||||||||
Class Y | (4,307 | ) | (4,582 | ) | (86,883 | ) | ||||||
Advisor Class | NA | (–– | ) | NA | ||||||||
Increase (decrease) in outstanding capital | $ | 29,187 | $ | 58,877 | $ | (120,550) | ||||||
*Not shown due to rounding. |
Ivy Small Cap Value Fund | Ivy Value Fund | |||||||
---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||
Class A | 1,907 | 767 | ||||||
Class B | 66 | 61 | ||||||
Class C | 83 | 56 | ||||||
Class E | 6 | 5 | ||||||
Class I | 43 | 5 | ||||||
Class Y | 67 | –– | * | |||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | –– | 12 | ||||||
Class B | –– | –– | ||||||
Class C | –– | –– | ||||||
Class E | –– | –– | * | |||||
Class I | –– | –– | * | |||||
Class Y | –– | –– | * | |||||
Shares redeemed: | ||||||||
Class A | (1,557 | ) | (648 | ) | ||||
Class B | (120 | ) | (57 | ) | ||||
Class C | (158 | ) | (56 | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (8 | ) | (–– | ) | ||||
Class Y | (216 | ) | (–– | )* | ||||
Increase in outstanding capital shares | 113 | 145 | ||||||
*Not shown due to rounding. | ||||||||
Value issued from sale of shares: | ||||||||
Class A | $ | 31,112 | $ | 15,302 | ||||
Class B | 1,021 | 1,192 | ||||||
Class C | 1,307 | 1,123 | ||||||
Class E | 100 | 100 | ||||||
Class I | 717 | 100 | ||||||
Class Y | 1,111 | –– | * | |||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | –– | 237 | ||||||
Class B | –– | –– | ||||||
Class C | –– | –– | ||||||
Class E | –– | –– | * | |||||
Class I | –– | 1 | ||||||
Class Y | –– | –– | * | |||||
Value redeemed: | ||||||||
Class A | (25,246 | ) | (12,874 | ) | ||||
Class B | (1,842 | ) | (1,127 | ) | ||||
Class C | (2,480 | ) | (1,107 | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (139 | ) | (–– | ) | ||||
Class Y | (3,514 | ) | (–– | )* | ||||
Increase in outstanding capital | $ | 2,147 | $ | 2,947 | ||||
*Not shown due to rounding. |
Transactions in capital stock for the fiscal year ended March 31, 2007 are summarized below. Amounts are in thousands.
Ivy Balanced Fund | Ivy Bond Fund | |||||||
---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||
Class A | 763 | 1,752 | ||||||
Class B | 74 | 96 | ||||||
Class C | 117 | 403 | ||||||
Class Y | 605 | 4 | ||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | 40 | 123 | ||||||
Class B | –– | * | 5 | |||||
Class C | 1 | 8 | ||||||
Class Y | 26 | –– | * | |||||
Shares redeemed: | ||||||||
Class A | (891 | ) | (1,129 | ) | ||||
Class B | (50 | ) | (67 | ) | ||||
Class C | (62 | ) | (189 | ) | ||||
Class Y | (1,352 | ) | (2 | ) | ||||
Increase (decrease) in outstanding capital shares | (729 | ) | 1,004 | |||||
| ||||||||
Value issued from sale of shares: | ||||||||
Class A | $ | 11,988 | $ | 18,156 | ||||
Class B | 1,146 | 996 | ||||||
Class C | 1,841 | 4,183 | ||||||
Class Y | 9,521 | 42 | ||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||
Class A | 636 | 1,280 | ||||||
Class B | 3 | 50 | ||||||
Class C | 8 | 80 | ||||||
Class Y | 411 | 2 | ||||||
Value redeemed: | ||||||||
Class A | (13,917 | ) | (11,724 | ) | ||||
Class B | (773 | ) | (699 | ) | ||||
Class C | (968 | ) | (1,956 | ) | ||||
Class Y | (21,240 | ) | (24 | ) | ||||
Increase (decrease) in outstanding capital | $ | (11,344 | ) | $ | 10,386 | |||
*Not shown due to rounding. |
Ivy Cundill Global Value Fund | Ivy Dividend Income Fund | Ivy European Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 11,695 | 3,823 | 4,299 | |||||||||
Class B | 586 | 242 | 270 | |||||||||
Class C | 3,326 | 498 | 431 | |||||||||
Class Y | 196 | 137 | �� | 110 | ||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 2,079 | 127 | 88 | |||||||||
Class B | 161 | 8 | 4 | |||||||||
Class C | 641 | 17 | 5 | |||||||||
Class Y | 39 | 2 | 2 | |||||||||
Advisor Class | 11 | NA | –– | * | ||||||||
Class II | –– | * | NA | NA | ||||||||
Shares redeemed: | ||||||||||||
Class A | (11,797 | ) | (1,412 | ) | (1,798 | ) | ||||||
Class B | (831 | ) | (107 | ) | (310 | ) | ||||||
Class C | (3,225 | ) | (240 | ) | (348 | ) | ||||||
Class Y | (361 | ) | (26 | ) | (50 | ) | ||||||
Advisor Class | (20 | ) | NA | (19 | ) | |||||||
Class II | (–– | ) | NA | NA | ||||||||
Increase in outstanding capital shares | 2,500 | 3,069 | 2,684 | |||||||||
*Not shown due to rounding. | ||||||||||||
| ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 181,422 | $ | 57,590 | $ | 155,748 | ||||||
Class B | 8,886 | 3,622 | 9,546 | |||||||||
Class C | 50,324 | 7,446 | 15,127 | |||||||||
Class Y | 3,046 | 2,107 | 4,028 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 32,120 | 1,941 | 3,391 | |||||||||
Class B | 2,444 | 126 | 136 | |||||||||
Class C | 9,682 | 259 | 198 | |||||||||
Class Y | 602 | 26 | 68 | |||||||||
Advisor Class | 173 | NA | 12 | |||||||||
Class II | 1 | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (182,765 | ) | (21,237 | ) | (64,019 | ) | ||||||
Class B | (12,526 | ) | (1,609 | ) | (10,625 | ) | ||||||
Class C | (48,759 | ) | (3,596 | ) | (11,838 | ) | ||||||
Class Y | (5,541 | ) | (392 | ) | (1,746 | ) | ||||||
Advisor Class | (321 | ) | NA | (672 | ) | |||||||
Class II | (–– | ) | NA | NA | ||||||||
Increase in outstanding capital | $ | 38,788 | $ | 46,283 | $ | 99,354 | ||||||
Ivy Global Natural Resources Fund | Ivy International Balanced Fund | Ivy International Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 44,041 | 7,862 | 5,938 | |||||||||
Class B | 2,245 | 576 | 464 | |||||||||
Class C | 14,135 | 1,287 | 1,226 | |||||||||
Class R | 128 | NA | NA | |||||||||
Class Y | 6,910 | 83 | 199 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | NA | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 7,438 | 566 | 292 | |||||||||
Class B | 648 | 29 | 21 | |||||||||
Class C | 2,648 | 56 | 56 | |||||||||
Class R | 3 | NA | NA | |||||||||
Class Y | 425 | 3 | 5 | |||||||||
Advisor Class | 1 | NA | –– | |||||||||
Class II | NA | NA | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (23,141 | ) | (1,840 | ) | (1,416 | ) | ||||||
Class B | (1,584 | ) | (253 | ) | (440 | ) | ||||||
Class C | (6,347 | ) | (182 | ) | (231 | ) | ||||||
Class R | (12 | ) | NA | NA | ||||||||
Class Y | (1,415 | ) | (31 | ) | (52 | ) | ||||||
Advisor Class | (3 | ) | NA | (–– | ) | |||||||
Class II | NA | NA | NA | |||||||||
Increase in outstanding capital shares | 46,120 | 8,156 | 6,062 | |||||||||
| ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 1,355,319 | $ | 127,445 | $ | 97,987 | ||||||
Class B | 65,627 | 9,278 | 7,113 | |||||||||
Class C | 404,164 | 20,788 | 18,787 | |||||||||
Class R | 3,867 | NA | NA | |||||||||
Class Y | 214,763 | 1,362 | 3,361 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | NA | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 228,809 | 9,230 | 4,915 | |||||||||
Class B | 18,786 | 472 | 328 | |||||||||
Class C | 75,247 | 914 | 877 | |||||||||
Class R | 110 | NA | NA | |||||||||
Class Y | 13,131 | 53 | 83 | |||||||||
Advisor Class | 25 | NA | –– | |||||||||
Class II | NA | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (705,593 | ) | (29,494 | ) | (23,415 | ) | ||||||
Class B | (45,518 | ) | (4,181 | ) | (6,571 | ) | ||||||
Class C | (178,056 | ) | (2,929 | ) | (3,545 | ) | ||||||
Class R | (369 | ) | NA | NA | ||||||||
Class Y | (43,417 | ) | (502 | ) | (847 | ) | ||||||
Advisor Class | (90 | ) | NA | (–– | ) | |||||||
Class II | NA | NA | NA | |||||||||
Increase in outstanding capital | $ | 1,406,805 | $ | 132,436 | $ | 99,073 | ||||||
Ivy International Growth Fund | Ivy Mortgage Securities Fund | Ivy Pacific Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 672 | 9,873 | 12,129 | |||||||||
Class B | 81 | 358 | 699 | |||||||||
Class C | 133 | 806 | 1,079 | |||||||||
Class Y | 44 | 926 | 444 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 6 | 1,061 | 702 | |||||||||
Class B | –– | 36 | 43 | |||||||||
Class C | –– | 63 | 61 | |||||||||
Class Y | –– | * | 36 | 15 | ||||||||
Advisor Class | –– | NA | –– | * | ||||||||
Class II | –– | * | NA | NA | ||||||||
Shares redeemed: | ||||||||||||
Class A | (1,134 | ) | (7,938 | ) | (3,940 | ) | ||||||
Class B | (192 | ) | (327 | ) | (298 | ) | ||||||
Class C | (396 | ) | (854 | ) | (371 | ) | ||||||
Class Y | (108 | ) | (425 | ) | (246 | ) | ||||||
Advisor Class | (–– | ) | NA | (–– | )* | |||||||
Class II | (1 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital shares | (895 | ) | 3,615 | 10,317 | ||||||||
*Not shown due to rounding. | ||||||||||||
| ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 20,944 | $ | 103,705 | $ | 186,431 | ||||||
Class B | 2,325 | 3,756 | 9,928 | |||||||||
Class C | 3,806 | 8,470 | 15,685 | |||||||||
Class Y | 1,416 | 9,736 | 6,813 | |||||||||
Advisor Class | –– | NA | –– | |||||||||
Class II | –– | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 187 | 11,153 | 11,390 | |||||||||
Class B | –– | 375 | 636 | |||||||||
Class C | –– | 665 | 927 | |||||||||
Class Y | 7 | 380 | 250 | |||||||||
Advisor Class | –– | NA | 1 | |||||||||
Class II | 1 | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (34,986 | ) | (83,295 | ) | (59,663 | ) | ||||||
Class B | (5,467 | ) | (3,431 | ) | (4,184 | ) | ||||||
Class C | (11,362 | ) | (8,958 | ) | (5,310 | ) | ||||||
Class Y | (3,203 | ) | (4,465 | ) | (3,734 | ) | ||||||
Advisor Class | (–– | ) | NA | (3 | ) | |||||||
Class II | (40 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital | $ | (26,372 | ) | $ | 38,091 | $ | 159,167 | |||||
Ivy Real Estate Securities Fund | Ivy Small Cap Value Fund | Ivy Value Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 6,162 | 3,124 | 1,485 | |||||||||
Class B | 273 | 170 | 130 | |||||||||
Class C | 402 | 279 | 118 | |||||||||
Class R | 1 | NA | NA | |||||||||
Class Y | 2,397 | 328 | 78 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 564 | 494 | 105 | |||||||||
Class B | 27 | 38 | 6 | |||||||||
Class C | 31 | 57 | 6 | |||||||||
Class R | –– | * | NA | NA | ||||||||
Class Y | 446 | 100 | 3 | |||||||||
Shares redeemed: | ||||||||||||
Class A | (2,689 | ) | (1,460 | ) | (1,195 | ) | ||||||
Class B | (108 | ) | (98 | ) | (94 | ) | ||||||
Class C | (162 | ) | (172 | ) | (85 | ) | ||||||
Class R | (–– | )* | NA | NA | ||||||||
Class Y | (2,052 | ) | (615 | ) | (780 | ) | ||||||
Increase (decrease) in outstanding capital shares | 5,292 | 2,245 | (223) | |||||||||
| ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 153,443 | $ | 50,177 | $ | 26,492 | ||||||
Class B | 6,799 | 2,628 | 2,306 | |||||||||
Class C | 9,917 | 4,335 | 2,080 | |||||||||
Class R | 26 | NA | NA | |||||||||
Class Y | 59,904 | 5,363 | 1,375 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 14,369 | 7,895 | 1,951 | |||||||||
Class B | 693 | 582 | 119 | |||||||||
Class C | 802 | 882 | 104 | |||||||||
Class R | 5 | NA | NA | |||||||||
Class Y | 11,342 | 1,623 | 59 | |||||||||
Value redeemed: | ||||||||||||
Class A | (66,195 | ) | (23,341 | ) | (21,241 | ) | ||||||
Class B | (2,682 | ) | (1,509 | ) | (1,660 | ) | ||||||
Class C | (3,986 | ) | (2,691 | ) | (1,501 | ) | ||||||
Class R | (–– | )* | NA | NA | ||||||||
Class Y | (49,828 | ) | (10,060 | ) | (14,417 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 134,609 | $ | 35,884 | $ | (4,333 | ) | |||||
*Not shown due to rounding. |
Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.
When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current market value of the option written. The current market value of an option is the last sales price on the principal exchange on which the option is traded or, in the absence of transactions, the mean between the bid and asked prices or at a value supplied by a broker-dealer. When an option expires on its stipulated expiration date or a Fund enters into a closing purchase transaction, the Fund realizes a gain (or loss if the cost of a closing purchase transaction exceeds the premium received when the call option was sold) and the liability related to such option is extinguished. When a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the Fund has realized a gain or loss. For each Fund, when a written put is exercised, the cost basis of the sec urities purchased by the Fund is reduced by the amount of the premium received.
For Ivy Pacific Opportunities Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | –– | $ | –– | ||||||
Options written | 321,429 | 1,476,002 | |||||||
Options terminated in closing purchase transactions | (–– | ) | (–– | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (–– | ) | (–– | ) | |||||
Outstanding at September 30, 2007 | 321,429 | $ | 1,476,002 | ||||||
For Ivy Pacific Opportunities Fund, transactions in written put options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | –– | $ | –– | ||||||
Options written | 321,429 | 540,001 | |||||||
Options terminated in closing purchase transactions | (–– | ) | (–– | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (–– | ) | (–– | ) | |||||
Outstanding at September 30, 2007 | 321,429 | $ | 540,001 | ||||||
For Ivy Value Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | 977 | $ | 51,169 | ||||||
Options written | 2,010 | 153,630 | |||||||
Options terminated in closing purchase transactions | (110 | ) | (4,020 | ) | |||||
Options exercised | (937 | ) | (69,463 | ) | |||||
Options expired | ( 1,627 | ) | (107,417 | ) | |||||
Outstanding at September 30, 2007 | 313 | $ | 23,899 | ||||||
For Ivy Value Fund, transactions in written put options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | 214 | $ | 34,127 | ||||||
Options written | 1,873 | 252,568 | |||||||
Options terminated in closing purchase transactions | (832 | ) | (171,790 | ) | |||||
Options exercised | (466 | ) | (49,870 | ) | |||||
Options expired | (427 | ) | (38,007 | ) | |||||
Outstanding at September 30, 2007 | 362 | $ | 27,028 | ||||||
The Trust may engage in buying and selling futures contracts. Upon entering into a futures contract, the Trust is required to deposit, in a segregated account, an amount of cash or United States Treasury Bills equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Trust each day, dependent on the daily fluctuations in the value of the underlying debt security or index. These changes in the variation margins are recorded by the Trust as unrealized gains or losses. Upon the closing of the contracts, the cumulative net change in the variation margin is recorded as realized gain or loss. The Trust uses futures to attempt to reduce the overall risk of its investments.
NOTE 8 - Affiliated Company TransactionsThe Ivy Managed Funds make investments in funds within the Ivy Funds family, which funds may be deemed to be under common control because the Funds share the same board of trustees. A summary of the transactions in each underlying fund during the six months ended September 30, 2007 follows:
3/31/07 Share Balance | Purchase Cost | Sales Cost | Realized Gain/ (Loss) | Distributions Received (1) | 9/30/07 Share Balance | 9/30/07 Market Value | |
---|---|---|---|---|---|---|---|
Ivy Managed European/Pacific Fund | |||||||
Ivy European Opportunities Fund, Class I | –– | $18,099,337 | $45,766 | $(2,982) | $ –– | 420,342 | $18,532,888 |
Ivy Pacific Opportunities Fund, Class I | –– | 12,066,225 | 28,995 | (472) | –– | 614,432 | 14,389,999 |
Ivy Managed International Opportunities Fund | |||||||
Ivy European Opportunities Fund, Class I | –– | 8,324,452 | –– | –– | –– | 193,551 | 8,533,662 |
Ivy International Balanced Fund, Class I | –– | 22,398,517 | –– | –– | 199,927 | 1,289,772 | 22,790,277 |
Ivy International Core Equity Fund, Class I | –– | 11,099,270 | –– | –– | –– | 588,778 | 11,869,753 |
Ivy International Growth Fund, Class I | –– | 8,324,452 | –– | –– | –– | 224,773 | 9,078,596 |
Ivy Pacific Opportunities Fund, Class I | –– | 5,549,635 | –– | –– | –– | 283,617 | 6,642,308 |
(1)Distributions received includes distributions from net investment income and/or from capital gains from the underlying funds. |
Renewal of Investment Management Agreements for the Ivy Funds
At a Meeting of the Board of Trustees of Ivy Funds (the "Trust") held on August 28 and 29, 2007, the Trustees, including all of the Trustees who are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the existing management agreements between Ivy Investment Management Company ("IICO") and the Trust. The existing management agreements considered were (i) the Master Business Management and Investment Advisory Agreement between the Trust and IICO (with respect to the Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy International Core Equity Fund and the Ivy Pacific Opportunities Fund); (ii) the Investment Management Agreement between the Trust and IICO (with respect to the Ivy Dividend Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund); (iii) the Investment Management Agreement between the Trust and IICO (with respect to the Ivy Bala nced Fund, Ivy Bond Fund, Ivy International Balanced Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund, Ivy Value Fund and the Ivy Global Natural Resources Fund); and (iv) the Subadvisory Agreements between IICO and:
- Henderson Investment Management Limited and Henderson Global Investors (North America) Inc. (Ivy European Opportunities Fund)
- Advantus Capital Management, Inc. (Ivy Bond Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund)
- Templeton Investment Counsel, LLC (Ivy International Balanced Fund)
- BlackRock Capital Management, Inc. (Ivy Small Cap Value Fund)
- Mackenzie Financial Corporation (Ivy Cundill Global Value Fund and Ivy Global Natural Resources Fund).
(each such subadviser referred to herein as a "Subadviser").
The Board's Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO, profitability (including any fall-out benefits) from the relationships with the Funds, economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees' counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO. The Board a lso received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees discussed this material extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board's determination to approve the agreements are discussed separately below.
Nature, Extent and Quality of ServicesThe Board considered the fact that they were provided with performance and expense information for each of the Funds during the year in regularly scheduled Board meetings, during which they met with the Funds' portfolio managers and other investment personnel. In that regard, they discussed the nature, extent and quality of services provided to each Fund by IICO and each Subadviser, taking into account the investment objective and strategy of the Fund and the knowledge the Board gained from those regular meetings, including from the materials provided in connection with those meetings. In addition, the Board reviewed the resources and key personnel of IICO and each Subadviser. The Board also considered other services provided to the Funds by IICO and each Subadviser, such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to the Funds' investment restrictions, producing reports, providing support services for the Boa rd and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.
Benefits from the Relationship with the FundsThe Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of the investment advisory contract with IICO or the investment sub-advisory agreements.
Economies of ScaleThe Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. With respect to the Global Natural Resources Fund, the Board requested that management examine the continuing appropriateness of that Fund's breakpoint schedule. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. Except as noted, the Board concluded that the current asset size of the Funds and other relevant factors did not warrant further reevaluation or restructuring of the fee breakpoints for the Funds at this time.
Performance of the Funds and Costs of Services ProvidedThe Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on the Ivy Real Estate Securities Fund, Ivy Cundill Global Value Fund, Ivy Small Cap Value Fund and Ivy Pacific Opportunities Fund.
Specifically, the Board examined the investment performance of each Fund, including quintile ranking for short- and long-term time periods and each Fund's performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds' performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO or the applicable subadviser had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.
The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Sub-Adviser. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for those Funds. The Board also took into account the information on IICO's profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund's average account size and how those factors affect the Funds' expense ratios. After completing this e xamination, the Independent Directors concluded that the Fund's expenses are appropriate at the current time.
The Board of Directors/Trustees for each of the mutual funds has appointed an independent fee consultant. Posted below is a summary of the written fee evaluation of such consultant for the most recent year.
During August of 2007, and as part of their regularly scheduled meetings, the Boards of Trustees of Ivy Funds and the Board of Directors of Ivy Funds, Inc. (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Trustees/Directors of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO, an affiliate of Waddell, to the Ivy Funds. The independent fee consultant's review addressed the following fee-related factors:
1. The nature and quality of IICO's services to the Ivy Funds, including performance
2. Management fees (including any components thereof) charged by other mutual fund companies for like services
3. Management fees (including any components thereof) charged to institutional and other clients of IICO for like services
4. Costs to IICO and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit
5. Profit margins of IICO and its affiliates from supplying such services
6. Possible economies of scale as a fund grows larger
The following summarizes the findings of the independent fee consultant retained by the Trustees/Directors. 1
1The independent fee consultant's evaluation was based on information provided by IICO, Lipper, Inc., other information providers and other independent analyses. The term "management fees" refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. The term "total expenses" refers to the total annual expenses, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending February 28, 2007. In other areas, data is from various periods ending between December 31, 2006 and July 31, 2007.
The independent fee consultant believes that IICO delivers strong levels of performance and service to the Ivy Funds in relation to IICO management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended April 30, 2007, when compared to their respective peer groups established by Lipper, Inc. ("Lipper") approximately: (a) 21% of the Ivy Funds were in the top 10 percentiles; (b) 33% of the Ivy Funds were in the top quartile of performance; and (c) 62% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appears to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastructure.
For the 12 months ended March 31, 2007, the total expenses of the Ivy Funds on average were 7% above the mean total expenses of their respective Lipper Expense Group peers and 1% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 9% above the mean management fees for their Lipper Expense Groups and 10% above the means for their Lipper Expense Universes. Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that can work against Ivy Funds in Lipper expense comparisons. As a result, the Lipper findings can be considered conservative. Within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.
The independent fee consultant believes that the management fees IICO charges to the Ivy Funds also are reasonable in relation to the management fees it charges to its other institutional accounts. These institutional accounts have different service and infrastructure needs. Moreover, based on industry data, the average spread between management fees charged to the Ivy Funds and those charged to institutional accounts is below the average fee spreads observed at other investment advisers.
The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds does not appear to be unreasonable. Waddell's overall profitability from managing the Ivy Funds and its other operations is below the mean profitability of other publicly traded peers, but appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.
Analyses was undertaken by the independent fee consultant to measure economies of scale in the industry in a manner that would give an overall "net" view of any economies or diseconomies of scale across all cost elements. This analysis, however, was unable to quantitatively assess or confirm overall economies of scale in the IICO complex. A separate economy of pricing analysis, also undertaken by the independent fee consultant, did show that Ivy Funds incur lower fees and expenses with increasing fund AUM and with increasing average account size which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.
ConclusionsThe independent fee consultant concluded that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds over the year ending August 31, 2007 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.
Proxy Voting Information
Proxy Voting Guidelines
A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800.777.6472 and (ii) on the Securities and Exchange Commission's (SEC) website at www.sec.gov.
Proxy Voting RecordsInformation regarding how Ivy Funds voted proxies relating to portfolio securities during the most recent 12 month period ending June 30 is available on Form N-PX through the Ivy Funds' website at www.ivyfunds.com and on the SEC's website at www.sec.gov.
Quarterly Portfolio Schedule Information
A complete schedule of portfolio holdings for the first and third quarters of each fiscal year is filed with the Securities and Exchange Commission (SEC) on the Fund's Form N-Q. This form may be obtained in the following ways:
- On the SEC's website at www.sec.gov.
- For review and copy at the SEC's Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
- On the Ivy Funds' website at www.ivyfunds.com.
To All Traditional IRA Planholders:
As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed representative or by submitting Internal Revenue Service Form W-4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.
THE IVY FUNDS FAMILY
Global/International Funds
Cundill Global Value Fund
European Opportunities Fund
International Balanced Fund
International Core Equity Fund
International Growth Fund
Managed European/Pacific Fund
Managed International Opportunities Fund
Pacific Opportunities Fund
Domestic Equity Funds
Capital Appreciation Fund
Core Equity Fund
Dividend Income Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund
Value Fund
Fixed Income Funds
Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Municipal Bond Fund
Money Market Funds
Money Market Fund
Specialty Funds
Asset Strategy Fund
Balanced Fund
Energy Fund
Global Natural Resources Fund
Real Estate Securities Fund
Science and Technology Fund
1.800.777.6472
Visit us online at www.ivyfunds.com
The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus carefully before investing.
WRR3300SA (9-07)
ITEM 2. CODE OF ETHICS
Required in annual report only.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Required in annual report only.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Required in annual report only.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Item 1 Shareholder Report.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. |
(b) | There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. EXHIBITS.
(a)(1) Required in annual report only.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
Attached hereto as Exhibit 99.CERT.
(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)).
Attached hereto as Exhibit 99.906CERT.
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Ivy Funds |
(Registrant) |
By /s/Kristen A. Richards |
Kristen A. Richards, Vice President and Assistant Secretary |
Date: December 7, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
By /s/Henry J. Herrmann |
Henry J. Herrmann, President and Principal Executive Officer |
Date: December 7, 2007 |
By /s/Joseph W. Kauten |
Joseph W. Kauten, Vice President and Principal Financial Officer |
Date: December 7, 2007 |