UNITED STATES
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-01028
Ivy Funds
6300 Lamar Avenue, Overland Park, Kansas 66202
Kristen A. Richards
Registrant's telephone number, including area code: 913-236-2000
Date of fiscal year end: March 31
Date of reporting period: September 30, 2008
ITEM 1. REPORTS TO STOCKHOLDERS. |
Semiannual Report
September 30, 2008
Domestic Equity Funds
Ivy Dividend Opportunities Fund
Ivy Small Cap Value Fund
Ivy Value Fund
Global and International Funds
Ivy Managed European/Pacific Fund
Ivy Managed International Opportunities Fund
Ivy Cundill Global Value Fund
Ivy European Opportunities Fund
Ivy International Balanced Fund
Ivy International Core Equity Fund
Ivy International Growth Fund
Ivy Pacific Opportunities Fund
Specialty Funds
Ivy Balanced Fund
Ivy Global Natural Resources Fund
Ivy Real Estate Securities Fund
Fixed-Income Funds
Ivy Bond Fund
Ivy Global Bond Fund
Ivy Mortgage Securities Fund
3 | President's Letter | |
5 | Illustration of Fund Expenses | |
15 | Ivy Dividend Opportunities Fund | |
30 | Ivy Small Cap Value Fund | |
45 | Ivy Value Fund | |
60 | Ivy Managed European/Pacific Fund | |
71 | Ivy Managed International Opportunities Fund | |
82 | Ivy Cundill Global Value Fund | |
97 | Ivy European Opportunities Fund | |
112 | Ivy International Balanced Fund | |
131 | Ivy International Core Equity Fund | |
147 | Ivy International Growth Fund | |
163 | Ivy Pacific Opportunities Fund | |
181 | Ivy Balanced Fund | |
197 | Ivy Global Natural Resources Fund | |
219 | Ivy Real Estate Securities Fund | |
233 | Ivy Bond Fund | |
259 | Ivy Global Bond Fund | |
277 | Ivy Mortgage Securities Fund | |
301 | Notes to Financial Statements | |
350 | Renewal of Investment Management Agreement | |
354 | Proxy Voting Information | |
354 | Quarterly Portfolio Schedule Information | |
354 | 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, 2008
Dear Shareholder:
Not since the founding of our organization more than 70 years ago have investors faced so many challenges in such a short period of time. In a single calendar quarter, this country's largest savings and loan, its largest insurance company, its two largest mortgage providers, its largest brokerage firm and a leading commercial bank were the subject of a takeover, bailout or failure. On top of that, some money market funds in the industry have been unable to maintain a $1 a share net asset value. A severe credit crunch has taken hold.
Confidence has been shaken in bond and stock markets around the globe, and mutual fund returns of the past year reflect the emotional insecurity that comes with hard times. Enclosed is our report on your Ivy Funds' operations for the first six months of the current fiscal year. For the six months ended Sept. 30, 2008, the S&P 500 Index fell 11.3 percent, with most of the drop occurring in September. September was also the worst month for U.S. corporate bonds in more than two decades.
Can we learn from history?
While unusual in modern times, a rapidly unfolding financial panic is nothing new in American history. In fact, prior to the creation of the Federal Reserve bank system in 1912, the U.S. experienced seven major financial crises between 1819 and 1907. In some respects, some of the same issues that plague us today - fallout from excessive commodity and property speculation, war-related debt and populist dislike of government bailouts - parallel the challenges that generations past have had to deal with. Our leaders met these problems successfully, though very often not promptly.
For example, history judged President Martin Van Buren harshly for failing to take timely steps to limit economic damage from the Panic of 1837, which occurred just five weeks after he took office. The ensuing depression lasted for six years, and out of 850 banks in the United States at the time, 343 closed entirely and 62 failed partially. We hope Washington can learn from the many lessons of history and take appropriate and rapid action to revive credit markets and restore investor faith.
A need for global leadership
We believe that today's U.S. government safety nets and financial safeguards - including the Fed, deposit insurance on bank accounts, unemployment insurance, municipal bond default insurance and social security - are likely to help cushion the effects of the economic downturn that our country appears to face in the coming months. However, the scope of the current financial crisis is global, and this is a new phenomenon. It is one that we think may require coordinated central bank and fiscal policy action from Brussels to Beijing to resolve. It will likely test whether we are becoming one world that can act together for the common good, or one where national trade supremacy, resource hoarding and/or parochial political interests take precedence.
Economic Snapshot | ||||||
---|---|---|---|---|---|---|
9-30-2008 | 3-31-2008 | |||||
U.S. unemployment rate | 6.10 | % | 5.10 | % | ||
Inflation (U.S. Consumer Price Index) | 4.90 | % | 4.00 | % | ||
U.S. GDP | - -0.30 | % | 0.60 | % | ||
30-year fixed mortgage rate | 5.82 | % | 5.63 | % | ||
Oil price per barrel | $ | 100.64 | $ | 101.58 |
Sources: Bloomberg, U.S. Department of Labor
All government statistics shown are subject to periodic revisions.
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.
For many people it is more difficult to buy a home or expand a consumer-focused business than it was just a year ago. As shown in the Economic Snapshot table to the left, the U.S. economy at Sept.30, 2008 is not in as good a shape as it was six months earlier. The unemployment rate is higher. The economy has contracted.
We believe that the investing and economic climate will get better in time, although not right away. With perseverance, initiative and ingenuity, we believe the strengths of our nation's character will surface and prosperity will be restored. In this uncertain environment, we believe a very strong effort to manage risk is paramount. With that approach in mind, 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, 2008.
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 five percent 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 five percent hypothetical example with the five percent 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 he lp 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 Dividend Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 888.00 | 1.38 | % | $ | 6.51 | ||||
Class B | 1,000 | 883.20 | 2.37 | 11.21 | ||||||||
Class C | 1,000 | 884.60 | 2.15 | 10.18 | ||||||||
Class E | 1,000 | 886.00 | 1.82 | 8.58 | ||||||||
Class I | 1,000 | 889.70 | 1.00 | 4.72 | ||||||||
Class Y | 1,000 | 888.50 | 1.26 | 5.95 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.17 | 1.38 | % | $ | 6.96 | ||||
Class B | 1,000 | 1,013.17 | 2.37 | 11.98 | ||||||||
Class C | 1,000 | 1,014.27 | 2.15 | 10.88 | ||||||||
Class E | 1,000 | 1,015.97 | 1.82 | 9.17 | ||||||||
Class I | 1,000 | 1,020.07 | 1.00 | 5.05 | ||||||||
Class Y | 1,000 | 1,018.77 | 1.26 | 6.36 |
Ivy Small Cap Value Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 991.50 | 1.89 | % | $ | 9.46 | ||||
Class B | 1,000 | 986.20 | 2.95 | 14.70 | ||||||||
Class C | 1,000 | 987.20 | 2.69 | 13.41 | ||||||||
Class E** | 1,000 | 993.80 | 1.32 | 6.58 | ||||||||
Class I | 1,000 | 995.50 | 1.18 | 5.89 | ||||||||
Class Y | 1,000 | 993.90 | 1.42 | 7.08 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,015.57 | 1.89 | % | $ | 9.57 | ||||
Class B | 1,000 | 1,010.27 | 2.95 | 14.88 | ||||||||
Class C | 1,000 | 1,011.57 | 2.69 | 13.58 | ||||||||
Class E** | 1,000 | 1,018.47 | 1.32 | 6.66 | ||||||||
Class I | 1,000 | 1,019.17 | 1.18 | 5.96 | ||||||||
Class Y | 1,000 | 1,017.97 | 1.42 | 7.16 |
Ivy Value Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 891.90 | 1.70 | % | $ | 8.04 | ||||
Class B | 1,000 | 886.40 | 2.87 | 13.58 | ||||||||
Class C | 1,000 | 886.90 | 2.71 | 12.83 | ||||||||
Class E** | 1,000 | 893.90 | 1.22 | 5.78 | ||||||||
Class I | 1,000 | 893.80 | 1.10 | 5.21 | ||||||||
Class Y | 1,000 | 893.30 | 1.36 | 6.44 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.57 | 1.70 | % | $ | 8.57 | ||||
Class B | 1,000 | 1,010.67 | 2.87 | 14.48 | ||||||||
Class C | 1,000 | 1,011.47 | 2.71 | 13.68 | ||||||||
Class E** | 1,000 | 1,018.97 | 1.22 | 6.16 | ||||||||
Class I | 1,000 | 1,019.57 | 1.10 | 5.55 | ||||||||
Class Y | 1,000 | 1,018.27 | 1.36 | 6.86 |
Ivy Managed European/Pacific Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 729.90 | 0.66 | % | $ | 2.85 | ||||
Class B | 1,000 | 724.90 | 1.60 | 6.90 | ||||||||
Class C | 1,000 | 725.20 | 1.44 | 6.21 | ||||||||
Class E** | 1,000 | 730.99 | 0.50 | 2.16 | ||||||||
Class I | 1,000 | 732.20 | 0.26 | 1.13 | ||||||||
Class Y | 1,000 | 730.90 | 0.68 | 2.94 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,021.77 | 0.66 | % | $ | 3.34 | ||||
Class B | 1,000 | 1,017.07 | 1.60 | 8.07 | ||||||||
Class C | 1,000 | 1,017.87 | 1.44 | 7.26 | ||||||||
Class E** | 1,000 | 1,022.57 | 0.50 | 2.53 | ||||||||
Class I | 1,000 | 1,023.77 | 0.26 | 1.32 | ||||||||
Class Y | 1,000 | 1,021.67 | 0.68 | 3.44 |
Ivy Managed International Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 790.30 | 0.54 | % | $ | 2.42 | ||||
Class B | 1,000 | 785.90 | 1.36 | 6.07 | ||||||||
Class C | 1,000 | 785.90 | 1.34 | 5.98 | ||||||||
Class E** | 1,000 | 791.30 | 0.44 | 1.97 | ||||||||
Class I | 1,000 | 792.40 | 0.18 | 0.81 | ||||||||
Class Y | 1,000 | 790.30 | 0.54 | 2.42 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,022.37 | 0.54 | % | $ | 2.73 | ||||
Class B | 1,000 | 1,018.27 | 1.36 | 6.86 | ||||||||
Class C | 1,000 | 1,018.37 | 1.34 | 6.76 | ||||||||
Class E** | 1,000 | 1,022.87 | 0.44 | 2.23 | ||||||||
Class I | 1,000 | 1,024.17 | 0.18 | 0.91 | ||||||||
Class Y | 1,000 | 1,022.37 | 0.54 | 2.73 |
Ivy Cundill Global Value Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 892.10 | 1.76 | % | $ | 8.33 | ||||
Class B | 1,000 | 887.20 | 2.63 | 12.46 | ||||||||
Class C | 1,000 | 888.30 | 2.43 | 11.52 | ||||||||
Class E | 1,000 | 890.20 | 2.19 | 10.40 | ||||||||
Class I | 1,000 | 894.00 | 1.26 | 5.97 | ||||||||
Class Y | 1,000 | 894.80 | 1.20 | 5.68 | ||||||||
Advisor Class** | 1,000 | 894.70 | 1.12 | 5.31 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.27 | 1.76 | % | $ | 8.87 | ||||
Class B | 1,000 | 1,011.87 | 2.63 | 13.28 | ||||||||
Class C | 1,000 | 1,012.87 | 2.43 | 12.28 | ||||||||
Class E | 1,000 | 1,014.07 | 2.19 | 11.08 | ||||||||
Class I | 1,000 | 1,018.77 | 1.26 | 6.36 | ||||||||
Class Y | 1,000 | 1,019.07 | 1.20 | 6.06 | ||||||||
Advisor Class** | 1,000 | 1,019.47 | 1.12 | 5.65 |
Ivy European Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 740.00 | 1.70 | % | $ | 7.40 | ||||
Class B | 1,000 | 736.70 | 2.59 | 11.29 | ||||||||
Class C | 1,000 | 737.50 | 2.37 | 10.34 | ||||||||
Class E** | 1,000 | 741.70 | 1.32 | 5.75 | ||||||||
Class I | 1,000 | 742.00 | 1.18 | 5.14 | ||||||||
Class Y | 1,000 | 741.00 | 1.46 | 6.35 | ||||||||
Advisor Class** | 1,000 | 741.90 | 1.24 | 5.40 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.57 | 1.70 | % | $ | 8.57 | ||||
Class B | 1,000 | 1,012.07 | 2.59 | 13.08 | ||||||||
Class C | 1,000 | 1,013.17 | 2.37 | 11.98 | ||||||||
Class E** | 1,000 | 1,018.47 | 1.32 | 6.66 | ||||||||
Class I | 1,000 | 1,019.17 | 1.18 | 5.96 | ||||||||
Class Y | 1,000 | 1,017.77 | 1.46 | 7.36 | ||||||||
Advisor Class** | 1,000 | 1,018.87 | 1.24 | 6.26 |
Ivy International Balanced Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 839.40 | 1.38 | % | $ | 6.35 | ||||
Class B | 1,000 | 835.80 | 2.33 | 10.74 | ||||||||
Class C | 1,000 | 835.80 | 2.09 | 9.64 | ||||||||
Class E | 1,000 | 837.50 | 1.87 | 8.64 | ||||||||
Class I | 1,000 | 841.20 | 0.98 | 4.51 | ||||||||
Class Y | 1,000 | 839.30 | 1.30 | 5.98 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.17 | 1.38 | % | $ | 6.96 | ||||
Class B | 1,000 | 1,013.37 | 2.33 | 11.78 | ||||||||
Class C | 1,000 | 1,014.57 | 2.09 | 10.58 | ||||||||
Class E | 1,000 | 1,015.67 | 1.87 | 9.47 | ||||||||
Class I | 1,000 | 1,020.17 | 0.98 | 4.95 | ||||||||
Class Y | 1,000 | 1,018.57 | 1.30 | 6.56 |
Ivy International Core Equity Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 777.30 | 1.56 | % | $ | 6.93 | ||||
Class B | 1,000 | 773.80 | 2.43 | 10.82 | ||||||||
Class C | 1,000 | 774.80 | 2.23 | 9.94 | ||||||||
Class E | 1,000 | 775.40 | 2.11 | 9.41 | ||||||||
Class I | 1,000 | 779.10 | 1.12 | 4.98 | ||||||||
Class Y | 1,000 | 778.30 | 1.36 | 6.05 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.27 | 1.56 | % | $ | 7.87 | ||||
Class B | 1,000 | 1,012.87 | 2.43 | 12.28 | ||||||||
Class C | 1,000 | 1,013.87 | 2.23 | 11.28 | ||||||||
Class E | 1,000 | 1,014.47 | 2.11 | 10.68 | ||||||||
Class I | 1,000 | 1,019.47 | 1.12 | 5.65 | ||||||||
Class Y | 1,000 | 1,018.27 | 1.36 | 6.86 |
Ivy International Growth Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 772.50 | 1.52 | % | $ | 6.74 | ||||
Class B | 1,000 | 768.10 | 2.55 | 11.32 | ||||||||
Class C | 1,000 | 768.60 | 2.47 | 10.97 | ||||||||
Class E** | 1,000 | 773.10 | 1.34 | 5.94 | ||||||||
Class I | 1,000 | 773.60 | 1.20 | 5.32 | ||||||||
Class Y | 1,000 | 772.50 | 1.50 | 6.65 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.47 | 1.52 | % | $ | 7.67 | ||||
Class B | 1,000 | 1,012.27 | 2.55 | 12.88 | ||||||||
Class C | 1,000 | 1,012.67 | 2.47 | 12.48 | ||||||||
Class E** | 1,000 | 1,018.37 | 1.34 | 6.76 | ||||||||
Class I | 1,000 | 1,019.07 | 1.20 | 6.06 | ||||||||
Class Y | 1,000 | 1,017.57 | 1.50 | 7.57 |
Ivy Pacific Opportunities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 716.10 | 1.82 | % | $ | 7.81 | ||||
Class B | 1,000 | 712.70 | 2.89 | 12.42 | ||||||||
Class C | 1,000 | 713.60 | 2.57 | 11.05 | ||||||||
Class E** | 1,000 | 717.90 | 1.42 | 6.10 | ||||||||
Class I | 1,000 | 718.10 | 1.30 | 5.58 | ||||||||
Class Y | 1,000 | 717.20 | 1.56 | 6.70 | ||||||||
Advisor Class** | 1,000 | 718.40 | 1.20 | 5.16 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,015.97 | 1.82 | % | $ | 9.17 | ||||
Class B | 1,000 | 1,010.57 | 2.89 | 14.58 | ||||||||
Class C | 1,000 | 1,012.17 | 2.57 | 12.98 | ||||||||
Class E** | 1,000 | 1,017.97 | 1.42 | 7.16 | ||||||||
Class I | 1,000 | 1,018.57 | 1.30 | 6.56 | ||||||||
Class Y | 1,000 | 1,017.27 | 1.56 | 7.87 | ||||||||
Advisor Class** | 1,000 | 1,019.07 | 1.20 | 6.06 |
Ivy Balanced Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 937.80 | 1.40 | % | $ | 6.78 | ||||
Class B | 1,000 | 932.80 | 2.33 | 11.31 | ||||||||
Class C | 1,000 | 934.60 | 2.11 | 10.25 | ||||||||
Class E** | 1,000 | 939.00 | 1.16 | 5.62 | ||||||||
Class I | 1,000 | 939.60 | 1.02 | 4.95 | ||||||||
Class Y | 1,000 | 938.20 | 1.28 | 6.20 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.07 | 1.40 | % | $ | 7.06 | ||||
Class B | 1,000 | 1,013.37 | 2.33 | 11.78 | ||||||||
Class C | 1,000 | 1,014.47 | 2.11 | 10.68 | ||||||||
Class E** | 1,000 | 1,019.27 | 1.16 | 5.86 | ||||||||
Class I | 1,000 | 1,019.97 | 1.02 | 5.15 | ||||||||
Class Y | 1,000 | 1,018.67 | 1.28 | 6.46 |
Ivy Global Natural Resources Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 698.30 | 1.32 | % | $ | 5.60 | ||||
Class B | 1,000 | 695.60 | 2.09 | 8.90 | ||||||||
Class C | 1,000 | 695.90 | 2.03 | 8.65 | ||||||||
Class E | 1,000 | 696.50 | 1.87 | 7.97 | ||||||||
Class I | 1,000 | 699.50 | 1.00 | 4.25 | ||||||||
Class R | 1,000 | 697.50 | 1.54 | 6.54 | ||||||||
Class Y | 1,000 | 698.80 | 1.20 | 5.10 | ||||||||
Advisor Class** | 1,000 | 699.70 | 0.94 | 3.99 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.47 | 1.32 | % | $ | 6.66 | ||||
Class B | 1,000 | 1,014.57 | 2.09 | 10.58 | ||||||||
Class C | 1,000 | 1,014.87 | 2.03 | 10.28 | ||||||||
Class E | 1,000 | 1,015.67 | 1.87 | 9.47 | ||||||||
Class I | 1,000 | 1,020.07 | 1.00 | 5.05 | ||||||||
Class R | 1,000 | 1,017.37 | 1.54 | 7.77 | ||||||||
Class Y | 1,000 | 1,019.07 | 1.20 | 6.06 | ||||||||
Advisor Class** | 1,000 | 1,020.37 | 0.94 | 4.75 |
Ivy Real Estate Securities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 999.10 | 1.78 | % | $ | 8.90 | ||||
Class B | 1,000 | 993.80 | 2.89 | 14.46 | ||||||||
Class C | 1,000 | 995.30 | 2.61 | 13.07 | ||||||||
Class E | 1,000 | 996.10 | 2.39 | 11.98 | ||||||||
Class I | 1,000 | 1,002.80 | 1.16 | 5.81 | ||||||||
Class R | 1,000 | 1,000.00 | 1.70 | 8.50 | ||||||||
Class Y | 1,000 | 1,001.50 | 1.38 | 6.91 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,016.17 | 1.78 | % | $ | 8.97 | ||||
Class B | 1,000 | 1,010.57 | 2.89 | 14.58 | ||||||||
Class C | 1,000 | 1,011.97 | 2.61 | 13.18 | ||||||||
Class E | 1,000 | 1,013.07 | 2.39 | 12.08 | ||||||||
Class I | 1,000 | 1,019.27 | 1.16 | 5.86 | ||||||||
Class R | 1,000 | 1,016.57 | 1.70 | 8.57 | ||||||||
Class Y | 1,000 | 1,018.17 | 1.38 | 6.96 |
Ivy Bond Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 961.40 | 1.24 | % | $ | 6.08 | ||||
Class B | 1,000 | 955.90 | 2.39 | 11.74 | ||||||||
Class C | 1,000 | 957.20 | 2.11 | 10.37 | ||||||||
Class E | 1,000 | 959.70 | 1.58 | 7.74 | ||||||||
Class I | 1,000 | 963.10 | 0.90 | 4.42 | ||||||||
Class Y | 1,000 | 960.90 | 1.36 | 6.67 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.87 | 1.24 | % | $ | 6.26 | ||||
Class B | 1,000 | 1,013.07 | 2.39 | 12.08 | ||||||||
Class C | 1,000 | 1,014.47 | 2.11 | 10.68 | ||||||||
Class E | 1,000 | 1,017.17 | 1.58 | 7.97 | ||||||||
Class I | 1,000 | 1,020.57 | 0.90 | 4.55 | ||||||||
Class Y | 1,000 | 1,018.27 | 1.36 | 6.86 |
Ivy Global Bond Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 4-04-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 976.00 | 1.01 | % | $ | 4.94 | ||||
Class B | 1,000 | 973.00 | 1.74 | 8.48 | ||||||||
Class C | 1,000 | 973.00 | 1.72 | 8.39 | ||||||||
Class I | 1,000 | 978.00 | 0.79 | 3.86 | ||||||||
Class Y | 1,000 | 977.00 | 1.01 | 4.94 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,019.99 | 1.01 | % | $ | 5.15 | ||||
Class B | 1,000 | 1,016.33 | 1.74 | 8.77 | ||||||||
Class C | 1,000 | 1,016.43 | 1.72 | 8.67 | ||||||||
Class I | 1,000 | 1,021.10 | 0.79 | 4.04 | �� | |||||||
Class Y | 1,000 | 1,019.99 | 1.01 | 5.15 |
Ivy Mortgage Securities Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2008 | Beginning Account Value 3-31-08 | Ending Account Value 9-30-08 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return(1) | ||||||||||||
Class A | $ | 1,000 | $ | 958.80 | 1.28 | % | $ | 6.27 | ||||
Class B | 1,000 | 954.00 | 2.25 | 11.04 | ||||||||
Class C | 1,000 | 955.10 | 2.01 | 9.87 | ||||||||
Class E | 1,000 | 957.10 | 1.62 | 7.93 | ||||||||
Class I | 1,000 | 961.20 | 0.80 | 3.92 | ||||||||
Class Y | 1,000 | 960.00 | 1.02 | 5.00 | ||||||||
Based on 5% Return(2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.67 | 1.28 | % | $ | 6.46 | ||||
Class B | 1,000 | 1,013.77 | 2.25 | 11.38 | ||||||||
Class C | 1,000 | 1,014.97 | 2.01 | 10.18 | ||||||||
Class E | 1,000 | 1,016.97 | 1.62 | 8.17 | ||||||||
Class I | 1,000 | 1,021.07 | 0.80 | 4.04 | ||||||||
Class Y | 1,000 | 1,019.97 | 1.02 | 5.15 |
*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, 2008, and divided by 365.
**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 last column.
(2)This section uses a hypothetical five percent 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 DIVIDEND OPPORTUNITIES FUND
Portfolio Highlights
On September 30, 2008, Ivy Dividend Opportunities Fund had net assets totaling $221,800
(in thousands) invested in a diversified portfolio of:
83.85% | Domestic Common Stocks | |
11.35% | Cash and Cash Equivalents | |
4.80% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Energy Stocks | $ | 18.25 | |||
Financials Stocks | $ | 17.30 | |||
Consumer Staples Stocks | $ | 17.16 | |||
Industrials Stocks | $ | 13.23 | |||
Cash and Cash Equivalents | $ | 11.35 | |||
Information Technology Stocks | $ | 6.68 | |||
Health Care Stocks | $ | 5.75 | |||
Material Stocks | $ | 4.12 | |||
Consumer Discretionary Stocks | $ | 3.51 | |||
Miscellaneous Stocks(1) | $ | 2.65 |
(1)Includes $0.50 Telecommunication Services Stocks and $2.15 Utilities Stocks.
The Investments of Ivy Dividend Opportunities Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2008 | ||||||||
(In Thousands) (Unaudited) | ||||||||
COMMON STOCKS | | Shares | Value | |||||
Aerospace & Defense - 1.99% | ||||||||
Raytheon Company | 83 | $ | 4,417 | |||||
Asset Management & Custody Banks - 1.09% | ||||||||
AllianceBernstein Holding L.P. | 65 | 2,419 | ||||||
Communications Equipment - 2.43% | ||||||||
Consolidated Communications Holdings, Inc. | 140 | 2,114 | ||||||
Nokia Corporation, Series A, ADR | 61 | 1,147 | ||||||
QUALCOMM Incorporated | 49 | 2,117 | ||||||
5,378 | ||||||||
Computer Hardware - 1.00% | ||||||||
Hewlett-Packard Company | 48 | 2,222 | ||||||
Construction & Engineering - 3.13% | ||||||||
Chicago Bridge & Iron Company N.V., NY Shares | 72 | 1,387 | ||||||
Fluor Corporation | 99 | 5,565 | ||||||
6,952 | ||||||||
Construction & Farm Machinery & Heavy Trucks - 3.51% | ||||||||
Caterpillar Inc. | 45 | 2,667 | ||||||
Deere & Company | 103 | 5,111 | ||||||
7,778 | ||||||||
Consumer Finance - 1.14% | ||||||||
Capital One Financial Corporation | 50 | 2,527 | ||||||
Data Processing & Outsourced Services - 0.55% | ||||||||
Visa Inc., Class A | 20 | 1,227 | ||||||
Department Stores - 0.89% | ||||||||
Nordstrom, Inc. | 68 | 1,960 | ||||||
Distillers & Vintners - 1.58% | ||||||||
Diageo plc, ADR | 51 | 3,495 | ||||||
Diversified Banks - 2.90% | ||||||||
U.S. Bancorp | 88 | 3,173 | ||||||
Wells Fargo & Company | 87 | 3,267 | ||||||
�� | 6,440 | |||||||
Electrical Components & Equipment - 1.03% | ||||||||
Emerson Electric Co. | 56 | 2,282 | ||||||
Fertilizers & Agricultural Chemicals - 2.04% | ||||||||
Monsanto Company | 46 | 4,533 | ||||||
General Merchandise Stores - 0.48% | ||||||||
Target Corporation | 22 | 1,064 | ||||||
Health Care Equipment - 1.23% | ||||||||
Medtronic, Inc. | 54 | 2,726 | ||||||
Hotels, Resorts & Cruise Lines - 0.66% | ||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 52 | 1,467 | ||||||
Household Products - 5.30% | ||||||||
Colgate-Palmolive Company | 99 | 7,426 | ||||||
Procter & Gamble Company (The) | 62 | 4,331 | ||||||
11,757 | ||||||||
Independent Power Producers & Energy Traders - 1.07% | ||||||||
NRG Energy, Inc. (A) | 96 | 2,366 | ||||||
Industrial Gases - 1.26% | ||||||||
Air Products and Chemicals, Inc. | 41 | 2,784 | ||||||
Industrial REITs - 0.54% | ||||||||
ProLogis | 29 | 1,187 | ||||||
Integrated Oil & Gas - 3.79% | ||||||||
BP p.l.c., ADR | 26 | 1,325 | ||||||
Exxon Mobil Corporation | 91 | 7,086 | ||||||
8,411 | ||||||||
Integrated Telecommunication Services - 0.50% | ||||||||
Iowa Telecommunications Services, Inc. | 59 | 1,100 | ||||||
Life & Health Insurance - 1.45% | ||||||||
Aflac Incorporated | 55 | 3,225 | ||||||
Multi-Utilities - 1.08% | ||||||||
Dominion Resources, Inc. | 56 | 2,396 | ||||||
Office REITs - 1.03% | ||||||||
Douglas Emmett, Inc. | 100 | 2,295 | ||||||
Oil & Gas Drilling - 0.78% | ||||||||
Transocean Inc. | 16 | 1,715 | ||||||
Oil & Gas Equipment & Services - 8.11% | ||||||||
Halliburton Company | 71 | 2,298 | ||||||
National Oilwell Varco, Inc. (A) | 57 | 2,883 | ||||||
Schlumberger Limited | 86 | 6,743 | ||||||
Smith International, Inc. | 56 | 3,260 | ||||||
Weatherford International Ltd. (A) | 111 | 2,810 | ||||||
17,994 | ||||||||
Oil & Gas Exploration & Production - 3.21% | ||||||||
Apache Corporation | 40 | 4,207 | ||||||
XTO Energy Inc. | 63 | 2,910 | ||||||
7,117 | ||||||||
Oil & Gas Storage & Transportation - 2.36% | ||||||||
El Paso Pipeline Partners, L.P. | 116 | 1,865 | ||||||
Enbridge Inc. | 46 | 1,756 | ||||||
NuStar GP Holdings, LLC | 92 | 1,619 | ||||||
5,240 | ||||||||
Other Diversified Financial Services - 2.78% | ||||||||
J.P. Morgan Chase & Co. | 132 | 6,169 | ||||||
Packaged Foods & Meats - 1.39% | ||||||||
Wm. Wrigley Jr. Company | 39 | 3,085 | ||||||
Pharmaceuticals - 4.52% | ||||||||
Abbott Laboratories | 119 | 6,852 | ||||||
Merck & Co., Inc. | 101 | 3,186 | ||||||
10,038 | ||||||||
Property & Casualty Insurance - 1.99% | ||||||||
ACE Limited | 28 | 1,526 | ||||||
Allstate Corporation (The) | 25 | 1,151 | ||||||
Travelers Companies, Inc. (The) | 38 | 1,727 | ||||||
4,404 | ||||||||
Railroads - 3.57% | ||||||||
Burlington Northern Santa Fe Corporation | 29 | 2,671 | ||||||
Union Pacific Corporation | 74 | 5,241 | ||||||
7,912 | ||||||||
Restaurants - 1.48% | ||||||||
McDonald's Corporation | 53 | 3,286 | ||||||
Retail REITs - 1.21% | ||||||||
Simon Property Group, Inc. | 28 | 2,692 | ||||||
Semiconductors - 1.36% | ||||||||
Microchip Technology Incorporated | 103 | 3,026 | ||||||
Soft Drinks - 3.71% | ||||||||
Coca-Cola Company (The) | 74 | 3,889 | ||||||
PepsiCo, Inc. | 61 | 4,344 | ||||||
8,233 | ||||||||
Specialized Finance - 3.17% | ||||||||
CME Group Inc. | 14 | 5,578 | ||||||
IntercontinentalExchange, Inc. (A) | 18 | 1,448 | ||||||
7,026 | ||||||||
Steel - 0.82% | ||||||||
Nucor Corporation | 46 | 1,815 | ||||||
Systems Software - 1.34% | ||||||||
Microsoft Corporation | 112 | 2,975 | ||||||
Tobacco - 5.18% | ||||||||
Lorillard, Inc. | 78 | 5,575 | ||||||
Philip Morris International Inc. | 123 | 5,911 | ||||||
11,486 | ||||||||
TOTAL COMMON STOCKS - 88.65% | | | $ | 196,621 | ||||
(Cost: $195,970) | ||||||||
SHORT-TERM SECURITIES | Principal | ||||||
---|---|---|---|---|---|---|---|
Commercial Paper - 8.72% | |||||||
Automatic Data Processing Inc., | |||||||
2.000%, 10-1-08 | $ | 2,357 | 2,357 | ||||
Avon Capital Corp. (Avon Products, Inc.): | |||||||
2.200%, 10-3-08 | 4,000 | 4,000 | |||||
2.050%, 10-8-08 | 3,000 | 2,999 | |||||
McCormick & Co. Inc., | |||||||
3.000%, 10-1-08 | 5,000 | 5,000 | |||||
Pfizer Inc., | |||||||
1.800%, 10-8-08 | 5,000 | 4,998 | |||||
19,354 | |||||||
United States Government Obligations - 6.77% | |||||||
United States Treasury Bills: | |||||||
0.100%, 10-9-08 | 4,000 | 4,000 | |||||
0.095%, 10-9-08 | 5,000 | 5,000 | |||||
0.300%, 10-23-08 | 3,000 | 2,999 | |||||
0.320%, 10-30-08 | 3,000 | 2,999 | |||||
14,998 | |||||||
TOTAL SHORT-TERM SECURITIES - 15.49% | | $ | 34,352 | ||||
(Cost: $34,352) | |||||||
TOTAL INVESTMENT SECURITIES - 104.14% | | $ | 230,973 | ||||
(Cost: $230,322) | |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (4.14%) | (9,173 | ) | |||||
NET ASSETS - 100.00% | | $ | 221,800 | ||||
Notes to Schedule of Investments | |
(A)No dividends were paid during the preceding 12 months. | |
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts See Accompanying Notes to Financial Statements. | |
Statement of Assets and Liabilities
IVY DIVIDEND OPPORTUNITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $230,322) | $ | 230,973 | ||
Receivables: | ||||
Fund shares sold | 956 | |||
Dividends and interest | 500 | |||
Prepaid and other assets | 49 | |||
Total assets | 232,478 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 9,606 | |||
Payable to Fund shareholders | 607 | |||
Due to custodian | 155 | |||
Accrued management fee | 132 | |||
Accrued shareholder servicing | 70 | |||
Accrued distribution and service fees | 70 | |||
Accrued accounting services fee | 8 | |||
Other | 30 | |||
Total liabilities | 10,678 | |||
Total net assets | $ | 221,800 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 225,165 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 325 | |||
Accumulated net realized loss on investment transactions | (4,341 | ) | ||
Net unrealized appreciation in value of investments | 651 | |||
Net assets applicable to outstanding units of capital | $ | 221,800 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $14.22 | |||
Class B | $14.07 | |||
Class C | $14.11 | |||
Class E | $14.18 | |||
Class I | $14.24 | |||
Class Y | $14.23 | |||
Capital shares outstanding: | ||||
Class A | 11,150 | |||
Class B | 706 | |||
Class C | 2,005 | |||
Class E | 146 | |||
Class I | 10 | |||
Class Y | 1,604 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY DIVIDEND OPPORTUNITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $17) | $ | 2,187 | ||
Interest and amortization | 287 | |||
Total income | 2,474 | |||
Expenses: | ||||
Investment management fee | 803 | |||
Distribution and service fees: | ||||
Class A | 207 | |||
Class B | 56 | |||
Class C | 138 | |||
Class E | 3 | |||
Class Y | 28 | |||
Shareholder servicing: | ||||
Class A | 217 | |||
Class B | 27 | |||
Class C | 39 | |||
Class E | 11 | |||
Class I | –– | * | ||
Class Y | 18 | |||
Accounting services fee | 47 | |||
Audit fees | 12 | |||
Custodian fees | 6 | |||
Legal fees | 1 | |||
Other | 85 | |||
Total | 1,698 | |||
Less expenses in excess of limit | (3 | ) | ||
Total expenses | 1,695 | |||
Net investment income | 779 | |||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS | ||||
Realized net loss on investments | (1,345 | ) | ||
Unrealized depreciation in value of investments during the period | (28,764 | ) | ||
Net loss on investments | (30,109 | ) | ||
Net decrease in net assets resulting from operations | $ | (29,330 | ) | |
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY DIVIDEND OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 779 | $ | 1,086 | ||||
Realized net loss on investments | (1,345 | ) | (2,385 | ) | ||||
Unrealized appreciation (depreciation) | (28,764 | ) | 4,858 | |||||
Net increase (decrease) in net assets resulting from operations | (29,330 | ) | 3,559 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (376 | ) | (1,106 | ) | ||||
Class B | (–– | ) | (14 | ) | ||||
Class C | (–– | ) | (53 | ) | ||||
Class E | (1 | ) | (3 | ) | ||||
Class I | (1 | ) | (2 | ) | ||||
Class Y | (67 | ) | (66 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (1,516 | ) | ||||
Class B | (–– | ) | (126 | ) | ||||
Class C | (–– | ) | (259 | ) | ||||
Class E | (–– | ) | (19 | ) | ||||
Class I | (–– | ) | (1 | ) | ||||
Class Y | (— | ) | (95 | ) | ||||
(445 | ) | (3,260 | ) | |||||
Capital share transactions | 54,413 | 57,974 | ||||||
Total increase | 24,638 | 58,273 | ||||||
NET ASSETS | ||||||||
Beginning of period | 197,162 | 138,889 | ||||||
End of period | $ | 221,800 | $ | 197,162 | ||||
Accumulated undistributed net investment income (loss) | $ | 325 | $ | (9 | ) | |||
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
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(2) to | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.05 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.07 | (3) | 0.13 | (3) | 0.17 | (3) | 0.12 | (3) | 0.09 | 0.01 | 0.04 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.86 | ) (3) | 0.54 | (3) | 1.49 | (3) | 2.30 | (3) | 1.10 | 0.04 | 1.03 | ||||||||||||||
Total from investment operations | (1.79 | ) | 0.67 | 1.66 | 2.42 | 1.19 | 0.05 | 1.07 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.14 | ) | (0.18 | ) | (0.11 | ) | (0.09 | ) | (0.01 | ) | (0.04 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.18 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.04 | ) | (0.32 | ) | (0.37 | ) | (0.14 | ) | (0.13 | ) | (0.01 | ) | (0.04 | ) | |||||||||||
Net asset value, end of period | $ | 14.22 | $ | 16.05 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | |||||||||||
Total return(4) | - -11.20 | % | 4.10 | % | 11.57 | % | 19.99 | % | 10.78 | % | 0.41 | % | 10.70 | % | |||||||||||
Net assets, end of period (in millions) | $159 | $148 | $107 | $61 | $32 | $17 | $16 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.38 | %(5) | 1.37 | % | 1.38 | % | 1.45 | % | 1.59 | % | 2.00 | %(5) | 1.11 | %(5) | |||||||||||
Ratio of net investment income to average net assets including expense waiver | 0.82 | %(5) | 0.77 | % | 1.16 | % | 0.92 | % | 0.94 | % | 0.20 | %(5) | 1.34 | %(5) | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.38 | %(5)(6) | 1.37 | %(6) | 1.38 | %(6) | 1.45 | %(6) | 1.59 | %(6) | 2.40 | %(5) | 1.81 | %(5) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.82 | %(5)(6) | 0.77 | %(6) | 1.16 | %(6) | 0.92 | %(6) | 0.94 | %(6) | - -0.20 | %(5) | 0.64 | %(5) | |||||||||||
Portfolio turnover rate | 10 | % | 30 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
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(2) to | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.93 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.03 | ) | 0.05 | 0.01 | 0.02 | (0.02 | ) | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.85 | ) | 0.53 | 1.47 | 2.28 | 1.06 | 0.04 | 1.03 | |||||||||||||||||
Total from investment operations | (1.86 | ) | 0.50 | 1.52 | 2.29 | 1.08 | 0.02 | 1.04 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.02 | ) | (0.04 | ) | (0.01 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.18 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.20 | ) | (0.23 | ) | (0.04 | ) | (0.04 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Net asset value, end of period | $ | 14.07 | $ | 15.93 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | |||||||||||
Total return | - -11.68 | % | 3.09 | % | 10.63 | % | 18.94 | % | 9.76 | % | 0.18 | % | 10.36 | % | |||||||||||
Net assets, end of period (in millions) | $10 | $11 | $10 | $7 | $6 | $2 | $2 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.37 | %(3) | 2.34 | % | 2.30 | % | 2.32 | % | 2.44 | % | 2.99 | %(3) | 2.03 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -0.17 | %(3) | - -0.16 | % | 0.29 | % | 0.03 | % | 0.11 | % | - -0.81 | %(3) | 0.36 | %(3) | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.37 | %(3)(4) | 2.34 | %(4) | 2.30 | %(4) | 2.32 | %(4) | 2.44 | %(4) | 3.39 | %(3) | 2.73 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -0.17 | %(3)(4) | - -0.16 | %(4) | 0.29 | %(4) | 0.03 | %(4) | 0.11 | %(4) | - -1.21 | %(3) | - -0.34 | %(3) | |||||||||||
Portfolio turnover rate | 10 | % | 30 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
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(2) to | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.95 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 0.00 | (3) | 0.00 | 0.07 | 0.01 | 0.01 | (0.02 | ) | 0.01 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.84 | )(3) | 0.54 | 1.47 | 2.28 | 1.07 | 0.04 | 1.03 | |||||||||||||||||
Total from investment operations | (1.84 | ) | 0.54 | 1.54 | 2.29 | 1.08 | 0.02 | 1.04 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.04 | ) | (0.06 | ) | (0.01 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.18 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.22 | ) | (0.25 | ) | (0.04 | ) | (0.04 | ) | (0.00 | ) | (0.01 | ) | |||||||||||
Net asset value, end of period | $ | 14.11 | $ | 15.95 | $ | 15.63 | $ | 14.34 | $ | 12.09 | $ | 11.05 | $ | 11.03 | |||||||||||
Total return | - -11.54 | % | 3.32 | % | 10.74 | % | 18.95 | % | 9.76 | % | 0.18 | % | 10.38 | % | |||||||||||
Net assets, end of period (in millions) | $28 | $24 | $19 | $14 | $10 | $6 | $5 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.15 | %(4) | 2.15 | % | 2.17 | % | 2.27 | % | 2.42 | % | 2.88 | %(4) | 1.98 | %(4) | |||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 0.06 | %(4) | 0.00 | % | 0.42 | % | 0.08 | % | 0.10 | % | - -0.68 | %(4) | 0.45 | %(4) | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.15 | %(4)(5) | 2.15 | %(5) | 2.17 | %(5) | 2.27 | %(5) | 2.42 | %(5) | 3.28 | %(4) | 2.68 | %(4) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.06 | %(4)(5) | 0.00 | %(5) | 0.42 | %(5) | 0.08 | %(5) | 0.10 | %(5) | - -1.08 | %(4) | - -0.25 | %(4) | |||||||||||
Portfolio turnover rate | 10 | % | 30 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.01 | $ | 15.76 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.03 | (3) | (0.01 | )(3) | |||||
Net realized and unrealized gain (loss) on investments | (1.85 | )(3) | 0.51 | (3) | |||||
Total from investment operations | (1.82 | ) | 0.50 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.01 | ) | (0.07 | ) | |||||
Capital gains | (0.00 | ) | (0.18 | ) | |||||
Total distributions | (0.01 | ) | (0.25 | ) | |||||
Net asset value, end of period | $ | 14.18 | $ | 16.01 | |||||
Total return(4) | - -11.40 | % | 3.01 | % | |||||
Net assets, end of period (in millions) | $2 | $2 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.82 | %(5) | 2.17 | %(5) | |||||
Ratio of net investment income (loss) to average net assets including expense waiver | 0.39 | %(5) | - -0.18 | %(5) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.10 | %(5) | 2.17 | %(5)(6) | |||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.11 | %(5) | - -0.18 | %(5)(6) | |||||
Portfolio turnover rate | 10 | % | 30 | %(7) |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.07 | $ | 15.76 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.08 | (3) | 0.20 | ||||||
Net realized and unrealized gain (loss) on investments | (1.85 | )(3) | 0.47 | ||||||
Total from investment operations | (1.77 | ) | 0.67 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.06 | ) | (0.18 | ) | |||||
Capital gains | (0.00 | ) | (0.18 | ) | |||||
Total distributions | (0.06 | ) | (0.36 | ) | |||||
Net asset value, end of period | $ | 14.24 | $ | 16.07 | |||||
Total return | - -11.03 | % | 4.08 | % | |||||
Net assets, end of period (in thousands) | $141 | $104 | |||||||
Ratio of expenses to average net assets | 1.00 | %(4) | 1.00 | %(4) | |||||
Ratio of net investment income to average net assets | 1.16 | %(4) | 1.17 | %(4) | |||||
Portfolio turnover rate | 10 | % | 30 | %(5) |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY DIVIDEND OPPORTUNITIES FUND(1)
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(2) to | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.06 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | $ | 10.00 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.06 | (3) | 0.14 | (3) | 0.12 | (3) | 0.15 | (3) | 0.11 | 0.01 | 0.05 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.85 | )(3) | 0.55 | (3) | 1.55 | (3) | 2.29 | (3) | 1.10 | 0.04 | 1.03 | ||||||||||||||
Total from investment operations | (1.79 | ) | 0.69 | 1.67 | 2.44 | 1.21 | 0.05 | 1.08 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.15 | ) | (0.19 | ) | (0.13 | ) | (0.11 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.18 | ) | (0.19 | ) | (0.03 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.04 | ) | (0.33 | ) | (0.38 | ) | (0.16 | ) | (0.15 | ) | (0.01 | ) | (0.05 | ) | |||||||||||
Net asset value, end of period | $ | 14.23 | $ | 16.06 | $ | 15.70 | $ | 14.41 | $ | 12.13 | $ | 11.07 | $ | 11.03 | |||||||||||
Total return | - -11.15 | % | 4.23 | % | 11.65 | % | 20.14 | % | 10.94 | % | 0.42 | % | 10.78 | % | |||||||||||
Net assets, end of period (in millions) | $23 | $12 | $3 | $1 | $1 | $1 | $1 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.26 | %(4) | 1.26 | % | 1.29 | % | 1.34 | % | 1.44 | % | 1.91 | %(4) | 1.25 | %(4) | |||||||||||
Ratio of net investment income to average net assets including expense waiver | 0.83 | %(4) | 0.78 | % | 0.92 | % | 1.03 | % | 1.09 | % | 0.28 | %(4) | 1.08 | %(4) | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.26 | %(4)(5) | 1.26 | %(5) | 1.29 | %(5) | 1.34 | %(5) | 1.44 | %(5) | 2.31 | %(4) | 1.95 | %(4) | |||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.83 | %(4)(5) | 0.78 | %(5) | 0.92 | %(5) | 1.03 | %(5) | 1.09 | %(5) | - -0.12 | %(4) | 0.38 | %(4) | |||||||||||
Portfolio turnover rate | 10 | % | 30 | % | 24 | % | 15 | % | 32 | % | 12 | % | 16 | % |
(1)Dividend Opportunities Fund (formerly Dividend Income Fund) changed its name and investment objective effective June 2, 2008.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY SMALL CAP VALUE FUND
Portfolio Highlights
On September 30, 2008, Ivy Small Cap Value Fund had net assets totaling $135,493
(in thousands) invested in a diversified portfolio of:
82.34% | Domestic Common Stocks | |
13.21% | Cash and Cash Equivalents | |
4.45% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Financials Stocks | $ | 23.23 | |||
Industrials Stocks | $ | 16.14 | |||
Consumer Discretionary Stocks | $ | 14.65 | |||
Cash and Cash Equivalents | $ | 13.21 | |||
Materials Stocks | $ | 9.53 | |||
Information Technology Stocks | $ | 7.34 | |||
Consumer Staples Stocks | $ | 6.00 | |||
Utilities Stocks | $ | 4.92 | |||
Health Care Stocks | $ | 3.09 | |||
Telecommunication Services Stocks | $ | 1.89 |
The Investments of Ivy Small Cap Value Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Aerospace & Defense - 2.93% | |||||||
Orbital Sciences Corporation (A) | 103 | $ | 2,462 | ||||
Teledyne Technologies Incorporated (A) | 26 | 1,503 | |||||
3,965 | |||||||
Airlines - 0.94% | |||||||
Continental Airlines, Inc., Class B (A) | 20 | 337 | |||||
Northwest Airlines Corporation (A) | 104 | 941 | |||||
1,278 | |||||||
Alternative Carriers - 1.44% | |||||||
tw telecom inc. (A) | 188 | 1,952 | |||||
Apparel Retail - 0.97% | |||||||
Finish Line, Inc. (The), Class A (A) | 131 | 1,313 | |||||
Apparel, Accessories & Luxury Goods - 1.44% | |||||||
Warnaco Group, Inc. (The) (A) | 43 | 1,949 | |||||
Application Software - 1.23% | |||||||
Lawson Software, Inc. (A) | 105 | 735 | |||||
TIBCO Software Inc. (A) | 128 | 936 | |||||
1,671 | |||||||
Asset Management & Custody Banks - 2.05% | |||||||
Affiliated Managers Group, Inc. (A) | 24 | 1,997 | |||||
Pzena Investment Management, Inc., Class A | 82 | 773 | |||||
2,770 | |||||||
Auto Parts & Equipment - 2.10% | |||||||
LKQ Corporation (A) | 168 | 2,848 | |||||
Casinos & Gaming - 2.15% | |||||||
Pinnacle Entertainment, Inc. (A) | 151 | 1,143 | |||||
WMS Industries Inc. (A) | 58 | 1,776 | |||||
2,919 | |||||||
Communications Equipment - 0.70% | |||||||
Polycom, Inc. (A) | 41 | 947 | |||||
Construction Materials - 0.72% | |||||||
Texas Industries, Inc. | 24 | 981 | |||||
Diversified Chemicals - 1.08% | |||||||
Solutia Inc. (A) | 105 | 1,463 | |||||
Diversified Metals & Mining - 0.37% | |||||||
General Moly, Inc. (A) | 116 | 505 | |||||
Education Services - 2.12% | |||||||
Corinthian Colleges, Inc. (A) | 85 | 1,276 | |||||
ITT Educational Services, Inc. (A) | 20 | 1,594 | |||||
2,870 | |||||||
Electric Utilities - 3.44% | |||||||
Cleco Corporation | 61 | 1,532 | |||||
ITC Holdings Corp. | 28 | 1,460 | |||||
UIL Holdings Corporation | 49 | 1,672 | |||||
4,664 | |||||||
Environmental & Facilities Services - 2.29% | |||||||
Casella Waste Systems, Inc., Class A (A) | 115 | 1,351 | |||||
Waste Connections, Inc. (A) | 51 | 1,751 | |||||
3,102 | |||||||
Fertilizers & Agricultural Chemicals - 0.59% | |||||||
Terra Industries Inc. | 27 | 803 | |||||
Food Retail - 3.82% | |||||||
Casey's General Stores, Inc. | 57 | 1,719 | |||||
Ruddick Corporation | 107 | 3,458 | |||||
5,177 | |||||||
Gas Utilities - 1.48% | |||||||
Southwest Gas Corporation | 66 | 2,005 | |||||
Gold - 1.33% | |||||||
Randgold Resources Limited, ADR | 34 | 1,400 | |||||
Seabridge Gold Inc. (A) | 24 | 399 | |||||
1,799 | |||||||
Health Care Distributors - 1.98% | |||||||
Kindred Healthcare, Inc. (A) | 97 | 2,684 | |||||
Health Care Facilities - 1.11% | |||||||
AmSurg Corp. (A) | 59 | 1,498 | |||||
Homebuilding - 2.44% | |||||||
Pulte Homes, Inc. | 119 | 1,655 | |||||
Ryland Group, Inc. (The) | 62 | 1,650 | |||||
3,305 | |||||||
Human Resource & Employment Services - 3.02% | |||||||
Resources Connection, Inc. (A) | 64 | 1,453 | |||||
Watson Wyatt & Company Holdings, Inc., Class A | 53 | 2,631 | |||||
4,084 | |||||||
Hypermarkets & Super Centers - 2.18% | |||||||
BJ's Wholesale Club, Inc. (A) | 76 | 2,950 | |||||
Industrial Machinery - 0.86% | |||||||
Actuant Corporation, Class A | 46 | 1,168 | |||||
Integrated Telecommunication Services - 0.45% | |||||||
SureWest Communications | 59 | 614 | |||||
Internet Software & Services - 0.59% | |||||||
SkillSoft Public Limited Company, ADR (A) | 77 | 805 | |||||
Investment Banking & Brokerage - 2.82% | |||||||
KBW, Inc. (A) | 66 | 2,174 | |||||
Piper Jaffray Companies (A) | 38 | 1,641 | |||||
3,815 | |||||||
IT Consulting & Other Services - 0.88% | |||||||
Forrester Research, Inc. (A) | 41 | 1,191 | |||||
Leisure Products - 1.13% | |||||||
LeapFrog Enterprises, Inc. (A) | 145 | 1,533 | |||||
Metal & Glass Containers - 3.78% | |||||||
Pactiv Corporation (A) | 98 | 2,421 | |||||
Silgan Holdings Inc. | 53 | 2,698 | |||||
5,119 | |||||||
Office REITs - 1.26% | |||||||
Digital Realty Trust, Inc. | 36 | 1,701 | |||||
Regional Banks - 10.57% | |||||||
Bank of the Ozarks, Inc. | 22 | 613 | |||||
First Financial Bankshares, Inc. | 43 | 2,301 | |||||
First Horizon National Corporation | 61 | 575 | |||||
First Midwest Bancorp, Inc. | 71 | 1,761 | |||||
Home BancShares, Inc. (A) | 24 | 644 | |||||
Sierra Bancorp | 34 | 721 | |||||
Sterling Bancshares, Inc. | 153 | 1,634 | |||||
SVB Financial Group (A) | 25 | 1,445 | |||||
Texas Capital Bancshares, Inc. (A) | 154 | 3,141 | |||||
United Bankshares, Inc. | 43 | 1,487 | |||||
14,322 | |||||||
Reinsurance - 2.53% | |||||||
IPC Holdings, Ltd. | 74 | 2,297 | |||||
Platinum Underwriters Holdings, Ltd. | 32 | 1,135 | |||||
3,432 | |||||||
Research & Consulting Services - 1.27% | |||||||
Duff & Phelps Corporation, Class A (A) | 82 | 1,724 | |||||
Residential REITs - 1.45% | |||||||
American Campus Communities, Inc. | 58 | 1,965 | |||||
Restaurants - 2.30% | |||||||
CBRL Group, Inc. | 56 | 1,462 | |||||
Jack in the Box Inc. (A) | 78 | 1,650 | |||||
3,112 | |||||||
Security & Alarm Services - 3.41% | |||||||
Brink's Company (The) | 51 | 3,100 | |||||
GEO Group, Inc. (The) (A) | 75 | 1,522 | |||||
4,622 | |||||||
Semiconductors - 1.97% | |||||||
Atmel Corporation (A) | 343 | 1,164 | |||||
PMC-Sierra, Inc. (A) | 202 | 1,503 | |||||
2,667 | |||||||
Specialized REITs - 0.74% | |||||||
Entertainment Properties Trust | 18 | 1,007 | |||||
Specialty Chemicals - 1.66% | |||||||
Sensient Technologies Corporation | 80 | 2,248 | |||||
Systems Software - 1.97% | |||||||
Sybase, Inc. (A) | 87 | 2,667 | |||||
Thrifts & Mortgage Finance - 1.81% | |||||||
First Niagara Financial Group, Inc. | 156 | 2,457 | |||||
Trucking - 1.42% | |||||||
Marten Transport, Ltd. (A) | 42 | 816 | |||||
Werner Enterprises, Inc. | 51 | 1,112 | |||||
1,928 | |||||||
TOTAL COMMON STOCKS - 86.79% | | | $ | 117,599 | |||
(Cost: $115,510) | |||||||
SHORT-TERM SECURITIES | Principal | ||||||
Commercial Paper | |||||||
Baxter International Inc., | |||||||
2.350%, 10-10-08 | $ | 2,025 | 2,024 | ||||
Caterpillar Inc., | |||||||
1.850%, 10-27-08 | 2,173 | 2,170 | |||||
Danaher Corporation, | |||||||
1.800%, 10-6-08 | 3,000 | 2,999 | |||||
Pfizer Inc., | |||||||
1.800%, 10-8-08 | 5,000 | 4,999 | |||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | |||||||
2.100%, 10-7-08 | 2,000 | 1,999 | |||||
Wisconsin Electric Power Co., | |||||||
4.000%, 10-1-08 | 4,602 | 4,602 | |||||
TOTAL SHORT-TERM SECURITIES - 13.87% | $ | 18,793 | |||||
(Cost: $18,793) | |||||||
TOTAL INVESTMENT SECURITIES - 100.66% | $ | 136,392 | |||||
(Cost: $134,303) | |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%) | (899) | ||||||
NET ASSETS - 100.00% | $ | 135,493 | |||||
Notes to Schedule of Investments |
(A)No dividends were paid during the preceding 12 months. |
The following acronym is used throughout this portfolio: |
ADR = American Depositary Receipts |
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY SMALL CAP VALUE FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $134,303) | $ | 136,392 | ||
Receivables: | ||||
Investment securities sold | 1,416 | |||
Fund shares sold | 407 | |||
Dividends and interest | 116 | |||
Prepaid and other assets | 31 | |||
Total assets | 138,362 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 2,284 | |||
Payable to Fund shareholders | 308 | |||
Accrued management fee | 98 | |||
Accrued shareholder servicing | 81 | |||
Accrued distribution and service fees | 27 | |||
Due to custodian | 21 | |||
Accrued accounting services fee | 6 | |||
Other | 44 | |||
Total liabilities | 2,869 | |||
Total net assets | $ | 135,493 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 149,649 | ||
Accumulated undistributed income (loss): | ||||
Accumulated net investment loss | (513 | ) | ||
Accumulated net realized loss on investment transactions | (15,732 | ) | ||
Net unrealized appreciation in value of investments | 2,089 | |||
Net assets applicable to outstanding units of capital | $ | 135,493 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $12.85 | |||
Class B | $12.17 | |||
Class C | $12.35 | |||
Class E | $12.90 | |||
Class I | $13.14 | |||
Class Y | $13.05 | |||
Capital shares outstanding: | ||||
Class A | 8,587 | |||
Class B | 423 | |||
Class C | 615 | |||
Class E | 7 | |||
Class I | 43 | |||
Class Y | 902 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY SMALL CAP VALUE FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income: | ||||
Dividends | $ | 665 | ||
Interest and amortization | 169 | |||
Total income | 834 | |||
Expenses: | ||||
Investment management fee | 585 | |||
Shareholder servicing: | ||||
Class A | 318 | |||
Class B | 23 | |||
Class C | 23 | |||
Class E | –– | * | ||
Class I | 1 | |||
Class Y | 10 | |||
Distribution and service fees: | ||||
Class A | 139 | |||
Class B | 27 | |||
Class C | 38 | |||
Class E | –– | * | ||
Class Y | 16 | |||
Accounting services fee | 34 | |||
Audit fees | 18 | |||
Legal fees | 7 | |||
Custodian fees | 5 | |||
Other | 86 | |||
Total expenses | 1,330 | |||
Net investment loss | (496 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on investments | (3,803 | ) | ||
Unrealized appreciation in value of investments during the period | 2,769 | |||
Net loss on investments | (1,034 | ) | ||
Net decrease in net assets resulting from operations | $ | (1,530 | ) | |
*Not shown due to rounding.
See Accompanying 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, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment loss | $ | (496 | ) | $ | (1,085 | ) | ||
Realized net loss on investments | (3,803 | ) | (9,224 | ) | ||||
Unrealized appreciation (depreciation) | 2,769 | (14,609 | ) | |||||
Net decrease in net assets resulting from operations | (1,530 | ) | (24,918 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (–– | ) | (–– | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (6,914 | ) | ||||
Class B | (–– | ) | (343 | ) | ||||
Class C | (–– | ) | (513 | ) | ||||
Class E | (–– | ) | (6 | ) | ||||
Class I | (–– | ) | (31 | ) | ||||
Class Y | (–– | ) | (939 | ) | ||||
(–– | ) | (8,746 | ) | |||||
Capital share transactions | 5,108 | 2,515 | ||||||
Total increase (decrease) | 3,578 | (31,149 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 131,915 | 163,064 | ||||||
End of period | $ | 135,493 | $ | 131,915 | ||||
Accumulated net investment loss | $ | (513 | ) | $ | (17 | ) | ||
(1)See "Financial Highlights" on pages 39 - 44.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 7-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 12.96 | $ | 16.22 | $ | 16.24 | $ | 16.88 | $ | 16.68 | $ | 13.02 | $ | 12.25 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.10 | ) | (0.03 | ) | (0.11 | ) | (0.13 | ) | (0.08 | ) | (0.09 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.06 | ) | (2.28 | ) | 1.35 | 2.62 | 1.52 | 3.76 | 1.74 | ||||||||||||||||
Total from investment operations | (0.11 | ) | (2.38 | ) | 1.32 | 2.51 | 1.39 | 3.68 | 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 | ) | (0.88 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | (0.88 | ) | |||||||||||
Total distributions | (0.00 | ) | (0.88 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | (0.88 | ) | |||||||||||
Net asset value, end of period | $ | 12.85 | $ | 12.96 | $ | 16.22 | $ | 16.24 | $ | 16.88 | $ | 16.68 | $ | 13.02 | |||||||||||
Total return(1) | - -0.85 | % | - -15.19 | % | 8.26 | % | 16.44 | % | 8.23 | % | 28.29 | % | 14.91 | % | |||||||||||
Net assets, end of period (in millions) | $110 | $104 | $121 | $86 | $66 | $65 | $59 | ||||||||||||||||||
Ratio of expenses to average net assets | 1.89 | %(2) | 1.76 | % | 1.74 | % | 1.80 | % | 1.76 | % | 1.65 | %(2)(3) | 1.53 | % | |||||||||||
Ratio of net investment loss to average net assets | - -0.68 | %(2) | - -0.63 | % | - -0.24 | % | - -0.76 | % | - -0.79 | % | - -0.76 | %(2)(3) | - -0.82 | % | |||||||||||
Portfolio turnover rate | 46 | % | 118 | % | 123 | % | 157 | % | 124 | % | 27 | % | 54 | % |
*Not shown due to rounding.
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
(2)Annualized.
(3)In connection with the reorganization plan effected December 8, 2003, Class B and Class C shares of the predecessor Advantus Fund were exchanged into Class A shares at the time of the merger. The ratios shown above reflect a blended rate that includes the effect of income and expenses for those Class B and Class C shares from August 1, 2003 up to the time of the merger. Actual expenses that applied to Class A shareholders were lower than shown above.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 12.34 | $ | 15.48 | $ | 15.72 | $ | 16.59 | $ | 16.61 | $ | 15.27 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment loss | (0.14 | ) | (0.35 | ) | (0.14 | ) | (0.25 | ) | (0.23 | ) | (0.05 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (0.03 | ) | (2.08 | ) | 1.24 | 2.53 | 1.40 | 1.41 | ||||||||||||||
Total from investment operations | (0.17 | ) | (2.43 | ) | 1.10 | 2.28 | 1.17 | 1.36 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.71 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.71 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | ||||||||||
Net asset value, end of period | $ | 12.17 | $ | 12.34 | $ | 15.48 | $ | 15.72 | $ | 16.59 | $ | 16.61 | ||||||||||
Total return | - -1.38 | % | - -16.14 | % | 7.11 | % | 15.28 | % | 6.92 | % | 8.93 | % | ||||||||||
Net assets, end of period (in millions) | $5 | $5 | $9 | $7 | $5 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.95 | %(2) | 2.83 | % | 2.82 | % | 2.84 | % | 3.02 | % | 3.79 | %(2) | ||||||||||
Ratio of net investment loss to average net assets | - -1.73 | %(2) | - -1.69 | % | - -1.33 | % | - -1.80 | % | - -1.88 | % | - -2.93 | %(2) | ||||||||||
Portfolio turnover rate | 46 | % | 118 | % | 123 | % | 157 | % | 124 | % | 27 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.51 | $ | 15.69 | $ | 15.87 | $ | 16.67 | $ | 16.63 | $ | 15.27 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.10 | ) | (0.28 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.05 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | (0.06 | ) | (2.14 | ) | 1.28 | 2.56 | 1.42 | 1.43 | |||||||||||||
Total from investment operations | (0.16 | ) | (2.42 | ) | 1.16 | 2.35 | 1.23 | 1.38 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.76 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||
Total distributions | (0.00 | ) | (0.76 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | |||||||||
Net asset value, end of period | $ | 12.35 | $ | 12.51 | $ | 15.69 | $ | 15.87 | $ | 16.67 | $ | 16.63 | |||||||||
Total return | - -1.28 | % | - -15.91 | % | 7.43 | % | 15.64 | % | 7.28 | % | 9.06 | % | |||||||||
Net assets, end of period (in millions) | $8 | $8 | $12 | $10 | $8 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 2.69 | %(2) | 2.54 | % | 2.52 | % | 2.54 | % | 2.65 | % | 2.83 | %(2) | |||||||||
Ratio of net investment loss to average net assets | - -1.47 | %(2) | - -1.40 | % | - -1.04 | % | - -1.50 | % | - -1.53 | % | - -2.00 | %(2) | |||||||||
Portfolio turnover rate | 46 | % | 118 | % | 123 | % | 157 | % | 124 | % | 27 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 12.98 | $ | 16.23 | ||||||
Loss from investment operations: | ||||||||||
Net investment loss | (0.01 | ) | (0.02 | ) | ||||||
Net realized and unrealized loss on investments | (0.07 | ) | (2.30 | ) | ||||||
Total from investment operations | (0.08 | ) | (2.32 | ) | ||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.93 | ) | ||||||
Total distributions | (0.00 | ) | (0.93 | ) | ||||||
Net asset value, end of period | $ | 12.90 | $ | 12.98 | ||||||
Total return(3) | - -0.62 | % | - -14.82 | % | ||||||
Net assets, end of period (in thousands) | $85 | $85 | ||||||||
Ratio of expenses to average net assets | 1.32 | %(4) | 1.26 | %(4) | ||||||
Ratio of net investment loss to average net assets | - -0.10 | %(4) | - -0.14 | %(4) | ||||||
Portfolio turnover rate | 46 | % | 118 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 13.20 | $ | 16.43 | ||||||
Loss from investment operations: | ||||||||||
Net investment loss | (0.02 | ) | (0.01 | ) | ||||||
Net realized and unrealized loss on investments | (0.04 | ) | (2.26 | ) | ||||||
Total from investment operations | (0.06 | ) | (2.27 | ) | ||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.96 | ) | ||||||
Total distributions | (0.00 | ) | (0.96 | ) | ||||||
Net asset value, end of period | $ | 13.14 | $ | 13.20 | ||||||
Total return | - -0.45 | % | - -14.39 | % | ||||||
Net assets, end of period (in thousands) | $562 | $463 | ||||||||
Ratio of expenses to average net assets | 1.18 | %(2) | 1.19 | %(2) | ||||||
Ratio of net investment loss to average net assets | - -0.02 | %(2) | - -0.07 | %(2) | ||||||
Portfolio turnover rate | 46 | % | 118 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 16.42 | $ | 16.36 | $ | 16.92 | $ | 16.68 | $ | 15.27 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | (0.01 | )(2) | (0.04 | )(2) | 0.03 | (0.06 | ) | (0.10 | ) | (0.04 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.07 | )(2) | (2.32 | )(2) | 1.37 | 2.65 | 1.53 | 1.47 | ||||||||||||||
Total from investment operations | (0.08 | ) | (2.36 | ) | 1.40 | 2.59 | 1.43 | 1.43 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.93 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.93 | ) | (1.34 | ) | (3.15 | ) | (1.19 | ) | (0.02 | ) | ||||||||||
Net asset value, end of period | $ | 13.05 | $ | 13.13 | $ | 16.42 | $ | 16.36 | $ | 16.92 | $ | 16.68 | ||||||||||
Total return | - -0.61 | % | - -14.89 | % | 8.70 | % | 16.88 | % | 8.48 | % | 9.38 | % | ||||||||||
Net assets, end of period (in millions) | $12 | $14 | $21 | $24 | $25 | $25 | ||||||||||||||||
Ratio of expenses to average net assets | 1.42 | %(3) | 1.39 | % | 1.39 | % | 1.41 | % | 1.53 | % | 1.60 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets | - -0.20 | %(3) | - -0.25 | % | 0.08 | % | - -0.37 | % | - -0.56 | % | - -0.82 | %(3) | ||||||||||
Portfolio turnover rate | 46 | % | 118 | % | 123 | % | 157 | % | 124 | % | 27 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY VALUE FUND
Portfolio Highlights
On September 30, 2008, Ivy Value Fund had net assets totaling $54,388 (in thousands) invested in a diversified portfolio of:
92.97% | Domestic Common Stocks | |
3.60% | Cash and Cash Equivalents | |
3.43% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Financials Stocks | $ | 22.04 | |||
Energy Stocks | $ | 18.77 | |||
Consumer Staples Stocks | $ | 12.29 | |||
Industrials Stocks | $ | 11.29 | |||
Health Care Stocks | $ | 10.34 | |||
Information Technology Stocks | $ | 8.92 | |||
Telecommunication Services Stocks | $ | 3.92 | |||
Cash and Cash Equivalents | $ | 3.60 | |||
Materials Stocks | $ | 3.37 | |||
Utilities Stocks | $ | 2.84 | |||
Consumer Discretionary Stocks | $ | 2.62 |
The Investments of Ivy Value Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2008 | ||||||||
(In Thousands) (Unaudited) | ||||||||
COMMON STOCKS | | Shares | Value | |||||
Aerospace & Defense - 3.94% | ||||||||
Lockheed Martin Corporation | 10 | $ | 1,108 | |||||
Raytheon Company | 19 | 1,033 | ||||||
2,141 | ||||||||
Airlines - 0.18% | ||||||||
UAL Corporation | 11 | 100 | ||||||
Asset Management & Custody Banks - 0.48% | ||||||||
Blackstone Group L.P. (The) | 17 | 262 | ||||||
Brewers - 1.41% | ||||||||
Molson Coors Brewing Company, Class B | 16 | 767 | ||||||
Communications Equipment - 1.79% | ||||||||
Nokia Corporation, Series A, ADR | 52 | 970 | ||||||
Computer Hardware - 5.85% | ||||||||
Hewlett-Packard Company | 45 | 2,072 | ||||||
International Business Machines Corporation | 10 | 1,111 | ||||||
3,183 | ||||||||
Construction & Engineering - 0.47% | ||||||||
Chicago Bridge & Iron Company N.V., NY Shares | 13 | 258 | ||||||
Consumer Finance - 3.53% | ||||||||
Capital One Financial Corporation (A) | 33 | 1,663 | ||||||
Discover Financial Services | 19 | 256 | ||||||
1,919 | ||||||||
Department Stores - 1.67% | ||||||||
Macy's Inc. | 51 | 910 | ||||||
Diversified Chemicals - 0.75% | ||||||||
Solutia Inc. (B) | 29 | 406 | ||||||
Diversified Metals & Mining - 1.25% | ||||||||
Freeport-McMoRan Copper & Gold Inc., Class B | 12 | 682 | ||||||
Environmental & Facilities Services - 1.44% | ||||||||
Waste Management, Inc. | 25 | 781 | ||||||
Health Care Distributors - 7.74% | ||||||||
AmerisourceBergen Corporation | 42 | 1,563 | ||||||
McKesson Corporation | 49 | 2,647 | ||||||
4,210 | ||||||||
Home Improvement Retail - 0.63% | ||||||||
Home Depot, Inc. (The) | 13 | 342 | ||||||
Independent Power Producers & Energy Traders - 2.84% | ||||||||
Mirant Corporation (B) | 35 | 631 | ||||||
NRG Energy, Inc. (B) | 37 | 913 | ||||||
1,544 | ||||||||
Industrial Machinery - 2.29% | ||||||||
Illinois Tool Works Inc. | 28 | 1,248 | ||||||
Integrated Oil & Gas - 11.52% | ||||||||
Chevron Corporation | 33 | 2,705 | ||||||
Exxon Mobil Corporation | 18 | 1,398 | ||||||
Marathon Oil Corporation | 28 | 1,105 | ||||||
Occidental Petroleum Corporation | 15 | 1,057 | ||||||
6,265 | ||||||||
Integrated Telecommunication Services - 3.92% | ||||||||
Verizon Communications Inc. | 67 | 2,134 | ||||||
Managed Health Care - 1.98% | ||||||||
UnitedHealth Group Incorporated (A) | 43 | 1,079 | ||||||
Metal & Glass Containers - 1.38% | ||||||||
Pactiv Corporation (B) | 30 | 748 | ||||||
Mortgage REITs - 2.16% | ||||||||
Annaly Capital Management, Inc. | 87 | 1,173 | ||||||
Office Electronics - 1.28% | ||||||||
Xerox Corporation | 60 | 696 | ||||||
Oil & Gas Exploration & Production - 3.62% | ||||||||
Apache Corporation | 7 | 709 | ||||||
Devon Energy Corporation | 14 | 1,259 | ||||||
1,968 | ||||||||
Oil & Gas Storage & Transportation - 3.63% | ||||||||
Atlas Pipeline Partners, L.P. | 3 | 84 | ||||||
Boardwalk Pipeline Partners, LP | 4 | 80 | ||||||
Energy Transfer Partners, L.P. | 14 | 516 | ||||||
Enterprise Products Partners L.P. | 45 | 1,160 | ||||||
MarkWest Energy Partners, L.P. | 2 | 58 | ||||||
Regency Energy Partners LP | 4 | 80 | ||||||
1,978 | ||||||||
Other Diversified Financial Services - 6.53% | ||||||||
Bank of America Corporation | 56 | 1,966 | ||||||
J.P. Morgan Chase & Co. | 34 | 1,583 | ||||||
3,549 | ||||||||
Packaged Foods & Meats - 4.49% | ||||||||
General Mills, Inc. (A) | 18 | 1,230 | ||||||
Kraft Foods Inc. | 37 | 1,212 | ||||||
2,442 | ||||||||
Pharmaceuticals - 0.61% | ||||||||
Johnson & Johnson | 5 | 332 | ||||||
Property & Casualty Insurance - 5.22% | ||||||||
Allstate Corporation (The) | 19 | 895 | ||||||
Travelers Companies, Inc. (The) | 43 | 1,946 | ||||||
2,841 | ||||||||
Railroads - 2.97% | ||||||||
Union Pacific Corporation | 23 | 1,615 | ||||||
Regional Banks - 2.94% | ||||||||
SunTrust Banks, Inc. | 8 | 351 | ||||||
Synovus Financial Corp. | 48 | 496 | ||||||
Zions Bancorporation | 20 | 754 | ||||||
1,601 | ||||||||
Reinsurance - 1.18% | ||||||||
Everest Re Group, Ltd. (A) | 7 | 640 | ||||||
Specialty Stores - 0.32% | ||||||||
Office Depot, Inc. (B) | 29 | 171 | ||||||
Tobacco - 6.39% | ||||||||
Altria Group, Inc. | 38 | 746 | ||||||
Lorillard, Inc. | 18 | 1,259 | ||||||
Philip Morris International Inc. | 31 | 1,472 | ||||||
3,477 | ||||||||
TOTAL COMMON STOCKS - 96.40% | | | | | $ | 52,432 | ||
(Cost: $50,586) | ||||||||
SHORT-TERM SECURITIES | Principal | ||||||
Commercial Paper | |||||||
Wisconsin Electric Power Co., | |||||||
4.000%, 10-1-08 | $ | 2,256 | 2,256 | ||||
TOTAL SHORT-TERM SECURITIES - 4.15% | | | | $ | 2,256 | ||
(Cost: $2,256) | |||||||
TOTAL INVESTMENT SECURITIES - 100.55% | | | | $ | 54,688 | ||
(Cost: $52,842) | |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.55%) | | | (300 | ) | |||
NET ASSETS - 100.00% | | | | $ | 54,388 | ||
Notes to Schedule of Investments | ||||||||||
(A)Securities serve as cover for the following written options outstanding at September 30, 2008: | ||||||||||
Underlying Security | Contracts Subject to Call | Expiration Month/ Exercise Price | Premium Received | Market Value | ||||||
General Mills, Inc | ––* | October/70.0 | $ | 4 | $ | 5 | ||||
UnitedHealth Group Incorporated: | ––* | December/32.5 | 59 | 26 | ||||||
$ | 63 | $ | 31 | |||||||
Underlying Security | Contracts Subject to Put | Expiration Month/ Exercise Price | Premium Received | Market Value | ||||||
Allstate Corporation (The): | ––* | October/40.0 | $ | 3 | $ | 5 | ||||
––* | October/45.0 | 8 | 12 | |||||||
––* | January/40.0 | 6 | 15 | |||||||
––* | January/45.0 | 13 | 25 | |||||||
Home Depot, Inc. (The): | ––* | October/22.5 | 5 | 3 | ||||||
Molson Coors Brewing Company, Class B: | ––* | October/50.0 | 5 | 13 | ||||||
––* | January/50.0 | 7 | 15 | |||||||
Solutia Inc.: | ––* | October/17.5 | 8 | 22 | ||||||
––* | December/15.0 | 28 | 42 | |||||||
––* | December/17.5 | 12 | 24 | |||||||
$ | 95 | $ | 176 | |||||||
*Not shown due to rounding as amount is less than 500. | ||||||||||
(B)No dividends were paid during the preceding 12 months. | ||||||||||
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts | ||||||||||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY VALUE FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $52,842) | $ | 54,688 | ||
Cash | 85 | |||
Receivables: | ||||
Fund shares sold | 20 | |||
Dividends and interest | 141 | |||
Investment securities sold | 470 | |||
Prepaid and other assets | 25 | |||
Total assets | 55,429 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 446 | |||
Payable to Fund shareholders | 267 | |||
Outstanding written options - at value (premium received - $158) | 207 | |||
Accrued shareholder servicing | 34 | |||
Accrued management fee | 33 | |||
Accrued distribution and service fees | 25 | |||
Accrued accounting services fee | 4 | |||
Other | 25 | |||
Total liabilities | 1,041 | |||
Total net assets | $ | 54,388 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 56,409 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 70 | |||
Accumulated net realized loss on investment transactions | (3,888 | ) | ||
Net unrealized appreciation in value of investments | 1,797 | |||
Net assets applicable to outstanding units of capital | $ | 54,388 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $14.19 | |||
Class B | $13.97 | |||
Class C | $14.04 | |||
Class E | $14.21 | |||
Class I | $14.20 | |||
Class Y | $14.20 | |||
Capital shares outstanding: | ||||
Class A | 3,357 | |||
Class B | 225 | |||
Class C | 218 | |||
Class E | 6 | |||
Class I | 6 | |||
Class Y | 28 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY VALUE FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $10) | $ | 738 | ||
Interest and amortization | 32 | |||
Total income | 770 | |||
Expenses: | ||||
Investment management fee | 220 | |||
Shareholder servicing: | ||||
Class A | 126 | |||
Class B | 16 | |||
Class C | 12 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Distribution and service fees: | ||||
Class A | 69 | |||
Class B | 19 | |||
Class C | 17 | |||
Class E | –– | * | ||
Class Y | 1 | |||
Registration fees | 34 | |||
Accounting services fee | 23 | |||
Audit fees | 11 | |||
Custodian fees | 3 | |||
Legal fees | 1 | |||
Other | 21 | |||
Total expenses | 573 | |||
Net investment income | 197 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (1,459 | ) | ||
Realized net gain on written options | 180 | |||
Realized net loss on investments | (1,279 | ) | ||
Unrealized depreciation in value of securities during the period | (5,517 | ) | ||
Unrealized depreciation in value of written options during the period | (60 | ) | ||
Unrealized depreciation in value of investments during the period | (5,577 | ) | ||
Net loss on investments | (6,856 | ) | ||
Net decrease in net assets resulting from operations | $ | (6,659 | ) | |
*Not shown due to rounding.
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
DECREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 197 | $ | 434 | ||||
Realized net gain (loss) on investments | (1,279 | ) | 1,656 | |||||
Unrealized depreciation | (5,577 | ) | (10,152 | ) | ||||
Net decrease in net assets resulting from operations | (6,659 | ) | (8,062 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (139 | ) | (458 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | )* | (1 | ) | ||||
Class I | (1 | ) | (1 | ) | ||||
Class Y | (2 | ) | (3 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (4,876 | ) | ||||
Class B | (–– | ) | (372 | ) | ||||
Class C | (–– | ) | (322 | ) | ||||
Class E | (–– | ) | (7 | ) | ||||
Class I | (–– | ) | (7 | ) | ||||
Class Y | (— | ) | (19 | ) | ||||
(142 | ) | (6,066 | ) | |||||
Capital share transactions | (4,288 | ) | (4,139 | ) | ||||
Total decrease | (11,089 | ) | (18,267 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 65,477 | 83,744 | ||||||
End of period | $ | 54,388 | $ | 65,477 | ||||
Accumulated undistributed net investment income | $ | 70 | $ | 15 | ||||
*Not shown due to rounding.
(1)See "Financial Highlights" on pages 54 - 59.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 7-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 15.95 | $ | 19.04 | $ | 17.17 | $ | 16.04 | $ | 14.54 | $ | 12.54 | $ | 11.81 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.06 | 0.12 | 0.13 | 0.10 | 0.15 | 0.08 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.78 | ) | (1.85 | ) | 2.28 | 1.14 | 1.48 | 1.98 | 0.72 | ||||||||||||||||
Total from investment operations | (1.72 | ) | (1.73 | ) | 2.41 | 1.24 | 1.63 | 2.06 | 0.84 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.12 | ) | (0.13 | ) | (0.11 | ) | (0.13 | ) | (0.06 | ) | (0.11 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.24 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.04 | ) | (1.36 | ) | (0.54 | ) | (0.11 | ) | (0.13 | ) | (0.06 | ) | (0.11 | ) | |||||||||||
Net asset value, end of period | $ | 14.19 | $ | 15.95 | $ | 19.04 | $ | 17.17 | $ | 16.04 | $ | 14.54 | $ | 12.54 | |||||||||||
Total return(1) | - -10.81 | % | - -9.83 | % | 14.12 | % | 7.75 | % | 11.21 | % | 16.32 | % | 7.23 | % | |||||||||||
Net assets, end of period (in millions) | $48 | $57 | $73 | $58 | $41 | $52 | $64 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.70 | %(2) | 1.52 | % | 1.49 | % | 1.53 | % | 1.47 | % | 1.45 | %(2)(3) | 1.29 | % | |||||||||||
Ratio of net investment income to average net assets including expense waiver | 0.75 | %(2) | 0.63 | % | 0.76 | % | 0.65 | % | 0.92 | % | 0.61 | %(2)(3) | 1.05 | % | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.70 | %(2)(4) | 1.52 | %(4) | 1.49 | %(4) | 1.53 | %(4) | 1.47 | %(4) | 1.52 | %(2)(3) | 1.50 | % | |||||||||||
Ratio of net investment income to average net assets excluding expense waiver | 0.75 | %(2)(4) | 0.63 | %(4) | 0.76 | %(4) | 0.65 | %(4) | 0.92 | %(4) | 0.53 | %(2)(3) | 0.84 | % | |||||||||||
Portfolio turnover rate | 27 | % | 66 | % | 61 | % | 63 | % | 81 | % | 86 | % | 123 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 15.76 | $ | 18.83 | $ | 17.04 | $ | 15.97 | $ | 14.50 | $ | 13.63 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.09 | ) | (0.03 | ) | (0.04 | ) | 0.03 | 0.01 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (1.72 | ) | (1.80 | ) | 2.23 | 1.12 | 1.44 | 0.90 | ||||||||||||||
Total from investment operations | (1.79 | ) | (1.89 | ) | 2.20 | 1.08 | 1.47 | 0.91 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.18 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.18 | ) | (0.41 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Net asset value, end of period | $ | 13.97 | $ | 15.76 | $ | 18.83 | $ | 17.04 | $ | 15.97 | $ | 14.50 | ||||||||||
Total return | - -11.36 | % | - -10.72 | % | 12.99 | % | 6.73 | % | 10.14 | % | 6.65 | % | ||||||||||
Net assets, end of period (in millions) | $3 | $4 | $6 | $5 | $2 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.87 | %(2) | 2.51 | % | 2.46 | % | 2.50 | % | 2.53 | % | 3.12 | %(2) | ||||||||||
Ratio of net investment income (loss) to average net assets | - -0.44 | %(2) | - -0.35 | % | - -0.21 | % | - -0.33 | % | 0.07 | % | - -1.29 | %(2) | ||||||||||
Portfolio turnover rate | 27 | % | 66 | % | 61 | % | 63 | % | 81 | % | 86 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 15.83 | $ | 18.90 | $ | 17.08 | $ | 16.00 | $ | 14.51 | $ | 13.63 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | (0.03 | ) | (0.06 | ) | (0.01 | ) | (0.04 | ) | 0.03 | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (1.76 | ) | (1.81 | ) | 2.24 | 1.13 | 1.46 | 0.90 | ||||||||||||||
Total from investment operations | (1.79 | ) | (1.87 | ) | 2.23 | 1.09 | 1.49 | 0.92 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.20 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.20 | ) | (0.41 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Net asset value, end of period | $ | 14.04 | $ | 15.83 | $ | 18.90 | $ | 17.08 | $ | 16.00 | $ | 14.51 | ||||||||||
Total return | - -11.31 | % | - -10.56 | % | 13.09 | % | 6.80 | % | 10.27 | % | 6.73 | % | ||||||||||
Net assets, end of period (in millions) | $3 | $4 | $5 | $4 | $3 | $1 | ||||||||||||||||
Ratio of expenses to average net assets | 2.71 | %(2) | 2.41 | % | 2.38 | % | 2.41 | % | 2.42 | % | 2.90 | %(2) | ||||||||||
Ratio of net investment income (loss) to average net assets | - -0.26 | %(2) | - -0.25 | % | - -0.12 | % | - -0.23 | % | 0.15 | % | - -1.18 | %(2) | ||||||||||
Portfolio turnover rate | 27 | % | 66 | % | 61 | % | 63 | % | 81 | % | 86 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 15.97 | $ | 19.09 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income | 0.09 | 0.18 | ||||||||
Net realized and unrealized loss on investments | (1.78 | ) | (1.90 | ) | ||||||
Total from investment operations | (1.69 | ) | (1.72 | ) | ||||||
Less distributions from: | ||||||||||
Net investment income | (0.07 | ) | (0.16 | ) | ||||||
Capital gains | (0.00 | ) | (1.24 | ) | ||||||
Total distributions | (0.07 | ) | (1.40 | ) | ||||||
Net asset value, end of period | $ | 14.21 | $ | 15.97 | ||||||
Total return(3) | - -10.61 | % | - -9.76 | % | ||||||
Net assets, end of period (in thousands) | $81 | $90 | ||||||||
Ratio of expenses to average net assets | 1.22 | %(4) | 1.18 | %(4) | ||||||
Ratio of net investment income to average net assets | 1.22 | %(4) | 0.98 | %(4) | ||||||
Portfolio turnover rate | 27 | % | 66 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 15.97 | $ | 19.10 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income | 0.11 | 0.20 | ||||||||
Net realized and unrealized loss on investments | (1.80 | ) | (1.90 | ) | ||||||
Total from investment operations | (1.69 | ) | (1.70 | ) | ||||||
Less distributions from: | ||||||||||
Net investment income | (0.08 | ) | (0.19 | ) | ||||||
Capital gains | (0.00 | ) | (1.24 | ) | ||||||
Total distributions | (0.08 | ) | (1.43 | ) | ||||||
Net asset value, end of period | $ | 14.20 | $ | 15.97 | ||||||
Total return | - -10.62 | % | - -9.63 | % | ||||||
Net assets, end of period (in thousands) | $81 | $90 | ||||||||
Ratio of expenses to average net assets | 1.10 | %(2) | 1.07 | %(2) | ||||||
Ratio of net investment income to average net assets | 1.35 | %(2) | 1.09 | %(2) | ||||||
Portfolio turnover rate | 27 | % | 66 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | |||||||||||||||||
Net asset value, beginning of period | $ | 15.96 | $ | 19.04 | $ | 17.18 | $ | 16.05 | $ | 14.54 | $ | 13.63 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income | 0.09 | 0.16 | (2) | 0.22 | (2) | 0.13 | 0.17 | 0.01 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.79 | ) | (1.85 | )(2) | 2.22 | (2) | 1.15 | 1.49 | 0.95 | |||||||||||||
Total from investment operations | (1.70 | ) | (1.69 | ) | 2.44 | 1.28 | 1.66 | 0.96 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.15 | ) | (0.17 | ) | (0.15 | ) | (0.15 | ) | (0.05 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.24 | ) | (0.41 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.06 | ) | (1.39 | ) | (0.58 | ) | (0.15 | ) | (0.15 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $ | 14.20 | $ | 15.96 | $ | 19.04 | $ | 17.18 | $ | 16.05 | $ | 14.54 | ||||||||||
Total return | - -10.67 | % | - -9.60 | % | 14.28 | % | 7.99 | % | 11.44 | % | 7.05 | % | ||||||||||
Net assets, end of period (in thousands) | $399 | $419 | $294 | $12,286 | $20,286 | $22,379 | ||||||||||||||||
Ratio of expenses to average net assets | 1.36 | %(3) | 1.31 | % | 1.29 | % | 1.31 | % | 1.34 | % | 1.48 | %(3) | ||||||||||
Ratio of net investment income to average net assets | 1.11 | %(3) | 0.85 | % | 0.96 | % | 0.89 | % | 1.09 | % | 0.35 | %(3) | ||||||||||
Portfolio turnover rate | 27 | % | 66 | % | 61 | % | 63 | % | 81 | % | 86 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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, 2008, your Fund owned:
Ivy European Opportunities Fund, Class I | $ | 60.60 | |||
Ivy Pacific Opportunities Fund, Class I | $ | 39.32 | |||
Cash and Cash Equivalents | $ | 0.08 | |||
The Investments of Ivy Managed European/Pacific Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
AFFILIATED MUTUAL FUNDS | Shares | Value | |||||
Ivy European Opportunities Fund, Class I | 1,215 | $ | 31,376 | ||||
Ivy Pacific Opportunities Fund, Class I | 1,595 | 20,355 | |||||
TOTAL AFFILIATED MUTUAL FUNDS - 99.92% | | | $ | 51,731 | |||
(Cost: $79,922) | |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Repurchase Agreements | ||||||||
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-08 to be repurchased at $148, | ||||||||
0.050%, 10-1-08 (A) | $ | 148 | 148 | |||||
TOTAL SHORT-TERM SECURITIES - 0.29% | | | $ | 148 | ||||
(Cost: $148) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.21% | | | $ | 51,879 | ||||
(Cost: $80,070) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.21%) | (109 | ) | ||||||
NET ASSETS - 100.00% | | | $ | 51,770 | ||||
Notes to Schedule of Investments |
(A)Collateralized by $133 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $150. |
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY MANAGED EUROPEAN/PACIFIC FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: | ||||
Investments in affiliated mutual funds (cost - $79,922) | $ | 51,731 | ||
Repurchase agreement (cost - $148) | 148 | |||
51,879 | ||||
Receivable for Fund shares sold | 240 | |||
Prepaid and other assets | 40 | |||
Total assets | 52,159 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 191 | |||
Payable to Fund shareholders | 160 | |||
Accrued shareholder servicing | 12 | |||
Due to custodian | 7 | |||
Accrued accounting services fee | 2 | |||
Accrued management fee | 2 | |||
Accrued distribution and service fees | –– | * | ||
Other | 15 | |||
Total liabilities | 389 | |||
Total net assets | $ | 51,770 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 78,257 | ||
Accumulated undistributed income (loss): | ||||
Accumulated net investment loss | (224 | ) | ||
Accumulated undistributed net realized gain on investment transactions | 1,928 | |||
Net unrealized depreciation in value of investments | (28,191 | ) | ||
Net assets applicable to outstanding units of capital | $ | 51,770 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $7.16 | |||
Class B | $7.09 | |||
Class C | $7.10 | |||
Class E | $7.17 | |||
Class I | $7.19 | |||
Class Y | $7.17 | |||
Capital shares outstanding: | ||||
Class A | 6,761 | |||
Class B | 152 | |||
Class C | 242 | |||
Class E | 21 | |||
Class I | 21 | |||
Class Y | 37 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY MANAGED EUROPEAN/PACIFIC FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income: | ||||
Interest and amortization | $ | 2 | ||
Dividends from affiliated mutual funds | –– | |||
Total income | 2 | |||
Expenses: | ||||
Distribution and service fees: | ||||
Class A | 73 | |||
Class B | 7 | |||
Class C | 12 | |||
Class E | –– | * | ||
Class Y | –– | * | ||
Shareholder servicing: | ||||
Class A | 34 | |||
Class B | 2 | |||
Class C | 2 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Registration fees | 36 | |||
Investment management fee | 16 | |||
Accounting services fee | 13 | |||
Audit fees | 10 | |||
Custodian fees | 2 | |||
Legal fees | –– | * | ||
Other | 19 | |||
Total expenses | 226 | |||
Net investment loss | (224 | ) | ||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS | ||||
Capital gains distributions from affiliated mutual funds | –– | |||
Realized net loss on investments in affiliated mutual funds | (519 | ) | ||
Realized net loss on investments | (519 | ) | ||
Unrealized depreciation in value of affiliated mutual funds during the period | (18,418 | ) | ||
Net loss on investments | (18,937 | ) | ||
Net decrease in net assets resulting from operations | $ | (19,161 | ) | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MANAGED EUROPEAN/PACIFIC FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the period from 4-2-07(1) through | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 3-31-08 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | (224 | ) | $ | 2,037 | |||
Realized net gain (loss) on investments | (519 | ) | 2,549 | |||||
Unrealized depreciation | (18,418 | ) | (9,773 | ) | ||||
Net decrease in net assets resulting from operations | (19,161 | ) | (5,187 | ) | ||||
Distributions to shareholders from:(2) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (1,962 | ) | ||||
Class B | (–– | ) | (50 | ) | ||||
Class C | (–– | ) | (92 | ) | ||||
Class E | (–– | ) | (11 | ) | ||||
Class I | (–– | ) | (11 | ) | ||||
Class Y | (–– | ) | (13 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (–– | ) | (–– | ) | ||||
(–– | ) | (2,139 | ) | |||||
Capital share transactions | 12,832 | 65,425 | ||||||
Total increase (decrease) | (6,329 | ) | 58,099 | |||||
NET ASSETS | ||||||||
Beginning of period | 58,099 | (–– | ) | |||||
End of period | $ | 51,770 | $ | 58,099 | ||||
Accumulated net investment loss | $ | (224 | ) | $ | (–– | )* | ||
*Not shown due to rounding.
(1)Commencement of operations.
(2)See "Financial Highlights" on pages 65 - 70.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.81 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.03 | ) | 0.47 | (2) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.15 | )(2) | ||||||
Total from investment operations | (2.65 | ) | 0.32 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.51 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.51 | ) | ||||||
Net asset value, end of period | $ | 7.16 | $ | 9.81 | ||||||
Total return(3) | - -27.01 | % | 2.67 | % | ||||||
Net assets, end of period (in millions) | $49 | $54 | ||||||||
Ratio of expenses to average net assets including expense waiver | 0.66 | %(4) | 0.88 | %(4) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -0.66 | %(4) | 6.52 | %(4) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 0.66 | %(4)(5) | 0.89 | %(4) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -0.66 | %(4)(5) | 6.51 | %(4) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Commencement of operations of the class.
(2)Based on average weekly shares outstanding.
(3)Total return calculated without taking into account the sales load deducted on an initial purchase.
(4)Annualized.
(5)There was no waiver of expenses during the period.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.78 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.07 | ) | 0.44 | (2) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.21 | )(2) | ||||||
Total from investment operations | (2.69 | ) | 0.23 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.45 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.45 | ) | ||||||
Net asset value, end of period | $ | 7.09 | $ | 9.78 | ||||||
Total return | - -27.51 | % | 1.87 | % | ||||||
Net assets, end of period (in millions) | $1 | $1 | ||||||||
Ratio of expenses to average net assets including expense waiver | 1.60 | %(3) | 1.77 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -1.59 | %(3) | 5.43 | %(3) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 1.60 | %(3)(4) | 1.78 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -1.59 | %(3)(4) | 5.42 | %(3) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Commencement of operations of the class.
(2)Based on average weekly shares outstanding.
(3)Annualized.
(4)There was no waiver of expenses during the period.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.79 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.07 | ) | 0.45 | (2) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.21 | )(2) | ||||||
Total from investment operations | (2.69 | ) | 0.24 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.45 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.45 | ) | ||||||
Net asset value, end of period | $ | 7.10 | $ | 9.79 | ||||||
Total return | - -27.48 | % | 1.90 | % | ||||||
Net assets, end of period (in millions) | $2 | $3 | ||||||||
Ratio of expenses to average net assets including expense waiver | 1.44 | %(3) | 1.65 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -1.43 | %(3) | 6.18 | %(3) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 1.44 | %(3)(4) | 1.66 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -1.43 | %(3)(4) | 6.17 | %(3) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Commencement of operations of the class.
(2)Based on average weekly shares outstanding.
(3)Annualized.
(4)There was no waiver of expenses during the period.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.81 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.02 | ) | 0.49 | (3) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.16 | ) (3) | ||||||
Total from investment operations | (2.64 | ) | 0.33 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.52 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.52 | ) | ||||||
Net asset value, end of period | $ | 7.17 | $ | 9.81 | ||||||
Total return(4) | - -26.91 | % | 2.79 | % | ||||||
Net assets, end of period (in thousands) | $150 | $206 | ||||||||
Ratio of expenses to average net assets including expense waiver | 0.50 | %(5) | 0.79 | %(5) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -0.50 | %(5) | 4.44 | %(5) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 0.50 | %(5)(6) | 0.80 | %(5) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -0.50 | %(5)(6) | 4.43 | %(5) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Class is closed.
(2)Commencement of operations of the class.
(3)Based on average weekly shares outstanding.
(4)Total return calculated without taking into account the sales load deducted on an initial purchase.
(5)Annualized.
(6)There was no waiver of expenses during the period.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.82 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.01 | ) | 0.52 | (2) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.16 | )(2) | ||||||
Total from investment operations | (2.63 | ) | 0.36 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.54 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.54 | ) | ||||||
Net asset value, end of period | $ | 7.19 | $ | 9.82 | ||||||
Total return | - -26.78 | % | 3.07 | % | ||||||
Net assets, end of period (in thousands) | $151 | $206 | ||||||||
Ratio of expenses to average net assets including expense waiver | 0.26 | %(3) | 0.55 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -0.25 | %(3) | 4.67 | %(3) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 0.26 | %(3)(4) | 0.56 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -0.25 | %(3)(4) | 4.66 | %(3) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Commencement of operations of the class.
(2)Based on average weekly shares outstanding.
(3)Annualized.
(4)There was no waiver of expenses during the period.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED EUROPEAN/PACIFIC FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | |||||||||
Net asset value, beginning of period | $ | 9.81 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | (0.02 | ) | 0.49 | (2) | ||||||
Net realized and unrealized loss on investments | (2.62 | ) | (0.16 | )(2) | ||||||
Total from investment operations | (2.64 | ) | 0.33 | |||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.52 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.52 | ) | ||||||
Net asset value, end of period | $ | 7.17 | $ | 9.81 | ||||||
Total return | - -26.91 | % | 2.77 | % | ||||||
Net assets, end of period (in thousands) | $263 | $280 | ||||||||
Ratio of expenses to average net assets including expense waiver | 0.68 | %(3) | 0.81 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets including expense waiver | - -0.68 | %(3) | 4.76 | %(3) | ||||||
Ratio of expenses to average net assets excluding expense waiver | 0.68 | %(3)(4) | 0.82 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | - -0.68 | %(3)(4) | 4.75 | %(3) | ||||||
Portfolio turnover rate | 1 | % | 0 | %* |
*Not shown due to rounding.
(1)Commencement of operations of the class.
(2)Based on average weekly shares outstanding.
(3)Annualized.
(4)There was no waiver of expenses during the period.
See Accompanying 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, 2008, your Fund owned:
Ivy International Balanced Fund, Class I | $ | 43.15 | |||
Ivy International Core Equity Fund, Class I | $ | 19.77 | |||
Ivy International Growth Fund, Class I | $ | 14.63 | |||
Ivy European Opportunities Fund, Class I | $ | 13.57 | |||
Ivy Pacific Opportunities Fund, Class I | $ | 8.85 | |||
Cash and Cash Equivalents | $ | 0.03 |
The Investments of Ivy Managed International Opportunities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
AFFILIATED MUTUAL FUNDS | Shares | Value | |||||
Ivy European Opportunities Fund, Class I | 588 | $ | 15,193 | ||||
Ivy International Balanced Fund, Class I | 3,587 | 48,324 | |||||
Ivy International Core Equity Fund, Class I | 1,652 | 22,134 | |||||
Ivy International Growth Fund, Class I | 579 | 16,378 | |||||
Ivy Pacific Opportunities Fund, Class I | 777 | 9,909 | |||||
TOTAL AFFILIATED MUTUAL FUNDS - 99.97% | | | $ | 111,938 | |||
(Cost: $150,288) | |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Repurchase Agreements | ||||||||
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-08 to be repurchased at $239, | ||||||||
0.050%, 10-1-08 (A) | $ | 239 | 239 | |||||
TOTAL SHORT-TERM SECURITIES - 0.21% | | | $ | 239 | ||||
(Cost: $239) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.18% | | | $ | 112,177 | ||||
(Cost: $150,527) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.18%) | (203 | ) | ||||||
NET ASSETS - 100.00% | | | $ | 111,974 | ||||
Notes to Schedule of Investments |
(A)Collateralized by $215 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $243. |
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: | ||||
Investments in affiliated mutual funds (cost - $150,288) | $ | 111,938 | ||
Repurchase agreement (cost - $239) | 239 | |||
112,177 | ||||
Receivables: | ||||
Fund shares sold | 408 | |||
Interest | –– | * | ||
Prepaid and other assets | 37 | |||
Total assets | 112,622 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 308 | |||
Payable for investment securities purchased | 288 | |||
Accrued shareholder servicing | 17 | |||
Due to custodian | 10 | |||
Accrued management fee | 5 | |||
Accrued accounting services fee | 3 | |||
Accrued distribution and service fees | 1 | |||
Other | 16 | |||
Total liabilities | 648 | |||
Total net assets | $ | 111,974 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 147,771 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 881 | |||
Accumulated undistributed net realized gain on investment transactions | 1,672 | |||
Net unrealized depreciation in value of investments | (38,350 | ) | ||
Net assets applicable to outstanding units of capital | $ | 111,974 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $7.95 | |||
Class B | $7.89 | |||
Class C | $7.89 | |||
Class E | $7.96 | |||
Class I | $7.98 | |||
Class Y | $7.95 | |||
Capital shares outstanding: | ||||
Class A | 13,114 | |||
Class B | 430 | |||
Class C | 454 | |||
Class E | 21 | |||
Class I | 21 | |||
Class Y | 49 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends from affiliated mutual funds | $ | 1,134 | ||
Interest and amortization | 4 | |||
Total income | 1,138 | |||
Expenses: | ||||
Distribution and service fees: | ||||
Class A | 143 | |||
Class B | 20 | |||
Class C | 21 | |||
Class E | –– | * | ||
Class Y | 1 | |||
Shareholder servicing: | ||||
Class A | 46 | |||
Class B | 3 | |||
Class C | 2 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | –– | * | ||
Registration fees | 38 | |||
Investment management fee | 31 | |||
Accounting services fee | 20 | |||
Audit fees | 10 | |||
Custodian fees | 2 | |||
Legal fees | 1 | |||
Other | 25 | |||
Total expenses | 363 | |||
Net investment income | 775 | |||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS | ||||
Capital gains distributions from affiliated mutual funds | –– | |||
Realized net loss on investments in affiliated mutual funds | (500 | ) | ||
Realized net loss on investments | (500 | ) | ||
Unrealized depreciation in value of affiliated mutual funds during the period | (29,677 | ) | ||
Net loss on investments | (30,177 | ) | ||
Net decrease in net assets resulting from operations | $ | (29,402 | ) | |
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the period from 4-2-07(1) through | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 3-31-08 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 775 | $ | 2,574 | ||||
Realized net gain (loss) on investments | (500 | ) | 2,172 | |||||
Unrealized depreciation | (29,677 | ) | (8,673 | ) | ||||
Net decrease in net assets resulting from operations | (29,402 | ) | (3,927 | ) | ||||
Distributions to shareholders from:(2) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (2,299 | ) | ||||
Class B | (–– | ) | (67 | ) | ||||
Class C | (–– | ) | (75 | ) | ||||
Class E | (–– | ) | (7 | ) | ||||
Class I | (–– | ) | (7 | ) | ||||
Class Y | (–– | ) | (13 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (–– | ) | (–– | ) | ||||
(–– | ) | (2,468 | ) | |||||
Capital share transactions | 33,068 | 114,703 | ||||||
Total increase | 3,666 | 108,308 | ||||||
NET ASSETS | ||||||||
Beginning of period | 108,308 | –– | ||||||
End of period | $ | 111,974 | $ | 108,308 | ||||
Accumulated undistributed net investment income | $ | 881 | $ | 106 | ||||
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.05 | 0.35 | (2) | ||||||
Net realized and unrealized gain (loss) on investments | (2.16 | ) | 0.04 | (2) | |||||
Total from investment operations | (2.11 | ) | 0.39 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.33 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.33 | ) | |||||
Net asset value, end of period | $ | 7.95 | $ | 10.06 | |||||
Total return(3) | - -20.97 | % | 3.75 | % | |||||
Net assets, end of period (in millions) | $104 | $100 | |||||||
Ratio of expenses to average net assets including expense waiver | 0.54 | %(4) | 0.67 | %(4) | |||||
Ratio of net investment income to average net assets including expense waiver | 1.31 | %(4) | 4.67 | %(4) | |||||
Ratio of expenses to average net assets excluding expense waiver | 0.54 | %(4)(5) | 0.68 | %(4) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 1.31 | %(4)(5) | 4.66 | %(4) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.04 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.02 | 0.33 | (2) | ||||||
Net realized and unrealized loss on investments | (2.17 | ) | (0.02 | )(2) | |||||
Total from investment operations | (2.15 | ) | 0.31 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.27 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.27 | ) | |||||
Net asset value, end of period | $ | 7.89 | $ | 10.04 | |||||
Total return | - -21.41 | % | 2.98 | % | |||||
Net assets, end of period (in millions) | $3 | $4 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.36 | %(3) | 1.48 | %(3) | |||||
Ratio of net investment income to average net assets including expense waiver | 0.52 | %(3) | 4.05 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 1.36 | %(3)(4) | 1.49 | %(3) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 0.52 | %(3)(4) | 4.04 | %(3) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.04 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.02 | 0.30 | (2 | ||||||
Net realized and unrealized gain (loss) on investments | (2.17 | ) | 0.02 | (2) | |||||
�� | |||||||||
Total from investment operations | (2.15 | ) | 0.32 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.28 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.28 | ) | |||||
Net asset value, end of period | $ | 7.89 | $ | 10.04 | |||||
Total return | - -21.41 | % | 3.05 | % | |||||
Net assets, end of period (in millions) | $4 | $4 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.34 | %(3) | 1.44 | %(3) | |||||
Ratio of net investment income to average net assets including expense waiver | 0.54 | %(3) | 3.70 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 1.34 | %(3)(4) | 1.45 | %(3) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 0.54 | %(3)(4) | 3.69 | %(3) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.07 | 0.38 | (3) | ||||||
Net realized and unrealized gain (loss) on investments | (2.17 | ) | 0.02 | (3) | |||||
Total from investment operations | (2.10 | ) | 0.40 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.34 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.34 | ) | |||||
Net asset value, end of period | $ | 7.96 | $ | 10.06 | |||||
Total return(4) | - -20.87 | % | 3.82 | % | |||||
Net assets, end of period (in thousands) | $164 | $208 | |||||||
Ratio of expenses to average net assets including expense waiver | 0.44 | %(5) | 0.60 | %(5) | |||||
Ratio of net investment income to average net assets including expense waiver | 1.36 | %(5) | 3.57 | %(5) | |||||
Ratio of expenses to average net assets excluding expense waiver | 0.44 | %(5)(6) | 0.61 | %(5) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 1.36 | %(5)(6) | 3.56 | %(5) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.07 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.08 | 0.41 | (2) | ||||||
Net realized and unrealized gain (loss) on investments | (2.17 | ) | 0.02 | (2) | |||||
Total from investment operations | (2.09 | ) | 0.43 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.36 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.36 | ) | |||||
Net asset value, end of period | $ | 7.98 | $ | 10.07 | |||||
Total return | - -20.76 | % | 4.10 | % | |||||
Net assets, end of period (in thousands) | $165 | $208 | |||||||
Ratio of expenses to average net assets including expense waiver | 0.18 | %(3) | 0.36 | %(3) | |||||
Ratio of net investment income to average net assets including expense waiver | 1.63 | %(3) | 3.81 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 0.18 | %(3)(4) | 0.37 | %(3) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 1.63 | %(3)(4) | 3.80 | %(3) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.06 | 0.37 | (2) | ||||||
Net realized and unrealized gain (loss) on investments | (2.17 | ) | 0.03 | (2) | |||||
Total from investment operations | (2.11 | ) | 0.40 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.34 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.34 | ) | |||||
Net asset value, end of period | $ | 7.95 | $ | 10.06 | |||||
Total return | - -20.97 | % | 3.81 | % | |||||
Net assets, end of period (in thousands) | $389 | $446 | |||||||
Ratio of expenses to average net assets including expense waiver | 0.54 | %(3) | 0.64 | %(3) | |||||
Ratio of net investment income to average net assets including expense waiver | 1.28 | %(3) | 3.83 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 0.54 | %(3)(4) | 0.65 | %(3) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 1.28 | %(3)(4) | 3.82 | %(3) | |||||
Portfolio turnover rate | 7 | % | 0 | % |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY CUNDILL GLOBAL VALUE FUND
Portfolio Highlights
On September 30, 2008, Ivy Cundill Global Value Fund had net assets totaling $442,375
(in thousands) invested in a diversified portfolio of:
70.42% | Foreign Common Stocks | |
23.85% | Domestic Common Stocks | |
5.73% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsUnited States | $ | 23.85 | |||
Japan | $ | 20.46 | |||
Italy | $ | 11.50 | |||
South Korea | $ | 9.66 | |||
Germany | $ | 9.12 | |||
Canada | $ | 8.19 | |||
Bermuda | $ | 6.56 | |||
Cash and Cash Equivalents | $ | 5.73 | |||
Thailand | $ | 3.31 | |||
Other(1) | $ | 1.62 |
(1)Includes $1.12 Ireland and $0.50 Cayman Islands.
Sector WeightingsFinancials Stocks | $ | 26.07 | |||
Consumer Discretionary Stocks | $ | 18.40 | |||
Consumer Staples Stocks | $ | 18.34 | |||
Telecommunications Stocks | $ | 11.21 | |||
Information Technology Stocks | $ | 9.62 | |||
Cash and Cash Equivalents | $ | 5.73 | |||
Health Care Stocks | $ | 5.49 | |||
Materials Stocks | $ | 5.14 |
The Investments of Ivy Cundill Global Value Fund | ||||||
---|---|---|---|---|---|---|
September 30, 2008 | ||||||
(In Thousands) (Unaudited) | ||||||
COMMON STOCKS | Shares | Value | ||||
Bermuda - 6.56% | ||||||
First Pacific Company Limited (A) | 33,136 | $ | 17,532 | |||
Montpelier Re Holdings Ltd. | 695 | 11,471 | ||||
29,003 | ||||||
Canada - 8.19% | ||||||
Fairfax Financial Holdings Limited (A) | 69 | 22,086 | ||||
Loblaw Companies Limited (A) | 507 | 14,154 | ||||
36,240 | ||||||
Cayman Islands - 0.50% | ||||||
Semiconductor Manufacturing International Corporation (A)(B) | 72,552 | 2,196 | ||||
Germany - 9.12% | ||||||
Deutsche Telekom AG, Registered Shares (A) | 1,099 | 16,695 | ||||
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A) | 156 | 23,643 | ||||
40,338 | ||||||
Ireland - 1.12% | ||||||
Allied Irish Banks, p.l.c. (A) | 393 | 3,210 | ||||
Allied Irish Banks, p.l.c., ADR | 107 | 1,758 | ||||
4,968 | ||||||
Italy - 11.50% | ||||||
IFIL INVESTMENTS S.p.A. (A) | 3,068 | 13,914 | ||||
Italmobiliare S.p.A., Non-Convertible Savings Shares (A) | 299 | 13,435 | ||||
Mediaset S.p.A. (A) | 2,850 | 18,100 | ||||
Parmalat SpA (A)(B) | 2,303 | 5,435 | ||||
50,884 | ||||||
Japan - 20.46% | ||||||
AIFUL Corporation (A) | 1,390 | 10,753 | ||||
Asatsu-DK Inc. (A) | 523 | 14,911 | ||||
Coca-Cola West Holdings Company, Limited (A) | 254 | 5,740 | ||||
Kirin Brewery Company, Limited (A) | 1,071 | 14,072 | ||||
Mabuchi Motor Co., Ltd. (A) | 200 | 9,094 | ||||
Sega Sammy Holdings Inc. (A)(B) | 510 | 4,613 | ||||
Seven & i Holdings Co., Ltd. (A) | 785 | 22,539 | ||||
Takefuji Corporation (A) | 676 | 8,803 | ||||
90,525 | ||||||
South Korea - 9.66% | ||||||
Korea Tobacco & Ginseng Corporation (A) | 61 | 4,534 | ||||
Samsung Electronics Co., Ltd. (A) | 48 | 15,157 | ||||
SK Telecom Co., Ltd. (A) | 109 | 18,718 | ||||
SK Telecom Co., Ltd., ADR | 229 | 4,307 | ||||
42,716 | ||||||
Thailand - 3.31% | ||||||
Thai Beverage Public Company Limited (A) | 93,588 | 14,647 | ||||
United States - 23.36% | ||||||
BCE Inc. | 285 | 9,892 | ||||
Dell Inc. (B) | 435 | 7,168 | ||||
DIRECTV Group, Inc. (The) (B) | 701 | 18,339 | ||||
Liberty Media Corporation, Series A Liberty Entertainment (B) | 751 | 18,734 | ||||
Louisiana-Pacific Corporation | 1,000 | 9,300 | ||||
Microsoft Corporation | 334 | 8,903 | ||||
Office Depot, Inc. (B) | 1,151 | 6,699 | ||||
Pfizer Inc. | 1,318 | 24,304 | ||||
103,339 | ||||||
TOTAL COMMON STOCKS - 93.78% | | | | $ | 414,856 | |
(Cost: $472,737) | ||||||
INVESTMENT FUNDS | ||||||
United States | ||||||
Financial Select Sector SPDR Fund (The) | 110 | 2,188 | ||||
TOTAL INVESTMENT FUNDS - 0.49% | | | | $ | 2,188 | |
(Cost: $2,241) | ||||||
SHORT-TERM SECURITIES | Principal | |||||
Repurchase Agreements | ||||||
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-08 to be repurchased at $4,982, | ||||||
0.050%, 10-1-08 (C) | $ | 4,982 | 4,982 | |||
TOTAL SHORT-TERM SECURITIES - 1.13% | | | | $ | 4,982 | |
(Cost: $4,982) | ||||||
TOTAL INVESTMENT SECURITIES - 95.40% | | | | $ | 422,026 | |
(Cost: $479,960) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 4.60% | | | 20,349 | |||
NET ASSETS - 100.00% | | | | $ | 442,375 | |
Notes to Schedule of Investments | |||||||||||
The following forward currency contracts were outstanding at September 30, 2008: | |||||||||||
Type | Currency | Currency Amount Covered by Contract | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||
Sell | Euro | 52,577 | 10-10-08 | $ | 7,099 | $ | –– | ||||
Sell | Euro | 9,135 | 1-23-09 | 1,116 | –– | ||||||
Sell | Japanese Yen | 8,786,494 | 10-10-08 | 4,094 | –– | ||||||
Sell | Singapore Dollar | 18,894 | 10-10-08 | 567 | –– | ||||||
Sell | South Korean Won | 49,915,388 | 10-10-08 | 9,833 | –– | ||||||
$ | 22,709 | $ | –– | ||||||||
(A)Listed on an exchange outside the United States. |
(B)No dividends were paid during the preceding 12 months. |
(C)Collateralized by $4,470 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $5,049. |
Securities with an aggregate market value of $257,741, representing 58.26% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. |
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts |
Market Sector Diversification | |||
(as a % of net assets) | |||
Financials | 26.07% | ||
Consumer Discretionary | 18.40% | ||
Consumer Staples | 18.34% | ||
Telecommunication Services | 11.21% | ||
Information Technology | 9.62% | ||
Health Care | 5.49% | ||
Materials | 5.14% | ||
Other+ | 5.73% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements |
Statement of Assets and Liabilities
IVY CUNDILL GLOBAL VALUE FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: | ||||
Securities (cost - $474,978) | $ | 417,044 | ||
Repurchase agreement (cost - $4,982) | 4,982 | |||
422,026 | ||||
Cash denominated in foreign currencies (cost - $600) | 577 | |||
Unrealized appreciation on forward currency contracts | 22,709 | |||
Receivables: | ||||
Investment securities sold | 4,847 | |||
Dividends and interest | 1,350 | |||
Fund shares sold | 278 | |||
Prepaid and other assets | 49 | |||
Total assets | 451,836 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 5,584 | |||
Payable to Fund shareholders | 2,201 | |||
Due to custodian | 682 | |||
Accrued management fee | 379 | |||
Accrued shareholder servicing | 274 | |||
Accrued distribution and service fees | 180 | |||
Accrued accounting services fee | 8 | |||
Accrued administrative fee | 4 | |||
Other | 149 | |||
Total liabilities | 9,461 | |||
Total net assets | $ | 442,375 | ||
See Accompanying Notes to Financial Statements.
Statement of Assets and Liabilities (Continued)
IVY CUNDILL GLOBAL VALUE FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 499,095 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 1,496 | |||
Accumulated net realized loss on investment transactions | (22,963 | ) | ||
Net unrealized depreciation in value of investments | (35,253 | ) | ||
Net assets applicable to outstanding units of capital | $ | 442,375 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.57 | |||
Class B | $11.25 | |||
Class C | $11.21 | |||
Class E | $11.51 | |||
Class I | $11.72 | |||
Class Y | $11.65 | |||
Advisor Class | $11.64 | |||
Capital shares outstanding: | ||||
Class A | 29,139 | |||
Class B | 2,540 | |||
Class C | 5,879 | |||
Class E | 34 | |||
Class I | 127 | |||
Class Y | 585 | |||
Advisor Class | 173 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY CUNDILL GLOBAL VALUE FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $1,190) | $ | 10,290 | ||
Interest and amortization | 162 | |||
Total income | 10,452 | |||
Expenses: | ||||
Investment management fee | 2,638 | |||
Distribution and service fees: | ||||
Class A | 505 | |||
Class B | 169 | |||
Class C | 421 | |||
Class E | 1 | |||
Class Y | 9 | |||
Shareholder servicing: | ||||
Class A | 772 | |||
Class B | 86 | |||
Class C | 133 | |||
Class E | 2 | |||
Class I | 1 | |||
Class Y | 7 | |||
Advisor Class | –– | * | ||
Custodian fees | 62 | |||
Accounting services fee | 51 | |||
Administrative fee | 27 | |||
Audit fees | 23 | |||
Legal fees | 4 | |||
Other | 186 | |||
Total | 5,097 | |||
Less expenses in excess of limit | (13 | ) | ||
Total expenses | 5,084 | |||
Net investment income | 5,368 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net gain on securities | 903 | |||
Realized net gain on forward currency contracts | 1,234 | |||
Realized net loss on foreign currency transactions | (2,733 | ) | ||
Realized net loss on investments | (596 | ) | ||
Unrealized depreciation in value of securities during the period | (92,420 | ) | ||
Unrealized appreciation in value of forward currency contracts during the period | 29,935 | |||
Unrealized depreciation in value of investments during the period | (62,485 | ) | ||
Net loss on investments | (63,081 | ) | ||
Net decrease in net assets resulting from operations | $ | (57,713 | ) | |
*Not shown due to rounding.
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
DECREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 5,368 | $ | 7,346 | ||||
Realized net gain (loss) on investments | (596 | ) | 5,194 | |||||
Unrealized depreciation | (62,485 | ) | (113,157 | ) | ||||
Net decrease in net assets resulting from operations | (57,713 | ) | (100,617 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (6,280 | ) | ||||
Class B | (–– | ) | (120 | ) | ||||
Class C | (–– | ) | (749 | ) | ||||
Class E | (–– | ) | (3 | ) | ||||
Class I | (–– | ) | (29 | ) | ||||
Class Y | (–– | ) | (154 | ) | ||||
Advisor Class | (–– | ) | (46 | ) | ||||
Class II | NA | (–– | ) | |||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (45,728 | ) | ||||
Class B | (–– | ) | (4,026 | ) | ||||
Class C | (–– | ) | (12,421 | ) | ||||
Class E | (–– | ) | (31 | ) | ||||
Class I | (–– | ) | (159 | ) | ||||
Class Y | (–– | ) | (834 | ) | ||||
Advisor Class | (–– | ) | (233 | ) | ||||
Class II | NA | (–– | ) | |||||
(–– | ) | (70,813 | ) | |||||
Capital share transactions | (90,940 | ) | (235,499 | ) | ||||
Total decrease | (148,653 | ) | (406,929 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 591,028 | 997,957 | ||||||
End of period | $ | 442,375 | $ | 591,028 | ||||
Accumulated undistributed net investment income (loss) | $ | 1,496 | $ | (1,139 | ) | |||
(1)See "Financial Highlights" on pages 90 - 96.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 12.97 | $ | 16.28 | $ | 15.52 | $ | 13.79 | $ | 12.57 | $ | 11.41 | $ | 8.39 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income | 0.14 | 0.18 | 0.13 | 0.17 | 0.04 | 0.01 | 0.01 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | (2.00 | ) | 1.49 | 2.21 | 1.25 | 1.15 | 3.05 | ||||||||||||||
Total from investment operations | (1.40 | ) | (1.82 | ) | 1.62 | 2.38 | 1.29 | 1.16 | 3.06 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.18 | ) | (0.11 | ) | (0.16 | ) | (0.07 | ) | (0.00 | ) | (0.04 | ) | |||||||||
Capital gains | (0.00 | ) | (1.31 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.49 | ) | (0.86 | ) | (0.65 | ) | (0.07 | ) | (0.00 | ) | (0.04 | ) | |||||||||
Net asset value, end of period | $ | 11.57 | $ | 12.97 | $ | 16.28 | $ | 15.52 | $ | 13.79 | $ | 12.57 | $ | 11.41 | |||||||||
Total return(1) | - -10.79 | % | - -12.07 | % | 10.71 | % | 17.49 | % | 10.29 | % | 10.17 | % | 36.43 | % | |||||||||
Net assets, end of period (in millions) | $337 | $443 | $688 | $625 | $321 | $59 | $30 | ||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.76 | %(2) | 1.59 | % | 1.55 | % | 1.62 | % | 1.74 | % | 1.70 | %(2) | 2.05 | % | |||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 2.16 | %(2) | 1.05 | % | 0.81 | % | 1.09 | % | 0.08 | % | - -0.09 | %(2) | 0.18 | % | |||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.76 | %(2)(3) | 1.59 | %(3) | 1.55 | %(3) | 1.62 | %(3) | 1.74 | %(3) | 1.84 | %(2) | 2.21 | % | |||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 2.16 | %(2)(3) | 1.05 | %(3) | 0.81 | %(3) | 1.09 | %(3) | 0.08 | %(3) | - -0.23 | %(2) | 0.02 | % | |||||||||
Portfolio turnover rate | 26 | % | 39 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 12.68 | $ | 15.93 | $ | 15.23 | $ | 13.54 | $ | 12.38 | $ | 11.26 | $ | 8.32 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.03 | (1) | (0.01 | ) | 0.06 | (0.01 | ) | (0.02 | ) | (0.06 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (1.50 | ) | (1.93 | )(1) | 1.46 | 2.14 | 1.17 | 1.14 | 3.00 | ||||||||||||||
Total from investment operations | (1.43 | ) | (1.90 | ) | 1.45 | 2.20 | 1.16 | 1.12 | 2.94 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.04 | ) | (0.00 | ) | (0.02 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.31 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.35 | ) | (0.75 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 11.25 | $ | 12.68 | $ | 15.93 | $ | 15.23 | $ | 13.54 | $ | 12.38 | $ | 11.26 | |||||||||
Total return | - -11.28 | % | - -12.83 | % | 9.82 | % | 16.43 | % | 9.37 | % | 9.95 | % | 35.34 | % | |||||||||
Net assets, end of period (in millions) | $29 | $37 | $59 | $57 | $37 | $12 | $7 | ||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.63 | %(2) | 2.48 | % | 2.44 | % | 2.51 | % | 2.62 | % | 2.52 | %(2) | 3.20 | % | |||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.27 | %(2) | 0.18 | % | - -0.07 | % | 0.21 | % | - -0.86 | % | - -1.31 | %(2) | - -1.13 | % | |||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.63 | %(2)(3) | 2.48 | %(3) | 2.44 | %(3) | 2.51 | % (3) | 2.62 | %(3) | 2.67 | %(2) | 3.36 | % | |||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.27 | %(2)(3) | 0.18 | %(3) | - -0.07 | %(3) | 0.21 | %(3) | - -0.86 | %(3) | - -1.46 | %(2) | - -1.29 | % | |||||||||
Portfolio turnover rate | 26 | % | 39 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 12.62 | $ | 15.88 | $ | 15.16 | $ | 13.48 | $ | 12.30 | $ | 11.19 | $ | 8.26 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.05 | 0.03 | 0.08 | (0.02 | ) | (0.01 | ) | (0.03 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (1.50 | ) | (1.92 | ) | 1.46 | 2.14 | 1.20 | 1.12 | 2.96 | ||||||||||||||
Total from investment operations | (1.41 | ) | (1.87 | ) | 1.49 | 2.22 | 1.18 | 1.11 | 2.93 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.08 | ) | (0.02 | ) | (0.05 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.31 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.39 | ) | (0.77 | ) | (0.54 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 11.21 | $ | 12.62 | $ | 15.88 | $ | 15.16 | $ | 13.48 | $ | 12.30 | $ | 11.19 | |||||||||
Total return | - -11.17 | % | - -12.65 | % | 10.03 | % | 16.70 | % | 9.59 | % | 9.92 | % | 35.47 | % | |||||||||
Net assets, end of period (in millions) | $66 | $99 | $233 | $211 | $96 | $24 | $11 | ||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.43 | %(1) | 2.25 | % | 2.21 | % | 2.28 | % | 2.42 | % | 2.35 | %(1) | 2.93 | % | |||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.52 | %(1) | 0.37 | % | 0.15 | % | 0.43 | % | - -0.62 | % | - -1.09 | %(1) | - -0.83 | % | |||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.43 | %(1)(2) | 2.25 | %(2) | 2.21 | %(2) | 2.28 | %(2) | 2.42 | %(2) | 2.50 | %(1) | 3.10 | % | |||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.52 | %(1)(2) | 0.37 | %(2) | 0.15 | %(2) | 0.43 | %(2) | - -0.62 | %(2) | - -1.23 | %(1) | - -1.00 | % | |||||||||
Portfolio turnover rate | 26 | % | 39 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % |
(1)Annualized.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 12.93 | $ | 16.23 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.10 | 0.02 | (2) | ||||||
Net realized and unrealized loss on investments | (1.52 | ) | (1.87 | )(2) | |||||
Total from investment operations | (1.42 | ) | (1.85 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.14 | ) | |||||
Capital gains | (0.00 | ) | (1.31 | ) | |||||
Total distributions | (0.00 | ) | (1.45 | ) | |||||
Net asset value, end of period | $ | 11.51 | $ | 12.93 | |||||
Total return(3) | - -10.98 | % | - -12.31 | % | |||||
Net assets, end of period (in thousands) | $395 | $413 | |||||||
Ratio of expenses to average net assets including expense waiver | 2.19 | %(4) | 2.31 | %(4) | |||||
Ratio of net investment income to average net assets including expense waiver | 1.60 | %(4) | 0.29 | %(4) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.58 | %(4) | 2.31 | %(4)(5) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 1.21 | %(4) | 0.29 | %(4)(5) | |||||
Portfolio turnover rate | 26 | % | 39 | %(6) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY CUNDILL GLOBAL VALUE FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 13.11 | $ | 16.29 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.17 | 0.24 | (2) | ||||||
Net realized and unrealized loss on investments | (1.56 | ) | (1.87 | )(2) | |||||
Total from investment operations | (1.39 | ) | (1.63 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.24 | ) | |||||
Capital gains | (0.00 | ) | (1.31 | ) | |||||
Total distributions | (0.00 | ) | (1.55 | ) | |||||
Net asset value, end of period | $ | 11.72 | $ | 13.11 | |||||
Total return | - -10.60 | % | - -10.93 | % | |||||
Net assets, end of period (in millions) | $1 | $2 | |||||||
Ratio of expenses to average net assets | 1.26 | %(3) | 1.21 | %(3) | |||||
Ratio of net investment income to average net assets | 2.62 | %(3) | 1.45 | %(3) | |||||
Portfolio turnover rate | 26 | % | 39 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 13.02 | $ | 16.33 | $ | 15.56 | $ | 13.82 | $ | 12.58 | $ | 11.40 | $ | 9.84 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.25 | (2) | 0.19 | 0.19 | 0.07 | (0.01 | ) | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | (2.01 | )(2) | 1.49 | 2.26 | 1.29 | 1.19 | 1.58 | |||||||||||||||
Total from investment operations | (1.37 | ) | (1.76 | ) | 1.68 | 2.45 | 1.36 | 1.18 | 1.60 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.24 | ) | (0.16 | ) | (0.22 | ) | (0.12 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.31 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.55 | ) | (0.91 | ) | (0.71 | ) | (0.12 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Net asset value, end of period | $ | 11.65 | $ | 13.02 | $ | 16.33 | $ | 15.56 | $ | 13.82 | $ | 12.58 | $ | 11.40 | ||||||||||
Total return | - -10.52 | % | - -11.73 | % | 11.14 | % | 17.99 | % | 10.90 | % | 10.35 | % | 16.28 | % | ||||||||||
Net assets, end of period (in millions) | $7 | $8 | $15 | $17 | $10 | $2 | $1 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.20 | %(3) | 1.20 | % | 1.20 | % | 1.19 | % | 1.20 | % | 1.20 | %(3) | 1.76 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 2.69 | %(3) | 1.42 | % | 1.18 | % | 1.46 | % | 0.52 | % | - -0.32 | %(3) | 0.55 | %(3) | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.52 | %(3) | 1.45 | % | 1.42 | % | 1.46 | % | 1.56 | % | 1.80 | %(3) | 2.09 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 2.37 | %(3) | 1.17 | % | 0.96 | % | 1.19 | % | 0.16 | % | - -0.92 | %(3) | 0.22 | %(3) | ||||||||||
Portfolio turnover rate | 26 | % | 39 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 13.01 | $ | 16.30 | $ | 15.54 | $ | 13.77 | $ | 12.54 | $ | 11.37 | $ | 8.34 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.25 | 0.21 | 0.22 | 0.04 | (0.01 | ) | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.54 | ) | (1.97 | ) | 1.49 | 2.23 | 1.32 | 1.18 | 3.10 | ||||||||||||||
Total from investment operations | (1.37 | ) | (1.72 | ) | 1.70 | 2.45 | 1.36 | 1.17 | 3.09 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.26 | ) | (0.19 | ) | (0.19 | ) | (0.13 | ) | (0.00 | ) | (0.06 | ) | |||||||||
Capital gains | (0.00 | ) | (1.31 | ) | (0.75 | ) | (0.49 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.57 | ) | (0.94 | ) | (0.68 | ) | (0.13 | ) | (0.00 | ) | (0.06 | ) | |||||||||
Net asset value, end of period | $ | 11.64 | $ | 13.01 | $ | 16.30 | $ | 15.54 | $ | 13.77 | $ | 12.54 | $ | 11.37 | |||||||||
Total return | - -10.53 | % | - -11.54 | % | 11.33 | % | 18.09 | % | 10.86 | % | 10.29 | % | 37.11 | % | |||||||||
Net assets, end of period (in millions) | $2 | $2 | $3 | $3 | $3 | $3 | $3 | ||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.12 | %(2) | 1.05 | % | 1.05 | % | 1.12 | % | 1.23 | % | 1.26 | %(2) | 2.12 | % | |||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 2.74 | %(2) | 1.62 | % | 1.31 | % | 1.57 | % | 0.41 | % | - -0.17 | %(2) | - -0.07 | % | |||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.12 | %(2)(3) | 1.05 | %(3) | 1.05 | %(3) | 1.12 | %(3) | 1.23 | %(3) | 1.41 | %(2) | 2.28 | % | |||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 2.74 | %(2)(3) | 1.62 | %(3) | 1.31 | %(3) | 1.57 | %(3) | 0.41 | %(3) | - -0.32 | %(2) | - -0.23 | % | |||||||||
Portfolio turnover rate | 26 | % | 39 | % | 42 | % | 4 | % | 5 | % | 1 | % | 24 | % |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY EUROPEAN OPPORTUNITIES FUND
Portfolio Highlights
On September 30, 2008, Ivy European Opportunities Fund had net assets totaling $361,282
(in thousands) invested in a diversified portfolio of:
94.31% | Foreign Common Stocks | |
5.69% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsUnited Kingdom | $ | 28.01 | |||
France | $ | 16.45 | |||
Germany | $ | 12.58 | |||
Greece | $ | 8.79 | |||
Other Europe(1) | $ | 5.73 | |||
Cash and Cash Equivalents | $ | 5.69 | |||
Netherlands | $ | 5.57 | |||
Ireland | $ | 5.09 | |||
Luxembourg | $ | 4.22 | |||
Spain | $ | 3.32 | |||
Bahamas/Caribbean(2) | $ | 2.99 | |||
Other (3) | $ | 1.56 |
(1)Includes $1.78 Italy, $1.86 Norway and $2.09 Switzerland.
(2)Includes $1.40 British Virgin Islands and $1.59 Cayman Islands.
(3)Includes $1.56 Cyprus.
Financials Stocks | $ | 26.97 | |||
Consumer Discretionary Stocks | $ | 11.57 | |||
Telecommunication Services Stocks | $ | 11.02 | |||
Consumer Staples Stocks | $ | 10.63 | |||
Energy Stocks | $ | 10.59 | |||
Health Care Stocks | $ | 8.65 | |||
Materials Stocks | $ | 7.12 | |||
Cash and Cash Equivalents | $ | 5.69 | |||
Industrials Stocks | $ | 4.88 | |||
Utilities Stocks | $ | 2.88 |
The Investments of Ivy European Opportunities Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2008 | ||||||||
(In Thousands) (Unaudited) | ||||||||
COMMON STOCKS | | Shares | Value | |||||
British Virgin Islands - 1.40% | ||||||||
Inmarsat plc (A) | 577 | $ | 5,045 | |||||
Cayman Islands - 1.59% | ||||||||
Subsea 7 Inc. (A)(B) | 425 | 5,747 | ||||||
Cyprus - 1.56% | ||||||||
Prosafe ASA (A) | 668 | 3,656 | ||||||
Prosafe Production (A)(B) | 827 | 1,972 | ||||||
5,628 | ||||||||
France - 16.45% | ||||||||
Altamir Amboise (A) | 501 | 3,901 | ||||||
BNP Paribas (A)(B) | 75 | 7,158 | ||||||
Carrefour S.A. (A)(B) | 131 | 6,167 | ||||||
France Telecom (A) | 454 | 12,738 | ||||||
Peugeot S.A. (A) | 183 | 6,874 | ||||||
Sanofi-Aventis (A) | 190 | 12,500 | ||||||
Societe Generale (A) | 113 | 10,102 | ||||||
59,440 | ||||||||
Germany - 12.58% | ||||||||
Bayer Aktiengesellschaft (A) | 137 | 10,068 | ||||||
Commerzbank Aktiengesellschaft (A) | 483 | 7,442 | ||||||
Deutsche Borse AG (A) | 47 | 4,377 | ||||||
Deutsche Postbank AG (A) | 46 | 1,803 | ||||||
Deutsche Telekom AG, Registered Shares (A) | 748 | 11,357 | ||||||
RWE Aktiengesellschaft (A) | 108 | 10,386 | ||||||
45,433 | ||||||||
Greece - 8.79% | ||||||||
Alpha Bank (A) | 428 | 9,326 | ||||||
Coca-Cola Hellenic Bottling Company S.A. (A) | 155 | 3,389 | ||||||
National Bank of Greece S.A. (A) | 301 | 12,177 | ||||||
OPAP S.A. (A) | 223 | 6,851 | ||||||
31,743 | ||||||||
Ireland - 5.09% | ||||||||
CRH public limited company (A) | 461 | 9,858 | ||||||
Grafton Group plc, Units (A)(B) | 1,144 | 5,262 | ||||||
Paddy Power plc (A)(B) | 189 | 3,278 | ||||||
18,398 | ||||||||
Italy - 1.78% | ||||||||
Eni S.p.A. (A) | 138 | 3,651 | ||||||
UniCredit S.p.A. (A) | 748 | 2,798 | ||||||
6,449 | ||||||||
Luxembourg - 4.22% | ||||||||
Acergy S.A. (A)(B) | 500 | 5,055 | ||||||
SES GLOBAL S.A., Fiduciary Deposit Receipts (A) | 493 | 10,203 | ||||||
15,258 | ||||||||
Netherlands - 5.57% | ||||||||
Akzo Nobel N.V. (A) | 76 | 3,639 | ||||||
Heineken N.V. (A) | 191 | 7,684 | ||||||
TNT N.V. (A) | 317 | 8,784 | ||||||
20,107 | ||||||||
Norway - 1.86% | ||||||||
SeaDrill Limited (A) | 325 | 6,724 | ||||||
Spain - 3.32% | ||||||||
Banco Bilbao Vizcaya Argentaria, S.A. (A) | 503 | 8,134 | ||||||
Industria de Diseno Textil, S.A. (A) | 91 | 3,865 | ||||||
11,999 | ||||||||
Switzerland - 2.09% | ||||||||
Novartis AG, Registered Shares (A) | 143 | 7,551 | ||||||
United Kingdom - 28.01% | ||||||||
Ashtead Group plc (A) | 2,963 | 3,566 | ||||||
Aurora Russia Limited (A)(B) | 1,557 | 1,201 | ||||||
BP p.l.c. (A) | 1,374 | 11,442 | ||||||
British Sky Broadcasting Group plc (A) | 501 | 3,723 | ||||||
GlaxoSmithKline plc (A) | 518 | 11,209 | ||||||
Imperial Tobacco Group PLC (A) | 520 | 16,703 | ||||||
Lloyds TSB Group plc (A) | 1,923 | 7,728 | ||||||
Man Group plc (A) | 1,323 | 8,087 | ||||||
MAXjet Airways, Inc. (A)(B)(C)(D) | 1,129 | - - | * | |||||
MAXjet Airways, Inc. (A)(B)(D) | 150 | - - | * | |||||
Royal Bank of Scotland Group plc (The) (A) | 4,094 | 13,206 | ||||||
tesco plc (A) | 644 | 4,479 | ||||||
Vodafone Group Plc (A) | 4,833 | 10,674 | ||||||
William Hill PLC (A) | 1,660 | 7,001 | ||||||
Xstrata plc (A) | 70 | 2,171 | ||||||
101,190 | ||||||||
TOTAL COMMON STOCKS - 94.31% | | | | | $ | 340,712 | ||
(Cost: $450,978) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||
---|---|---|---|---|---|---|
Commercial Paper | ||||||
Kimberly-Clark Worldwide Inc., | ||||||
2.050%, 10-16-08 | $ | 4,000 | 3,997 | |||
Shell International Finance B.V. and Royal Dutch Shell plc (Royal Dutch Shell plc), | ||||||
2.100%, 10-9-08 | 4,000 | 3,998 | ||||
Walgreen Co., | ||||||
1.000%, 10-1-08 | 3,063 | 3,063 | ||||
TOTAL SHORT-TERM SECURITIES - 3.06% | | | | $ | 11,058 | |
(Cost: $11,058) | ||||||
TOTAL INVESTMENT SECURITIES - 97.37% | | | | $ | 351,770 | |
(Cost: $462,036) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.63% | | | 9,512 | |||
NET ASSETS - 100.00% | | | | $ | 361,282 | |
Notes to Schedule of Investments |
*Not shown due to rounding as amount is less than 500. |
(A)Listed on an exchange outside the United States. |
(B)No dividends were paid during the preceding 12 months. |
(C)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $-* or 0.00% of net assets. |
(D)Securities valued in good faith by the Valuation Committee appointed by the Board of Trustees. |
Securities with an aggregate market value of $338,741, representing 93.76% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. |
Market Sector Diversification | |||
(as a % of net assets) | |||
Financials | 26.97% | ||
Consumer Discretionary | 11.57% | ||
Telecommunication Services | 11.02% | ||
Consumer Staples | 10.63% | ||
Energy | 10.59% | ||
Health Care | 8.65% | ||
Materials | 7.12% | ||
Industrials | 4.88% | ||
Utilities | 2.88% | ||
Other+ | 5.69% | ||
+Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY EUROPEAN OPPORTUNITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $462,036) | $ | 351,770 | ||
Receivables: | ||||
Investment securities sold | 18,150 | |||
Dividends and interest | 1,641 | |||
Fund shares sold | 504 | |||
Prepaid and other assets | 46 | |||
Total assets | 372,111 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 8,619 | |||
Payable to Fund shareholders | 1,098 | |||
Accrued management fee | 315 | |||
Due to custodian | 302 | |||
Accrued shareholder servicing | 207 | |||
Accrued distribution and service fees | 129 | |||
Accrued accounting services fee | 8 | |||
Accrued administrative fee | 3 | |||
Other | 148 | |||
Total liabilities | 10,829 | |||
Total net assets | $ | 361,282 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 459,753 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 14,154 | |||
Accumulated net realized loss on investment transactions | (2,210 | ) | ||
Net unrealized depreciation in value of investments | (110,415 | ) | ||
Net assets applicable to outstanding units of capital | $ | 361,282 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $25.68 | |||
Class B | $24.57 | |||
Class C | $24.70 | |||
Class E | $25.76 | |||
Class I | $25.82 | |||
Class Y | $25.75 | |||
Advisor Class | $26.02 | |||
Capital shares outstanding: | ||||
Class A | 9,992 | |||
Class B | 735 | |||
Class C | 1,372 | |||
Class E | 3 | |||
Class I | 1,876 | |||
Class Y | 118 | |||
Advisor Class | 45 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY EUROPEAN OPPORTUNITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $1,289) | $ | 18,604 | ||
Interest and amortization | 225 | |||
Total income | 18,829 | |||
Expenses: | ||||
Investment management fee | 2,312 | |||
Shareholder servicing: | ||||
Class A | 679 | |||
Class B | 73 | |||
Class C | 78 | |||
Class E | –– | * | ||
Class I | 44 | |||
Class Y | 4 | |||
Advisor Class | 1 | |||
Distribution and service fees: | ||||
Class A | 446 | |||
Class B | 145 | |||
Class C | 249 | |||
Class E | –– | * | ||
Class Y | 5 | |||
Custodian fees | 88 | |||
Accounting services fee | 50 | |||
Administrative fee | 25 | |||
Audit fees | 23 | |||
Legal fees | 3 | |||
Other | 163 | |||
Total expenses | 4,388 | |||
Net investment income | 14,441 | |||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (20,991 | ) | ||
Realized net loss on foreign currency transactions | (230 | ) | ||
Realized net loss on investments | (21,221 | ) | ||
Unrealized depreciation in value of investments during the period | (124,231 | ) | ||
Net loss on investments | (145,452 | ) | ||
Net decrease in net assets resulting from operations | $ | (131,011 | ) | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 14,441 | $ | 7,608 | ||||
Realized net gain (loss) on investments | (21,221 | ) | 65,885 | |||||
Unrealized depreciation | (124,231 | ) | (105,031 | ) | ||||
Net decrease in net assets resulting from operations | (131,011 | ) | (31,538 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (5,178 | ) | ||||
Class B | (–– | ) | (201 | ) | ||||
Class C | (–– | ) | (324 | ) | ||||
Class E | (–– | ) | (1 | ) | ||||
Class I | (–– | ) | (656 | ) | ||||
Class Y | (–– | ) | (73 | ) | ||||
Advisor Class | (–– | ) | (34 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (41,414 | ) | ||||
Class B | (–– | ) | (5,059 | ) | ||||
Class C | (–– | ) | (6,646 | ) | ||||
Class E | (–– | ) | (10 | ) | ||||
Class I | (–– | ) | (3,916 | ) | ||||
Class Y | (–– | ) | (521 | ) | ||||
Advisor Class | (— | ) | (201 | ) | ||||
(— | ) | (64,234 | ) | |||||
Capital share transactions | (50,418 | ) | 123,754 | |||||
Total increase (decrease) | (181,429 | ) | 27,982 | |||||
NET ASSETS | ||||||||
Beginning of period | 542,711 | 514,729 | ||||||
End of period | $ | 361,282 | $ | 542,711 | ||||
Accumulated undistributed net investment income (loss) | $ | 14,154 | $ | (57 | ) | |||
(1)See "Financial Highlights" on pages 105 - 111.
See Accompanying Notes to Financial Statements.
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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 34.70 | $ | 40.58 | $ | 33.58 | $ | 28.31 | $ | 22.30 | $ | 19.89 | $ | 13.20 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 1.05 | 0.60 | 0.31 | 0.10 | (0.03 | ) | (0.03 | ) | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (10.07 | ) | (1.98 | ) | 7.11 | 5.37 | 6.05 | 2.44 | 6.71 | |||||||||||||||
Total from investment operations | (9.02 | ) | (1.38 | ) | 7.42 | 5.47 | 6.02 | 2.41 | 6.73 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.50 | ) | (0.42 | ) | (0.20 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Capital gains | (0.00 | ) | (4.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (4.50 | ) | (0.42 | ) | (0.20 | ) | (0.01 | ) | (0.00 | ) | (0.04 | ) | ||||||||||
Net asset value, end of period | $ | 25.68 | $ | 34.70 | $ | 40.58 | $ | 33.58 | $ | 28.31 | $ | 22.30 | $ | 19.89 | ||||||||||
Total return(1) | - -26.00 | % | -4.52 | % | 22.17 | % | 19.41 | % | 27.02 | % | 12.12 | % | 51.02 | % | ||||||||||
Net assets, end of period (in millions) | $257 | $390 | $389 | $235 | $170 | $79 | $38 | |||||||||||||||||
Ratio of expenses to average net assets | 1.70 | %(2) | 1.58 | % | 1.64 | % | 1.72 | % | 1.79 | % | 1.72 | %(2) | 2.26 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 5.87 | %(2) | 1.43 | % | 0.91 | % | 0.35 | % | - -0.07 | % | - -0.61 | %(2) | 0.18 | % | ||||||||||
Portfolio turnover rate | 47 | % | 65 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 33.35 | $ | 39.14 | $ | 32.40 | $ | 27.32 | $ | 21.66 | $ | 19.36 | $ | 12.93 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.85 | (1) | 0.27 | (1) | 0.09 | (0.11 | ) | (0.17 | ) | (0.09 | ) | (0.07 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (9.63 | )(1) | (1.90 | )(1) | 6.78 | 5.19 | 5.83 | 2.39 | 6.50 | ||||||||||||||
Total from investment operations | (8.78 | ) | (1.63 | ) | 6.87 | 5.08 | 5.66 | 2.30 | 6.43 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.16 | ) | (0.13 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (4.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (4.16 | ) | (0.13 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 24.57 | $ | 33.35 | $ | 39.14 | $ | 32.40 | $ | 27.32 | $ | 21.66 | $ | 19.36 | |||||||||
Total return | - -26.33 | % | - -5.27 | % | 21.24 | % | 18.59 | % | 26.13 | % | 11.88 | % | 49.73 | % | |||||||||
Net assets, end of period (in millions) | $18 | $37 | $52 | $44 | $40 | $32 | $29 | ||||||||||||||||
Ratio of expenses to average net assets | 2.59 | %(2) | 2.35 | % | 2.40 | % | 2.45 | % | 2.53 | % | 2.58 | %(2) | 3.00 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 5.30 | %(2) | 0.68 | % | 0.27 | % | - -0.30 | % | - -0.73 | % | - -1.57 | %(2) | - -0.47 | % | |||||||||
Portfolio turnover rate | 47 | % | 65 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 33.49 | $ | 39.28 | $ | 32.52 | $ | 27.42 | $ | 21.74 | $ | 19.43 | $ | 12.98 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.94 | 0.32 | 0.12 | (0.09 | ) | (0.14 | ) | (0.08 | ) | (0.07 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (9.73 | ) | (1.91 | ) | 6.81 | 5.19 | 5.82 | 2.39 | 6.52 | |||||||||||||||
Total from investment operations | (8.79 | ) | (1.59 | ) | 6.93 | 5.10 | 5.68 | 2.31 | 6.45 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.20 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (4.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (4.20 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 24.70 | $ | 33.49 | $ | 39.28 | $ | 32.52 | $ | 27.42 | $ | 21.74 | $ | 19.43 | ||||||||||
Total return | - -26.25 | % | - -5.16 | % | 21.33 | % | 18.60 | % | 26.13 | % | 11.89 | % | 49.69 | % | ||||||||||
Net assets, end of period (in millions) | $34 | $57 | $65 | $51 | $45 | $27 | $23 | |||||||||||||||||
Ratio of expenses to average net assets | 2.37 | %(1) | 2.26 | % | 2.32 | % | 2.42 | % | 2.51 | % | 2.56 | %(1) | 2.98 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 5.26 | %(1) | 0.78 | % | 0.32 | % | - -0.29 | % | - -0.79 | % | - -1.54 | %(1) | - -0.43 | % | ||||||||||
Portfolio turnover rate | 47 | % | 65 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % |
(1)Annualized.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 34.73 | $ | 40.69 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 1.00 | 0.73 | |||||||
Net realized and unrealized loss on investments | (9.97 | ) | (2.11 | ) | |||||
Total from investment operations | (8.97 | ) | (1.38 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.58 | ) | |||||
Capital gains | (0.00 | ) | (4.00 | ) | |||||
Total distributions | (0.00 | ) | (4.58 | ) | |||||
Net asset value, end of period | $ | 25.76 | $ | 34.73 | |||||
Total return(3) | - -25.83 | % | -4.52 | % | |||||
Net assets, end of period (in thousands) | $71 | $95 | |||||||
Ratio of expenses to average net assets | 1.32 | %(4) | 1.28 | %(4) | |||||
Ratio of net investment income to average net assets | 6.01 | %(4) | 1.78 | %(4) | |||||
Portfolio turnover rate | 47 | % | 65 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY EUROPEAN OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 03-31-08 | ||||||||
Net asset value, beginning of period | $ | 34.80 | $ | 40.73 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.99 | (2) | 0.35 | (2) | |||||
Net realized and unrealized loss on investments | (9.97 | )(2) | (1.61 | )(2) | |||||
Total from investment operations | (8.98 | ) | (1.26 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.67 | ) | |||||
Capital gains | (0.00 | ) | (4.00 | ) | |||||
Total distributions | (0.00 | ) | (4.67 | ) | |||||
Net asset value, end of period | $ | 25.82 | $ | 34.80 | |||||
Total return | - -25.80 | % | -4.24 | % | |||||
Net assets, end of period (in millions) | $48 | $53 | |||||||
Ratio of expenses to average net assets | 1.18 | %(3) | 1.17 | %(3) | |||||
Ratio of net investment income to average net assets | 5.93 | %(3) | 1.44 | %(3) | |||||
Portfolio turnover rate | 47 | % | 65 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 34.75 | $ | 40.61 | $ | 33.60 | $ | 28.33 | $ | 22.30 | $ | 19.89 | $ | 14.88 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 1.07 | 0.61 | 0.44 | 0.18 | 0.09 | (0.02 | ) | (0.04 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (10.07 | ) | (1.91 | ) | 7.05 | 5.34 | 6.00 | 2.43 | 5.12 | ||||||||||||||||
Total from investment operations | (9.00 | ) | (1.30 | ) | 7.49 | 5.52 | 6.09 | 2.41 | 5.08 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.56 | ) | (0.48 | ) | (0.25 | ) | (0.06 | ) | (0.00 | ) | (0.07 | ) | |||||||||||
Capital gains | (0.00 | ) | (4.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (4.56 | ) | (0.48 | ) | (0.25 | ) | (0.06 | ) | (0.00 | ) | (0.07 | ) | |||||||||||
Net asset value, end of period | $ | 25.75 | $ | 34.75 | $ | 40.61 | $ | 33.60 | $ | 28.33 | $ | 22.30 | $ | 19.89 | |||||||||||
Total return | - -25.90 | % | -4.33 | % | 22.38 | % | 19.60 | % | 27.32 | % | 12.12 | % | 34.14 | % | |||||||||||
Net assets, end of period (in millions) | $3 | $4 | $7 | $4 | $4 | $4 | $3 | ||||||||||||||||||
Ratio of expenses to average net assets | 1.46 | %(2) | 1.41 | % | 1.44 | % | 1.55 | % | 1.61 | % | 1.75 | %(2) | 1.51 | %(2) | |||||||||||
Ratio of net investment income (loss) to average net assets | 6.05 | %(2) | 1.60 | % | 1.14 | % | 0.60 | % | 0.53 | % | - -0.71 | %(2) | - -0.58 | %(2) | |||||||||||
Portfolio turnover rate | 47 | % | 65 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 35.07 | $ | 40.96 | $ | 33.88 | $ | 28.55 | $ | 22.48 | $ | 20.03 | $ | 13.34 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 1.38 | 0.92 | 0.94 | 0.35 | (2) | 0.21 | (0.01 | ) | 0.24 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (10.43 | ) | (2.13 | ) | 6.73 | 5.32 | (2) | 5.99 | 2.46 | 6.58 | ||||||||||||||
Total from investment operations | (9.05 | ) | (1.21 | ) | 7.67 | 5.67 | 6.20 | 2.45 | 6.82 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.68 | ) | (0.59 | ) | (0.34 | ) | (0.13 | ) | (0.00 | ) | (0.13 | ) | ||||||||||
Capital gains | (0.00 | ) | (4.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (4.68 | ) | (0.59 | ) | (0.34 | ) | (0.13 | ) | (0.00 | ) | (0.13 | ) | ||||||||||
Net asset value, end of period | $ | 26.02 | $ | 35.07 | $ | 40.96 | $ | 33.88 | $ | 28.55 | $ | 22.48 | $ | 20.03 | ||||||||||
Total return | - -25.81 | % | -4.12 | % | 22.76 | % | 20.00 | % | 27.64 | % | 12.23 | % | 51.12 | % | ||||||||||
Net assets, end of period (in millions) | $1 | $2 | $2 | $2 | $4 | $4 | $4 | |||||||||||||||||
Ratio of expenses to average net assets | 1.24 | %(3) | 1.15 | % | 1.19 | % | 1.25 | % | 1.36 | % | 1.41 | %(3) | 1.96 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 6.17 | %(3) | 1.94 | % | 1.60 | % | 1.13 | % | 0.51 | % | - -0.41 | %(3) | 1.02 | % | ||||||||||
Portfolio turnover rate | 47 | % | 65 | % | 42 | % | 62 | % | 63 | % | 31 | % | 123 | % |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL BALANCED FUND
Portfolio Highlights
On September 30, 2008, Ivy International Balanced Fund had net assets totaling $298,497 (in thousands) invested in a diversified portfolio of:
65.29% | Foreign Common Stocks | |
33.29% | Other Government Securities | |
1.42% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Europe | $ | 68.92 | |||
United Kingdom | $ | 16.78 | |||
Germany | $ | 14.92 | |||
France | $ | 10.83 | |||
Other Europe(1) | $ | 6.01 | |||
Switzerland | $ | 5.70 | |||
Sweden | $ | 4.76 | |||
Netherlands | $ | 4.35 | |||
Poland | $ | 3.53 | |||
Norway | $ | 2.04 | |||
Pacific Basin | $ | 24.57 | |||
Japan | $ | 5.98 | |||
South Korea | $ | 5.45 | |||
Taiwan | $ | 4.90 | |||
Singapore | $ | 3.20 | |||
Malaysia | $ | 2.54 | |||
Other Pacific Basin(2) | $ | 2.50 | |||
North America(3) | $ | 3.52 | |||
Other(4) | $ | 1.57 | |||
Cash and Cash Equivalents | $ | 1.42 |
(1)Includes $0.76 Austria, $0.68 Belgium, $1.18 Finland, $0.37 Greece, $1.94 Italy and $1.08 Spain.
(2)Includes $1.50 Australia, $0.30 China, $0.61 Hong Kong and $0.09 New Zealand.
(3)Includes $0.51 Canada and $3.01 Mexico.
(4)Includes $1.03 Israel and $0.54 Supranational.
Other Government Securities | $ | 33.29 | |||
Financials Stocks | $ | 13.40 | |||
Consumer Discretionary Stocks | $ | 12.81 | |||
Information Technology Stocks | $ | 9.52 | |||
Telecommunication Stocks | $ | 8.87 | |||
Industrials Stocks | $ | 6.67 | |||
Health Care Stocks | $ | 6.46 | |||
Energy Stocks | $ | 4.20 | |||
Miscellaneous Stocks(1) | $ | 3.36 | |||
Cash and Cash Equivalents | $ | 1.42 |
(1)$1.95 Consumer Staples Stocks and $1.41 Materials Stocks.
Quality WeightingsOn September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:
Common Stocks | 65.29 | % | |||
Investment Grade | |||||
AAA | 20.18 | % | |||
AA | 0.10 | % | |||
A | 13.01 | % | |||
Cash and Cash Equivalents | 1.42 | % |
Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.
The Investments of Ivy International Balanced Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | | Shares | Value | ||||
Austria - 0.76% | |||||||
Telekom Austria Aktiengesellschaft (A) | 129 | $ | 2,267 | ||||
Belgium - 0.68% | |||||||
Belgacom SA (A) | 54 | 2,023 | |||||
Canada - 0.47% | |||||||
Biovail Corporation (A) | 149 | 1,418 | |||||
China - 0.30% | |||||||
China Telecom Corporation Limited (A)(B) | 360 | 148 | |||||
China Telecom Corporation Limited (A) | 1,848 | 758 | |||||
906 | |||||||
Finland - 1.18% | |||||||
Stora Enso Oyj, Class R (A) | 105 | 1,025 | |||||
UPM-Kymmene Corporation (A) | 160 | 2,504 | |||||
3,529 | |||||||
France - 7.58% | |||||||
AXA S.A. (A) | 110 | 3,587 | |||||
France Telecom (A) | 221 | 6,191 | |||||
Sanofi-Aventis (A)(C) | 22 | 1,420 | |||||
Sanofi-Aventis (A) | 79 | 5,223 | |||||
THOMSON (A)(D) | 366 | 1,307 | |||||
TOTAL S.A. (A) | 53 | 3,191 | |||||
Vivendi Universal (A) | 55 | 1,714 | |||||
22,633 | |||||||
Germany - 5.32% | |||||||
Bayerische Motoren Werke Aktiengesellschaft (A) | 69 | 2,686 | |||||
Deutsche Post AG (A) | 70 | 1,474 | |||||
Infineon Technologies AG (A)(D) | 355 | 1,989 | |||||
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft, Registered Shares (A) | 17 | 2,604 | |||||
SAP Aktiengesellschaft (A) | 73 | 3,885 | |||||
Siemens AG (A) | 34 | 3,237 | |||||
15,875 | |||||||
Hong Kong - 0.61% | |||||||
Hutchison Whampoa Limited, Ordinary Shares (A) | 239 | 1,836 | |||||
Israel - 1.03% | |||||||
Check Point Software Technologies Ltd. (D) | 136 | 3,080 | |||||
Italy - 1.94% | |||||||
AUTOGRILL S.p.A. (A) | 147 | 1,671 | |||||
Eni S.p.A. (A) | 84 | 2,223 | |||||
UniCredit S.p.A. (A) | 506 | 1,892 | |||||
5,786 | |||||||
Japan - 5.98% | |||||||
AIFUL Corporation (A) | 54 | 419 | |||||
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A) | 321 | 2,799 | |||||
NGK SPARK PLUG CO., LTD. (A) | 207 | 2,015 | |||||
Olympus Corporation (A)(D) | 99 | 2,894 | |||||
Promise Co., Ltd. (A) | 46 | 894 | |||||
Sony Corporation (A) | 62 | 1,897 | |||||
Toyota Motor Corporation (A) | 79 | 3,390 | |||||
USS Co., Ltd. (A) | 55 | 3,528 | |||||
17,836 | |||||||
Netherlands - 3.39% | |||||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 228 | 4,886 | |||||
Koninklijke Philips Electronics N.V., Ordinary Shares (A) | 40 | 1,098 | |||||
Randstad Holding nv (A)(D) | 67 | 1,761 | |||||
Reed Elsevier NV (A) | 159 | 2,362 | |||||
10,107 | |||||||
Norway - 1.64% | |||||||
Aker Solutions ASA (A) | 99 | 1,595 | |||||
Norske Skogindustrier ASA (A)(D) | 163 | 675 | |||||
Telenor ASA (A) | 211 | 2,629 | |||||
4,899 | |||||||
Singapore - 2.02% | |||||||
DBS Group Holdings Ltd (A) | 79 | 942 | |||||
Flextronics International Ltd. (D) | 418 | 2,964 | |||||
Singapore Telecommunications Limited (A) | 931 | 2,128 | |||||
6,034 | |||||||
South Korea - 1.90% | |||||||
Kookmin Bank, ADR | 20 | 902 | |||||
Samsung Electronics Co., Ltd. (A) | 8 | 3,865 | |||||
Samsung Electronics Co., Ltd., GDR (B) | 4 | 896 | |||||
5,663 | |||||||
Spain - 1.08% | |||||||
Telefonica, S.A., ADR | 45 | 3,199 | |||||
Telefonica, S.A., Brazilian Depositary Receipts (A) | 1 | 14 | |||||
3,213 | |||||||
Sweden - 2.03% | |||||||
Niscayah Group AB (A) | 968 | 1,378 | |||||
Securitas AB, Class B (A) | 105 | 1,186 | |||||
Telefonaktiebolaget LM Ericsson, B Shares (A) | 367 | 3,484 | |||||
6,048 | |||||||
Switzerland - 5.70% | |||||||
ACE Limited | 46 | 2,517 | |||||
Adecco S.A. (A) | 93 | 4,033 | |||||
Nestle S.A., Registered Shares (A) | 64 | 2,750 | |||||
Novartis AG, Registered Shares (A) | 76 | 4,013 | |||||
Swiss Reinsurance Company, Registered Shares (A) | 40 | 2,245 | |||||
UBS AG (A)(D) | 85 | 1,457 | |||||
17,015 | |||||||
Taiwan - 4.90% | |||||||
Chunghwa Telecom Co., Ltd., ADR (D) | 138 | 3,267 | |||||
Compal Electronics Inc., GDR (B)(D) | 135 | 483 | |||||
Compal Electronics Inc., GDR (D) | 55 | 198 | |||||
Lite-On Technology Corporation (A) | 1,734 | 1,515 | |||||
Lite-On Technology Corporation, GDR (A) | 261 | 2,207 | |||||
Mega Financial Holding Company (A) | 6,790 | 3,114 | |||||
Taiwan Semiconductor Manufacturing Company Ltd. (A) | 2,293 | 3,844 | |||||
14,628 | |||||||
United Kingdom - 16.78% | |||||||
Aviva plc (A) | 297 | 2,580 | |||||
BAE Systems plc (A) | 93 | 688 | |||||
BP p.l.c. (A) | 424 | 3,535 | |||||
British Sky Broadcasting Group plc (A) | 231 | 1,718 | |||||
Compass Group PLC (A) | 561 | 3,479 | |||||
GlaxoSmithKline plc (A) | 199 | 4,317 | |||||
Group 4 Securicor plc (A) | 898 | 3,246 | |||||
HBOS plc (A) | 156 | 355 | |||||
HSBC Holdings plc (A) | 191 | 3,084 | |||||
Kingfisher plc (A) | 1,775 | 4,230 | |||||
Marks and Spencer Group plc (A)(D) | 263 | 960 | |||||
Old Mutual plc (A) | 1,974 | 2,763 | |||||
Pearson plc (A) | 168 | 1,816 | |||||
Persimmon plc (A) | 601 | 4,373 | |||||
Premier Brands Foods plc (A) | 416 | 559 | |||||
Rentokil Initial plc (A) | 851 | 1,055 | |||||
Royal Bank of Scotland Group plc (The) (A) | 921 | 2,970 | |||||
Royal Dutch Shell plc, Class B (A) | 71 | 2,001 | |||||
tesco plc (A) | 158 | 1,098 | |||||
Unilever PLC (A) | 52 | 1,416 | |||||
Vodafone Group Plc (A) | 1,679 | 3,707 | |||||
Vodafone Group Plc, ADR | 7 | 146 | |||||
50,096 | |||||||
TOTAL COMMON STOCKS - 65.29% | | | | | $ | 194,892 | |
(Cost: $243,816) | |||||||
OTHER GOVERNMENT SECURITIES | | Principal | |||||
Australia - 1.50% | |||||||
New South Wales Treasury Corporation, | |||||||
6.000%, 5-1-12 (E) | AUD4,600 | 3,647 | |||||
Queensland Treasury Corporation, | |||||||
6.000%, 7-14-09 (E) | 1,050 | 829 | |||||
4,476 | |||||||
Canada - 0.04% | |||||||
Province of Ontario, | |||||||
6.250%, 6-16-15 (E) | NZD189 | 123 | |||||
France - 3.25% | |||||||
French Treasury Bond (OAT), | |||||||
4.250%, 10-25-17 (E) | EUR6,920 | 9,695 | |||||
Germany - 9.60% | |||||||
KfW, Frankfurt/Main, Federal Republic of Germany: | |||||||
2.000%, 2-27-09 (E) | CHF3,100 | 2,748 | |||||
3.000%, 12- 4-09 (E) | 3,100 | 2,757 | |||||
0.688%, 8-8-11 (E)(F) | JPY2,410,000 | 22,662 | |||||
6.500%, 11-15-11 (E) | NZD739 | 494 | |||||
28,661 | |||||||
Greece - 0.37% | |||||||
Hellenic Republic Government Bonds, | |||||||
2.125%, 4-10-09 (E) | CHF1,250 | 1,106 | |||||
Malaysia - 2.54% | |||||||
Malaysian Government Bonds: | |||||||
7.000%, 3-15-09 (E) | MYR580 | 171 | |||||
3.756%, 4-28-11 (E) | 8,550 | 2,472 | |||||
3.461%, 7-31-13 (E) | 12,435 | 3,515 | |||||
3.814%, 2-15-17 (E) | 1,955 | 537 | |||||
4.240%, 2-7-18 (E) | 3,110 | 881 | |||||
7,576 | |||||||
Mexico - 3.01% | |||||||
United Mexican States Government Bonds: | |||||||
8.000%, 12-19-13 (E) | MXN34,000 | 3,058 | |||||
7.250%, 12-15-16 (E) | 35,000 | 2,981 | |||||
10.000%, 12-5-24 (E) | 28,500 | 2,958 | |||||
8,997 | |||||||
Netherlands - 0.96% | |||||||
Netherlands Government Bonds, | |||||||
4.500%, 7-15-17 (E) | EUR2,000 | 2,857 | |||||
New Zealand - 0.09% | |||||||
New Zealand Government Bonds, | |||||||
6.000%, 11-15-11 (E) | NZD410 | 274 | |||||
Norway - 0.40% | |||||||
Norway Government Bonds, | |||||||
5.500%, 5-15-09 (E) | NOK6,980 | 1,184 | |||||
Poland - 3.53% | |||||||
Poland Government Bonds: | |||||||
6.000%, 5-24-09 (E) | PLN9,425 | 3,892 | |||||
6.250%, 10-24-15 (E) | 3,250 | 1,372 | |||||
5.750%, 9-23-22 (E) | 12,770 | 5,282 | |||||
10,546 | |||||||
Singapore - 1.18% | |||||||
Singapore Government Bonds, | |||||||
4.375%, 1-15-09 (E) | SGD5,000 | 3,506 | |||||
South Korea - 3.55% | |||||||
South Korea Treasury Bonds: | |||||||
4.750%, 6-10-09 (E) | KRW1,100,000 | 907 | |||||
5.250%, 9-10-12 (E) | 4,100,000 | 3,338 | |||||
5.500%, 9-10-17 (E) | 4,000,000 | 3,237 | |||||
5.250%, 3-10-27 (E) | 4,053,000 | 3,126 | |||||
10,608 | |||||||
Supranational - 0.54% | |||||||
European Investment Bank: | |||||||
0.685%, 9-21-11 (E)(F) | JPY110,000 | 1,034 | |||||
6.500%, 9-10-14 (E) | NZD861 | 575 | |||||
1,609 | |||||||
Sweden - 2.73% | |||||||
Sweden Government Bonds: | |||||||
5.000%, 1-28-09 (E) | SEK53,050 | 7,676 | |||||
4.000%, 12-1-09 (E) | 1,970 | 285 | |||||
Swedish Export Credit Corporation, | |||||||
7.625%, 6-30-14 (E) | NZD255 | 179 | |||||
8,140 | |||||||
TOTAL OTHER GOVERNMENT SECURITIES - 33.29% | | | $ | 99,358 | |||
(Cost: $102,809) | |||||||
SHORT-TERM SECURITIES | | ||||||
Commercial Paper | |||||||
Automatic Data Processing Inc., | |||||||
2.000%, 10-1-08 | $1,374 | 1,374 | |||||
TOTAL SHORT-TERM SECURITIES - 0.46% | | | | | $ | 1,374 | |
(Cost: $1,374) | |||||||
TOTAL INVESTMENT SECURITIES - 99.04% | | | | | $ | 295,624 | |
(Cost: $347,999) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.96% | | | 2,873 | ||||
NET ASSETS - 100.00% | | | | | $ | 298,497 | |
Notes to Schedule of Investments | |||||||||||
The following forward currency contracts were outstanding at September 30, 2008: | |||||||||||
Type | Currency | Currency Amount Covered by Contract | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||
Sell | Euro | 416 | 9-23-09 | $ | 4 | $ | –– | ||||
Sell | Euro | 926 | 9-30-09 | 35 | –– | ||||||
Sell | Mexican Peso | 105,500 | 2-11-09 | –– | 121 | ||||||
Sell | South Korean Won | 9,182,050 | 2-13-09 | 2,000 | –– | ||||||
Sell | South Korean Won | 521,950 | 2-25-09 | 115 | –– | ||||||
Sell | South Korean Won | 521,021 | 2-27-09 | 116 | –– | ||||||
Sell | South Korean Won | 518,210 | 3- 4-09 | 118 | –– | ||||||
Sell | South Korean Won | 1,100,000 | 3-27-09 | 206 | –– | ||||||
Sell | South Korean Won | 430,416 | 4-1-09 | 82 | –– | ||||||
Sell | South Korean Won | 550,000 | 4-6-09 | 106 | –– | ||||||
Buy | Swedish Krona | 124,600 | 11-12-08 | –– | 899 | ||||||
Buy | Swedish Krona | 4,000 | 9-23-09 | –– | 15 | ||||||
Buy | Swiss Franc | 7,723 | 2-11-09 | –– | 65 | ||||||
Buy | Swiss Franc | 1,136 | 3-27-09 | –– | 102 | ||||||
Buy | Swiss Franc | 445 | 4-1-09 | –– | 40 | ||||||
Buy | Swiss Franc | 571 | 4-6-09 | –– | 52 | ||||||
$ | 2,782 | $ | 1,294 | ||||||||
(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, 2008, the total value of these securities amounted to $1,527 or 0.51% of net assets. | |||||||||||
(C)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, 2008, the total value of this security amounted to $1,420 or 0.48% of net assets. | |||||||||||
(D)No dividends were paid during the preceding 12 months. | |||||||||||
(E)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, CHF - Swiss Franc, EUR - Euro, JPY - Japanese Yen, KRW - South Korean Won, MXN - Mexican Peso, MYR - Malaysian Ringgit, NOK - Norwegian Krone, NZD - New Zealand Dollar, PLN - Polish Zloty, SEK - Swedish Krona and SGD - Singapore Dollar) | |||||||||||
(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008. | |||||||||||
Securities with an aggregate market value of $173,602 representing 58.16% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. | |||||||||||
The following acronyms are used throughout this portfolio: ADR = American Depositary Receipts GDR = Global Depositary Receipts | |||||||||||
Market Sector Diversification | |||
(as a % of net assets) | |||
Other Government Securities | 33.29% | ||
Financials | 13.40% | ||
Consumer Discretionary | 12.81% | ||
Information Technology | 9.52% | ||
Telecommunication Services | 8.87% | ||
Industrials | 6.67% | ||
Health Care | 6.46% | ||
Energy | 4.20% | ||
Consumer Staples | 1.95% | ||
Materials | 1.41% | ||
Other+ | 1.42% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY INTERNATIONAL BALANCED FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $347,999) | $ | 295,624 | ||
Unrealized appreciation on forward currency contracts | 2,782 | |||
Receivables: | ||||
Dividends and interest | 2,739 | |||
Fund shares sold | 494 | |||
Prepaid and other assets | 36 | |||
Total assets | 301,675 | |||
LIABILITIES | ||||
Unrealized depreciation on forward currency contracts | 1,294 | |||
Payable to Fund shareholders | 893 | |||
Due to custodian | 289 | |||
Payable for investment securities purchased | 218 | |||
Accrued management fee | 187 | |||
Accrued shareholder servicing | 112 | |||
Accrued distribution and service fees | 91 | |||
Accrued accounting services fee | 10 | |||
Other | 84 | |||
Total liabilities | 3,178 | |||
Total net assets | $ | 298,497 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 337,612 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 3,153 | |||
Accumulated undistributed net realized gain on investment transactions | 8,784 | |||
Net unrealized depreciation in value of investments | (51,052 | ) | ||
Net assets applicable to outstanding units of capital | $ | 298,497 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $13.45 | |||
Class B | $13.41 | |||
Class C | $13.41 | |||
Class E | $13.43 | |||
Class I | $13.47 | |||
Class Y | $13.46 | |||
Capital shares outstanding: | ||||
Class A | 14,986 | |||
Class B | 781 | |||
Class C | 2,556 | |||
Class E | 68 | |||
Class I | 3,647 | |||
Class Y | 156 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL BALANCED FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $792) | $ | 5,855 | ||
Interest and amortization (net of foreign withholding taxes of $98) | 2,293 | |||
Total income | 8,148 | |||
Expenses: | ||||
Investment management fee | 1,274 | |||
Distribution and service fees: | ||||
Class A | 315 | |||
Class B | 66 | |||
Class C | 211 | |||
Class E | 1 | |||
Class Y | 4 | |||
Shareholder servicing: | ||||
Class A | 348 | |||
Class B | 30 | |||
Class C | 50 | |||
Class E | 5 | |||
Class I | 39 | |||
Class Y | 3 | |||
Custodian fees | 74 | |||
Accounting services fee | 65 | |||
Audit fees | 21 | |||
Legal fees | 3 | |||
Other | 114 | |||
Total | 2,623 | |||
Less expenses in excess of limit | (2 | ) | ||
Total expenses | 2,621 | |||
Net investment income | 5,527 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net gain on securities | 2,965 | |||
Realized net gain on foreign currency transactions | 1,306 | |||
Realized net gain on investments | 4,271 | |||
Unrealized depreciation in value of securities during the period | (69,686 | ) | ||
Unrealized depreciation in value of forward currency contracts during the period | (1,334 | ) | ||
Unrealized depreciation in value of investments during the period | (71,020 | ) | ||
Net loss on investments | (66,749 | ) | ||
Net decrease in net assets resulting from operations | $ | (61,222 | ) | |
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 5,527 | $ | 6,571 | ||||
Realized net gain on investments | 4,271 | 17,757 | ||||||
Unrealized depreciation | (71,020 | ) | (18,023 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (61,222 | ) | 6,305 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (5,167 | ) | (8,021 | ) | ||||
Class B | (229 | ) | (300 | ) | ||||
Class C | (744 | ) | (979 | ) | ||||
Class E | (17 | ) | (12 | ) | ||||
Class I | (1,154 | ) | (888 | ) | ||||
Class Y | (55 | ) | (66 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (6,161 | ) | ||||
Class B | (–– | ) | (324 | ) | ||||
Class C | (–– | ) | (1,037 | ) | ||||
Class E | (–– | ) | (13 | ) | ||||
Class I | (–– | ) | (766 | ) | ||||
Class Y | (— | ) | (51 | ) | ||||
(7,366 | ) | (18,618 | ) | |||||
Capital share transactions | 2,418 | 98,036 | ||||||
Total increase (decrease) | (66,170 | ) | 85,723 | |||||
NET ASSETS | ||||||||
Beginning of period | 364,667 | 278,944 | ||||||
End of period | $ | 298,497 | $ | 364,667 | ||||
Accumulated undistributed net investment income | $ | 3,153 | $ | 3,686 | ||||
(1)See "Financial Highlights" on pages 125 - 130.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 9-30-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.36 | $ | 16.81 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 11.33 | $ | 8.72 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.25 | 0.37 | 0.24 | (1) | 0.29 | 0.22 | 0.09 | 0.21 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.84 | ) | 0.14 | 2.36 | (1) | 1.14 | 1.69 | 1.83 | 2.40 | |||||||||||||||
Total from investment operations | (2.59 | ) | 0.51 | 2.60 | 1.43 | 1.91 | 1.92 | 2.61 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.55 | ) | (0.43 | ) | (0.36 | ) | (0.28 | ) | (0.18 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.32 | ) | (0.96 | ) | (0.94 | ) | (0.91 | ) | (0.35 | ) | (0.18 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 13.45 | $ | 16.36 | $ | 16.81 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 11.33 | ||||||||||
Total return(2) | - -16.06 | % | 2.84 | % | 17.48 | % | 10.14 | % | 14.81 | % | 17.05 | % | 29.93 | % | ||||||||||
Net assets, end of period (in millions) | $202 | $260 | $235 | $112 | $97 | $60 | $46 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.38 | %(3) | 1.33 | % | 1.38 | % | 1.45 | % | 1.42 | % | 1.54 | %(3)(4) | 1.67 | % | ||||||||||
Ratio of net investment income to average net assets including expense waiver | 3.11 | %(3) | 2.11 | % | 1.52 | % | 1.94 | % | 1.71 | % | 1.43 | %(3)(4) | 2.06 | % | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.38 | %(3)(5) | 1.33 | %(5) | 1.38 | %(5) | 1.45 | %(5) | 1.42 | %(5) | 1.60 | %(3)(4) | 1.71 | % | ||||||||||
Ratio of net investment income to average net assets excluding expense waiver | 3.11 | %(3)(5) | 2.11 | %(5) | 1.52 | %(5) | 1.94 | %(5) | 1.71 | %(5) | 1.37 | %(3)(4) | 2.02 | % | ||||||||||
Portfolio turnover rate | 9 | % | 24 | % | 22 | % | 27 | % | 16 | % | 15 | % | 39 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.31 | $ | 16.77 | $ | 15.11 | $ | 14.59 | $ | 13.04 | $ | 12.34 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.14 | 0.20 | 0.07 | (2) | 0.08 | 0.03 | (2) | 0.19 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (2.79 | ) | 0.14 | 2.37 | (2) | 1.18 | 1.70 | (2) | 0.69 | ||||||||||||
Total from investment operations | (2.65 | ) | 0.34 | 2.44 | 1.26 | 1.73 | 0.88 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.25 | ) | (0.39 | ) | (0.27 | ) | (0.19 | ) | (0.11 | ) | (0.18 | ) | |||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||
Total distributions | (0.25 | ) | (0.80 | ) | (0.78 | ) | (0.74 | ) | (0.18 | ) | (0.18 | ) | |||||||||
Net asset value, end of period | $ | 13.41 | $ | 16.31 | $ | 16.77 | $ | 15.11 | $ | 14.59 | $ | 13.04 | |||||||||
Total return | - -16.42 | % | 1.85 | % | 16.38 | % | 8.93 | % | 13.37 | % | 7.18 | % | |||||||||
Net assets, end of period (in thousands) | $10,478 | $13,152 | $12,056 | $5,548 | $3,049 | $225 | |||||||||||||||
Ratio of expenses to average net assets | 2.33 | %(3) | 2.28 | % | 2.35 | % | 2.59 | % | 2.64 | % | 3.01 | %(3) | |||||||||
Ratio of net investment income to average net assets | 2.17 | %(3) | 1.15 | % | 0.46 | % | 0.73 | % | 0.20 | % | 1.09 | %(3) | |||||||||
Portfolio turnover rate | 9 | % | 24 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.33 | $ | 16.78 | $ | 15.12 | $ | 14.60 | $ | 13.04 | $ | 12.34 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.18 | 0.24 | 0.11 | (2) | 0.11 | 0.07 | (2) | 0.19 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (2.83 | ) | 0.15 | 2.37 | (2) | 1.19 | 1.69 | (2) | 0.69 | ||||||||||||
Total from investment operations | (2.65 | ) | 0.39 | 2.48 | 1.30 | 1.76 | 0.88 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.27 | ) | (0.43 | ) | (0.31 | ) | (0.23 | ) | (0.13 | ) | (0.18 | ) | |||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||
Total distributions | (0.27 | ) | (0.84 | ) | (0.82 | ) | (0.78 | ) | (0.20 | ) | (0.18 | ) | |||||||||
Net asset value, end of period | $ | 13.41 | $ | 16.33 | $ | 16.78 | $ | 15.12 | $ | 14.60 | $ | 13.04 | |||||||||
Total return | - -16.42 | % | 2.14 | % | 16.64 | % | 9.21 | % | 13.58 | % | 7.18 | % | |||||||||
Net assets, end of period (in thousands) | $34,284 | $42,246 | $29,921 | $9,422 | $3,968 | $307 | |||||||||||||||
Ratio of expenses to average net assets | 2.09 | %(3) | 2.04 | % | 2.12 | % | 2.29 | % | 2.44 | % | 2.86 | %(3) | |||||||||
Ratio of net investment income to average net assets | 2.39 | %(3) | 1.34 | % | 0.70 | % | 0.98 | % | 0.44 | % | 1.13 | %(3) | |||||||||
Portfolio turnover rate | 9 | % | 24 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.33 | $ | 16.85 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.20 | (2) | 0.17 | (2) | |||||
Net realized and unrealized gain (loss) on investments | (2.82 | )(2) | 0.18 | (2) | |||||
Total from investment operations | (2.62 | ) | 0.35 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.28 | ) | (0.46 | ) | |||||
Capital gains | (0.00 | ) | (0.41 | ) | |||||
Total distributions | (0.28 | ) | (0.87 | ) | |||||
Net asset value, end of period | $ | 13.43 | $ | 16.33 | |||||
Total return (3) | - -16.25 | % | 1.92 | % | |||||
Net assets, end of period (in millions) | $1 | $1 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.87 | %(4) | 2.23 | %(4) | |||||
Ratio of net investment income to average net assets including expense waiver | 2.54 | %(4) | 1.00 | %(4) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.24 | %(4) | 2.23 | %(4)(5) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 2.17 | %(4) | 1.00 | %(4)(5) | |||||
Portfolio turnover rate | 9 | % | 24 | %(6) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL BALANCED FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.38 | $ | 16.86 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.26 | (2) | 0.30 | (2) | |||||
Net realized and unrealized gain (loss) on investments | (2.82 | )(2) | 0.23 | (2) | |||||
Total from investment operations | (2.56 | ) | 0.53 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.35 | ) | (0.60 | ) | |||||
Capital gains | (0.00 | ) | (0.41 | ) | |||||
Total distributions | (0.35 | ) | (1.01 | ) | |||||
Net asset value, end of period | $ | 13.47 | $ | 16.38 | |||||
Total return | - -15.88 | % | 2.99 | % | |||||
Net assets, end of period (in millions) | $49 | $45 | |||||||
Ratio of expenses to average net assets | 0.98 | %(3) | 0.98 | %(3) | |||||
Ratio of net investment income to average net assets | 3.43 | %(3) | 2.14 | %(3) | |||||
Portfolio turnover rate | 9 | % | 24 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.38 | $ | 16.82 | $ | 15.15 | $ | 14.63 | $ | 13.07 | $ | 12.34 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.34 | 0.39 | 0.25 | (2) | 0.29 | (2) | 0.24 | (2) | 0.21 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (2.94 | ) | 0.14 | 2.37 | (2) | 1.14 | (2) | 1.67 | (2) | 0.70 | |||||||||||
Total from investment operations | (2.60 | ) | 0.53 | 2.62 | 1.43 | 1.91 | 0.91 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.32 | ) | (0.56 | ) | (0.44 | ) | (0.36 | ) | (0.28 | ) | (0.18 | ) | |||||||||
Capital gains | (0.00 | ) | (0.41 | ) | (0.51 | ) | (0.55 | ) | (0.07 | ) | (0.00 | ) | |||||||||
Total distributions | (0.32 | ) | (0.97 | ) | (0.95 | ) | (0.91 | ) | (0.35 | ) | (0.18 | ) | |||||||||
Net asset value, end of period | $ | 13.46 | $ | 16.38 | $ | 16.82 | $ | 15.15 | $ | 14.63 | $ | 13.07 | |||||||||
Total return | - -16.07 | % | 2.96 | % | 17.61 | % | 10.18 | % | 14.84 | % | 7.47 | % | |||||||||
Net assets, end of period (in thousands) | $2,102 | $3,433 | $1,665 | $662 | $397 | $185 | |||||||||||||||
Ratio of expenses to average net assets | 1.30 | %(3) | 1.26 | % | 1.24 | % | 1.41 | % | 1.40 | % | 1.79 | %(3) | |||||||||
Ratio of net investment income to average net assets | 3.39 | %(3) | 2.06 | % | 1.64 | % | 1.99 | % | 1.72 | % | 2.00 | %(3) | |||||||||
Portfolio turnover rate | 9 | % | 24 | % | 22 | % | 27 | % | 16 | % | 15 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL CORE EQUITY FUND
Portfolio Highlights
On September 30, 2008, Ivy International Core Equity Fund had net assets totaling $291,622
(in thousands) invested in a diversified portfolio of:
85.11% | Foreign Common Stocks | |
11.50% | Cash and Cash Equivalents | |
3.39% | Foreign Preferred Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsEurope | $ | 62.34 | |||
United Kingdom | $ | 16.31 | |||
France | $ | 11.09 | |||
Switzerland | $ | 9.84 | |||
Germany | $ | 7.83 | |||
Other Europe(1) | $ | 7.00 | |||
Norway | $ | 5.63 | |||
Netherlands | $ | 4.64 | |||
Pacific Basin | $ | 22.42 | |||
Japan | $ | 15.05 | |||
Other Pacific Basin(2) | $ | 7.37 | |||
Cash and Cash Equivalents | $ | 11.50 | |||
Other(3) | $ | 3.74 |
(1)Includes $1.23 Finland, $1.03 Ireland, $1.19 Italy, $2.14 Spain and $1.41 Sweden.
(2)Includes $1.52 Australia, $1.11 China, $2.39 Hong Kong and $2.35 Singapore.
(3)Includes $1.22 Bahamas/Caribbean, $1.31 North America and $1.21 South America.
Consumer Staples Stocks | $ | 16.40 | |||
Industrials Stocks | $ | 15.60 | |||
Financials Stocks | $ | 14.85 | |||
Cash and Cash Equivalents | $ | 11.50 | |||
Telecommunication Services Stocks | $ | 8.81 | |||
Energy Stocks | $ | 7.19 | |||
Consumer Discretionary Stocks | $ | 6.71 | |||
Materials Stocks | $ | 5.78 | |||
Health Care Stocks | $ | 5.74 | |||
Information Technology Stocks | $ | 5.49 | |||
Utilities Stocks | $ | 1.93 |
The Investments of Ivy International Core Equity Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | | Shares | Value | ||||
Australia - 1.52% | |||||||
Telstra Corporation Limited (A) | 1,319 | $ | 4,426 | ||||
Brazil - 1.21% | |||||||
Petroleo Brasileiro S.A. - Petrobras, ADR | 81 | 3,538 | |||||
Canada - 1.31% | |||||||
Shoppers Drug Mart Corporation (A) | 79 | 3,819 | |||||
Cayman Islands - 1.22% | |||||||
Mindray Medical International Limited, ADR | 106 | 3,562 | |||||
China - 1.11% | |||||||
China Construction Bank Corporation (A)(B) | 4,856 | 3,240 | |||||
Finland - 1.23% | |||||||
Nokia OYJ (A) | 193 | 3,591 | |||||
France - 11.09% | |||||||
ALSTOM (A) | 40 | 3,028 | |||||
AXA S.A. (A) | 151 | 4,953 | |||||
France Telecom (A) | 115 | 3,228 | |||||
Publicis Groupe S.A. (A) | 123 | 3,878 | |||||
Schneider Electric SA (A) | 37 | 3,204 | |||||
Societe Generale (A) | 53 | 4,780 | |||||
TOTAL S.A. (A) | 85 | 5,167 | |||||
Vivendi Universal (A) | 131 | 4,107 | |||||
32,345 | |||||||
Germany - 4.44% | |||||||
Bayer Aktiengesellschaft (A) | 80 | 5,908 | |||||
Beiersdorf Aktiengesellschaft (A) | 58 | 3,701 | |||||
Deutsche Telekom AG, Registered Shares (A) | 220 | 3,345 | |||||
12,954 | |||||||
Hong Kong - 2.39% | |||||||
Cheung Kong (Holdings) Limited (A) | 333 | 3,773 | |||||
CNOOC Limited (A) | 2,837 | 3,187 | |||||
6,960 | |||||||
Ireland - 1.03% | |||||||
Allied Irish Banks, p.l.c. (A) | 368 | 3,004 | |||||
Italy - 1.19% | |||||||
UniCredit S.p.A. (A) | 928 | 3,472 | |||||
Japan - 15.05% | |||||||
Central Japan Railway Company (A) | 1 | 4,809 | |||||
Chiyoda Corporation (A) | 488 | 3,606 | |||||
Japan Tobacco Inc. (A) | 1 | 4,334 | |||||
KOSE Corporation (A) | 138 | 3,840 | |||||
Mitsubishi Electric Corporation (A) | 629 | 4,244 | |||||
Mitsui & Co., Ltd. (A) | 372 | 4,618 | |||||
Nintendo Co., Ltd. (A) | 15 | 6,320 | |||||
Nissin Kogyo Co., Ltd. (A) | 402 | 5,308 | |||||
Sumitomo Corporation (A)(B) | 347 | 3,235 | |||||
Toyota Motor Corporation (A) | 84 | 3,570 | |||||
43,884 | |||||||
Netherlands - 4.64% | |||||||
ASML Holding N.V., Ordinary Shares (A) | 174 | 3,048 | |||||
Heineken N.V. (A) | 174 | 6,972 | |||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 164 | 3,519 | |||||
13,539 | |||||||
Norway - 5.63% | |||||||
Aker Solutions ASA (A) | 236 | 3,828 | |||||
Cermaq ASA (A) | 395 | 2,568 | |||||
Orkla ASA (A) | 516 | 4,750 | |||||
SeaDrill Limited (A) | 137 | 2,828 | |||||
Songa Offshore ASA (A)(B) | 257 | 2,448 | |||||
16,422 | |||||||
Singapore - 2.35% | |||||||
DBS Group Holdings Ltd (A) | 315 | 3,754 | |||||
Singapore Telecommunications Limited (A) | 1,357 | 3,102 | |||||
6,856 | |||||||
Spain - 2.14% | |||||||
Telefonica, S.A. (A) | 263 | 6,247 | |||||
Sweden - 1.41% | |||||||
Svenska Cellulosa Aktiebolaget SCA (publ), Class B (A) | 389 | 4,120 | |||||
Switzerland - 9.84% | |||||||
EFG International (A)(B) | 112 | 3,221 | |||||
Nestle S.A., Registered Shares (A) | 234 | 10,096 | |||||
Roche Holdings AG, Genussschein (A) | 53 | 8,275 | |||||
Syngenta AG (A) | 19 | 4,039 | |||||
TEMENOS Group AG (A)(B) | 160 | 3,053 | |||||
28,684 | |||||||
United Kingdom - 16.31% | |||||||
BAE Systems plc (A)(C) | 100 | 737 | |||||
BAE Systems plc (A) | 940 | 6,926 | |||||
Barclays PLC (A) | 804 | 4,779 | |||||
British American Tobacco p.l.c. (A) | 119 | 3,881 | |||||
Informa plc (A) | 479 | 2,701 | |||||
National Grid plc (A) | 442 | 5,615 | |||||
Prudential plc (A) | 523 | 4,772 | |||||
Serco Group plc (A) | 525 | 3,427 | |||||
Tanfield Group PLC (A)(B) | 2,233 | 354 | |||||
Unilever PLC (A) | 228 | 6,194 | |||||
Vodafone Group Plc (A) | 2,428 | 5,362 | |||||
Xstrata plc (A) | 90 | 2,800 | |||||
47,548 | |||||||
TOTAL COMMON STOCKS - 85.11% | | | | | $ | 248,211 | |
(Cost: $308,622) | |||||||
PREFERRED STOCKS | | ||||||
Germany | |||||||
Fresenius AG (A) | 68 | 4,895 | |||||
Henkel AG & Co. KGaA (A) | 136 | 4,985 | |||||
TOTAL PREFERRED STOCKS - 3.39% | | | | | $ | 9,880 | |
(Cost: $11,254) | |||||||
SHORT-TERM SECURITIES | Principal | |||||
---|---|---|---|---|---|---|
Commercial Paper - 6.23% | ||||||
Danaher Corporation, | ||||||
1.800%, 10-6-08 | $ | 2,000 | 1,999 | |||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | ||||||
2.190%, 10-17-08 | 2,000 | 1,998 | ||||
Shell International Finance B.V. and Royal Dutch Shell plc (Royal Dutch Shell plc), | ||||||
2.100%, 10-9-08 | 3,000 | 2,999 | ||||
Walgreen Co., | ||||||
1.000%, 10-1-08 | 6,168 | 6,168 | ||||
Walt Disney Company (The), | ||||||
2.000%, 10-22-08 | 5,000 | 4,994 | ||||
18,158 | ||||||
United States Government Obligations - 1.37% | ||||||
United States Treasury Bills, | ||||||
0.100%, 10-9-08 | 4,000 | 4,000 | ||||
TOTAL SHORT-TERM SECURITIES - 7.60% | $ | 22,158 | ||||
(Cost: $22,158) | ||||||
TOTAL INVESTMENT SECURITIES - 96.10% | $ | 280,249 | ||||
(Cost: $342,034) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 3.90% | | | 11,373 | |||
NET ASSETS - 100.00% | $ | 291,622 | ||||
Notes to Schedule of Investments | |||||||||||
The following forward currency contracts were outstanding at September 30, 2008: | |||||||||||
Type | Currency | Currency Amount Covered by Contract | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||
Buy | Japanese Yen | 672,500 | 9-25-09 | $ | 30 | $ | - | ||||
Buy | Singapore Dollar | 10,020 | 12-9-08 | - | 393 | ||||||
$ | 30 | $ | 393 | ||||||||
(A)Listed on an exchange outside the United States. |
(B)No dividends were paid during the preceding 12 months. |
(C)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, 2008, the total value of this security amounted to 0.25% of net assets. |
Securities with an aggregate market value of $247,171, representing 84.76% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees. |
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts |
Market Sector Diversification | |||
(as a % of net assets) | |||
Consumer Staples | 16.40% | ||
Industrials | 15.60% | ||
Financials | 14.85% | ||
Telecommunication Services | 8.81% | ||
Energy | 7.19% | ||
Consumer Discretionary | 6.71% | ||
Materials | 5.78% | ||
Health Care | 5.74% | ||
Information Technology | 5.49% | ||
Utilities | 1.93% | ||
Other+ | 11.50% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY INTERNATIONAL CORE EQUITY FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $342,034) | $ | 280,249 | ||
Receivables: | ||||
Investment securities sold | 11,583 | |||
Dividends and interest | 1,238 | |||
Fund shares sold | 1,143 | |||
Unrealized appreciation on forward currency contracts | 30 | |||
Prepaid and other assets | 49 | |||
Total assets | 294,292 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 875 | |||
Payable for investment securities purchased | 561 | |||
Unrealized depreciation on forward currency contracts | 393 | |||
Due to custodian | 328 | |||
Accrued management fee | 223 | |||
Accrued shareholder servicing | 131 | |||
Accrued distribution and service fees | 83 | |||
Accrued accounting services fee | 6 | |||
Accrued administrative fee | 3 | |||
Other | 67 | |||
Total liabilities | 2,670 | |||
Total net assets | $ | 291,622 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 359,212 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 3,911 | |||
Accumulated net realized loss on investment transactions | (9,283 | ) | ||
Net unrealized depreciation in value of investments | (62,218 | ) | ||
Net assets applicable to outstanding units of capital | $ | 291,622 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $13.30 | |||
Class B | $12.18 | |||
Class C | $12.18 | |||
Class E | $13.22 | |||
Class I | $13.40 | |||
Class Y | $13.38 | |||
Capital shares outstanding: | ||||
Class A | 15,292 | |||
Class B | 1,039 | |||
Class C | 3,294 | |||
Class E | 78 | |||
Class I | 1,722 | |||
Class Y | 844 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL CORE EQUITY FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $578) | $ | 5,965 | ||
Interest and amortization | 286 | |||
Total income | 6,251 | |||
Expenses: | ||||
Investment management fee | 1,458 | |||
Distribution and service fees: | ||||
Class A | 299 | |||
Class B | 79 | |||
Class C | 240 | |||
Class E | 2 | |||
Class Y | 15 | |||
Shareholder servicing: | ||||
Class A | 380 | |||
Class B | 34 | |||
Class C | 62 | |||
Class E | 7 | |||
Class I | 20 | |||
Class Y | 9 | |||
Accounting services fee | 39 | |||
Custodian fees | 37 | |||
Audit fees | 19 | |||
Administrative fee | 17 | |||
Legal fees | 3 | |||
Other | 108 | |||
Total expenses | 2,828 | |||
Less expenses in excess of limit | (2 | ) | ||
Total expenses | 2,826 | |||
Net investment income | 3,425 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (16,362 | ) | ||
Realized net gain on forward currency contracts | 57 | |||
Realized net loss on foreign currency transactions | (39 | ) | ||
Realized net loss on investments | (16,344 | ) | ||
Unrealized depreciation in value of securities during the period | (70,439 | ) | ||
Unrealized depreciation in value of forward currency contracts during the period | (700 | ) | ||
Unrealized depreciation in value of investments during the period | (71,139 | ) | ||
Net loss on investments | (87,483 | ) | ||
Net decrease in net assets resulting from operations | $ | (84,058 | ) | |
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 3,425 | $ | 1,391 | ||||
Realized net gain (loss) on investments | (16,344 | ) | 19,374 | |||||
Unrealized depreciation | (71,139 | ) | (12,793 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (84,058 | ) | 7,972 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (976 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (1 | ) | ||||
Class I | (–– | ) | (142 | ) | ||||
Class Y | (–– | ) | (36 | ) | ||||
Advisor Class | (–– | ) | (–– | )* | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (16,690 | ) | ||||
Class B | (–– | ) | (1,367 | ) | ||||
Class C | (–– | ) | (3,600 | ) | ||||
Class E | (–– | ) | (71 | ) | ||||
Class I | (–– | ) | (1,288 | ) | ||||
Class Y | (–– | ) | (471 | ) | ||||
Advisor Class | (–– | ) | (–– | )* | ||||
(–– | ) | (24,642 | ) | |||||
Capital share transactions | 58,521 | 118,394 | ||||||
Total increase (decrease) | (25,537 | ) | 101,724 | |||||
NET ASSETS | ||||||||
Beginning of period | 317,159 | 215,435 | ||||||
End of period | $ | 291,622 | $ | 317,159 | ||||
Accumulated undistributed net investment income | $ | 3,911 | $ | 525 | ||||
*Not shown due to rounding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 17.11 | $ | 17.63 | $ | 15.73 | $ | 11.61 | $ | 10.14 | $ | 9.73 | $ | 7.65 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.10 | 0.10 | (1) | (0.06 | ) | (0.02 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (3.96 | ) | 0.98 | 2.59 | (1) | 4.18 | 1.49 | 0.42 | 2.10 | |||||||||||||||
Total from investment operations | (3.81 | ) | 1.08 | 2.69 | 4.12 | 1.47 | 0.41 | 2.08 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.09 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.51 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.60 | ) | (0.79 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 13.30 | $ | 17.11 | $ | 17.63 | $ | 15.73 | $ | 11.61 | $ | 10.14 | $ | 9.73 | ||||||||||
Total return(2) | - -22.27 | % | 5.39 | % | 17.35 | % | 35.49 | % | 14.50 | % | 4.21 | % | 27.19 | % | ||||||||||
Net assets, end of period (in millions) | $204 | $222 | $161 | $67 | $17 | $10 | $9 | |||||||||||||||||
Ratio of expenses to average net assets | 1.56 | %(3) | 1.53 | % | 1.56 | % | 1.82 | % | 1.99 | % | 2.16 | %(3) | 2.28 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 2.09 | %(3) | 0.65 | % | 0.63 | % | 0.14 | % | 0.09 | % | - -0.41 | %(3) | - -0.19 | % | ||||||||||
Portfolio turnover rate | 44 | % | 101 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.74 | $ | 16.31 | $ | 14.67 | $ | 10.91 | $ | 9.60 | $ | 9.24 | $ | 7.32 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.10 | (0.02 | ) | (0.00 | )(1) | (0.12 | ) | (0.08 | ) | (0.03 | ) | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (3.66 | ) | 0.88 | 2.37 | (1) | 3.88 | 1.39 | 0.39 | 2.00 | |||||||||||||||
Total from investment operations | (3.56 | ) | 0.86 | 2.37 | 3.76 | 1.31 | 0.36 | 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 | ) | (1.43 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.43 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 12.18 | $ | 15.74 | $ | 16.31 | $ | 14.67 | $ | 10.91 | $ | 9.60 | $ | 9.24 | ||||||||||
Total return | - -22.62 | % | 4.56 | % | 16.39 | % | 34.46 | % | 13.65 | % | 3.90 | % | 26.23 | % | ||||||||||
Net assets, end of period (in millions) | $13 | $16 | $17 | $15 | $20 | $24 | $25 | |||||||||||||||||
Ratio of expenses to average net assets | 2.43 | %(2) | 2.35 | % | 2.35 | % | 2.62 | % | 2.76 | % | 2.91 | %(2) | 2.95 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.25 | %(2) | - -0.09 | % | - -0.03 | % | - -0.41 | % | - -0.58 | % | - -1.20 | %(2) | - -0.82 | % | ||||||||||
Portfolio turnover rate | 44 | % | 101 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 15.72 | $ | 16.30 | $ | 14.65 | $ | 10.90 | $ | 9.59 | $ | 9.23 | $ | 7.32 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.11 | (0.00 | )(1) | (0.01 | )(1) | (0.02 | ) | (0.07 | ) | (0.03 | ) | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (3.65 | ) | 0.88 | (1) | 2.39 | (1) | 3.77 | 1.38 | 0.39 | 1.99 | ||||||||||||||
Total from investment operations | (3.54 | ) | 0.88 | 2.38 | 3.75 | 1.31 | 0.36 | 1.91 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.46 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.46 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 12.18 | $ | 15.72 | $ | 16.30 | $ | 14.65 | $ | 10.90 | $ | 9.59 | $ | 9.23 | ||||||||||
Total return | - -22.52 | % | 4.68 | % | 16.48 | % | 34.40 | % | 13.66 | % | 3.90 | % | 26.09 | % | ||||||||||
Net assets, end of period (in millions) | $40 | $45 | $34 | $15 | $7 | $8 | $8 | |||||||||||||||||
Ratio of expenses to average net assets | 2.23 | %(2) | 2.20 | % | 2.29 | % | 2.58 | % | 2.79 | % | 3.01 | %(2) | 3.01 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 1.44 | %(2) | - -0.02 | % | - -0.08 | % | - -0.50 | % | - -0.63 | % | - -1.30 | %(2) | - -0.82 | % | ||||||||||
Portfolio turnover rate | 44 | % | 101 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | % |
(1)Based on average weekly shares outstanding.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 17.05 | $ | 17.63 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.13 | (0.02 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (3.96 | ) | 0.98 | ||||||
Total from investment operations | (3.83 | ) | 0.96 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.03 | ) | |||||
Capital gains | (0.00 | ) | (1.51 | ) | |||||
Total distributions | (0.00 | ) | (1.54 | ) | |||||
Net asset value, end of period | $ | 13.22 | $ | 17.05 | |||||
Total return(2) | - -22.46 | % | 4.70 | % | |||||
Net assets, end of period (in millions) | $1 | $1 | |||||||
Ratio of expenses to average net assets including expense waiver | 2.11 | %(3) | 2.38 | %(3) | |||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.58 | %(3) | - -0.51 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.47 | %(3) | 2.38 | %(3)(4) | |||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.22 | %(3) | - -0.51 | %(3)(4) | |||||
Portfolio turnover rate | 44 | % | 101 | %(5) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL CORE EQUITY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 17.20 | $ | 17.71 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.20 | 0.16 | |||||||
Net realized and unrealized gain (loss) on investments | (4.00 | ) | 1.01 | ||||||
Total from investment operations | (3.80 | ) | 1.17 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.17 | ) | |||||
Capital gains | (0.00 | ) | (1.51 | ) | |||||
Total distributions | (0.00 | ) | (1.68 | ) | |||||
Net asset value, end of period | $ | 13.40 | $ | 17.20 | |||||
Total return | - -22.09 | % | 5.83 | % | |||||
Net assets, end of period (in millions) | $23 | $23 | |||||||
Ratio of expenses to average net assets | 1.12 | %(2) | 1.13 | %(2) | |||||
Ratio of net investment income to average net assets | 2.52 | %(2) | 0.69 | %(2) | |||||
Portfolio turnover rate | 44 | % | 101 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.19 | $ | 17.70 | $ | 15.79 | $ | 11.64 | $ | 10.15 | $ | 9.74 | $ | 8.16 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 0.15 | 0.15 | (2) | 0.12 | (2) | (0.06 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (3.96 | ) | 0.97 | (2) | 2.59 | (2) | 4.21 | 1.50 | 0.42 | 1.59 | |||||||||||||||
Total from investment operations | (3.81 | ) | 1.12 | 2.71 | 4.15 | 1.49 | 0.41 | 1.58 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.12 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.51 | ) | (0.73 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (1.63 | ) | (0.80 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Net asset value, end of period | $ | 13.38 | $ | 17.19 | $ | 17.70 | $ | 15.79 | $ | 11.64 | $ | 10.15 | $ | 9.74 | |||||||||||
Total return | - -22.17 | % | 5.50 | % | 17.47 | % | 35.65 | % | 14.68 | % | 4.21 | % | 19.36 | % | |||||||||||
Net assets, end of period (in thousands) | $11,295 | $10,233 | $ | 3,848 | $ | 1,025 | $294 | $145 | $125 | ||||||||||||||||
Ratio of expenses to average net assets | 1.36 | %(3) | 1.39 | % | 1.45 | % | 1.72 | % | 1.82 | % | 2.08 | %(3) | 1.47 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets | 2.23 | %(3) | 0.77 | % | 0.76 | % | 0.13 | % | 0.29 | % | - -0.31 | %(3) | - -0.38 | %(3) | |||||||||||
Portfolio turnover rate | 44 | % | 101 | % | 108 | % | 90 | % | 106 | % | 23 | % | 148 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY INTERNATIONAL GROWTH FUND
Portfolio Highlights
On September 30, 2008, Ivy International Growth Fund had net assets totaling $190,943
(in thousands) invested in a diversified portfolio of:
90.00% | Foreign Common and Preferred Stocks | |
8.49% | Cash and Cash Equivalents | |
1.51% | Domestic Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsEurope | $ | 70.15 | |||
United Kingdom | $ | 16.26 | |||
Germany | $ | 16.24 | |||
Other Europe(1) | $ | 12.48 | |||
Switzerland | $ | 11.39 | |||
France | $ | 10.05 | |||
Italy | $ | 3.73 | |||
Pacific Basin | $ | 15.55 | |||
Japan | $ | 12.15 | |||
Other Pacific Basin(2) | $ | 3.40 | |||
Cash and Cash Equivalents | $ | 8.49 | |||
North America(3) | $ | 4.00 | |||
Other(4) | $ | 1.81 |
(1)Includes $1.06 Denmark, $1.98 Finland, $2.73 Greece, $1.36 Netherlands, $1.86 Norway, $2.02 Spain and $1.47 Sweden.
(2)Includes $2.16 Australia, $0.89 Hong Kong and $0.35 India.
(3)Includes $2.49 Canada and $1.51 United States.
(4)Includes $1.81 South America.
Consumer Staples Stocks | $ | 17.18 | |||
Industrials Stocks | $ | 14.87 | |||
Materials Stocks | $ | 12.55 | |||
Financials Stocks | $ | 10.61 | |||
Cash and Cash Equivalents | $ | 8.49 | |||
Information Technology Stocks | $ | 7.29 | |||
Utilities Stocks | $ | 6.38 | |||
Consumer Discretionary Stocks | $ | 6.08 | |||
Health Care Stocks | $ | 5.87 | |||
Telecommunications Stocks | $ | 5.65 | |||
Energy Stocks | $ | 5.03 |
The Investments of Ivy International Growth Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Australia - 2.16% | |||||||
Boart Longyear Limited (A)(B) | 1,120 | $ | 1,010 | ||||
Novogen LTD (B)(C) | 475 | 432 | |||||
Telstra Corporation Limited (B) | 800 | 2,684 | |||||
4,126 | |||||||
Brazil - 1.81% | |||||||
Companhia Vale do Rio Doce, ADR | 66 | 1,264 | |||||
Petroleo Brasileiro S.A. - Petrobras, ADR | 50 | 2,197 | |||||
3,461 | |||||||
Canada - 2.49% | |||||||
Shoppers Drug Mart Corporation (A)(B) | 48 | 2,338 | |||||
Shoppers Drug Mart Corporation (B) | 50 | 2,412 | |||||
4,750 | |||||||
Denmark - 1.06% | |||||||
Carlsberg Group (B)(C) | 27 | 2,020 | |||||
Finland - 1.98% | |||||||
Fortum Oyj (B) | 85 | 2,852 | |||||
Nokia OYJ (B) | 50 | 933 | |||||
3,785 | |||||||
France - 10.05% | |||||||
ALSTOM (B) | 14 | 1,063 | |||||
AXA S.A. (B) | 80 | 2,619 | |||||
Carrefour S.A. (B)(C) | 21 | 967 | |||||
EDF SA (B)(C) | 24 | 1,735 | |||||
Lafarge (B) | 9 | 947 | |||||
LVMH Moet Hennessy - Louis Vuitton (B) | 10 | 878 | |||||
Pinault-Printemps-Redoute SA (B)(C) | 20 | 1,745 | |||||
Societe Generale (B) | 13 | 1,123 | |||||
TOTAL S.A. (B) | 65 | 3,949 | |||||
VINCI (B) | 89 | 4,171 | |||||
19,197 | |||||||
Germany - 13.96% | |||||||
Allianz Aktiengesellschaft, Registered Shares (B)(C) | 14 | 1,860 | |||||
BASF Aktiengesellschaft (B)(C) | 19 | 935 | |||||
Bayer Aktiengesellschaft (B) | 97 | 7,117 | |||||
Beiersdorf Aktiengesellschaft (B) | 19 | 1,225 | |||||
Deutsche Bank AG (B)(C) | 25 | 1,815 | |||||
E.ON AG (B) | 87 | 4,419 | |||||
elexis AG (B) | 40 | 749 | |||||
K+S Aktiengesellschaft (B) | 20 | 1,424 | |||||
Linde Aktiengesellschaft (B) | 10 | 1,039 | |||||
Siemens AG (B) | 36 | 3,377 | |||||
Vossloh AG (B) | 26 | 2,692 | |||||
26,652 | |||||||
Greece - 2.73% | |||||||
Bank of Cyprus Limited (B) | 176 | 1,398 | |||||
Hellenic Exchanges Holding S.A. (B) | 150 | 1,756 | |||||
National Bank of Greece S.A. (B) | 51 | 2,065 | |||||
5,219 | |||||||
Hong Kong - 0.89% | |||||||
Cheung Kong (Holdings) Limited (B) | 60 | 680 | |||||
China South Locomotive & Rolling Stock Corporation Limited, H Shares (B)(C)(D) | 2,700 | 1,026 | |||||
1,706 | |||||||
India - 0.35% | |||||||
ICICI Bank Limited, ADR | 28 | 659 | |||||
Italy - 3.73% | |||||||
Banca Intesa S.p.A. (B) | 320 | 1,760 | |||||
DiaSorin S.p.A. (A)(B) | 40 | 782 | |||||
Prysmian SpA (A)(B) | 29 | 561 | |||||
Saipem S.p.A. (B) | 89 | 2,663 | |||||
UniCredit S.p.A. (B) | 363 | 1,357 | |||||
7,123 | |||||||
Japan - 12.15% | |||||||
Canon Inc. (B) | 31 | 1,175 | |||||
Central Japan Railway Company (B) | - -* | 2,169 | |||||
East Japan Railway Company (B) | - -* | 2,461 | |||||
Japan Tobacco Inc. (B) | 1 | 3,392 | |||||
Mitsubishi Electric Corporation (B) | 360 | 2,429 | |||||
Nintendo Co., Ltd. (B) | 10 | 4,327 | |||||
Shin-Etsu Chemical Co., Ltd. (B) | 42 | 1,997 | |||||
Toyota Motor Corporation (B) | 65 | 2,779 | |||||
YAMADA-DENKI Co., Ltd. (B)(C) | 33 | 2,463 | |||||
23,192 | |||||||
Netherlands - 1.36% | |||||||
Heineken N.V. (B) | 65 | 2,591 | |||||
Norway - 1.86% | |||||||
Orkla ASA (B) | 300 | 2,761 | |||||
SeaDrill Limited (B) | 38 | 787 | |||||
3,548 | |||||||
Spain - 2.02% | |||||||
Telefonica, S.A. (B) | 162 | 3,852 | |||||
Sweden - 1.47% | |||||||
Atlas Copco AB, Class A (B) | 93 | 1,056 | |||||
H & M Hennes & Mauritz AB (B) | 43 | 1,757 | |||||
2,813 | |||||||
Switzerland - 11.39% | |||||||
Nestle S.A., Registered Shares (B) | 210 | 9,076 | |||||
Roche Holdings AG, Genussschein (B) | 36 | 5,636 | |||||
Syngenta AG (B) | 13 | 2,741 | |||||
TEMENOS Group AG (B)(C) | 130 | 2,478 | |||||
Zurich Financial Services, Registered Shares (B) | 7 | 1,814 | |||||
21,745 | |||||||
United Kingdom - 16.26% | |||||||
Anglo American plc (B) | 49 | 1,638 | |||||
BAE Systems plc (B) | 451 | 3,325 | |||||
Barclays PLC (B) | 230 | 1,367 | |||||
BHP Billiton Plc (B)(C) | 80 | 1,812 | |||||
British American Tobacco p.l.c. (B) | 162 | 5,302 | |||||
IG Group Holdings plc (A)(B) | 272 | 1,546 | |||||
Informa plc (B) | 355 | 2,002 | |||||
National Grid plc (B) | 250 | 3,173 | |||||
Reckitt Benckiser Group plc (B) | 72 | 3,467 | |||||
Serco Group plc (B) | 150 | 978 | |||||
Tanfield Group PLC (B)(C) | 1,000 | 159 | |||||
Vodafone Group Plc (B) | 1,930 | 4,262 | |||||
Xstrata plc (B) | 65 | 2,026 | |||||
31,057 | |||||||
United States - 1.51% | |||||||
Research In Motion Limited (C) | 42 | 2,880 | |||||
TOTAL COMMON STOCKS - 89.23% | $ | 170,376 | |||||
(Cost: $191,227) | |||||||
PREFERRED STOCKS | |||||||
Germany | |||||||
Fresenius AG (B) | 60 | $ | 4,350 | ||||
TOTAL PREFERRED STOCKS - 2.28% | $ | 4,350 | |||||
(Cost: $3,508) | |||||||
SHORT-TERM SECURITIES | Principal | |||||
Commercial Paper - 4.07% | ||||||
Avon Capital Corp. (Avon Products, Inc.), | ||||||
2.200%, 10-3-08 | $ | 5,000 | 5,000 | |||
Walgreen Co., | ||||||
1.000%, 10-1-08 | 2,760 | 2,760 | ||||
7,760 | ||||||
United States Government Obligations - 2.09% | ||||||
United States Treasury Bills, | ||||||
0.300%, 10-23-08 | 4,000 | 3,999 | ||||
TOTAL SHORT-TERM SECURITIES - 6.16% | | | | $ | 11,759 | |
(Cost: $11,759) | ||||||
TOTAL INVESTMENT SECURITIES - 97.67% | | | | $ | 186,485 | |
(Cost: $206,494) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.33% | | | 4,458 | |||
NET ASSETS - 100.00% | | | | $ | 190,943 | |
Notes to Schedule of Investments |
*Not shown due to rounding as amount is less than 500. |
(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $6,237 or 3.27% of net assets. |
(B)Listed on an exchange outside the United States. |
(C)No dividends were paid during the preceding 12 months. |
(D)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of this security amounted to 0.54% of net assets. |
Securities with an aggregate market value of $161,950, representing 84.82% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees. |
The following acronym is used throughout this portfolio: ADR = American Depositary Receipts |
Market Sector Diversification | |||
(as a % of net assets) | |||
Consumer Staples | 17.18% | ||
Industrials | 14.87% | ||
Materials | 12.55% | ||
Financials | 10.61% | ||
Information Technology | 7.29% | ||
Utilities | 6.38% | ||
Consumer Discretionary | 6.08% | ||
Health Care | 5.87% | ||
Telecommunication Services | 5.65% | ||
Energy | 5.03% | ||
Other+ | 8.49% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY INTERNATIONAL GROWTH FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $206,494) | $ | 186,485 | ||
Receivables: | ||||
Investment securities sold | 4,446 | |||
Dividends and interest | 904 | |||
Fund shares sold | 145 | |||
Prepaid and other assets | 39 | |||
Total assets | 192,019 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 515 | |||
Accrued management fee | 145 | |||
Due to custodian | 130 | |||
Accrued shareholder servicing | 87 | |||
Accrued distribution and service fees | 85 | |||
Accrued accounting services fee | 6 | |||
Accrued administrative fee | 2 | |||
Other | 106 | |||
Total liabilities | 1,076 | |||
Total net assets | $ | 190,943 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 450,735 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 1,608 | |||
Accumulated net realized loss on investment transactions | (241,408 | ) | ||
Net unrealized depreciation in value of investments | (19,992 | ) | ||
Net assets applicable to outstanding units of capital | $ | 190,943 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $28.02 | |||
Class B | $25.38 | |||
Class C | $25.34 | |||
Class E | $28.05 | |||
Class I | $28.29 | |||
Class Y | $28.02 | |||
Capital shares outstanding: | ||||
Class A | 4,429 | |||
Class B | 260 | |||
Class C | 1,484 | |||
Class E | 3 | |||
Class I | 699 | |||
Class Y | 100 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY INTERNATIONAL GROWTH FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $367) | $ | 3,634 | ||
Interest and amortization | 190 | |||
Total income | 3,824 | |||
Expenses: | ||||
Investment management fee | 1,031 | |||
Distribution and service fees: | ||||
Class A | 168 | |||
Class B | 46 | |||
Class C | 248 | |||
Class E | –– | * | ||
Class Y | 4 | |||
Shareholder servicing: | ||||
Class A | 196 | |||
Class B | 21 | |||
Class C | 98 | |||
Class E | –– | * | ||
Class I | 17 | |||
Class Y | 3 | |||
Custodian fees | 101 | |||
Accounting services fee | 35 | |||
Audit fees | 19 | |||
Administrative fee | 12 | |||
Legal fees | 1 | |||
Other | 86 | |||
Total | 2,086 | |||
Less expenses in excess of limit | (–– | )* | ||
Total expenses | 2,086 | |||
Net investment income | 1,738 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS | ||||
Realized net gain on securities | 3,213 | |||
Realized net gain on forward currency contracts | 53 | |||
Realized net loss on foreign currency transactions | (143 | ) | ||
Realized net gain on investments | 3,123 | |||
Unrealized depreciation in value of investments during the period | (62,011 | ) | ||
Net loss on investments | (58,888 | ) | ||
Net decrease in net assets resulting from operations | $ | (57,150 | ) | |
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,738 | $ | 188 | ||||
Realized net gain on investments | 3,123 | 26,773 | ||||||
Unrealized depreciation | (62,011 | ) | (16,069 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (57,150 | ) | 10,892 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (320 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | )* | ||||
Class I | (–– | ) | (76 | ) | ||||
Class Y | (–– | ) | (5 | ) | ||||
Advisor Class | NA | (–– | ) | |||||
Class II | NA | (1 | ) | |||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (–– | ) | (–– | ) | ||||
Advisor Class | NA | (–– | ) | |||||
Class II | NA | (–– | ) | |||||
(–– | ) | (402 | ) | |||||
Capital share transactions | (2,189 | ) | 1,559 | |||||
Total increase (decrease) | (59,339 | ) | 12,049 | |||||
NET ASSETS | ||||||||
Beginning of period | 250,282 | 238,233 | ||||||
End of period | $ | 190,943 | $ | 250,282 | ||||
Accumulated undistributed net investment income | $ | 1,608 | $ | 13 | ||||
*Not shown due to rounding.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 36.27 | $ | 34.60 | $ | 29.74 | $ | 22.86 | $ | 21.34 | $ | 20.64 | $ | 16.35 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.29 | (1) | 0.15 | 0.19 | 0.08 | (0.02 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (8.54 | )(1) | 1.59 | 4.72 | 6.97 | 1.54 | 0.71 | 4.31 | |||||||||||||||
Total from investment operations | (8.25 | ) | 1.74 | 4.91 | 7.05 | 1.52 | 0.70 | 4.29 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.07 | ) | (0.05 | ) | (0.17 | ) | (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 | ) | (0.07 | ) | (0.05 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 28.02 | $ | 36.27 | $ | 34.60 | $ | 29.74 | $ | 22.86 | $ | 21.34 | $ | 20.64 | |||||||||
Total return(2) | - -22.75 | % | 5.01 | % | 16.51 | % | 30.92 | % | 7.12 | % | 3.39 | % | 26.24 | % | |||||||||
Net assets, end of period (in millions) | $124 | $163 | $165 | $156 | $122 | $125 | $124 | ||||||||||||||||
Ratio of expenses to average net assets | 1.52 | %(3) | 1.42 | % | 1.46 | % | 1.59 | % | 1.61 | % | 1.69 | %(3) | 1.81 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 1.64 | %(3) | 0.35 | % | 0.55 | % | 0.25 | % | - -0.15 | % | - -0.26 | %(3) | - -0.07 | % | |||||||||
Portfolio turnover rate | 48 | % | 103 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 33.04 | $ | 31.79 | $ | 27.58 | $ | 21.30 | $ | 20.12 | $ | 19.52 | $ | 15.62 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.10 | (1) | (0.23 | )(1) | (0.15 | )(1) | (0.17 | )(1) | (0.22 | )(1) | (0.07 | ) | (0.23 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | (7.76 | )(1) | 1.48 | (1) | 4.36 | (1) | 6.45 | (1) | 1.40 | (1) | 0.67 | 4.13 | |||||||||||
Total from investment operations | (7.66 | ) | 1.25 | 4.21 | 6.28 | 1.18 | 0.60 | 3.90 | |||||||||||||||
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 | $ | 25.38 | $ | 33.04 | $ | 31.79 | $ | 27.58 | $ | 21.30 | $ | 20.12 | $ | 19.52 | |||||||||
Total return | - -23.19 | % | 3.96 | % | 15.23 | % | 29.48 | % | 5.87 | % | 3.08 | % | 24.97 | % | |||||||||
Net assets, end of period (in millions) | $6 | $10 | $11 | $13 | $17 | $49 | $55 | ||||||||||||||||
Ratio of expenses to average net assets | 2.55 | %(2) | 2.45 | % | 2.55 | % | 2.74 | % | 2.75 | % | 2.75 | %(2) | 2.84 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 0.65 | %(2) | - -0.67 | % | - -0.53 | % | - -0.72 | % | - -1.09 | % | - -1.35 | %(2) | - -1.06 | % | |||||||||
Portfolio turnover rate | 48 | % | 103 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||
Net asset value, beginning of period | $ | 32.97 | $ | 31.71 | $ | 27.52 | $ | 21.20 | $ | 20.00 | $ | 19.39 | $ | 15.52 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||
Net investment income (loss) | 0.12 | (1) | (0.25 | ) | (0.15 | ) | (0.09 | )(1) | (0.32 | ) | (0.07 | ) | (0.20 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | (7.75 | )(1) | 1.51 | 4.34 | 6.41 | (1) | 1.52 | 0.68 | 4.07 | ||||||||||||||
Total from investment operations | (7.63 | ) | 1.26 | 4.19 | 6.32 | 1.20 | 0.61 | 3.87 | |||||||||||||||
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 | $ | 25.34 | $ | 32.97 | $ | 31.71 | $ | 27.52 | $ | 21.20 | $ | 20.00 | $ | 19.39 | |||||||||
Total return | - -23.14 | % | 3.97 | % | 15.23 | % | 29.81 | % | 6.00 | % | 3.15 | % | 24.94 | % | |||||||||
Net assets, end of period (in millions) | $38 | $53 | $57 | $56 | $9 | $11 | $12 | ||||||||||||||||
Ratio of expenses to average net assets | 2.47 | %(2) | 2.42 | % | 2.54 | % | 2.43 | % | 2.64 | % | 2.67 | %(2) | 2.80 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 0.72 | %(2) | - -0.65 | % | - -0.53 | % | - -0.39 | % | - -1.14 | % | - -1.25 | %(2) | - -0.94 | % | |||||||||
Portfolio turnover rate | 48 | % | 103 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | % |
(1)Based on average weekly shares outstanding.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 36.28 | $ | 34.54 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.32 | 0.19 | |||||||
Net realized and unrealized gain (loss) on investments | (8.55 | ) | 1.67 | ||||||
Total from investment operations | (8.23 | ) | 1.86 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.12 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.12 | ) | |||||
Net asset value, end of period | $ | 28.05 | $ | 36.28 | |||||
Total return(3) | - -22.69 | % | 5.34 | % | |||||
Net assets, end of period (in thousands) | $81 | $105 | |||||||
Ratio of expenses to average net assets | 1.34 | %(4) | 1.27 | %(4) | |||||
Ratio of net investment income to average net assets | 1.83 | %(4) | 0.49 | %(4) | |||||
Portfolio turnover rate | 48 | % | 103 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY INTERNATIONAL GROWTH FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 36.57 | $ | 34.52 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.32 | 0.10 | |||||||
Net realized and unrealized gain (loss) on investments | (8.60 | ) | 2.12 | ||||||
Total from investment operations | (8.28 | ) | 2.22 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.17 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.00 | ) | (0.17 | ) | |||||
Net asset value, end of period | $ | 28.29 | $ | 36.57 | |||||
Total return | - -22.64 | % | 6.39 | % | |||||
Net assets, end of period (in millions) | $20 | $21 | |||||||
Ratio of expenses to average net assets | 1.20 | %(2) | 1.15 | %(2) | |||||
Ratio of net investment income to average net assets | 1.86 | %(2) | 0.32 | %(2) | |||||
Portfolio turnover rate | 48 | % | 103 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 36.27 | $ | 34.59 | $ | 29.74 | $ | 22.86 | $ | 21.35 | $ | 20.65 | $ | 17.69 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.29 | (2) | 0.31 | 0.28 | 0.18 | (2) | (0.09 | ) | (0.02 | ) | 0.02 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (8.54 | )(2) | 1.42 | 4.63 | 6.87 | (2) | 1.60 | 0.72 | 2.94 | |||||||||||||||
Total from investment operations | (8.25 | ) | 1.73 | 4.91 | 7.05 | 1.51 | 0.70 | 2.96 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.05 | ) | (0.06 | ) | (0.17 | ) | (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 | ) | (0.06 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 28.02 | $ | 36.27 | $ | 34.59 | $ | 29.74 | $ | 22.86 | $ | 21.35 | $ | 20.65 | ||||||||||
Total return | - -22.75 | % | 4.99 | % | 16.50 | % | 30.95 | % | 7.07 | % | 3.39 | % | 16.73 | % | ||||||||||
Net assets, end of period (in thousands) | $2,810 | $3,327 | $4,960 | $6,144 | $229 | $140 | $135 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.50 | %(3) | 1.44 | % | 1.46 | % | 1.58 | % | 1.66 | % | 1.76 | %(3) | 0.59 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.64 | %(3) | 0.31 | % | 0.65 | % | 0.81 | % | - -0.33 | % | - -0.32 | %(3) | 0.24 | %(3) | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.51 | %(3) | 1.44 | %(4) | 1.46 | %(4) | 1.58 | %(4) | 1.66 | %(4) | 1.76 | %(3)(4) | 0.59 | %(3)(4) | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.63 | %(3) | 0.31 | %(4) | 0.65 | %(4) | 0.81 | %(4) | - -0.33 | %(4) | - -0.32 | %(3)(4) | 0.24 | %(3)(4) | ||||||||||
Portfolio turnover rate | 48 | % | 103 | % | 97 | % | 75 | % | 76 | % | 27 | % | 136 | %(5) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY PACIFIC OPPORTUNITIES FUND
Portfolio Highlights
On September 30, 2008, Ivy Pacific Opportunities Fund had net assets totaling $397,814
(in thousands) invested in a diversified portfolio of:
91.22% | Foreign Common Stocks and Investment Funds | |
4.65% | Cash and Cash Equivalents | |
4.13% | Domestic Investment Funds |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsChina | $ | 29.02 | |||
South Korea | $ | 14.92 | |||
India | $ | 12.31 | |||
Taiwan | $ | 8.34 | |||
Singapore | $ | 7.50 | |||
Hong Kong | $ | 5.94 | |||
Cash and Cash Equivalents | $ | 4.65 | |||
Malaysia | $ | 4.25 | |||
United States | $ | 4.13 | |||
Indonesia | $ | 4.02 | |||
Other Pacific Basin(1) | $ | 2.99 | |||
Cayman Islands | $ | 1.93 |
(1)Includes $1.30 Australia, $1.11 Thailand and $0.58 Vietnam.
Financials Stocks | $ | 22.87 | |||
Industrials Stocks | $ | 21.30 | |||
Information Technology Stocks | $ | 12.66 | |||
Energy Stocks | $ | 11.87 | |||
Consumer Discretionary Stocks | $ | 4.94 | |||
Utilities Stocks | $ | 4.81 | |||
Telecommunications Stocks | $ | 4.73 | |||
Cash and Cash Equivalents | $ | 4.65 | |||
Materials Stocks | $ | 4.47 | |||
Multiple Industry Stocks | $ | 4.13 | |||
Miscellaneous Stocks(1) | $ | 3.57 |
(1)Includes $2.32 Consumer Staples Stocks and $1.25 Health Care Stocks.
The Investments of Ivy Pacific Opportunities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | | Shares | Value | ||||
Australia - 1.30% | |||||||
BHP Billiton Plc (A) | 200 | $ | 5,174 | ||||
Cayman Islands - 1.93% | |||||||
Agria Corporation, ADR (B) | 25 | 85 | |||||
China Distance Education Holdings Limited, ADR (B) | 260 | 1,040 | |||||
China Nepstar Chain Drugstore Ltd., ADR | 100 | 489 | |||||
CNinsure Inc., ADR (B) | 92 | 825 | |||||
Greentown China Holdings Limited (A)(B) | 4,500 | 2,265 | |||||
KWG Property Holding Limited (A) | 11,012 | 2,981 | |||||
7,685 | |||||||
China - 29.02% | |||||||
Agile Property Holdings Limited (A) | 8,798 | 4,019 | |||||
China BlueChemical Ltd., H Shares (A) | 8,982 | 5,008 | |||||
China Merchants Bank Co., Limited, H Shares (A)(C) | 2,000 | 4,830 | |||||
China Oilfield Services Limited (A) | 7,904 | 7,323 | |||||
China Petroleum & Chemical Corporation, ADR | 50 | 3,917 | |||||
China Railway Construction Corporation Limited, H Shares (A)(B)(C) | 3,000 | 3,961 | |||||
China Resources Power Holdings Company Limited (A) | 3,182 | 6,951 | |||||
China Shenhua Energy Company Limited, H Shares (A) | 1,546 | 3,792 | |||||
China Shenhua Energy Company Limited, H Shares (A)(C) | 1,200 | 2,944 | |||||
China South Locomotive & Rolling Stock Corporation Limited, H Shares (A)(B) | 8,000 | 3,039 | |||||
China Yurun Food Group Limited (A) | 4,901 | 6,391 | |||||
ChinaEdu Corporation, ADR (B) | 350 | 1,426 | |||||
CNPC (Hong Kong) Limited (A) | 12,310 | 5,241 | |||||
COSCO Pacific Limited (A) | 3,000 | 3,443 | |||||
Enerchina Holdings Limited (A)(B) | 56,718 | 1,241 | |||||
Heng Tai Consumables Group Limited (A)(B) | 21,375 | 1,869 | |||||
Honghua Group Limited (A)(B)(C) | 4,000 | 772 | |||||
Industrial and Commercial Bank of China (Asia) Limited (A)(B) | 8,000 | 4,835 | |||||
NetEase.com, Inc., ADR (B) | 350 | 7,985 | |||||
PetroChina Company Limited, H Shares (A) | 6,470 | 6,716 | |||||
REXCAPITAL Financial Holdings Limited (A)(B) | 52,975 | 2,219 | |||||
Simcere Pharmaceutical Group, ADR (B) | 574 | 4,978 | |||||
SINA Corporation (B) | 163 | 5,765 | |||||
Tencent Holdings Limited (A) | 1,600 | 11,695 | |||||
Wah Sang Gas Holdings Limited (A)(B) | 736 | - -* | |||||
Yingli Green Energy Holding Company Limited, ADR (B) | 277 | 3,048 | |||||
Zhuzhou CSR Times Electric Co., Ltd., H Shares (A) | 2,843 | 2,025 | |||||
115,433 | |||||||
Hong Kong - 5.94% | |||||||
Beijing Enterprises Holdings Limited (A) | 1,538 | 5,858 | |||||
Cheung Kong (Holdings) Limited (A) | 443 | 5,019 | |||||
China South Locomotive & Rolling Stock Corporation Limited, H Shares (A)(B)(D) | 15,240 | 5,790 | |||||
Lee & Man Paper Manufacturing Limited (A) | 2,194 | 1,202 | |||||
Melco International Development Limited (A)(B) | 5,000 | 1,416 | |||||
Pan Asia Environmental Protection Group Limited (A)(D) | 13,372 | 2,004 | |||||
Pou Sheng International (Holdings) Limited (A)(B)(C) | 20,000 | 2,318 | |||||
23,607 | |||||||
India - 12.31% | |||||||
Bharat Heavy Electricals Limited (A) | 341 | 11,759 | |||||
Bharti Airtel Limited (A)(B) | 436 | 7,387 | |||||
CESC Limited (A)(C) | 450 | 2,688 | |||||
ICICI Bank Limited, ADR | 356 | 8,382 | |||||
Nagarjuna Construction Company Limited (A) | 1,435 | 2,998 | |||||
Reliance Industries Limited (A) | 169 | 7,100 | |||||
TATA POWER COMPANY LIMITED (THE) (A)(B) | 419 | 8,263 | |||||
United Breweries (Holdings) Limited (A)(B)(D) | 79 | 391 | |||||
48,968 | |||||||
Indonesia - 4.02% | |||||||
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 142 | 4,215 | |||||
PT Astra International Tbk (A) | 2,866 | 5,112 | |||||
PT Bank Rakyat Indonesia (A) | 9,513 | 5,375 | |||||
PT. Indika Inti Energi (A)(B)(C) | 6,000 | 1,304 | |||||
16,006 | |||||||
Malaysia - 4.25% | |||||||
Bumiputra-Commerce Holdings Berhad (A) | 1,356 | 3,033 | |||||
Gamuda Berhad (A) | 6,355 | 3,969 | |||||
Genting Berhad (A) | 2,068 | 3,193 | |||||
IOI Corporation Berhad (A) | - -* | - -* | |||||
LION DIVERSIFIED HOLDINGS BERHAD (A) | 1,946 | 315 | |||||
PARKSON HOLDINGS BERHAD (A) | 2,530 | 2,829 | |||||
Sime Darby Berhad (A) | 1,848 | 3,572 | |||||
16,911 | |||||||
Singapore - 7.50% | |||||||
Cambridge Industrial Trust (A)(C) | 9,500 | 2,905 | |||||
Keppel Corporation Limited (A) | 1,876 | 10,367 | |||||
Keppel Land Limited (A) | 1,742 | 3,479 | |||||
SembCorp Industries Ltd (A) | 1,424 | 3,262 | |||||
Singapore Telecommunications Limited (A) | 2,139 | 4,890 | |||||
United Overseas Bank Limited (A) | 414 | 4,949 | |||||
29,852 | |||||||
South Korea - 14.92% | |||||||
Daegu Bank, Ltd. (A) | 443 | 3,960 | |||||
Daelim Industrial Co., Ltd. (A) | 113 | 7,002 | |||||
ForHuman Co., Ltd. (A)(B) | 201 | 2,845 | |||||
Hyundai Development Company - Engineering & Construction (A) | 107 | 3,999 | |||||
KCC Corporation (A) | 11 | 3,537 | |||||
Korea Investment Holdings Co., Ltd. (A)(B) | 98 | 2,675 | |||||
Kyeryong Construction Industrial Co. Ltd (A) | 103 | 1,583 | |||||
LG Electronics Inc. (A)(B) | 68 | 6,303 | |||||
NHN Corporation (A)(B) | 48 | 6,167 | |||||
Samsung C&T Corporation (A) | 78 | 3,462 | |||||
Samsung Electronics Co., Ltd. (A) | 13 | 5,843 | |||||
SK Corporation (A) | 65 | 6,053 | |||||
Woori Finance Holdings Co., Ltd. (A) | 576 | 5,919 | |||||
59,348 | |||||||
Taiwan - 8.34% | |||||||
Cathay Financial Holding Co., Ltd. (A) | 4,613 | 6,371 | |||||
First Commercial Bank Co., Ltd. (A)(B) | 10,521 | 6,588 | |||||
Fubon Financial Holding Co., Ltd. (A) | 9,096 | 6,582 | |||||
Hon Hai Precision Ind. Co., Ltd. (A) | 2,247 | 8,049 | |||||
InnoLux Display Corporation, GDR (A)(B)(C) | 770 | 1,987 | |||||
MediaTek Incorporation (A) | 1 | 7 | |||||
Taiwan Cement Corporation (A)(B) | 6,000 | 3,586 | |||||
33,170 | |||||||
Thailand - 1.11% | |||||||
Advanced Info Service Public Company Limited (A) | 962 | 2,311 | |||||
PTT Public Company Limited (A) | 315 | 2,121 | |||||
4,432 | |||||||
TOTAL COMMON STOCKS - 90.64% | | | | | $ | 360,586 | |
(Cost: $481,901) | |||||||
INVESTMENT FUNDS | | ||||||
United States - 4.13% | |||||||
iShares MSCI Hong Kong Index Fund | 590 | 7,791 | |||||
iShares MSCI Taiwan Index Fund | 800 | 8,616 | |||||
16,407 | |||||||
Vietnam - 0.58% | |||||||
Vietnam Azalea Fund Limited (B)(E)(F) | 500 | 2,305 | |||||
TOTAL INVESTMENT FUNDS - 4.71% | | | | | $ | 18,712 | |
(Cost: $24,916) | |||||||
SHORT-TERM SECURITIES | Principal | |||||
Commercial Paper | ||||||
Walgreen Co., | ||||||
1.000%, 10-1-08 | $ | 1,401 | 1,401 | |||
TOTAL SHORT-TERM SECURITIES - 0.35% | $ | 1,401 | ||||
(Cost: $1,401) | ||||||
TOTAL INVESTMENT SECURITIES - 95.70% | | | | $ | 380,699 | |
(Cost: $508,218) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 4.30% | | | 17,115 | |||
NET ASSETS - 100.00% | | | | $ | 397,814 | |
Notes to Schedule of Investments | ||||||||
*Not shown due to rounding as amount is less than 500. | ||||||||
(A)Listed on an exchange outside the United States. | ||||||||
(B)No dividends were paid during the preceding 12 months. | ||||||||
(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $23,709 or 5.96% 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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $8,185 or 2.06% of net assets. |
(E)Restricted security. At September 30, 2008, the following restricted security was owned: | ||||||||
Security | Acquisition Date | Shares | Cost | Market Value | ||||
Vietnam Azalea Fund Limited | 6-14-07 | 500 | $2,900 | $2,305 | ||||
The total value of this security represented approximately 0.58% of net assets at September 30, 2008. | ||||||||
(F)Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. The Fund and other mutual funds managed by its investment manager, Ivy Investment Management Company, or other related parties together own 30% of the outstanding shares of this security at September 30, 2008. | ||||||||
Securities with an aggregate market value of $301,873, representing 75.88% of net assets, have been valued in good faith by the Valuation Committee appointed by the Board of Trustees. | ||||||||
The following acronyms are used throughout this portfolio: ADR = American Depositary Receipts GDR = Global Depositary Receipts | ||||||||
Market Sector Diversification | |||
(as a % of net assets) | |||
Financials | 22.87% | ||
Industrials | 21.30% | ||
Information Technology | 12.66% | ||
Energy | 11.87% | ||
Consumer Discretionary | 4.94% | ||
Utilities | 4.81% | ||
Telecommunication Services | 4.73% | ||
Materials | 4.47% | ||
Multiple Industry | 4.13% | ||
Consumer Staples | 2.32% | ||
Health Care | 1.25% | ||
Other+ | 4.65% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY PACIFIC OPPORTUNITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: | ||||
Securities (cost - $505,318) | $ | 378,394 | ||
Affilated company (cost - $2,900) | 2,305 | |||
380,699 | ||||
Cash denominated in foreign currencies (cost - $10,326) | 10,345 | |||
Receivables: | ||||
Investment securities sold | 7,678 | |||
Dividends and interest | 777 | |||
Fund shares sold | 670 | |||
Prepaid and other assets | 45 | |||
Total assets | 400,214 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 1,380 | |||
Accrued management fee | 364 | |||
Accrued shareholder servicing | 221 | |||
Accrued distribution and service fees | 105 | |||
Due to custodian | 52 | |||
Payable for investment securities purchased | 47 | |||
Accrued accounting services fee | 8 | |||
Accrued administrative fee | 4 | |||
Other | 219 | |||
Total liabilities | 2,400 | |||
Total net assets | $ | 397,814 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 471,982 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 1,212 | |||
Accumulated undistributed net realized gain on investment transactions | 52,119 | |||
Net unrealized depreciation in value of investments | (127,499 | ) | ||
Net assets applicable to outstanding units of capital | $ | 397,814 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $12.61 | |||
Class B | $11.41 | |||
Class C | $11.61 | |||
Class E | $12.65 | |||
Class I | $12.76 | |||
Class Y | $12.73 | |||
Advisor Class | $12.35 | |||
Capital shares outstanding: | ||||
Class A | 25,553 | |||
Class B | 1,187 | |||
Class C | 2,023 | |||
Class E | 7 | |||
Class I | 2,608 | |||
Class Y | 383 | |||
Advisor Class | 4 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY PACIFIC OPPORTUNITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $486) | $ | 8,009 | ||
Interest and amortization | 169 | |||
Total income | 8,178 | |||
Expenses: | ||||
Investment management fee | 2,706 | |||
Shareholder servicing: | ||||
Class A | 842 | |||
Class B | 65 | |||
Class C | 69 | |||
Class E | –– | * | ||
Class I | 31 | |||
Class Y | 5 | |||
Advisor Class | –– | * | ||
Distribution and service fees: | ||||
Class A | 560 | |||
Class B | 97 | |||
Class C | 171 | |||
Class E | –– | * | ||
Class Y | 8 | |||
Custodian fee | 233 | |||
Accounting services fee | 51 | |||
Administrative fee | 28 | |||
Audit fees | 23 | |||
Legal fees | 4 | |||
Other | 181 | |||
Total expenses | 5,074 | |||
Net investment income | 3,104 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS | ||||
Realized net gain on securities | 6,743 | |||
Realized net gain on written options | 306 | |||
Realized net gain on forward currency contracts | 156 | |||
Realized net loss on foreign currency transactions | (968 | ) | ||
Realized net gain on investments | 6,237 | |||
Unrealized depreciation in value of investments during the period(1) | (171,835 | ) | ||
Net loss on investments | (165,598 | ) | ||
Net decrease in net assets resulting from operations | $ | (162,494 | ) | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY PACIFIC OPPORTUNITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 3,104 | $ | (983 | ) | |||
Realized net gain on investments | 6,237 | 89,854 | ||||||
Unrealized depreciation | (171,835 | ) | (36,653 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (162,494 | ) | 52,218 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (1,229 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (1 | ) | ||||
Class I | (–– | ) | (212 | ) | ||||
Class Y | (–– | ) | (34 | ) | ||||
Advisor Class | (–– | ) | (1 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (50,174 | ) | ||||
Class B | (–– | ) | (2,457 | ) | ||||
Class C | (–– | ) | (4,433 | ) | ||||
Class E | (–– | ) | (12 | ) | ||||
Class I | (–– | ) | (3,011 | ) | ||||
Class Y | (–– | ) | (815 | ) | ||||
Advisor Class | (–– | ) | (11 | ) | ||||
(–– | ) | (62,390 | ) | |||||
Capital share transactions | (14,952 | ) | 148,302 | |||||
Total increase (decrease) | (177,446 | ) | 138,130 | |||||
NET ASSETS | ||||||||
Beginning of period | 575,260 | 437,130 | ||||||
End of period | $ | 397,814 | $ | 575,260 | ||||
Accumulated undistributed net investment income (loss) | $ | 1,212 | $ | (924 | ) | |||
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 17.61 | $ | 16.91 | $ | 14.32 | $ | 10.61 | $ | 9.55 | $ | 9.11 | $ | 5.96 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.10 | (0.01 | ) | (0.02 | ) | 0.02 | (1) | (0.07 | ) | 0.00 | (0.02 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | (5.10 | ) | 2.80 | 3.23 | 3.83 | (1) | 1.13 | 0.44 | 3.17 | |||||||||||||||
Total from investment operations | (5.00 | ) | 2.79 | 3.21 | 3.85 | 1.06 | 0.44 | 3.15 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.05 | ) | (0.01 | ) | (0.04 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (2.04 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (2.09 | ) | (0.62 | ) | (0.14 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 12.61 | $ | 17.61 | $ | 16.91 | $ | 14.32 | $ | 10.61 | $ | 9.55 | $ | 9.11 | ||||||||||
Total return(2) | - -28.39 | % | 14.30 | % | 22.60 | % | 36.51 | % | 11.10 | % | 4.83 | % | 52.85 | % | ||||||||||
Net assets, end of period (in millions) | $322 | $471 | $375 | $191 | $64 | $29 | $18 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.82 | %(3) | 1.74 | % | 1.84 | % | 1.95 | % | 2.22 | % | 2.07 | %(3) | 2.64 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.17 | %(3) | - -0.08 | % | - -0.14 | % | 0.24 | % | - -0.80 | % | - -1.07 | %(3) | - -0.39 | % | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.82 | %(3)(4) | 1.74 | %(4) | 1.84 | %(4) | 1.95 | %(4) | 2.22 | %(4) | 2.07 | %(3)(4) | 2.73 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.17 | %(3)(4) | - -0.08 | %(4) | - -0.14 | %(4) | 0.24 | %(4) | - -0.80 | %(4) | - -1.07 | %(3)(4) | - -0.48 | % | ||||||||||
Portfolio turnover rate | 51 | % | 96 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.01 | $ | 15.49 | $ | 13.29 | $ | 9.91 | $ | 9.01 | $ | 8.61 | $ | 5.75 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | 0.01 | (1) | (0.19 | ) | (0.07 | ) | (0.06 | )(1) | (0.13 | ) | (0.04 | ) | (0.06 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (4.61 | )(1) | 2.56 | 2.88 | 3.54 | (1) | 1.03 | 0.44 | 2.92 | |||||||||||||||
Total from investment operations | (4.60 | ) | 2.37 | 2.81 | 3.48 | 0.90 | 0.40 | 2.86 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.85 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.85 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 11.41 | $ | 16.01 | $ | 15.49 | $ | 13.29 | $ | 9.91 | $ | 9.01 | $ | 8.61 | ||||||||||
Total return | - -28.73 | % | 13.16 | % | 21.33 | % | 35.26 | % | 9.99 | % | 4.65 | % | 49.74 | % | ||||||||||
Net assets, end of period (in millions) | $14 | $21 | $20 | $11 | $6 | $6 | $6 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.89 | %(2) | 2.74 | % | 2.88 | % | 2.91 | % | 3.06 | % | 2.86 | %(2) | 3.46 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 0.10 | %(2) | - -1.05 | % | - -1.15 | % | - -0.51 | % | - -1.57 | % | - -1.92 | %(2) | - -1.15 | % | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.89 | %(2)(3) | 2.74 | %(3) | 2.88 | %(3) | 2.91 | %(3) | 3.06 | %(3) | 2.86 | %(2)(3) | 3.55 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.10 | %(2)(3) | - -1.05 | %(3) | - -1.15 | %(3) | - -0.51 | %(3) | - -1.57 | %(3) | - -1.92 | %(2)(3) | - -1.24 | % | ||||||||||
Portfolio turnover rate | 51 | % | 96 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 16.27 | $ | 15.73 | $ | 13.45 | $ | 10.01 | $ | 9.09 | $ | 8.68 | $ | 5.75 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | (0.14 | ) | (0.08 | ) | (0.06 | )(1) | (0.09 | ) | (0.02 | ) | (0.05 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (4.67 | ) | 2.58 | 2.97 | 3.60 | (1) | 1.01 | 0.43 | 2.98 | |||||||||||||||
Total from investment operations | (4.66 | ) | 2.44 | 2.89 | 3.54 | 0.92 | 0.41 | 2.93 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (1.90 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (1.90 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 11.61 | $ | 16.27 | $ | 15.73 | $ | 13.45 | $ | 10.01 | $ | 9.09 | $ | 8.68 | ||||||||||
Total return | - -28.64 | % | 13.36 | % | 21.68 | % | 35.51 | % | 10.12 | % | 4.72 | % | 50.96 | % | ||||||||||
Net assets, end of period (in millions) | $24 | $38 | $34 | $18 | $7 | $3 | $2 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 2.57 | %(2) | 2.49 | % | 2.60 | % | 2.75 | % | 3.06 | % | 2.57 | %(2) | 3.48 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 0.40 | %(2) | - -0.82 | % | - -0.87 | % | - -0.50 | % | - -1.68 | % | - -1.59 | %(2) | - -1.14 | % | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 2.57 | %(2)(3) | 2.49 | %(3) | 2.60 | %(3) | 2.75 | %(3) | 3.06 | %(3) | 2.57 | %(2)(3) | 3.57 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.40 | %(2)(3) | - -0.82 | %(3) | - -0.87 | %(3) | - -0.50 | %(3) | - -1.68 | %(3) | - -1.59 | %(2)(3) | - -1.23 | % | ||||||||||
Portfolio turnover rate | 51 | % | 96 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % |
(1)Based on average weekly shares outstanding.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 17.62 | $ | 16.88 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.13 | 0.06 | |||||||
Net realized and unrealized gain (loss) on investments | (5.10 | ) | 2.82 | ||||||
Total from investment operations | (4.97 | ) | 2.88 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.10 | ) | |||||
Capital gains | (0.00 | ) | (2.04 | ) | |||||
Total distributions | (0.00 | ) | (2.14 | ) | |||||
Net asset value, end of period | $ | 12.65 | $ | 17.62 | |||||
Total return(3) | - -28.21 | % | 14.79 | % | |||||
Net assets, end of period (in thousands) | $82 | $115 | |||||||
Ratio of expenses to average net assets | 1.42 | %(4) | 1.43 | %(4) | |||||
Ratio of net investment income to average net assets | 1.56 | %(4) | 0.26 | %(4) | |||||
Portfolio turnover rate | 51 | % | 96 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY PACIFIC OPPORTUNITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 17.77 | $ | 17.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.13 | (0.03 | )(2) | ||||||
Net realized and unrealized gain (loss) on investments | (5.14 | ) | 2.98 | (2) | |||||
Total from investment operations | (5.01 | ) | 2.95 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.14 | ) | |||||
Capital gains | (0.00 | ) | (2.04 | ) | |||||
Total distributions | (0.00 | ) | (2.18 | ) | |||||
Net asset value, end of period | $ | 12.76 | $ | 17.77 | |||||
Total return | - -28.19 | % | 15.10 | % | |||||
Net assets, end of period (in millions) | $33 | $38 | |||||||
Ratio of expenses to average net assets | 1.30 | %(3) | 1.31 | %(3) | |||||
Ratio of net investment income to average net assets | 1.68 | %(3) | 0.06 | %(3) | |||||
Portfolio turnover rate | 51 | % | 96 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 17.75 | $ | 17.03 | $ | 14.41 | $ | 10.67 | $ | 9.58 | $ | 9.13 | $ | 6.85 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) | 0.12 | 0.01 | 0.02 | 0.04 | (2) | (0.04 | ) | (0.00 | ) | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.14 | ) | 2.83 | 3.26 | 3.87 | (2) | 1.13 | 0.45 | 2.29 | ||||||||||||||||
Total from investment operations | (5.02 | ) | 2.84 | 3.28 | 3.91 | 1.09 | 0.45 | 2.28 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.08 | ) | (0.05 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Capital gains | (0.00 | ) | (2.04 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.00 | ) | (2.12 | ) | (0.66 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Net asset value, end of period | $ | 12.73 | $ | 17.75 | $ | 17.03 | $ | 14.41 | $ | 10.67 | $ | 9.58 | $ | 9.13 | |||||||||||
Total return | - -28.28 | % | 14.48 | % | 22.95 | % | 36.90 | % | 11.38 | % | 4.93 | % | 33.28 | % | |||||||||||
Net assets, end of period (in thousands) | $4,879 | $7,144 | $8,101 | $3,790 | $1,100 | $707 | $497 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.56 | %(3) | 1.55 | % | 1.58 | % | 1.68 | % | 1.88 | % | 1.64 | %(3) | 2.01 | %(3) | |||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.42 | %(3) | 0.06 | % | 0.11 | % | 0.46 | % | - -0.47 | % | - -0.68 | %(3) | - -0.40 | %(3) | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.56 | %(3)(4) | 1.55 | %(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 expense waiver | 1.42 | %(3)(4) | 0.06 | %(4) | 0.11 | %(4) | 0.46 | %(4) | - -0.47 | %(4) | - -0.68 | %(3)(4) | - -0.57 | %(3) | |||||||||||
Portfolio turnover rate | 51 | % | 96 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | %(5) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 17.19 | $ | 16.54 | $ | 14.01 | $ | 10.38 | $ | 9.28 | $ | 8.85 | $ | 5.81 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.23 | 0.09 | 0.09 | 0.14 | (2) | (0.01 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (5.07 | ) | 2.76 | 3.15 | 3.70 | (2) | 1.11 | 0.44 | 3.05 | |||||||||||||||
Total from investment operations | (4.84 | ) | 2.85 | 3.24 | 3.84 | 1.10 | 0.43 | 3.04 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.16 | ) | (0.10 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (2.04 | ) | (0.61 | ) | (0.10 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (2.20 | ) | (0.71 | ) | (0.21 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 12.35 | $ | 17.19 | $ | 16.54 | $ | 14.01 | $ | 10.38 | $ | 9.28 | $ | 8.85 | ||||||||||
Total return | - -28.16 | % | 14.86 | % | 23.33 | % | 37.28 | % | 11.85 | % | 4.86 | % | 52.32 | % | ||||||||||
Net assets, end of period (in thousands) | $53 | $102 | $89 | $76 | $64 | $58 | $55 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.20 | %(3) | 1.22 | % | 1.28 | % | 1.42 | % | 1.56 | % | 1.82 | %(3) | 2.49 | % | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 1.77 | %(3) | 0.46 | % | 0.55 | % | 1.12 | % | - -0.06 | % | - -0.88 | %(3) | - -0.09 | % | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.20 | %(3)(4) | 1.22 | %(4) | 1.28 | %(4) | 1.42 | %(4) | 1.56 | %(4) | 1.82 | %(3)(4) | 2.65 | % | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.77 | %(3)(4) | 0.46 | %(4) | 0.55 | %(4) | 1.12 | %(4) | - -0.06 | %(4) | - -0.88 | %(3)(4) | - -0.25 | % | ||||||||||
Portfolio turnover rate | 51 | % | 96 | % | 74 | % | 87 | % | 87 | % | 61 | % | 187 | % |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY BALANCED FUND
Portfolio Highlights
On September 30, 2008, Ivy Balanced Fund had net assets totaling $108,416 (in thousands) invested in a diversified portfolio of:
59.23% | Domestic Common Stocks | |
23.50% | Cash and Cash Equivalents | |
12.20% | United States Government and Government Agency Obligations | |
2.57% | Foreign Common Stocks | |
1.97% | Domestic Corporate Debt Securities | |
0.53% | Foreign Corporate Debt Securities |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Stocks | $ | 61.80 | |||
Information Technology Stocks | $ | 11.51 | |||
Financials Stocks | $ | 10.72 | |||
Consumer Staples Stocks | $ | 10.34 | |||
Health Care Stocks | $ | 9.92 | |||
Energy Stocks | $ | 7.04 | |||
Industrials Stocks | $ | 6.18 | |||
Miscellaneous Stocks(1) | $ | 3.75 | |||
Materials Stocks | $ | 2.34 | |||
Cash and Cash Equivalents | $ | 23.50 | |||
Bonds | $ | 14.70 | |||
United States Government and Government Agency Obligations | $ | 12.20 | |||
Corporate Debt Securities | $ | 2.50 |
(1)Includes $0.83 Consumer Discretionary Stocks, $1.58 Telecommunication Services Stocks and $1.34 Utilities Stocks.
The Investments of Ivy Balanced Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Aerospace & Defense - 2.06% | |||||||
General Dynamics Corporation | 30 | $ | 2,238 | ||||
Air Freight & Logistics - 0.61% | |||||||
Expeditors International of Washington, Inc. | 19 | 660 | |||||
Asset Management & Custody Banks - 1.80% | |||||||
Northern Trust Corporation | 27 | 1,958 | |||||
Biotechnology - 2.89% | |||||||
Genentech, Inc. (A) | 16 | 1,428 | |||||
Gilead Sciences, Inc. (A) | 37 | 1,707 | |||||
3,135 | |||||||
Brewers - 1.05% | |||||||
Anheuser-Busch Companies, Inc. | 18 | 1,142 | |||||
Communications Equipment - 4.45% | |||||||
Cisco Systems, Inc. (A) | 87 | 1,957 | |||||
Nokia Corporation, Series A, ADR | 76 | 1,415 | |||||
QUALCOMM Incorporated | 34 | 1,449 | |||||
4,821 | |||||||
Computer Hardware - 2.80% | |||||||
Apple Inc. (A) | 9 | 1,057 | |||||
Hewlett-Packard Company | 43 | 1,975 | |||||
3,032 | |||||||
Construction & Engineering - 1.51% | |||||||
Fluor Corporation | 29 | 1,638 | |||||
Data Processing & Outsourced Services - 0.62% | |||||||
Paychex, Inc. | 20 | 674 | |||||
Distillers & Vintners - 0.97% | |||||||
Brown-Forman Corporation, Class B | 15 | 1,048 | |||||
Diversified Banks - 1.16% | |||||||
Wells Fargo & Company | 34 | 1,257 | |||||
Diversified Chemicals - 1.23% | |||||||
E.I. du Pont de Nemours and Company | 33 | 1,334 | |||||
Electric Utilities - 1.34% | |||||||
Exelon Corporation | 23 | 1,453 | |||||
Electrical Components & Equipment - 1.21% | |||||||
Emerson Electric Co. | 32 | 1,313 | |||||
Health Care Equipment - 0.76% | |||||||
Zimmer Holdings, Inc. (A) | 13 | 826 | |||||
Health Care Supplies - 1.43% | |||||||
DENTSPLY International Inc. | 41 | 1,547 | |||||
Household Products - 2.48% | |||||||
Colgate-Palmolive Company | 36 | 2,690 | |||||
Hypermarkets & Super Centers - 1.75% | |||||||
Wal-Mart Stores, Inc. | 32 | 1,899 | |||||
Industrial Gases - 1.11% | |||||||
Air Products and Chemicals, Inc. | 18 | 1,198 | |||||
Integrated Oil & Gas - 4.76% | |||||||
BP p.l.c., ADR | 27 | 1,370 | |||||
Chevron Corporation | 18 | 1,501 | |||||
Exxon Mobil Corporation | 30 | 2,291 | |||||
5,162 | |||||||
Integrated Telecommunication Services - 1.58% | |||||||
AT&T Inc. | 61 | 1,711 | |||||
Investment Banking & Brokerage - 0.60% | |||||||
Goldman Sachs Group, Inc. (The) | 5 | 653 | |||||
Movies & Entertainment - 0.83% | |||||||
News Corporation Limited, Class A | 75 | 894 | |||||
Office Services & Supplies - 0.79% | |||||||
Pitney Bowes Inc. | 26 | 855 | |||||
Oil & Gas Equipment & Services - 1.66% | |||||||
Schlumberger Limited | 23 | 1,804 | |||||
Oil & Gas Exploration & Production - 0.62% | |||||||
XTO Energy Inc. | 14 | 670 | |||||
Other Diversified Financial Services - 1.76% | |||||||
J.P. Morgan Chase & Co. | 41 | 1,905 | |||||
Pharmaceuticals - 4.84% | |||||||
Abbott Laboratories | 39 | 2,228 | |||||
Allergan, Inc. | 17 | 886 | |||||
Johnson & Johnson | 31 | 2,134 | |||||
5,248 | |||||||
Property & Casualty Insurance - 4.31% | |||||||
Allstate Corporation (The) | 32 | 1,495 | |||||
Berkshire Hathaway Inc., Class B (A) | - -* | 1,538 | |||||
Travelers Companies, Inc. (The) | 36 | 1,636 | |||||
4,669 | |||||||
Regional Banks - 1.09% | |||||||
Synovus Financial Corp. | 114 | 1,183 | |||||
Semiconductor Equipment - 0.99% | |||||||
Applied Materials, Inc. | 71 | 1,075 | |||||
Semiconductors - 1.50% | |||||||
Microchip Technology Incorporated | 55 | 1,631 | |||||
Soft Drinks - 3.16% | |||||||
Coca-Cola Company (The) | 22 | 1,164 | |||||
PepsiCo, Inc. | 32 | 2,259 | |||||
3,423 | |||||||
Systems Software - 1.15% | |||||||
Microsoft Corporation | 47 | 1,247 | |||||
Tobacco - 0.93% | |||||||
Philip Morris International Inc. | 21 | 1,005 | |||||
TOTAL COMMON STOCKS - 61.80% | $ | 66,998 | |||||
(Cost: $57,471) | |||||||
CORPORATE DEBT SECURITIES | Principal | ||||||
---|---|---|---|---|---|---|---|
Banking - 0.24% | |||||||
Wells Fargo Bank, N.A., | |||||||
7.550%, 6-21-10 | $ 250 | 259 | |||||
Electric - 0.53% | |||||||
Hydro-Quebec, | |||||||
8.000%, 2-1-13 | 500 | 580 | |||||
Food Processors - 1.30% | |||||||
Archer-Daniels-Midland Company, | |||||||
7.000%, 2-1-31 | 700 | 673 | |||||
Cargill, Inc., | |||||||
6.375%, 6-1-12 (B) | 400 | 407 | |||||
Unilever Capital Corporation, | |||||||
5.900%, 11-15-32 | 350 | 331 | |||||
1,411 | |||||||
Life Insurance - 0.41% | |||||||
StanCorp Financial Group, Inc., | |||||||
6.875%, 10-1-12 | 450 | 441 | |||||
Other Non-Agency REMIC/CMO - 0.02% | |||||||
Banco Hipotecario Nacional: | |||||||
7.916%, 7-25-09 (C) | 7 | - -* | |||||
8.000%, 3-31-11 (C)(D) | 98 | 25 | |||||
25 | |||||||
TOTAL CORPORATE DEBT SECURITIES - 2.50% | | | $ | 2,716 | |||
(Cost: $2,772) | |||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | |||||||
Mortgage-Backed Obligations | |||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
6.000%, 9-1-17 | 293 | 301 | |||||
5.000%, 1-1-18 | 337 | 338 | |||||
5.500%, 4-1-18 | 204 | 208 | |||||
6.500%, 10-1-28 | 116 | 119 | |||||
6.500%, 2-1-29 | 23 | 24 | |||||
7.000%, 5-1-31 | 23 | 24 | |||||
�� 7.500%, 5-1-31 | 38 | 41 | |||||
7.000%, 7-1-31 | 36 | 38 | |||||
7.000%, 9-1-31 | 53 | 56 | |||||
7.000%, 9-1-31 | 36 | 38 |
7.000%, 11-1-31 | 120 | 127 | |||||
7.000%, 2-1-32 | 136 | 144 | |||||
7.000%, 2-1-32 | 77 | 82 | |||||
6.500%, 2-1-32 | 138 | 144 | |||||
6.500%, 3-1-32 | 38 | 39 | |||||
7.000%, 3-1-32 | 82 | 87 | |||||
7.000%, 6-1-32 | 27 | 29 | |||||
7.000%, 7-1-32 | 144 | 152 | |||||
6.500%, 8-1-32 | 60 | 62 | |||||
6.000%, 9-1-32 | 524 | 533 | |||||
6.500%, 9-1-32 | 123 | 128 | |||||
5.500%, 5-1-33 | 152 | 152 | |||||
5.500%, 5-1-33 | 111 | 111 | |||||
5.500%, 5-1-33 | 252 | 252 | |||||
5.500%, 6-1-33 | 241 | 241 | |||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 3.20% | | | $ | 3,470 | |||
(Cost: $3,471) | |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | |||||||
Treasury Obligations | |||||||
United States Treasury Bonds, | |||||||
7.500%, 11-15-16 | 500 | 628 | |||||
United States Treasury Notes: | |||||||
4.000%, 3-15-10 | 800 | 825 | |||||
4.250%, 10-15-10 | 2,000 | 2,095 | |||||
3.875%, 2-15-13 | 1,250 | 1,302 | |||||
3.625%, 5-15-13 | 750 | 774 | |||||
4.250%, 8-15-13 | 900 | 956 | |||||
4.250%, 8-15-15 | 3,000 | 3,173 | |||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 9.00% | | | $ | 9,753 | |||
(Cost: $9,222) | |||||||
SHORT-TERM SECURITIES | |||||||
---|---|---|---|---|---|---|---|
Commercial Paper - 17.10% | |||||||
Air Products and Chemicals, Inc., | |||||||
1.500%, 10-1-08 | 1,941 | 1,941 | |||||
AT&T Inc., | |||||||
2.150%, 10-3-08 | 3,104 | 3,104 | |||||
Automatic Data Processing Inc., | |||||||
2.000%, 10-1-08 | 4,000 | 4,000 | |||||
Campbell Soup Co., | |||||||
1.930%, 10-14-08 | 3,000 | 2,998 | |||||
Pfizer Inc., | |||||||
1.800%, 10-8-08 | 4,000 | 3,998 | |||||
Shell International Finance B.V. and Royal Dutch Shell plc (Royal Dutch Shell plc), | |||||||
2.260%, 10-7-08 | 2,500 | 2,499 | |||||
18,540 | |||||||
United States Government Obligations - 4.61% | |||||||
United States Treasury Bills, | |||||||
0.095%, 10-9-08 | 5,000 | 5,000 | |||||
TOTAL SHORT-TERM SECURITIES - 21.71% | | | | | $ | 23,540 | |
(Cost: $23,540) | |||||||
TOTAL INVESTMENT SECURITIES - 98.21% | | | | | $ | 106,477 | |
(Cost: $96,476) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.79% | | | 1,939 | ||||
NET ASSETS - 100.00% | | | | | $ | 108,416 | |
Notes to Schedule of Investments |
*Not shown due to rounding as amount is less than 500. |
(A)No dividends were paid during the preceding 12 months. |
(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, 2008, the total value of this security amounted to $407 or 0.38% 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, 2008, the total value of these securities amounted to $25 or 0.02% of net assets. |
(D)Securities valued in good faith by the Valuation Committee appointed by the Board of Trustees. |
The following acronyms are used throughout this portfolio: ADR = American Depositary Receipts CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY BALANCED FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $96,476) | $ | 106,477 | ||
Cash | 2 | |||
Receivables: | ||||
Fund shares sold | 1,982 | |||
Dividends and interest | 235 | |||
Prepaid and other assets | 25 | |||
Total assets | 108,721 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 152 | |||
Accrued management fee | 61 | |||
Accrued distribution and service fees | 36 | |||
Accrued shareholder servicing | 25 | |||
Accrued accounting services fee | 4 | |||
Other | 27 | |||
Total liabilities | 305 | |||
Total net assets | $ | 108,416 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 97,220 | ||
Accumulated undistributed income : | ||||
Accumulated undistributed net investment income | 6 | |||
Accumulated undistributed net realized gain on investment transactions | 1,189 | |||
Net unrealized appreciation in value of investments | 10,001 | |||
Net assets applicable to outstanding units of capital | $ | 108,416 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $15.52 | |||
Class B | $15.47 | |||
Class C | $15.49 | |||
Class E | $15.53 | |||
Class I | $15.53 | |||
Class Y | $15.52 | |||
Capital shares outstanding: | ||||
Class A | 3,974 | |||
Class B | 200 | |||
Class C | 785 | |||
Class E | 7 | |||
Class I | 7 | |||
Class Y | 2,015 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY BALANCED FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $15) | $ | 649 | ||
Interest and amortization | 604 | |||
Total income | 1,253 | |||
Expenses: | ||||
Investment management fee | 356 | |||
Distribution and service fees: | ||||
Class A | 80 | |||
Class B | 15 | |||
Class C | 28 | |||
Class E | –– | * | ||
Class Y | 36 | |||
Shareholder servicing: | ||||
Class A | 82 | |||
Class B | 6 | |||
Class C | 6 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | 22 | |||
Accounting services fee | 29 | |||
Audit fees | 11 | |||
Custodian fees | 5 | |||
Legal fees | 1 | |||
Other | 51 | |||
Total expenses | 728 | |||
Net investment income | 525 | |||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||
Realized net gain on investments | 2,036 | |||
Unrealized depreciation in value of investments during the period | (9,436 | ) | ||
Net loss on investments | (7,400 | ) | ||
Net decrease in net assets resulting from operations | $ | (6,875 | ) | |
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 525 | $ | 1,116 | ||||
Realized net gain on investments | 2,036 | 1,341 | ||||||
Unrealized appreciation (depreciation) | (9,436 | ) | 4,030 | |||||
Net increase (decrease) in net assets resulting from operations | (6,875 | ) | 6,487 | |||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (350 | ) | (740 | ) | ||||
Class B | (3 | ) | (7 | ) | ||||
Class C | (15 | ) | (15 | ) | ||||
Class E | (1 | ) | (1 | ) | ||||
Class I | (1 | ) | (2 | ) | ||||
Class Y | (173 | ) | (353 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (1,854 | ) | ||||
Class B | (–– | ) | (85 | ) | ||||
Class C | (–– | ) | (100 | ) | ||||
Class E | (–– | ) | (3 | ) | ||||
Class I | (–– | ) | (3 | ) | ||||
Class Y | (–– | ) | (794 | ) | ||||
(543 | ) | (3,957 | ) | |||||
Capital share transactions | 19,137 | 827 | ||||||
Total increase | 11,719 | 3,357 | ||||||
NET ASSETS | ||||||||
Beginning of period | 96,697 | 93,340 | ||||||
End of period | $ | 108,416 | $ | 96,697 | ||||
Accumulated undistributed net investment income | $ | 6 | $ | 24 | ||||
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 9-30-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 16.64 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.18 | $ | 10.54 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.09 | 0.20 | 0.16 | 0.15 | 0.14 | 0.05 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.12 | ) | 0.97 | 0.98 | 1.21 | 0.65 | 1.16 | 1.64 | |||||||||||||||||
Total from investment operations | (1.03 | ) | 1.17 | 1.14 | 1.36 | 0.79 | 1.21 | 1.80 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.20 | ) | (0.18 | ) | (0.14 | ) | (0.14 | ) | (0.04 | ) | (0.16 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.09 | ) | (0.71 | ) | (0.18 | ) | (0.14 | ) | (0.14 | ) | (0.04 | ) | (0.16 | ) | |||||||||||
Net asset value, end of period | $ | 15.52 | $ | 16.64 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.18 | |||||||||||
Total return(1) | - -6.22 | % | 7.05 | % | 7.53 | % | 9.71 | % | 5.90 | % | 10.06 | % | 17.17 | %(2) | |||||||||||
Net assets, end of period (in millions) | $62 | $63 | $59 | $57 | $54 | $52 | $38 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.40 | %(3) | 1.38 | % | 1.39 | % | 1.42 | % | 1.53 | % | 1.52 | %(3)(4) | 1.29 | % | |||||||||||
Ratio of net investment income to average net assets including expense waiver | 1.07 | %(3) | 1.16 | % | 1.03 | % | 1.00 | % | 1.02 | % | 0.86 | %(3)(4) | 1.41 | % | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.40 | %(3)(5) | 1.38 | %(5) | 1.39 | %(5) | 1.42 | %(5) | 1.53 | %(5) | 1.57 | %(3)(4) | 1.62 | % | |||||||||||
Ratio of net investment income to average net assets excluding expense waiver | 1.07 | %(3)(5) | 1.16 | %(5) | 1.03 | %(5) | 1.00 | %(5) | 1.02 | %(5) | 0.81 | %(3)(4) | 1.08 | % | |||||||||||
Portfolio turnover rate | 16 | % | 9 | % | 23 | % | 49 | % | 37 | % | 29 | % | 110 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.60 | $ | 16.14 | $ | 15.18 | $ | 13.98 | $ | 13.33 | $ | 12.96 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.01 | 0.04 | 0.01 | 0.00 | 0.01 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.12 | ) | 0.97 | 0.98 | 1.21 | 0.64 | 0.39 | ||||||||||||||
Total from investment operations | (1.11 | ) | 1.01 | 0.99 | 1.21 | 0.65 | 0.40 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.02 | ) | (0.04 | ) | (0.03 | ) | (0.01 | ) | (0.00 | )* | (0.03 | ) | |||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.02 | ) | (0.55 | ) | (0.03 | ) | (0.01 | ) | (0.00 | )* | (0.03 | ) | |||||||||
Net asset value, end of period | $ | 15.47 | $ | 16.60 | $ | 16.14 | $ | 15.18 | $ | 13.98 | $ | 13.33 | |||||||||
Total return | - -6.72 | % | 6.08 | % | 6.49 | % | 8.62 | % | 4.90 | % | 3.05 | % | |||||||||
Net assets, end of period (in thousands) | $3,098 | $2,958 | $2,506 | $1,995 | $1,503 | $338 | |||||||||||||||
Ratio of expenses to average net assets | 2.33 | %(2) | 2.30 | % | 2.39 | % | 2.41 | % | 2.52 | % | 2.76 | %(2) | |||||||||
Ratio of net investment income (loss) to average net assets | 0.12 | %(2) | 0.24 | % | 0.03 | % | 0.01 | % | 0.06 | % | - -0.42 | %(2) | |||||||||
Portfolio turnover rate | 16 | % | 9 | % | 23 | % | 49 | % | 37 | % | 29 | %(3) |
*Not shown due to rounding.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.61 | $ | 16.15 | $ | 15.20 | $ | 13.98 | $ | 13.34 | $ | 12.96 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.04 | 0.07 | 0.04 | 0.03 | 0.03 | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.12 | ) | 0.97 | 0.97 | 1.20 | 0.63 | 0.39 | ||||||||||||||
Total from investment operations | (1.08 | ) | 1.04 | 1.01 | 1.23 | 0.66 | 0.41 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.04 | ) | (0.07 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | |||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.04 | ) | (0.58 | ) | (0.06 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | |||||||||
Net asset value, end of period | $ | 15.49 | $ | 16.61 | $ | 16.15 | $ | 15.20 | $ | 13.98 | $ | 13.34 | |||||||||
Total return | - -6.54 | % | 6.27 | % | 6.67 | % | 8.80 | % | 4.98 | % | 3.13 | % | |||||||||
Net assets, end of period (in thousands) | $12,152 | $4,019 | $3,018 | $1,996 | $898 | $301 | |||||||||||||||
Ratio of expenses to average net assets | 2.11 | %(2) | 2.11 | % | 2.16 | % | 2.25 | % | 2.38 | % | 2.43 | %(2) | |||||||||
Ratio of net investment income (loss) to average net assets | 0.27 | %(2) | 0.42 | % | 0.27 | % | 0.21 | % | 0.19 | % | - -0.12 | %(2) | |||||||||
Portfolio turnover rate | 16 | % | 9 | % | 23 | % | 49 | % | 37 | % | 29 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class E Shares(1)
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(2) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.65 | $ | 16.21 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.12 | 0.24 | |||||||
Net realized and unrealized gain (loss) on investments | (1.13 | ) | 0.94 | ||||||
Total from investment operations | (1.01 | ) | 1.18 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.11 | ) | (0.23 | ) | |||||
Capital gains | (0.00 | ) | (0.51 | ) | |||||
Total distributions | (0.11 | ) | (0.74 | ) | |||||
Net asset value, end of period | $ | 15.53 | $ | 16.65 | |||||
Total return (3) | - -6.10 | % | 7.11 | % | |||||
Net assets, end of period (in thousands) | $101 | $107 | |||||||
Ratio of expenses to average net assets | 1.16 | %(4) | 1.15 | %(4) | |||||
Ratio of net investment income to average net assets | 1.32 | %(4) | 1.39 | %(4) | |||||
Portfolio turnover rate | 16 | % | 9 | %(5) |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY BALANCED FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 16.65 | $ | 16.21 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.12 | 0.26 | |||||||
Net realized and unrealized gain (loss) on investments | (1.12 | ) | 0.95 | ||||||
Total from investment operations | (1.00 | ) | 1.21 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.12 | ) | (0.26 | ) | |||||
Capital gains | (0.00 | ) | (0.51 | ) | |||||
Total distributions | (0.12 | ) | (0.77 | ) | |||||
Net asset value, end of period | $ | 15.53 | $ | 16.65 | |||||
Total return | - -6.04 | % | 7.25 | % | |||||
Net assets, end of period (in thousands) | $101 | $107 | |||||||
Ratio of expenses to average net assets | 1.02 | %(2) | 1.04 | %(2) | |||||
Ratio of net investment income to average net assets | 1.45 | %(2) | 1.51 | %(2) | |||||
Portfolio turnover rate | 16 | % | 9 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 16.64 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | $ | 12.96 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.10 | 0.22 | 0.18 | 0.17 | 0.17 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.12 | ) | 0.97 | 0.98 | 1.21 | 0.65 | 0.40 | ||||||||||||||
Total from investment operations | (1.02 | ) | 1.19 | 1.16 | 1.38 | 0.82 | 0.44 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.10 | ) | (0.22 | ) | (0.20 | ) | (0.16 | ) | (0.17 | ) | (0.05 | ) | |||||||||
Capital gains | (0.00 | ) | (0.51 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.10 | ) | (0.73 | ) | (0.20 | ) | (0.16 | ) | (0.17 | ) | (0.05 | ) | |||||||||
Net asset value, end of period | $ | 15.52 | $ | 16.64 | $ | 16.18 | $ | 15.22 | $ | 14.00 | $ | 13.35 | |||||||||
Total return | - -6.18 | % | 7.16 | % | 7.67 | % | 9.89 | % | 6.16 | % | 3.43 | % | |||||||||
Net assets, end of period (in millions) | $31 | $27 | $28 | $38 | $44 | $53 | |||||||||||||||
Ratio of expenses to average net assets | 1.28 | %(2) | 1.28 | % | 1.26 | % | 1.26 | % | 1.30 | % | 1.36 | %(2) | |||||||||
Ratio of net investment income to average net assets | 1.19 | %(2) | 1.27 | % | 1.16 | % | 1.15 | % | 1.25 | % | 0.97 | %(2) | |||||||||
Portfolio turnover rate | 16 | % | 9 | % | 23 | % | 49 | % | 37 | % | 29 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF
IVY GLOBAL NATURAL RESOURCES FUND
Portfolio Highlights
On September 30, 2008, Ivy Global Natural Resources Fund had net assets totaling $5,568,222
(in thousands) invested in a diversified portfolio of:
54.43% | Foreign Common Stocks | |
42.19% | Domestic Common Stocks | |
3.38% | Cash and Cash Equivalents, Corporate Debt Securities and Preferred Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested by country and by industry, respectively, as follows:
Country WeightingsNorth America | $ | 49.94 | |||
United States | $ | 42.38 | |||
Canada | $ | 7.56 | |||
South America | $ | 18.65 | |||
Brazil | $ | 17.70 | |||
Other South America(1) | $ | 0.95 | |||
Europe | $ | 17.21 | |||
Russia | $ | 8.13 | |||
Other Europe(2) | $ | 5.17 | |||
Norway | $ | 3.91 | |||
Pacific Basin(3) | $ | 4.66 | |||
Bahamas/Caribbean | $ | 3.99 | |||
Cayman Islands | $ | 3.66 | |||
Other Bahamas/Caribbean(4) | $ | 0.33 | |||
Other(5) | $ | 3.02 | |||
Middle East(6) | $ | 1.83 | |||
Cash and Cash Equivalents | $ | 0.70 |
(1)Includes $0.95 Chile.
(2)Includes $0.69 France, $2.56 Germany, $0.33 Luxembourg, $0.33 Netherlands and
$1.26 United Kingdom.
(3)Includes $0.59 Australia, $1.74 China, $0.23 Hong Kong, $0.71 Indonesia, $0.19 Philippines,
$0.43 Singapore, $0.09 Taiwan and $0.68 Thailand.
(4)Includes $0.33 Bermuda.
(5)Includes $2.41 Panama and $0.61 South Africa.
(6)Includes $0.26 Cyprus, $1.10 Israel and $0.47 Kazakhstan.
Sector WeightingsEnergy Stocks | $ | 45.76 | |||
Materials Stocks | $ | 32.25 | |||
Industrials Stocks | $ | 11.84 | |||
Utilities Stocks | $ | 4.67 | |||
Information Technology Stocks | $ | 3.41 | |||
Miscellaneous Stocks(7) | $ | 1.27 | |||
Cash and Cash Equivalents and Corporate Debt Securities | $ | 0.80 |
(7)Includes $0.87 Financials Stocks and $0.40 Consumer Staples Stocks.
The Investments of Ivy Global Natural Resources Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | | Shares | Value | ||||
Australia - 0.59% | |||||||
BHP Billiton Limited, ADR | 195 | $ | 10,133 | ||||
Paladin Energy Ltd (A)(B) | 6,206 | 19,767 | |||||
Sino Gold Mining Limited (A)(B) | 328 | 1,049 | |||||
Sino Gold Mining Limited (A)(B)(C) | 612 | 1,959 | |||||
32,908 | |||||||
Bermuda - 0.33% | |||||||
Bunge Limited | 250 | 15,795 | |||||
Katanga Mining Limited (A)(B) | 546 | 2,579 | |||||
18,374 | |||||||
Brazil - 15.21% | |||||||
Aracruz Celulose S.A., ADR | 300 | 11,013 | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP (B) | 490 | 6,790 | |||||
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP, ADR | 490 | 13,892 | |||||
Companhia de Saneamento de Minas Gerais (B) | 4,410 | 46,814 | |||||
Companhia Energetica de Minas Gerais - CEMIG, ADR | 2,940 | 58,035 | |||||
Companhia Siderurgica Nacional, ADR | 1,100 | 23,386 | |||||
Companhia Vale do Rio Doce, ADR | 11,773 | 208,380 | |||||
CPFL Energia S.A. (B) | 830 | 15,611 | |||||
Petroleo Brasileiro S.A.- PETROBRAS, ADR | 8,300 | 310,586 | |||||
Suzano Bahia Sul Papel E Celulose S.A. (B) | 9,700 | 83,751 | |||||
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (B) | 1,354 | 27,285 | |||||
Votorantim Celulose e Papel S.A. (B) | 1,000 | 15,361 | |||||
Votorantim Celulose e Papel S.A., ADR | 1,700 | 26,197 | |||||
847,101 | |||||||
Canada - 7.56% | |||||||
Aquiline Resources Inc. (A)(B) | 2,016 | 7,900 | |||||
ARISE Technologies Corporation (A)(B) | 5,000 | 4,134 | |||||
Atacama Minerals Corp. (A)(B)(D) | 5,880 | 2,818 | |||||
Canadian Natural Resources Limited (A)(B) | 500 | 34,296 | |||||
First Quantum Minerals Ltd. (B) | 655 | 24,633 | |||||
MGM Energy Corp. (A)(B) | 12,543 | 5,775 | |||||
Pason Systems Inc. (B) | 1,000 | 12,309 | |||||
Potash Corporation of Saskatchewan Inc. | 2,300 | 303,623 | |||||
Sino-Forest Corporation (A)(B)(C) | 2,011 | 25,336 | |||||
420,824 | |||||||
Cayman Islands - 3.66% | |||||||
China High Speed Transmission Equipment Group Co., Ltd. (B) | 13,700 | 25,074 | |||||
JA Solar Holdings Co., Ltd., ADR (A) | 5,500 | 57,997 | |||||
Noble Corporation | 1,225 | 53,777 | |||||
Subsea 7 Inc. (A)(B) | 2,940 | 39,793 | |||||
Suntech Power Holdings Co., Ltd., ADR (A) | 750 | 26,903 | |||||
203,544 | |||||||
Chile - 0.95% | |||||||
Sociedad Quimica y Minera de Chile S.A., ADR | 2,100 | 52,941 | |||||
China - 1.74% | |||||||
Yingli Green Energy Holding Company Limited, ADR (A)(D) | 8,800 | 96,976 | |||||
Cyprus - 0.26% | |||||||
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(E) | 3,630 | 14,520 | |||||
France - 0.69% | |||||||
Saft Groupe SA (B) | 150 | 5,940 | |||||
Vallourec (B) | 150 | 32,367 | |||||
38,307 | |||||||
Germany - 2.56% | |||||||
Q-Cells AG (A)(B) | 250 | 21,253 | |||||
SGL Carbon AG (A)(B) | 1,960 | 77,864 | |||||
Wacker Chemie AG (A)(B) | 300 | 43,342 | |||||
142,459 | |||||||
Hong Kong - 0.23% | |||||||
Fushan International Energy Group Limited (A)(B) | 6,850 | 2,644 | |||||
Guangdong Investment Limited (B) | 39,200 | 9,258 | |||||
Harbin Power Equipment Company Limited (A)(B) | 1,165 | 835 | |||||
12,737 | |||||||
Indonesia - 0.71% | |||||||
PT Bumi Resources Tbk (B) | 24,102 | 8,016 | |||||
PT Indo Tambangraya Megah Tbk. (A)(B) | 3,210 | 7,398 | |||||
PT Perusahaan Perkebunan London Sumatra Indonesia Tbk (A)(B) | 8,716 | 3,230 | |||||
PT Tambang Batubara Bukit Asam (Persero) Tbk (A)(B) | 21,500 | 21,074 | |||||
39,718 | |||||||
Israel - 1.10% | |||||||
Israel Chemicals Ltd. (A)(B) | 4,250 | 61,081 | |||||
Kazakhstan - 0.47% | |||||||
Joint Stock Company KazMunaiGas Exploration Production, GDR (B) | 1,650 | 26,096 | |||||
Luxembourg - 0.33% | |||||||
Tenaris S.A., ADR | 500 | 18,645 | |||||
Netherlands - 0.33% | |||||||
AMG Advanced Metallurgical Group N.V. (A)(B) | 450 | 18,409 | |||||
Norway - 3.91% | |||||||
Aker Solutions ASA (B) | 3,425 | 55,462 | |||||
Renewable Energy Corporation ASA (A)(B) | 6,850 | 126,976 | |||||
SeaDrill Limited (B) | 1,700 | 35,221 | |||||
217,659 | |||||||
Panama - 2.41% | |||||||
McDermott International, Inc. (A) | 5,250 | 134,138 | |||||
Philippines - 0.19% | |||||||
Energy Development Corporation (B) | 98,000 | 8,536 | |||||
Manila Water Company, Inc. (A)(B) | 5,850 | 2,089 | |||||
10,625 | |||||||
Russia - 8.13% | |||||||
OAO LUKOIL, ADR | 525 | 31,303 | |||||
OAO TMK, GDR (B) | 980 | 24,812 | |||||
Open Joint Stock Company Gazprom, ADR (B) | 9,500 | 303,586 | |||||
Uralkali Group, GDR (A)(B) | 2,940 | 93,049 | |||||
452,750 | |||||||
Singapore - 0.43% | |||||||
Indofood Agri Resources Ltd. (A)(B) | 6,115 | 3,400 | |||||
Straits Asia Resources Limited (A)(B) | 19,600 | 20,598 | |||||
23,998 | |||||||
South Africa - 0.61% | |||||||
Impala Platinum Holdings Limited (B) | 1,673 | 34,155 | |||||
Taiwan - 0.09% | |||||||
Epistar Corporation (A)(B) | 3,888 | 5,276 | |||||
Thailand - 0.68% | |||||||
Banpu Public Company Limited (A)(B) | 3,250 | 28,619 | |||||
Banpu Public Company Limited, Registered Shares (A)(B) | 1,000 | 8,959 | |||||
37,578 | |||||||
United Kingdom - 1.26% | |||||||
Eurasian Natural Resources Corporation PLC (A)(B) | 3,000 | 27,318 | |||||
Pangea DiamondFields plc (A)(B)(C) | 2,150 | 516 | |||||
Randgold Resources Limited, ADR | 1,030 | 42,163 | |||||
69,997 | |||||||
United States - 42.19% | |||||||
Allegheny Technologies Incorporated | 3,008 | 88,889 | |||||
Boardwalk Pipeline Partners, LP | 735 | 15,141 | |||||
Cameron International Corporation (A) | 2,130 | 82,090 | |||||
Celanese Corporation, Series A | 1,960 | 54,704 | |||||
Commercial Metals Company | 1,355 | 22,886 | |||||
Complete Production Services, Inc. (A) | 2,850 | 57,371 | |||||
Copano Energy, L.L.C., Units | 1,000 | 24,490 | |||||
Cytec Industries Inc. | 400 | 15,564 | |||||
DCP Midstream Partners, LP | 225 | 3,807 | |||||
Denbury Resources Inc. (A) | 500 | 9,520 | |||||
Domtar Corporation (A) | 22,040 | 101,383 | |||||
Enbridge Energy Partners, L.P. | 165 | 6,544 | |||||
Energy Recovery, Inc. (A) | 980 | 9,266 | |||||
Energy Transfer Equity, L.P. | 900 | 19,575 | |||||
Energy Transfer Partners, L.P. | 1,500 | 55,245 | |||||
Enterprise Products Partners L.P. | 1,000 | 25,770 | |||||
First Solar, Inc. (A) | 506 | 95,629 | |||||
FMC Corporation | 200 | 10,278 | |||||
Foster Wheeler Ltd. (A) | 335 | 12,116 | |||||
Freeport-McMoRan Copper & Gold Inc., Class B | 850 | 48,323 | |||||
GrafTech International Ltd. (A) | 5,500 | 83,105 | |||||
Halliburton Company (F) | 5,250 | 170,048 | |||||
Hess Corporation | 1,030 | 84,542 | |||||
Intrepid Potash, Inc. (A) | 500 | 15,070 | |||||
Magellan Midstream Partners, L.P. (A) | 116 | 3,768 | |||||
MarkWest Energy Partners, L.P. | 375 | 9,480 | |||||
Massey Energy Company (D) | 5,000 | 178,350 | |||||
Mosaic Company | 2,906 | 197,693 | |||||
National Oilwell Varco, Inc. (A) | 2,500 | 125,575 | |||||
Peabody Energy Corporation | 3,300 | 148,500 | |||||
Petrohawk Energy Corporation (A) | 11,000 | 237,930 | |||||
Plains All American Pipeline, L.P. | 800 | 31,696 | |||||
Regency Energy Partners LP | 500 | 9,132 | |||||
Rockwood Holdings, Inc. (A) | 3,100 | 79,546 | |||||
Shaw Group Inc. (The) (A) | 750 | 23,048 | |||||
Smith International, Inc. | 735 | 43,100 | |||||
Targa Resources Partners LP | 400 | 6,836 | |||||
Transocean Inc. | 980 | 107,643 | |||||
Verso Paper Holdings LLC (D) | 3,920 | 10,349 | |||||
Williams Partners L.P. | 980 | 25,333 | |||||
2,349,335 | |||||||
TOTAL COMMON STOCKS - 96.62% | | | | | $ | 5,380,151 | |
(Cost: $6,562,652) | |||||||
PREFERRED STOCKS | | ||||||
Brazil - 2.39% | |||||||
Bradespar S.A. (B) | 3,530 | 48,009 | |||||
CESP - Companhia Energetica de Sao Paulo (B) | 5,219 | 45,228 | |||||
Companhia Energetica de Minas Gerais - CEMIG (B) | 2,000 | 39,203 | |||||
132,440 | |||||||
United States - 0.19% | |||||||
Konarka Technologies, Inc., 8.0% Cumulative (A)(E) | 3,500 | 10,850 | |||||
TOTAL PREFERRED STOCKS - 2.58% | | | | | $ | 143,290 | |
(Cost: $171,503) | |||||||
CORPORATE DEBT SECURITIES | Principal | ||||||
Brazil | |||||||
Bahia Sul Celulose S.A., | |||||||
8.614%, 12-1-12 (C)(G)(H) | BRL10,692 | 5,619 | |||||
TOTAL CORPORATE DEBT SECURITIES - 0.10% | | | $ | 5,619 | |||
(Cost: $5,165) | |||||||
SHORT-TERM SECURITIES | ||||||
---|---|---|---|---|---|---|
Repurchase Agreements | ||||||
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-08 to be repurchased at $29,762, | ||||||
0.050%, 10-1-08 (I) | $ | 29,762 | 29,762 | |||
TOTAL SHORT-TERM SECURITIES - 0.53% | | | | $ | 29,762 | |
(Cost: $29,762) | ||||||
TOTAL INVESTMENT SECURITIES - 99.83% | | | | $ | 5,558,822 | |
(Cost: $6,769,082) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.17% | | | 9,400 | |||
NET ASSETS - 100.00% | | | | $ | 5,568,222 | |
Notes to Schedule of Investments | |||||||||||
The following forward currency contracts were outstanding at September 30, 2008: | |||||||||||
Type | Currency | Currency Amount Covered by Contract | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||
Sell | British Pound | 1,925 | 10-30-08 | $ | 58 | $ | - | ||||
Sell | British Pound | 1,200 | 11-6-08 | 193 | - | ||||||
Sell | British Pound | 530 | 12-18-08 | - | 7 | ||||||
Sell | Euro | 5,000 | 10-30-08 | 766 | - | ||||||
Sell | Euro | 1,000 | 11-6-08 | 81 | - | ||||||
Sell | Euro | 28,000 | 12-4-08 | 737 | - | ||||||
Sell | Norwegian Krone | 12,000 | 10-9-08 | 291 | - | ||||||
Sell | Norwegian Krone | 75,000 | 10-16-08 | 2,025 | - | ||||||
Sell | Norwegian Krone | 75,000 | 10-23-08 | 1,872 | - | ||||||
Sell | Norwegian Krone | 75,000 | 10-30-08 | 1,707 | - | ||||||
Sell | Norwegian Krone | 110,000 | 11-6-08 | 2,362 | - | ||||||
Sell | Norwegian Krone | 225,000 | 11-20-08 | 2,990 | - | ||||||
Sell | Norwegian Krone | 139,600 | 12-4-08 | 1,442 | - | ||||||
Sell | South African Rand | 69,000 | 10-8-08 | 538 | - | ||||||
Sell | South African Rand | 92,000 | 10-22-08 | 828 | - | ||||||
Sell | South African Rand | 70,000 | 10-29-08 | 701 | - | ||||||
Sell | South African Rand | 36,000 | 11-5-08 | 252 | - | ||||||
$ | 16,843 | $ | 7 | ||||||||
(A)No dividends were paid during the preceding 12 months. | |||||||||||
(B)Listed on an exchange outside the United States. |
(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, 2008, the total value of these securities amounted to $33,430 or 0.60% of net assets. | ||||||||||
(D)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities. | ||||||||||
(E)Restricted security. At September 30, 2008, the following restricted securities were owned: | ||||||||||
Security | Acquisition Date | Shares | Cost | Market Value | ||||||
Buried Hill Energy (Cyprus) Public Company Limited: | 5-1-07 | 3,335 | $ | 5,003 | $ | 13,340 | ||||
4-17-08 | 295 | 1,180 | 1,180 | |||||||
Konarka Technologies, Inc. | 8-31-07 | 3,500 | 10,850 | 10,850 | ||||||
$ | 17,033 | $ | 25,370 | |||||||
The total value of these securities represented approximately 0.46% of net assets at September 30, 2008. | ||||||||||
(F)Security serves as cover for the following written option outstanding at September 30, 2008: |
Underlying Security | Contracts Subject to Call | Expiration Month/ Exercise Price | Premium Received | Market Value | ||||||
Halliburton Company | 10 | October/55.0 | $ | 1,832 | $ | 20 | ||||
(G)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008. |
(H)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real) |
(I)Collateralized by $26,699 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $30,156. |
Securities with an aggregate market value of $1,216,495, representing 21.85% of net assets, have been valued in good faith by the Valuation Committee subject to the supervision of the Board of Trustees. |
The following acronyms are used throughout this portfolio: ADR = American Depositary Receipts GDR = Global Depositary Receipts |
Market Sector Diversification | |||
(as a % of net assets) | |||
Energy | 45.76% | ||
Materials | 32.35% | ||
Industrials | 11.84% | ||
Utilities | 4.67% | ||
Information Technology | 3.41% | ||
Financials | 0.87% | ||
Consumer Staples | 0.40% | ||
Other+ | 0.70% | ||
+Includes cash and cash equivalents and other assets and liabilities | |||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY GLOBAL NATURAL RESOURCES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: Securities (cost - $6,371,290) | $ | 5,270,329 | ||
Affiliated company (cost - $397,792) | 288,493 | |||
5,558,822 | ||||
Cash | 54,401 | |||
Unrealized appreciation on forward currency contracts | 16,843 | |||
Cash denominated in foreign currencies (cost - $5,694) | 5,811 | |||
Receivables: | ||||
Investment securities sold | 390,371 | |||
Fund shares sold | 22,302 | |||
Dividends and interest | 9,469 | |||
Prepaid and other assets | 119 | |||
Total assets | 6,058,138 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 463,446 | |||
Payable to Fund shareholders | 15,207 | |||
Accrued management fee | 4,366 | |||
Accrued distribution and service fees | 3,086 | |||
Accrued shareholder servicing | 2,633 | |||
Outstanding written options at value (premium received - $1,832) | 20 | |||
Accrued accounting services fee | 15 | |||
Accrued administrative fee | 8 | |||
Unrealized depreciation on forward currency contracts | 7 | |||
Other | 1,128 | |||
Total liabilities | 489,916 | |||
Total net assets | $ | 5,568,222 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 6,340,776 | ||
Accumulated undistributed income (loss): | ||||
Accumulated net investment loss | (98,272 | ) | ||
Accumulated net realized gain on investment transactions | 516,859 | |||
Net unrealized depreciation in value of investments | (1,191,141 | ) | ||
Net assets applicable to outstanding units of capital | $ | 5,568,222 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $25.51 | |||
Class B | $23.84 | |||
Class C | $23.29 | |||
Class E | $25.36 | |||
Class I | $25.70 | |||
Class R | $25.32 | |||
Class Y | $25.59 | |||
Advisor Class | $25.30 | |||
Capital shares outstanding: | ||||
Class A | 133,923 | |||
Class B | 9,387 | |||
Class C | 48,907 | |||
Class E | 123 | |||
Class I | 7,919 | |||
Class R | 974 | |||
Class Y | 21,764 | |||
Advisor Class | 10 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY GLOBAL NATURAL RESOURCES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $4,157) | $ | 56,231 | ||
Dividends from affiliates | 120 | |||
Interest and amortization (net of foreign withholding taxes of $42) | 1,020 | |||
Total income | 57,371 | |||
Expenses: | ||||
Investment management fee | 33,931 | |||
Distribution and service fees: | ||||
Class A | 6,694 | |||
Class B | 1,748 | |||
Class C | 8,973 | |||
Class E | 5 | |||
Class R | 78 | |||
Class Y | 1,097 | |||
Shareholder servicing: | ||||
Class A | 5,382 | |||
Class B | 403 | |||
Class C | 1,578 | |||
Class E | 21 | |||
Class I | 116 | |||
Class R | 31 | |||
Class Y | 673 | |||
Advisor Class | –– | * | ||
Custodian fees | 1,010 | |||
Accounting services fee | 87 | |||
Legal fees | 65 | |||
Administrative fee | 50 | |||
Audit fees | 32 | |||
Other | 1,369 | |||
Total | 63,343 | |||
Less expenses in excess of limit | (211 | ) | ||
Total expenses | 63,132 | |||
Net investment loss | (5,761 | ) | ||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS | ||||
Realized net loss on securities** | $ | (281,075 | ) | |
Realized net gain on forward currency contracts | 62,182 | |||
Realized net gain on written options | 6,206 | |||
Realized net loss on foreign currency transactions | (5,934 | ) | ||
Realized net loss on investments | (218,621 | ) | ||
Unrealized depreciation in value of securities during the period*** | (2,325,002 | ) | ||
Unrealized appreciation in value of forward currency contracts during the period | 16,574 | |||
Unrealized appreciation in value of written options during the period | 1,812 | |||
Unrealized appreciation in value of foreign currency exchange transactions during the period | 455 | |||
Unrealized depreciation in value of investments during the period | (2,306,161 | ) | ||
Net loss on investments | (2,524,782 | ) | ||
Net decrease in net assets resulting from operations | $ | (2,530,543 | ) | |
*Not shown due to rounding.
**Includes $3,662 of realized loss on affiliated securities.
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment loss | $ | (5,761 | ) | $ | (3,673 | ) | ||
Realized net gain (loss) on investments | (218,621 | ) | 1,263,117 | |||||
Unrealized appreciation (depreciation) | (2,306,161 | ) | 170,936 | |||||
Net increase (decrease) in net assets resulting from operations | (2,530,543 | ) | 1,430,380 | |||||
Distributions to shareholders from: (1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (65,248 | ) | ||||
Class B | (–– | ) | (695 | ) | ||||
Class C | (–– | ) | (7,927 | ) | ||||
Class E | (–– | ) | (18 | ) | ||||
Class I | (–– | ) | (846 | ) | ||||
Class R | (–– | ) | (226 | ) | ||||
Class Y | (–– | ) | (11,854 | ) | ||||
Advisor Class | (–– | ) | (7 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (404,076 | ) | ||||
Class B | (–– | ) | (30,582 | ) | ||||
�� Class C | (–– | ) | (149,863 | ) | ||||
Class E | (–– | ) | (168 | ) | ||||
Class I | (–– | ) | (3,528 | ) | ||||
Class R | (–– | ) | (1,246 | ) | ||||
Class Y | (–– | ) | (56,028 | ) | ||||
Advisor Class | (- | ) | (30 | ) | ||||
(- | ) | (732,342 | ) | |||||
Capital share transactions | (75,005 | ) | 2,390,679 | |||||
Total increase (decrease) | (2,605,548 | ) | 3,088,717 | |||||
NET ASSETS | ||||||||
Beginning of period | 8,173,770 | 5,085,053 | ||||||
End of period | $ | 5,568,222 | $ | 8,173,770 | ||||
Accumulated net investment loss | $ | (98,272 | ) | $ | (86,577 | ) | ||
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 36.53 | $ | 31.67 | $ | 30.13 | $ | 22.65 | $ | 17.63 | $ | 16.69 | $ | 11.50 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.01 | (1) | 0.05 | (1) | 0.17 | (1) | 0.12 | (0.04 | ) | 0.03 | 0.10 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (11.03 | )(1) | 8.54 | (1) | 4.40 | (1) | 8.88 | 5.06 | 0.91 | 5.14 | ||||||||||||||
Total from investment operations | (11.02 | ) | 8.59 | 4.57 | 9.00 | 5.02 | 0.94 | 5.24 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.52 | ) | (0.16 | ) | (0.00 | ) | (0.00 | )* | (0.00 | ) | (0.05 | ) | ||||||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.73 | ) | (3.03 | ) | (1.52 | ) | (0.00 | )* | (0.00 | ) | (0.05 | ) | ||||||||||
Net asset value, end of period | $ | 25.51 | $ | 36.53 | $ | 31.67 | $ | 30.13 | $ | 22.65 | $ | 17.63 | $ | 16.69 | ||||||||||
Total return(2) | - -30.17 | % | 26.65 | % | 15.47 | % | 40.76 | % | 28.50 | % | 5.63 | % | 45.61 | % | ||||||||||
Net assets, end of period (in millions) | $3,417 | $5,168 | $3,360 | $2,343 | $895 | $192 | $95 | |||||||||||||||||
Ratio of expenses to average net assets | 1.32 | %(3) | 1.27 | % | 1.31 | % | 1.40 | % | 1.55 | % | 1.65 | %(3) | 1.89 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.03 | %(3) | 0.14 | % | 0.57 | % | 0.73 | % | - -0.52 | % | - -0.80 | %(3) | - -0.66 | % | ||||||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % |
*Not shown due to rounding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 34.27 | $ | 29.78 | $ | 28.57 | $ | 21.72 | $ | 17.04 | $ | 16.16 | $ | 11.19 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.13 | )(1) | (0.23 | )(1) | (0.05 | ) | 0.03 | (0.04 | ) | (0.01 | ) | (0.06 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (10.30 | )(1) | 8.00 | (1) | 4.13 | 8.34 | 4.72 | 0.89 | 5.03 | |||||||||||||||
Total from investment operations | (10.43 | ) | 7.77 | 4.08 | 8.37 | 4.68 | 0.88 | 4.97 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.07 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.28 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 23.84 | $ | 34.27 | $ | 29.78 | $ | 28.57 | $ | 21.72 | $ | 17.04 | $ | 16.16 | ||||||||||
Total return | - -30.44 | % | 25.64 | % | 14.55 | % | 39.59 | % | 27.46 | % | 5.45 | % | 44.42 | % | ||||||||||
Net assets, end of period (in millions) | $224 | $345 | $272 | $223 | $110 | $30 | $21 | |||||||||||||||||
Ratio of expenses to average net assets | 2.09 | %(2) | 2.07 | % | 2.12 | % | 2.23 | % | 2.39 | % | 2.42 | %(2) | 2.90 | % | ||||||||||
Ratio of net investment loss to average net assets | - -0.74 | %(2) | - -0.64 | % | - -0.24 | % | - -0.10 | % | - -1.35 | % | - -1.59 | %(2) | - -1.54 | % | ||||||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 33.47 | $ | 29.19 | $ | 28.04 | $ | 21.32 | $ | 16.72 | $ | 15.86 | $ | 10.97 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.12 | )(1) | (0.20 | )(1) | (0.03 | ) | 0.02 | (0.09 | ) | 0.00 | 0.04 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (10.06 | )(1) | 7.86 | (1) | 4.05 | 8.22 | 4.69 | 0.86 | 4.85 | |||||||||||||||
Total from investment operations | (10.18 | ) | 7.66 | 4.02 | 8.24 | 4.60 | 0.86 | 4.89 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.17 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.38 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value, end of period | $ | 23.29 | $ | 33.47 | $ | 29.19 | $ | 28.04 | $ | 21.32 | $ | 16.72 | $ | 15.86 | ||||||||||
Total return | - -30.41 | % | 25.72 | % | 14.65 | % | 39.72 | % | 27.51 | % | 5.42 | % | 44.58 | % | ||||||||||
Net assets, end of period (in millions) | $1,139 | $1,749 | $1,138 | $801 | $312 | $64 | $34 | |||||||||||||||||
Ratio of expenses to average net assets | 2.03 | %(2) | 1.99 | % | 2.04 | % | 2.15 | % | 2.31 | % | 2.38 | %(2) | 2.65 | % | ||||||||||
Ratio of net investment loss to average net assets | - -0.69 | %(2) | - -0.58 | % | - -0.16 | % | - -0.02 | % | - -1.28 | % | - -1.54 | %(2) | - -1.48 | % | ||||||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % |
(1)Based on average weekly shares outstanding.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 36.41 | $ | 32.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | (0.10 | )(2) | 0.03 | ||||||
Net realized and unrealized gain (loss) on investments | (10.95 | )(2) | 7.94 | ||||||
Total from investment operations | (11.05 | ) | 7.97 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.35 | ) | |||||
Capital gains | (0.00 | ) | (3.21 | ) | |||||
Total distributions | (0.00 | ) | (3.56 | ) | |||||
Net asset value, end of period | $ | 25.36 | $ | 36.41 | |||||
Total return(3) | - -30.35 | % | 24.42 | % | |||||
Net assets, end of period (in millions) | $3 | $3 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.87 | %(4) | 2.29 | %(4) | |||||
Ratio of net investment loss to average net assets including expense waiver | - -0.53 | %(4) | - -1.02 | %(4) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.22 | %(4) | 2.29 | %(4)(5) | |||||
Ratio of net investment loss to average net assets excluding expense waiver | - -0.88 | %(4) | - -1.02 | %(4)(5) | |||||
Portfolio turnover rate | 114 | % | 142 | %(6) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL NATURAL RESOURCES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 36.74 | $ | 32.16 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.06 | (2) | 0.05 | (2) | |||||
Net realized and unrealized gain (loss) on investments | (11.10 | )(2) | 8.51 | (2) | |||||
Total from investment operations | (11.04 | ) | 8.56 | ||||||
Less distributions from: | |||||||||
Net investment income | (0.00 | ) | (0.77 | ) | |||||
Capital gains | (0.00 | ) | (3.21 | ) | |||||
Total distributions | (0.00 | ) | (3.98 | ) | |||||
Net asset value, end of period | $ | 25.70 | $ | 36.74 | |||||
Total return | - -30.05 | % | 26.14 | % | |||||
Net assets, end of period (in millions) | $203 | $71 | |||||||
Ratio of expenses to average net assets | 1.00 | %(3) | 1.00 | %(3) | |||||
Ratio of net investment income to average net assets | 0.36 | %(3) | 0.30 | %(3) | |||||
Portfolio turnover rate | 114 | % | 142 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 March 31, | For the period from 12-29-05(1) to | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 3-31-06 | ||||||||||||
Net asset value, beginning of period | $ | 36.30 | $ | 31.62 | $ | 30.10 | $ | 26.11 | |||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income | (0.04 | )(2) | 0.24 | 0.05 | (2) | 0.06 | |||||||||
Net realized and unrealized gain (loss) on investments | (10.94 | )(2) | 8.23 | 4.44 | (2) | 3.93 | |||||||||
Total from investment operations | (10.98 | ) | 8.47 | 4.49 | 3.99 | ||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.00 | ) | (0.58 | ) | (0.10 | ) | (0.00 | ) | |||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (0.00 | ) | |||||||
Total distributions | (0.00 | ) | (3.79 | ) | (2.97 | ) | (0.00 | ) | |||||||
Net asset value, end of period | $ | 25.32 | $ | 36.30 | $ | 31.62 | $ | 30.10 | |||||||
Total return | - -30.25 | % | 26.31 | % | 15.20 | % | 15.28 | % | |||||||
Net assets, end of period (in thousands) | $24,657 | $24,623 | $3,893 | $115 | |||||||||||
Ratio of expenses to average net assets | 1.54 | %(3) | 1.55 | % | 1.58 | % | 1.69 | %(3) | |||||||
Ratio of net investment income (loss) to average net assets | - -0.20 | %(3) | - -0.22 | % | 0.23 | % | 0.82 | %(3) | |||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 36.62 | $ | 31.84 | $ | 30.27 | $ | 22.70 | $ | 17.66 | $ | 16.70 | $ | 12.60 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.03 | (2) | 0.17 | 0.21 | (2) | 0.24 | (2) | (0.02 | ) | 0.01 | 0.00 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (11.06 | )(2) | 8.50 | 4.43 | (2) | 8.85 | (2) | 5.13 | 0.95 | 4.16 | ||||||||||||||
Total from investment operations | (11.03 | ) | 8.67 | 4.64 | 9.09 | 5.11 | 0.96 | 4.16 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.68 | ) | (0.20 | ) | (0.00 | ) | (0.07 | ) | (0.00 | ) | (0.06 | ) | ||||||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (3.89 | ) | (3.07 | ) | (1.52 | ) | (0.07 | ) | (0.00 | ) | (0.06 | ) | ||||||||||
Net asset value, end of period | $ | 25.59 | $ | 36.62 | $ | 31.84 | $ | 30.27 | $ | 22.70 | $ | 17.66 | $ | 16.70 | ||||||||||
Total return | - -30.12 | % | 26.74 | % | 15.63 | % | 41.07 | % | 28.98 | % | 5.75 | % | 33.03 | % | ||||||||||
Net assets, end of period (in millions) | $557 | $813 | $311 | $116 | $21 | $4 | $1 | |||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.20 | %(3) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | %(3) | 1.39 | %(3) | ||||||||||
Ratio of net investment income (loss) to average net assets including expense waiver | 0.14 | %(3) | 0.16 | % | 0.66 | % | 0.91 | % | - -0.19 | % | - -0.35 | %(3) | - -0.54 | %(3) | ||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.25 | %(3) | 1.26 | % | 1.27 | % | 1.35 | % | 1.48 | % | 1.63 | %(3) | 1.39 | %(3)(4) | ||||||||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 0.09 | %(3) | 0.11 | % | 0.59 | % | 0.76 | % | - -0.47 | % | - -0.79 | %(3) | - -0.54 | %(3)(4) | ||||||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | %(5) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 12-31-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 36.16 | $ | 31.48 | $ | 29.92 | $ | 22.45 | $ | 17.47 | $ | 16.54 | $ | 11.43 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.26 | 0.31 | 0.13 | (0.14 | ) | (0.03 | ) | (0.58 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (10.89 | ) | 8.43 | 4.34 | 8.86 | 5.14 | 0.96 | 5.78 | ||||||||||||||||
Total from investment operations | (10.86 | ) | 8.69 | 4.65 | 8.99 | 5.00 | 0.93 | 5.20 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.80 | ) | (0.22 | ) | (0.00 | ) | (0.02 | ) | (0.00 | ) | (0.09 | ) | ||||||||||
Capital gains | (0.00 | ) | (3.21 | ) | (2.87 | ) | (1.52 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (4.01 | ) | (3.09 | ) | (1.52 | ) | (0.02 | ) | (0.00 | ) | (0.09 | ) | ||||||||||
Net asset value, end of period | $ | 25.30 | $ | 36.16 | $ | 31.48 | $ | 29.92 | $ | 22.45 | $ | 17.47 | $ | 16.54 | ||||||||||
Total return | - -30.03 | % | 27.09 | % | 15.86 | % | 41.09 | % | 28.63 | % | 5.62 | % | 45.55 | % | ||||||||||
Net assets, end of period (in thousands) | $243 | $375 | $322 | $368 | $476 | $512 | $484 | |||||||||||||||||
Ratio of expenses to average net assets | 0.94 | %(2) | 0.93 | % | 0.95 | % | 1.25 | % | 1.47 | % | 1.57 | %(2) | 2.19 | % | ||||||||||
Ratio of net investment income (loss) to average net assets | 0.41 | %(2) | 0.52 | % | 0.94 | % | 0.97 | % | - -0.36 | % | - -0.74 | %(2) | - -0.41 | % | ||||||||||
Portfolio turnover rate | 114 | % | 142 | % | 106 | % | 104 | % | 110 | % | 29 | % | 58 | % |
(1)Class is closed.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY REAL ESTATE SECURITIES FUND
Portfolio Highlights
On September 30, 2008, Ivy Real Estate Securities Fund had net assets totaling $427,232 (in thousands) invested in a diversified portfolio of:
92.08% | Domestic Common Stocks and Investment Funds | |
7.04% | Cash and Cash Equivalents | |
0.88% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Financials Stocks | $ | 91.21 | |||
Cash and Cash Equivalents | $ | 7.04 | |||
Miscellaneous Stocks(1) | $ | 1.75 | |||
(1)Includes $0.76 Consumer Discretionary Stocks, $0.35 Health Care Stocks and $0.64 Telecommunication Services Stocks.
The Investments of Ivy Real Estate Securities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
COMMON STOCKS | | Shares | Value | ||||
Diversified Real Estate Activities - 0.50% | |||||||
DuPont Fabros Technology, Inc. | 139 | $ | 2,126 | ||||
Diversified REITs - 7.56% | |||||||
Liberty Property Trust | 36 | 1,359 | |||||
PS Business Parks, Inc. | 90 | 5,190 | |||||
Vornado Realty Trust | 207 | 18,845 | |||||
Washington Real Estate Investment Trust | 189 | 6,908 | |||||
32,302 | |||||||
Health Care Facilities - 0.35% | |||||||
Sun Healthcare Group, Inc. (A) | 103 | 1,513 | |||||
Hotels, Resorts & Cruise Lines - 0.76% | |||||||
Gaylord Entertainment Company (A) | 43 | 1,263 | |||||
Marriott International, Inc., Class A | 76 | 1,972 | |||||
3,235 | |||||||
Industrial REITs - 7.63% | |||||||
AMB Property Corporation | 145 | 6,587 | |||||
EastGroup Properties, Inc. | 63 | 3,077 | |||||
ProLogis | 555 | 22,912 | |||||
32,576 | |||||||
Office REITs - 17.12% | |||||||
Alexandria Real Estate Equities, Inc. | 68 | 7,627 | |||||
BioMed Realty Trust, Inc. | 135 | 3,571 | |||||
Boston Properties, Inc. | 187 | 17,496 | |||||
Corporate Office Properties Trust | 189 | 7,617 | |||||
Cousins Properties Incorporated | 107 | 2,710 | |||||
Digital Realty Trust, Inc. | 206 | 9,719 | |||||
Douglas Emmett, Inc. | 349 | 8,061 | |||||
Duke Realty Corporation | 7 | 167 | |||||
Kilroy Realty Corporation | 162 | 7,721 | |||||
Maguire Properties, Inc. | 83 | 493 | |||||
SL Green Realty Corp. | 123 | 7,951 | |||||
73,133 | |||||||
Real Estate Management & Development - 0.88% | |||||||
Brookfield Properties Corporation | 237 | 3,757 | |||||
Residential REITs - 12.75% | |||||||
American Campus Communities, Inc. | 79 | 2,667 | |||||
Apartment Investment and Management Company, ClassA | 108 | 3,793 | |||||
AvalonBay Communities, Inc. | 122 | 12,007 | |||||
BRE Properties, Inc., Class A | 135 | 6,630 | |||||
Camden Property Trust | 37 | 1,701 | |||||
Equity Residential | 257 | 11,405 | |||||
Essex Property Trust, Inc. | 106 | 12,590 | |||||
Mid-America Apartment Communities, Inc. | 75 | 3,691 | |||||
54,484 | |||||||
Retail REITs - 26.54% | |||||||
Acadia Realty Trust | 176 | 4,437 | |||||
Developers Diversified Realty Corporation | 210 | 6,652 | |||||
Federal Realty Investment Trust | 108 | 9,245 | |||||
General Growth Properties, Inc. | 212 | 3,200 | |||||
Kimco Realty Corporation | 347 | 12,833 | |||||
Macerich Company (The) | 206 | 13,137 | |||||
National Retail Properties, Inc. | 162 | 3,873 | |||||
Regency Centers Corporation | 128 | 8,556 | |||||
Saul Centers, Inc. | 65 | 3,275 | |||||
Simon Property Group, Inc. | 392 | 38,064 | |||||
Tanger Factory Outlet Centers, Inc. | 76 | 3,346 | |||||
Taubman Centers, Inc. | 136 | 6,785 | |||||
113,403 | |||||||
Specialized REITs - 17.26% | |||||||
Cogdell Spencer Inc. | 5 | 80 | |||||
Extra Space Storage Inc. | 23 | 352 | |||||
Health Care Property Investors, Inc. | 332 | 13,311 | |||||
Health Care REIT, Inc. | 139 | 7,372 | |||||
Healthcare Realty Trust Incorporated | 107 | 3,119 | |||||
Hersha Hospitality Trust | 313 | 2,329 | |||||
Host Hotels & Resorts, Inc. | 472 | 6,275 | |||||
LaSalle Hotel Properties | 119 | 2,766 | |||||
Nationwide Health Properties, Inc. | 166 | 5,976 | |||||
Public Storage, Inc. | 193 | 19,139 | |||||
Ventas, Inc. | 263 | 13,012 | |||||
73,731 | |||||||
Wireless Telecommunication Service - 0.64% | |||||||
American Tower Corporation, Class A (A) | 45 | 1,611 | |||||
Crown Castle International Corp. (A) | 39 | 1,121 | |||||
2,732 | |||||||
TOTAL COMMON STOCKS - 91.99% | | | | | $ | 392,992 | |
(Cost: $339,158) | |||||||
INVESTMENT FUNDS | | ||||||
---|---|---|---|---|---|---|---|
Sector Fund-Real Estate | |||||||
ProShares UltraShort Real Estate | 54 | $ | 4,142 | ||||
TOTAL INVESTMENT FUNDS - 0.97% | | | | | $ | 4,142 | |
(Cost: $4,195) | |||||||
SHORT-TERM SECURITIES | Principal | |||||
Commercial Paper - 4.90% | ||||||
Avon Capital Corp. (Avon Products, Inc.), | ||||||
2.050%, 10-8-08 | $ | 2,000 | 1,999 | |||
Coca-Cola Company (The), | ||||||
2.100%, 10-22-08 | 5,000 | 4,994 | ||||
Danaher Corporation, | ||||||
1.750%, 10-6-08 | 4,000 | 3,999 | ||||
E.I. du Pont de Nemours and Company, | ||||||
2.100%, 10-20-08 | 3,000 | 2,997 | ||||
Praxair Inc., | ||||||
2.100%, 10-6-08 | 3,772 | 3,771 | ||||
Walgreen Co., | ||||||
1.000%, 10-1-08 | 3,212 | 3,212 | ||||
20,972 | ||||||
United States Government Obligations - 2.11% | ||||||
United States Treasury Bills: | ||||||
0.100%, 10-9-08 | 4,000 | 4,000 | ||||
0.300%, 10-23-08 | 5,000 | 4,999 | ||||
8,999 | ||||||
TOTAL SHORT-TERM SECURITIES - 7.01% | | | | $ | 29,971 | |
(Cost: $29,970) | ||||||
TOTAL INVESTMENT SECURITIES - 99.97% | | | | $ | 427,105 | |
(Cost: $373,323) | ||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.03% | | | 127 | |||
NET ASSETS - 100.00% | | | | $ | 427,232 | |
Notes to Schedule of Investments |
(A)No dividends were paid during the preceding 12 months. |
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY REAL ESTATE SECURITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $373,323) | $ | 427,105 | ||
Receivables: | ||||
Investment securities sold | 2,811 | |||
Dividends and interest | 1,356 | |||
Fund shares sold | 536 | |||
Prepaid and other assets | 37 | |||
Total assets | 431,845 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 2,226 | |||
Payable to Fund shareholders | 1,655 | |||
Accrued management fee | 318 | |||
Accrued shareholder servicing | 197 | |||
Accrued distribution and service fees | 79 | |||
Due to custodian | 23 | |||
Accrued accounting services fee | 11 | |||
Other | 104 | |||
Total liabilities | 4,613 | |||
Total net assets | $ | 427,232 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 380,252 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 744 | |||
Accumulated net realized loss on investment transactions | (7,546 | ) | ||
Net unrealized appreciation in value of investments | 53,782 | |||
Net assets applicable to outstanding units of capital | $ | 427,232 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $19.23 | |||
Class B | $19.02 | |||
Class C | $19.11 | |||
Class E | $19.26 | |||
Class I | $19.34 | |||
Class R | $19.25 | |||
Class Y | $19.25 | |||
Capital shares outstanding: | ||||
Class A | 14,306 | |||
Class B | 703 | |||
Class C | 813 | |||
Class E | 29 | |||
Class I | 74 | |||
Class R | 12 | |||
Class Y | 6,282 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY REAL ESTATE SECURITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Dividends (net of foreign withholding taxes of $12) | $ | 5,204 | ||
Interest and amortization | 281 | |||
Total income | 5,485 | |||
Expenses (Note 2): | ||||
Investment management fee | 1,919 | |||
Shareholder servicing: | ||||
Class A | 678 | |||
Class B | 56 | |||
Class C | 42 | |||
Class E | 4 | |||
Class I | 1 | |||
Class R | –– | * | ||
Class Y | 93 | |||
Distribution and service fees: | ||||
Class A | 339 | |||
Class B | 67 | |||
Class C | 72 | |||
Class E | 1 | |||
Class R | 1 | |||
Class Y | 157 | |||
Accounting services fee | 68 | |||
Audit fees | 22 | |||
Custodian fees | 13 | |||
Legal fees | 1 | |||
Other | 152 | |||
Total | 3,686 | |||
Less expenses in excess of limit | (1 | ) | ||
Total expenses | 3,685 | |||
Net investment income | 1,800 | |||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS | ||||
Realized net loss on investments | (1,398 | ) | ||
Unrealized depreciation in value of investments during the period | (1,913 | ) | ||
Net loss on investments | (3,311 | ) | ||
Net decrease in net assets resulting from operations | $ | (1,511 | ) | |
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,800 | $ | 4,203 | ||||
Realized net gain (loss) on investments | (1,398 | ) | 15,420 | |||||
Unrealized depreciation | (1,913 | ) | (134,861 | ) | ||||
Net decrease in net assets resulting from operations | (1,511 | ) | (115,238 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (1,313 | ) | (1,960 | ) | ||||
Class B | (8 | ) | (8 | ) | ||||
Class C | (15 | ) | (17 | ) | ||||
Class E | (1 | ) | (1 | ) | ||||
Class I | (11 | ) | (15 | ) | ||||
Class R | (1 | ) | (1 | ) | ||||
Class Y | (839 | ) | (1,363 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (25,382 | ) | ||||
Class B | (–– | ) | (1,303 | ) | ||||
Class C | (–– | ) | (1,366 | ) | ||||
Class E | (–– | ) | (35 | ) | ||||
Class I | (–– | ) | (120 | ) | ||||
Class R | (–– | ) | (14 | ) | ||||
Class Y | (–– | ) | (12,133 | ) | ||||
(2,188 | ) | (43,718 | ) | |||||
Capital share transactions | 30,704 | (148,593 | ) | |||||
Total increase (decrease) | 27,005 | (307,549 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 400,227 | 707,776 | ||||||
End of period | $ | 427,232 | $ | 400,227 | ||||
Accumulated undistributed net investment income | $ | 744 | $ | 1,132 | ||||
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 7-31-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 19.34 | $ | 26.14 | $ | 23.11 | $ | 18.13 | $ | 16.99 | $ | 13.42 | $ | 11.93 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.20 | 0.19 | 0.10 | 0.15 | 0.15 | (1) | 0.62 | 0.48 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.22 | ) | (4.87 | ) | 4.05 | 5.81 | 1.93 | (1) | 3.38 | 1.72 | |||||||||||||||
Total from investment. operations | (0.02 | ) | (4.68 | ) | 4.15 | 5.96 | 2.08 | 4.00 | 2.20 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.15 | ) | (0.15 | ) | (0.18 | ) | (0.25 | ) | (0.24 | ) | (0.48 | ) | |||||||||||
Capital gains | (0.00 | ) | (1.97 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | (0.23 | ) | |||||||||||
Total distributions | (0.09 | ) | (2.12 | ) | (1.12 | ) | (0.98 | ) | (0.94 | ) | (0.43 | ) | (0.71 | ) | |||||||||||
Net asset value, end of period | $ | 19.23 | $ | 19.34 | $ | 26.14 | $ | 23.11 | $ | 18.13 | $ | 16.99 | $ | 13.42 | |||||||||||
Total return(2) | - -0.09 | % | - -18.13 | % | 18.09 | % | 33.53 | % | 12.09 | % | 29.78 | % | 19.65 | % | |||||||||||
Net assets, end of period (in millions) | $275 | $253 | $395 | $256 | $155 | $44 | $60 | ||||||||||||||||||
Ratio of expenses to average net assets including expense wavier | 1.78 | %(3) | 1.67 | % | 1.57 | % | 1.64 | % | 1.67 | % | 1.48 | %(3)(4) | 1.46 | % | |||||||||||
Ratio of net investment income to average net assets including expense wavier | 2.24 | %(3) | 0.70 | % | 0.54 | % | 0.91 | % | 0.95 | % | 4.35 | %(3)(4) | 2.95 | % | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.78 | %(3)(5) | 1.67 | %(5) | 1.57 | %(5) | 1.64 | %(5) | 1.67 | %(5) | 1.49 | %(3)(4) | 1.46 | %(5) | |||||||||||
Ratio of net investment income to average net assets excluding expense waiver | 2.24 | %(3)(5) | 0.70 | %(5) | 0.54 | %(5) | 0.91 | %(5) | 0.95 | %(5) | 4.34 | %(3)(4) | 2.95 | %(5) | |||||||||||
Portfolio turnover rate | 18 | % | 27 | % | 35 | % | 35 | % | 48 | % | 35 | % | 48 | % |
(1)Based on average weekly shares outstanding.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 19.15 | $ | 25.91 | $ | 23.00 | $ | 18.08 | $ | 16.97 | $ | 15.18 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | 0.12 | (0.08 | ) | (0.09 | ) | 0.01 | (0.07 | )(2) | 0.07 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.24 | ) | (4.79 | ) | 3.97 | 5.72 | 1.95 | (2) | 2.08 | ||||||||||||
Total from investment operations | (0.12 | ) | (4.87 | ) | 3.88 | 5.73 | 1.88 | 2.15 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.01 | ) | (0.01 | ) | (0.00 | ) | (0.01 | ) | (0.08 | ) | (0.17 | ) | |||||||||
Capital gains | (0.00 | ) | (1.88 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||
Total distributions | (0.01 | ) | (1.89 | ) | (0.97 | ) | (0.81 | ) | (0.77 | ) | (0.36 | ) | |||||||||
Net asset value, end of period | $ | 19.02 | $ | 19.15 | $ | 25.91 | $ | 23.00 | $ | 18.08 | $ | 16.97 | |||||||||
Total return | - -0.62 | % | - -18.98 | % | 16.93 | % | 32.19 | % | 10.91 | % | 14.46 | % | |||||||||
Net assets, end of period (in millions) | $13 | $13 | $22 | $15 | $10 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 2.89 | %(3) | 2.71 | % | 2.57 | % | 2.66 | % | 2.73 | % | 3.02 | %(3) | |||||||||
Ratio of net investment income (loss) to average net assets | 1.13 | %(3) | - -0.24 | % | - -0.42 | % | 0.01 | % | - -0.24 | % | - -5.40 | %(3) | |||||||||
Portfolio turnover rate | 18 | % | 27 | % | 35 | % | 35 | % | 48 | % | 35 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 19.22 | $ | 26.01 | $ | 23.04 | $ | 18.10 | $ | 16.99 | $ | 15.18 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | 0.14 | 0.00 | (0.06 | ) | 0.03 | 0.12 | 0.08 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | ) | (4.85 | ) | 4.00 | 5.73 | 1.82 | 2.09 | |||||||||||||
Total from investment operations | (0.09 | ) | (4.85 | ) | 3.94 | 5.76 | 1.94 | 2.17 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.02 | ) | (0.02 | ) | (0.00 | ) | (0.02 | ) | (0.14 | ) | (0.17 | ) | |||||||||
Capital gains | (0.00 | ) | (1.92 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||
Total distributions | (0.02 | ) | (1.94 | ) | (0.97 | ) | (0.82 | ) | (0.83 | ) | (0.36 | ) | |||||||||
Net asset value, end of period | $ | 19.11 | $ | 19.22 | $ | 26.01 | $ | 23.04 | $ | 18.10 | $ | 16.99 | |||||||||
Total return | - -0.47 | % | - -18.84 | % | 17.17 | % | 32.38 | % | 11.21 | % | 14.59 | % | |||||||||
Net assets, end of period (in millions) | $16 | $13 | $26 | $17 | $10 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 2.61 | %(2) | 2.50 | % | 2.39 | % | 2.46 | % | 2.49 | % | 2.82 | %(2) | |||||||||
Ratio of net investment income (loss) to average net assets | 1.43 | %(2) | 0.03 | % | - -0.28 | % | 0.15 | % | 0.14 | % | -4.46 | %(2) | |||||||||
Portfolio turnover rate | 18 | % | 27 | % | 35 | % | 35 | % | 48 | % | 35 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 19.36 | $ | 26.37 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.19 | (0.32 | )(2) | ||||||
Net realized and unrealized loss on investments | (0.26 | ) | (4.78 | )(2) | |||||
Total from investment operations | (0.07 | ) | (5.10 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.03 | ) | (0.03 | ) | |||||
Capital gains | (0.00 | ) | (1.88 | ) | |||||
Total distributions | (0.03 | ) | (1.91 | ) | |||||
Net asset value, end of period | $ | 19.26 | $ | 19.36 | |||||
Total return(3) | - -0.39 | % | - -19.55 | % | |||||
Net assets, end of period (in thousands) | $551 | $425 | |||||||
Ratio of expenses to average net assets including expense wavier | 2.39 | %(4) | 2.77 | %(4) | |||||
Ratio of net investment income (loss) to average net assets including expense wavier | 1.65 | %(4) | - -1.47 | %(4) | |||||
Ratio of expenses to average net assets excluding expense waiver | 2.88 | %(4) | 2.77 | %(4)(5) | |||||
Ratio of net investment income (loss) to average net assets excluding expense waiver | 1.16 | %(4) | - -1.47 | %(4)(5) | |||||
Portfolio turnover rate | 18 | % | 27 | %(6) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY REAL ESTATE SECURITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 19.43 | $ | 26.38 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.28 | (2) | 0.18 | (2) | |||||
Net realized and unrealized loss on investments | (0.22 | )(2) | (4.92 | )(2) | |||||
Total from investment operations | 0.06 | (4.74 | ) | ||||||
Less distributions from: | |||||||||
Net investment income | (0.15 | ) | (0.24 | ) | |||||
Capital gains | (0.00 | ) | (1.97 | ) | |||||
Total distributions | (0.15 | ) | (2.21 | ) | |||||
Net asset value, end of period | $ | 19.34 | $ | 19.43 | |||||
Total return | 0.28 | % | - -18.17 | % | |||||
Net assets, end of period (in millions) | $2 | $1 | |||||||
Ratio of expenses to average net assets | 1.16 | %(3) | 1.17 | %(3) | |||||
Ratio of net investment income to average net assets | 2.91 | %(3) | 0.75 | %(3) | |||||
Portfolio turnover rate | 18 | % | 27 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 March 31, | For the period from 12-29-05(1) to | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 3-31-06 | ||||||||||||
Net asset value, beginning of period | $ | 19.35 | $ | 26.14 | $ | 23.11 | $ | 20.55 | |||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | 0.25 | 0.12 | 0.15 | (0.20 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | (0.25 | ) | (4.81 | ) | 3.98 | 2.79 | |||||||||
Total from investment operations | 0.00 | (4.69 | ) | 4.13 | 2.59 | ||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.10 | ) | (0.13 | ) | (0.13 | ) | (0.03 | ) | |||||||
Capital gains | (0.00 | ) | (1.97 | ) | (0.97 | ) | (0.00 | ) | |||||||
Total distributions | (0.10 | ) | (2.10 | ) | (1.10 | ) | (0.03 | ) | |||||||
Net asset value, end of period | $ | 19.25 | $ | 19.35 | $ | 26.14 | $ | 23.11 | |||||||
Total return | 0.00 | % | - -18.12 | % | 17.98 | % | 12.59 | % | |||||||
Net assets, end of period (in thousands) | $242 | $175 | $158 | $113 | |||||||||||
Ratio of expenses to average net assets | 1.70 | %(2) | 1.68 | % | 1.68 | % | 1.73 | %(2) | |||||||
Ratio of net investment income (loss) to average net assets | 2.40 | %(2) | 0.26 | % | 0.43 | % | - -3.64 | %(2) | |||||||
Portfolio turnover rate | 18 | % | 27 | % | 35 | % | 35 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 19.35 | $ | 26.15 | $ | 23.12 | $ | 18.14 | $ | 16.99 | $ | 15.18 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.26 | 0.36 | 0.23 | 0.27 | 0.26 | (2) | 0.04 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.23 | ) | (4.99 | ) | 3.97 | 5.75 | 1.87 | (2) | 2.15 | ||||||||||||
Total from investment operations | 0.03 | (4.63 | ) | 4.20 | 6.02 | 2.13 | 2.19 | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.13 | ) | (0.20 | ) | (0.20 | ) | (0.24 | ) | (0.29 | ) | (0.19 | ) | |||||||||
Capital gains | (0.00 | ) | (1.97 | ) | (0.97 | ) | (0.80 | ) | (0.69 | ) | (0.19 | ) | |||||||||
Total distributions | (0.13 | ) | (2.17 | ) | (1.17 | ) | (1.04 | ) | (0.98 | ) | (0.38 | ) | |||||||||
Net asset value, end of period | $ | 19.25 | $ | 19.35 | $ | 26.15 | $ | 23.12 | $ | 18.14 | $ | 16.99 | |||||||||
Total return | 0.15 | % | - -17.89 | % | 18.32 | % | 33.86 | % | 12.40 | % | 14.78 | % | |||||||||
Net assets, end of period (in millions) | $121 | $120 | $265 | $216 | $148 | $91 | |||||||||||||||
Ratio of expenses to average net assets | 1.38 | %(3) | 1.38 | % | 1.37 | % | 1.39 | % | 1.44 | % | 1.60 | %(3) | |||||||||
Ratio of net investment income to average net assets | 2.62 | %(3) | 1.19 | % | 0.94 | % | 1.27 | % | 1.59 | % | 0.14 | %(3) | |||||||||
Portfolio turnover rate | 18 | % | 27 | % | 35 | % | 35 | % | 48 | % | 35 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY BOND FUND
Portfolio Highlights
On September 30, 2008, Ivy Bond Fund had net assets totaling $119,803 (in thousands) invested in a diversified portfolio of:
95.39% | Bonds | |
4.32% | Cash and Cash Equivalents | |
0.29% | Preferred Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
United States Government Agency Obligations | $ | 41.86 | |||
Corporate Bonds | $ | 40.82 | |||
United States Government Obligations | $ | 12.71 | |||
Cash and Cash Equivalents | $ | 4.32 | |||
Preferred Stocks | $ | 0.29 | |||
On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:
Investment Grade | |||||
AAA | 62.14 | % | |||
AA | 2.30 | % | |||
A | 5.17 | % | |||
BBB | 16.97 | % | |||
Non-Investment Grade | |||||
BB | 3.84 | % | |||
Non-rated | 4.97 | % | |||
Cash and Cash Equivalents and Equities | 4.61 | % |
Ratings reflected in the wheel are taken from Standard & Poor's.
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.
On Sept. 7 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.
The Investments of Ivy Bond Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
PREFERRED STOCKS | Shares | Value | |||||
Office REIT's - 0.15% | |||||||
PS Business Parks, Inc., 7.0% Cumulative | 11 | $ | 182 | ||||
Specialized REIT's - 0.14% | |||||||
Public Storage, Inc., 6.25% Cumulative | 11 | 166 | |||||
TOTAL PREFERRED STOCKS - 0.29% | | | | $ | 348 | ||
(Cost: $520) | |||||||
CORPORATE DEBT SECURITIES | Principal | ||||||
Banking - 1.14% | |||||||
Citigroup Inc., | |||||||
8.400%, 4-29-49 (A) | $ 700 | 477 | |||||
Colonial Bank, N.A., | |||||||
6.375%, 12-1-15 | 400 | 298 | |||||
Schwab Capital Trust I, | |||||||
7.500%, 11-15-37 (A) | 720 | 594 | |||||
1,369 | |||||||
Cable & Satellite - 1.05% | |||||||
Comcast Corporation, | |||||||
6.400%, 5-15-38 | 1,000 | 798 | |||||
Cox Communications, Inc., | |||||||
7.125%, 10-1-12 | 450 | 458 | |||||
1,256 | |||||||
Car Loan - 0.40% | |||||||
Capital Auto Receivables Asset Trust 2006-1, | |||||||
7.160%, 1-15-13 (B) | 245 | 232 | |||||
Capital Auto Receivables Asset Trust 2007-2, | |||||||
8.300%, 2-18-14 (B) | 275 | 254 | |||||
486 | |||||||
Construction & Engineering - 0.25% | |||||||
USG Corporation, | |||||||
6.300%, 11-15-16 | 400 | 302 | |||||
Consumer Products - 0.36% | |||||||
Estee Lauder Companies Inc. (The), | |||||||
6.000%, 5-15-37 | 500 | 432 | |||||
Electric - 1.26% | |||||||
E.ON International Finance B.V., | |||||||
6.650%, 4-30-38 (B) | 420 | 407 | |||||
FirstEnergy Generation Corp., | |||||||
6.850%, 6-1-34 | 295 | 270 | |||||
NiSource Finance Corp., | |||||||
6.800%, 1-15-19 | 350 | 318 | |||||
Pennsylvania Electric Company, | |||||||
5.125%, 4-1-14 | 250 | 226 | |||||
TransAlta Corporation, | |||||||
6.650%, 5-15-18 | 300 | 283 | |||||
1,504 | |||||||
Electronics - 0.28% | |||||||
Tyco Electronics Ltd.: | |||||||
6.550%, 10-1-17 | 190 | 183 | |||||
7.125%, 10-1-37 | 165 | 155 | |||||
338 | |||||||
Finance - Other - 3.45% | |||||||
Allied Capital Corporation, | |||||||
6.625%, 7-15-11 | 685 | 667 | |||||
American Capital Strategies, Ltd., | |||||||
6.850%, 8-1-12 | 635 | 588 | |||||
Ameriprise Financial, Inc., | |||||||
7.518%, 6-1-66 (A) | 730 | 555 | |||||
Capmark Financial Group Inc.: | |||||||
5.875%, 5-10-12 | 340 | 169 | |||||
6.300%, 5-10-17 | 200 | 79 | |||||
Janus Capital Group Inc.: | |||||||
6.250%, 6-15-12 | 315 | 298 | |||||
6.700%, 6-15-17 | 300 | 258 | |||||
JPMorgan Chase & Co., | |||||||
7.900%, 4-29- 49 (A) | 190 | 160 | |||||
Lazard Group LLC, | |||||||
6.850%, 6-15-17 | 950 | 787 | |||||
Symetra Financial Corporation, | |||||||
8.300%, 10-15-37 (A)(B) | 885 | 575 | |||||
4,136 | |||||||
Gas - Pipelines - 2.23% | |||||||
El Paso Corporation, | |||||||
7.250%, 6-1-18 | 735 | 684 | |||||
Magellan Midstream Partners, L.P., | |||||||
6.400%, 7-15-18 | 200 | 196 | |||||
NGPL PipeCo LLC, | |||||||
7.768%, 12-15-37 (B) | 745 | 729 | |||||
Plains All American Pipeline, L.P., | |||||||
6.500%, 5-1-18 (B) | 750 | 677 | |||||
Williams Partners L.P. and Williams Partners Finance Corporation, | |||||||
7.250%, 2-1-17 | 420 | 390 | |||||
2,676 | |||||||
Health Care Supply - 0.89% | |||||||
Healthcare Realty Trust Incorporated, | |||||||
5.125%, 4-1-14 | 660 | 572 | |||||
Humana Inc., | |||||||
8.150%, 6-15-38 | 520 | 491 | |||||
1,063 | |||||||
Independent Finance - 0.33% | |||||||
HSBC Finance Corporation, | |||||||
5.700%, 6-1-11 | 400 | 398 | |||||
Information / Data Technology - 0.77% | |||||||
Fiserv, Inc.: | |||||||
6.125%, 11-20-12 | 340 | 330 | |||||
6.800%, 11-20-17 | 335 | 323 | |||||
Intuit Inc., | |||||||
5.750%, 3-15-17 | 310 | 274 | |||||
927 | |||||||
Leasing - 0.33% | |||||||
International Lease Finance Corporation: | |||||||
6.375%, 3-25-13 | 360 | 227 | |||||
5.625%, 9-20-13 | 250 | 163 | |||||
390 | |||||||
Life Insurance - 1.29% | |||||||
Liberty Mutual Holding Company Inc., | |||||||
7.800%, 3-15-37 (B) | 360 | 217 | |||||
Prudential Financial, Inc., | |||||||
8.875%, 6-15-38 (A)(C) | 250 | 235 | |||||
StanCorp Financial Group, Inc.: | |||||||
6.875%, 10-1-12 | 450 | 441 | |||||
6.900%, 5-29-67 (A) | 300 | 252 | |||||
Willis North America Inc., | |||||||
6.200%, 3-28-17 | 455 | 396 | |||||
1,541 | |||||||
Oil & Gas Exploration & Production - 0.23% | |||||||
Petro-Canada, | |||||||
6.800%, 5-15-38 | 350 | 277 | |||||
Other Mortgage-Backed Securities - 18.90% | |||||||
ABFS Mortgage Loan Trust 2002-4, | |||||||
7.423%, 12-15-33 (A) | 97 | 61 | |||||
Asset Securitization Corporation, | |||||||
7.675%, 2-14-43 (A) | 170 | 112 | |||||
Asset Securitization Corporation (Interest Only), | |||||||
1.589%, 10-13-26 (A)(B)(D) | 893 | 26 | |||||
Associates Manufactured Housing Contract Pass-Through Certificates, | |||||||
7.725%, 6-15-28 (A) | 79 | 80 | |||||
Banc of America Alternative Loan Trust 2005-10: | |||||||
5.668%, 11-25-35 (A) | 133 | 61 | |||||
5.668%, 11-25-35 (A) | 275 | 137 | |||||
Banc of America Alternative Loan Trust 2005-12: | |||||||
5.809%, 1-25-36 (A) | 213 | 76 | |||||
5.809%, 1-25-36 (A) | 294 | 148 | |||||
Banc of America Alternative Loan Trust 2006- 4, | |||||||
6.224%, 5-25-46 (A) | 318 | 144 | |||||
Banc of America Alternative Loan Trust 2006-8, | |||||||
6.260%, 11-25-46 (A) | 141 | 13 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2001-1, | |||||||
6.125%, 4-15-36 (B) | 380 | 305 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2002-2, | |||||||
6.200%, 7-11-43 (B) | 275 | 230 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-6, | |||||||
5.352%, 9-10-47 (A) | 350 | 318 | |||||
Banc of America Mortgage 2007-1 Trust, | |||||||
6.000%, 3-25-37 | 167 | 62 | |||||
Banc of America Mortgage Trust 2004-7, | |||||||
5.750%, 8-25-34 | 80 | 72 | |||||
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6, | |||||||
6.000%, 10-15-36 (A)(B) | 320 | 167 | |||||
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4, | |||||||
5.468%, 6-11-41 (A) | 1,500 | 1,416 | |||||
BlackRock Capital Finance, | |||||||
7.750%, 9-25-26 (B) | 97 | 53 | |||||
Capital Auto Receivables Asset Trust 2007-1, | |||||||
6.570%, 9-16-13 (B) | 625 | 495 | |||||
Capital Auto Receivables Asset Trust 2007-3, | |||||||
8.000%, 3-17-14 (B) | 480 | 422 | |||||
Capital One Multi-asset Execution Trust, | |||||||
5.750%, 7-15-20 | 295 | 259 | |||||
CarMax Auto Owner Trust 2007-3, | |||||||
7.580%, 3-17-14 | 380 | 332 | |||||
C-Bass 2006-CB2 Trust, | |||||||
5.860%, 12-25-36 | 530 | 303 | |||||
C-Bass 2006-MH1 Trust: | |||||||
6.250%, 10-25-36 (A)(B) | 170 | 155 | |||||
6.240%, 10-25-36 (A)(B) | 102 | 87 | |||||
CD 2006-CD2 Mortgage Trust, | |||||||
5.805%, 1-15-46 (A)(C) | 710 | 580 | |||||
CD 2007-CD4 Commercial Mortgage Trust, | |||||||
5.883%, 12-11-49 (C) | 480 | 313 | |||||
Cendant Mortgage Corporation and Bishop's Gate Residential Mortgage Trust, | |||||||
6.250%, 6-25-32 (C) | 113 | 82 | |||||
Centex Home Equity Loan Trust 2005-C, | |||||||
5.048%, 6-25-35 (A) | 370 | 316 | |||||
Chase Mortgage Finance Trust, Series 2003-S11, | |||||||
5.500%, 10-25-33 | 111 | 101 | |||||
CHL Mortgage Pass-Through Trust 2004-J4, | |||||||
5.250%, 5-25-34 | 677 | 369 | |||||
Citibank Credit Card Issuance Trust, Class 2005-C1, | |||||||
5.500%, 3-24-17 | 200 | 149 | |||||
CitiMortgage Alternative Loan Trust, Series 2007-A7: | |||||||
6.238%, 7-25-37 (A) | 154 | 10 | |||||
6.250%, 7-25-37 | 428 | 321 | |||||
COMM 2006-CNL2, | |||||||
5.756%, 2-5-19 (A)(B) | 95 | 76 | |||||
Commercial Mortgage Asset Trust, | |||||||
6.000%, 11-17-32 | 225 | 129 | |||||
CountryPlace Manufactured Housing Contract Trust 2005-1, | |||||||
5.200%, 12-15-35 (A)(C) | 300 | 205 | |||||
Credit Suisse First Boston Mortgage Securities Corp., | |||||||
6.000%, 11-25-18 | 36 | 31 | |||||
CSAB Mortgage-Backed Trust 2006-2, | |||||||
6.080%, 9-25-36 (A) | 650 | 339 | |||||
CSFB Commercial Mortgage Trust 2003-C4, | |||||||
5.322%, 8-15-36 (A)(B) | 500 | 264 | |||||
CWHEQ Home Equity Loan Trust, Series 2006-S3, | |||||||
6.085%, 6-25-21 (A) | 675 | 281 | |||||
CWHEQ Home Equity Loan Trust, Series 2006-S6, | |||||||
5.962%, 3-25-34 (A) | 210 | 67 | |||||
CWHEQ Home Equity Loan Trust, Series 2007-S2, | |||||||
5.934%, 5-25-37 (A) | 572 | 250 | |||||
Discover Card Execution Note Trust, | |||||||
5.650%, 3-16-20 | 385 | 334 | |||||
First Horizon Mortgage Pass-Through Trust 2003-8, | |||||||
5.132%, 10-25-33 (A) | 93 | 53 | |||||
Flagstar Home Equity Loan Trust 2007-1, | |||||||
5.997%, 1-25-35 (A)(B) | 415 | 244 | |||||
Ford Credit Auto Owner Trust 2006-B, | |||||||
7.120%, 2-15-13 (B) | 140 | 105 | |||||
Ford Credit Auto Owner Trust 2006-C, | |||||||
6.890%, 5-15-13 (C) | 200 | 151 | |||||
Ford Credit Auto Owner Trust 2007-A, | |||||||
7.050%, 12-15-13 (B) | 175 | 125 | |||||
GE Capital Commercial Mortgage Corp. 2002-2, | |||||||
6.039%, 8-11-36 (A)(B) | 565 | 486 | |||||
GE Commercial Mortgage Corporation, Series 2007-C1Trust, | |||||||
5.543%, 12-10-49 | 340 | 287 | |||||
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC: | |||||||
5.394%, 4-25-32 (A) | 262 | 159 | |||||
5.250%, 4-25-32 | 177 | 162 | |||||
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC: | |||||||
5.250%, 11-25-32 (C) | 269 | 225 | |||||
5.250%, 11-25-32 (C) | 231 | 210 | |||||
GMACM Home Equity Loan Trust 2006-HE3, | |||||||
6.088%, 10-25-36 (A) | 485 | 132 | |||||
GMACM Home Equity Loan Trust 2007-HE1, | |||||||
5.952%, 8-25-37 (A) | 570 | 216 | |||||
Green Tree Financial Corporation: | |||||||
6.400%, 10-15-18 | 49 | 49 | |||||
7.350%, 5-15-27 | 28 | 29 | |||||
GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2001-LIB, | |||||||
6.733%, 2-14-16 (B) | 225 | 236 | |||||
Home Equity Loan Trust 2003-HS2, | |||||||
5.090%, 7-25-33 (A) | 17 | 15 | |||||
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1, | |||||||
5.506%, 11-11-38 (C) | 444 | 346 | |||||
Hometown Commercial Trust 2007-1, Commercial Mortgage- Backed Notes, Series 2007-1, | |||||||
6.057%, 6-11-39 (C) | 459 | 371 | |||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2006-LDP8, | |||||||
5.370%, 5-15-45 | 1,000 | 911 | |||||
J.P. Morgan Mortgage Acquisition Trust 2006-CW2, | |||||||
6.337%, 8-25-36 (A) | 590 | 424 | |||||
J.P. Morgan Mortgage Trust 2005-S2, | |||||||
5.673%, 9-25-35 (A) | 498 | 338 | |||||
J.P. Morgan Mortgage Trust 2006-S3, | |||||||
6.500%, 8-25-36 | 395 | 304 | |||||
JPMorgan Auto Receivables Trust 2007-A, | |||||||
7.090%, 2-15-14 (C) | 152 | 137 | |||||
Lehman XS Trust, Series 2005-8, | |||||||
5.690%, 12-25-35 | 585 | 436 | |||||
MASTR Asset Securitization Trust 2003-10, | |||||||
5.500%, 11-25-33 | 169 | 155 | |||||
MBNA Credit Card Master Note Trust, | |||||||
6.800%, 7-15-14 | 325 | 292 | |||||
Morgan Stanley Capital I Inc., 1999-FNVI, Class E, | |||||||
7.877%, 3-15-31 (A) | 1,000 | 1,001 | |||||
Morgan Stanley Capital I Trust 2004-TOP15, | |||||||
5.030%, 6-13-41 | 1,000 | 955 | |||||
Morgan Stanley Capital I, Inc., Commercial Mortgage Pass-Through Certificates, Series 1998-XL2, | |||||||
6.590%, 10-3-34 (A) | 500 | 499 | |||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: | |||||||
5.880%, 11-28-35 (A)(C) | 155 | 70 | |||||
5.880%, 11-28-35 (A)(C) | 105 | 52 | |||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4 (Interest Only), | |||||||
1.166%, 11-28-35 (A)(C)(D) | 4,837 | 59 | |||||
National Collegiate Trust 1997-S2 (The), | |||||||
7.240%, 9-20-14 | 115 | 44 | |||||
Nomura Asset Securities Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-D6, | |||||||
6.000%, 3-15-30 (B) | 500 | 426 | |||||
Origen Manufactured Housing Contract Trust 2004-A, | |||||||
5.700%, 1-15-35 (A) | 100 | 91 | |||||
Origen Manufactured Housing Contract Trust 2004-B, | |||||||
5.730%, 11-15-35 (A) | 50 | 44 | |||||
Origen Manufactured Housing Contract Trust 2005-A: | |||||||
4.490%, 5-15-18 | 91 | 89 | |||||
5.860%, 6-15-36 (A) | 120 | 101 | |||||
Origen Manufactured Housing Contract Trust 2005-B, | |||||||
5.605%, 5-15-22 | 80 | 77 | |||||
RALI Series 2003-QS10 Trust, | |||||||
5.750%, 5-25-33 | 236 | 193 | |||||
RASC Series 2003-KS10 Trust, | |||||||
6.410%, 12-25-33 (A) | 88 | 48 | |||||
Structured Asset Securities Corporation, | |||||||
5.630%, 5-25-34 (A) | 169 | 111 | |||||
TimberStar Trust I, | |||||||
6.208%, 10-15-36 (B) | 460 | 359 | |||||
Vanderbilt Mortgage and Finance, Inc., | |||||||
3.537%, 3-7-28 (A) | 147 | 144 | |||||
Wachovia Bank Commercial Mortgage Trust (The), | |||||||
4.942%, 11-15-34 (B) | 285 | 196 | |||||
Wachovia Bank Commercial Mortgage Trust Commercial Mortgage Pass-Through Certificates Series 2006-C26, | |||||||
6.011%, 6-15- 45 (A) | 450 | 407 | |||||
Wells Fargo Alternative Loan 2007-PA3 Trust, | |||||||
6.202%, 7-25-37 (A) | 867 | 350 | |||||
Wells Fargo Mortgage Backed Securities 2003-9 Trust, | |||||||
5.250%, 8-25-33 (B) | 266 | 150 | |||||
WFS Financial 2005-1 Owner Trust, A4, | |||||||
3.870%, 8-17-12 | 772 | 767 | |||||
WFS Financial 2005-2 Owner Trust, | |||||||
4.390%, 11-19-12 | 58 | 59 | |||||
22,641 | |||||||
Other Non-Agency REMIC/CMO - 2.03% | |||||||
Banco Hipotecario Nacional, | |||||||
7.916%, 7-25-09 (C) | 7 | - - | * | ||||
Bear Stearns Commercial Mortgage Securities Inc., | |||||||
5.064%, 5-14-16 (B) | 2,000 | 2,007 | |||||
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-WF2: | |||||||
6.000%, 7-15-31 (B) | 500 | 311 | |||||
6.000%, 7-15-31 (B) | 100 | 79 | |||||
Mellon Residential Funding, | |||||||
6.750%, 6-25-28 | 29 | 29 | |||||
2,426 | |||||||
Pharmaceuticals - 0.27% | |||||||
Amgen Inc., | |||||||
6.900%, 6-1-38 | 115 | 111 | |||||
Laboratory Corporation of America Holdings, | |||||||
5.500%, 2-1-13 | 215 | 209 | |||||
320 | |||||||
Property & Casualty Insurance - 1.05% | |||||||
Commerce Group, Inc. (The), | |||||||
5.950%, 12-9-13 | 615 | 603 | |||||
Fund American Companies, Inc., | |||||||
5.875%, 5-15-13 | 560 | 415 | |||||
Hartford Financial Services Group, Inc. (The), | |||||||
8.125%, 6-15-38 (A) | 280 | 239 | |||||
1,257 | |||||||
Publishing - 0.43% | |||||||
Thomson Reuters Corporation, | |||||||
6.500%, 7-15-18 | 545 | 521 | |||||
REITs - 1.67% | |||||||
Camden Property Trust, | |||||||
4.700%, 7-15-09 | 600 | 588 | |||||
Highwoods Realty Limited Partnership, | |||||||
5.850%, 3-15-17 | 805 | 646 | |||||
Nationwide Health Properties, Inc., | |||||||
6.000%, 5-20-15 | 440 | 415 | |||||
Realty Income Corporation, | |||||||
6.750%, 8-15-19 | 395 | 356 | |||||
2,005 | |||||||
Secondary Oil & Gas Producers - 0.58% | |||||||
Plains Exploration & Production Company, | |||||||
7.750%, 6-15-15 | 750 | 690 | |||||
Securities - 0.21% | |||||||
Goldman Sachs Capital I, | |||||||
6.345%, 2-15-34 | 5 | 3 | |||||
Jefferies Group, Inc., | |||||||
6.250%, 1-15-36 | 400 | 248 | |||||
251 | |||||||
Service - Other - 0.18% | |||||||
ERAC USA Finance Company, | |||||||
5.900%, 11-15-15 (B) | 265 | 216 | |||||
Steel - 0.62% | |||||||
ArcelorMittal, | |||||||
6.125%, 6-1-18 (B) | 835 | 739 | |||||
Utilities - Water - 0.37% | |||||||
American Water Capital Corp., | |||||||
6.593%, 10-15-37 | 500 | 445 | |||||
Wireless - 0.25% | |||||||
Nextel Communications, Inc., | |||||||
6.875%, 10-31-13 | 440 | 299 | |||||
TOTAL CORPORATE DEBT SECURITIES - 40.82% | | | $ | 48,905 | |||
(Cost: $60,584) | |||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | |||||||
Agency Obligations - 8.29% | |||||||
Federal Home Loan Bank, | |||||||
2.625%, 5-20-11 | 2,250 | 2,200 | |||||
Federal Home Loan Mortgage Corporation: | |||||||
3.250%, 2-25-11 | 4,940 | 4,928 | |||||
3.750%, 6-28-13 | 1,155 | 1,146 | |||||
Federal National Mortgage Association: | |||||||
4.250%, 5-15-09 | 500 | 503 | |||||
3.875%, 7-12-13 | 1,155 | 1,152 | |||||
9,929 |
Mortgage-Backed Obligations - 33.57% | |||||||
Federal Home Loan Mortgage Association Fixed Rate Participation Certificates, | |||||||
5.000%, 10-1-34 | 4,305 | 4,193 | |||||
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates: | |||||||
3.500%, 2-15-30 | 94 | 91 | |||||
6.500%, 9-1-32 | 177 | 184 | |||||
6.000%, 11-1-33 | 375 | 382 | |||||
5.500%, 5-1-34 | 101 | 101 | |||||
5.500%, 5-1-34 | 155 | 155 | |||||
5.500%, 6-1-34 | 1,304 | 1,300 | |||||
5.000%, 9-1-34 | 37 | 36 | |||||
5.500%, 9-1-34 | 128 | 127 | |||||
6.500%, 10-1-34 | 4,745 | 4,865 | |||||
5.500%, 10-1-34 | 298 | 298 | |||||
5.500%, 7-1-35 | 171 | 170 | |||||
5.500%, 7-1-35 | 376 | 375 | |||||
5.500%, 10-1-35 | 2,385 | 2,372 | |||||
5.500%, 10-1-35 | 472 | 472 | |||||
6.000%, 10-1-37 | 2,000 | 2,025 | |||||
7.000%, 12-1-37 | 630 | 660 | |||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
5.500%, 1-1-17 | 131 | 133 | |||||
6.000%, 9-1-17 | 76 | 78 | |||||
5.500%, 3-1-18 | 87 | 89 | |||||
5.000%, 6-1-18 | 317 | 318 | |||||
5.000%, 7-1-18 | 113 | 113 | |||||
5.500%, 10-1-20 | 1,200 | 1,210 | |||||
7.500%, 5-1-31 | 87 | 94 | |||||
7.000%, 9-1-31 | 33 | 35 | |||||
7.000%, 11-1-31 | 67 | 71 | |||||
6.500%, 12-1-31 | 42 | 44 | |||||
7.000%, 2-1-32 | 62 | 65 | |||||
7.000%, 3-1-32 | 70 | 74 | |||||
6.500%, 4-1-32 | 19 | 20 | |||||
6.500%, 5-1-32 | 19 | 20 | |||||
6.500%, 7-1-32 | 53 | 55 | |||||
6.500%, 8-1-32 | 43 | 45 | |||||
6.500%, 8-1-32 | 43 | 45 | |||||
6.500%, 9-1-32 | 78 | 80 | |||||
6.500%, 9-1-32 | 31 | 32 | |||||
6.500%, 10-1-32 | 90 | 93 | |||||
6.000%, 10-1-32 | 105 | 107 | |||||
6.000%, 11-1-32 | 100 | 102 | |||||
6.000%, 3-1-33 | 80 | 82 | |||||
6.000%, 4-1-33 | 159 | 162 | |||||
5.500%, 4-1-33 | 144 | 144 | |||||
5.500%, 5-1-33 | 100 | 100 | |||||
6.000%, 10-1-33 | 156 | 159 | |||||
5.500%, 1-1-34 | 98 | 98 | |||||
5.500%, 1-1-34 | 98 | 98 | |||||
6.000%, 1-1-34 | 382 | 389 | |||||
5.500%, 3-1-34 | 138 | 138 | |||||
5.500%, 3-1-34 | 60 | 59 | |||||
5.500%, 4-1-34 | 44 | 44 | |||||
5.500%, 4-1-34 | 145 | 146 | |||||
5.500%, 5-1-34 | 116 | 116 | |||||
5.000%, 5-1-34 | 64 | 63 | |||||
6.000%, 10-1-34 | 2,500 | 2,532 | |||||
5.000%, 10-1-34 | 1,560 | 1,520 | |||||
5.500%, 10-1-34 | 485 | 484 | |||||
6.000%, 11-1-34 | 578 | 587 | |||||
5.500%, 11-1-34 | 1,254 | 1,253 | |||||
5.500%, 2-1-35 | 156 | 156 | |||||
5.500%, 4-1-35 | 1,002 | 1,001 | |||||
5.000%, 7-1-35 | 187 | 183 | |||||
5.000%, 7-1-35 | 95 | 93 | |||||
5.000%, 7-1-35 | 43 | 42 | |||||
5.000%, 7-1-35 | 77 | 76 | |||||
5.500%, 8-1-35 | 105 | 105 | |||||
5.500%, 10-1-35 | 792 | 793 | |||||
5.000%, 10-1-35 | 3,004 | 2,931 | |||||
6.000%, 3-1-36 | 963 | 977 | |||||
6.500%, 10-1-36 | 790 | 810 | |||||
6.000%, 7-1-38 | 1,096 | 1,112 | |||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only), | |||||||
1.228%, 6-17-45 (A)(D) | 4,685 | 195 | |||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates, | |||||||
5.500%, 10-1-35 | 2,845 | 2,848 | |||||
40,225 | |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 41.86% | | | $ | 50,154 | |||
(Cost: $50,431) | |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | |||||||
Treasury Inflation Protected Obligations - 1.10% | |||||||
United States Treasury Notes, | |||||||
1.875%, 7-15-13 (E) | 1,317 | 1,313 | |||||
Treasury Obligations - 11.61% | |||||||
United States Treasury Bonds, | |||||||
5.375%, 2-15-31 | 2,775 | 3,144 | |||||
United States Treasury Notes: | |||||||
2.000%, 9-30-10 | 5,055 | 5,058 | |||||
3.125%, 9-30-13 (F) | 3,265 | 3,287 | |||||
4.000%, 8-15-18 | 1,400 | 1,419 | |||||
4.375%, 2-15-38 | 1,000 | 1,009 | |||||
13,917 | |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 12.71% | | | $ | 15,230 | |||
(Cost: $15,043) | |||||||
SHORT-TERM SECURITIES | |||||||
Commercial Paper - 23.37% | |||||||
Air Products and Chemicals, Inc., | |||||||
1.500%, 10-1-08 | $ | 1,998 | 1,998 | ||||
Automatic Data Processing Inc., | |||||||
2.000%, 10-1-08 | 4,000 | 4,000 | |||||
Avon Capital Corp. (Avon Products, Inc.), | |||||||
2.200%, 10-3-08 | 5,000 | 4,999 |
Danaher Corporation, | |||||||
1.800%, 10-6-08 | 2,000 | 2,000 | |||||
McCormick & Co. Inc., | |||||||
3.000%, 10-1-08 | 5,000 | 5,000 | |||||
Pfizer Inc., | |||||||
1.800%, 10-8-08 | 5,000 | 4,998 | |||||
Praxair Inc., | |||||||
2.050%, 10-10-08 | 5,000 | 4,997 | |||||
27,992 | |||||||
United States Government Obligations - 1.67% | |||||||
United States Treasury Bills, | |||||||
0.300%, 10-23-08 | 2,000 | 2,000 | |||||
TOTAL SHORT-TERM SECURITIES - 25.04% | | | | $ | 29,992 | ||
(Cost: $29,992) | |||||||
TOTAL INVESTMENT SECURITIES - 120.72% | | | | $ | 144,629 | ||
(Cost: $156,570) | |||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (20.72%) | | | (24,826 | ) | |||
NET ASSETS - 100.00% | | | | $ | 119,803 | ||
Notes to Schedule of Investments |
*Not shown due to rounding. |
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008. |
(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, 2008, the total value of these securities amounted to $11,050 or 9.22% 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, 2008, the total value of these securities amounted to $3,036 or 2.53% of net assets. |
(D)Amount shown in principal column represents notional amount for computation of interest. |
(E)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. |
(F)This security serves as collateral for the following open futures contracts at September 30, 2008. A portion of this security was held on September 30 by Barclays due to the bankruptcy of the Lehman Brothers, the Fund's counter party to previous futures contracts. That portion was subsequently received from Barclays by the Fund after September 30. | |||||||||||
Description | Type | Expiration Date | Number of Contracts | Market Value | Unrealized Appreciation (Depreciation) | ||||||
United States 10 Year Treasury Note | Short | 12-19-08 | (8) | $ | (917) | $ | 6 | ||||
United States 30 Year Treasury Bond | Short | 12-19-08 | (67) | (7,851) | (17) | ||||||
United States 5 Year Treasury Note | Short | 12-31-08 | (44) | (4,938) | 26 | ||||||
United States 2 Year Treasury Note | Long | 12-31-08 | 158 | 33,723 | 185 | ||||||
$ | 20,017 | $ | 200 | ||||||||
The following acronyms are used throughout this portfolio: CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit | |||||||||||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY BOND FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $156,570) | $ | 144,629 | ||
Cash | 769 | |||
Receivables: | ||||
Investment securities sold | 5,801 | |||
Dividends and interest | 990 | |||
Fund shares sold | 620 | |||
Variation margin - futures | 250 | |||
Prepaid and other assets | 27 | |||
Total assets | 153,086 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 32,570 | |||
Payable to Fund shareholders | 253 | |||
Accrued management fee | 52 | |||
Accrued distribution and service fees | 49 | |||
Accrued shareholder servicing | 36 | |||
Dividends payable | 20 | |||
Accrued accounting services fee | 6 | |||
Other | 297 | |||
Total liabilities | 33,283 | |||
Total net assets | $ | 119,803 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 132,764 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | –– | |||
Accumulated net realized loss on investment transactions | (1,220 | ) | ||
Net unrealized depreciation in value of investments | (11,741 | ) | ||
Net assets applicable to outstanding units of capital | $ | 119,803 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $9.26 | |||
Class B | $9.26 | |||
Class C | $9.26 | |||
Class E | $9.26 | |||
Class I | $9.26 | |||
Class Y | $9.26 | |||
Capital shares outstanding: | ||||
Class A | 11,498 | |||
Class B | 357 | |||
Class C | 926 | |||
Class E | 116 | |||
Class I | 19 | |||
Class Y | 22 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY BOND FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Interest and amortization | $ | 3,035 | ||
Dividends | 18 | |||
Total income | 3,053 | |||
Expenses: | ||||
Investment management fee | 295 | |||
Distribution and service fees: | ||||
Class A | 128 | |||
Class B | 15 | |||
Class C | 28 | |||
Class E | –– | * | ||
Class Y | 1 | |||
Shareholder servicing: | ||||
Class A | 131 | |||
Class B | 12 | |||
Class C | 11 | |||
Class E | 3 | |||
Class I | –– | * | ||
Class Y | –– | * | ||
Registration fees | 38 | |||
Accounting services fee | 33 | |||
Audit fees | 11 | |||
Custodian fees | 11 | |||
Legal fees | 1 | |||
Other | 26 | |||
Total | 744 | |||
Less expenses in excess of limit | (1 | ) | ||
Total expenses | 743 | |||
Net investment income | 2,310 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (571 | ) | ||
Realized net loss on futures | (40 | ) | ||
Realized net loss on investments | (611 | ) | ||
Unrealized depreciation in value of securities during the period | (6,470 | ) | ||
Unrealized appreciation in value of futures during the period | 325 | |||
Unrealized depreciation in value of investments during the period | (6,145 | ) | ||
Net loss on investments | (6,756 | ) | ||
Net decrease in net assets resulting from operations | $ | (4,446 | ) | |
*Not shown due to rounding.
See Accompanying 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, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 2,310 | $ | 3,918 | ||||
Realized net loss on investments | (611 | ) | (22 | ) | ||||
Unrealized depreciation | (6,145 | ) | (5,552 | ) | ||||
Net decrease in net assets resulting from operations | (4,446 | ) | (1,656 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (2,149 | ) | (3,640 | ) | ||||
Class B | (46 | ) | (75 | ) | ||||
Class C | (91 | ) | (177 | ) | ||||
Class E | (18 | ) | (18 | ) | ||||
Class I | (4 | ) | (8 | ) | ||||
Class Y | (2 | ) | (–– | )* | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (— | ) | (— | ) | ||||
(2,310 | ) | (3,918 | ) | |||||
Capital share transactions | 23,117 | 38,841 | ||||||
Total increase | 16,361 | 33,267 | ||||||
NET ASSETS | ||||||||
Beginning of period | 103,442 | 70,175 | ||||||
End of period | $ | 119,803 | $ | 103,442 | ||||
Accumulated undistributed net investment income | $ | — | $ | — | ||||
*Not shown due to rounding
(1)See "Financial Highlights" on pages 253 - 258.
See Accompanying 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 | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 9-30-03 | ||||||||||||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.73 | $ | 10.57 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income | 0.20 | 0.47 | 0.46 | 0.42 | 0.41 | 0.23 | 0.45 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | ) | (0.62 | ) | 0.18 | (0.24 | ) | (0.30 | ) | 0.09 | 0.15 | |||||||||||||
Total from investment operations | (0.38 | ) | (0.15 | ) | 0.64 | 0.18 | 0.11 | 0.32 | 0.60 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.47 | ) | (0.46 | ) | (0.42 | ) | (0.42 | ) | (0.22 | ) | (0.44 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.20 | ) | (0.47 | ) | (0.46 | ) | (0.42 | ) | (0.42 | ) | (0.22 | ) | (0.44 | ) | ||||||||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.73 | ||||||||||
Total return(1) | - -3.86 | % | - -1.51 | % | 6.40 | % | 1.74 | % | 1.04 | % | 3.03 | % | 5.84 | % | ||||||||||
Net assets, end of period (in millions) | $107 | $95 | $64 | $56 | $49 | $23 | $18 | |||||||||||||||||
Ratio of expenses to average net assets including expense wavier | 1.24 | %(2) | 1.21 | % | 1.20 | % | 1.23 | % | 1.17 | % | 1.46 | %(2)(3) | 1.15 | % | ||||||||||
Ratio of net investment income to average net assets including expense wavier | 4.19 | %(2) | 4.57 | % | 4.48 | % | 4.03 | % | 3.84 | % | 4.53 | %(2)(3) | 4.25 | % | ||||||||||
Ratio of expenses to average net assets excluding expense wavier | 1.24 | %(2)(4) | 1.21 | %(4) | 1.20 | %(4) | 1.23 | %(4) | 1.43 | % | 2.36 | %(2)(3) | 2.01 | % | ||||||||||
Ratio of net investment income to average net assets excluding expense wavier | 4.19 | %(2)(4) | 4.57 | %(4) | 4.48 | %(4) | 4.03 | %(4) | 3.58 | % | 3.64 | %(2)(3) | 3.39 | % | ||||||||||
Portfolio turnover rate | 193 | % | 75 | % | 91 | % | 126 | % | 200 | % | 78 | % | 119 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.15 | 0.36 | 0.34 | 0.30 | 0.28 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | ) | (0.62 | ) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | |||||||||||
Total from investment operations | (0.43 | ) | (0.26 | ) | 0.52 | 0.06 | (0.03 | ) | 0.30 | ||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.15 | ) | (0.36 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.11 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.15 | ) | (0.36 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.11 | ) | |||||||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | |||||||||
Total return | -4.41 | % | - -2.59 | % | 5.22 | % | 0.57 | % | - -0.23 | % | 2.77 | % | |||||||||
Net assets, end of period (in thousands) | $3,303 | $2,476 | $1,828 | $1,451 | $744 | $287 | |||||||||||||||
Ratio of expenses to average net assets | 2.39 | %(2) | 2.31 | % | 2.32 | % | 2.38 | % | 2.45 | % | 2.76 | %(2) | |||||||||
Ratio of net investment income to average net assets | 3.02 | %(2) | 3.46 | % | 3.37 | % | 2.90 | % | 2.63 | % | 3.04 | %(2) | |||||||||
Portfolio turnover rate | 193 | % | 75 | % | 91 | % | 126 | % | 200 | % | 78 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.16 | (2) | 0.39 | 0.37 | 0.31 | 0.27 | 0.11 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | )(2) | (0.62 | ) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | |||||||||||
Total from investment operations | (0.42 | ) | (0.23 | ) | 0.55 | 0.07 | (0.04 | ) | 0.30 | ||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.16 | ) | (0.39 | ) | (0.37 | ) | (0.31 | ) | (0.27 | ) | (0.11 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.16 | ) | (0.39 | ) | (0.37 | ) | (0.31 | ) | (0.27 | ) | (0.11 | ) | |||||||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | |||||||||
Total return | -4.28 | % | - -2.31 | % | 5.48 | % | 0.66 | % | - -0.40 | % | 2.77 | % | |||||||||
Net assets, end of period (in thousands) | $8,577 | $5,259 | $4,096 | $1,737 | $547 | $115 | |||||||||||||||
Ratio of expenses to average net assets | 2.11 | %(3) | 2.02 | % | 2.06 | % | 2.28 | % | 2.59 | % | 2.61 | %(3) | |||||||||
Ratio of net investment income to average net assets | 3.30 | %(3) | 3.76 | % | 3.62 | % | 3.01 | % | 2.47 | % | 3.09 | %(3) | |||||||||
Portfolio turnover rate | 193 | % | 75 | % | 91 | % | 126 | % | 200 | % | 78 | %(4) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.18 | (2) | 0.43 | (2) | |||||
Net realized and unrealized loss on investments | (0.58 | )(2) | (0.62 | )(2) | |||||
Total from investment operations | (0.40 | ) | (0.19 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.18 | ) | (0.43 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.18 | ) | (0.43 | ) | |||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | |||||
Total return(3) | -4.03 | % | - -1.85 | % | |||||
Net assets, end of period (in millions) | $1 | $1 | |||||||
Ratio of expenses to average net assets including expense wavier | 1.58 | %(4) | 1.59 | %(4) | |||||
Ratio of net investment income to average net assets including expense wavier | 3.87 | %(4) | 4.14 | %(4) | |||||
Ratio of expenses to average net assets excluding expense wavier | 1.80 | %(4) | 1.59 | %(4)(5) | |||||
Ratio of net investment income to average net assets excluding expense wavier | 3.65 | %(4) | 4.14 | %(4)(5) | |||||
Portfolio turnover rate | 193 | % | 75 | %(6) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY BOND FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.22 | 0.50 | (2) | ||||||
Net realized and unrealized loss on investments | (0.58 | ) | (0.62 | )(2) | |||||
Total from investment operations | (0.36 | ) | (0.12 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.22 | ) | (0.50 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.22 | ) | (0.50 | ) | |||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | |||||
Total return | - -3.69 | % | - -1.17 | % | |||||
Net assets, end of period (in thousands) | $173 | $180 | |||||||
Ratio of expenses to average net assets | 0.90 | %(3) | 0.91 | %(3) | |||||
Ratio of net investment income to average net assets | 4.55 | %(3) | 4.87 | %(3) | |||||
Portfolio turnover rate | 193 | % | 75 | %(4) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | $ | 10.64 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.19 | (2) | 0.46 | (2) | 0.46 | 0.41 | 0.39 | 0.13 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.58 | )(2) | (0.62 | )(2) | 0.18 | (0.24 | ) | (0.31 | ) | 0.19 | |||||||||||
Total from investment operations | (0.39 | ) | (0.16 | ) | 0.64 | 0.17 | 0.08 | 0.32 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.19 | ) | (0.46 | ) | (0.46 | ) | (0.41 | ) | (0.39 | ) | (0.13 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.19 | ) | (0.46 | ) | (0.46 | ) | (0.41 | ) | (0.39 | ) | (0.13 | ) | |||||||||
Net asset value, end of period | $ | 9.26 | $ | 9.84 | $ | 10.46 | $ | 10.28 | $ | 10.52 | $ | 10.83 | |||||||||
Total return | - -3.91 | % | - -1.60 | % | 6.43 | % | 1.62 | % | 0.75 | % | 3.03 | % | |||||||||
Net assets, end of period (in thousands) | $204 | $24 | $42 | $20 | $34 | $25 | |||||||||||||||
Ratio of expenses to average net assets including expense wavier | 1.36 | %(3) | 1.34 | % | 1.09 | % | 1.34 | % | 1.46 | % | 1.54 | %(3) | |||||||||
Ratio of net investment income to average net assets including expense wavier | 4.03 | %(3) | 4.42 | % | 4.60 | % | 3.91 | % | 3.65 | % | 3.99 | %(3) | |||||||||
Ratio of expenses to average net assets excluding expense wavier | 1.58 | %(3) | 1.34 | %(4) | 1.09 | %(4) | 1.34 | %(4) | 1.46 | %(4) | 1.54 | %(3)(4) | |||||||||
Ratio of net investment income to average net assets excluding expense wavier | 3.80 | %(3) | 4.42 | %(4) | 4.60 | %(4) | 3.91 | %(4) | 3.65 | %(4) | 3.99 | %(3)(4) | |||||||||
Portfolio turnover rate | 193 | % | 75 | % | 91 | % | 126 | % | 200 | % | 78 | %(5) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY GLOBAL BOND FUND
Portfolio Highlights
On September 30, 2008, Ivy Global Bond Fund had net assets totaling $39,171 (in thousands) invested in a diversified portfolio of:
39.98% | Cash and Cash Equivalents | |
24.46% | Other Government Securities | |
17.46% | Foreign Corporate Debt Securities | |
10.93% | United States Government and Government Agency Obligations | |
6.54% | Domestic Corporate Debt Securities | |
0.63% | Senior Loans |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2008,
your Fund owned:
Cash and Cash Equivalents and Senior Loans | $ | 40.61 | |||
Other Government Securities | $ | 24.46 | |||
United States Government and Government Agency Obligations | $ | 10.93 | |||
Financials Bonds | $ | 7.55 | |||
Industrials Bonds | $ | 5.35 | |||
Miscellaneous Bonds(1) | $ | 4.40 | |||
Consumer Staples Bonds | $ | 3.43 | |||
Materials Bonds | $ | 3.27 |
(1)Includes $1.25 Consumer Discretionary Bonds, $1.28 Energy Bonds and $1.87 Utilities Bonds.
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.
On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.
Quality WeightingsOn September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:
Investment Grade | |||||
AAA | 35.19 | % | |||
AA | 1.86 | % | |||
A | 1.23 | % | |||
BBB | 7.96 | % | |||
Non-Investment Grade | |||||
BB | 8.82 | % | |||
B | 2.19 | % | |||
Non-Rated | 2.77 | % | |||
Cash and Cash Equivalents | 39.98 | % |
Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.
Country WeightingsAs a shareholder of the Fund, for every $100 you had invested on September 30, 2008, your Fund was invested in geographic regions as follows:
Cash and Cash Equivalents | $ | 39.98 | |||
Europe | $ | 26.08 | |||
France | $ | 9.26 | |||
United Kingdom | $ | 6.25 | |||
Other Europe(1) | $ | 3.76 | |||
Russia | $ | 2.47 | |||
Switzerland | $ | 2.35 | |||
Norway | $ | 1.99 | |||
North America | $ | 22.99 | |||
United States | $ | 18.10 | |||
Other North America(2) | $ | 4.89 | |||
Pacific Basin(3) | $ | 3.65 | |||
South America(4) | $ | 2.79 | |||
Middle East(5) | $ | 1.86 | |||
Bahamas/Caribbean(6) | $ | 1.80 | |||
Other(7) | $ | 0.85 |
(1)Includes $1.79 Germany, $0.51 Ireland, $0.80 Luxembourg and $0.66 Netherlands.
(2)Includes $4.30 Canada and $0.59 Mexico.
(3)Includes $0.41 Australia, $0.64 Burma, $0.88 China, $1.08 Hong Kong and $0.64 Indonesia.
(4)Includes $2.79 Brazil.
(5)Includes $1.86 United Arab Emirates.
(6)Includes $0.58 Bahamas, $0.62 British Virgin Islands and $0.60 Cayman Islands.
(7)Includes $0.85 Panama.
The Investments of Ivy Global Bond Fund | ||||||||
---|---|---|---|---|---|---|---|---|
September 30, 2008 | ||||||||
(In Thousands) (Unaudited) | ||||||||
CORPORATE DEBT SECURITIES | Principal | Value | ||||||
Agriculture - 0.96% | ||||||||
Ciliandra Perkasa Finance Company Pte. Ltd., | ||||||||
10.750%, 12-8-11 | $ 250 | $ | 249 | |||||
Independencia International Ltd., | ||||||||
9.875%, 5-15-15 | 150 | 124 | ||||||
373 | ||||||||
Banking - 0.89% | ||||||||
Banco BMG S.A., | ||||||||
8.750%, 7-1-10 | 167 | 160 | ||||||
VTB Capital S.A., | ||||||||
6.609%, 10-31-12 | 250 | 190 | ||||||
350 | ||||||||
Beverage / Bottling - 2.86% | ||||||||
AmBev International Finance Co. Ltd., | ||||||||
9.500%, 7-24-17 (A) | BRL450 | 177 | ||||||
Diageo Finance B.V., | ||||||||
5.500%, 4-1-13 | $ 250 | 252 | ||||||
Miller Brewing Company, | ||||||||
5.500%, 8-15-13 | 350 | 358 | ||||||
Panamerican Beverages, Inc., | ||||||||
7.250%, 7-1-09 | 325 | 333 | ||||||
1,120 | ||||||||
Conglomerate / Diversified Mfg - 3.63% | ||||||||
BAE Systems Holdings Inc., | ||||||||
4.750%, 8-15-10 (C) | 500 | 507 | ||||||
Bombardier Inc., | ||||||||
6.750%, 5-1-12 | 250 | 245 | ||||||
Ingersoll-Rand Global Holding Company Limited, | ||||||||
6.000%, 8-15-13 | 250 | 249 | ||||||
Noble Group Limited, | ||||||||
8.500%, 5-30-13 | 500 | 425 | ||||||
1,426 | ||||||||
Electric - 1.86% | ||||||||
Abu Dhabi National Energy Company PJSC, | ||||||||
5.620%, 10-25-12 | 750 | 727 | ||||||
Finance Companies - 2.54% | ||||||||
C5 Capital (SPV) Limited, | ||||||||
6.196%, 12-31-49 (B) | 250 | 241 | ||||||
ISA Capital do Brasil S.A., | ||||||||
7.875%, 1-30-12 | 250 | 240 | ||||||
Toyota Motor Credit Corporation, | ||||||||
6.750%, 9-21-09 (A) | NZD769 | 512 | ||||||
993 | ||||||||
Food Processors - 0.29% | ||||||||
Sadia Overseas Ltd., | ||||||||
6.875%, 5-24-17 | $ 150 | 115 | ||||||
Food Processors / Bev / Bottling - 0.60% | ||||||||
Iansa Overseas Limited, | ||||||||
7.250%, 7-28-12 | 250 | 236 | ||||||
Leisure - 0.62% | ||||||||
Royal Caribbean Cruises Ltd., | ||||||||
8.750%, 2-2-11 | 250 | 243 | ||||||
Metals / Mining - 3.22% | ||||||||
ALROSA Finance S.A., | ||||||||
8.875%, 11-17-14 | 250 | 206 | ||||||
Evraz Group S.A., | ||||||||
8.875%, 4-24-13 | 375 | 315 | ||||||
Indo Integrated Energy B.V., | ||||||||
8.500%, 6-1-12 | 300 | 259 | ||||||
Peabody Energy Corporation, | ||||||||
6.875%, 3-15-13 | 250 | 241 | ||||||
Vedanta Resources plc, | ||||||||
6.625%, 2-22-10 | 250 | 238 | ||||||
1,259 | ||||||||
Paper / Forest Products - 1.52% | ||||||||
International Paper Company, | ||||||||
7.400%, 6-15-14 | 250 | 250 | ||||||
Sino-Forest Corporation, | ||||||||
9.125%, 8-17-11 | 350 | 347 | ||||||
597 | ||||||||
Publishing - 0.90% | ||||||||
Pearson Dollar Finance Two plc, | ||||||||
5.500%, 5-6-13 | 350 | 354 | ||||||
Service - Other - 1.15% | ||||||||
Allied Waste Industries, Inc., | ||||||||
6.500%, 11-15-10 | 250 | 245 | ||||||
Waste Management, Inc., | ||||||||
7.375%, 8-1-10 | 200 | 207 | ||||||
452 | ||||||||
Transportation - Other - 0.58% | ||||||||
Ultrapetrol (Bahamas) Limited, | ||||||||
9.000%, 11-24-14 | 250 | 228 | ||||||
Utilities - 0.70% | ||||||||
CESP - Companhia Energetica de Sao Paulo, | ||||||||
9.750%, 1-15-15 (A) | BRL500 | 272 | ||||||
Utilities - Water - 0.63% | ||||||||
Veolia Environnement, | ||||||||
5.250%, 6-3-13 | $ 250 | 246 | ||||||
Wireless - 1.05% | ||||||||
Mobile TeleSystems OJSC, | ||||||||
8.700%, 6-12-18 (A) | RUB6,000 | 213 | ||||||
VIP Finance Ireland Limited, | ||||||||
8.375%, 4-30-13 | $ 250 | 199 | ||||||
412 | ||||||||
TOTAL CORPORATE DEBT SECURITIES - 24.00% | $ | 9,403 | ||||||
(Cost: $10,095) | ||||||||
SENIOR LOANS | ||||||||
Consumer Products | ||||||||
Wm. Wrigley Jr. Company, | ||||||||
0.000%, 7-17-14 (B) | 250 | 245 | ||||||
TOTAL SENIOR LOANS - 0.63% | $ | 245 | ||||||
(Cost: $248) | ||||||||
OTHER GOVERNMENT SECURITIES | | |||||||
---|---|---|---|---|---|---|---|---|
Australia - 0.41% | ||||||||
Commonwealth of Australia Treasury Bonds, | ||||||||
5.750%, 6-15-11 (A) | AUD200 | 161 | ||||||
Canada - 3.68% | ||||||||
Canadian Government Bonds, | ||||||||
4.000%, 9-1-10 (A) | CAD1,500 | 1,441 | ||||||
France - 8.63% | ||||||||
French Treasury Notes (BTAN), | ||||||||
3.750%, 9-12-10 (A) | EUR2,400 | 3,382 | ||||||
Germany - 1.79% | ||||||||
Bundesobligation, | ||||||||
3.250%, 4-9-10 (A) | EUR500 | 701 | ||||||
Mexico - 0.59% | ||||||||
United Mexican States Government Bonds, | ||||||||
9.000%, 12-24-09 (A) | MXN2,500 | 231 | ||||||
Norway - 1.99% | ||||||||
Norway Government Bonds: | ||||||||
5.500%, 5-15-09 (A) | NOK1,250 | 212 | ||||||
6.000%, 5-16-11 (A) | 3,200 | 566 | ||||||
778 | ||||||||
Russia - 0.92% | ||||||||
Open Joint Stock Company "Russian Railroads", | ||||||||
8.500%, 7-6-11 (A) | RUB10,000 | 358 | ||||||
Switzerland - 2.35% | �� | |||||||
Switzerland Government Bonds, | ||||||||
3.500%, 8-7-10 (A) | CHF1,000 | 921 | ||||||
United Kingdom - 4.10% | ||||||||
United Kingdom Treasury, | ||||||||
4.250%, 3-7-11 (A) | GBP900 | 1,607 | ||||||
TOTAL OTHER GOVERNMENT SECURITIES - 24.46% | | | $ | 9,580 | ||||
(Cost: $10,104) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | |||||||
---|---|---|---|---|---|---|---|
Mortgage-Backed Obligations | |||||||
Federal Home Loan Mortgage Corporation Agency REMIC/CMO (Interest Only), | |||||||
5.500%, 1-15-38 (D) | $ 3,701 | $ | 783 | ||||
Federal National Mortgage Association Agency REMIC/CMO, | |||||||
5.000%, 2-25-35 | 485 | 482 | |||||
Federal National Mortgage Association Agency REMIC/CMO (Interest Only): (D) | |||||||
5.000%, 6-25-22 | 1,164 | 157 | |||||
5.000%, 7-25-23 | 975 | 177 | |||||
5.500%, 1-25-33 | 1,635 | 317 | |||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
5.000%, 3-1-22 | 805 | 800 | |||||
5.000%, 8-1-23 | 398 | 396 | |||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only), | |||||||
5.000%, 7-16-22 (D) | 1,039 | 117 | |||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates, | |||||||
4.500%, 6-15-23 | 393 | 389 | |||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 9.24% | | | $ | 3,618 | |||
(Cost: $3,568) | |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | |||||||
Treasury Inflation Protected Obligations | |||||||
United States Treasury Notes: | |||||||
1.625%, 1-15-18 (E) | 315 | 298 | |||||
1.750%, 1-15-28 (E) | 420 | 365 | |||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 1.69% | | | $ | 663 | |||
(Cost: $675) | |||||||
SHORT-TERM SECURITIES | |||||||
Repurchase Agreements | |||||||
J.P. Morgan Securities, Inc., Repurchase Agreement dated 9-30-08 to be repurchased at $15,821, | |||||||
0.050%, 10-1-08 (F) | 15,821 | 15,821 | |||||
TOTAL SHORT-TERM SECURITIES - 40.39% | | | | $ | 15,821 | ||
(Cost: $15,821) | |||||||
TOTAL INVESTMENT SECURITIES - 100.41% | | | | | $ | 39,330 | ||
(Cost: $40,511) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.41%) | | | (159 | ) | ||||
NET ASSETS - 100.00% | | | | | $ | 39,171 | ||
Notes to Schedule of Investments | ||||||||||||
The following forward currency contracts were outstanding at September 30, 2008: | ||||||||||||
Type | Currency | Currency Amount Covered by Contract | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||
Sell | Australian Dollar | 203 | 8-27-09 | $ | 13 | $ | - | |||||
Sell | Brazilian Real | 978 | 1-7-09 | 27 | - | |||||||
Buy | British Pound | 1 | 1-12-09 | - | -* | |||||||
Sell | British Pound | 911 | 8-24-09 | 65 | - | |||||||
Sell | Canadian Dollar | 1,563 | 8-24-09 | - | -* | |||||||
Buy | Chinese Yuan Renminbi | 700 | 6-17-09 | - | 6 | |||||||
Buy | Chinese Yuan Renminbi | 5,200 | 9-29-09 | - | 1 | |||||||
Buy | Chinese Yuan Renminbi | 2,600 | 6-17-10 | - | 34 | |||||||
Buy | Chinese Yuan Renminbi | 1,000 | 6-18-10 | - | 15 | |||||||
Buy | Chinese Yuan Renminbi | 1,600 | 6-21-10 | - | 26 | |||||||
Buy | Chinese Yuan Renminbi | 2,300 | 7-12-10 | - | 38 | |||||||
Buy | Chinese Yuan Renminbi | 2,000 | 7-14-10 | - | 34 | |||||||
Sell | Euro | 470 | 8-13-09 | 28 | - | |||||||
Sell | Euro | 2,471 | 8-21-09 | 111 | - | |||||||
Sell | Mexican Peso | 2,600 | 1-7-09 | 7 | - | |||||||
Sell | New Zealand Dollar | 814 | 9-21-09 | - | 20 | |||||||
Sell | Norwegian Krone | 4,700 | 1-15-09 | 9 | - | |||||||
Sell | Russian Ruble | 15,700 | 1-15-09 | - | 3 | |||||||
$ | 260 | $ | 177 | |||||||||
*Not shown due to rounding as amount is less than 500. |
(A)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, CAD - Canadian Dollar, CHF - Swiss Franc, EUR - Euro, GBP - British Pound, MXN - Mexican Peso, NOK - Norwegian Krone, NZD - New Zealand Dollar and RUB - Russian Ruble). |
(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008. |
(C)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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of this security amounted to 1.29% of net assets. |
(D)Amount shown in principal column represents notional amount for computation of interest. |
(E)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. |
(F)Collateralized by $14,192 United States Treasury Bond, 5.250% due 11-15-28; market value and accrued interest aggregate $16,030. |
The following acronyms are used throughout this portfolio: CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit |
Country Diversification | |||
(as a % of net assets) | |||
United States | 58.08% | ||
France | 9.26% | ||
United Kingdom | 6.25% | ||
Canada | 4.30% | ||
Other | 22.11% | ||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY GLOBAL BOND FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value: | ||||
Securities (cost - $24,690) | $ | 23,509 | ||
Repurchase agreement (cost - $15,821) | 15,821 | |||
39,330 | ||||
Receivables: | ||||
Investment securities sold | 2,813 | |||
Dividends and interest | 313 | |||
Fund shares sold | 202 | |||
Unrealized appreciation on forward currency contracts | 260 | |||
Prepaid and other assets | 86 | |||
Total assets | 43,004 | |||
LIABILITIES | ||||
Due to custodian | 2,476 | |||
Payable for investment securities purchased | 1,062 | |||
Unrealized depreciation on forward currency contracts | 177 | |||
Payable to Fund shareholders | 87 | |||
Accrued management fee | 20 | |||
Accrued distribution and service fees | 6 | |||
Accrued shareholder servicing | 3 | |||
Accrued accounting services fee | 2 | |||
Total liabilities | 3,833 | |||
Total net assets | $ | 39,171 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 40,144 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 253 | |||
Accumulated net realized loss on investment transactions | (122 | ) | ||
Net unrealized depreciation in value of investments | (1,104 | ) | ||
Net assets applicable to outstanding units of capital | $ | 39,171 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $9.76 | |||
Class B | $9.73 | |||
Class C | $9.73 | |||
Class I | $9.78 | |||
Class Y | $9.77 | |||
Capital shares outstanding: | ||||
Class A | 1,406 | |||
Class B | 531 | |||
Class C | 953 | |||
Class I | 505 | |||
Class Y | 621 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY GLOBAL BOND FUND
For the Period from April 4, 2008(1) through September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Interest and amortization | $ | 439 | ||
Expenses: | ||||
Investment management fee | 88 | |||
Distribution and service fees: | ||||
Class A | 12 | |||
Class B | 21 | |||
Class C | 26 | |||
Class Y | 6 | |||
Registration fees | 40 | |||
Shareholder servicing: | ||||
Class A | 4 | |||
Class B | –– | * | ||
Class C | 1 | |||
Class I | 3 | |||
Class Y | 4 | |||
Accounting services fee | 11 | |||
Custodian fees | 9 | |||
Legal fees | 6 | |||
Audit fees | –– | * | ||
Other | 6 | |||
Total | 237 | |||
Less expenses in excess of limit | (63 | ) | ||
Total expenses | 174 | |||
Net investment income | 265 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (120 | ) | ||
Realized net loss on forward currency contracts | (2 | ) | ||
Realized net loss on foreign currency transactions | (12 | ) | ||
Realized net loss on investments | (134 | ) | ||
Unrealized depreciation in value of securities during the period | (1,181 | ) | ||
Unrealized appreciation in value of forward currency contracts during the period | 83 | |||
Unrealized depreciation in value of foreign currency exchange transactions during the period | (6 | ) | ||
Unrealized depreciation in value of investments during the period | (1,104 | ) | ||
Net loss on investments | (1,238 | ) | ||
Net decrease in net assets resulting from operations | $ | (973 | ) | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY GLOBAL BOND FUND
(In Thousands) (Unaudited)
For the period from 4-4-08(1) through | ||||
---|---|---|---|---|
9-30-08 | ||||
INCREASE IN NET ASSETS | ||||
Operations: | ||||
Net investment income | $ | 265 | ||
Realized net loss on investments | (134 | ) | ||
Unrealized depreciation | (1,104 | ) | ||
Net decrease in net assets resulting from operations | (973 | ) | ||
Distributions to shareholders from:(2) | ||||
Net investment income: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
Realized gains on investment transactions: | ||||
Class A | (–– | ) | ||
Class B | (–– | ) | ||
Class C | (–– | ) | ||
Class I | (–– | ) | ||
Class Y | (–– | ) | ||
(–– | ) | |||
Capital share transactions | 40,144 | |||
Total increase | 39,171 | |||
NET ASSETS | ||||
Beginning of period | –– | |||
End of period | $ | 39,171 | ||
Accumulated undistributed net investment income | $ | 253 | ||
(1)Commencement of operations.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL BOND FUND(1)
Class A Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-4-08(2) through | |||||
---|---|---|---|---|---|
9-30-08 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.11 | (3) | |||
Net realized and unrealized loss on investments | (0.35 | )(3) | |||
Total from investment operations | (0.24 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 9.76 | |||
Total return(4) | - -2.40 | % | |||
Net assets, end of period (in millions) | $14 | ||||
Ratio of expenses to average net assets including expense waiver | 1.04 | %(5) | |||
Ratio of net investment income to average net assets including expense waiver | 2.18 | %(5) | |||
Ratio of expenses to average net assets excluding expense waiver | 1.49 | %(5) | |||
Ratio of net investment income to average net assets excluding expense waiver | 1.73 | %(5) | |||
Portfolio turnover rate | 1 | % |
(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL BOND FUND(1)
Class B Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-4-08(2) through | |||||
---|---|---|---|---|---|
9-30-08 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.06 | (3) | |||
Net realized and unrealized loss on investments | (0.33 | )(3) | |||
Total from investment operations | (0.27 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 9.73 | |||
Total return | - -2.70 | % | |||
Net assets, end of period (in millions) | $5 | ||||
Ratio of expenses to average net assets including expense waiver | 1.78 | %(4) | |||
Ratio of net investment income to average net assets including expense waiver | 1.28 | %(4) | |||
Ratio of expenses to average net assets excluding expense waiver | 2.18 | %(4) | |||
Ratio of net investment income to average net assets excluding expense waiver | 0.88 | %(4) | |||
Portfolio turnover rate | 1 | % |
(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL BOND FUND(1)
Class C Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-4-08(2) through | |||||
---|---|---|---|---|---|
9-30-08 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.07 | (3) | |||
Net realized and unrealized loss on investments | (0.34 | )(3) | |||
Total from investment operations | (0.27 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 9.73 | |||
Total return | - -2.70 | % | |||
Net assets, end of period (in millions) | $9 | ||||
Ratio of expenses to average net assets including expense waiver | 1.75 | %(4) | |||
Ratio of net investment income to average net assets including expense waiver | 1.42 | %(4) | |||
Ratio of expenses to average net assets excluding expense waiver | 2.16 | %(4) | |||
Ratio of net investment income to average net assets excluding expense waiver | 1.01 | %(4) | |||
Portfolio turnover rate | 1 | % |
(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL BOND FUND(1)
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-4-08(2) through | |||||
---|---|---|---|---|---|
9-30-08 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.11 | (3) | |||
Net realized and unrealized loss on investments | (0.33 | )(3) | |||
Total from investment operations | (0.22 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 9.78 | |||
Total return | - -2.20 | % | |||
Net assets, end of period (in millions) | $5 | ||||
Ratio of expenses to average net assets including expense waiver | 0.80 | %(4) | |||
Ratio of net investment income to average net assets including expense waiver | 2.25 | %(4) | |||
Ratio of expenses to average net assets excluding expense waiver | 1.29 | %(4) | |||
Ratio of net investment income to average net assets excluding expense waiver | 1.76 | %(4) | |||
Portfolio turnover rate | 1 | % |
(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY GLOBAL BOND FUND (1)
Class Y Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-4-08(2) through | |||||
---|---|---|---|---|---|
9-30-08 | |||||
Net asset value, beginning of period | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.10 | (3) | |||
Net realized and unrealized loss on investments | (0.33 | )(3) | |||
Total from investment operations | (0.23 | ) | |||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 9.77 | |||
Total return | - -2.30 | % | |||
Net assets, end of period (in millions) | $6 | ||||
Ratio of expenses to average net assets including expense waiver | 1.04 | %(4) | |||
Ratio of net investment income to average net assets including expense waiver | 2.05 | %(4) | |||
Ratio of expenses to average net assets excluding expense waiver | 1.54 | %(4) | |||
Ratio of net investment income to average net assets excluding expense waiver | 1.55 | %(4) | |||
Portfolio turnover rate | 1 | % |
(1)Global Bond Fund (formerly Global Strategic Income Fund) changed its name effective June 2, 2008.
See Accompanying Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MORTGAGE SECURITIES FUND
Portfolio Highlights
On September 30, 2008, Ivy Mortgage Securities Fund had net assets totaling $234,157 (in thousands) invested in a diversified portfolio of:
50.18% | Corporate Bonds | |
47.98% | United States Government and Government Agency Obligations | |
1.84% | Cash and Cash Equivalents |
On September 30, 2008, the breakdown of bonds (by ratings) held by the Fund was as follows:
Investment Grade | |||||
AAA | 73.88 | % | |||
AA | 6.99 | % | |||
A | 4.19 | % | |||
BBB | 5.81 | % | |||
Non-Investment Grade | |||||
BB | 2.37 | % | |||
Non-Rated | 4.92 | % | |||
Cash and Cash Equivalents | 1.84 | % |
Ratings reflected in the wheel are taken from Standard & Poor's and Moody's.
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.
On Sept. 7, 2008, the Federal Housing Finance Agency (FHFA), an agency of the U.S. government, placed Fannie Mae and Freddie Mac into conservatorship, a statutory process with the objective of returning the entities to normal business operations. FHFA will act as the conservator to operate Fannie Mae and Freddie Mac until they are stabilized. It is unclear what effect this conservatorship will have on the securities issued or guaranteed by Fannie Mae or Freddie Mac.
The Investments of Ivy Mortgage Securities Fund | |||||||
---|---|---|---|---|---|---|---|
September 30, 2008 | |||||||
(In Thousands) (Unaudited) | |||||||
CORPORATE DEBT SECURITIES | Principal | Value | |||||
Car Loan - 0.90% | |||||||
Capital Auto Receivables Asset Trust 2006-1, | |||||||
7.160%, 1-15-13 (A) | $ | 1,140 | $ | 1,081 | |||
Capital Auto Receivables Asset Trust 2007-2, | |||||||
8.300%, 2-18-14 (A) | 1,105 | 1,021 | |||||
2,102 | |||||||
Other Mortgage-Backed Securities - 46.87% | |||||||
Aames Mortgage Trust 2001-4, | |||||||
6.650%, 1-25-32 (B) | 413 | 336 | |||||
ABFS Mortgage Loan Trust 2001-2, | |||||||
6.990%, 12-25-31 (B) | 859 | 660 | |||||
ABFS Mortgage Loan Trust 2002-4, | |||||||
7.423%, 12-15-33 (B) | 1,469 | 931 | |||||
Asset Securitization Corporation, | |||||||
7.675%, 2-14-43 (B) | 1,430 | 946 | |||||
Asset Securitization Corporation (Interest Only): | |||||||
1.589%, 10-13-26 (A)(B)(C) | 3,866 | 112 | |||||
8.621%, 8-13-29 (B)(C) | 1,186 | 233 | |||||
Associates Manufactured Housing Contract Pass-Through Certificates, | |||||||
7.900%, 3-15-27 (B) | 630 | 635 | |||||
Banc of America Alternative Loan Trust 2004-11, | |||||||
6.000%, 12-25-34 | 1,024 | 832 | |||||
Banc of America Alternative Loan Trust 2005-10, | |||||||
5.668%, 11-25-35 (B) | 1,134 | 373 | |||||
Banc of America Alternative Loan Trust 2005-12, | |||||||
5.809%, 1-25-36 (B) | 1,600 | 740 | |||||
Banc of America Alternative Loan Trust 2005-6, | |||||||
6.000%, 7-25-35 | 797 | 567 | |||||
Banc of America Alternative Loan Trust 2005-8: | |||||||
5.582%, 9-25-35 (B) | 397 | 194 | |||||
5.582%, 9-25-35 (B) | 1,998 | 1,033 | |||||
Banc of America Alternative Loan Trust 2006-4: | |||||||
6.224%, 5-25-46 (B) | 882 | 240 | |||||
6.224%, 5-25-46 (B) | 631 | 286 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2002-2, | |||||||
6.200%, 7-11-43 (A) | 1,200 | 1,005 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2003-1, | |||||||
4.900%, 9-11-36 (A) | 1,000 | 773 | |||||
Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2004-6, | |||||||
5.104%, 12-10-42 (A)(B) | 800 | 570 | |||||
Banc of America Funding 2004-2 Trust, | |||||||
6.500%, 7-20-32 | 1,181 | 1,067 | |||||
Banc of America Funding Corporation, | |||||||
5.013%, 9-20-34 (B) | 1,139 | 871 | |||||
Banc of America Mortgage 2007-1 Trust, | |||||||
6.000%, 3-25-37 | 3,572 | 1,507 | |||||
Banc of America Mortgage Alternative Loan Trust 2003-5, | |||||||
5.500%, 7-25-33 | 1,248 | 406 | |||||
Banc of America Mortgage Trust 2003-9, | |||||||
5.500%, 12-25-33 | 801 | 455 | |||||
Banc of America Mortgage Trust 2004-1, | |||||||
5.500%, 2-25-34 | 1,910 | 1,623 | |||||
Banc of America Mortgage Trust 2004-2: | |||||||
5.000%, 3-25-19 | 216 | 166 | |||||
5.000%, 3-25-19 | 277 | 241 | |||||
5.500%, 3-25-34 | 471 | 386 | |||||
Banc of America Mortgage Trust 2004-3: | |||||||
4.875%, 4-25-19 | 201 | 146 | |||||
4.875%, 4-25-19 | 375 | 313 | |||||
Banc of America Mortgage Trust 2004-7, | |||||||
5.750%, 8-25-34 | 978 | 886 | |||||
Banc of America Structured Securities Trust 2002-X1 F, | |||||||
6.274%, 10-11-33 (D) | 1,750 | 1,653 | |||||
BankAmerica Manufactured Housing Contract Trust: | |||||||
7.800%, 10-10-26 | 1,549 | 1,579 | |||||
7.015%, 1-10-28 (B) | 660 | 661 | |||||
Bear Stearns Commercial Mortgage Securities Inc., Series 2000-WF1 Trust Fund, | |||||||
6.500%, 2-15-32 | 1,015 | 874 | |||||
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6, | |||||||
6.000%, 10-15-36 (A)(B) | 938 | 488 | |||||
BlackRock Capital Finance, | |||||||
7.750%, 9-25-26 (A) | 515 | 283 | |||||
C-Bass 2005-CB3 Trust, | |||||||
5.109%, 12-25-34 (B) | 1,254 | 1,219 | |||||
C-Bass 2006-MH1 Trust, | |||||||
5.970%, 10-25-36 (A)(B) | 1,399 | 1,225 | |||||
C-Bass Mortgage Loan Trust 2007-CB2, | |||||||
5.891%, 2-25-37 (B) | 289 | 282 | |||||
Centex Home Equity Loan Trust 2005-C, | |||||||
5.048%, 6-25-35 (B) | 2,301 | 1,968 | |||||
Chase Mortgage Finance Trust, Series 2003-S11, | |||||||
5.500%, 10-25-33 | 830 | 761 | |||||
CHEQ Home Equity Loan Trust, Series 2006-S2, | |||||||
3.317%, 7-25-27 (B) | 446 | 427 | |||||
CHL Mortgage Pass-Through Trust 2002-32, | |||||||
5.544%, 1-25-33 (B)(D) | 1,252 | 814 | |||||
CHL Mortgage Pass-Through Trust 2003-HYB2, | |||||||
3.943%, 7-19-33 (B) | 1,728 | 1,589 | |||||
Citicorp Residential Mortgage Trust Series 2006-2, | |||||||
5.872%, 9-25-36 (B) | 220 | 219 | |||||
CitiMortgage Alternative Loan Trust, Series 2006-A7, | |||||||
6.000%, 12-25-36 (B) | 3,417 | 2,427 | |||||
CitiMortgage Alternative Loan Trust, Series 2007-A7, | |||||||
6.238%, 7-25-37 (B) | 639 | 41 | |||||
Collateralized Mortgage Obligation Trust, | |||||||
5.000%, 7-1-18 | 28 | 28 | |||||
COMM 2006-CNL2, | |||||||
5.756%, 2-5-19 (A)(B) | 925 | 742 | |||||
Commercial Mortgage Asset Trust, | |||||||
7.800%, 11-17-32 (B) | 1,000 | 1,045 | |||||
Conseco Finance Securitizations Corp., | |||||||
6.981%, 6-15-32 (B) | 673 | 652 | |||||
CountryPlace Manufactured Housing Contract Trust 2005-1, | |||||||
4.800%, 12-15-35 (B)(D) | 1,275 | 1,058 | |||||
Countrywide Home Loans Alternative Loan Trust 2004-J9, | |||||||
4.586%, 10-25-34 (B) | 1,325 | 1,257 | |||||
Countrywide Home Loans, Inc. Asset-Backed Certificates, Series 2005-10, | |||||||
4.915%, 2-25-36 (B) | 5,000 | 4,166 | |||||
Credit Suisse First Boston Mortgage Securities Corp., | |||||||
6.000%, 11-25-18 | 398 | 345 | |||||
CSAB Mortgage-Backed Trust 2006-2, | |||||||
6.080%, 9-25-36 (B) | 3,540 | 1,846 | |||||
CSFB Commercial Mortgage Trust 2003-C4, | |||||||
5.322%, 8-15-36 (A)(B) | 1,000 | 528 | |||||
CWHEQ Home Equity Loan Trust, Series 2006-S3, | |||||||
6.518%, 1-25-29 (B) | 2,135 | 433 | |||||
FFCA Secured Lending Corporation: | |||||||
4.098%, 2-18-22 (B)(D) | 1,000 | 949 | |||||
3.848%, 2-18-22 (B)(D) | 1,500 | 1,438 | |||||
First Horizon Mortgage Pass-Through Trust 2003-8, | |||||||
5.132%, 10-25-33 (B) | 358 | 205 | |||||
First Horizon Mortgage Pass-Through Trust 2007-4, | |||||||
5.500%, 8-25-22 | 1,039 | 943 | |||||
Flagstar Home Equity Loan Trust 2007-1, | |||||||
5.997%, 1-25-35 (A)(B) | 1,630 | 960 | |||||
Ford Credit Auto Owner Trust 2006-B, | |||||||
7.120%, 2-15-13 (A) | 635 | 477 | |||||
Ford Credit Auto Owner Trust 2007-A, | |||||||
7.050%, 12-15-13 (A) | 390 | 280 | |||||
Global Mortgage Securitization 2005-A Ltd. and Global Mortgage Securitization 2005-A LLC: | |||||||
5.394%, 4-25-32 (B) | 1,127 | 683 | |||||
5.250%, 4-25-32 | 725 | 662 | |||||
Global Mortgage Securitization Ltd. and Global Mortgage Securitization, LLC: | |||||||
5.250%, 11-25-32 (D) | 990 | 826 | |||||
5.250%, 11-25-32 (D) | 462 | 421 | |||||
GMAC Commercial Mortgage Securities, | |||||||
5.940%, 7-1-13 (A) | 69 | 65 | |||||
Green Tree Financial Corporation: | |||||||
7.650%, 4-15-19 | 528 | 537 | |||||
8.300%, 11-15-19 | 374 | 377 | |||||
9.100%, 4-15-25 | 1,075 | 1,093 | |||||
9.000%, 6-15-25 (B) | 1,052 | 1,040 | |||||
Home Equity Loan Trust 2003-HS2, | |||||||
5.090%, 7-25-33 (B) | 83 | 76 | |||||
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1, | |||||||
5.506%, 11-11-38 (D) | 2,003 | 1,562 | |||||
Impac CMB Trust Series 2003-2F, | |||||||
6.000%, 1-25-33 (B) | 783 | 505 | |||||
J.P. Morgan Alternative Loan Trust 2006-A6, | |||||||
5.950%, 11-25-36 (B) | 2,500 | 1,592 | |||||
J.P. Morgan Chase Commercial Mortgage Securities Corp., | |||||||
6.221%, 10-12-37 (A)(B) | 2,300 | 2,000 | |||||
J.P. Morgan Chase Commercial Mortgage Securities Trust 2006-LDP8, | |||||||
5.370%, 5-15-45 | 500 | 456 | |||||
J.P. Morgan Mortgage Acquisition Trust 2006-CW2, | |||||||
6.337%, 8-25-36 (B) | 2,725 | 1,957 | |||||
J.P. Morgan Mortgage Trust 2004-A3, | |||||||
4.286%, 7-25-34 (B) | 1,230 | 999 | |||||
J.P. Morgan Mortgage Trust 2005-S2: | |||||||
5.673%, 9-25-35 (B) | 2,182 | 1,482 | |||||
6.500%, 9-25-35 | 2,129 | 1,927 | |||||
J.P. Morgan Mortgage Trust 2006-A2: | |||||||
4.334%, 11-25-33 (B) | 1,101 | 1,057 | |||||
4.121%, 8-25-34 (B) | 2,078 | 1,363 | |||||
J.P. Morgan Mortgage Trust 2006-A6, | |||||||
6.042%, 10-25-36 (B) | 2,510 | 1,594 | |||||
J.P. Morgan Mortgage Trust 2006-S3: | |||||||
6.187%, 8-25-36 | 1,176 | 478 | |||||
6.500%, 8-25-36 | 1,810 | 1,394 | |||||
J.P. Morgan Mortgage Trust 2007-A1, | |||||||
4.813%, 7-25-35 (B) | 2,170 | 972 | |||||
J.P. Morgan Mortgage Trust 2007-A2, | |||||||
5.698%, 4-25-37 (B) | 2,766 | 2,492 | |||||
LB-UBS Commercial Mortgage Trust 2003-C3, | |||||||
4.846%, 2-15-37 (A)(B) | 300 | 222 | |||||
Lehman Mortgage Trust Mortgage Pass-Through Certificates, Series 2006-5, | |||||||
6.881%, 9-25-36 (B) | 1,992 | 251 | |||||
Lehman XS Trust, Series 2005-8, | |||||||
5.690%, 12-25-35 | 3,057 | 2,278 | |||||
MASTR Asset Securitization Trust 2003-6, | |||||||
5.500%, 7-25-33 | 1,520 | 1,394 | |||||
Mid-State Capital Corporation 2004-1 Trust: | |||||||
6.497%, 8-15-37 | 1,103 | 997 | |||||
6.005%, 8-15-37 | 350 | 320 | |||||
Morgan Stanley Capital I Trust 2003-IQ5, | |||||||
6.092%, 4-15-38 (A)(B) | 2,348 | 1,585 | |||||
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1, | |||||||
6.509%, 4-25-17 (B) | 220 | 186 | |||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: | |||||||
5.880%, 11-28-35 (B)(D) | 680 | 306 | |||||
5.880%, 11-28-35 (B)(D) | 340 | 170 | |||||
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4 (Interest Only), | |||||||
1.166%, 11-28-35 (B)(C)(D) | 24,823 | 300 | |||||
Multi Security Asset Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-RR4, | |||||||
5.000%, 11-28-35 (D) | 2,000 | 1,600 | |||||
NationsLink Funding Corporation, Commercial Mortgage Pass-Through Certificates, Series 1998-2, | |||||||
5.000%, 8-20-30 (A) | 1,000 | 797 | |||||
Oakwood Mortgage Investors, Inc.: | |||||||
8.100%, 10-15-21 (D) | 172 | 174 | |||||
7.375%, 8-15-27 | 165 | 165 | |||||
Office Portfolio Trust, Commercial Mortgage Pass-Through Certificates, Series 2001-HRPT, | |||||||
6.778%, 2-3-16 (A) | 700 | 565 | |||||
Origen Manufactured Housing Contract Trust 2004-A, | |||||||
5.700%, 1-15-35 (B) | 543 | 495 | |||||
Origen Manufactured Housing Contract Trust 2004-B, | |||||||
4.750%, 8-15-21 | 400 | 379 | |||||
Origen Manufactured Housing Contract Trust 2005-A, | |||||||
4.970%, 10-15-21 | 935 | 864 | |||||
Origen Manufactured Housing Contract Trust 2005-B: | |||||||
5.605%, 5-15-22 | 360 | 348 | |||||
5.910%, 1-15-37 | 700 | 662 | |||||
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2, | |||||||
6.000%, 2-25-37 | 1,544 | 198 | |||||
Prudential Home Mortgage Securities: | |||||||
6.730%, 4-28-24 (B)(D) | 3 | 2 | |||||
8.033%, 9-28-24 (A)(B) | 19 | 14 | |||||
RAMP Series 2005-RS1 Trust, | |||||||
5.145%, 1-25-35 (B) | 1,013 | 839 | |||||
RASC Series 2003-KS10 Trust, | |||||||
6.410%, 12-25-33 (B) | 273 | 147 | |||||
RBSGC Mortgage Loan Trust 2007-B, | |||||||
5.450%, 7-25-35 (B) | 2,868 | 2,287 | |||||
RESI Finance Limited Partnership 2003-C and RESI Finance DE Corporation 2003-C, | |||||||
3.888%, 9-10-35 (B)(D) | 1,400 | 988 | |||||
RFMSI Series 2004-S5 Trust: | |||||||
4.500%, 5-25-19 | 156 | 115 | |||||
4.500%, 5-25-19 | 314 | 261 | |||||
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, | |||||||
7.750%, 12-25-30 (B) | 1,044 | 1,050 | |||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21, | |||||||
5.400%, 11-25-35 (B) | 1,575 | 788 | |||||
Structured Asset Mortgage Investments, Inc.: | |||||||
5.654%, 4-30-30 (B) | 8 | 6 | |||||
5.654%, 4-30-30 (B) | 17 | 15 | |||||
Structured Asset Securities Corporation: | |||||||
5.540%, 11-25-32 (B) | 221 | 182 | |||||
5.250%, 8-25-33 | 562 | 379 | |||||
5.250%, 8-25-33 | 1,290 | 1,045 | |||||
5.630%, 5-25-34 (B) | 743 | 491 | |||||
6.000%, 6-25-34 (B) | 2,048 | 1,378 | |||||
Vanderbilt Mortgage and Finance, Inc., | |||||||
7.955%, 12-7-24 (B) | 448 | 455 | |||||
Wachovia Bank Commercial Mortgage Trust (The), | |||||||
4.942%, 11-15-34 (A) | 964 | 662 | |||||
Washington Mutual MSC Mortgage Pass-Through Certificates Series 2002-MS11 Trust, | |||||||
5.615%, 12-25-32 (B) | 890 | 762 | |||||
Wells Fargo Alternative Loan 2007-PA3 Trust: | |||||||
6.197%, 7-25-37 (B) | 1,552 | 312 | |||||
6.197%, 7-25-37 (B) | 1,775 | 717 | |||||
5.750%, 7-25-37 | 1,079 | 774 | |||||
Wells Fargo Mortgage Backed Securities 2003-2 Trust, | |||||||
5.250%, 2-25-18 (D) | 241 | 174 | |||||
Wells Fargo Mortgage Backed Securities 2003-4 Trust, | |||||||
5.500%, 6-25-33 | 915 | 594 | |||||
Wells Fargo Mortgage Backed Securities 2003-9 Trust, | |||||||
5.250%, 8-25-33 (A) | 1,110 | 625 | |||||
Wells Fargo Mortgage Backed Securities 2005-16 Trust, | |||||||
5.750%, 1-25-36 | 500 | 433 | |||||
109,756 | |||||||
Other Non-Agency REMIC/CMO - 0.15% | |||||||
Banco Hipotecario Nacional: | |||||||
7.916%, 7-25-09 (D) | 23 | - - | * | ||||
4.657%, 3-25-11 (B)(D) | 10 | - - | * | ||||
7.540%, 5-31-17 (D) | - | * | - - | * | |||
Bear Stearns Mortgage Securities Inc., | |||||||
8.000%, 11-25-29 | 355 | 358 | |||||
358 | |||||||
Sequential - 2.26% | |||||||
CHL Mortgage Pass-Through Trust 2003-28, | |||||||
4.150%, 8-25-33 | 1,500 | 1,390 | |||||
RALI Series 2003-QS10 Trust, | |||||||
5.500%, 5-25-33 | 2,186 | 1,932 | |||||
RALI Series 2003-QS11 Trust, | |||||||
5.750%, 6-25-33 | 2,433 | 1,961 | |||||
5,283 | |||||||
TOTAL CORPORATE DEBT SECURITIES - 50.18% | | | $ | 117,499 | |||
(Cost: $160,960) | |||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | |||||||
Agency Obligations - 0.17% | |||||||
Federal Home Loan Bank, | |||||||
3.625%, 12-17-10 (E) | 400 | 402 | |||||
Mortgage-Backed Obligations - 47.58% | |||||||
Federal Home Loan Mortgage Association Fixed Rate Participation Certificates, | |||||||
5.000%, 10-1-34 | 3,380 | 3,292 | |||||
Federal Home Loan Mortgage Corporation Adjustable Rate Participation Certificates, | |||||||
11.331%, 3-15-09 (B) | 71 | 71 | |||||
Federal Home Loan Mortgage Corporation Agency REMIC/CMO, | |||||||
5.000%, 6-15-31 | 2,000 | 1,968 |
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates: | |||||||
5.500%, 12-1-17 | 566 | 576 | |||||
5.500%, 9-1-19 | 898 | 909 | |||||
3.500%, 2-15-30 | 1,509 | 1,460 | |||||
6.500%, 9-1-32 | 949 | 986 | |||||
5.300%, 1-15-33 | 206 | 202 | |||||
5.000%, 7-15-33 | 2,064 | 2,011 | |||||
5.500%, 5-1-34 | 1,101 | 1,101 | |||||
6.500%, 5-1-34 | 705 | 726 | |||||
5.500%, 5-1-34 | 708 | 708 | |||||
6.500%, 10-1-34 | 1,042 | 1,068 | |||||
5.500%, 10-1-34 | 899 | 899 | |||||
5.000%, 5-15-35 | 2,196 | 2,099 | |||||
5.000%, 8-1-35 | 828 | 808 | |||||
5.500%, 10-1-35 | 3,968 | 3,947 | |||||
5.500%, 10-1-35 | 1,399 | 1,398 | |||||
5.000%, 12-1-35 | 744 | 725 | |||||
6.500%, 7-1-36 | 889 | 913 | |||||
7.000%, 12-1-37 | 798 | 836 | |||||
Federal National Mortgage Association Adjustable Rate Pass-Through Certificates, | |||||||
4.648%, 7-1-35 (B) | 1,081 | 1,092 | |||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
6.000%, 1-1-18 | 304 | 311 | |||||
5.500%, 2-1-18 | 349 | 356 | |||||
5.000%, 5-1-18 | 1,108 | 1,115 | |||||
5.000%, 10-1-18 | 1,085 | 1,088 | |||||
5.500%, 9-1-19 | 273 | 277 | |||||
5.500%, 10-1-20 | 2,559 | 2,579 | |||||
5.500%, 2-1-24 | 440 | 441 | |||||
6.000%, 8-1-29 | 361 | 369 | |||||
7.000%, 11-1-31 | 167 | 176 | |||||
6.500%, 2-1-32 | 107 | 111 | |||||
6.500%, 2-1-32 | 160 | 166 | |||||
7.000%, 2-1-32 | 217 | 229 | |||||
6.500%, 2-1-32 | 119 | 124 | |||||
7.000%, 3-1-32 | 300 | 317 | |||||
6.500%, 4-1-32 | 65 | 67 | |||||
6.500%, 5-1-32 | 117 | 122 | |||||
6.500%, 5-1-32 | 73 | 75 | |||||
6.500%, 7-1-32 | 563 | 585 | |||||
6.500%, 9-1-32 | 65 | 67 | |||||
6.000%, 9-1-32 | 129 | 132 | |||||
6.500%, 10-1-32 | 54 | 57 | |||||
6.000%, 10-1-32 | 857 | 876 | |||||
6.000%, 10-1-32 | 858 | 877 | |||||
6.000%, 11-1-32 | 403 | 411 | |||||
6.000%, 11-1-32 | 665 | 678 | |||||
6.000%, 3-1-33 | 214 | 218 | |||||
6.000%, 3-1-33 | 1,121 | 1,145 | |||||
6.000%, 3-1-33 | 772 | 789 | |||||
6.000%, 3-1-33 | 998 | 1,019 | |||||
5.500%, 4-1-33 | 1,556 | 1,560 | |||||
5.500%, 5-1-33 | 489 | 489 | |||||
5.500%, 5-1-33 | 250 | 251 | |||||
6.000%, 6-1-33 | 648 | 660 | |||||
6.000%, 6-1-33 | 1,616 | 1,644 | |||||
6.500%, 8-1-33 | 42 | 43 | |||||
6.000%, 10-1-33 | 235 | 239 | |||||
5.000%, 11-1-33 | 1,563 | 1,528 | |||||
6.000%, 12-1-33 | 464 | 474 | |||||
5.500%, 1-1-34 | 764 | 764 | |||||
5.500%, 1-1-34 | 601 | 601 | |||||
5.500%, 3-1-34 | 2,015 | 2,019 | |||||
5.000%, 3-1-34 | 376 | 368 | |||||
5.000%, 3-1-34 | 880 | 860 | |||||
5.500%, 4-1-34 | 1,745 | 1,748 | |||||
5.500%, 4-1-34 | 552 | 552 | |||||
5.000%, 5-1-34 | 172 | 168 | |||||
5.500%, 7-1-34 | 1,587 | 1,589 | |||||
6.000%, 8-1-34 | 552 | 561 | |||||
5.500%, 9-1-34 | 1,072 | 1,073 | |||||
6.000%, 9-1-34 | 709 | 720 | |||||
6.500%, 9-1-34 | 840 | 865 | |||||
6.000%, 10-1-34 | 5,000 | 5,064 | |||||
5.000%, 10-1-34 | 1,155 | 1,125 | |||||
5.500%, 10-1-34 | 3,547 | 3,537 | |||||
6.000%, 11-1-34 | 289 | 294 | |||||
5.500%, 11-1-34 | 638 | 640 | |||||
6.500%, 11-1-34 | 59 | 61 | |||||
5.500%, 1-1-35 | 492 | 491 | |||||
5.500%, 2-1-35 | 2,119 | 2,122 | |||||
4.500%, 2-1-35 | 428 | 406 | |||||
6.500%, 3-1-35 | 1,005 | 1,038 | |||||
6.000%, 4-1-35 | 1,381 | 1,400 | |||||
5.500%, 7-1-35 | 683 | 682 | |||||
5.000%, 7-1-35 | 723 | 706 | |||||
5.500%, 9-1-35 | 355 | 355 | |||||
5.500%, 10-1-35 | 1,393 | 1,393 | |||||
5.500%, 10-1-35 | 809 | 809 | |||||
6.500%, 2-1-36 | 618 | 637 | |||||
5.500%, 2-1-36 | 1,446 | 1,427 | |||||
6.500%, 6-1-36 | 1,087 | 1,116 | |||||
6.000%, 8-1-36 | 1,854 | 1,880 | |||||
6.500%, 10-1-36 | 1,950 | 1,999 | |||||
6.000%, 11-1-36 | 1,872 | 1,898 | |||||
6.000%, 5-1-37 | 903 | 916 | |||||
6.500%, 8-1-37 | 1,782 | 1,829 | |||||
6.500%, 9-1-37 | 1,697 | 1,742 | |||||
7.000%, 10-1-37 | 482 | 504 | |||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only): (C) | |||||||
0.933%, 3-16-34 (B) | 6,731 | 213 | |||||
0.773%, 7-16-40 (B) | 3,462 | 91 | |||||
0.178%, 3-16-42 (B) | 12,203 | 81 | |||||
1.228%, 6-17-45 (B) | 18,376 | 766 | |||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
7.875%, 5-15-17 | 577 | 593 | |||||
6.250%, 7-15-24 | 217 | 223 | |||||
5.500%, 3-16-32 | 4,575 | 4,624 | |||||
5.000%, 7-15-33 | 866 | 851 | |||||
5.000%, 7-15-34 | 759 | 746 | |||||
5.500%, 12-15-34 | 1,345 | 1,350 | |||||
5.000%, 1-15-35 | 1,503 | 1,476 | |||||
5.500%, 10-1-35 | 2,975 | 2,978 | |||||
5.000%, 12-15-35 | 1,731 | 1,701 | |||||
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 1, | |||||||
7.207%, 2-15-25 (B) | 205 | 217 | |||||
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 2, | |||||||
7.793%, 2-15-25 | 62 | 66 | |||||
111,395 | |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 47.75% | | | $ | 111,797 | |||
(Cost: $113,056) | |||||||
UNITED STATES GOVERNMENT OBLIGATIONS | |||||||
Treasury Obligations | |||||||
United States Treasury Notes, | |||||||
4.500%, 3-31-12 (E) | 500 | 532 | |||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS - 0.23% | | | $ | 532 | |||
(Cost: $516) | |||||||
SHORT-TERM SECURITIES | |||||||
---|---|---|---|---|---|---|---|
Commercial Paper - 11.64% | |||||||
Air Products and Chemicals, Inc., | |||||||
1.500%, 10-1-08 | $ | 4,178 | $ | 4,178 | |||
Danaher Corporation, | |||||||
1.750%, 10-6-08 | 4,000 | 3,999 | |||||
E.I. du Pont de Nemours and Company, | |||||||
2.100%, 10-22-08 | 5,000 | 4,994 | |||||
Merck & Co., Inc., | |||||||
2.100%, 10-15-08 | 2,100 | 2,098 | |||||
Pfizer Inc., | |||||||
1.800%, 10-8-08 | 5,000 | 4,998 | |||||
Shell International Finance B.V. and Royal Dutch Shell plc (Royal Dutch Shell plc), | |||||||
2.100%, 10-9-08 | 7,000 | 6,997 | |||||
27,264 | |||||||
United States Government Obligations - 1.28% | |||||||
United States Treasury Bills, | |||||||
0.320%, 10-30-08 | 3,000 | 2,999 | |||||
TOTAL SHORT-TERM SECURITIES - 12.92% | | | | $ | 30,263 | ||
(Cost: $30,263) | |||||||
TOTAL INVESTMENT SECURITIES - 111.08% | | | | $ | 260,091 | ||
(Cost: $304,795) | |||||||
LIABILITIES, NET OF CASH(E) AND OTHER ASSETS - (11.08%) | (25,934 | ) | |||||
NET ASSETS - 100.00% | | | | $ | 234,157 | ||
Notes to Schedule of Investments |
*Not shown due to rounding as amount is less than 500. |
(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 liquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $16,080 or 6.87% of net assets. |
(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2008. |
(C)Amount shown in principal column represents notional amount for computation of interest. |
(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 illiquid under guidelines established by the Board of Trustees. At September 30, 2008, the total value of these securities amounted to $12,435 or 5.31% of net assets. |
(E)Serves as collateral for the following open futures contracts at September 30, 2008: | |||||||||||
Description | Type | Expiration Date | Number of Contracts | Market Value | Unrealized Appreciation (Depreciation) | ||||||
United States 10 Year Treasury Note | Short | 12-19-08 | (324) | $ | (37,139) | $ | 683 | ||||
United States 5 Year Treasury Note | Short | 12-31-08 | (214) | (24,018) | (103) | ||||||
$ | (61,157) | $ | 580 | ||||||||
The following acronyms are used throughout this portfolio: CMO = Collateralized Mortgage Obligation REMIC = Real Estate Mortgage Investment Conduit | |||||||||||
See Accompanying Notes to Financial Statements. |
Statement of Assets and Liabilities
IVY MORTGAGE SECURITIES FUND
September 30, 2008
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $304,795) | $ | 260,091 | ||
Receivables: | ||||
Investment securities sold | 7,138 | |||
Interest | 1,274 | |||
Variation margin - futures | 905 | |||
Fund shares sold | 273 | |||
Prepaid and other assets | 128 | |||
Total assets | 269,809 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 33,046 | |||
Payable for variation margin - futures | 1,223 | |||
Payable to Fund shareholders | 773 | |||
Due to custodian | 227 | |||
Accrued shareholder servicing | 122 | |||
Accrued management fee | 98 | |||
Accrued distribution and service fees | 88 | |||
Dividends payable | 67 | |||
Accrued accounting services fee | 8 | |||
Total liabilities | 35,652 | |||
Total net assets | $ | 234,157 | ||
NET ASSETS | ||||
Capital paid in (shares authorized - unlimited) | $ | 286,233 | ||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | –– | |||
Accumulated net realized loss on investment transactions | (7,952 | ) | ||
Net unrealized depreciation in value of investments | (44,124 | ) | ||
Net assets applicable to outstanding units of capital | $ | 234,157 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $8.99 | |||
Class B | $8.99 | |||
Class C | $8.99 | |||
Class E | $8.99 | |||
Class I | $8.99 | |||
Class Y | $8.99 | |||
Capital shares outstanding: | ||||
Class A | 22,802 | |||
Class B | 921 | |||
Class C | 1,496 | |||
Class E | 33 | |||
Class I | 29 | |||
Class Y | 775 |
See Accompanying Notes to Financial Statements.
Statement of Operations
IVY MORTGAGE SECURITIES FUND
For the Six Months Ended September 30, 2008
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income: | ||||
Interest and amortization | $ | 8,358 | ||
Expenses: | ||||
Investment management fee | 660 | |||
Shareholder servicing: | ||||
Class A | 424 | |||
Class B | 29 | |||
Class C | 27 | |||
Class E | 1 | |||
Class I | –– | * | ||
Class Y | 7 | |||
Distribution and service fees: | ||||
Class A | 289 | |||
Class B | 48 | |||
Class C | 75 | |||
Class E | –– | * | ||
Class Y | 10 | |||
Accounting services fee | 49 | |||
Audit fees | 23 | |||
Custodian fees | 18 | |||
Legal fees | 2 | |||
Other | 111 | |||
Total | 1,773 | |||
Less expenses in excess of limit | (— | )* | ||
Total expenses | 1,773 | |||
Net investment income | 6,585 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS | ||||
Realized net loss on securities | (4,619 | ) | ||
Realized net loss on futures | (136 | ) | ||
Realized net loss on investments | (4,755 | ) | ||
Unrealized depreciation in value of securities during the period | (14,961 | ) | ||
Unrealized appreciation in value of futures contracts during the period | 2,204 | |||
Unrealized depreciation in value of investments during the period | (12,757 | ) | ||
Net loss on investments | (17,512 | ) | ||
Net decrease in net assets resulting from operations | $ | (10,927 | ) | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MORTGAGE SECURITIES FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2008 | 2008 | |||||||
DECREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 6,585 | $ | 15,552 | ||||
Realized net loss on investments | (4,755 | ) | (2,257 | ) | ||||
Unrealized depreciation | (12,757 | ) | (27,857 | ) | ||||
Net decrease in net assets resulting from operations | (10,927 | ) | (14,562 | ) | ||||
Distributions to shareholders from:(1) | ||||||||
Net investment income: | ||||||||
Class A | (5,840 | ) | (13,698 | ) | ||||
Class B | (197 | ) | (468 | ) | ||||
Class C | (320 | ) | (759 | ) | ||||
Class E | (7 | ) | (9 | ) | ||||
Class I | (7 | ) | (13 | ) | ||||
Class Y | (214 | ) | (605 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | (–– | ) | ||||
Class I | (–– | ) | (–– | ) | ||||
Class Y | (–– | ) | (–– | ) | ||||
(6,585 | ) | (15,552 | ) | |||||
Capital share transactions | (41,326 | ) | 1,606 | |||||
Total decrease | (58,838 | ) | (28,508 | ) | ||||
NET ASSETS | ||||||||
Beginning of period | 292,995 | 321,503 | ||||||
End of period | $ | 234,157 | $ | 292,995 | ||||
Accumulated undistributed net investment income | $ | –– | $ | –– | ||||
(1)See "Financial Highlights" on pages 295 - 300.
See Accompanying 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 | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | 9-30-03 | |||||||||||||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.97 | $ | 11.07 | |||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||
Net investment income | 0.24 | 0.49 | 0.51 | 0.48 | 0.49 | 0.25 | 0.59 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.63 | ) | (0.97 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.03 | (0.12 | ) | |||||||||||||
Total from investment operations | (0.39 | ) | (0.48 | ) | 0.66 | 0.24 | 0.22 | 0.28 | 0.47 | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.49 | ) | (0.51 | ) | (0.48 | ) | (0.49 | ) | (0.25 | ) | (0.57 | ) | |||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | (0.00 | ) | |||||||||||
Total distributions | (0.24 | ) | (0.49 | ) | (0.51 | ) | (0.48 | ) | (0.50 | ) | (0.29 | ) | (0.57 | ) | |||||||||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.97 | |||||||||||
Total return(1) | -4.12 | % | -4.69 | % | 6.52 | % | 2.24 | % | 2.12 | % | 2.70 | % | 4.19 | %(2) | |||||||||||
Net assets, end of period (in millions) | $205 | $256 | $278 | $243 | $188 | $134 | $91 | ||||||||||||||||||
Ratio of expenses to average net assets including expense waiver | 1.27 | %(3) | 1.14 | % | 1.14 | % | 1.05 | % | 0.95 | % | 1.05 | %(3)(4) | 0.97 | % | |||||||||||
Ratio of net investment income to average net assets including expense waiver | 5.06 | %(3) | 4.80 | % | 4.90 | % | 4.51 | % | 4.59 | % | 4.56 | %(3)(4) | 5.27 | % | |||||||||||
Ratio of expenses to average net assets excluding expense waiver | 1.27 | %(3)(5) | 1.14 | %(5) | 1.14 | %(5) | 1.16 | % | 1.23 | % | 1.38 | %(3)(4) | 1.12 | % | |||||||||||
Ratio of net investment income to average net assets excluding expense waiver | 5.06 | %(3)(5) | 4.80 | %(5) | 4.90 | %(5) | 4.40 | % | 4.31 | % | 4.22 | %(3)(4) | 5.12 | % | |||||||||||
Portfolio turnover rate | 67 | % | 98 | % | 121 | % | 154 | % | 200 | % | 57 | % | 83 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.19 | 0.39 | 0.40 | 0.36 | 0.37 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.63 | ) | (0.97 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | |||||||||||
Total from investment operations | (0.44 | ) | (0.58 | ) | 0.55 | 0.12 | 0.10 | 0.25 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.19 | ) | (0.39 | ) | (0.40 | ) | (0.36 | ) | (0.37 | ) | (0.12 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | |||||||||
Total distributions | (0.19 | ) | (0.39 | ) | (0.40 | ) | (0.36 | ) | (0.38 | ) | (0.16 | ) | |||||||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | |||||||||
Total return | -4.60 | % | - -5.62 | % | 5.45 | % | 1.12 | % | 0.92 | % | 2.32 | % | |||||||||
Net assets, end of period (in millions) | $8 | $11 | $12 | $11 | $7 | $1 | |||||||||||||||
Ratio of expenses to average net assets | 2.25 | %(2) | 2.11 | % | 2.16 | % | 2.16 | % | 2.16 | % | 1.89 | %(2) | |||||||||
Ratio of net investment income to average net assets | 4.07 | %(2) | 3.82 | % | 3.88 | % | 3.41 | % | 3.29 | % | 3.59 | %(2) | |||||||||
Portfolio turnover rate | 67 | % | 98 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.20 | 0.41 | 0.42 | 0.38 | 0.38 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.63 | ) | (0.97 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | |||||||||||
Total from investment operations | (0.43 | ) | (0.56 | ) | 0.57 | 0.14 | 0.11 | 0.25 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.20 | ) | (0.41 | ) | (0.42 | ) | (0.38 | ) | (0.38 | ) | (0.12 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | |||||||||
Total distributions | (0.20 | ) | (0.41 | ) | (0.42 | ) | (0.38 | ) | (0.39 | ) | (0.16 | ) | |||||||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | |||||||||
Total return | -4.49 | % | - -5.43 | % | 5.69 | % | 1.34 | % | 1.05 | % | 2.32 | % | |||||||||
Net assets, end of period (in millions) | $14 | $17 | $19 | $19 | $12 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 2.02 | %(2) | 1.92 | % | 1.93 | % | 1.93 | % | 2.03 | % | 1.86 | %(2) | |||||||||
Ratio of net investment income to average net assets | 4.30 | %(2) | 4.02 | % | 4.11 | % | 3.63 | % | 3.41 | % | 3.61 | %(2) | |||||||||
Portfolio turnover rate | 67 | % | 98 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.22 | 0.44 | |||||||
Net realized and unrealized loss on investments | (0.63 | ) | (0.97 | ) | |||||
Total from investment operations | (0.41 | ) | (0.53 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.22 | ) | (0.44 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.22 | ) | (0.44 | ) | |||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | |||||
Total return(2) | -4.29 | % | - -5.20 | % | |||||
Net assets, end of period (in thousands) | $297 | $294 | |||||||
Ratio of expenses to average net assets including expense waiver | 1.61 | %(3) | 1.73 | %(3) | |||||
Ratio of net investment income to average net assets including expense waiver | 4.73 | %(3) | 4.20 | %(3) | |||||
Ratio of expenses to average net assets excluding expense waiver | 1.89 | %(3) | 1.73 | %(3)(4) | |||||
Ratio of net investment income to average net assets excluding expense waiver | 4.45 | %(3) | 4.20 | %(3)(4) | |||||
Portfolio turnover rate | 67 | % | 98 | %(5) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Financial Highlights
IVY MORTGAGE SECURITIES FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-2-07(1) through | ||||||||
---|---|---|---|---|---|---|---|---|---|
9-30-08 | 3-31-08 | ||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income | 0.26 | 0.57 | |||||||
Net realized and unrealized loss on investments | (0.63 | ) | (0.97 | ) | |||||
Total from investment operations | (0.37 | ) | (0.40 | ) | |||||
Less distributions from: | |||||||||
Net investment income | (0.26 | ) | (0.57 | ) | |||||
Capital gains | (0.00 | ) | (0.00 | ) | |||||
Total distributions | (0.26 | ) | (0.57 | ) | |||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | |||||
Total return | - -3.88 | % | -4.05 | % | |||||
Net assets, end of period (in thousands) | $257 | $251 | |||||||
Ratio of expenses to average net assets | 0.79 | %(2) | 0.78 | %(2) | |||||
Ratio of net investment income to average net assets | 5.55 | %(2) | 5.15 | %(2) | |||||
Portfolio turnover rate | 67 | % | 98 | %(3) |
(1)Commencement of operations of the class.
See Accompanying 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 | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-08 | 2008 | 2007 | 2006 | 2005 | 3-31-04 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | $ | 10.87 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.25 | 0.51 | 0.52 | 0.48 | 0.48 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.63 | ) | (0.97 | ) | 0.15 | (0.24 | ) | (0.27 | ) | 0.13 | |||||||||||
Total from investment operations | (0.38 | ) | (0.46 | ) | 0.67 | 0.24 | 0.21 | 0.28 | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.25 | ) | (0.51 | ) | (0.52 | ) | (0.48 | ) | (0.48 | ) | (0.15 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.04 | ) | |||||||||
Total distributions | (0.25 | ) | (0.51 | ) | (0.52 | ) | (0.48 | ) | (0.49 | ) | (0.19 | ) | |||||||||
Net asset value, end of period | $ | 8.99 | $ | 9.62 | $ | 10.59 | $ | 10.44 | $ | 10.68 | $ | 10.96 | |||||||||
Total return | -4.00 | % | -4.57 | % | 6.66 | % | 2.26 | % | 1.95 | % | 2.56 | % | |||||||||
Net assets, end of period (in millions) | $7 | $9 | $13 | $7 | $6 | $3 | |||||||||||||||
Ratio of expenses to average net assets | 1.02 | %(2) | 1.01 | % | 1.00 | % | 1.03 | % | 1.12 | % | 1.09 | %(2) | |||||||||
Ratio of net investment income to average net assets | 5.31 | %(2) | 4.93 | % | 5.04 | % | 4.53 | % | 4.41 | % | 4.38 | %(2) | |||||||||
Portfolio turnover rate | 67 | % | 98 | % | 121 | % | 154 | % | 200 | % | 57 | %(3) |
(1)Commencement of operations of the class.
See Accompanying Notes to Financial Statements.
Notes to Financial Statements
September 30, 2008 (Unaudited)
(In Thousands, Except Where Otherwise Noted)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, as amended, and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Trust issues seventeen 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 Stock Exchange are valued at fair value as determined in good faith unde r 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, prior to translation.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 income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date m ay 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 4 - 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 continue to qualify as a regulated investment company under the Internal Revenue Code. Accordingly, provision has not been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of September 30, 2008, management believes that under this standard no liability for unrecognized tax positions is required. The Trust is subject to examination by U.S. federal and state authorities for returns filed for years after 2004. See Note 5 - 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. Concentration of risk - For Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund, Ivy International Balanced Fund, Ivy International Core Equity Fund, Ivy International Growth Fund, Ivy Pacific Opportunities Fund, Ivy Global Natural Resources Fund and Ivy Global Bond Fund, a Fund may have a significant investment in international securities. International investing involves additional risks, including currency fluctuations, political or economic conditions affecting the foreign country, investment and repatriation restrictions, and limited and less reliable investor information.
I. New accounting pronouncements - In March 2008, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 161, "Disclosures about Derivative Instruments and Hedging Activities - an amendment of FASB Statement No. 133" (SFAS 161). SFAS 161 amends and expands disclosures about derivative instruments and hedging activities. SFAS 161 requires qualitative disclosures about the objectives and strategies of derivative instruments, quantitative disclosures about the fair value amounts of and gains and losses on derivative instruments, and disclosures of credit-risk-related contingent features in hedging activities. SFAS 161 is effective for fiscal years beginning after November 15, 2008. The Trust will institute SFAS 161 during the fiscal year ending March 31, 2010 and its potential impact, if any, on its 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 Dividend Opportunities 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 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% | |
Ivy Managed European/ Pacific Fund | All levels | 0.05% |
Ivy Managed International Opportunities Fund | All levels | 0.05% |
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 European Opportunities Fund | Up to $250 Million | 1.00% |
Over $250 Million up to $500 Million | 0.85% | |
Over $500 Million | 0.75% | |
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 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 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 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 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 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 Global Bond Fund | Up to $500 Million | 0.625% |
Over $500 Million and up to $1 Billion | 0.60% | |
Over $1 Billion and up to $1.5 Billion | 0.55% | |
Over $1.5 Billion | 0.50% | |
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% |
These fees are accrued daily and are paid monthly. However, IICO has voluntarily agreed to waive its management fee for Ivy Dividend Opportunities Fund, Ivy Global Bond, 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 ended September 30, 2008, IICO voluntarily waived its fee as shown in the following table:
Ivy Global Bond Fund | $ | 56 |
Mackenzie Financial Corporation (MFC) serves as subadvisor to Ivy Global Natural Resources Fund under an agreement with IICO and receives a fee as follows:
Fund | Net Asset Breakpoints | Annual Rate |
---|---|---|
Ivy Global Natural Resources 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% |
As of December 7, 2006, MFC also 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% |
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 March 24, 2008, IICO serves as investment manager to Ivy Small Cap Value Fund.
From February 2, 2007 to March 24, 2008, BlackRock Capital Management, Inc. served as subadvisor to Ivy Small Cap Value Fund under an agreement with IICO and received a fee equal to, on an annual basis, 0.50% of the Fund's average net assets.
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 | $ | 11.5 | |||||
From | $ | 25 | to | $ | 50 | $ | 23.1 | |||||
From | $ | 50 | to | $ | 100 | $ | 35.5 | |||||
From | $ | 100 | to | $ | 200 | $ | 48.4 | |||||
From | $ | 200 | to | $ | 350 | $ | 63.2 | |||||
From | $ | 350 | to | $ | 550 | $ | 82.5 | |||||
From | $ | 550 | to | $ | 750 | $ | 96.3 | |||||
From | $ | 750 | to | $ | 1,000 | $ | 121.6 | |||||
$ | 1,000 and Over | $ | 148.5 | |||||||||
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 and Administrative 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 and Advisor Class, for each shareholder account that was in existence at any time during the prior month: Ivy Balanced Fund, Ivy Dividend Opportunities 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, Ivy Global 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 that fee if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios, 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, not to exceed $1.50 per shareholder account per month. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classe s. 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 Ivy Funds Distributor, Inc. (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, 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, 2008, IFDI received the following amounts in sales commissions and CDSC:
Sales Commissions | CDSC | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Class A | Class B | Class C | Class E | ||||||||||||||||||
Ivy Dividend Opportunities Fund | $ | 215 | $ | 3 | $ | 8 | $ | 2 | $ | –– | |||||||||||
Ivy Small Cap Value Fund | 124 | 1 | 3 | –– | * | –– | |||||||||||||||
Ivy Value Fund | 29 | –– | 2 | –– | * | –– | |||||||||||||||
Ivy Managed European/ Pacific Fund | 164 | –– | * | 2 | 1 | –– | |||||||||||||||
Ivy Managed International Opportunities Fund | 302 | –– | * | 1 | 1 | –– | |||||||||||||||
Ivy Cundill Global Value Fund | 257 | 1 | 35 | 3 | –– | ||||||||||||||||
Ivy European Opportunities Fund | 304 | 1 | 26 | 2 | –– | ||||||||||||||||
Ivy International Balanced Fund | 277 | 1 | 8 | 11 | –– | ||||||||||||||||
Ivy International Core Equity Fund | 261 | 3 | 2 | 2 | –– | ||||||||||||||||
Ivy International Growth Fund | 78 | –– | * | 8 | 1 | –– | |||||||||||||||
Ivy Pacific Opportunities Fund | $ | 607 | $ | –– | * | $ | 12 | $ | 4 | $ | –– | ||||||||||
Ivy Balanced Fund | 67 | –– | * | 1 | 1 | –– | |||||||||||||||
Ivy Global Natural Resources Fund | 2,784 | 9 | 275 | 146 | –– | ||||||||||||||||
Ivy Real Estate Securities Fund | 394 | –�� | * | 9 | 1 | –– | |||||||||||||||
Ivy Bond Fund | 79 | 1 | 2 | –– | * | –– | |||||||||||||||
Ivy Global Bond Fund | 25 | 1 | –– | –– | * | ||||||||||||||||
Ivy Mortgage Securities Fund | 122 | –– | * | 11 | –– | * | –– | ||||||||||||||
*Not shown due to rounding. |
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, 2008, IFDI paid the following amounts:
Ivy Dividend Opportunities Fund | $ | 254 | |
Ivy Small Cap Value Fund | 125 | ||
Ivy Value Fund | 33 | ||
Ivy Managed European/Pacific Fund | 145 | ||
Ivy Managed International Opportunities Fund | 267 | ||
Ivy Cundill Global Value Fund | 276 | ||
Ivy European Opportunities Fund | 322 | ||
Ivy International Balanced Fund | 327 | ||
Ivy International Core Equity Fund | 387 | ||
Ivy International Growth Fund | 102 | ||
Ivy Pacific Opportunities Fund | 628 | ||
Ivy Balanced Fund | 87 | ||
Ivy Global Natural Resources Fund | 4,398 | ||
Ivy Real Estate Securities Fund | 412 | ||
Ivy Bond Fund | 78 | ||
Ivy Global Bond Fund | 46 | ||
Ivy Mortgage Securities Fund | 131 |
Under a Distribution and Service Plan for Class A, Class B, Class C, Class E, Class R and Class Y shares adopted by the Trust on behalf of each Fund (other than the Ivy Managed Funds) and a Distribution and Service Plan for Class A, Class B, Class C, Class E and Class Y shares adopted by the Trust on behalf of the Ivy Managed Funds, each Fund may pay certain amounts pursuant to Rule 12b-1 under the Investment Company Act of 1940. For Class A shares, 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 (or compensate IFDI with respect to Ivy Managed Funds) 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.
For Class B shares and Class C shares, 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 (or compensate IFDI with respect to the Ivy Managed Funds) for amounts it expends in connection with the provision of personal services to Fund shareholders and/or maintenance of shareholder accounts.
For Class B shares and Class C shares, 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.
For Class E shares, 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 services 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 f ield 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 shareholder accounts with respect to Class E shares.
For Class R shares of Ivy Global Natural Resources Fund and Ivy Real Estate Securities Fund, 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.
For Class Y shares, 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, 2008, IICO did not reimburse any expenses under this agreement.
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, 2008, IFDI reimbursed the Fund's service fees as shown:
Ivy Cundill Global Value Fund, Class Y | $ | 12 | |
Ivy Global Natural Resources Fund, Class Y | 204 |
Effective August 1, 2008, IICO, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy International Growth Fund, Class Y at the following level:
Fund and Class | Expense Limitation (as a percentage of average net assets of each Class) | ||||
---|---|---|---|---|---|
Ivy International Growth Fund, Class Y | 1.42% |
During the six-month period ended September 30, 2008, IFDI reimbursed the Fund's fees as shown:
Ivy International Growth Fund, Class Y | $ | –– | * |
From June 2, 2008 to July 31, 2009, IICO, IFDI and WRSCO have contractually agreed to reimburse sufficient management fees, 12b-1 and/or shareholder servicing fees to cap the expenses for each Class of Ivy Global Bond Fund at the following levels for the specified classes:
Fund and Class | Expense Limitation (as a percentage of average net assets of each Class) | ||||
---|---|---|---|---|---|
Ivy Global Bond Fund, Class A | 0.99% | ||||
Ivy Global Bond Fund, Class B | 1.74% | ||||
Ivy Global Bond Fund, Class C | 1.74% | ||||
Ivy Global Bond Fund, Class I | 0.74% | ||||
Ivy Global Bond Fund, Class Y | 0.99% |
During the six-month period ended September 30, 2008, IFDI reimbursed the Fund's fees as shown:
Ivy Global Bond Fund, Class A | $ | 2 | ||
Ivy Global Bond Fund, Class B | –– | |||
Ivy Global Bond Fund, Class C | –– | * | ||
Ivy Global Bond Fund, Class I | 2 | |||
Ivy Global Bond Fund, Class Y | 3 | |||
*Not shown due to rounding. |
The Funds have adopted an Expense Reimbursement Plan regarding the Service Fees paid by Class A, Class B and Class C. The Plan allows for the current payment of expenses from prior years that were not paid at that time due to the respective Class at the 0.25% limit for reimbursement. In future years, should a Class have Service Fees below the 0.25% limit, IFDI could at that time request payment of some or all of the amounts disclosed below, still subject to the 0.25% limit:
Class A | Class B | Class C | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Ivy Dividend Opportunities Fund | $ | 41 | $ | –– | * | $ | 18 | |||||
Ivy Small Cap Value Fund | 79 | –– | * | 10 | ||||||||
Ivy Value Fund | 24 | –– | * | 1 | ||||||||
Ivy Cundill Global Value Fund | 369 | 1 | 32 | |||||||||
Ivy European Opportunities Fund | 182 | –– | * | 29 | ||||||||
Ivy International Balanced Fund | 123 | –– | * | 25 | ||||||||
Ivy International Core Equity Fund | 96 | 1 | 27 | |||||||||
Ivy International Growth Fund | 218 | 1 | 6 | |||||||||
Ivy Pacific Opportunities Fund | 193 | 1 | 44 | |||||||||
Ivy Balanced Fund | 19 | –– | * | 4 | ||||||||
Ivy Global Natural Resources Fund | 965 | 12 | 340 | |||||||||
Ivy Real Estate Securities Fund | 198 | –– | * | 21 | ||||||||
Ivy Bond Fund | 29 | –– | * | 6 | ||||||||
Ivy Global Bond Fund | –– | –– | –– | |||||||||
Ivy Mortgage Securities Fund | 156 | –– | * | 30 |
The Funds have not recorded a liability for this potential reimbursement since the obligation to reimburse for these unrecovered service fees ceases upon termination of the expense reimbursement plan.
Through July 31, 2009, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to ensure that the total annual Class E operating expenses do not exceed the following levels for the specified Funds:
Class E | |||
---|---|---|---|
Ivy Dividend Opportunities Fund | 1.37% | ||
Ivy Cundill Global Value Fund | 1.59% | ||
Ivy International Balanced Fund | 1.33% | ||
Ivy International Core Equity Fund | 1.53% | ||
Ivy Global Natural Resources Fund | 1.27% | ||
Ivy Real Estate Securities Fund | 1.67% | ||
Ivy Bond Fund | 1.21% | ||
Ivy Mortgage Securities Fund | 1.14% |
During the six-month period ended September 30, 2008, the following amounts were reimbursed as shown:
Class E | ||||
---|---|---|---|---|
Ivy Dividend Opportunities Fund | $ | 3 | ||
Ivy Cundill Global Value Fund | 1 | |||
Ivy International Balanced Fund | 2 | |||
Ivy International Core Equity Fund | 2 | |||
Ivy Global Natural Resources Fund | 7 | |||
Ivy Real Estate Securities Fund | 1 | |||
Ivy Bond Fund | 1 | |||
Ivy Mortgage Securities Fund | –– | * | ||
*Not shown due to rounding. |
In addition, effective September 1, 2008, IFDI and WRSCO have voluntarily agreed to waive sufficient Fund Class Y expenses to ensure that Class Y expenses do not surpass Class A expenses. The affected Funds and the amount of the waivers were as follows:
Class Y | ||||
---|---|---|---|---|
Ivy European Opportunities Fund | $ | –– | * | |
Ivy Bond Fund | –– | * | ||
*Not shown due to rounding. |
During the six-month period ended September 30, 2008, the Funds paid Trustees' regular compensation of $133, which is included in other expenses.
NOTE 3 - Investment ValuationsThe Trust has instituted Financial Accounting Standards Board Statement of Financial Accounting Standards No.157, Fair Value Measurements (FAS 157). In accordance with FAS 157, fair value is defined as the price that each Fund would receive upon selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. FAS 157 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. An individual investment's fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including each Fund's own assumptions in determining the fair value of investments)
The following tables summarize the valuation of each Fund's investments by the above FAS 157 fair value hierarchy levels as of September 30, 2008:
Investments | Other Financial Instruments+ | ||||||||
---|---|---|---|---|---|---|---|---|---|
Ivy Dividend Opportunities Fund | |||||||||
Level 1 - Quoted Prices | $ | 196,621 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 34,352 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 230,973 | $ | –– | |||||
Ivy Small Cap Value Fund | |||||||||
Level 1 - Quoted Prices | $ | 117,599 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 18,793 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 136,392 | $ | –– | |||||
Ivy Value Fund | |||||||||
Level 1 - Quoted Prices | $ | 52,432 | $ | (181 | ) | ||||
Level 2 - Other Significant Observable Inputs | 2,256 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | (26 | ) | ||||||
Total | $ | 54,688 | $ | (207 | ) | ||||
Ivy Managed European/Pacific Fund | |||||||||
Level 1 - Quoted Prices | $ | 51,731 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 148 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 51,879 | $ | –– | |||||
Ivy Managed International Opportunities Fund | |||||||||
Level 1 - Quoted Prices | $ | 111,938 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs, | 239 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 112,177 | $ | –– | |||||
Ivy Cundill Global Value Fund | |||||||||
Level 1 - Quoted Prices | $ | 159,303 | $ | 22,709 | |||||
Level 2 - Other Significant Observable Inputs | 262,723 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 422,026 | $ | 22,709 | |||||
Ivy European Opportunities Fund | |||||||||
Level 1 - Quoted Prices | $ | 1,972 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 349,798 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | * | –– | ||||||
Total | $ | 351,770 | $ | –– | |||||
Ivy International Balanced Fund | |||||||||
Level 1 - Quoted Prices | $ | 21,290 | $ | 1,488 | |||||
Level 2 - Other Significant Observable Inputs | 274,334 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 295,624 | $ | 1,488 | |||||
Ivy International Core Equity Fund | |||||||||
Level 1 - Quoted Prices | $ | 10,919 | $ | (363 | ) | ||||
Level 2 - Other Significant Observable Inputs | 269,330 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 280,249 | $ | (363 | ) | ||||
Ivy International Growth Fund | |||||||||
Level 1 - Quoted Prices | $ | 12,776 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 173,709 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 186,485 | $ | –– | |||||
Ivy Pacific Opportunities Fund | |||||||||
Level 1 - Quoted Prices | $ | 77,339 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 301,055 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 2,305 | –– | |||||||
Total | $ | 380,699 | $ | –– | |||||
Ivy Balanced Fund | |||||||||
Level 1 - Quoted Prices | $ | 66,998 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 39,454 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 25 | –– | |||||||
Total | $ | 106,477 | $ | –– | |||||
Ivy Global Natural Resources Fund | |||||||||
Level 1 - Quoted Prices | $ | 4,313,334 | $ | 16,816 | |||||
Level 2 - Other Significant Observable Inputs | 1,214,499 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 30,989 | –– | |||||||
Total | $ | 5,558,822 | $ | 16,816 | |||||
Ivy Real Estate Securities Fund | |||||||||
Level 1 - Quoted Prices | $ | 397,134 | $ | –– | |||||
Level 2 - Other Significant Observable Inputs | 29,971 | –– | |||||||
Level 3 - Significant Unobservable Inputs | –– | –– | |||||||
Total | $ | 427,105 | $ | –– | |||||
Ivy Bond Fund | |||||||||
Level 1 - Quoted Prices | $ | 348 | $ | 200 | |||||
Level 2 - Other Significant Observable Inputs | 142,598 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 1,683 | –– | |||||||
Total | $ | 144,629 | $ | 200 | |||||
Ivy Global Bond Fund | |||||||||
Level 1 - Quoted Prices | $ | –– | $ | 83 | |||||
Level 2 - Other Significant Observable Inputs | 38,699 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 631 | –– | |||||||
Total | $ | 39,330 | $ | 83 | |||||
Ivy Mortgage Securities Fund | |||||||||
Level 1 - Quoted Prices | $ | –– | $ | 580 | |||||
Level 2 - Other Significant Observable Inputs | 255,626 | –– | |||||||
Level 3 - Significant Unobservable Inputs | 4,465 | –– | |||||||
Total | $ | 260,091 | $ | 580 | |||||
+Other financial instruments are derivative instruments not reflected in the schedule of investments, such as options, futures, forward currency contracts and swap contracts. Options are shown at market value above, but only appreciation/depreciation is shown in the Statement of Assets and Liabilities. | |||||||||
*Not shown due to rounding. |
The following tables are a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Investments | Other Financial Instruments+ | ||||||||
---|---|---|---|---|---|---|---|---|---|
Ivy Value Fund | |||||||||
Beginning balance 4-1-08 | $ | –– | $ | –– | |||||
Net realized gain (loss) | –– | (42 | ) | ||||||
Net change in unrealized appreciation (depreciation) | –– | 33 | |||||||
Net purchases (sales) | –– | (17 | ) | ||||||
Transfers in and/or out of Level 3 | –– | –– | |||||||
Ending Balance 9-30-08 | $ | –– | $ | (26 | ) | ||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | –– | $ | 33 | |||||
Ivy European Opportunities Fund | |||||||||
Beginning balance 4-1-08 | $ | –– | * | $ | –– | ||||
Net realized gain (loss) | –– | –– | |||||||
Net change in unrealized appreciation (depreciation) | –– | * | –– | ||||||
Net purchases (sales) | –– | –– | |||||||
Transfers in and/or out of Level 3 | –– | –– | |||||||
Ending Balance 9-30-08 | $ | –– | * | $ | –– | ||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | –– | * | $ | –– | ||||
Ivy Pacific Opportunities Fund | |||||||||
Beginning balance 4-1-08 | $ | 1,987 | $ | –– | |||||
Net realized gain (loss) | –– | –– | |||||||
Net change in unrealized appreciation (depreciation) | (432 | ) | –– | ||||||
Net purchases (sales) | 750 | –– | |||||||
Transfers in and/or out of Level 3 | –– | –– | |||||||
Ending Balance 9-30-08 | $ | 2,305 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | 130 | $ | –– | |||||
Ivy Balanced Fund | |||||||||
Beginning balance 4-1-08 | $ | –– | $ | –– | |||||
Net realized gain (loss) | 6 | –– | |||||||
Net change in unrealized appreciation (depreciation) | (2 | ) | –– | ||||||
Net purchases (sales) | (7 | ) | –– | ||||||
Transfers in and/or out of Level 3 | 28 | –– | |||||||
Ending Balance 9-30-08 | $ | 25 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | (2 | ) | $ | –– | ||||
Ivy Global Natural Resources Fund | |||||||||
Beginning balance 4-1-08 | $ | 27,887 | $ | –– | |||||
Net realized gain (loss) | 960 | –– | |||||||
Net change in unrealized appreciation (depreciation) | 3,077 | –– | |||||||
Net purchases (sales) | (935 | ) | –– | ||||||
Transfers in and/or out of Level 3 | –– | –– | |||||||
Ending Balance 9-30-08 | $ | 30,989 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | (1,051 | ) | $ | –– | ||||
Ivy Bond Fund | |||||||||
Beginning balance 4-1-08 | $ | 2,334 | $ | –– | |||||
Net realized gain (loss) | –– | * | –– | ||||||
Net change in unrealized appreciation (depreciation) | (73 | ) | –– | ||||||
Net purchases (sales) | (34 | ) | –– | ||||||
Transfers in and/or out of Level 3 | (544 | ) | –– | ||||||
Ending Balance 9-30-08 | $ | 1,683 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | (129 | ) | $ | –– | ||||
Ivy Global Bond Fund | |||||||||
Beginning balance 4-1-08 | $ | –– | $ | –– | |||||
Net realized gain (loss) | –– | –– | |||||||
Net change in unrealized appreciation (depreciation) | (134 | ) | –– | ||||||
Net purchases (sales) | 1,021 | –– | |||||||
Transfers in and/or out of Level 3 | (256 | ) | –– | ||||||
Ending Balance 9-30-08 | $ | 631 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | (134 | ) | $ | –– | ||||
Ivy Mortgage Securities Fund | |||||||||
Beginning balance 4-1-08 | $ | 3,765 | $ | –– | |||||
Net realized gain (loss) | 1 | –– | |||||||
Net change in unrealized appreciation (depreciation) | (183 | ) | –– | ||||||
Net purchases (sales) | (149 | ) | –– | ||||||
Transfers in and/or out of Level 3 | 1,031 | –– | |||||||
Ending Balance 9-30-08 | $ | 4,465 | $ | –– | |||||
Net change in unrealized appreciation (depreciation) from investments still held as of 9-30-08 | $ | (214 | ) | $ | –– | ||||
+Other financial instruments are derivative instruments not reflected in the schedule of investments, such as options, futures, forward currency contracts and swap contracts. Options are shown at market value above, but only appreciation/depreciation is shown in the Statement of Assets and Liabilities. | |||||||||
*Not shown due to rounding. |
For the six-month period ended September 30, 2008, the cost of purchases and the proceeds from maturities and sales of investments securities, other than U.S. Government and short-term securities, were as follows:
Purchases | Sales | |||||||
---|---|---|---|---|---|---|---|---|
Ivy Dividend Opportunities Fund | $ | 61,539 | $ | 20,117 | ||||
Ivy Small Cap Value Fund | 55,663 | 61,516 | ||||||
Ivy Value Fund | 16,322 | 19,391 | ||||||
Ivy Managed European/Pacific Fund | 13,369 | 759 | ||||||
Ivy Managed International Opportunities Fund | 35,164 | 1,105 | ||||||
Ivy Cundill Global Value Fund | 126,050 | 126,999 | ||||||
Ivy European Opportunities Fund | 222,000 | 247,743 | ||||||
Ivy International Balanced Fund | 46,673 | 30,685 | ||||||
Ivy International Core Equity Fund | 180,648 | 133,996 | ||||||
Ivy International Growth Fund | 105,634 | 105,656 | ||||||
Ivy Pacific Opportunities Fund | 274,758 | 257,496 | ||||||
Ivy Balanced Fund | 22,658 | 13,405 | ||||||
Ivy Global Natural Resources Fund | 9,043,003 | 9,341,959 | ||||||
Ivy Real Estate Securities Fund | 96,512 | 70,301 | ||||||
Ivy Bond Fund | 25,036 | 18,540 | ||||||
Ivy Global Bond Fund | 20,210 | 83 | ||||||
Ivy Mortgage Securities Fund | 1,735 | 31,154 |
Purchases and proceeds from maturities and sales of U.S. Government securities were:
Purchases | Sales | |||||||
---|---|---|---|---|---|---|---|---|
Ivy Balanced Fund | $ | –– | $ | 261 | ||||
Ivy Bond Fund | 205,684 | 186,497 | ||||||
Ivy Global Bond Fund | 4,279 | 36 | ||||||
Ivy Mortgage Securities Fund | 171,855 | 182,119 |
Purchases and proceeds from maturities and sales of affiliates were:
Purchases | Sales | |||||||
---|---|---|---|---|---|---|---|---|
Ivy Pacific Opportunities Fund | $ | 750 | $ | –– | ||||
Ivy Global Natural Resources Fund | 326,216 | 53,036 |
For Federal income tax purposes, cost of investments owned at September 30, 2008 and the related unrealized appreciation (depreciation) were as follows:
Cost | Appreciation | Depreciation | Aggregate Appreciation (Depreciation) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Ivy Dividend Opportunities Fund | $ | 230,352,148 | $ | 16,192,902 | $ | 15,571,801 | $ | 621,101 | |||||
Ivy Small Cap Value Fund | 134,542,000 | 11,075,262 | 9,225,168 | 1,850,094 | |||||||||
Ivy Value Fund | 53,322,740 | 7,493,089 | 6,128,227 | 1,364,862 | |||||||||
Ivy Managed European/ Pacific Fund | 80,098,357 | –– | 28,219,624 | (28,219,624 | ) | ||||||||
Ivy Managed International Opportunities Fund | 150,526,615 | –– | 38,349,942 | (38,349,942 | ) | ||||||||
Ivy Cundill Global Value Fund | 502,147,341 | 48,822,214 | 106,234,007 | (57,411,793 | ) | ||||||||
Ivy European Opportunities Fund | 463,814,703 | 7,275,681 | 119,320,386 | (112,044,705 | ) | ||||||||
Ivy International Balanced Fund | 349,508,882 | 13,403,657 | 65,799,805 | (52,396,148 | ) | ||||||||
Ivy International Core Equity Fund | 342,071,343 | 5,762,012 | 67,947,575 | (62,185,563 | ) | ||||||||
Ivy International Growth Fund | 206,522,388 | 15,366,659 | 35,404,027 | (20,037,368 | ) | ||||||||
Ivy Pacific Opportunities Fund | 515,195,900 | 16,861,681 | 151,358,528 | (134,496,847 | ) | ||||||||
Ivy Balanced Fund | 96,475,479 | 11,635,589 | 1,634,265 | 10,001,324 | |||||||||
Ivy Global Natural Resources Fund | 6,854,520,102 | 121,434,508 | 1,400,295,868 | (1,278,861,360 | ) | ||||||||
Ivy Real Estate Securities Fund | 374,487,639 | 68,571,794 | 15,954,094 | 52,617,700 | |||||||||
Ivy Bond Fund | 156,572,977 | 360,721 | 12,305,112 | (11,944,391 | ) | ||||||||
Ivy Global Bond Fund | 40,594,013 | 143,923 | 1,325,313 | (1,181,390 | ) | ||||||||
Ivy Mortgage Securities Fund | 304,795,917 | 1,010,031 | 45,714,545 | (44,704,514 | ) |
For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2008 and the related net capital losses and post-October activity were as follows:
Ivy Dividend Opportunities Fund | Ivy Small Cap Value Fund | Ivy Value Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 1,114,737 | $ | –– | $ | 434,945 | ||||||
Distributed ordinary income | 1,144,125 | 4,223,778 | 1,419,592 | |||||||||
Undistributed ordinary income | –– | –– | 26,480 | * | ||||||||
Realized long-term capital gains | 580,376 | 2,336,081 | 3,768,568 | |||||||||
Distributed long-term capital gains | 2,015,803 | 4,522,035 | 4,646,513 | |||||||||
Undistributed long-term capital gains | –– | 1,111 | 610 | * | ||||||||
Post-October losses deferred | 2,961,081 | 11,448,396 | 1,800,054 |
Ivy Managed European/ Pacific Fund | Ivy Managed International Opportunities Fund | Ivy Cundill Global Value Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 2,036,791 | $ | 2,574,430 | $ | 18,490,783 | ||||||
Distributed ordinary income | 2,036,791 | 2,468,124 | 28,868,415 | |||||||||
Undistributed ordinary income | –– | 106,306 | 858,386 | |||||||||
Realized long-term capital gains | 2,577,102 | 2,171,746 | 22,751,359 | |||||||||
Distributed long-term capital gains | 101,834 | –– | 41,944,816 | |||||||||
Undistributed long-term capital gains | 2,475,268 | 2,171,746 | 3,183 | |||||||||
Post-October losses deferred | –– | –– | 33,237,072 |
Ivy European Opportunities Fund | Ivy International Balanced Fund | Ivy International Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 16,685,716 | $ | 15,221,467 | $ | 12,288,974 | ||||||
Distributed ordinary income | 15,290,384 | 12,128,367 | 15,229,537 | |||||||||
Undistributed ordinary income | 2,156,824 | 5,042,647 | * | 3,450,991 | ||||||||
Realized long-term capital gains | 57,537,576 | 11,890,591 | 9,027,111 | |||||||||
Distributed long-term capital gains | 48,944,506 | 6,489,354 | 9,412,743 | |||||||||
Undistributed long-term capital gains | 18,952,359 | 7,325,446 | 4,710,841 | |||||||||
Post-October losses deferred | 540,853 | –– | –– | |||||||||
*This entire amount was distributed prior to September 30, 2008. |
Ivy International Growth Fund | Ivy Pacific Opportunities Fund | Ivy Balanced Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 155,242 | $ | 51,357,085 | $ | 1,718,157 | ||||||
Distributed ordinary income | 402,130 | 48,093,720 | 1,717,894 | |||||||||
Undistributed ordinary income | 75,196 | 17,772,429 | 39,048 | * | ||||||||
Realized long-term capital gains | –– | 45,757,101 | 1,586,143 | |||||||||
Distributed long-term capital gains | –– | 14,296,128 | 2,238,984 | |||||||||
Undistributed long-term capital gains | –– | 35,672,676 | 184 | * | ||||||||
Post-October losses deferred | –– | 895,059 | 845,565 |
Ivy Global Natural Resources Fund | Ivy Real Estate Securities Fund | Ivy Bond Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 589,906,320 | $ | 4,215,012 | $ | 3,919,498 | ||||||
Distributed ordinary income | 416,921,811 | 9,990,006 | 3,908,121 | |||||||||
Undistributed ordinary income | 248,854,949 | 1,310,436 | * | 47,586 | * | |||||||
Realized long-term capital gains | 777,184,161 | 20,858,688 | –– | |||||||||
Distributed long-term capital gains | 315,419,590 | 33,727,709 | –– | |||||||||
Undistributed long-term capital gains | 540,665,321 | 1,531 | * | –– | ||||||||
Post-October losses deferred | 23,987,686 | 4,882,240 | –– |
Ivy Mortgage Securities Fund | ||||
---|---|---|---|---|
Net ordinary income | $ | 15,559,407 | ||
Distributed ordinary income | 15,549,194 | |||
Undistributed ordinary income | 187,175 | * | ||
Realized long-term capital gains | –– | |||
Distributed long-term capital gains | –– | |||
Undistributed long-term capital gains | –– | |||
Post-October losses deferred | 1,450,090 | |||
*This entire amount was distributed prior to September 30, 2008. |
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 eight 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 International Growth Fund | Ivy Pacific Opportunities Fund | ||||||||
---|---|---|---|---|---|---|---|---|---|
March 31, 2009 | $ | 50,885,086 | $ | 157,220 | |||||
March 31, 2010 | 146,210,535 | 157,220 | |||||||
March 31, 2011 | 47,213,802 | –– | |||||||
Total carryover | $ | 244,309,423 | $ | 314,440 |
Ivy Bond Fund | Ivy Mortgage Securities Fund | ||||||||
---|---|---|---|---|---|---|---|---|---|
March 31, 2014 | $ | — | $ | 164,447 | |||||
March 31, 2015 | 335,409 | 484,106 | |||||||
March 31, 2016 | –– | 902,106 | |||||||
Total carryover | $ | 335,409 | $ | 1,550,659 |
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 March 31, 2009 and 2010 plus any unused limitations from prior year.
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 $10,637,438 for the period ending March 31, 2009 and $3,234,412 for the period ending March 31, 2010 plus any unused limitations from prior year and the amount of certain built-in gains realized, if any.
NOTE 6 - 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 Small Cap Value Fund, Ivy Value Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy Pacific Opportunities Fund, Ivy Balanced Fund and Ivy Global Bond Fund offer Class E shares to the public. 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 Pacific Opportunities Fund and Ivy Global Natural Resources Fund also offered Advisor Class shares. Advisor Class 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 Sta tement 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, 2008 are summarized below.
Ivy Dividend Opportunities Fund | Ivy Small Cap Value Fund | ||||||||
---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | |||||||||
Class A | 3,415 | 1,992 | |||||||
Class B | 149 | 43 | |||||||
Class C | 741 | 147 | |||||||
Class E | 35 | –– | |||||||
Class I | 4 | 11 | |||||||
Class Y | 1,242 | 76 | |||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 23 | –– | |||||||
Class B | –– | –– | |||||||
Class C | –– | –– | |||||||
Class E | –– | * | –– | ||||||
Class I | –– | * | –– | ||||||
Class Y | 3 | –– | |||||||
Shares redeemed: | |||||||||
Class A | (1,517 | ) | (1,446 | ) | |||||
Class B | (99 | ) | (66 | ) | |||||
Class C | (249 | ) | (167 | ) | |||||
Class E | (13 | ) | (–– | ) | |||||
Class I | (–– | ) | (4 | ) | |||||
Class Y | (411 | ) | (220 | ) | |||||
Increase in outstanding capital shares | 3,323 | 366 | |||||||
*Not shown due to rounding. | |||||||||
Value issued from sale of shares: | |||||||||
Class A | $ | 54,901 | $ | 26,703 | |||||
Class B | 2,387 | 543 | |||||||
Class C | 11,693 | 1,882 | |||||||
Class E | 567 | –– | |||||||
Class I | 58 | 155 | |||||||
Class Y | 20,354 | 1,035 | |||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 360 | –– | |||||||
Class B | –– | –– | |||||||
Class C | –– | –– | |||||||
Class E | 1 | –– | |||||||
Class I | 1 | –– | |||||||
Class Y | 48 | –– | |||||||
Value redeemed: | |||||||||
Class A | (23,855 | ) | (19,189 | ) | |||||
Class B | (1,519 | ) | (842 | ) | |||||
Class C | (3,892 | ) | (2,141 | ) | |||||
Class E | (194 | ) | (–– | ) | |||||
Class I | (- | ) | (49 | ) | |||||
Class Y | (6,497 | ) | (2,989 | ) | |||||
Increase in outstanding capital | $ | 54,413 | $ | 5,108 | |||||
Ivy Value Fund | Ivy Managed European/ Pacific Fund | Ivy Managed International Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 328 | 2,086 | 4,321 | |||||||||
Class B | 22 | 38 | 116 | |||||||||
Class C | 35 | 52 | 132 | |||||||||
Class E | –– | –– | –– | |||||||||
Class I | –– | –– | –– | |||||||||
Class Y | 6 | 9 | 5 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 9 | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | –– | * | –– | –– | ||||||||
Class I | –– | * | –– | –– | ||||||||
Class Y | –– | * | –– | –– | ||||||||
Shares redeemed: | ||||||||||||
Class A | (557 | ) | (788 | ) | (1,159 | ) | ||||||
Class B | (60 | ) | (26 | ) | (48 | ) | ||||||
Class C | (48 | ) | (61 | ) | (45 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (–– | ) | (–– | ) | (–– | ) | ||||||
Class Y | (5 | ) | (1 | ) | (–– | ) | ||||||
Increase (decrease) in outstanding capital shares | (270 | ) | 1,309 | 3,322 | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 5,191 | $ | 19,681 | $ | 42,127 | ||||||
Class B | 344 | 359 | 1,150 | |||||||||
Class C | 532 | 504 | 1,291 | |||||||||
Class E | –– | –– | –– | |||||||||
Class I | –– | –– | –– | |||||||||
Class Y | 98 | 82 | 45 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 133 | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | –– | * | –– | –– | ||||||||
Class I | –– | * | –– | –– | ||||||||
Class Y | 2 | –– | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (8,818 | ) | (7,008 | ) | (10,688 | ) | ||||||
Class B | (948 | ) | (228 | ) | (445 | ) | ||||||
Class C | (751 | ) | (547 | ) | (412 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (–– | ) | (–– | ) | (–– | ) | ||||||
Class Y | (71 | ) | (11 | ) | (–– | ) | ||||||
Increase (decrease) in outstanding capital | $ | (4,288 | ) | $ | 12,832 | $ | 33,068 | |||||
*Not shown due to rounding. |
Ivy Cundill Global Value Fund | Ivy European Opportunities Fund | Ivy International Balanced Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 1,849 | 1,141 | 2,356 | |||||||||
Class B | 64 | 27 | 232 | |||||||||
Class C | 163 | 55 | 537 | |||||||||
Class E | 4 | –– | 22 | |||||||||
Class I | 15 | 390 | 855 | |||||||||
Class Y | 102 | 11 | 57 | |||||||||
Advisor Class | –– | –– | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | –– | 317 | |||||||||
Class B | –– | –– | 12 | |||||||||
Class C | –– | –– | 42 | |||||||||
Class E | –– | –– | 1 | |||||||||
Class I | –– | –– | 76 | |||||||||
Class Y | –– | –– | 2 | |||||||||
Advisor Class | –– | –– | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (6,832 | ) | (2,383 | ) | (3,575 | ) | ||||||
Class B | (430 | ) | (399 | ) | (268 | ) | ||||||
Class C | (2,126 | ) | (374 | ) | (611 | ) | ||||||
Class E | (2 | ) | (–– | ) | (2 | ) | ||||||
Class I | (19 | ) | (37 | ) | (36 | ) | ||||||
Class Y | (136 | ) | (20 | ) | (112 | ) | ||||||
Advisor Class | (9 | ) | (7 | ) | NA | |||||||
Decrease in outstanding capital shares | (7,357 | ) | (1,596 | ) | (95 | ) | ||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 23,464 | $ | 37,997 | $ | 37,084 | ||||||
Class B | 793 | 894 | 3,754 | |||||||||
Class C | 2,002 | 1,808 | 8,583 | |||||||||
Class E | 56 | –– | 351 | |||||||||
Class I | 189 | 13,378 | 13,647 | |||||||||
Class Y | 1,304 | 346 | 920 | |||||||||
Advisor Class | –– | –– | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | –– | 4,839 | |||||||||
Class B | –– | –– | 177 | |||||||||
Class C | –– | –– | 635 | |||||||||
Class E | –– | –– | 17 | |||||||||
Class I | –– | –– | 1,154 | |||||||||
Class Y | –– | –– | 27 | |||||||||
Advisor Class | –– | –– | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (85,378 | ) | (78,361 | ) | (53,292 | ) | ||||||
Class B | (5,231 | ) | (12,652 | ) | (4,023 | ) | ||||||
Class C | (26,012 | ) | (11,834 | ) | (9,157 | ) | ||||||
Class E | (26 | ) | (–– | ) | (31 | ) | ||||||
Class I | (240 | ) | (1,120 | ) | (512 | ) | ||||||
Class Y | (1,747 | ) | (653 | ) | (1,755 | ) | ||||||
Advisor Class | (114 | ) | (221 | ) | NA | |||||||
Decrease in outstanding capital | $ | (90,940 | ) | $ | (50,418 | ) | $ | 2,418 | ||||
Ivy International Core Equity Fund | Ivy International Growth Fund | Ivy Pacific Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 4,310 | 405 | 3,379 | |||||||||
Class B | 192 | 18 | 75 | |||||||||
Class C | 862 | 46 | 169 | |||||||||
Class E | 18 | –– | –– | |||||||||
Class I | 412 | 142 | 531 | |||||||||
Class Y | 339 | 17 | 90 | |||||||||
Advisor Class | 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 | –– | |||||||||
Shares redeemed: | ||||||||||||
Class A | (1,997 | ) | (461 | ) | (4,594 | ) | ||||||
Class B | (143 | ) | (64 | ) | (194 | ) | ||||||
Class C | (454 | ) | (175 | ) | (452 | ) | ||||||
Class E | (5 | ) | (–– | ) | (–– | ) | ||||||
Class I | (19 | ) | (15 | ) | (73 | ) | ||||||
Class Y | (90 | ) | (8 | ) | (109 | ) | ||||||
Advisor Class | NA | NA | (2 | ) | ||||||||
Increase (decrease) in outstanding capital shares | 3,425 | (95 | ) | (1,180 | ) | |||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 72,040 | $ | 14,200 | $ | 57,587 | ||||||
Class B | 2,995 | 595 | 1,177 | |||||||||
Class C | 13,279 | 1,466 | 2,665 | |||||||||
Class E | 288 | –– | –– | |||||||||
Class I | 7,010 | 5,129 | 9,262 | |||||||||
Class Y | 5,603 | 565 | 1,574 | |||||||||
Advisor Class | 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 | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (32,037 | ) | (15,928 | ) | (74,560 | ) | ||||||
Class B | (2,125 | ) | (1,961 | ) | (2,848 | ) | ||||||
Class C | (6,739 | ) | (5,493 | ) | (6,800 | ) | ||||||
Class E | (72 | ) | (–– | ) | (–– | ) | ||||||
Class I | (281 | ) | (485 | ) | (1,133 | ) | ||||||
Class Y | (1,440 | ) | (277 | ) | (1,855 | ) | ||||||
Advisor Class | NA | NA | (21 | ) | ||||||||
Increase (decrease) in outstanding capital | $ | 58,521 | $ | (2,189 | ) | $ | (14,952 | ) | ||||
Ivy Balanced Fund | Ivy Global Natural Resources Fund | Ivy Real Estate Securities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 628 | 19,689 | 3,026 | |||||||||
Class B | 48 | 561 | 135 | |||||||||
Class C | 727 | 5,112 | 235 | |||||||||
Class E | –– | * | 44 | 8 | ||||||||
Class I | –– | * | 6,644 | 20 | ||||||||
Class R | NA | 474 | 4 | |||||||||
Class Y | 539 | 4,761 | 588 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 20 | –– | 65 | |||||||||
Class B | –– | * | –– | –– | * | |||||||
Class C | 1 | –– | 1 | |||||||||
Class E | –– | * | –– | –– | * | |||||||
Class I | –– | * | –– | 1 | ||||||||
Class R | NA | –– | –– | * | ||||||||
Class Y | 10 | –– | 43 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (455 | ) | (27,216 | ) | (1,857 | ) | ||||||
Class B | (26 | ) | (1,244 | ) | (90 | ) | ||||||
Class C | (185 | ) | (8,465 | ) | (110 | ) | ||||||
Class E | (–– | )* | (3 | ) | (2 | ) | ||||||
Class I | (–– | )* | (671 | ) | (8 | ) | ||||||
Class R | NA | (179 | ) | (–– | )* | |||||||
Class Y | (130 | ) | (5,186 | ) | (539 | ) | ||||||
Advisor Class | NA | (1 | ) | NA | ||||||||
Increase (decrease) in outstanding capital shares | 1,177 | (5,680 | ) | (1,520 | ) | |||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 10,366 | $ | 744,906 | $ | 59,407 | ||||||
Class B | 787 | 20,357 | 2,615 | |||||||||
Class C | 11,738 | 180,584 | 4,587 | |||||||||
Class E | –– | * | 1,599 | 163 | ||||||||
Class I | –– | * | 248,250 | 405 | ||||||||
Class R | NA | 17,961 | 70 | |||||||||
Class Y | 8,819 | 180,911 | 11,805 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 334 | –– | 1,278 | |||||||||
Class B | 3 | –– | 8 | |||||||||
Class C | 12 | –– | 14 | |||||||||
Class E | 1 | –– | 1 | |||||||||
Class I | 1 | –– | 10 | |||||||||
Class R | NA | –– | 1 | |||||||||
Class Y | 168 | –– | 838 | |||||||||
Advisor Class | NA | –– | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (7,528 | ) | (953,510 | ) | (36,156 | ) | ||||||
Class B | (428 | ) | (41,410 | ) | (1,702 | ) | ||||||
Class C | (2,960 | ) | (271,495 | ) | (2,144 | ) | ||||||
Class E | (–– | )* | (90 | ) | (30 | ) | ||||||
Class I | (–– | )* | (20,236 | ) | (148 | ) | ||||||
Class R | NA | (6,440 | ) | (1 | ) | |||||||
Class Y | (2,176 | ) | (176,363 | ) | (10,317 | ) | ||||||
Advisor Class | NA | (29 | ) | NA | ||||||||
Increase (decrease) in outstanding capital | $ | 19,137 | $ | (75,005 | ) | $ | 30,704 | |||||
*Not shown due to rounding. |
Ivy Bond Fund | Ivy Global Bond Fund | Ivy Mortgage Securities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 2,787 | 1,804 | 2,217 | |||||||||
Class B | 148 | 533 | 58 | |||||||||
Class C | 547 | 967 | 232 | |||||||||
Class E | 36 | NA | 5 | |||||||||
Class I | 2 | 505 | 2 | |||||||||
Class Y | 20 | 723 | 217 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 162 | –– | 583 | |||||||||
Class B | 4 | –– | 20 | |||||||||
Class C | 8 | –– | 31 | |||||||||
Class E | 2 | NA | 1 | |||||||||
Class I | 1 | –– | 1 | |||||||||
Class Y | –– | * | –– | 20 | ||||||||
Shares redeemed: | ||||||||||||
Class A | (1,071 | ) | (398 | ) | (6,561 | ) | ||||||
Class B | (47 | ) | (1 | ) | (317 | ) | ||||||
Class C | (163 | ) | (14 | ) | (500 | ) | ||||||
Class E | (4 | ) | NA | (3 | ) | |||||||
Class I | (2 | ) | (–– | ) | (1 | ) | ||||||
Class Y | (1 | ) | (103 | ) | (401 | ) | ||||||
Increase (decrease) in outstanding capital shares | 2,429 | 4,016 | (4,396 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 26,606 | $ | 18,009 | $ | 20,829 | ||||||
Class B | 1,405 | 5,324 | 545 | |||||||||
Class C | 5,165 | 9,628 | 2,163 | |||||||||
Class E | 341 | NA | 49 | |||||||||
Class I | 16 | 5,050 | 22 | |||||||||
Class Y | 193 | 7,233 | 2,067 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 1,538 | –– | 5,444 | |||||||||
Class B | 41 | –– | 189 | |||||||||
Class C | 74 | –– | 292 | |||||||||
Class E | 17 | NA | 7 | |||||||||
Class I | 4 | –– | 7 | |||||||||
Class Y | 2 | –– | 188 | |||||||||
Value redeemed: | ||||||||||||
Class A | (10,226 | ) | (3,925 | ) | (61,614 | ) | ||||||
Class B | (448 | ) | (10 | ) | (2,991 | ) | ||||||
Class C | (1,553 | ) | (142 | ) | (4,696 | ) | ||||||
Class E | (35 | ) | NA | (33 | ) | |||||||
Class I | (15 | ) | (–– | ) | (6 | ) | ||||||
Class Y | (8 | ) | (1,023 | ) | (3,788 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 23,117 | $ | 40,144 | $ | (41,326 | ) | |||||
*Not shown due to rounding. |
Transactions in capital stock for the fiscal year ended March 31, 2008 are summarized below.
Ivy Dividend Opportunities Fund | Ivy Small Cap Value Fund | ||||||||
---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | |||||||||
Class A | 4,850 | 3,446 | |||||||
Class B | 221 | 107 | |||||||
Class C | 678 | 128 | |||||||
Class E | 134 | 6 | |||||||
Class I | 6 | 48 | |||||||
Class Y | 719 | 131 | |||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 144 | 474 | |||||||
Class B | 7 | 22 | |||||||
Class C | 16 | 35 | |||||||
Class E | 1 | –– | * | ||||||
Class I | –– | * | 2 | ||||||
Class Y | 4 | 65 | |||||||
Shares redeemed: | |||||||||
Class A | (2,574 | ) | (3,327 | ) | |||||
Class B | (212 | ) | (234 | ) | |||||
Class C | (419 | ) | (315 | ) | |||||
Class E | (11 | ) | (–– | ) | |||||
Class I | (–– | ) | (15 | ) | |||||
Class Y | (120 | ) | (451 | ) | |||||
Increase in outstanding capital shares | 3,444 | 122 | |||||||
Value issued from sale of shares: | |||||||||
Class A | $ | 81,475 | $ | 52,888 | |||||
Class B | 3,680 | 1,584 | |||||||
Class C | 11,355 | 1,921 | |||||||
Class E | 2,304 | 100 | |||||||
Class I | 100 | 778 | |||||||
Class Y | 12,095 | 1,985 | |||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 2,518 | 6,794 | |||||||
Class B | 128 | 306 | |||||||
Class C | 282 | 483 | |||||||
Class E | 21 | 6 | |||||||
Class I | 2 | 31 | |||||||
Class Y | 60 | 938 | |||||||
Value redeemed: | |||||||||
Class A | (43,339 | ) | (50,030 | ) | |||||
Class B | (3,556 | ) | (3,376 | ) | |||||
Class C | (6,973 | ) | (4,582 | ) | |||||
Class E | (196 | ) | (–– | ) | |||||
Class I | (–– | ) | (232 | ) | |||||
Class Y | (1,982 | ) | (7,079 | ) | |||||
Increase in outstanding capital | $ | 57,974 | $ | 2,515 | |||||
*Not shown due to rounding. |
Ivy Value Fund | Ivy Managed European/ Pacific Fund | Ivy Managed International Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 1,215 | 5,764 | 10,440 | |||||||||
Class B | 92 | 159 | 398 | |||||||||
Class C | 93 | 254 | 406 | |||||||||
Class E | 5 | 20 | 20 | |||||||||
Class I | 5 | 20 | 20 | |||||||||
Class Y | 11 | 28 | 43 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 290 | 178 | 215 | |||||||||
Class B | 21 | 5 | 6 | |||||||||
Class C | 18 | 8 | 7 | |||||||||
Class E | –– | * | 1 | 1 | ||||||||
Class I | –– | * | 1 | 1 | ||||||||
Class Y | 1 | 1 | 1 | |||||||||
Shares redeemed: | ||||||||||||
Class A | (1,727 | ) | (478 | ) | (703 | ) | ||||||
Class B | (162 | ) | (24 | ) | (42 | ) | ||||||
Class C | (154 | ) | (12 | ) | (46 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (–– | ) | (–– | ) | (–– | ) | ||||||
Class Y | (2 | ) | (–– | ) | (–– | )* | ||||||
Increase (decrease) in outstanding capital shares | (294 | ) | 5,925 | 10,767 | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 23,306 | $ | 63,478 | $ | 111,227 | ||||||
Class B | 1,750 | 1,743 | 4,237 | |||||||||
Class C | 1,774 | 2,828 | 4,287 | |||||||||
Class E | 100 | 200 | 200 | |||||||||
Class I | 100 | 200 | 200 | |||||||||
Class Y | 185 | 283 | 456 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 5,180 | 1,938 | 2,280 | |||||||||
Class B | 360 | 50 | 65 | |||||||||
Class C | 310 | 89 | 73 | |||||||||
Class E | 7 | 10 | 7 | |||||||||
Class I | 8 | 11 | 7 | |||||||||
Class Y | 22 | 13 | 13 | |||||||||
Value redeemed: | ||||||||||||
Class A | (31,497 | ) | (5,029 | ) | (7,406 | ) | ||||||
Class B | (2,919 | ) | (264 | ) | (456 | ) | ||||||
Class C | (2,797 | ) | (125 | ) | (483 | ) | ||||||
Class E | (–– | ) | (–– | ) | (–– | ) | ||||||
Class I | (–– | ) | (–– | ) | (–– | ) | ||||||
Class Y | (28 | ) | (–– | ) | (4 | ) | ||||||
Increase (decrease) in outstanding capital | $ | (4,139 | ) | $ | 65,425 | $ | 114,703 | |||||
*Not shown due to rounding. |
Ivy Cundill Global Value Fund | Ivy European Opportunities Fund | Ivy International Balanced Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 7,452 | 3,662 | 5,434 | |||||||||
Class B | 275 | 246 | 250 | |||||||||
Class C | 1,219 | 373 | 1,450 | |||||||||
Class E | 31 | 3 | 46 | |||||||||
Class I | 173 | 1,434 | 2,667 | |||||||||
Class Y | 211 | 49 | 200 | |||||||||
Advisor Class | –– | 3 | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 3,403 | 1,143 | 769 | |||||||||
Class B | 258 | 113 | 30 | |||||||||
Class C | 813 | 142 | 102 | |||||||||
Class E | 2 | –– | * | 1 | ||||||||
Class I | 13 | 118 | 97 | |||||||||
Class Y | 59 | 15 | 3 | |||||||||
Advisor Class | 19 | 3 | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (18,983 | ) | (3,156 | ) | (4,313 | ) | ||||||
Class B | (1,309 | ) | (571 | ) | (193 | ) | ||||||
Class C | (8,863 | ) | (471 | ) | (747 | ) | ||||||
Class E | (2 | ) | (–– | ) | (1 | ) | ||||||
Class I | (55 | ) | (29 | ) | (12 | ) | ||||||
Class Y | (583 | ) | (115 | ) | (92 | ) | ||||||
Advisor Class | (34 | ) | (9 | ) | NA | |||||||
Class II | (2 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital shares | (15,903 | ) | 2,953 | 5,691 | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 116,197 | $ | 150,552 | $ | 93,333 | ||||||
Class B | 4,131 | 9,926 | 4,244 | |||||||||
Class C | 18,952 | 14,778 | 25,015 | |||||||||
Class E | 487 | 100 | 783 | |||||||||
Class I | 2,793 | 58,674 | 45,814 | |||||||||
Class Y | 3,209 | 2,024 | 3,389 | |||||||||
Advisor Class | –– | 97 | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 48,928 | 44,135 | 13,166 | |||||||||
Class B | 3,631 | 4,191 | 519 | |||||||||
Class C | 11,392 | 5,317 | 1,744 | |||||||||
Class E | 34 | 11 | 25 | |||||||||
Class I | 188 | 4,571 | 1,654 | |||||||||
Class Y | 852 | 580 | 46 | |||||||||
Advisor Class | 277 | 101 | NA | |||||||||
Class II | –– | NA | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (286,653 | ) | (125,648 | ) | (73,971 | ) | ||||||
Class B | (19,233 | ) | (21,682 | ) | (3,296 | ) | ||||||
Class C | (130,403 | ) | (17,803 | ) | (12,642 | ) | ||||||
Class E | (23 | ) | (–– | ) | (13 | ) | ||||||
Class I | (843 | ) | (1,199 | ) | (203 | ) | ||||||
Class Y | (8,874 | ) | (4,619 | ) | (1,571 | ) | ||||||
Advisor Class | (516 | ) | (352 | ) | NA | |||||||
Class II | (25 | ) | NA | NA | ||||||||
Increase (decrease) in outstanding capital | $ | (235,499 | ) | $ | 123,754 | $ | 98,036 | |||||
*Not shown due to rounding. |
Ivy International Core Equity Fund | Ivy International Growth Fund | Ivy Pacific Opportunities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 5,995 | 789 | 9,852 | |||||||||
Class B | 311 | 42 | 387 | |||||||||
Class C | 1,251 | 133 | 761 | |||||||||
Class E | 65 | 3 | 6 | |||||||||
Class I | 1,270 | 593 | 2,094 | |||||||||
Class Y | 459 | 16 | 260 | |||||||||
Advisor Class | –– | –– | –– | |||||||||
Class II | NA | –– | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 844 | 7 | 2,325 | |||||||||
Class B | 47 | –– | 117 | |||||||||
Class C | 162 | –– | 191 | |||||||||
Class E | 4 | –– | * | 1 | ||||||||
Class I | 77 | 2 | 149 | |||||||||
Class Y | 25 | –– | * | 39 | ||||||||
Advisor Class | –– | –– | 1 | |||||||||
Class II | NA | –– | * | NA | ||||||||
Shares redeemed: | ||||||||||||
Class A | (2,976 | ) | (1,081 | ) | (7,611 | ) | ||||||
Class B | (413 | ) | (96 | ) | (477 | ) | ||||||
Class C | (606 | ) | (299 | ) | (786 | ) | ||||||
Class E | (3 | ) | (–– | ) | (–– | ) | ||||||
Class I | (18 | ) | (24 | ) | (93 | ) | ||||||
Class Y | (106 | ) | (68 | ) | (372 | ) | ||||||
Advisor Class | (–– | )* | (–– | )* | (–– | ) | ||||||
Class II | NA | (9 | ) | NA | ||||||||
Increase in outstanding capital shares | 6,388 | 8 | 6,844 | |||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 111,517 | $ | 29,963 | $ | 201,372 | ||||||
Class B | 5,340 | 1,415 | 7,206 | |||||||||
Class C | 21,399 | 4,596 | 15,041 | |||||||||
Class E | 1,197 | 100 | 100 | |||||||||
Class I | 23,654 | 22,300 | 42,320 | |||||||||
Class Y | 8,284 | 600 | 5,567 | |||||||||
Advisor Class | –– | –– | –– | |||||||||
Class II | NA | –– | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 15,658 | 265 | 49,834 | |||||||||
Class B | 804 | –– | 2,296 | |||||||||
Class C | 2,762 | –– | 3,788 | |||||||||
Class E | 72 | –– | * | 13 | ||||||||
Class I | 1,430 | 59 | 3,223 | |||||||||
Class Y | 458 | 5 | 834 | |||||||||
Advisor Class | –– | –– | 12 | |||||||||
Class II | NA | 1 | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (54,756 | ) | (40,504 | ) | (151,434 | ) | ||||||
Class B | (7,063 | ) | (3,310 | ) | (8,705 | ) | ||||||
Class C | (10,068 | ) | (10,278 | ) | (14,352 | ) | ||||||
Class E | (60 | ) | (–– | ) | (–– | ) | ||||||
Class I | (340 | ) | (901 | ) | (1,857 | ) | ||||||
Class Y | (1,893 | ) | (2,424 | ) | (6,956 | ) | ||||||
Advisor Class | (1 | ) | (1 | ) | (–– | ) | ||||||
Class II | NA | (327 | ) | NA | ||||||||
Increase in outstanding capital | $ | 118,394 | $ | 1,559 | $ | 148,302 | ||||||
*Not shown due to rounding. |
Ivy Balanced Fund | Ivy Global Natural Resources Fund | Ivy Real Estate Securities Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 736 | 55,612 | 3,497 | |||||||||
Class B | 52 | 1,955 | 102 | |||||||||
Class C | 144 | 16,928 | 141 | |||||||||
Class E | 6 | 79 | 22 | |||||||||
Class I | 6 | 1,881 | 94 | |||||||||
Class R | NA | 636 | 3 | |||||||||
Class Y | 178 | 14,190 | 214 | |||||||||
Advisor Class | NA | –– | * | NA | ||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 142 | 10,279 | 1,329 | |||||||||
Class B | 5 | 688 | 62 | |||||||||
Class C | 5 | 3,486 | 66 | |||||||||
Class E | –– | * | 5 | 2 | ||||||||
Class I | –– | * | 114 | 7 | ||||||||
Class R | NA | 32 | 1 | |||||||||
Class Y | 65 | 1,708 | 675 | |||||||||
Advisor Class | NA | 1 | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (766 | ) | (30,526 | ) | (6,872 | ) | ||||||
Class B | (33 | ) | (1,695 | ) | (344 | ) | ||||||
Class C | (94 | ) | (7,152 | ) | (516 | ) | ||||||
Class E | (–– | ) | (2 | ) | (2 | ) | ||||||
Class I | (–– | ) | (49 | ) | (39 | ) | ||||||
Class R | NA | (113 | ) | (1 | ) | |||||||
Class Y | (404 | ) | (3,472 | ) | (4,826 | ) | ||||||
Advisor Class | NA | (1 | ) | NA | ||||||||
Increase (decrease) in outstanding capital shares | 42 | 64,584 | (6,385 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 12,611 | $ | 2,067,009 | $ | 79,829 | ||||||
Class B | 877 | 68,577 | 2,333 | |||||||||
Class C | 2,471 | 581,343 | 3,288 | |||||||||
Class E | 100 | 2,930 | 532 | |||||||||
Class I | 100 | 68,389 | 2,408 | |||||||||
Class R | NA | 23,676 | 74 | |||||||||
Class Y | 3,067 | 528,496 | 4,733 | |||||||||
Advisor Class | NA | 3 | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 2,489 | 391,527 | 26,473 | |||||||||
Class B | 88 | 24,609 | 1,224 | |||||||||
Class C | 94 | 121,921 | 1,305 | |||||||||
Class E | 4 | 186 | 35 | |||||||||
Class I | 5 | 4,374 | 135 | |||||||||
Class R | NA | 1,236 | 15 | |||||||||
Class Y | 1,146 | 65,199 | 13,488 | |||||||||
Advisor Class | NA | 37 | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (13,091 | ) | (1,124,546 | ) | (152,493 | ) | ||||||
Class B | (573 | ) | (58,685 | ) | (7,458 | ) | ||||||
Class C | (1,605 | ) | (241,166 | ) | (11,542 | ) | ||||||
Class E | (–– | ) | (71 | ) | (33 | ) | ||||||
Class I | (–– | ) | (1,821 | ) | (872 | ) | ||||||
Class R | NA | (4,175 | ) | (22 | ) | |||||||
Class Y | (6,956 | ) | (128,331 | ) | (112,045 | ) | ||||||
Advisor Class | NA | (38 | ) | NA | ||||||||
Increase (decrease) in outstanding capital | $ | 827 | $ | 2,390,679 | $ | (148,593 | ) | |||||
*Not shown due to rounding. |
Ivy Bond Fund | Ivy Mortgage Securities Fund | ||||||||
---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | |||||||||
Class A | 4,751 | 9,682 | |||||||
Class B | 143 | 434 | |||||||
Class C | 527 | 680 | |||||||
Class E | 83 | 32 | |||||||
Class I | 19 | 34 | |||||||
Class Y | 2 | 493 | |||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 217 | 1,210 | |||||||
Class B | 7 | 42 | |||||||
Class C | 14 | 66 | |||||||
Class E | 2 | 1 | |||||||
Class I | 1 | 1 | |||||||
Class Y | –– | * | 44 | ||||||
Shares redeemed: | |||||||||
Class A | (1,485 | ) | (10,536 | ) | |||||
Class B | (73 | ) | (400 | ) | |||||
Class C | (398 | ) | (835 | ) | |||||
Class E | (3 | ) | (2 | ) | |||||
Class I | (1 | ) | (9 | ) | |||||
Class Y | (4 | ) | (845 | ) | |||||
Increase in outstanding capital shares | 3,802 | 92 | |||||||
Value issued from sale of shares: | |||||||||
Class A | $ | 48,475 | $ | 100,326 | |||||
Class B | 1,467 | 4,501 | |||||||
Class C | 5,385 | 7,030 | |||||||
Class E | 851 | 334 | |||||||
Class I | 196 | 360 | |||||||
Class Y | 25 | 5,119 | |||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | |||||||||
Class A | 2,204 | 12,454 | |||||||
Class B | 69 | 431 | |||||||
Class C | 139 | 684 | |||||||
Class E | 18 | 9 | |||||||
Class I | 8 | 13 | |||||||
Class Y | –– | * | 459 | ||||||
Value redeemed: | |||||||||
Class A | (15,108 | ) | (108,564 | ) | |||||
Class B | (747 | ) | (4,126 | ) | |||||
Class C | (4,059 | ) | (8,610 | ) | |||||
Class E | (26 | ) | (23 | ) | |||||
Class I | (14 | ) | (96 | ) | |||||
Class Y | (42 | ) | (8,695 | ) | |||||
Increase in outstanding capital | $ | 38,841 | $ | 1,606 | |||||
*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. Investments in options, whether purchased or written, involve certain risks. Writing put options and purchasing call options may increase the Fund's exposure to the underlying security (or basket of securities). Purchasing put options and writing call options may decrease the Fund's exposure to the underlying security (or basket of securities). With written options, there may be times when the Fund will be required to purchase or sell securities to meet its obligation under the option contract where the required action is not beneficial to the Fund, due to unfavorable movement of the market price of the underlying security (or basket of securities). Additionally, to the extent the Fund enters into over-the-counter (OTC) option transactions with counterparties, the Fund will be exposed to the risk that counterparties to these OTC transactions, for whatever reason, will be unable to meet their obligations under the terms of the tra nsaction.
For Ivy Value Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2008 | –– | * | $ | 3 | |||||
Options written | 2 | 283 | |||||||
Options terminated in closing purchase transactions | (1 | ) | (180 | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (1 | ) | (43 | ) | |||||
Outstanding at September 30, 2008 | –– | * | $ | 63 | |||||
For Ivy Value Fund, transactions in written put options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2008 | –– | * | $ | 20 | |||||
Options written | 2 | 155 | |||||||
Options terminated in closing purchase transactions | (–– | )* | (14 | ) | |||||
Options exercised | (–– | )* | (11 | ) | |||||
Options expired | (1 | ) | (55 | ) | |||||
Outstanding at September 30, 2008 | 1 | $ | 95 | ||||||
*Not shown due to rounding. |
For Ivy Pacific Opportunities Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2008 | –– | $ | –– | ||||||
Options written | 93 | 2,280 | |||||||
Options terminated in closing purchase transactions | (93 | ) | (2,280 | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (–– | ) | (–– | ) | |||||
Outstanding at September 30, 2008 | –– | $ | –– | ||||||
For Ivy Pacific Opportunities Fund, transactions in written put options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2008 | –– | $ | –– | ||||||
Options written | 93 | 3,989 | |||||||
Options terminated in closing purchase transactions | (93 | ) | (3,989 | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (–– | ) | (— | ) | |||||
Outstanding at September 30, 2008 | –– | $ | –– | ||||||
|
For Ivy Global Natural Resources Fund, transactions in written put options were as follows:
Number of Contracts | Premiums Received | ||||||||
---|---|---|---|---|---|---|---|---|---|
Outstanding at March 31, 2008 | –– | $ | –– | ||||||
Options written | 30 | 8,039 | |||||||
Options terminated in closing purchase transactions | (–– | ) | (–– | ) | |||||
Options exercised | (–– | ) | (–– | ) | |||||
Options expired | (20 | ) | (6,207 | ) | |||||
Outstanding at September 30, 2008 | 10 | $ | 1,832 | ||||||
|
No price is paid upon entering into a futures contract. Instead, upon entering into a futures contract, a Fund is required to deposit, in a segregated account, an amount of cash of liquid securities 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 Fund 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 Fund 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. A Fund uses futures to attempt to reduce the overall risk of its investments or to enhance returns. The risks of futures contracts include the possibility there may be an illiquid secondary market, that a change in the value of the contract may not correlate with the changes in the value of the underlying securities or ind ex, and/or the possible inability of the counterparty to fulfill its obligations under the agreement.
NOTE 9 - CommitmentIn connection with Ivy Pacific Opportunities Fund's investment in Vietnam Azalea Fund Limited (VAF), the Fund is contractually committed to provide additional capital of up to $2,100 if and when VAF requests such contributions or draw downs. The total commitment is limited to $5,000. At September 30, 2008, Ivy Pacific Opportunities Fund had made a total contribution of $2,900. No public market currently exists for the shares of VAF nor are the shares listed on any securities exchange. VAF intends to become listed within one year after the final commitment has been drawn down.
NOTE 10 - 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-month period ended September 30, 2008 follows:
4-1-08 Share Balance | Purchase Cost | Sales Cost | Realized Gain/ (Loss) | Distributions Received(1) | 9-30-08 Share Balance | 9-30-08 Market Value | |
---|---|---|---|---|---|---|---|
Ivy Managed European/Pacific Fund | |||||||
Ivy European Opportunities Fund, Class I | 998 | $8,021 | $721 | $(266) | $— | 1,215 | $31,376 |
Ivy Pacific Opportunities Fund, Class I | 1,313 | 5,348 | 557 | (253) | –– | 1,595 | 20,355 |
Ivy Managed International Opportunities Fund | |||||||
Ivy European Opportunities Fund, Class I | 446 | 5,067 | 266 | (100) | –– | 588 | 15,193 |
Ivy International Balanced Fund, Class I | 2,698 | 14,646 | 573 | (132) | 1,134 | 3,587 | 48,324 |
Ivy International Core Equity Fund, Class I | 1,271 | 6,756 | 323 | (102) | –– | 1,652 | 22,134 |
Ivy International Growth Fund, Class I | 444 | 5,067 | 233 | (67) | –– | 579 | 16,378 |
Ivy Pacific Opportunities Fund, Class I | 591 | 3,378 | 209 | (99) | –– | 777 | 9,909 |
(1)Distributions received includes distributions from net investment income and/or from capital gains from the underlying funds. |
A summary of the transactions for the affiliated company transactions during the six-month period ended September 30, 2008 follows:
4-1-08 Share Balance | Purchase Cost | Sales Cost | Realized Gain/ (Loss) | Distributions Received(1) | 9-30-08 Share Balance | 9-30-08 Market Value | |
---|---|---|---|---|---|---|---|
Ivy Pacific Opportunities Fund | |||||||
Vietnam Azalea Fund Limited(1) | 500 | $750 | $— | $— | $— | 500 | $2,305 |
Ivy Global Natural Resources Fund | |||||||
Atacama Minerals Corp.(1) | –– | 5,541 | –– | –– | –– | 5,880 | 2,818 |
Domtar Corporation(1) | 25,000 | 46,470 | 92,170 | (26,200) | –– | 22,040 | 101,383 |
Massey Energy Company | –– | 202,976 | –– | –– | –– | 5,000 | 178,350 |
Verso Paper Holdings LLC | –– | 40,993 | 960 | 40,033 | 120 | 3,920 | 10,349 |
Yingli Green Energy Holding Company Limited, ADR(1) | 7,500 | 29,486 | 5,431 | 24,055 | –– | 8,800 | 96,976 |
(1)No dividends were paid during the preceding 12 months. |
On June 2, 2008, Ivy Dividend Income Fund changed its name to Ivy Dividend Opportunities Fund and changed its investment objective to the provision of total return. In addition, Ivy Global Strategic Income Fund changed its name to Ivy Global Bond Fund on the same date.
NOTE 12 - Senior LoansIvy Global Bond Fund invests in senior secured corporate loans either as an original lender or as a purchaser of a loan assignment or a participation interest in a loan. Senior Loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Senior Loans are generally readily marketable, but some loans may be illiquid or be subject to some restrictions on resale. These loans are valued using a composite price from more than one broker or dealer as obtained from a pricing service. As of September 30, 2008, Ivy Global Bond Fund owned Senior Loans with an aggregate market value of $245 representing 0.63% of the Fund's net assets.
Renewal of Investment Management Agreements for the Ivy Funds
At a meeting of the Board of Trustees the Trust held on August 26 and 27, 2008, the Trustees, including all of the Trustees who are not "interested persons" as defined in Section 2(a)(19) of the Investment Company Act of 1940 (the "Independent Trustees"), unanimously approved the continuance of the existing management agreements between IICO and the Trust. The existing management agreements considered were (i) the Master Business Management and Investment Advisory Agreement and all current supplements thereto 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 Opportunities Fund, Ivy Global Bond Fund, Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund); (iii) the Investment Management Agreemen t between the Trust and IICO (with respect to the Ivy Balanced Fund, Ivy Bond Fund, Ivy Global Natural Resources Fund, Ivy International Balanced Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund, Ivy Small Cap Value Fund and the Ivy Value 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)
- Mackenzie Financial Corporation (Ivy Cundill Global Value Fund and Ivy Global Natural Resources Fund).
(each such subadviser referred to herein as a "Subadviser").
The 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, as well as an expla nation of the methodology by which the profitability analysis was calculated. The Board also 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 previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at the August 26th and 27th Board meeting, 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 nature, extent and quality of services provided to all the Funds by IICO and each Subadviser, taking into account the vast amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request list submitted on their behalf by counsel and which they had discussed during a teleconference earlier in the month. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the 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 each Fund's investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of o ther service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations). The Board also noted the accolades that the Funds had received during the year from the financial media, including Barrons. 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. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. The Board concluded that the Funds' asset size and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current 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 Bond Fund, Ivy Cundill Global Value Fund, Ivy European Opportunities Fund and the Ivy Real Estate Securities Fund. In addition, the Board considered that IICO had recently commenced direct portfolio management responsibilities for the Ivy Small Cap Value Fund, replacing the Fund's Subadviser.
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 (and with respect to Class E and Class Y shares of certain Funds, the expense limitation agreements proposed to be entered into) by IICO in light of the services provided by IICO and each Subadviser. 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 asset s in each Fund, each Fund's average account size and how those factors affect the Funds' expense ratios. After completing this examination, the Independent Directors concluded that each Fund's expenses are appropriate at the current time.
Independent Fee Consultant ReviewThe Disinterested 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 2008, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds and the Disinterested 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 Disinterested 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 Wad dell, 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 Disinterested Trustees/Directors.
Summary FindingsThe report stated that IICO delivered strong levels of performance and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended March 31, 2008, when compared to their respective peer groups established by Lipper, Inc. ("Lipper"), approximately 36% of the Ivy Funds were in the top quartile of performance and 60% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appeared 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.
The report stated that for the 12 months ended March 31, 2008, the total expenses of the Ivy Funds on average were 1% above the mean total expenses of their respective Lipper Expense Group peers and 9% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 0.1% above the mean management fees for their Lipper Expense Groups and 2% above the means for their Lipper Expense Universes. The independent fee consultant noted that the Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that work against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that 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 report stated 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. The report noted that these institutional accounts have different service and infrastructure needs and in addition that, 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. The report noted that 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.
The report stated that an economy of pricing analysis was undertaken by the independent fee consultant that showed 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, 2008 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
Domestic Equity Funds
Capital Appreciation Fund
Core Equity Fund
Dividend Opportunities Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund
Value Fund
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
Specialty Funds
Asset Strategy Fund
Balanced Fund
Energy Fund
Global Natural Resources Fund
Real Estate Securities Fund
Science and Technology Fund
Fixed Income Funds
Bond Fund
Global Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Money Market Fund
Municipal Bond 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 (9-08)
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
By | /s/Mara D. Herrington |
Mara D. Herrington, Vice President and Secretary | |
Date: December 5, 2008 | |
By | /s/Henry J. Herrmann |
Henry J. Herrmann, President and Principal Executive Officer | |
Date: December 5, 2008 | |
By | /s/Joseph W. Kauten |
Joseph W. Kauten, Vice President and Principal Financial Officer | |
Date: December 5, 2008 | |