Ivy Funds N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01028

Ivy Funds

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Kristen A. Richards

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

Registrant's telephone number, including area code: 913-236-2000

Date of fiscal year end: March 31

Date of reporting period: September 30, 2009

ITEM 1. REPORTS TO STOCKHOLDERS.

Semiannual Report

September 30, 2009

Domestic Equity Funds

Ivy Dividend Opportunities Fund

Ivy Micro Cap Growth 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

CONTENTS

Ivy Funds

President's Letter	3
Portfolio Highlights, Illustration of Fund Expenses and Schedule of Investments:
Ivy Dividend Opportunities Fund	4
Ivy Micro Cap Growth Fund	9
Ivy Small Cap Value Fund	13
Ivy Value Fund	17
Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund	21
Ivy Cundill Global Value Fund	24
Ivy European Opportunities Fund	28
Ivy International Balanced Fund	32
Ivy International Core Equity Fund	37
Ivy International Growth Fund	41
Ivy Pacific Opportunities Fund	45
Ivy Balanced Fund	50
Ivy Global Natural Resources Fund	56
Ivy Real Estate Securities Fund	62
Ivy Bond Fund	66
Ivy Global Bond Fund	75
Ivy Mortgage Securities Fund	83
Statement of Assets and Liabilities	90
Statement of Operations	93
Statement of Changes in Net Assets	96
Financial Highlights	102
Notes to Financial Statements	138
Renewal of Investment Management Agreement	170
Proxy Voting Information	174
Quarterly Portfolio Schedule Information	175
IRA Disclosure	176

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, including current Lipper ranking information.

PRESIDENT'S LETTER

Ivy Funds

SEPTEMBER 30, 2009 (UNAUDITED)

Henry J. Herrmann, CFA

Dear Shareholder,

In the six months since our last report to you, Americans have witnessed a dramatic reversal in the equity and fixed-income markets. U.S. equities performed strongly, with most indexes posting double-digit returns for the six-month period. Market sectors that benefited markedly from the rally included financials, technology, consumer discretionary and global industrial, as investors flocked to sectors poised to benefit from an economic recovery. In this environment, lower-quality stocks were the market darlings, as they had the most to gain from an improved economic outlook. This trend of riskier securities prevailing over safer issues generally held true across all asset classes.

The S&P 500 Index posted a healthy 34.03 percent gain for the six months ended September 30, 2009. Fixed-income markets, as measured by the Citigroup Broad Investment Grade Index, did well, increasing 4.80 percent for the six months ended September 30, 2009. Numerous government-sponsored bailouts and liquidity programs have lent significant and necessary support to our economy, inflation remains under control and the housing market appears to be stabilizing. Economic indicators such as durable goods orders, capacity utilization and industrial production appear to have found a floor and their prospects are improving. Importantly, consumer and investor confidence have begun to emerge - an important catalyst necessary for a full and robust recovery to occur.

Although many challenges remain, including a still wobbly financial system, painfully high unemployment and battles to be waged in Washington to create fair and effective regulatory reform, we are optimistic that better days are ahead.

As you review this Ivy Funds Semiannual Report, we'd like to underscore the importance of maintaining a long-term perspective. While some market uncertainty, intraday swings, halting economic progress and insecurity about the stability of the American financial system may linger, history suggests to us that successful investing is contingent upon developing a personal financial plan and adhering to it over time. Taking rash action in response to short-term events, no matter how unnerving they may be, is often a recipe for poor investing results.

Economic Snapshot

	9-30-09			3-31-09
S&P 500 Index		1057.08			797.87
MSCI EAFE Index		1552.84			1056.23
Citigroup Broad Investment Grade Index       (annualized yield to maturity)		3.22	%		3.35	%
U.S. unemployment rate		9.80	%		8.50	%
30-year fixed mortgage rate		4.94	%		4.85	%
Oil price per barrel		$70.82			$49.66

Sources: Bloomberg, U.S. Department of Labor

All government statistics shown are subject to periodic revision.

The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Citigroup Broad Investment Grade Index is an unmanaged index comprised of securities that represent the bond market. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. 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.

As shown in the Economic Snapshot table above, the U.S. economy has started to stabilize over the course of the previous six months, although unemployment continues to be a concern.

If market uncertainty is making you nervous or you're feeling unsure about your investments, don't go it alone. Contact your financial advisor to review your portfolio and make sure it's appropriately allocated given your goals, investing time frame and tolerance for risk.

As always, we thank you for your continued trust in the Ivy Funds, and we encourage you to share in our optimism for the future.

Respectfully,

Henry J. Herrmann, CFA
President

The opinions expressed in this letter are those of the President of the 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.

PORTFOLIO HIGHLIGHTS

Ivy Dividend Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	95.12%
Energy	19.27%
Consumer Staples	16.45%
Financials	12.83%
Information Technology	12.10%
Industrials	11.65%
Materials	9.03%
Consumer Discretionary	6.48%
Health Care	4.63%
Telecommunication Services	1.67%
Utilities	1.01%
Cash and Cash Equivalents	4.88%

Lipper Rankings

Category: Lipper Equity Income Funds	Rank	Percentile
1 Year	252/303	83
3 Year	82/235	35
5 Year	34/185	19

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Schlumberger Limited	Energy
Microchip Technology Incorporated	Information Technology
Exxon Mobil Corporation	Energy
Philip Morris International Inc.	Consumer Staples
Colgate-Palmolive Company	Consumer Staples
Lorillard, Inc.	Consumer Staples
JPMorgan Chase & Co.	Financials
Deere & Company	Industrials
Union Pacific Corporation	Industrials
Halliburton Company	Energy

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

DISCLOSURE OF EXPENSES

Ivy Funds

(UNAUDITED)

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 Illustration of Fund Expenses for each Fund is 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. Each 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, 2009.

Actual Expenses

The first line for each share class in each table 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 Purposes

The second line for each share class in each table 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 help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

ILLUSTRATION OF FUND EXPENSES

Ivy Dividend Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,272.50	1.45%	$	8.29
Class B	$1,000	$1,265.40	2.53%	$	14.39
Class C	$1,000	$1,269.00	2.13%	$	12.14
Class E	$1,000	$1,272.60	1.37%	$	7.84
Class I	$1,000	$1,274.70	0.97%	$	5.57
Class Y	$1,000	$1,274.40	1.25%	$	7.16
Based on 5% Return(2)
Class A	$1,000	$1,017.78	1.45%	$	7.36
Class B	$1,000	$1,012.37	2.53%	$	12.78
Class C	$1,000	$1,014.39	2.13%	$	10.78
Class E	$1,000	$1,018.22	1.37%	$	6.96
Class I	$1,000	$1,020.19	0.97%	$	4.95
Class Y	$1,000	$1,018.80	1.25%	$	6.36

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Dividend Opportunities Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Asset Management & Custody Banks - 1.21%
T. Rowe Price Group, Inc.		64	$	2,945
Brewers - 1.82%
Molson Coors Brewing Company, Class B		91		4,449
Communications Equipment - 3.37%
Consolidated Communications Holdings, Inc.		179		2,872
QUALCOMM Incorporated		119		5,364
				8,236
Computer Hardware - 2.06%
Hewlett-Packard Company		107		5,030
Construction & Engineering - 2.23%
Fluor Corporation		107		5,436
Construction & Farm Machinery & Heavy Trucks - 2.33%
Deere & Company		132		5,685
Consumer Finance - 1.93%
Capital One Financial Corporation		132		4,702
Data Processing & Outsourced Services - 1.18%
Visa Inc., Class A		42		2,875
Department Stores - 2.18%
Macy's Inc.		290		5,311
Distillers & Vintners - 1.64%
Diageo plc, ADR		65		4,000
Diversified Banks - 0.97%
U.S. Bancorp		108		2,367
Diversified Chemicals - 1.52%
PPG Industries, Inc.		64		3,705
Diversified Metals & Mining - 1.54%
Rio Tinto plc, ADR		22		3,763
Electrical Components & Equipment - 1.81%
Emerson Electric Co.		110		4,419
Fertilizers & Agricultural Chemicals - 1.86%
Monsanto Company		59		4,551
Health Care Equipment - 2.58%
Baxter International Inc.		17		972
Medtronic, Inc.		101		3,699
Stryker Corporation		36		1,638
				6,309
Home Improvement Retail - 0.89%
Lowe's Companies, Inc.		103		2,165
Homebuilding - 0.91%
D.R. Horton, Inc.		195		2,227
Hotels, Resorts & Cruise Lines - 0.90%
Starwood Hotels & Resorts Worldwide, Inc.		67		2,208
Household Products - 4.11%
Colgate-Palmolive Company		100		7,613
Procter & Gamble Company (The)		42		2,418
				10,031
Industrial Gases - 2.97%
Air Products and Chemicals, Inc.		61		4,768
Praxair, Inc.		31		2,492
				7,260
Industrial Machinery - 1.81%
Illinois Tool Works Inc.		104		4,423
Integrated Oil & Gas - 4.80%
BP p.l.c., ADR		69		3,692
Exxon Mobil Corporation		117		8,030
				11,722
Integrated Telecommunication Services - 1.67%
AT&T Inc.		151		4,084
Multi-Utilities - 1.01%
Dominion Resources, Inc.		72		2,477
Oil & Gas Equipment & Services - 10.22%
Halliburton Company		202		5,481
National Oilwell Varco, Inc. (A)		90		3,867
Schlumberger Limited		149		8,850
Smith International, Inc.		80		2,296
Weatherford International Ltd. (A)		214		4,438
				24,932
Oil & Gas Exploration & Production - 3.31%
Apache Corporation		52		4,757
XTO Energy Inc.		80		3,316
				8,073
Oil & Gas Storage & Transportation - 0.94%
Enbridge Inc.		59		2,295
Other Diversified Financial Services - 4.38%
Bank of America Corporation		272		4,604
JPMorgan Chase & Co.		139		6,109
				10,713
Pharmaceuticals - 2.05%
Abbott Laboratories		101		4,996
Property & Casualty Insurance - 2.86%
ACE Limited		72		3,839
Travelers Companies, Inc. (The)		64		3,153
				6,992
Railroads - 3.47%
Burlington Northern Santa Fe Corporation		37		2,958
Union Pacific Corporation		95		5,513
				8,471
Restaurants - 1.60%
McDonald's Corporation		68		3,898
Semiconductors - 3.63%
Microchip Technology Incorporated		334		8,849
Soft Drinks - 1.83%
Coca-Cola Company (The)		83		4,479
Specialized Finance - 1.48%
CME Group Inc.		12		3,606
Steel - 1.14%
Nucor Corporation		59		2,771
Systems Software - 1.86%
Microsoft Corporation		175		4,541
Tobacco - 7.05%
Altria Group, Inc.		115		2,055
Lorillard, Inc.		101		7,467
Philip Morris International Inc.		158		7,686
				17,208
TOTAL COMMON STOCKS - 95.12%			$	232,204
(Cost: $213,652)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 5.16%
Clorox Co.,
0.220%, 10-13-09		$	1,000		1,000
Coca-Cola Company (The),
0.140%, 11-9-09			4,000		3,999
Hewlett-Packard Company,
0.140%, 10-7-09			5,000		5,000
Sara Lee Corporation,
0.100%, 10-1-09			2,601		2,601
					12,600
Master Note - 1.29%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (B)			3,145		3,145
TOTAL SHORT-TERM SECURITIES - 6.45%				$	15,745
(Cost: $15,745)
TOTAL INVESTMENT SECURITIES - 101.57%				$	247,949
(Cost: $229,397)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.57%)					(3,843	)
NET ASSETS - 100.00%				$	244,106

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	231,651
Gross unrealized appreciation		22,143
Gross unrealized depreciation		(5,845	)
Net unrealized appreciation	$	16,298

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Micro Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	94.73%
Information Technology	30.63%
Health Care	29.83%
Consumer Discretionary	16.21%
Industrials	7.62%
Energy	5.91%
Financials	1.59%
Consumer Staples	1.09%
Materials	1.04%
Utilities	0.81%
Cash and Cash Equivalents	5.27%

Top 10 Equity Holdings

Company	Sector
CommVault Systems, Inc.	Information Technology
Grand Canyon Education, Inc.	Consumer Discretionary
Omniture, Inc.	Information Technology
Westport Innovations Inc.	Consumer Discretionary
True Religion Apparel, Inc.	Consumer Discretionary
Phase Forward Incorporated	Health Care
NetLogic Microsystems, Inc.	Information Technology
NetScout Systems, Inc.	Information Technology
Questcor Pharmaceuticals, Inc.	Health Care
Health Grades, Inc.	Health Care

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Micro Cap Growth Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,479.00	2.69%	$16.73
Class B	$1,000	$1,470.30	3.98%	$24.70
Class C	$1,000	$1,473.40	3.63%	$22.51
Class I	$1,000	$1,482.10	2.38%	$14.77
Class Y	$1,000	$1,480.00	2.64%	$16.37
Based on 5% Return(2)
Class A	$1,000	$1,011.58	2.69%	$13.58
Class B	$1,000	$1,005.10	3.98%	$20.05
Class C	$1,000	$1,006.86	3.63%	$18.26
Class I	$1,000	$1,013.16	2.38%	$11.98
Class Y	$1,000	$1,011.82	2.64%	$13.28

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Micro Cap Growth Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising - 1.37%
MDC Partners Inc., Class A (A)		38	$	280
Apparel Retail - 2.37%
Citi Trends Inc. (A)		11		302
New York & Company, Inc. (A)		36		182
				484
Apparel, Accessories & Luxury Goods - 2.92%
True Religion Apparel, Inc. (A)		15		388
Volcom, Inc. (A)		13		208
				596
Application Software - 6.10%
Blackbaud, Inc.		8		179
NetScout Systems, Inc. (A)		25		339
OPNET Technologies, Inc.		8		87
SolarWinds, Inc. (A)		6		132
Ultimate Software Group, Inc. (The) (A)		10		293
VanceInfo Technologies Inc. (A)		11		214
				1,244
Auto Parts & Equipment - 1.92%
Westport Innovations Inc. (A)		31		392
Biotechnology - 5.66%
Allos Therapeutics, Inc. (A)		43		308
Dyax Corp. (A)		35		125
Idenix Pharmaceuticals, Inc. (A)		31		95
InterMune, Inc. (A)		20		315
Pharmasset, Inc. (A)		15		311
				1,154
Broadcasting - 0.66%
Global Traffic Network, Inc. (A)		29		135
Communications Equipment - 3.20%
Aruba Networks, Inc. (A)		24		211
Blue Coat Systems, Inc. (A)		11		242
Neutral Tandem, Inc. (A)		9		200
				653
Computer Hardware - 0.73%
3PAR Inc. (A)		14		149
Computer Storage & Peripherals - 3.33%
Compellent Technologies, Inc. (A)		10		182
Isilon Systems, Inc. (A)		45		277
Netezza Corporation (A)		20		219
				678
Construction & Engineering - 1.96%
MYR Group Inc. (A)		8		160
Orion Marine Group, Inc. (A)		12		239
				399
Construction & Farm Machinery & Heavy Trucks - 0.59%
Titan Machinery Inc. (A)		10		120
Distributors - 0.99%
DXP Enterprises, Inc. (A)		18		202
Education Services - 2.48%
Grand Canyon Education, Inc. (A)		28		505
Electrical Components & Equipment - 1.88%
Harbin Electric, Inc. (A)		12		203
Powell Industries, Inc. (A)		1		38
Ultralife Corporation (A)		24		143
				384
Electronic Manufacturing Services - 0.79%
Maxwell Technologies, Inc. (A)		9		162
Gas Utilities - 0.81%
China Natural Gas, Inc. (A)		14		166
Health Care Equipment - 8.45%
ABIOMED, Inc. (A)		21		207
Cardiovascular Systems Inc. (A)		4		32
Greatbatch, Inc. (A)		6		124
MAKO Surgical Corp. (A)		23		197
Micrus Endovascular Corporation (A)		13		164
NuVasive, Inc. (A)		6		242
Quidel Corporation (A)		14		226
Somanetics Corporation (A)		14		227
Spectranetics Corporation (The) (A)		48		304
				1,723
Health Care Services - 4.34%
American CareSource Holdings, Inc. (A)		16		70
American Dental Partners, Inc. (A)		11		160
Genoptix, Inc. (A)		9		327
Health Grades, Inc. (A)		66		327
				884
Health Care Supplies - 0.77%
Rochester Medical Corporation (A)		13		158
Health Care Technology - 1.91%
Phase Forward Incorporated (A)		28		389
Industrial Machinery - 0.66%
SmartHeat, Inc. (A)		11		135
Internet Software & Services - 4.38%
comScore, Inc. (A)		11		198
Constant Contact, Inc. (A)		12		227
Omniture, Inc. (A)		22		468
				893
Investment Banking & Brokerage - 0.67%
RiskMetrics Group, Inc. (A)		9		136
Life Sciences Tools & Services - 1.78%
Bruker Corporation (A)		17		177
eResearch Technology, Inc. (A)		26		185
				362
Managed Health Care - 0.78%
Molina Healthcare, Inc. (A)		8		159
Movies & Entertainment - 1.45%
Rentrak Corporation (A)		17		295
Oil & Gas Equipment & Services - 4.65%
ENGlobal Corporation (A)		35		145
NATCO Group Inc., Class A (A)		6		257
Natural Gas Services Group, Inc. (A)		13		231
T-3 Energy Services, Inc. (A)		16		315
				948
Oil & Gas Exploration & Production - 1.26%
Brigham Exploration Company (A)		28		257
Personal Products - 1.09%
China-Biotics, Inc. (A)		14		222
Pharmaceuticals - 6.14%
Auxilium Pharmaceuticals, Inc. (A)		8		267
Biodel Inc. (A)		17		90
BioMimetic Therapeutics, Inc. (A)		10		116
Obagi Medical Products, Inc. (A)		24		277
Questcor Pharmaceuticals, Inc. (A)		60		329
SuperGen, Inc. (A)		65		173
				1,252
Restaurants - 2.05%
BJ's Restaurants, Inc. (A)		10		147
McCormick & Schmick's Seafood Restaurants, Inc. (A)		13		98
Red Robin Gourmet Burgers, Inc. (A)		8		172
				417
Semiconductors - 7.68%
Cavium Networks, Inc. (A)		10		215
Diodes Incorporated (A)		13		241
Mellanox Technologies, Ltd. (A)		11		180
Microtune, Inc. (A)		56		102
Monolithic Power Systems, Inc. (A)		11		246
NetLogic Microsystems, Inc. (A)		8		369
Pericom Semiconductor Corporation (A)		22		212
				1,565
Specialized Finance - 0.92%
Global Consumer Acquisition Corp. (A)		19		188
Specialty Chemicals - 1.04%
Chemspec International Limited, ADR (A)		25		177
Flotek Industries, Inc. (A)		17		35
				212
Systems Software - 4.42%
CommVault Systems, Inc. (A)		26		530
DemandTec, Inc. (A)		21		186
TeleCommunication Systems, Inc. (A)		22		186
				902
Trucking - 2.53%
Celadon Group, Inc. (A)		19		214
Marten Transport, Ltd. (A)		9		159
Vitran Corporation Inc., Class A (A)		16		142
				515
TOTAL COMMON STOCKS - 94.73%			$	19,315
(Cost: $16,025)

SHORT-TERM SECURITIES - 3.81%	Principal
Master Note
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (B)		$	776	$	776
(Cost: $776)
TOTAL INVESTMENT SECURITIES - 98.54%				$	20,091
(Cost: $16,801)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.46%					298
NET ASSETS - 100.00%				$	20,389

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

(B)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	16,805
Gross unrealized appreciation		3,553
Gross unrealized depreciation		(267	)
Net unrealized appreciation	$	3,286

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Small Cap Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	94.99%
Financials	27.40%
Information Technology	20.35%
Consumer Discretionary	15.70%
Industrials	10.39%
Materials	8.30%
Energy	4.60%
Utilities	3.95%
Consumer Staples	3.13%
Health Care	1.17%
Cash and Cash Equivalents	5.01%

Lipper Rankings

Category: Lipper Small-Cap Value Funds	Rank	Percentile
1 Year	61/320	20
3 Year	75/277	27
5 Year	72/212	34
10 Year	48/99	48

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Silgan Holdings Inc.	Materials
Southwest Gas Corporation	Utilities
Sybase, Inc.	Information Technology
American Campus Communities, Inc.	Financials
BJ's Wholesale Club, Inc.	Consumer Staples
Liberty Media Corporation, Liberty Capital Series A	Consumer Discretionary
Sensient Technologies Corporation	Materials
Celestica Inc.	Information Technology
Validus Holdings, Ltd.	Financials
Ralcorp Holdings, Inc.	Consumer Staples

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Small Cap Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,305.00	1.87%	$	10.83
Class B	$1,000	$1,297.10	3.15%	$	18.15
Class C	$1,000	$1,299.50	2.66%	$	15.29
Class E**	$1,000	$1,308.90	1.29%	$	7.50
Class I	$1,000	$1,310.00	1.26%	$	7.28
Class Y	$1,000	$1,308.50	1.42%	$	8.20
Based on 5% Return(2)
Class A	$1,000	$1,015.70	1.87%	$	9.47
Class B	$1,000	$1,009.25	3.15%	$	15.87
Class C	$1,000	$1,011.74	2.66%	$	13.38
Class E**	$1,000	$1,018.61	1.29%	$	6.56
Class I	$1,000	$1,018.73	1.26%	$	6.36
Class Y	$1,000	$1,017.96	1.42%	$	7.16

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Small Cap Value Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising - 0.83%
MDC Partners Inc., Class A (A)		213	$	1,585
Aerospace & Defense - 3.35%
AAR CORP. (A)		106		2,315
BE Aerospace, Inc. (A)		117		2,356
Triumph Group, Inc.		35		1,684
				6,355
Apparel Retail - 1.09%
Finish Line, Inc. (The), Class A		205		2,078
Apparel, Accessories & Luxury Goods - 2.35%
Jones Apparel Group, Inc.		115		2,053
Warnaco Group, Inc. (The) (A)		55		2,399
				4,452
Application Software - 2.20%
Quest Software, Inc. (A)		113		1,896
TIBCO Software Inc. (A)		240		2,276
				4,172
Asset Management & Custody Banks - 2.41%
Ares Capital Corporation		236		2,596
Hercules Technology Growth Capital, Inc.		202		1,983
				4,579
Auto Parts & Equipment - 2.79%
Modine Manufacturing Company		182		1,685
Superior Industries International, Inc.		129		1,831
Tenneco Automotive Inc. (A)		136		1,777
				5,293
Broadcasting - 1.61%
Liberty Media Corporation, Liberty Capital Series A (A)		146		3,054
Casinos & Gaming - 2.96%
Bally Technologies, Inc. (A)		48		1,833
Pinnacle Entertainment, Inc. (A)		151		1,534
WMS Industries Inc. (A)		51		2,263
				5,630
Commercial Printing - 0.83%
Corrections Corporation of America (A)		69		1,572
Communications Equipment - 3.42%
Avocent Corporation (A)		134		2,713
Harmonic Inc. (A)		293		1,957
Tellabs, Inc. (A)		265		1,832
				6,502
Computer Hardware - 0.43%
Silicon Graphics, Inc. (A)		123		824
Consumer Finance - 0.91%
First Cash Financial Services, Inc. (A)		101		1,734
Data Processing & Outsourced Services - 1.89%
Global Cash Access, Inc. (A)		226		1,655
Lender Processing Services, Inc.		51		1,931
				3,586
Diversified Chemicals - 2.36%
Ashland Inc.		55		2,373
FMC Corporation		37		2,104
				4,477
Diversified Metals & Mining - 0.96%
Thompson Creek Metals Company Inc. (A)		151		1,827
Education Services - 0.98%
Lincoln Educational Services Corporation (A)		81		1,856
Electric Utilities - 2.13%
NV Energy, Inc.		234		2,712
Unitil Corporation		59		1,329
				4,041
Electronic Manufacturing Services - 1.57%
Celestica Inc. (A)		314		2,976
Fertilizers & Agricultural Chemicals - 1.25%
Terra Industries Inc.		69		2,378
Gas Utilities - 1.82%
Southwest Gas Corporation		135		3,450
Gold - 0.26%
Red Back Mining Inc. (A)(B)		43		486
Health Care Facilities - 1.17%
AmSurg Corp. (A)		105		2,223
Homebuilding - 1.72%
M.D.C. Holdings, Inc.		66		2,293
M/I Homes, Inc. (A)		71		965
				3,258
Hypermarkets & Super Centers - 1.62%
BJ's Wholesale Club, Inc. (A)		85		3,064
Industrial Machinery - 2.16%
Chart Industries, Inc. (A)		94		2,038
IDEX Corporation		74		2,068
				4,106
Investment Banking & Brokerage - 4.27%
KBW, Inc. (A)		88		2,841
Piper Jaffray Companies (A)		58		2,755
Stifel Financial Corp. (A)		46		2,509
				8,105
Metal & Glass Containers - 1.88%
Silgan Holdings Inc.		68		3,573
Movies & Entertainment - 1.37%
Regal Entertainment Group		211		2,600
Office REITs - 2.26%
Alexandria Real Estate Equities, Inc.		41		2,212
Mack-Cali Realty Corporation		64		2,079
				4,291
Oil & Gas Exploration & Production - 4.60%
American Oil & Gas Inc. (A)		279		549
Brigham Exploration Company (A)		256		2,324
Cabot Oil & Gas Corporation		50		1,791
Comstock Resources, Inc. (A)		42		1,679
Whiting Petroleum Corporation (A)		42		2,391
				8,734
Packaged Foods & Meats - 1.51%
Ralcorp Holdings, Inc. (A)		49		2,871
Regional Banks - 11.06%
Bank of Marin Bancorp		51		1,588
Columbia Banking System, Inc.		107		1,764
East West Bancorp, Inc.		261		2,167
First Horizon National Corporation (A)		105		1,387
Glacier Bancorp, Inc.		106		1,576
Home BancShares, Inc.		32		708
IBERIABANK Corporation		61		2,793
Pacific Continental Corporation		94		989
PacWest Bancorp		83		1,574
Sierra Bancorp		54		645
Southwest Bancorp, Inc.		67		934
Texas Capital Bancshares, Inc. (A)		123		2,075
Wintrust Financial Corporation		100		2,792
				20,992
Reinsurance - 4.04%
Platinum Underwriters Holdings, Ltd.		55		1,960
RenaissanceRe Holdings Ltd.		50		2,738
Validus Holdings, Ltd.		115		2,972
				7,670
Residential REITs - 1.63%
American Campus Communities, Inc.		115		3,088
Security & Alarm Services - 1.43%
GEO Group, Inc. (The) (A)		135		2,715
Semiconductor Equipment - 1.86%
Lam Research Corporation (A)		52		1,787
Verigy Ltd. (A)		151		1,751
				3,538
Semiconductors - 2.52%
Applied Micro Circuits Corporation (A)		97		965
Atmel Corporation (A)		519		2,175
Cirrus Logic, Inc. (A)		296		1,648
				4,788
Specialty Chemicals - 1.59%
Sensient Technologies Corporation		109		3,024
Systems Software - 1.69%
Sybase, Inc. (A)		82		3,206
Technology Distributors - 4.77%
Anixter International Inc. (A)		44		1,745
Arrow Electronics, Inc. (A)		74		2,069
Avnet, Inc. (A)		97		2,527
Tech Data Corporation (A)		65		2,705
				9,046
Thrifts & Mortgage Finance - 0.82%
First Niagara Financial Group, Inc.		126		1,556
Trucking - 2.62%
Arkansas Best Corporation		46		1,374
Marten Transport, Ltd. (A)		116		1,978
Werner Enterprises, Inc.		87		1,628
				4,980
TOTAL COMMON STOCKS - 94.99%			$	180,335
(Cost: $153,107)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 2.68%
Coca-Cola Company (The),
0.140%, 11-9-09		$	2,500		2,500
Sara Lee Corporation,
0.100%, 10-1-09			2,579		2,579
					5,079
Master Note - 1.43%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (C)			2,721		2,721
TOTAL SHORT-TERM SECURITIES - 4.11%				$	7,800
(Cost: $7,800)
TOTAL INVESTMENT SECURITIES - 99.10%				$	188,135
(Cost: $160,907)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.90%					1,715
NET ASSETS - 100.00%				$	189,850

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

(B)Listed on an exchange outside the United States.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	161,192
Gross unrealized appreciation		29,361
Gross unrealized depreciation		(2,418	)
Net unrealized appreciation	$	26,943

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	98.18%
Financials	25.14%
Energy	19.85%
Information Technology	10.52%
Consumer Staples	10.40%
Industrials	9.47%
Health Care	8.34%
Consumer Discretionary	7.92%
Telecommunication Services	3.48%
Materials	3.06%
Cash and Cash Equivalents	1.82%

Lipper Rankings

Category: Lipper Large-Cap Value Funds	Rank	Percentile
1 Year	33/548	7
3 Year	66/479	14
5 Year	108/395	28
10 Year	148/193	77

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector
Bank of America Corporation	Financials
Chevron Corporation	Energy
Travelers Companies, Inc. (The)	Financials
McKesson Corporation	Health Care
Occidental Petroleum Corporation	Energy
Hewlett-Packard Company	Information Technology
AT&T Inc.	Telecommunication Services
CVS Corporation	Consumer Staples
Lowe's Companies, Inc.	Consumer Discretionary
Union Pacific Corporation	Industrials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,405.80	1.97%	$	11.91
Class B	$1,000	$1,393.70	3.64%	$	21.78
Class C	$1,000	$1,397.60	3.01%	$	18.10
Class E**	$1,000	$1,410.60	1.31%	$	7.95
Class I	$1,000	$1,411.50	1.18%	$	7.11
Class Y	$1,000	$1,407.30	1.63%	$	9.87
Based on 5% Return(2)
Class A	$1,000	$1,015.18	1.97%	$	9.98
Class B	$1,000	$1,006.84	3.64%	$	18.26
Class C	$1,000	$1,009.98	3.01%	$	15.18
Class E**	$1,000	$1,018.50	1.31%	$	6.66
Class I	$1,000	$1,019.15	1.18%	$	5.96
Class Y	$1,000	$1,016.92	1.63%	$	8.27

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Value Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense - 2.66%
Honeywell International Inc.		12	$	435
Raytheon Company		20		978
				1,413
Airlines - 0.71%
Delta Air Lines, Inc. (A)		42		376
Brewers - 3.02%
Molson Coors Brewing Company, Class B		33		1,602
Communications Equipment - 2.47%
Nokia Corporation, Series A, ADR		90		1,313
Computer Hardware - 4.95%
Hewlett-Packard Company		46		2,163
International Business Machines Corporation (B)		4		466
				2,629
Consumer Finance - 2.19%
Capital One Financial Corporation		33		1,165
Department Stores - 2.53%
Macy's Inc.		73		1,341
Diversified Chemicals - 2.24%
Dow Chemical Company (The)		14		373
Solutia Inc. (A)		71		817
				1,190
Drug Retail - 3.40%
CVS Corporation		51		1,805
Health Care Distributors - 6.44%
AmerisourceBergen Corporation		47		1,059
McKesson Corporation		40		2,358
				3,417
Home Improvement Retail - 3.26%
Lowe's Companies, Inc.		83		1,737
Hotels, Resorts & Cruise Lines - 1.05%
Carnival Corporation		17		556
Industrial Conglomerates - 0.86%
Textron Inc. (B)		24		459
Industrial Machinery - 2.22%
Illinois Tool Works Inc.		28		1,178
Integrated Oil & Gas - 13.73%
Chevron Corporation		34		2,416
Exxon Mobil Corporation		9		632
Marathon Oil Corporation		39		1,247
Occidental Petroleum Corporation		29		2,234
Targa Resources Partners LP		41		762
				7,291
Integrated Telecommunication Services - 3.48%
AT&T Inc.		68		1,847
Investment Banking & Brokerage - 2.58%
Morgan Stanley		44		1,368
IT Consulting & Other Services - 0.24%
Accenture plc, Class A		3		127
Managed Health Care - 1.48%
UnitedHealth Group Incorporated		31		786
Metal & Glass Containers - 0.82%
Pactiv Corporation (A)		17		435
Mortgage REITs - 1.38%
Annaly Capital Management, Inc. (B)		40		733
Office Electronics - 2.17%
Xerox Corporation (B)	149			1,151
Oil & Gas Storage & Transportation - 6.12%
Copano Energy, L.L.C. (B)		11		207
Energy Transfer Equity, L.P.		28		795
Enterprise Products Partners L.P.		37		1,035
MarkWest Energy Partners, L.P.		25		586
Regency Energy Partners LP		32		629
				3,252
Other Diversified Financial Services - 5.33%
Bank of America Corporation (B)	167			2,831
Pharmaceuticals - 0.42%
Johnson & Johnson		4		225
Property & Casualty Insurance - 7.52%
ACE Limited		30		1,593
Travelers Companies, Inc. (The)		49		2,400
				3,993
Railroads - 3.02%
Union Pacific Corporation		28		1,605
Regional Banks - 3.54%
PNC Financial Services Group, Inc. (The)		29		1,395
Zions Bancorporation		27		487
				1,882
Reinsurance - 2.60%
Everest Re Group, Ltd.		7		596
RenaissanceRe Holdings Ltd.		14		783
				1,379
Specialty Stores - 1.08%
Office Depot, Inc. (A)(B)		86		571
Systems Software - 0.69%
Symantec Corporation (A)		22		367
Tobacco - 3.98%
Altria Group, Inc.		39		698
Lorillard, Inc.		12		892
Philip Morris International Inc.		11		526
				2,116
TOTAL COMMON STOCKS - 98.18%			$	52,140
(Cost: $46,873)

SHORT-TERM SECURITIES - 2.97%	Principal
Master Note
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (C)		$	1,577	$	1,577
(Cost: $1,577)
TOTAL INVESTMENT SECURITIES - 101.15%				$	53,717
(Cost: $48,450)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.15%)					(613	)
NET ASSETS - 100.00%				$	53,104

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

(B)Securities serve as cover or collateral for the following written options outstanding at September 30, 2009:

Underlying Security	Counterparty	Contracts Subject to Call		Expiration Month	Exercise Price	Premium Received			Market Value
Bank of America Corporation	UBS Securities LLC		--*	November 2009	$20.00		$	15		$	(8)
Copano Energy, L.L.C.	UBS Securities LLC		--*	November 2009	17.50			3			(13)
International Business       Machines Corporation	Morgan Stanley       Smith Barney		--*	October 2009	125.00			6			(3)
Textron Inc.	UBS Securities LLC		--*	December 2009	24.00			12			(14)
							$	36		$	(38)

Underlying Security	Counterparty	Contracts Subject to Put		Expiration Month	Exercise Price	Premium Received			Market Value
Energy Transfer Equity, L.P.:	Morgan Stanley       Smith Barney		--*	October 2009	$22.50		$	3		$	--*
	Morgan Stanley       Smith Barney		--*	October 2009	25.00			2			(1)
Johnson & Johnson	Morgan Stanley       Smith Barney		--*	October 2009	55.00			4			--*
Lowe's Companies, Inc.	UBS Securities LLC		--*	October 2009	17.50			2			--*
Morgan Stanley	UBS Securities LLC		--*	October 2009	22.00			3			--*
Nokia Corporation,       Series A, ADR	Goldman, Sachs &       Company		--*	October 2009	11.00			3			--*
Textron Inc.	UBS Securities LLC		--*	December 2009	14.00			13			(12)
							$	30		$	(13)

*Not shown due to rounding.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipt
REIT = Real Estate Investment Trust

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	49,065
Gross unrealized appreciation		7,801
Gross unrealized depreciation		(3,149	)
Net unrealized appreciation	$	4,652

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Managed Funds

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Ivy Managed European/Pacific Fund

Ivy Pacific Opportunities Fund, Class I	78.79%
Ivy European Opportunities Fund, Class I	21.10%
Cash and Cash Equivalents	0.11%

Ivy Managed International Opportunities Fund

Ivy International Core Equity Fund, Class I	25.41%
Ivy International Balanced Fund, Class I	25.08%
Ivy International Growth Fund, Class I	19.93%
Ivy Pacific Opportunities Fund, Class I	19.19%
Ivy European Opportunities Fund, Class I	10.28%
Cash and Cash Equivalents	0.11%

ILLUSTRATION OF FUND EXPENSES

Ivy Managed Funds

(UNAUDITED)

Ivy Managed European/Pacific Fund

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,520.40	0.78%	$	4.91
Class B	$1,000	$1,518.50	1.81%	$	11.46
Class C	$1,000	$1,519.50	1.53%	$	9.70
Class E**	$1,000	$1,521.40	0.52%	$	3.28
Class I	$1,000	$1,522.40	0.27%	$	1.77
Class Y	$1,000	$1,521.40	0.67%	$	4.29
Based on 5% Return(2)
Class A	$1,000	$1,021.15	0.78%	$	3.94
Class B	$1,000	$1,016.01	1.81%	$	9.17
Class C	$1,000	$1,017.39	1.53%	$	7.77
Class E**	$1,000	$1,022.44	0.52%	$	2.63
Class I	$1,000	$1,023.70	0.27%	$	1.42
Class Y	$1,000	$1,021.70	0.67%	$	3.44

Ivy Managed International Opportunities Fund

For the Six Months Ended September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,448.40	0.62%	$3.80
Class B	$1,000	$1,445.40	1.56%	$9.54
Class C	$1,000	$1,447.20	1.40%	$8.57
Class E**	$1,000	$1,450.20	0.44%	$2.70
Class I	$1,000	$1,451.20	0.18%	$1.10
Class Y	$1,000	$1,449.20	0.61%	$3.80
Based on 5% Return(2)
Class A	$1,000	$1,021.96	0.62%	$3.13
Class B	$1,000	$1,017.25	1.56%	$7.87
Class C	$1,000	$1,018.04	1.40%	$7.06
Class E**	$1,000	$1,022.87	0.44%	$2.23
Class I	$1,000	$1,024.15	0.18%	$0.91
Class Y	$1,000	$1,021.99	0.61%	$3.13

*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, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Managed Funds (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

Ivy Managed European/Pacific Fund
AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I		660	$	14,437
Ivy Pacific Opportunities Fund, Class I	3,781			53,916
TOTAL AFFILIATED MUTUAL FUNDS - 99.89%			$	68,353
(Cost: $65,104)
SHORT-TERM SECURITIES - 0.04%	Principal
Master Note
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (A)		$30	$	30
(Cost: $30)
TOTAL INVESTMENT SECURITIES - 99.93%			$	68,383
(Cost: $65,134)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.07%				43
NET ASSETS - 100.00%			$	68,426

Notes to Schedule of Investments

(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	70,843
Gross unrealized appreciation		756
Gross unrealized depreciation		(3,216	)
Net unrealized depreciation	$	(2,460	)

Ivy Managed International Opportunities Fund
AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I		659	$	14,406
Ivy International Balanced Fund, Class I		2,656		35,164
Ivy International Core Equity Fund, Class I		2,460		35,626
Ivy International Growth Fund, Class I		1,002		27,947
Ivy Pacific Opportunities Fund, Class I		1,887		26,904
TOTAL AFFILIATED MUTUAL FUNDS - 99.89%			$	140,047
(Cost: $148,020)
SHORT-TERM SECURITIES - 0.20%	Principal
Master Note
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (A)		$277	$	277
(Cost: $277)
TOTAL INVESTMENT SECURITIES - 100.09%			$	140,324
(Cost: $148,297)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.09%)				(125	)
NET ASSETS - 100.00%			$	140,199

Notes to Schedule of Investments

(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	155,638
Gross unrealized appreciation		699
Gross unrealized depreciation		(16,013	)
Net unrealized depreciation	$	(15,314	)

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Cundill Global Value Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	96.39%
Financials	29.59%
Consumer Discretionary	19.55%
Information Technology	13.26%
Consumer Staples	12.89%
Telecommunication Services	7.25%
Industrials	5.09%
Materials	4.48%
Health Care	4.28%
Cash and Cash Equivalents	3.61%

Lipper Rankings

Category: Lipper Global Small-/Mid-Cap Funds	Rank	Percentile
1 Year	49/73	67
3 Year	37/57	64
5 Year	43/54	79

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

North America	42.81%
United States	37.48%
Canada	5.33%
Pacific Basin	28.47%
Japan	14.31%
South Korea	8.01%
Hong Kong	4.06%
Other Pacific Basin(1)	2.09%
Europe	25.11%
Italy	15.23%
Germany	8.69%
Other Europe(2)	1.19%
Cash and Cash Equivalents	3.61%

(1)Includes 2.09% Thailand.

(2)Includes 1.19% Spain.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Fairfax Financial Holdings Limited	Canada	Financials	Multi-Line Insurance
Liberty Media Corporation,       Series A Liberty Entertainment	United States	Consumer       Discretionary	Cable & Satellite
Munchener Ruckversicherungs-       Gesellschaft Aktiengesellschaft,       Registered Shares	Germany	Financials	Insurance Brokers
FedEx Corporation	United States	Industrials	Air Freight & Logistics
Microsoft Corporation	United States	Information       Technology	Systems Software
Mediaset S.p.A.	Italy	Consumer       Discretionary	Broadcasting
Viacom Inc., Class B	United States	Consumer       Discretionary	Movies & Entertainment
Dell Inc.	United States	Information       Technology	Computer Hardware
Samsung Electronics Co., Ltd.	South Korea	Information       Technology	Semiconductors
Pfizer Inc.	United States	Health Care	Pharmaceuticals

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Cundill Global Value Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,370.80	1.89%	$	11.26
Class B	$1,000	$1,363.40	2.91%	$	17.25
Class C	$1,000	$1,366.30	2.51%	$	14.91
Class E	$1,000	$1,373.10	1.59%	$	9.49
Class I	$1,000	$1,375.00	1.33%	$	7.96
Class Y	$1,000	$1,376.50	1.21%	$	7.13
Advisor Class**	$1,000	$1,376.20	1.20%	$	7.13
Based on 5% Return(2)
Class A	$1,000	$1,015.57	1.89%	$	9.57
Class B	$1,000	$1,010.46	2.91%	$	14.68
Class C	$1,000	$1,012.47	2.51%	$	12.68
Class E	$1,000	$1,017.11	1.59%	$	8.07
Class I	$1,000	$1,018.41	1.33%	$	6.76
Class Y	$1,000	$1,019.02	1.21%	$	6.06
Advisor Class**	$1,000	$1,019.04	1.20%	$	6.06

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Cundill Global Value Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS			Shares	Value
Canada - 5.33%
Fairfax Financial Holdings Limited (A)			49	$	18,203
Germany - 8.69%
Deutsche Telekom AG, Registered Shares (A)			887		12,138
Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft,       Registered Shares (A)			109		17,513
					29,651
Hong Kong - 4.06%
First Pacific Company Limited (A)	20,691				13,856
Italy - 15.23%
EXOR S.p.A. (A)			740		13,699
Italmobiliare S.p.A., Non-Convertible Savings Shares (A)			273		8,628
Mediaset S.p.A. (A)			2,189		15,314
Parmalat SpA (A)			5,178		14,312
					51,953
Japan - 14.31%
Daiwa Securities Group Inc. (A)			597		3,079
FamilyMart Co., Ltd.			323		10,399
Kirin Brewery Company, Limited (A)			792		12,141
NIPPONKOA Insurance Company, Limited (A)			799		5,002
Sega Sammy Holdings Inc. (A)			963		12,526
Sekisui House, Ltd. (A)			630		5,685
					48,832
South Korea - 3.69%
SK Telecom Co., Ltd. (A)			67		10,308
SK Telecom Co., Ltd., ADR			131		2,284
					12,592
Spain - 1.19%
Corporacion Financiera Alba, S.A. (A)			71		4,075
Thailand - 2.09%
Thai Beverage Public Company Limited (A)	40,262				7,145
United States - 37.48%
Dell Inc. (B)			983		14,994
FedEx Corporation			231		17,346
Liberty Media Corporation, Series A Liberty Entertainment (B)			573		17,836
Louisiana-Pacific Corporation (B)			1,000		6,670
Microsoft Corporation			599		15,498
Montpelier Re Holdings Ltd.			695		11,339
Pfizer Inc.			882		14,595
U.S. Bancorp			653		14,277
Viacom Inc., Class B (B)			546		15,299
					127,854
TOTAL COMMON STOCKS - 92.07%				$	314,161
(Cost: $288,541)
PREFERRED STOCKS - 4.32%
South Korea
Samsung Electronics Co., Ltd. (A)			35	$	14,748
(Cost: $15,019)
SHORT-TERM SECURITIES - 2.47%	Principal
Repurchase Agreements
J.P. Morgan Securities, Inc.,       Repurchase Agreement dated 9-30-09       to be repurchased at $8,423,
0.010%, 10-1-09 (C)		$	8,423	$	8,423
(Cost: $8,423)
TOTAL INVESTMENT SECURITIES - 98.86%				$	337,332
(Cost: $311,983)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.14%					3,873
NET ASSETS - 100.00%				$	341,205

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2009:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Euro	Scotia Capital Inc. (USA)		7,473	10-23-09		$	--		$	1,033
Sell	Euro	Scotia Capital Inc. (USA)		24,578	12-11-09			132			--
Sell	Euro	State Street Global Markets		18,533	12-18-09			96			--
Sell	Japanese Yen	Toronto-Dominion Bank (The)		4,187,999	10-23-09			--			4,517
Sell	Singapore Dollar	Scotia Capital Inc. (USA)		9,028	10-23-09			--			353
Sell	South Korean Won	Toronto-Dominion Bank (The)		15,477,423	11-20-09			--			390
Sell	South Korean Won	Royal Bank of Canada		11,854,077	12-  4-09			--			387
							$	228		$	6,680

(A)Listed on an exchange outside the United States.

(B)No dividends were paid during the preceding 12 months.

(C)Collateralized by $5,987 United States Treasury Bond, 7.500% due 11-15-24; market value and accrued interest aggregate $8,607.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Financials	29.59%
Consumer Discretionary	19.55%
Information Technology	13.26%
Consumer Staples	12.89%
Telecommunication Services	7.25%
Industrials	5.09%
Materials	4.48%
Health Care	4.28%
Other+	3.61%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	312,022
Gross unrealized appreciation		58,890
Gross unrealized depreciation		(33,580	)
Net unrealized appreciation	$	25,310

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy European Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	96.19%
Financials	21.95%
Health Care	12.24%
Materials	12.21%
Consumer Staples	11.06%
Energy	10.05%
Industrials	8.25%
Telecommunication Services	8.12%
Consumer Discretionary	7.88%
Information Technology	3.59%
Utilities	0.84%
Rights	0.05%
Cash and Cash Equivalents	3.76%

Lipper Rankings

Category: Lipper European Region Funds	Rank	Percentile
1 Year	88/106	83
3 Year	75/95	79
5 Year	68/87	78
10 Year	6/51	12

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

Europe	94.80%
United Kingdom	25.84%
Switzerland	15.70%
Germany	14.11%
France	11.05%
Ireland	7.04%
Netherlands	4.59%
Spain	3.63%
Other Europe(1)	12.84%
Bahamas/Caribbean(2)	1.44%
Cash and Cash Equivalents	3.76%

(1)Includes 0.68% Cyprus, 2.87% Greece, 2.83% Italy, 3.13% Luxembourg, 2.82% Norway and 0.51% Portugal.

(2)Includes 1.44% Cayman Islands.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Vodafone Group Plc	United Kingdom	Telecommunication       Services	Wireless       Telecommunication       Service
CRH plc	Ireland	Materials	Construction Materials
HSBC Holdings plc	United Kingdom	Financials	Diversified Banks
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Imperial Tobacco Group PLC	United Kingdom	Consumer Staples	Tobacco
StatoilHydro ASA	Norway	Energy	Integrated Oil & Gas
Bayer Aktiengesellschaft	Germany	Materials	Diversified Chemicals
Roche Holdings AG, Genussschein	Switzerland	Health Care	Pharmaceuticals
tesco plc	United Kingdom	Consumer Staples	Food Retail
Zurich Financial Services,       Registered Shares	Switzerland	Financials	Multi-Line Insurance

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy European Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,441.60	2.15%	$	13.18
Class B	$1,000	$1,434.50	3.16%	$	19.35
Class C	$1,000	$1,438.50	2.68%	$	16.34
Class E**	$1,000	$1,447.60	1.43%	$	8.81
Class I	$1,000	$1,448.60	1.28%	$	7.84
Class Y	$1,000	$1,446.40	1.58%	$	9.66
Advisor Class**	$1,000	$1,448.10	1.32%	$	8.08
Based on 5% Return(2)
Class A	$1,000	$1,014.30	2.15%	$	10.88
Class B	$1,000	$1,009.22	3.16%	$	15.97
Class C	$1,000	$1,011.65	2.68%	$	13.48
Class E**	$1,000	$1,017.88	1.43%	$	7.26
Class I	$1,000	$1,018.63	1.28%	$	6.46
Class Y	$1,000	$1,017.15	1.58%	$	7.97
Advisor Class**	$1,000	$1,018.45	1.32%	$	6.66

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy European Opportunities Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares	Value
Cayman Islands - 1.44%
Subsea 7 Inc. (A)(B)	272	$	3,645
Cyprus - 0.68%
Prosafe Production (A)(B)	727		1,725
France - 11.00%
ALSTOM (B)	67		4,875
AXA S.A. (B)	53		1,424
BNP Paribas (B)	62		4,938
Sanofi-Aventis (B)	100		7,339
Societe Generale (B)	56		4,543
TOTAL S.A. (B)	80		4,754
			27,873
Germany - 13.42%
adidas AG (B)	50		2,658
Allianz Aktiengesellschaft, Registered Shares (B)	22		2,780
Bayer Aktiengesellschaft (B)	95		6,579
DaimlerChrysler AG, Registered Shares (B)	25		1,267
Deutsche Boerse AG (B)	50		4,094
Deutsche Lufthansa Aktiengesellschaft (B)	130		2,312
E.ON AG (B)	50		2,128
GEA Group Aktiengesellschaft, Bochum (B)	90		1,889
HeidelbergCement AG (A)(B)(C)	23		1,513
SAP Aktiengesellschaft (B)	39		1,924
Siemens AG (B)	32		2,944
Wacker Chemie AG (B)	25		3,915
			34,003
Greece - 2.87%
Coca-Cola Hellenic Bottling Company S.A. (B)	111		2,958
National Bank of Greece S.A. (B)	120		4,303
			7,261
Ireland - 7.04%
CRH plc (B)	322		8,915
Grafton Group plc, Units (A)(B)	873		4,956
Paddy Power plc (B)	130		3,957
			17,828
Italy - 2.83%
Banca Intesa S.p.A. (B)	600		2,654
Saipem S.p.A. (B)	150		4,517
			7,171
Luxembourg - 3.13%
ARCELORMITTAL (B)	99		3,713
SES GLOBAL S.A., Fiduciary Deposit Receipts (B)	186		4,212
			7,925
Netherlands - 4.59%
AEGON N.V. (B)	250		2,122
ASML Holding N.V., Ordinary Shares (B)	164		4,834
Koninklijke KPN N.V. (B)	282		4,684
			11,640
Norway - 2.82%
StatoilHydro ASA (B)	318		7,144
Portugal - 0.51%
Galp Energia, SGPS, S.A., Class B (A)(B)	75		1,297
Spain - 3.63%
Industria de Diseno Textil, S.A. (B)	70		3,998
Telefonica, S.A. (B)	188		5,190
			9,188
Switzerland - 15.70%
ABB Ltd (B)	60		1,204
ARYZTA AG (A)(B)	76		3,060
Lonza Group Ltd, Registered Shares (B)	15		1,636
Nestle S.A., Registered Shares (B)	120		5,114
Novartis AG, Registered Shares (B)	113		5,674
Roche Holdings AG, Genussschein (B)	40		6,465
Sonova Holding AG (B)	15		1,518
Synthes, Inc. (B)	23		2,711
TEMENOS Group AG (A)(B)	100		2,345
UBS AG (A)(B)(D)	49		888
UBS AG (B)	175		3,203
Zurich Financial Services, Registered Shares (B)	25		5,947
			39,765
United Kingdom - 25.84%
Ashtead Group plc (B)	1,967		2,703
Aurora Russia Limited (A)(B)	1,557		1,045
Barclays PLC (A)(B)	400		2,365
BP p.l.c. (B)	269		2,377
British Sky Broadcasting Group plc (B)	424		3,872
GlaxoSmithKline plc (B)	200		3,930
HSBC Holdings plc (B)	700		8,011
Imperial Tobacco Group PLC (B)	249		7,187
Lloyds Banking Group Plc (B)	2,092		3,468
MAXjet Airways, Inc. (A)(B)(C)	1,129		––	*
MAXjet Airways, Inc. (A)(B)	150		––	*
Prudential plc (B)	400		3,845
Reckitt Benckiser Group plc (B)	70		3,421
Rio Tinto plc (B)	50		2,132
tesco plc (B)	981		6,263
Vodafone Group Plc (B)	4,775		10,700
Xstrata plc (B)	282		4,153
			65,472
TOTAL COMMON STOCKS - 95.50%		$	241,937
(Cost: $217,231)
PREFERRED STOCKS - 0.69%
Germany
Fresenius AG (B)	30	$	1,749
(Cost: $1,423)
RIGHTS - 0.05%
France
BNP Paribas, Rights (A)(B)	62	$	134
(Cost: $160)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 1.96%
Johnson & Johnson,
0.020%, 10-1-09		$	4,965		4,965
Master Note - 1.60%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (E)			4,060		4,060
TOTAL SHORT-TERM SECURITIES - 3.56%				$	9,025
(Cost: $9,025)
TOTAL INVESTMENT SECURITIES - 99.80%				$	252,845
(Cost: $227,839)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.20%					502
NET ASSETS - 100.00%				$	253,347

Notes to Schedule of Investments

*Not shown due to rounding.

(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, 2009, the total value of these securities amounted to $1,513 or 0.60% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers.  These securities have been determined to be liquid under guidelines established by the Board of Trustees.  At September 30, 2009, the total value of these securities amounted to $888 or 0.35% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

Market Sector Diversification
(as a % of net assets)
Financials	22.00%
Health Care	12.24%
Materials	12.21%
Consumer Staples	11.06%
Energy	10.05%
Industrials	8.25%
Telecommunication Services	8.12%
Consumer Discretionary	7.88%
Information Technology	3.59%
Utilities	0.84%
Other+	3.76%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	235,614
Gross unrealized appreciation		33,280
Gross unrealized depreciation		(16,049	)
Net unrealized appreciation	$	17,231

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Balanced Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	67.42%
Industrials	10.98%
Financials	10.85%
Information Technology	9.07%
Consumer Staples	7.65%
Energy	7.05%
Telecommunication Services	6.09%
Consumer Discretionary	6.06%
Materials	3.90%
Health Care	3.84%
Utilities	1.93%
Bonds	30.33%
Other Government Securities	18.34%
Corporate Debt Securities	11.99%
Cash and Cash Equivalents	2.25%

Lipper Rankings

Category: Lipper Mixed-Asset Target       Allocation Growth Funds	Rank	Percentile
1 Year	63/665	10
3 Year	65/541	12
5 Year	13/442	3
10 Year	4/243	2

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

Europe	58.28%
France	16.59%
United Kingdom	14.73%
Germany	8.48%
Netherlands	4.64%
Switzerland	4.00%
Other Europe(1)	9.84%
Pacific Basin	35.46%
Japan	10.34%
Australia	9.31%
Other Pacific Basin(2)	15.81%
North America(3)	2.40%
South America(4)	1.61%
Cash and Cash Equivalents	2.25%

(1)Includes 2.15% Denmark, 1.11% Finland, 1.84% Italy, 1.29% Luxembourg, 0.46% Poland and 2.99% Sweden.

(2)Includes 2.97% China, 1.98% Hong Kong, 2.46% Malaysia, 1.17% New Zealand, 2.04% Singapore, 2.78% South Korea and 2.41% Taiwan.

(3)Includes 2.40% Canada.

(4) Includes 1.61% Brazil.

Bond Portfolio Characteristics

Average maturity	4.2 years
Effective duration	3.5 years
Weighted average bond rating	A+

Top 10 Equity Holdings

Company	Country	Sector	Industry
Unilever PLC	United Kingdom	Consumer Staples	Packaged Foods & Meats
Vivendi Universal	France	Consumer Discretionary	Movies & Entertainment
Roche Holdings AG,       Genussschein	Switzerland	Health Care	Pharmaceuticals
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Sanofi-Aventis	France	Health Care	Pharmaceuticals
TOTAL S.A.	France	Energy	Integrated Oil & Gas
BP p.l.c.	United Kingdom	Energy	Integrated Oil & Gas
Vodafone Group Plc	United Kingdom	Telecommunication       Services	Wireless       Telecommunication       Service
Henkel AG & Co. KGaA	Germany	Consumer Staples	Household Products
Telstra Corporation Limited	Australia	Telecommunication       Services	Integrated       Telecommunication       Services

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Balanced Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,381.00	1.59%	$	9.52
Class B	$1,000	$1,373.30	2.69%	$	16.02
Class C	$1,000	$1,377.40	2.23%	$	13.31
Class E	$1,000	$1,384.20	1.33%	$	7.99
Class I	$1,000	$1,386.40	1.02%	$	6.09
Class Y	$1,000	$1,382.90	1.30%	$	7.74
Based on 5% Return(2)
Class A	$1,000	$1,017.08	1.59%	$	8.07
Class B	$1,000	$1,011.58	2.69%	$	13.58
Class C	$1,000	$1,013.87	2.23%	$	11.28
Class E	$1,000	$1,018.41	1.33%	$	6.76
Class I	$1,000	$1,019.98	1.02%	$	5.15
Class Y	$1,000	$1,018.55	1.30%	$	6.56

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Balanced Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia - 4.67%
Amcor Limited (A)		411	$	1,986
Crown Limited (A)		342		2,696
Foster's Group Limited (A)		673		3,294
Telstra Corporation Limited (A)		1,205		3,478
Telstra Corporation Limited (A)(B)		80		231
				11,685
Canada - 2.40%
Canadian Natural Resources Limited (A)		30		2,040
Research In Motion Limited (C)		31		2,102
Shoppers Drug Mart Corporation (A)		46		1,871
				6,013
China - 2.97%
China Oilfield Services Limited (A)		1,994		1,860
Industrial and Commercial Bank of China Limited, H Shares (A)(B)		4,016		3,027
Shanda Interactive Entertainment Limited, ADR (C)		50		2,543
				7,430
Denmark - 0.78%
Carlsberg Group (A)		27		1,941
Finland - 1.11%
Nokia OYJ (A)		189		2,775
France - 9.75%
ALSTOM (A)		48		3,467
AXA S.A. (A)		110		2,966
Sanofi-Aventis (A)(B)		19		1,400
Sanofi-Aventis (A)		54		3,981
Societe Generale (A)		29		2,362
Thales (A)		40		2,007
TOTAL S.A. (A)		66		3,948
Vivendi Universal (A)		137		4,234
				24,365
Germany - 5.81%
Bayer Aktiengesellschaft (A)		37		2,582
Deutsche Boerse AG (A)		30		2,445
Deutsche Lufthansa Aktiengesellschaft (A)		143		2,549
RWE Aktiengesellschaft (A)		25		2,359
SAP Aktiengesellschaft (A)		44		2,182
Symrise AG (A)		126		2,409
				14,526
Hong Kong - 1.98%
CNOOC Limited (A)		1,554		2,089
Metallurgical Corporation of China Ltd., H Shares (A)(C)(D)		1,400		950
Renhe Commercial Holdings Company Limited (A)		2,558		515
Renhe Commercial Holdings Company Limited (A)(B)		6,984		1,406
				4,960
Italy - 1.84%
Fondiaria-SAI S.p.A. (A)		120		2,521
Tenaris S.A. (A)		117		2,084
				4,605
Japan - 10.34%
East Japan Railway Company (A)		37		2,648
Hitachi Construction Machinery Co., Ltd. (A)		125		2,690
JTEKT Corporation (A)		226		2,629
KONAMI CORPORATION (A)		127		2,585
Mitsubishi Electric Corporation (A)		413		3,129
Mitsui O.S.K. Lines, Ltd. (A)		285		1,689
Nintendo Co., Ltd. (A)		10		2,640
Nissin Kogyo Co., Ltd. (A)		220		3,205
NTT DoCoMo, Inc. (A)		2		2,503
Sumitomo Mitsui Financial Group, Inc. (A)		61		2,130
				25,848
Netherlands - 2.06%
Fugro N.V. (A)		32		1,843
Koninklijke KPN N.V. (A)		200		3,315
				5,158
Singapore - 2.04%
DBS Group Holdings Ltd (A)		332		3,126
Singapore Telecommunications Limited (A)		854		1,970
				5,096
Switzerland - 4.00%
Nestle S.A., Registered Shares (A)		93		3,984
Roche Holdings AG, Genussschein (A)		26		4,180
TEMENOS Group AG (A)(C)		78		1,825
				9,989
Taiwan - 2.41%
Lite-On Technology Corporation, GDR (A)		231		3,033
Taiwan Semiconductor Manufacturing Company Ltd. (A)		1,488		2,985
				6,018
United Kingdom - 13.79%
BAE Systems plc (A)		600		3,346
Barclays PLC (A)(C)		581		3,437
BP p.l.c. (A)		429		3,796
Home Retail Group plc (A)		443		1,925
Informa plc (A)		617		3,105
International Power plc (A)		536		2,477
Prudential plc (A)		331		3,181
Serco Group plc (A)		287		2,314
Unilever PLC (A)		153		4,337
Vodafone Group Plc (A)		1,679		3,761
Xstrata plc (A)		189		2,785
				34,464
TOTAL COMMON STOCKS - 65.95%			$	164,873
(Cost: $148,637)
PREFERRED STOCKS - 1.47%
Germany
Henkel AG & Co. KGaA (A)		85	$	3,681
(Cost: $2,302)

CORPORATE DEBT SECURITIES		Principal
Australia - 2.98%
Coles Myer Finance Limited,
6.000%, 7-25-12 (E)	AUD1,250				1,078
Fairfax Media Group Finance Pty Limited,
5.250%, 6-15-12 (E)	EUR2,000				2,835
Fosters Group Limited,
6.250%, 3-17-10 (E)	AUD2,000				1,776
Vodafone Group Plc,
6.750%, 1-10-13 (E)			2,000		1,757
					7,446
Brazil - 1.61%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (E)	BRL7,500				4,022
Denmark - 1.37%
Carlsberg Finans A/S,
7.000%, 2-26-13 (E)	GBP2,000				3,424
France - 2.49%
Vivendi,
7.750%, 1-23-14 (E)	EUR2,000				3,351
WPP Finance S.A.,
5.250%, 1-30-15 (E)			2,000		2,881
					6,232
Luxembourg - 1.29%
Wind Acquisition Finance S.A.:
9.750%, 12-1-15 (E)			1,500		2,370
11.750%, 7-15-17 (B)		$	750		846
					3,216
Netherlands - 1.31%
Heineken N.V.,
7.125%, 4-7-14 (E)	EUR2,000				3,265
United Kingdom - 0.94%
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14		$	2,000		2,361
TOTAL CORPORATE DEBT SECURITIES - 11.99%				$	29,966
(Cost: $27,265)
OTHER GOVERNMENT SECURITIES
Australia - 1.66%
New South Wales Treasury Corporation,
6.000%, 5-1-12 (E)	AUD4,600				4,138
France - 4.35%
French Treasury Bond (OAT),
4.250%, 10-25-17 (E)	EUR6,920				10,884
Germany - 1.20%
KfW, Frankfurt/Main, Federal Republic of Germany,
3.000%, 12-4-09 (E)	CHF3,100				3,005

Malaysia - 2.46%
Malaysian Government Bonds:
3.756%, 4-28-11 (E)	MYR8,550				2,524
3.461%, 7-31-13 (E)	12,435				3,614
					6,138
Netherlands - 1.27%
Netherlands Government Bonds,
4.500%, 7-15-17 (E)	EUR2,000				3,176
New Zealand - 1.17%
New Zealand Government Bonds,
6.000%, 11-15-11 (E)	NZD3,910				2,927
Poland - 0.46%
Poland Government Bonds,
6.250%, 10-24-15 (E)	PLN3,250				1,154
South Korea - 2.78%
Republic of Korea (The),
7.125%, 4-16-19		$	2,890		3,391
South Korea Treasury Bonds,
5.250%, 9-10-12 (E)	KRW4,100,000				3,556
					6,947
Sweden - 2.99%
Kingdom of Sweden (The),
5.250%, 3-15-11 (E)	SEK47,170				7,193
Sweden Government Bonds,
4.000%, 12-1-09 (E)			1,970		284
					7,477
TOTAL OTHER GOVERNMENT SECURITIES - 18.34%				$	45,846
(Cost: $44,051)
SHORT-TERM SECURITIES
Commercial Paper - 2.72%
Clorox Co.,
0.220%, 10-13-09		$	2,000		2,000
Coca-Cola Company (The),
0.140%, 11-9-09			3,000		2,999
Sara Lee Corporation,
0.100%, 10-1-09			1,810		1,810
					6,809
Master Note - 0.47%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (F)			1,174		1,174
TOTAL SHORT-TERM SECURITIES - 3.19%				$	7,983
(Cost: $7,983)
TOTAL INVESTMENT SECURITIES - 100.94%				$	252,349
(Cost: $230,238)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.94%)					(2,356	)
NET ASSETS - 100.00%				$	249,993

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2009:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date	Unrealized Appreciation		Unrealized Depreciation
Buy	Euro	UBS Securities LLC		940	11-16-09		$155		$ --

(A)Listed on an exchange outside the United States.

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers.  These securities have been determined to be liquid under guidelines established by the Board of Trustees.  At September 30, 2009, the total value of these securities amounted to $6,910 or 2.76% of net assets.

(C)No dividends were paid during the preceding 12 months.

(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, 2009, the total value of these securities amounted to $950 or 0.38% of net assets.

(E)Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, CHF - Swiss Franc, EUR - Euro, GBP - British Pound, KRW - South Korean Won, MYR - Malaysian Ringgit, NZD - New Zealand Dollar, PLN - Polish Zloty and SEK - Swedish Krona).

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Other Government Securities	18.34%
Industrials	12.56%
Consumer Staples	11.94%
Financials	10.85%
Consumer Discretionary	9.25%
Information Technology	9.07%
Telecommunication Services	8.08%
Energy	7.05%
Materials	4.84%
Health Care	3.84%
Utilities	1.93%
Other+	2.25%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	230,238
Gross unrealized appreciation		27,561
Gross unrealized depreciation		(5,450	)
Net unrealized appreciation	$	22,111

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Core Equity Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	96.03%
Industrials	16.26%
Financials	15.81%
Information Technology	12.00%
Energy	11.77%
Consumer Staples	10.06%
Telecommunication Services	8.37%
Consumer Discretionary	8.12%
Health Care	5.67%
Materials	5.51%
Utilities	2.46%
Cash and Cash Equivalents	3.97%

Lipper Rankings

Category: Lipper International       Large-Cap Core	Rank	Percentile
1 Year	4/364	2
3 Year	2/303	1
5 Year	2/263	1
10 Year	11/142	8

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

Europe	56.70%
United Kingdom	18.19%
France	15.30%
Germany	9.68%
Switzerland	5.19%
Other Europe(1)	8.34%
Pacific Basin	35.88%
Japan	13.70%
Australia	8.21%
Hong Kong	4.43%
China	3.98%
Other Pacific Basin(2)	5.56%
North America(3)	3.45%
Cash and Cash Equivalents	3.97%

(1)Includes 1.15% Denmark, 1.55% Finland, 2.79% Italy and 2.85% Netherlands.

(2)Includes 1.41% India, 2.53% Singapore and 1.62% Taiwan.

(3)Includes 3.45% Canada.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Sanofi-Aventis	France	Health Care	Pharmaceuticals
TOTAL S.A.	France	Energy	Integrated Oil & Gas
Vivendi Universal	France	Consumer       Discretionary	Movies & Entertainment
BP p.l.c.	United Kingdom	Energy	Integrated Oil & Gas
Vodafone Group Plc	United Kingdom	Telecommunication       Services	Wireless Telecommunication       Service
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
Unilever PLC	United Kingdom	Consumer Staples	Packaged Foods & Meats
Roche Holdings AG,       Genussschein	Switzerland	Health Care	Pharmaceuticals
Telstra Corporation Limited	Australia	Telecommunication       Services	Integrated Telecommunication       Services
Foster's Group Limited	Australia	Consumer Staples	Brewers

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Core Equity Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,506.30	1.70%	$	10.65
Class B	$1,000	$1,499.40	2.72%	$	17.00
Class C	$1,000	$1,502.30	2.30%	$	14.39
Class E	$1,000	$1,506.80	1.52%	$	9.53
Class I	$1,000	$1,511.50	1.13%	$	7.16
Class Y	$1,000	$1,509.90	1.38%	$	8.66
Based on 5% Return(2)
Class A	$1,000	$1,016.53	1.70%	$	8.57
Class B	$1,000	$1,011.46	2.72%	$	13.68
Class C	$1,000	$1,013.55	2.30%	$	11.58
Class E	$1,000	$1,017.43	1.52%	$	7.67
Class I	$1,000	$1,019.39	1.13%	$	5.76
Class Y	$1,000	$1,018.14	1.38%	$	6.96

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Core Equity Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares			Value
Australia - 8.21%
Amcor Limited (A)		1,115		$	5,388
Crown Limited (A)		1,101			8,674
Foster's Group Limited (A)		1,981			9,698
Telstra Corporation Limited (A)(B)		146			421
Telstra Corporation Limited (A)		3,454			9,965
Toll Holdings Limited (A)		918			6,911
					41,057
Canada - 3.45%
Canadian Natural Resources Limited (A)		83			5,618
Research In Motion Limited (C)		83			5,620
Shoppers Drug Mart Corporation (A)		147			6,048
					17,286
China - 3.98%
China Oilfield Services Limited (A)		5,826			5,435
Industrial and Commercial Bank of China (Asia) Limited (A)		2,730			2,057
Industrial and Commercial Bank of China Limited, H Shares (A)(B)		7,027			5,296
Shanda Interactive Entertainment Limited, ADR (C)		138			7,090
					19,878
Denmark - 1.15%
Carlsberg Group (A)		79			5,740
Finland - 1.55%
Nokia OYJ (A)		526			7,732
France - 15.30%
ALSTOM (A)		127			9,292
AXA S.A. (A)		280			7,579
Sanofi-Aventis (A)		248			18,185
Societe Generale (A)		82			6,625
Technip-Coflexip (A)		109			6,947
Thales (A)		110			5,471
TOTAL S.A. (A)		190			11,265
Vivendi Universal (A)		360			11,154
					76,518
Germany - 8.00%
Bayer Aktiengesellschaft (A)		98			6,856
Deutsche Boerse AG (A)		87			7,179
Deutsche Lufthansa Aktiengesellschaft (A)		431			7,664
RWE Aktiengesellschaft (A)		63			5,882
SAP Aktiengesellschaft (A)		123			6,057
Symrise AG (A)		334			6,378
					40,016
Hong Kong - 4.43%
Cheung Kong (Holdings) Limited (A)		611			7,753
CNOOC Limited (A)		4,853			6,525
Metallurgical Corporation of China Ltd., H Shares (A)(C)(D)		4,050			2,749
Renhe Commercial Holdings Company Limited (A)		9,718			1,956
Renhe Commercial Holdings Company Limited (A)(B)	15,738				3,168
					22,151
India - 1.41%
Tata Consultancy Services Limited (A)		547			7,058
Italy - 2.79%
Fondiaria-SAI S.p.A. (A)		334			7,029
Tenaris S.A. (A)		388			6,910
					13,939
Japan - 13.70%
East Japan Railway Company (A)		99			7,089
Hitachi Construction Machinery Co., Ltd. (A)		320			6,874
JTEKT Corporation (A)		529			6,167
KONAMI CORPORATION (A)		339			6,917
Mitsubishi Electric Corporation (A)		1,090			8,257
Mitsui O.S.K. Lines, Ltd. (A)		922			5,464
Nintendo Co., Ltd. (A)		23			5,816
Nissin Kogyo Co., Ltd. (A)		610			8,895
NTT DoCoMo, Inc. (A)		4			6,705
Sumitomo Mitsui Financial Group, Inc. (A)		181			6,301
					68,485
Netherlands - 2.85%
Fugro N.V. (A)		95			5,494
Koninklijke KPN N.V. (A)		527			8,748
					14,242
Singapore - 2.53%
DBS Group Holdings Ltd (A)		749			7,061
Singapore Telecommunications Limited (A)		2,413			5,567
					12,628
Switzerland - 5.19%
Nestle S.A., Registered Shares (A)		241			10,278
Roche Holdings AG, Genussschein (A)		63			10,141
Swiss Reinsurance Company, Registered Shares (A)		––	*		––	*
TEMENOS Group AG (A)(C)		236			5,531
					25,950
Taiwan - 1.62%
Taiwan Semiconductor Manufacturing Company Ltd., ADR		738			8,091
United Kingdom - 18.19%
BAE Systems plc (A)		1,644			9,178
Barclays PLC (A)(C)		1,544			9,127
BP p.l.c. (A)		1,204			10,640
Home Retail Group plc (A)		1,289			5,601
Informa plc (A)		1,256			6,323
International Power plc (A)		1,390			6,421
Prudential plc (A)		814			7,829
Serco Group plc (A)		740			5,972
Tanfield Group PLC (A)(C)		447			355
Unilever PLC (A)		358			10,166
Vodafone Group Plc (A)		4,672			10,469
Xstrata plc (A)		605			8,918
					90,999
TOTAL COMMON STOCKS - 94.35%				$	471,770
(Cost: $425,487)

PREFERRED STOCKS - 1.68%
Germany
Henkel AG & Co. KGaA (A)			195	$	8,375
(Cost: $6,964)
SHORT-TERM SECURITIES	Principal
Commercial Paper - 3.35%
Clorox Co.,
0.250%, 10-27-09		$	9,023		9,022
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
0.320%, 10-22-09			4,000		3,999
Sara Lee Corporation,
0.100%, 10-1-09			3,726		3,726
					16,747
Master Note - 0.40%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (E)			2,016		2,016
TOTAL SHORT-TERM SECURITIES - 3.75%				$	18,763
(Cost: $18,763)
TOTAL INVESTMENT SECURITIES - 99.78%				$	498,908
(Cost: $451,214)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.22%					1,076
NET ASSETS - 100.00%				$	499,984

Notes to Schedule of Investments

*Not shown due to rounding.

(A)Listed on an exchange outside the United States.

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2009, the total value of these securities amounted to $8,885 or 1.78% of net assets.

(C)No dividends were paid during the preceding 12 months.

(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, 2009, the total value of these securities amounted to $2,749 or 0.55% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Industrials	16.26%
Financials	15.81%
Information Technology	12.00%
Energy	11.77%
Consumer Staples	10.06%
Telecommunication Services	8.37%
Consumer Discretionary	8.12%
Health Care	5.67%
Materials	5.51%
Utilities	2.46%
Other+	3.97%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	460,514
Gross unrealized appreciation		55,068
Gross unrealized depreciation		(16,674	)
Net unrealized appreciation	$	38,394

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy International Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	95.84%
Industrials	16.55%
Consumer Staples	15.77%
Financials	15.27%
Information Technology	12.27%
Energy	8.54%
Materials	7.15%
Telecommunication Services	6.98%
Consumer Discretionary	5.57%
Health Care	4.95%
Utilities	2.79%
Cash and Cash Equivalents	4.16%

Lipper Rankings

Category: Lipper International       Large-Cap Growth	Rank	Percentile
1 Year	87/160	55
3 Year	44/127	35
5 Year	35/89	39
10 Year	42/52	80

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

Europe	63.49%
United Kingdom	24.48%
France	8.72%
Switzerland	8.66%
Germany	7.17%
Italy	6.15%
Netherlands	4.12%
Other Europe(1)	4.19%
Pacific Basin	25.11%
Japan	10.55%
China	7.32%
Australia	4.03%
Other Pacific Basin(2)	3.21%
North America(3)	4.71%
South America(4)	2.53%
Cash and Cash Equivalents	4.16%

(1)Includes 1.78% Belgium, 0.97% Denmark and 1.44% Spain.

(2)Includes 3.21% Hong Kong.

(3)Includes 3.41% Canada and 1.30% United States.

(4)Includes 2.53% Brazil.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Nestle S.A., Registered Shares	Switzerland	Consumer Staples	Packaged Foods & Meats
VINCI	France	Industrials	Construction & Engineering
British American Tobacco p.l.c.	United Kingdom	Consumer Staples	Tobacco
Roche Holdings AG,       Genussschein	Switzerland	Health Care	Pharmaceuticals
Barclays PLC	United Kingdom	Financials	Diversified Banks
Reckitt Benckiser Group plc	United Kingdom	Consumer Staples	Household Products
Vodafone Group Plc	United Kingdom	Telecommunication       Services	Wireless Telecommunication       Service
Brambles Limited	Australia	Industrials	Diversified Support Services
Prudential plc	United Kingdom	Financials	Life & Health Insurance
Eni S.p.A.	Italy	Energy	Integrated Oil & Gas

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy International Growth Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,392.30	1.70%	$	10.17
Class B	$1,000	$1,383.70	2.83%	$	16.92
Class C	$1,000	$1,384.60	2.76%	$	16.45
Class E**	$1,000	$1,393.90	1.42%	$	8.50
Class I	$1,000	$1,395.40	1.23%	$	7.43
Class Y	$1,000	$1,394.30	1.42%	$	8.50
Based on 5% Return(2)
Class A	$1,000	$1,016.56	1.70%	$	8.57
Class B	$1,000	$1,010.87	2.83%	$	14.28
Class C	$1,000	$1,011.25	2.76%	$	13.88
Class E**	$1,000	$1,017.97	1.42%	$	7.16
Class I	$1,000	$1,018.90	1.23%	$	6.26
Class Y	$1,000	$1,017.97	1.42%	$	7.16

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy International Growth Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia - 4.03%
Brambles Limited (A)		587	$	4,185
Telstra Corporation Limited (A)		1,003		2,894
Telstra Corporation Limited (A)(B)		113		326
				7,405
Belgium - 1.78%
InBev NV (A)		72		3,272
Brazil - 2.53%
Cia Brasileira de Meios de Pagamento (A)(B)		122		1,213
Petroleo Brasileiro S.A. - Petrobras, ADR		75		3,435
				4,648
Canada - 3.41%
Research In Motion Limited (C)		42		2,813
Shoppers Drug Mart Corporation (A)(B)		34		1,401
Shoppers Drug Mart Corporation (A)		50		2,052
				6,266
China - 7.32%
China Construction Bank Corporation (A)(B)		2,006		1,602
China Life Insurance Company Limited, ADR		46		3,004
China South Locomotive & Rolling Stock Corporation Limited,       H Shares (A)		1,015		591
China South Locomotive & Rolling Stock Corporation Limited,       H Shares (A)(B)		1,590		925
Industrial and Commercial Bank of China Limited,       H Shares (A)(B)		3,334		2,512
Shanda Interactive Entertainment Limited, ADR (C)		31		1,601
Tencent Holdings Limited (A)		197		3,203
				13,438
Denmark - 0.97%
Carlsberg Group (A)		25		1,787
France - 8.72%
ALSTOM (A)		26		1,916
Compagnie Generale des Etablissements Michelin, Class B (A)		23		1,767
Pinault-Printemps-Redoute SA (A)		26		3,311
Technip-Coflexip (A)		44		2,831
VINCI (A)		109		6,192
				16,017
Germany - 4.69%
Bayer Aktiengesellschaft (A)		35		2,460
Deutsche Boerse AG (A)		17		1,373
SAP Aktiengesellschaft (A)		52		2,556
Vossloh AG (A)		20		2,233
				8,622
Hong Kong - 3.21%
Cheung Kong (Holdings) Limited (A)		162		2,056
Esprit Holdings Limited (A)		228		1,532
Metallurgical Corporation of China Ltd., H Shares (A)(C)(D)		1,533		1,040
Renhe Commercial Holdings Company Limited (A)(B)		6,302		1,269
				5,897
Italy - 6.15%
Banca Intesa S.p.A. (A)		425		1,878
Eni S.p.A. (A)		149		3,733
Saipem S.p.A. (A)		91		2,727
Tenaris S.A. (A)		166		2,958
				11,296
Japan - 10.55%
Canon Inc. (A)		33		1,334
East Japan Railway Company (A)		33		2,339
KONAMI CORPORATION (A)		127		2,595
Mitsubishi Electric Corporation (A)		404		3,060
Nissin Kogyo Co., Ltd. (A)		75		1,088
Shin-Etsu Chemical Co., Ltd. (A)		51		3,117
Sumitomo Mitsui Financial Group, Inc. (A)		79		2,741
Tokyo Electron Limited (A)		48		3,077
				19,351
Netherlands - 4.12%
ASML Holding N.V., Ordinary Shares (A)		30		887
Heineken N.V. (A)		66		3,054
Koninklijke KPN N.V. (A)		160		2,656
QIAGEN N.V. (A)(C)		46		975
				7,572
Spain - 1.44%
Telefonica, S.A. (A)		96		2,651
Switzerland - 8.66%
Nestle S.A., Registered Shares (A)		146		6,222
Roche Holdings AG, Genussschein (A)		28		4,603
TEMENOS Group AG (A)(C)		130		3,056
UBS AG (A)(B)(C)		18		326
UBS AG (A)		93		1,695
				15,902
United Kingdom - 24.48%
BAE Systems plc (A)		512		2,860
Barclays PLC (A)(C)		775		4,583
British American Tobacco p.l.c. (A)		179		5,626
Capita Group Plc (The) (A)		158		1,825
IG Group Holdings plc (A)(B)		272		1,448
Informa plc (A)		507		2,551
International Power plc (A)		572		2,640
National Grid plc (A)		256		2,473
Prudential plc (A)		393		3,774
Reckitt Benckiser Group plc (A)		93		4,540
Rio Tinto plc (A)		36		1,547
Serco Group plc (A)		395		3,187
Vodafone Group Plc (A)		1,922		4,306
Xstrata plc (A)		243		3,588
				44,948
United States - 1.30%
Monsanto Company		31		2,392
TOTAL COMMON STOCKS - 93.36%			$	171,464
(Cost: $151,648)

PREFERRED STOCKS - 2.48%
Germany
Fresenius AG (A)			60		3,499
Henkel AG & Co. KGaA (A)			25		1,055
(Cost: $4,157)				$	4,554
SHORT-TERM SECURITIES	Principal
Commercial Paper - 2.49%
Johnson & Johnson,
0.020%, 10-1-09		$	4,583		4,583
Master Note - 0.82%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (E)			1,505		1,505
TOTAL SHORT-TERM SECURITIES - 3.31%				$	6,088
(Cost: $6,088)
TOTAL INVESTMENT SECURITIES - 99.15%				$	182,106
(Cost: $161,893)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.85%					1,552
NET ASSETS - 100.00%				$	183,658

Notes to Schedule of Investments

(A)Listed on an exchange outside the United States.

(B)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers.  These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2009, the total value of these securities amounted to $11,022 or 6.00% of net assets.

(C)No dividends were paid during the preceding 12 months.

(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, 2009, the total value of these securities amounted to $1,040 or 0.57% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Industrials	16.55%
Consumer Staples	15.77%
Financials	15.27%
Information Technology	12.27%
Energy	8.54%
Materials	7.15%
Telecommunication Services	6.98%
Consumer Discretionary	5.57%
Health Care	4.95%
Utilities	2.79%
Other+	4.16%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	162,214
Gross unrealized appreciation		30,311
Gross unrealized depreciation		(10,419	)
Net unrealized appreciation	$	19,892

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Pacific Opportunities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	98.90%
Financials	36.25%
Industrials	20.07%
Information Technology	14.91%
Materials	5.44%
Utilities	5.17%
Consumer Staples	4.30%
Energy	4.29%
Consumer Discretionary	3.45%
Telecommunication Services	3.37%
Health Care	1.65%
Cash and Cash Equivalents	1.10%

Lipper Rankings

Category: Lipper Pacific Ex Japan Funds	Rank	Percentile
1 Year	10/49	20
3 Year	13/39	33
5 Year	9/37	24
10 Year	13/30	42

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

Pacific Basin	92.74%
China	28.64%
South Korea	16.05%
Taiwan	14.67%
Hong Kong	12.56%
India	10.33%
Singapore	5.00%
Other Pacific Basin(1)	5.49%
Europe	3.51%
United Kingdom	3.51%
Bahamas/Caribbean(2)	1.63%
North America(3)	1.02%
Cash and Cash Equivalents	1.10%

(1)Includes 2.00% Indonesia, 2.32% Malaysia, 0.83% Thailand and 0.34% Vietnam.

(2)Includes 1.63% Cayman Islands.

(3)Includes 1.02% United States.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Industrial and Commercial Bank       of China Limited, H Shares	China	Financials	Diversified Banks
Metallurgical Corporation of       China Ltd., H Shares	Hong Kong	Industrials	Construction &       Engineering
China Life Insurance Company       Limited, H Shares	China	Financials	Life & Health Insurance
KB Financial Group Inc.	South Korea	Financials	Diversified Banks
Axis Bank Limited	India	Financials	Diversified Banks
Samsung Electronics Co., Ltd.	South Korea	Information       Technology	Semiconductors
Hon Hai Precision Ind. Co., Ltd.	Taiwan	Information       Technology	Electronic Manufacturing       Services
Acer Incorporated	Taiwan	Information       Technology	Computer Hardware
HSBC Holdings plc	United Kingdom	Financials	Diversified Banks
Taiwan Cement Corporation	Taiwan	Materials	Construction Materials

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Pacific Opportunities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,579.00	1.92%	$	12.38
Class B	$1,000	$1,569.60	3.06%	$	19.66
Class C	$1,000	$1,574.30	2.65%	$	17.12
Class E**	$1,000	$1,584.30	1.44%	$	9.30
Class I	$1,000	$1,584.40	1.30%	$	8.40
Class Y	$1,000	$1,581.30	1.58%	$	10.20
Advisor Class**	$1,000	$1,584.50	1.27%	$	8.14
Based on 5% Return(2)
Class A	$1,000	$1,015.46	1.92%	$	9.67
Class B	$1,000	$1,009.73	3.06%	$	15.37
Class C	$1,000	$1,011.78	2.65%	$	13.38
Class E**	$1,000	$1,017.85	1.44%	$	7.26
Class I	$1,000	$1,018.53	1.30%	$	6.56
Class Y	$1,000	$1,017.17	1.58%	$	7.97
Advisor Class**	$1,000	$1,018.73	1.27%	$	6.36

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Pacific Opportunities Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Cayman Islands - 1.63%
BaWang International (Group) Holding Limited (A)(B)		16,102	$	6,545
Yingde Gases Group Company Limited (A)(B)(C)		4,000		3,613
				10,158
China - 28.64%
Beijing New Building Material Company Limited (B)(D)		2,000		4,707
China BlueChemical Ltd., H Shares (B)		8,028		4,351
China CITIC Bank Corporation Limited, H Shares (B)		18,239		12,026
China Distance Education Holdings Limited, DR (A)		125		900
China Life Insurance Company Limited, H Shares (B)		3,380		14,719
China Merchants Bank Co., Limited, H Shares (B)(D)		2,600		5,797
China Oilfield Services Limited (B)		5,696		5,314
China Resources Power Holdings Company Limited (B)		4,495		10,451
China South Locomotive & Rolling Stock Corporation Limited,       H Shares (B)(D)		9,629		5,603
China South Locomotive & Rolling Stock Corporation Limited,       H Shares (B)		6,000		3,492
China Yurun Food Group Limited (B)(D)		3,800		8,188
ChinaEdu Corporation, ADR (A)		142		993
CNinsure Inc., ADR		188		4,308
Ctrip.com International, Ltd. (A)		37		2,199
Enerchina Holdings Limited (A)(B)		85,077		1,251
Heng Tai Consumables Group Limited (A)(B)		32,063		1,944
Industrial and Commercial Bank of China (Asia) Limited (B)		12,454		9,385
Industrial and Commercial Bank of China Limited,       H Shares (B)(D)		21,666		16,327
KWG Property Holding Limited (B)		2,198		1,421
NetEase.com, Inc., ADR (A)		182		8,321
PetroChina Company Limited, H Shares (B)		10,288		11,629
REXLot Holdings Limited (A)(B)		52,975		4,716
Shanda Games Limited, ADR (A)		800		9,360
Shanda Interactive Entertainment Limited, ADR (A)		61		3,122
Shimao Property Holdings Limited (B)		3,447		5,843
Simcere Pharmaceutical Group, ADR (A)		254		2,021
Tencent Holdings Limited (B)		468		7,608
Yingli Green Energy Holding Company Limited, ADR (A)(E)		227		2,823
Zhuzhou CSR Times Electric Co., Ltd., H Shares (B)		5,537		9,631
				178,450
Hong Kong - 12.56%
Beijing Enterprises Holdings Limited (B)		1,538		8,146
C C Land Holdings Limited (B)		5,000		2,703
Cheung Kong (Holdings) Limited (B)		576		7,310
China Metal Recycling (Holdings) Limited (A)(B)(D)		4,800		5,314
China Resources Cement Holdings Limited (A)(B)(C)		12,000		6,039
Fosun International Limited (B)		13,000		9,075
Metallurgical Corporation of China Ltd., H Shares (A)(B)(C)		22,000		14,931
Pan Asia Environmental Protection Group Limited (B)(D)		13,372		2,053
Renhe Commercial Holdings Company Limited (B)		5,870		1,182
Renhe Commercial Holdings Company Limited (B)(D)		33,334		6,709
Sinopharm Group Co. Ltd., H Shares (A)(B)		364		922
Sinopharm Group Co. Ltd., H Shares (A)(B)(D)		2,900		7,350
Want Want China Holdings Limited (B)		11,009		6,478
				78,212
India - 10.02%
Axis Bank Limited (B)		660		13,521
Bajaj Hindusthan Limited (B)		450		1,724
Bajaj Hindusthan Limited (B)(D)		500		1,915
Bharti Airtel Limited (B)		871		7,961
CESC Limited (B)(D)		450		3,642
Indiabulls Real Estate Limited (A)(B)		1,200		6,780
Nagarjuna Construction Company Limited (B)		3,208		9,989
Reliance Energy Limited (B)		320		8,124
TATA POWER COMPANY LIMITED (THE) (B)		318		8,714
				62,370
Indonesia - 2.00%
Perusahaan Perseroan (Persero) PT Telekomunikasi       Indonesia Tbk (B)		142		5,052
PT Bank Rakyat Indonesia (B)		9,513		7,382
				12,434
Malaysia - 2.32%
Gamuda Berhad (B)		6,355		5,820
Genting Berhad (B)		2,068		4,099
Sime Darby Berhad (B)		1,848		4,539
				14,458
Singapore - 5.00%
Cambridge Industrial Trust (B)(D)		9,500		3,069
DBS Group Holdings Ltd (B)		670		6,317
Keppel Corporation Limited (B)		1,576		9,062
SembCorp Industries Ltd (B)		2,647		6,371
United Overseas Bank Limited (B)		530		6,313
				31,132
South Korea - 16.05%
Daelim Industrial Co., Ltd. (B)		126		7,726
ForHuman Co., Ltd. (A)(B)		201		1,839
Hyundai Motor Company (B)		113		10,678
KB Financial Group Inc. (B)		285		14,654
KCC Corporation (B)		14		4,308
Korea Investment Holdings Co., Ltd. (B)		215		6,401
Kyeryong Construction Industrial Co. Ltd (B)		103		1,875
LG Corp. (B)		165		11,045
NHN Corporation (A)(B)		65		9,545
Samsung C&T Corporation (B)		137		6,308
Samsung Electronics Co., Ltd. (B)		19		13,046
SK Corporation (B)		77		7,373
SK Telecom Co., Ltd. (B)		34		5,203
				100,001
Taiwan - 14.67%
Acer Incorporated (B)		4,906		12,513
Asustek Computer Inc. (B)		3,656		6,278
First Commercial Bank Co., Ltd. (B)		11,846		7,388
Fubon Financial Holding Co., Ltd. (B)		9,723		10,979
Hon Hai Precision Ind. Co., Ltd. (B)		3,160		12,682
Shin Kong Financial Holdings, Co., Ltd (A)(B)		22,500		8,959
Taiwan Cement Corporation (B)		10,752		12,074
Taiwan Semiconductor Manufacturing Company Ltd. (B)		4,254		8,535
Yuanta Financial Holdings Co., Ltd. (B)		16,150		11,955
				91,363
Thailand - 0.83%
Advanced Info Service Public Company Limited (B)		962		2,713
PTT Public Company Limited (B)		315		2,451
				5,164
United Kingdom - 3.51%
HSBC Holdings plc (B)		1,071		12,424
Standard Chartered PLC (B)		384		9,456
				21,880
TOTAL COMMON STOCKS - 97.23%			$	605,622
(Cost: $515,568)
INVESTMENT FUNDS
India - 0.31%
iPath MSCI India Index ETN (A)		33		1,932
United States - 1.02%
iShares MSCI Taiwan Index Fund		516		6,343
Vietnam - 0.34%
Vietnam Azalea Fund Limited (A)(F)(G)		500		2,135
TOTAL INVESTMENT FUNDS - 1.67%			$	10,410
(Cost: $9,740)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 1.10%
PACCAR Financial Corp.,
0.150%, 10-9-09	$	6,800		6,800
Master Note - 0.46%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (H)		2,893		2,893
TOTAL SHORT-TERM SECURITIES - 1.56%			$	9,693
(Cost: $9,693)
TOTAL INVESTMENT SECURITIES - 100.46%			$	625,725
(Cost: $535,001)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.46%)				(2,848	)
NET ASSETS - 100.00%			$	622,877

Notes to Schedule of Investments

(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, 2009, the total value of these securities amounted to $24,583 or 3.95% of net assets.

(D)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. At September 30, 2009, the total value of these securities amounted to $70,674 or 11.35% of net assets.

(E)Securities serve as cover or collateral for the following written options outstanding at September 30, 2009:

Underlying Security	Counterparty	Contracts Subject to Call	Expiration Month	Exercise Price	Premium Received			Market Value
Yingli Green Energy Holding     Company Limited, ADR	UBS Securities     LLC	2	December 2009	$17.50		$	203		$(113)
Underlying Security	Counterparty	Contracts Subject to Put	Expiration Month	Exercise Price	Premium Received			Market Value
Yingli Green Energy Holding     Company Limited, ADR	UBS Securities     LLC	2	December 2009	$9.00		$	93		$(108)

(F) Illiquid restricted security.  At September 30, 2009, the following restricted security was owned:

Security	Acquisition Date(s)	Shares	Cost	Market Value
Vietnam Azalea Fund Limited	6-14-07 to 1-28-09	500	$3,304		$2,135

The total value of this security represented approximately 0.34% of net assets at September 30, 2009.

(G)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, 2009.

(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Financials	36.25%
Industrials	20.07%
Information Technology	14.91%
Materials	5.44%
Utilities	5.17%
Consumer Staples	4.30%
Energy	4.29%
Consumer Discretionary	3.45%
Telecommunication Services	3.37%
Health Care	1.65%
Other+	1.10%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	539,485
Gross unrealized appreciation		136,550
Gross unrealized depreciation		(50,310	)
Net unrealized appreciation	$	86,240

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Balanced Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	72.72%
Information Technology	14.26%
Financials	13.69%
Consumer Staples	12.94%
Health Care	9.48%
Consumer Discretionary	8.91%
Industrials	5.20%
Energy	4.65%
Materials	1.95%
Utilities	1.64%
Bonds	25.43%
Corporate Debt Securities	17.40%
United States Government and Government             Agency Obligations	8.03%
Cash and Cash Equivalents	1.85%

Bond Portfolio Characteristics

Average maturity	3.7 years
Effective duration	3.0 years
Weighted average bond rating	AA-

Top 10 Equity Holdings

Company	Sector
JPMorgan Chase & Co.	Financials
Cisco Systems, Inc.	Information Technology
Colgate-Palmolive Company	Consumer Staples
Hewlett-Packard Company	Information Technology
Apple Inc.	Information Technology
PepsiCo, Inc.	Consumer Staples
Microchip Technology Incorporated	Information Technology
Gilead Sciences, Inc.	Health Care
Emerson Electric Co.	Industrials
DENTSPLY International Inc.	Health Care

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

Lipper Rankings

Category: Lipper Mixed-Asset Target       Allocation Growth Funds	Rank	Percentile
1 Year	358/665	54
3 Year	26/541	5
5 Year	36/442	9
10 Year	153/243	63

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

ILLUSTRATION OF FUND EXPENSES

Ivy Balanced Fund

(UNAUDITED)

For the Six Months Ended September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,189.10	1.41%	$	7.77
Class B	$1,000	$1,184.30	2.27%	$	12.45
Class C	$1,000	$1,186.20	2.01%	$	11.04
Class E**	$1,000	$1,190.50	1.13%	$	6.24
Class I	$1,000	$1,192.90	1.00%	$	5.48
Class Y	$1,000	$1,189.90	1.25%	$	6.90
Based on 5% Return(2)
Class A	$1,000	$1,018.00	1.41%	$	7.16
Class B	$1,000	$1,013.68	2.27%	$	11.48
Class C	$1,000	$1,014.98	2.01%	$	10.18
Class E**	$1,000	$1,019.38	1.13%	$	5.76
Class I	$1,000	$1,020.08	1.00%	$	5.05
Class Y	$1,000	$1,018.80	1.25%	$	6.36

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Air Freight & Logistics - 0.94%
Expeditors International of Washington, Inc.		43	$	1,522
Asset Management & Custody Banks - 2.50%
Blackstone Group L.P. (The)		55		775
Northern Trust Corporation		56		3,257
				4,032
Auto Parts & Equipment - 0.94%
BorgWarner Inc.		50		1,522
Automobile Manufacturers - 0.63%
Ford Motor Company (A)		141		1,018
Biotechnology - 2.21%
Gilead Sciences, Inc. (A)		77		3,563
Casinos & Gaming - 1.37%
Wynn Resorts, Limited (A)		31		2,212
Communications Equipment - 5.35%
Cisco Systems, Inc. (A)		177		4,154
Nokia Corporation, Series A, ADR		107		1,560
QUALCOMM Incorporated		66		2,951
				8,665
Computer Hardware - 4.91%
Apple Inc. (A)		21		3,911
Hewlett-Packard Company		85		4,018
				7,929
Data Processing & Outsourced Services - 0.39%
Paychex, Inc.		21		622
Department Stores - 2.10%
Kohl's Corporation (A)		22		1,278
Macy's Inc.		115		2,101
				3,379
Distillers & Vintners - 1.31%
Brown-Forman Corporation, Class B		44		2,119
Diversified Chemicals - 1.13%
Dow Chemical Company (The)		70		1,812
Electric Utilities - 1.64%
Exelon Corporation		53		2,645
Electrical Components & Equipment - 2.14%
Emerson Electric Co.		86		3,455
Fertilizers & Agricultural Chemicals - 0.82%
Monsanto Company		17		1,331
Footwear - 1.28%
NIKE, Inc., Class B		32		2,064
General Merchandise Stores - 0.92%
Target Corporation		32		1,494
Health Care Equipment - 0.43%
Zimmer Holdings, Inc. (A)		13		700
Health Care Supplies - 2.02%
DENTSPLY International Inc.		94		3,261
Home Improvement Retail - 1.67%
Home Depot, Inc. (The)		101		2,701
Household Products - 2.55%
Colgate-Palmolive Company		54		4,119
Industrial Conglomerates - 0.91%
Textron Inc.		78		1,471
Industrial Machinery - 1.21%
Illinois Tool Works Inc.		46		1,956
Integrated Oil & Gas - 1.24%
Exxon Mobil Corporation		29		2,003
Investment Banking & Brokerage - 0.64%
Lazard Group LLC		25		1,037
Oil & Gas Equipment & Services - 2.95%
Halliburton Company		59		1,608
Schlumberger Limited		35		2,063
Weatherford International Ltd. (A)		53		1,107
				4,778
Oil & Gas Exploration & Production - 0.46%
XTO Energy Inc.		18		735
Other Diversified Financial Services - 4.32%
Bank of America Corporation		155		2,628
JPMorgan Chase & Co.		99		4,346
				6,974
Packaged Foods & Meats - 1.46%
Hershey Foods Corporation		61		2,363
Personal Products - 1.12%
Estee Lauder Companies Inc. (The), Class A		49		1,802
Pharmaceuticals - 4.82%
Abbott Laboratories		63		3,096
Allergan, Inc.		40		2,248
Johnson & Johnson		40		2,442
				7,786
Property & Casualty Insurance - 3.45%
Berkshire Hathaway Inc., Class B (A)		1		2,755
Travelers Companies, Inc. (The)		57		2,821
				5,576
Regional Banks - 1.58%
PNC Financial Services Group, Inc. (The)		53		2,556
Semiconductors - 2.22%
Microchip Technology Incorporated		135		3,583
Soft Drinks - 3.65%
Coca-Cola Company (The)		41		2,175
PepsiCo, Inc.		63		3,719
				5,894
Specialized Finance - 1.20%
CME Group Inc.		6		1,942
Systems Software - 1.39%
Microsoft Corporation		87		2,246
Tobacco - 2.85%
Lorillard, Inc.		31		2,274
Philip Morris International Inc.		48		2,334
				4,608
TOTAL COMMON STOCKS - 72.72%			$	117,475
(Cost: $94,268)

CORPORATE DEBT SECURITIES	Principal
Agricultural Products - 0.51%
Archer-Daniels-Midland Company,
7.000%, 2-1-31		$  700	816
Airlines - 0.33%
Southwest Airlines Co.,
6.500%, 3-1-12		500	526
Banking - 1.29%
JPMorgan Chase & Co.,
4.650%, 6-1-14		1,000	1,043
U.S. BANCORP,
4.200%, 5-15-14		1,000	1,045
			2,088
Beverage / Bottling - 0.66%
Anheuser-Busch InBev Worldwide Inc.,
5.375%, 11-15-14 (B)		1,000	1,068
Communications Equipment - 0.66%
Cisco Systems, Inc.,
5.250%, 2-22-11		1,000	1,054
Conglomerate / Diversified Mfg - 0.09%
Textron Inc.,
6.200%, 3-15-15		150	151
Construction & Farm Machinery & Heavy Trucks - 0.33%
John Deere Capital Corporation,
5.250%, 10-1-12		500	541
Consumer Finance - 0.13%
American Express Credit Corporation,
5.125%, 8-25-14		200	207
Department Stores - 0.65%
Kohl's Corporation,
6.300%, 3-1-11		1,000	1,042

Distillers & Vintners - 0.63%
Diageo Capital plc,
4.375%, 5-3-10	1,000		1,022
Diversified Banks - 0.16%
Wells Fargo Bank, N.A.,
7.550%, 6-21-10	250		262
Electric - 0.36%
Hydro-Quebec,
8.000%, 2-1-13	500		577
Electric Utilities - 0.68%
Exelon Corporation,
6.950%, 6-15-11	1,000		1,100
Food Processors - 0.59%
Cargill, Inc.,
6.375%, 6-1-12 (B)	400		435
Kellogg Company,
4.450%, 5-30-16	500		524
			959
Food Retail - 0.67%
Kroger Co. (The),
6.200%, 6-15-12	1,000		1,091
Home Improvement Retail - 0.64%
Home Depot, Inc. (The),
5.200%, 3-1-11	1,000		1,039
Industrial Gases - 0.66%
Praxair, Inc.,
4.375%, 3-31-14	1,000		1,060
Industrial Machinery - 0.68%
Illinois Tool Works Inc.,
5.150%, 4-1-14	1,000		1,086
Integrated Oil & Gas - 0.99%
Chevron Corporation,
3.450%, 3-3-12	500		521
ConocoPhillips,
4.750%, 2-1-14	1,000		1,077
			1,598
Integrated Telecommunication Services - 0.66%
AT&T Inc.,
4.850%, 2-15-14	1,000		1,064
Life Insurance - 0.31%
Prudential Financial, Inc.,
4.750%, 9-17-15	500		497
Metals / Mining - 1.25%
Newmont Mining Corporation, Convertible,
3.000%, 2-15-12	1,200		1,440
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14	500		590
			2,030
Movies & Entertainment - 0.32%
Viacom Inc.,
4.375%, 9-15-14	500		511
Oil & Gas - 0.16%
Cenovus Energy Inc.,
4.500%, 9-15-14 (C)	250		255
Oil & Gas Exploration & Production - 0.34%
XTO Energy Inc.,
7.500%, 4-15-12	500		554
Other Non-Agency REMIC/CMO - 0.00%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)	7		––	*
8.000%, 3-31-11 (C)	9		––	*
			––	*
Packaged Foods & Meats - 0.24%
Unilever Capital Corporation,
5.900%, 11-15-32	350		390
Pharmaceuticals - 1.97%
Abbott Laboratories,
3.750%, 3-15-11	1,000		1,036
Pfizer Inc.,
4.450%, 3-15-12	1,000		1,062
Roche Holdings Ltd,
5.000%, 3-1-14 (B)	1,000		1,082
			3,180
Property & Casualty Insurance - 0.65%
Berkshire Hathaway Finance Corporation,
4.000%, 4-15-12 (B)	1,000		1,048
Restaurants - 0.16%
YUM! Brands, Inc.,
4.250%, 9-15-15	250		256
Soft Drinks - 0.32%
PepsiCo, Inc.,
3.750%, 3-1-14	500		521
Systems Software - 0.31%
Microsoft Corporation,
2.950%, 6-1-14	500		507
TOTAL CORPORATE DEBT SECURITIES - 17.40%		$	28,100
(Cost: $26,260)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 1.88%
Mortgage-Backed Obligations
Federal National Mortgage Association Fixed       Rate Pass-Through Certificates:
6.000%, 9-1-17	242		261
5.000%, 1-1-18	276		294
5.500%, 4-1-18	113		121
6.500%, 10-1-28	110		119
6.500%, 2-1-29	20		22

7.000%, 5-1-31	21		24
7.500%, 5-1-31	35		39
7.000%, 7-1-31	32		36
7.000%, 9-1-31	44		49
7.000%, 9-1-31	32		36
7.000%, 11-1-31	104		115
6.500%, 2-1-32	122		133
7.000%, 2-1-32	114		127
7.000%, 2-1-32	69		76
6.500%, 3-1-32	28		31
7.000%, 3-1-32	74		82
7.000%, 6-1-32	24		27
7.000%, 7-1-32	129		143
6.500%, 8-1-32	54		59
6.000%, 9-1-32	460		489
6.500%, 9-1-32	107		116
5.500%, 5-1-33	209		219
5.500%, 5-1-33	114		120
5.500%, 5-1-33	90		95
5.500%, 6-1-33	195		205
(Cost: $2,889)		$	3,038
UNITED STATES GOVERNMENT OBLIGATIONS - 6.15%
Treasury Obligations
United States Treasury Bonds,
7.500%, 11-15-16	500		645
United States Treasury Notes:
4.000%, 3-15-10	800		814
4.250%, 10-15-10	2,000		2,079
3.875%, 2-15-13	1,250		1,343
3.625%, 5-15-13	750		800
4.250%, 8-15-13	900		982
4.250%, 8-15-15	3,000		3,268
(Cost: $9,225)		$	9,931
SHORT-TERM SECURITIES - 1.75%
Master Note
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (D)	2,829	$	2,829
(Cost: $2,829)
TOTAL INVESTMENT SECURITIES - 99.90%		$	161,373
(Cost: $135,471)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.10%			164
NET ASSETS - 100.00%		$	161,537

Notes to Schedule of Investments

*Not shown due to rounding.

(A)No dividends were paid during the preceding 12 months.

(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, 2009, the total value of these securities amounted to $3,633 or 2.25% 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, 2009, the total value of these securities amounted to $255 or 0.16% of net assets.

(D)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	135,479
Gross unrealized appreciation		26,220
Gross unrealized depreciation		(326	)
Net unrealized appreciation	$	25,894

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Global Natural Resources Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	89.63%
Energy	48.29%
Materials	23.98%
Industrials	10.03%
Utilities	5.25%
Financials	1.12%
Consumer Staples	0.61%
Information Technology	0.35%
Options	5.12%
Bonds	0.10%
Corporate Debt Securities	0.10%
Cash and Cash Equivalents	5.15%

Lipper Rankings

Category: Lipper Global Natural       Resources Funds	Rank	Percentile
1 Year	45/112	40
3 Year	53/73	72
5 Year	37/54	68
10 Year	19/33	56

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Country Weightings

North America	50.35%
United States	39.11%
Canada	11.24%
Europe	16.46%
Russia	7.05%
Other Europe(1)	9.41%
South America	10.22%
Brazil	10.03%
Other South America(2)	0.19%
Pacific Basin(3)	6.20%
Other(4)	4.73%
Bahamas/Caribbean(5)	1.77%
Cash and Cash Equivalents and Options	10.27%

(1)Includes 0.17% Cyprus, 1.42% Denmark, 1.32% Germany, 0.66% Kazakhstan, 0.09% Spain, 2.60% Switzerland and 3.15% United Kingdom.

(2)Includes 0.19% Chile.

(3)Includes 0.37% Australia, 2.64% China, 0.21% Hong Kong, 0.51% Indonesia, 0.89% Japan, 0.36% Singapore, 0.27% South Korea and 0.95% Thailand.

(4)Includes 1.57% Israel, 1.49% Panama and 1.67% South Africa.

(5)Includes 0.61% Bermuda and 1.16% Cayman Islands.

Top 10 Equity Holdings

Company	Country	Sector	Industry
Petrohawk Energy Corporation	United States	Energy	Oil & Gas Exploration &       Production
El Paso Corporation	United States	Energy	Oil & Gas Storage &       Transportation
Transocean Inc.	United States	Energy	Oil & Gas Drilling
Cameron International Corporation	United States	Energy	Oil & Gas Equipment &       Services
Randgold Resources Limited, ADR	United Kingdom	Materials	Gold
Potash Corporation of       Saskatchewan Inc.	Canada	Materials	Fertilizers & Agricultura       Chemicals
Open Joint Stock Company       Gazprom, ADR	Russia	Energy	Integrated Oil & Gas
Chesapeake Energy Corporation	United States	Energy	Oil & Gas Exploration &       Production
Halliburton Company	United States	Energy	Oil & Gas Equipment &       Services
Noble Corporation	Switzerland	Energy	Oil & Gas Drilling

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Global Natural Resources Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,544.20	1.52%	$	9.67
Class B	$1,000	$1,536.70	2.36%	$	14.97
Class C	$1,000	$1,538.50	2.19%	$	13.96
Class E	$1,000	$1,545.70	1.26%	$	8.02
Class I	$1,000	$1,546.40	1.06%	$	6.75
Class R	$1,000	$1,543.60	1.58%	$	10.05
Class Y	$1,000	$1,546.10	1.20%	$	7.64
Advisor Class**	$1,000	$1,548.90	0.93%	$	5.86
Based on 5% Return(2)
Class A	$1,000	$1,017.46	1.52%	$	7.67
Class B	$1,000	$1,013.24	2.36%	$	11.88
Class C	$1,000	$1,014.10	2.19%	$	11.08
Class E	$1,000	$1,018.73	1.26%	$	6.36
Class I	$1,000	$1,019.74	1.06%	$	5.35
Class R	$1,000	$1,017.13	1.58%	$	7.97
Class Y	$1,000	$1,019.05	1.20%	$	6.06
Advisor Class**	$1,000	$1,020.43	0.93%	$	4.65

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, 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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Global Natural Resources Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS		Shares		Value
Australia - 0.37%
Coal & Allied Industries Limited (A)			267	$	18,865
Bermuda - 0.61%
Bunge Limited			500		31,305
Brazil - 5.93%
Companhia de Saneamento de Minas Gerais (A)			4,196		70,789
Companhia Energetica de Minas Gerais - CEMIG, ADR			3,500		53,200
Gerdau S.A., ADR			2,250		30,240
Petroleo Brasileiro S.A.- Petrobras, ADR			500		19,655
Suzano Bahia Sul Papel E Celulose S.A. (A)(B)			8,950		94,724
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (A)			750		19,262
Votorantim Celulose e Papel S.A., ADR (B)			910		14,933
					302,803
Canada - 11.24%
Agrium Inc.			900		44,811
Anatolia Minerals Development Ltd. (A)(B)			2,382		5,429
Aquiline Resources Inc. (A)(B)			2,000		8,219
ARISE Technologies Corporation (A)(B)			4,804		1,526
Atacama Minerals Corp. (A)(B)(C)			5,880		2,471
Barrick Gold Corporation			3,500		132,650
Canadian Natural Resources Limited (A)			1,750		118,175
First Quantum Minerals Ltd. (A)			1,000		65,382
MGM Energy Corp. (A)(B)	12,543				1,582
Potash Corporation of Saskatchewan Inc.			1,750		158,094
Suncor Energy Inc. (A)			1,000		34,932
					573,271
Cayman Islands - 1.16%
China High Speed Transmission Equipment Group Co., Ltd. (A)	12,100				24,824
Subsea 7 Inc. (A)(B)			2,500		33,544
Yingde Gases Group Company Limited (A)(B)			945		862
					59,230
Chile - 0.19%
Sociedad Quimica y Minera de Chile S.A., ADR			250		9,783
China - 2.64%
Sino-Forest Corporation, Class A (A)(B)			2,610		41,223
Yingli Green Energy Holding Company Limited, ADR (B)(D)			7,500		93,450
					134,673
Cyprus - 0.17%
Buried Hill Energy (Cyprus) Public Company Limited (A)(B)(C)			3,630		8,712
Denmark - 1.42%
Vestas Wind Systems A/S (A)(B)			1,000		72,291
Germany - 1.32%
Phoenix Solar Aktiengesellschaft, Sulzemoos (A)			100		5,957
SGL Carbon SE (A)(B)			1,500		61,264
					67,221
Hong Kong - 0.21%
Guangdong Investment Limited (A)	22,000				10,844
Indonesia - 0.51%
PT Tambang Batubara Bukit Asam (Persero) Tbk (A)	18,000				26,260
Israel - 1.57%
Israel Chemicals Ltd. (A)			7,000		80,101
Japan - 0.89%
Mitsubishi Corporation (A)			2,250		45,519
Kazakhstan - 0.66%
Joint Stock Company KazMunaiGas Exploration Production,       GDR (A)			1,500		33,570
Panama - 1.49%
McDermott International, Inc. (B)			3,000		75,810
Russia - 7.05%
OAO LUKOIL, ADR			1,500		82,275
OJSC Oil Company Rosneft, GDR (A)			8,000		60,160
Open Joint Stock Company Gazprom, ADR (A)			6,750		156,938
Uralkali Group, GDR (A)			3,200		60,448
					359,821
Singapore - 0.36%
Straits Asia Resources Limited (A)	12,000				18,145
South Africa - 1.67%
Gold Fields Limited, ADR			4,500		62,010
Impala Platinum Holdings Limited (A)			1,000		23,296
					85,306
South Korea - 0.27%
LG Chem, Ltd. (A)			75		13,940
Spain - 0.09%
Gamesa Corporacion Tecnologica, S.A. (A)			200		4,481
Switzerland - 2.60%
Noble Corporation			3,500		132,860
Thailand - 0.95%
Banpu Public Company Limited (A)			2,875		37,003
Banpu Public Company Limited, Registered Shares (A)			885		11,337
					48,340
United Kingdom - 3.15%
Randgold Resources Limited, ADR			2,300		160,724
United States - 38.76%
Allegheny Technologies Incorporated (E)			1,250		43,738
Alpha Natural Resources, Inc. (B)			2,100		73,710
Cameron International Corporation (B)(E)			4,250		160,734
Celanese Corporation, Series A			1,000		25,000
Chesapeake Energy Corporation (E)			5,000		142,000
Comstock Resources, Inc. (B)			750		30,060
CONSOL Energy Inc.			1,300		58,643
Dril-Quip, Inc. (B)			1,000		49,640
El Paso Corporation	17,500				180,600
Energy Recovery, Inc. (B)			1,000		5,820
Energy Transfer Partners, L.P.			485		20,632
First Solar, Inc. (B)			300		45,858
Foster Wheeler Ltd. (B)			500		15,955
GrafTech International Ltd. (B)			4,000		58,800
Halliburton Company (E)			5,050		136,956
MarkWest Energy Partners, L.P.			500		11,815
Oceaneering International, Inc. (B)			1,250		70,938
Owens-Illinois, Inc. (B)			1,500		55,350
Peabody Energy Corporation (E)			2,000		74,440
Petrohawk Energy Corporation (B)			8,750		211,837
Plains Exploration and Production Company (B)			750		20,745
Questar Corporation			1,000		37,560
Range Resources Corporation			900		44,424
Regency Energy Partners LP			1,500		29,415
Rockwood Holdings, Inc. (B)			552		11,346
SandRidge Energy, Inc. (B)			2,250		29,160
Smith International, Inc. (E)			1,250		35,875
Superior Energy Services, Inc. (B)			2,750		61,930
Targa Resources Partners LP			750		14,070
Transocean Inc. (B)			1,900		162,507
Williams Companies, Inc. (The)			3,250		58,078
				1,977,636
TOTAL COMMON STOCKS - 85.28%				$	4,351,511
(Cost: $3,822,924)
PREFERRED STOCKS
Brazil - 4.00%
Bradespar S.A. (A)			3,120		57,236
CESP - Companhia Energetica de Sao Paulo (A)			4,000		49,198
Companhia Energetica de Minas Gerais - CEMIG (A)			2,500		37,819
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS (A)			2,250		59,515
					203,768
United States - 0.35%
Konarka Technologies, Inc., 8.0% Cumulative (B)(C)			3,500		17,920
TOTAL PREFERRED STOCKS - 4.35%				$	221,688
(Cost: $179,149)

CALL OPTIONS	Number of Contracts
Chesapeake Energy Corporation,
Oct $12.50, Expires 10-19-09		25		39,750
Chevron Corporation:
Jan $50.00, Expires 1-19-10		10		20,420
Jan $45.00, Expires 1-25-10		20		50,700
El Paso Corporation:
Oct $7.00, Expires 10-19-09		48		16,488
Jan $5.00, Expires 1-19-10		50		27,000
Apr $5.00, Expires 4-19-10		17		9,342
Occidental Petroleum Corporation,
Nov $45.00, Expires 11-23-09		10		33,500
Schlumberger Limited,
Jan $40.00, Expires 1-19-10		30		62,400
Williams Companies, Inc. (The),
Feb $10.00, Expires 2-22-10		2		1,590
TOTAL CALL OPTIONS - 5.12%			$	261,190
(Cost: $216,536)

CORPORATE DEBT SECURITIES - 0.10%	Principal
Brazil
Bahia Sul Celulose S.A.,
8.614%, 12-1-12 (F)(G)(H)	BRL10,692			$	5,009
(Cost: $5,102)
SHORT-TERM SECURITIES
Commercial Paper - 3.35%
American Honda Finance Corp.,
0.210%, 10-15-09		$	10,000		9,999
Becton Dickinson & Co.,
0.200%, 10-19-09			4,000		4,000
Coca-Cola Company (The),
0.140%, 11-9-09			2,096		2,096
E.I. du Pont de Nemours and Company,
0.170%, 10-8-09			14,000		14,000
GlaxoSmithKline plc,
0.160%, 10-7-09			25,000		24,999
Honeywell International Inc.,
0.170%, 10-2-09			12,000		12,000
Johnson & Johnson,
0.020%, 10-1-09			2,571		2,571
Kitty Hawk Funding Corp.:
0.190%, 10-2-09			3,500		3,500
0.200%, 10-2-09			5,965		5,965
0.230%, 11-3-09			12,000		11,997
PACCAR Financial Corp.,
0.160%, 10-9-09			10,000		10,000
Procter and Gamble Company International Funding S.C.A.       (Procter & Gamble Company (The)),
0.210%, 10-26-09			10,000		9,999
Shell International Finance B.V. and Royal Dutch Shell plc       (Royal Dutch Shell plc),
0.160%, 10-13-09			25,000		24,999
Straight-A Funding, LLC (Federal Financing Bank):
0.210%, 10-13-09			15,055		15,053
0.190%, 10-14-09			10,000		9,999
0.250%, 10-19-09			10,000		9,999
					171,176

Commercial Paper (backed by irrevocable bank letter       of credit) - 0.14%
River Fuel Funding Company #3, Inc.       (Bank of New York (The)),
0.300%, 10-30-09	7,000		6,998
Master Note - 0.01%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (F)	294		294
Municipal Obligations - 0.40%
New York State Housing Finance Agency, Related-Caroline       Apartments Housing Revenue Bonds, 2008 Series A       (Freddie Mac),
0.350%, 10-1-09 (F)	10,000		10,000
Parish of St. Bernard, State of Louisiana, Exempt Facility       Revenue Bonds (Mobil Oil Corporation Project),       Series 1996 (Exxon Mobil Corporation),
0.290%, 10-1-09 (F)	10,500		10,500
			20,500
TOTAL SHORT-TERM SECURITIES - 3.90%		$	198,968
(Cost: $198,968)
TOTAL INVESTMENT SECURITIES - 98.75%		$	5,038,366
(Cost: $4,422,679)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.25%			63,662
NET ASSETS - 100.00%		$	5,102,028

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2009:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date	Unrealized Appreciation			Unrealized Depreciation
Sell	Euro	Canadian Imperial Bank     of Commerce		4,400	11-6-09		$	––		$	102
Sell	Euro	Toronto-Dominion Bank (The)		7,100	1-8-10			84			––
Sell	South African Rand	Scotia Capital Inc.		23,000	10-28-09			41			––
Sell	South African Rand	Toronto-Dominion Bank (The)		28,400	10-28-09			––			182
Sell	South African Rand	Royal Bank of Canada		40,800	11-  4-09			––			362
							$	125		$	646

(A)Listed on an exchange outside the United States.

(B)No dividends were paid during the preceding 12 months.

(C)Illiquid restricted securities.  At September 30, 2009, the following restricted securities were owned:

Security	Acquisition Date(s)	Shares		Cost	Market Value
Atacama Minerals Corp.	8-19-08	5,880	$	5,541		$	2,471
Buried Hill Energy (Cyprus)       Public Company Limited	5-1-07 to 4-17-08	3,630		6,183			8,712
Konarka Technologies, Inc.,       8.0% Cumulative	8-31-07	3,500		10,850			17,920
			$	22,574		$	29,103

The total value of these securities represented approximately 0.57% of net assets at September 30, 2009.

(D)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities.

(E)Securities serve as collateral for the following open futures contracts at September 30, 2009:

Description	Type	Expiration Date	Number of Contracts	Market Value	Unrealized Depreciation
S&P 500 Emini	Short	12-18-09	15	$(789,675)		$(9,246)

(F)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

(G)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real).

(H)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, 2009, the total value of these securities amounted to $5,009 or 0.10% of net assets.

The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Energy	48.29%
Materials	24.08%
Industrials	10.03%
Utilities	5.25%
Financials	1.12%
Consumer Staples	0.61%
Information Technology	0.35%
Other+	10.27%
+Includes options, cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	4,799,494
Gross unrealized appreciation		734,305
Gross unrealized depreciation		(495,433	)
Net unrealized appreciation	$	238,872

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Real Estate Securities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Stocks	96.36%
Financials	95.55%
Consumer Discretionary	0.81%
Cash and Cash Equivalents	3.64%

Lipper Rankings

Category: Lipper Real Estate Funds	Rank	Percentile
1 Year	142/233	61
3 Year	115/195	59
5 Year	104/171	61
10 Year	28/79	35

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

Top 10 Equity Holdings

Company	Sector	Industry
Simon Property Group, Inc.	Financials	Retail REITs
Health Care Property Investors, Inc.	Financials	Specialized REITs
Vornado Realty Trust	Financials	Diversified REITs
Boston Properties, Inc.	Financials	Office REITs
Equity Residential	Financials	Residential REITs
Public Storage, Inc.	Financials	Specialized REITs
Ventas, Inc.	Financials	Specialized REITs
Host Hotels & Resorts, Inc.	Financials	Specialized REITs
Digital Realty Trust, Inc.	Financials	Office REITs
Essex Property Trust, Inc.	Financials	Residential REITs

See your advisor or www.ivyfunds.com for more information on the Fund's most recently published Top 10 Equity Holdings.

ILLUSTRATION OF FUND EXPENSES

Ivy Real Estate Securities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,630.40	2.30%	$	15.12
Class B	$1,000	$1,619.20	3.91%	$	25.67
Class C	$1,000	$1,624.20	3.11%	$	20.47
Class E	$1,000	$1,635.30	1.66%	$	10.94
Class I	$1,000	$1,638.20	1.43%	$	9.50
Class R	$1,000	$1,635.10	1.78%	$	11.73
Class Y	$1,000	$1,637.60	1.42%	$	9.36
Based on 5% Return(2)
Class A	$1,000	$1,013.54	2.30%	$	11.58
Class B	$1,000	$1,005.49	3.91%	$	19.65
Class C	$1,000	$1,009.48	3.11%	$	15.67
Class E	$1,000	$1,016.73	1.66%	$	8.37
Class I	$1,000	$1,017.88	1.43%	$	7.26
Class R	$1,000	$1,016.14	1.78%	$	8.97
Class Y	$1,000	$1,017.93	1.42%	$	7.16

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Real Estate Securities Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

COMMON STOCKS	Shares		Value
Diversified Real Estate Activities - 0.31%
Jones Lang LaSalle Incorporated		17	$	801
Diversified REITs - 9.15%
Colonial Properties Trust		127		1,232
Colony Financial, Inc. (A)		85		1,658
Liberty Property Trust		114		3,705
Vornado Realty Trust		207		13,362
Washington Real Estate Investment Trust		138		3,980
				23,937
Hotels, Resorts & Cruise Lines - 0.81%
Marriott International, Inc., Class A		51		1,417
Starwood Hotels & Resorts Worldwide, Inc.		21		700
				2,117
Industrial REITs - 5.75%
AMB Property Corporation		144		3,293
DCT Industrial Trust Inc.		645		3,293
EastGroup Properties, Inc.		91		3,467
First Potomac Realty Trust		125		1,439
ProLogis		299		3,564
				15,056
Mortgage REITs - 1.15%
Starwood Property Trust, Inc.		149		3,017
Office REITs - 19.68%
Alexandria Real Estate Equities, Inc.		34		1,864
BioMed Realty Trust, Inc.		248		3,421
Boston Properties, Inc.		180		11,780
Brandywine Realty Trust		277		3,057
Corporate Office Properties Trust		109		4,008
Cousins Properties Incorporated		219		1,810
Digital Realty Trust, Inc.		173		7,903
Douglas Emmett, Inc.		351		4,309
Duke Realty Corporation		226		2,714
Franklin Street Properties Corp.		108		1,420
Highwoods Properties, Inc.		142		4,463
Mack-Cali Realty Corporation		114		3,699
SL Green Realty Corp.		24		1,048
				51,496
Real Estate Management & Development - 0.40%
Brookfield Properties Corporation		47		534
CB Richard Ellis Group, Inc., Class A (A)		44		512
				1,046
Residential REITs - 16.73%
American Campus Communities, Inc.		72		1,928
AvalonBay Communities, Inc.		94		6,866
BRE Properties, Inc., Class A		132		4,138
Camden Property Trust		62		2,487
Equity Lifestyle Properties, Inc.		46		1,951
Equity Residential		369		11,338
Essex Property Trust, Inc.		95		7,566
Home Properties, Inc.		87		3,727
Mid-America Apartment Communities, Inc.		84		3,768
				43,769
Retail REITs - 19.36%
Acadia Realty Trust		223		3,367
CBL & Associates Properties, Inc.		429		4,162
Federal Realty Investment Trust		91		5,554
Glimcher Realty Trust		152		557
Kimco Realty Corporation		69		893
Macerich Company (The)		11		322
National Retail Properties, Inc.		118		2,525
Ramco-Gershenson Properties Trust		127		1,134
Regency Centers Corporation		163		6,043
Saul Centers, Inc.		42		1,332
Simon Property Group, Inc.		313		21,723
Tanger Factory Outlet Centers, Inc.		45		1,692
Taubman Centers, Inc.		37		1,346
				50,650
Specialized REITs - 22.82%
DiamondRock Hospitality Company		170		1,379
Health Care Property Investors, Inc.		521		14,959
Health Care REIT, Inc.		162		6,726
Host Hotels & Resorts, Inc.		783		9,213
Nationwide Health Properties, Inc.		163		5,058
Public Storage, Inc.		139		10,488
U-Store-It Trust		366		2,290
Ventas, Inc.		249		9,582
				59,695
TOTAL COMMON STOCKS - 96.16%			$	251,584
(Cost: $232,688)
INVESTMENT FUNDS - 0.20%
Sector Fund-Real Estate
ProShares UltraShort Real Estate		54	$	518
(Cost: $620)

SHORT-TERM SECURITIES	Principal
Commercial Paper - 0.76%
PACCAR Financial Corp.,
0.170%, 10-22-09		$	2,000		2,000
Master Note - 2.24%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (B)			5,854		5,854
TOTAL SHORT-TERM SECURITIES - 3.00%				$	7,854
(Cost: $7,854)
TOTAL INVESTMENT SECURITIES - 99.36%				$	259,956
(Cost: $241,162)
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.64%					1,675
NET ASSETS - 100.00%				$	261,631

Notes to Schedule of Investments

(A) No dividends were paid during the preceding 12 months.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	251,038
Gross unrealized appreciation		28,826
Gross unrealized depreciation		(19,908	)
Net unrealized appreciation	$	8,918

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Bonds	94.55%
Corporate Debt Securities	49.73%
United States Government and Government             Agency Obligations	44.82%
Cash and Cash Equivalents and Equities	5.45%

Lipper Rankings

Category: Lipper Corporate Debt       Funds A Rated	Rank	Percentile
1 Year	127/153	83
3 Year	117/145	81
5 Year	107/134	80
10 Year	55/69	79

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

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 Weightings

Investment Grade	89.30%
AAA	54.73%
AA	1.98%
A	9.96%
BBB	22.63%
Non-Investment Grade	5.25%
BB	4.48%
B	0.71%
Below B	0.06%
Cash and Cash Equivalents and Equities	5.45%

Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.

Bond Portfolio Characteristics

Average maturity	6.8 years
Effective duration	4.2 years
Weighted average bond rating	AA+

ILLUSTRATION OF FUND EXPENSES

Ivy Bond Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,115.20	1.30%	$	6.87
Class B	$1,000	$1,107.30	2.73%	$	14.44
Class C	$1,000	$1,111.20	2.03%	$	10.77
Class E	$1,000	$1,115.80	1.21%	$	6.45
Class I	$1,000	$1,117.60	0.92%	$	4.87
Class Y	$1,000	$1,115.90	1.17%	$	6.24
Based on 5% Return(2)
Class A	$1,000	$1,018.53	1.30%	$	6.56
Class B	$1,000	$1,011.37	2.73%	$	13.78
Class C	$1,000	$1,014.90	2.03%	$	10.28
Class E	$1,000	$1,019.00	1.21%	$	6.16
Class I	$1,000	$1,020.43	0.92%	$	4.65
Class Y	$1,000	$1,019.19	1.17%	$	5.96

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

PREFERRED STOCKS		Shares		Value
Diversified REITs - 0.17%
PS Business Parks, Inc., 7.0% Cumulative (A)			11	$	234
Specialized REITs - 0.03%
Public Storage, Inc., 6.25% Cumulative (A)			2		47
TOTAL PREFERRED STOCKS - 0.20%				$	281
(Cost: $315)
CORPORATE DEBT SECURITIES	Principal
Banking - 2.68%
Barclays Bank PLC,
5.200%, 7-10-14		$	365		386
Citigroup Inc.:
6.500%, 8-19-13			375		394
8.125%, 7-15-39			780		872
HSBC Finance Corporation,
5.700%, 6-1-11			400		415
JPMorgan Chase & Co. (Federal Deposit Insurance Corporation),
2.625%, 12-1-10 (B)			400		409
PNC Funding Corp (Federal Deposit Insurance Corporation),
2.300%, 6-22-12 (B)			625		636
Sovereign Bank (Federal Deposit Insurance Corporation),
2.750%, 1-17-12 (B)			705		726
					3,838
Beverage / Bottling - 1.62%
Bottling Group, LLC,
6.950%, 3-15-14			630		735
Miller Brewing Company,
5.500%, 8-15-13 (C)	1,500				1,585
					2,320
Biotechnology - 0.28%
Amgen Inc.,
6.400%, 2-1-39			355		407
Building Products - 0.39%
CRH America, Inc.,
6.000%, 9-30-16			545		559
Cable & Satellite - 1.26%
Cox Communications, Inc.,
7.125%, 10-1-12			450		502
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.,
5.875%, 10-1-19 (C)			615		611
Time Warner Cable Inc.,
7.500%, 4-1-14			605		694
					1,807
Car Loan - 1.38%
Capital Auto Receivables Asset Trust 2007-1,
6.570%, 9-16-13 (D)			625		595
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (C)			275		268
Capital Auto Receivables Asset Trust 2007-3,
8.000%, 3-17-14 (D)			480		458

Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (D)		175		173
Ford Credit Auto Owner Trust 2009-B A3,
2.790%, 8-15-13		350		357
JPMorgan Auto Receivables Trust 2007-A,
7.090%, 2-15-14 (D)		148		128
				1,979
Construction & Engineering - 0.24%
USG Corporation,
6.300%, 11-15-16		400		340
Consumer Finance - 0.24%
American Express Bank, FSB       (Federal Deposit Insurance Corporation),
3.150%, 12-9-11 (B)		250		260
Green Tree Financial Corporation,
6.400%, 10-15-18		87		82
				342
Consumer Products - 0.99%
Fortune Brands, Inc.,
6.375%, 6-15-14	1,365			1,419
Containers - 0.35%
Ball Corporation,
7.375%, 9-1-19		500		508
Electric - 1.04%
ENEL Finance International S.A.,
6.000%, 10-7-39		680		676
FirstEnergy Generation Corp.,
6.850%, 6-1-34		293		301
Interstate Power and Light Company,
6.250%, 7-15-39		205		227
PacifiCorp,
6.000%, 1-15-39		250		280
				1,484
Electric Utilities - 0.29%
Exelon Generation Company, LLC,
6.250%, 10-1-39		410		419
Finance - Other - 5.67%
Allied Capital Corporation,
6.625%, 7-15-11		685		563
Ameriprise Financial, Inc.,
7.300%, 6-28-19		240		265
GE Capital Credit Card Master Note Trust,       Series 2009-3 Asset Backed Notes,
2.540%, 9-15-14		485		485
General Electric Capital Corporation       (Federal Deposit Insurance Corporation):
1.625%, 1-7-11 (B)	1,415			1,430
3.000%, 12-9-11 (B)		305		316
John Deere Capital Corporation       (Federal Deposit Insurance Corporation),
2.875%, 6-19-12 (B)		705		728
Lazard Group LLC,
6.850%, 6-15-17		800		789
Novartis Securities Investment Ltd.,
5.125%, 2-10-19		715		761
Symetra Financial Corporation,
8.300%, 10-15-37 (D)(E)		885		549
Tyco International Finance S.A.:
4.125%, 10-15-14		305		304
8.500%, 1-15-19		845		1,030
Westfield Capital Corporation Limited, WT Finance (Aust)       Pty Limited and WEA Finance LLC,
4.375%, 11-15-10 (C)		335		340
XL Capital Ltd,
5.250%, 9-15-14		565		555
				8,115
Food Processors - 0.53%
Cargill, Incorporated,
5.200%, 1-22-13 (C)		725		760
Gas Pipe Lines - 0.29%
Williams Partners L.P. and Williams Partners Finance Corporation,
7.250%, 2-1-17		420		413
Health Care Supply - 0.18%
Quest Diagnostics Incorporated,
5.450%, 11-1-15		240		253
Independent Power Producers & Energy Traders - 0.35%
NRG Energy, Inc.,
8.500%, 6-15-19		500		501
Information / Data Technology - 0.23%
Intuit Inc.,
5.750%, 3-15-17		310		324
Integrated Oil & Gas - 0.28%
BP Capital Markets p.l.c.,
3.875%, 3-10-15		385		398
Integrated Telecommunication Services - 0.62%
CenturyTel, Inc.,
7.600%, 9-15-39		885		882
Investment Banking & Brokerage - 2.44%
Goldman Sachs Group, Inc. (The):
5.700%, 9-1-12		610		658
5.150%, 1-15-14		485		509
Morgan Stanley:
5.300%, 3-1-13		635		666
4.750%, 4-1-14		165		164
6.250%, 8-28-17		300		312
Morgan Stanley (Federal Deposit Insurance Corporation),
2.900%, 12-1-10 (B)	1,150			1,180
				3,489
Life Insurance - 2.62%
Aflac Incorporated,
8.500%, 5-15-19		720		858
Liberty Mutual Group, Inc.,
7.300%, 6-15-14 (C)	1,000			976
Liberty Mutual Holding Company Inc.,
7.800%, 3-15-37 (D)		360		274
StanCorp Financial Group, Inc.:
6.875%, 10-1-12		450		465
6.900%, 6-1-67 (E)		300		201
Unum Group,
7.125%, 9-30-16		965		977
				3,751
Machinery - 0.85%
Roper Industries, Inc.,
6.250%, 9-1-19		845		877
Timken Company (The),
6.000%, 9-15-14		320		333
				1,210
Metals / Mining - 0.58%
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14		700		826
Oil & Gas - 0.71%
PC Financial Partnership,
5.000%, 11-15-14		355		366
Rowan Companies, Inc.,
7.875%, 8-1-19		600		645
				1,011
Oil & Gas Equipment & Services - 0.40%
Smith International, Inc.,
8.625%, 3-15-14		500		574
Oil & Gas Refining & Marketing - 0.47%
Valero Energy Corporation,
4.750%, 4-1-14		685		671
Oil & Gas Storage & Transportation - 3.54%
Energy Transfer Partners, L.P.,
9.700%, 3-15-19	1,000			1,238
Kinder Morgan Energy Partners, L.P.,
9.000%, 2-1-19	1,150			1,393
NuStar Logistics, L.P.,
7.650%, 4-15-18	1,200			1,301
Williams Companies, Inc. (The),
8.750%, 1-15-20	1,000			1,150
				5,082
Other Diversified Financial Services - 0.42%
Bank of America Corporation,
7.375%, 5-15-14		540		601
Other Mortgage-Backed Securities - 10.14%
ABFS Mortgage Loan Trust 2002-4,
7.923%, 12-15-33 (E)		73		13
Asset Securitization Corporation,
7.749%, 2-14-43 (E)		170		146
Asset Securitization Corporation (Interest Only),
1.503%, 10-13-26 (C)(E)(F)		716		17
Associates Manufactured Housing       Contract Pass-Through Certificates,
7.725%, 6-15-28 (E)		44		43
Banc of America Alternative Loan Trust 2005-10:
5.663%, 11-25-35 (E)		268		35
5.663%, 11-25-35 (E)		129		12
Banc of America Alternative Loan Trust 2005-12:
5.802%, 1-25-36 (E)		286		30
5.802%, 1-25-36 (E)		208		11
Banc of America Alternative Loan Trust 2006-4,
6.219%, 5-25-46 (E)		312		54
Banc of America Alternative Loan Trust 2006-8,
6.284%, 11-25-46 (E)		140		2
Banc of America Commercial Mortgage Inc., Commercial       Mortgage Pass-Through Certificates, Series 2001-1,
6.125%, 4-15-36 (C)		380		277
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		164		17
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6,
6.000%, 10-15-36 (C)		320		111
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4,
5.468%, 6-11-41 (E)	1,500			1,494
BlackRock Capital Finance,
7.750%, 9-25-26 (C)		91		27
CarMax Auto Owner Trust 2007-3,
7.580%, 3-17-14		380		334
C-Bass 2006-CB2 Trust,
5.860%, 12-25-36		530		171
C-Bass 2006-MH1 Trust:
6.240%, 10-25-36 (C)(E)		95		90
6.250%, 10-25-36 (C)(E)		170		147
CD 2006-CD2 Mortgage Trust,
5.805%, 1-15-46 (D)(E)		710		471
Cendant Mortgage Corporation and Bishop's Gate Residential       Mortgage Trust,
6.250%, 6-25-32 (D)		82		49
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (E)		370		318
CHL Mortgage Pass-Through Trust 2004-J4,
5.250%, 5-25-34		646		372
CitiMortgage Alternative Loan Trust, Series 2007-A7:
6.236%, 7-25-37 (E)		153		––
6.250%, 7-25-37		396		67
COMM 2006-CNL2,
5.756%, 2-5-19 (C)(E)		95		51
Commercial Mortgage Asset Trust,
6.000%, 11-17-32		225		114
CountryPlace Manufactured Housing Contract Trust 2005-1,
5.200%, 12-15-35 (D)(E)		300		162
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (C)(E)		500		145
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.085%, 6-25-21 (E)		615		250
CWHEQ Home Equity Loan Trust, Series 2006-S6,
5.962%, 3-25-34 (E)		193		65
CWHEQ Home Equity Loan Trust, Series 2007-S2,
5.934%, 5-25-37 (E)		503		130
First Horizon Mortgage Pass-Through Trust 2003-8,
5.136%, 10-25-33 (E)		84		34
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (C)(E)		415		77
GE Capital Commercial Mortgage Corp. 2002-2,
6.039%, 8-11-36 (C)		565		527
GE Capital Credit Card Master Note Trust,       Class B Series 2005-1,
0.413%, 3-15-13 (E)		470		464
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC:
5.250%, 4-25-32		163		96
5.403%, 4-25-32 (E)		241		89
Global Mortgage Securitization Ltd. and       Global Mortgage Securitization, LLC:
5.250%, 11-25-32 (D)		245		177
5.250%, 11-25-32 (D)		210		168
GMACM Home Equity Loan Trust 2006-HE3,
6.088%, 10-25-36 (E)		485		189
GMACM Home Equity Loan Trust 2007-HE1,
5.952%, 8-25-37 (E)		570		145
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (E)		2		2
Hometown Commercial Capital, LLC Hometown Commercial       Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (D)		429		206
Hometown Commercial Trust 2007-1, Commercial       Mortgage-Backed Notes, Series 2007-1,
6.057%, 6-11-39 (D)		453		137
J.P. Morgan Chase Commercial Mortgage Securities Corp.,       Commercial Mortgage Pass-Through Certificates,       Series 2005-LDP2,
4.625%, 3-15-  46		791		788
J.P. Morgan Mortgage Acquisition Trust 2006-CW2,
6.337%, 8-25-36 (E)		590		231
J.P. Morgan Mortgage Trust 2005-S2,
5.673%, 9-25-35 (E)		486		94
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		561		328
Morgan Stanley Capital I Trust 2004-TOP15,
5.030%, 6-13-  41	1,000			998
Morgan Stanley Capital I Trust 2007-HQ12,
5.810%, 4-12-  49 (E)	1,160			1,112
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (D)(E)		155		9
5.880%, 11-28-35 (D)(E)		105		7
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4       (Interest Only),
1.130%, 11-28-35 (D)(E)(F)	1,932			27
National Collegiate Trust 1997-S2 (The),
7.240%, 9-20-14		72		25
Nomura Asset Securities Corporation, Commercial Mortgage       Pass-Through Certificates, Series 1998-D6,
6.000%, 3-15-30 (C)		500		414
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35		100		92
Origen Manufactured Housing Contract Trust 2004-B,
5.730%, 11-15-35 (E)		45		38
Origen Manufactured Housing Contract Trust 2005-A:
4.490%, 5-15-18		39		38
5.860%, 6-15-36 (E)		120		91
Origen Manufactured Housing Contract Trust 2005-B,
5.605%, 5-15-22		80		77
RALI Series 2003-QS10 Trust,
5.750%, 5-25-33		220		156
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33		79		28
RESI Finance Limited Partnership 2003-C and RESI Finance       DE Corporation 2003-C,
1.649%, 9-10-35 (D)(E)		892		506
Structured Asset Securities Corporation,
5.630%, 5-25-34 (E)		158		66
TIAA Seasoned Commercial Mortgage Trust 2007-C4,
5.666%, 8-15-39 (E)	1,267			1,302
TimberStar Trust I,
6.208%, 10-15-36 (C)		460		400
Wells Fargo Alternative Loan 2007-PA3 Trust,
6.061%, 7-25-37 (E)		859		42
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (C)		238		106
				14,511
Other Non-Agency REMIC/CMO - 0.01%
Banco Hipotecario Nacional,
7.916%, 7-25-09 (D)		7		––	*
Mellon Residential Funding,
6.750%, 6-25-28		19		16
				16
Pharmaceuticals - 0.74%
Laboratory Corporation of America Holdings,
5.500%, 2-1-13		215		223
Pfizer Inc.,
2.249%, 3-15-11 (E)		500		514
Watson Pharmaceuticals, Inc.,
6.125%, 8-15-19		300		316
				1,053
Property & Casualty Insurance - 0.73%
Fund American Companies, Inc.,
5.875%, 5-15-13		560		535
Willis North America Inc.,
7.000%, 9-29-19		500		514
				1,049
REITs - 0.95%
DEXUS Property Group,
7.125%, 10-15-14		720		720
Westfield Group,
7.500%, 6-2-14 (C)		600		647
				1,367
Retail Propane Distributors - 0.36%
Ferrellgas, L.P. and Ferrellgas Finance Corp.,
9.125%, 10-1-17 (C)		500		515
Retail REITs - 0.43%
Simon Property Group, L.P.,
6.750%, 5-15-14		575		617
Securities - 0.86%
Jefferies Group, Inc.:
6.450%, 6-8-27	1,090			915
6.250%, 1-15-36		400		320
				1,235
Service - Other - 0.66%
ERAC USA Finance Company,
5.900%, 11-15-15 (D)		265		264
Waste Management, Inc.,
6.375%, 3-11-15		380		420
WMG Acquisition Corp.,
9.500%, 6-15-16 (C)		250		264
				948
Specialized REIT's - 0.43%
Healthcare Realty Trust Incorporated,
5.125%, 4-1-14		660		621
Steel - 0.59%
Allegheny Technologies Incorporated,
9.375%, 6-1-19		750		849
Tobacco - 1.86%
Altria Group, Inc.,
10.200%, 2-6-39	1,250			1,735
Reynolds American Inc.:
7.250%, 6-1-12		320		344
7.625%, 6-1-16		380		407
6.750%, 6-15-17		170		177
				2,663
Wireless Telecommunication Service - 1.03%
Verizon Wireless Capital LLC,
5.550%, 2-1-14 (C)	1,375			1,486
TOTAL CORPORATE DEBT SECURITIES - 49.73%			$	71,213
(Cost: $76,698)

UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Agency Obligations - 0.86%
Federal Home Loan Mortgage Corporation,
3.750%, 6-28-13		420		446
Federal National Mortgage Association,
4.750%, 12-15-10		750		788
				1,234
Mortgage-Backed Obligations - 32.76%
Federal Home Loan Mortgage Corporation       Fixed Rate Participation Certificates:
6.500%, 9-1-32		153		167
6.000%, 11-1-33		308		328
5.500%, 5-1-34		142		151
5.500%, 5-1-34		89		95
5.500%, 6-1-34	1,049			1,103
5.000%, 9-1-34		30		31
5.500%, 9-1-34		90		95
5.000%, 10-1-34	1,150			1,188
5.500%, 10-1-34		258		274
5.500%, 7-1-35		297		312
5.500%, 7-1-35		152		160
5.500%, 10-1-35	2,995			3,133
5.500%, 10-1-35		427		452
5.000%, 11-1-35	2,738			2,839
4.500%, 10-1-37		340		344
6.000%, 10-1-37	2,000			2,111
7.000%, 12-1-37		452		490
Federal National Mortgage Association Fixed       Rate Pass-Through Certificates:
5.500%, 1-1-17		96		103
6.000%, 9-1-17		63		68
5.500%, 3-1-18		69		73
5.000%, 6-1-18		251		267
5.000%, 7-1-18		91		97
7.500%, 5-1-31		80		90
7.000%, 9-1-31		30		33
7.000%, 11-1-31		58		64
6.500%, 12-1-31		35		38
7.000%, 2-1-32		52		58
7.000%, 3-1-32		63		70
6.500%, 4-1-32		16		17
6.500%, 5-1-32		17		18
6.500%, 7-1-32		47		51
6.500%, 8-1-32		39		43
6.500%, 8-1-32		38		42
6.500%, 9-1-32		67		73
6.500%, 9-1-32		26		29
6.000%, 10-1-32		90		97
6.500%, 10-1-32		80		88
6.000%, 11-1-32		85		92
6.000%, 3-1-33		72		78
5.500%, 4-1-33		120		127
6.000%, 4-1-33		135		143
5.500%, 5-1-33		90		95
6.000%, 10-1-33		142		152
5.500%, 1-1-34		83		87
5.500%, 1-1-34		81		85
6.000%, 1-1-34		317		337
5.500%, 3-1-34		123		131
5.500%, 3-1-34		50		53
5.500%, 4-1-34		130		139
5.500%, 4-1-34		36		37
5.000%, 5-1-34		52		54
5.500%, 5-1-34		100		105
5.000%, 10-1-34	2,335			2,412
5.500%, 10-1-34	3,105			3,248
6.000%, 10-1-34	3,265			3,443
5.500%, 11-1-34	1,209			1,270
6.000%, 11-1-34		419		445
5.000%, 12-1-34	3,022			3,137
5.500%, 1-1-35		471		495
5.500%, 2-1-35		136		143
5.500%, 4-1-35		902		947
5.000%, 7-1-35		164		170
5.000%, 7-1-35		84		87
5.000%, 7-1-35		70		73
5.000%, 7-1-35		37		38
5.500%, 8-1-35		84		88
5.500%, 10-1-35		712		755
5.500%, 11-1-35		960		1,008
5.000%, 2-1-36		485		503
6.000%, 7-1-37		292		309
6.000%, 9-1-37		526		556
5.500%, 3-1-38		879		921
5.000%, 4-1-38		954		987
5.500%, 5-1-38	1,245			1,304
6.000%, 7-1-38		961		1,015
6.000%, 12-1-38		981		1,037
Government National Mortgage Association Agency       REMIC/CMO (Interest Only),
0.877%, 6-17-45 (E)(F)	4,373			165
Government National Mortgage Association       Fixed Rate Pass-Through Certificates:
5.000%, 10-1-34	2,000			2,069
5.500%, 10-1-35	1,635			1,716
5.500%, 7-15-38		856		900
5.500%, 10-15-38		645		678
5.500%, 2-15-39		555		583
				46,909
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 33.62%			$	48,143
(Cost: $47,103)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Inflation Protected Obligations - 0.93%
United States Treasury Notes,
1.875%, 7-15-13 (G)	1,290			1,332
Treasury Obligations - 10.27%
United States Treasury Bonds:
5.375%, 2-15-31 (H)	1,775			2,110
4.250%, 5-15-39	4,055			4,196

United States Treasury Notes:
1.000%, 8-31-11		220		220
1.375%, 3-15-12		180		181
2.375%, 8-31-14	2,460			2,470
2.375%, 9-30-14	1,185			1,188
3.625%, 8-15-19	4,235			4,349
				14,714
TOTAL UNITED STATES GOVERNMENT       OBLIGATIONS - 11.20%			$	16,046
(Cost: $15,539)
SHORT-TERM SECURITIES
Commercial Paper - 13.08%
Coca-Cola Company (The),
0.140%, 11-9-09	2,000			2,000
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.),
0.240%, 10-26-09	5,000			4,999
Hewlett-Packard Company,
0.140%, 10-7-09	4,000			4,000
Kitty Hawk Funding Corp.,
0.200%, 10-2-09	2,000			2,000
McCormick & Co. Inc.,
0.130%, 10-1-09	1,153			1,153
PACCAR Financial Corp.,
0.170%, 10-8-09	3,000			3,000
Sara Lee Corporation,
0.100%, 10-1-09	1,580			1,580
				18,732
Master Note - 4.31%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (E)	6,170			6,170
TOTAL SHORT-TERM SECURITIES - 17.39%			$	24,902
(Cost: $24,902)
TOTAL INVESTMENT SECURITIES - 112.14%			$	160,585
(Cost: $164,557)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (12.14%)				(17,378	)
NET ASSETS - 100.00%			$	143,207

Notes to Schedule of Investments

(A)No dividends were paid during the preceding 12 months.

(B)Security is fully guaranteed by the Federal Deposit Insurance Corporation for both interest and principal under the Debt Guarantee Program of the Temporary Liquidity Guarantee Program. The guarantee expires at the earlier of the security's maturity date or December 31, 2012.

(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, 2009, the total value of these securities amounted to $9,841 or 6.87% 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, 2009, the total value of these securities amounted to $4,360 or 3.04% of net assets.

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

(F)Amount shown in principal column represents notional amount for computation of interest.

(G)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.

(H)Securities serve as collateral for the following open futures contracts at September 30, 2009:

	Description	Type	Expiration Date	Number of Contracts	Market Value			Unrealized Appreciation (Depreciation)
	U.S. 10 Year Treasury Note	Long	12-21-09	––*		$	5,798		$	83
	U.S. 30 Year Treasury Bond	Short	12-21-09	––*			(7,768	)		(114	)
	U.S. 5 Year Treasury Note	Short	12-31-09	––*			(2,902	)		(34	)
	U.S. 2 Year Treasury Note	Long	12-31-09	––*			4,339			23
*Not shown due to rounding.						$	(533	)	$	(42	)

The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
REIT = Real Estate Investment Trust
REMIC = Real Estate Mortgage Investment Conduit

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	164,727
Gross unrealized appreciation		5,938
Gross unrealized depreciation		(10,080	)
Net unrealized depreciation	$	(4,142	)

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Global Bond Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Bonds	81.88%
Corporate Debt Securities	64.03%
United States Government and             Government Agency Obligations	14.03%
Other Government Securities	3.13%
Senior Loans	0.69%
Cash and Cash Equivalents	18.12%

Quality Weightings

Investment Grade	63.86%
AAA	15.26%
AA	1.45%
A	7.49%
BBB	39.66%
Non-Investment Grade	18.02%
BB	13.00%
B	4.37%
Below B	0.65%
Cash and Cash Equivalents	18.12%

Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.

Certain U.S. government securities in which the Fund may invest, such as Treasury securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. However, other U.S. government securities in which the Fund may invest, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government, are not insured or guaranteed by the U.S. government and, instead, may be supported only by the right of the issuer to borrow from the U.S. Treasury or by the credit of the issuer.

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.

Country Weightings

North America	52.68%
United States	45.65%
Canada	5.19%
Other North America(1)	1.84%
Europe	12.91%
United Kingdom	4.47%
Other Europe(2)	8.44%
South America	6.28%
Brazil	4.04%
Other South America(3)	2.24%
Pacific Basin(4)	5.43%
Other(5)	3.33%
Bahamas/Caribbean(6)	1.25%
Cash and Cash Equivalents	18.12%

(1)Includes 1.84% Mexico.

(2)Includes 0.26% Finland, 0.24% France, 0.69% Germany, 0.46% Italy, 1.26% Luxembourg, 1.89% Norway, 0.50% Portugal, 2.65% Russia and 0.49% Switzerland.

(3)Includes 1.15% Argentina and 1.09% Chile.

(4)Includes 0.10% China, 1.23% Hong Kong, 1.42% India, 0.94% Indonesia, 0.48% Japan, 0.37% Malaysia and 0.89% Singapore.

(5)Includes 0.95% Qatar, 1.42% Supranational and 0.96% United Arab Emirates.

(6)Includes 0.12% Bahamas, 0.34% Bermuda, 0.18% British Virgin Islands and 0.61% Cayman Islands.

Bond Portfolio Characteristics

Average maturity	2.7 years
Effective duration	1.4 years
Weighted average bond rating	A

ILLUSTRATION OF FUND EXPENSES

Ivy Global Bond Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,080.60	0.99%	$5.20
Class B	$1,000	$1,077.70	1.74%	$9.04
Class C	$1,000	$1,077.70	1.74%	$9.04
Class I	$1,000	$1,082.00	0.74%	$3.85
Class Y	$1,000	$1,080.60	0.99%	$5.20
Based on 5% Return(2)
Class A	$1,000	$1,020.11	0.99%	$5.05
Class B	$1,000	$1,016.35	1.74%	$8.77
Class C	$1,000	$1,016.35	1.74%	$8.77
Class I	$1,000	$1,021.36	0.74%	$3.74
Class Y	$1,000	$1,020.11	0.99%	$5.05

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

CORPORATE DEBT SECURITIES		Principal		Value
Aerospace & Defense - 0.47%
BAE Systems Holdings Inc.,
4.750%, 8-15-10 (A)			$500	$	508
Agricultural Products - 0.54%
Bunge Limited Finance Corp.:
7.800%, 10-15-12			250		273
5.350%, 4-15-14			300		311
					584
Agriculture - 0.91%
Ciliandra Perkasa Finance Company Pte. Ltd.,
10.750%, 12-8-11			500		510
COSAN FINANCE LIMITED,
7.000%, 2-1-17			128		122
Cosan S.A. Industria e Comercio,
8.250%, 11-15-19			175		154
IOI Resources (L) Berhad, Convertible,
0.000%, 1-15-13 (B)			200		195
					981
Air Freight & Logistics - 0.52%
FedEx Corporation,
7.375%, 1-15-14			500		564
Banking - 2.53%
Banco BMG S.A.,
8.750%, 7-1-10			183		186
Banco Cruzeiro do Sul S.A.,
7.375%, 4-30-10			500		508
Bank of Tokyo-Mitsubishi, Ltd. (The),
8.400%, 4-15-10			500		515
ICICI Bank Limited:
5.750%, 1-12-12 (C)			500		507
5.750%, 1-12-12			250		253
SB Capital S.A.,
5.930%, 11-14-11			500		518
VTB Capital S.A.,
6.609%, 10-31-12			250		250
					2,737
Beverage / Bottling - 1.39%
AmBev International Finance Co. Ltd.,
9.500%, 7-24-17 (D)	BRL450				241
Miller Brewing Company,
5.500%, 8-15-13			$500		528
Molson Coors Capital Finance,
4.850%, 9-22-10			500		517
PepsiAmericas, Inc.,
5.750%, 7-31-12			200		220
					1,506
Building Products - 0.55%
Desarrolladora Homex, S.A. de C.V.,
7.500%, 9-28-15			600		590
Cable / Media - 0.29%
Grupo Televisa, S.A.,
8.000%, 9-13-11			150		163
Rogers Wireless Inc.,
8.000%, 12-15-12			150		154
					317
Coal & Consumable Fuels - 0.47%
Peabody Energy Corporation,
6.875%, 3-15-13			500		505
Communications Equipment - 0.48%
Reliance Communications Limited, Convertible,
0.000%, 3-1-12 (B)			500		521
Conglomerate / Diversified Mfg - 0.95%
Bombardier Inc.,
6.750%, 5-1-12			750		754
Ingersoll-Rand Global Holding Company Limited,
6.000%, 8-15-13			250		268
					1,022
Construction Business - 0.47%
Odebrecht Finance Ltd.,
7.500%, 10-18-17			500		510
Consumer Non-Cyclical - 0.19%
Paka Capital Ltd, Convertible,
0.000%, 3-12-13 (B)			200		200
Consumer Products - 0.69%
Clorox Company (The),
5.450%, 10-15-12			700		750
Distillers & Vintners - 0.27%
Diageo Capital plc,
7.375%, 1-15-14			250		290
Diversified Banks - 0.24%
ICICI Bank Limited,
6.625%, 10-3-12			250		258
Diversified Chemicals - 1.02%
Dow Chemical Company (The),
7.600%, 5-15-14	1,000				1,107
Diversified Telecom - 0.24%
Telefonica de Argentina S.A.,
9.125%, 11-7-10			250		260
Electric - 7.79%
Abu Dhabi National Energy Company PJSC,
5.620%, 10-25-12	1,000				1,037
Aquila, Inc.,
11.875%, 7-1-12 (E)			500		577
DPL Inc.,
6.875%, 9-1-11			500		539
EDP Finance B.V.,
5.375%, 11-2-12			500		539
ENEL Finance International S.A.,
3.875%, 10-7-14 (A)			500		499
FirstEnergy Corp.,
6.450%, 11-15-11			275		297
HQI Transelec Chile S.A.,
7.875%, 4-15-11			112		118
NorthWestern Corporation,
5.875%, 11-1-14			500		527
Oncor Electric Delivery Company,
6.375%, 5-1-12		1,000			1,085
PPL Energy Supply, LLC:
6.400%, 11-1-11			500		536
6.300%, 7-15-13			500		537
Southern Power Company,
6.250%, 7-15-12			500		547
TransAlta Corporation,
5.750%, 12-15-13	1,000				1,049
UtiliCorp United Inc.,
7.950%, 2-1-11			500		525
					8,412
Electric Utilities - 1.03%
Monongahela Power Company,
7.950%, 12-15-13 (A)	1,000				1,108
Electronics - 0.47%
STATS ChipPAC Ltd.,
7.500%, 7-19-10			500		504
Energy - 1.94%
China Petroleum & Chemical Corporation, Convertible,
0.000%, 4-24-14 (B)(D)	HKD800				113
CITIC Resources Holdings Limited,
6.750%, 5-15-14			$400		380
Empire Capital Resources Pte. Ltd.,
9.375%, 12-15-11			450		459
Seadrill Ltd., Convertible,
3.625%, 11-8-12			400		367
Subsea 7 Inc., Convertible,
0.000%, 6-29-17 (B)			800		779
					2,098
Environmental & Facilities Services - 0.24%
Allied Waste Industries, Inc.,
6.500%, 11-15-10			250		258
Finance Companies - 0.92%
C5 Capital (SPV) Limited,
6.196%, 12-31-49 (E)			250		194
Diageo Finance B.V.,
5.500%, 4-1-13			250		272
ISA Capital do Brasil S.A.,
7.875%, 1-30-12			500		525
					991
Food Processors - 1.98%
Cadbury Schweppes US Finance LLC,
5.125%, 10-1-13	1,000				1,043
Cargill, Inc.,
6.375%, 6-1-12 (C)	1,000				1,089
					2,132
Forest Products - 0.73%
Sino-Forest Corporation,
10.250%, 7-28-14 (C)			750		791
Gas - Local Distribution - 2.51%
AGL Capital Corporation,
7.125%, 1-14-11	1,000				1,052
DCP Midstream, LLC,
9.700%, 12-1-13 (C)			500		579
National Fuel Gas Company,
6.700%, 11-21-11	1,000				1,076
					2,707
Gas Pipe Lines - 3.63%
KeySpan Corporation,
7.625%, 11-15-10	1,000				1,052
Maritimes & Northeast Pipeline, L.L.C.,
7.500%, 5-31-14	1,000				1,052
Plains All American Pipeline, L.P., PAA Finance Corp.,
7.750%, 10-15-12	1,000				1,117
Transneft,
6.103%, 6-27-12			500		513
Transportadora de Gas del Sur S.A.,
7.875%, 5-14-17			227		195
					3,929
Health Care Facilities - 0.96%
HCA Inc.:
6.750%, 7-15-13			300		287
9.125%, 11-15-14			225		232
HealthSouth Corporation,
10.750%, 6-15-16			475		516
					1,035
Health Care Facilities / Supplies - 0.26%
DASA Finance Corporation,
8.750%, 5-29-18			270		286
Hotels, Resorts & Cruise Lines - 0.24%
Royal Caribbean Cruises Ltd.,
8.750%, 2-2-11			250		256
Industrial - Other - 0.49%
CCL Finance Limited,
9.500%, 8-15-14 (C)			500		531
Integrated Oil & Gas - 0.35%
Gazstream S.A.,
5.625%, 7-22-13			370		374
Metals / Mining - 4.90%
ALROSA Finance S.A.,
8.875%, 11-17-14			500		485
Anglo American plc,
9.375%, 4-8-14			500		583
Indo Integrated Energy B.V.,
8.500%, 6-1-12			500		496
Raspadskaya Securities Limited,
7.500%, 5-22-12			250		244
Rio Tinto Finance (USA) Limited,
8.950%, 5-1-14			750		885
Teck Cominco Limited,
7.000%, 9-15-12			500		514
Teck Resources Limited,
9.750%, 5-15-14			500		550
Vedanta Resources plc,
6.625%, 2-22-10			450		455
Xstrata plc,
8.375%, 2-15-11	1,000				1,076
					5,288
Multi-Utilities - 0.97%
Black Hills Corporation,
6.500%, 5-15-13	1,000				1,050
Office Electronics - 0.48%
Xerox Corporation:
7.125%, 6-15-10			250		257
5.500%, 5-15-12			250		263
					520
Oil & Gas - 3.00%
Cenovus Energy Inc.,
4.500%, 9-15-14 (A)			500		511
Petro-Canada,
4.000%, 7-15-13			500		501
Petroleum Geo-Services ASA, Convertible,
2.700%, 12-3-12			800		666
Ras Laffan Liquedied Natural Gas Co. Ltd.,
5.832%, 9-30-16	1,000				1,039
Sunoco Logistics Partners Operations L.P.,
8.750%, 2-15-14			500		540
					3,257
Oil & Gas Equipment & Services - 0.53%
Smith International, Inc.,
8.625%, 3-15-14			500		574
Oil & Gas Exploration & Production - 0.50%
Anadarko Petroleum Corporation,
5.750%, 6-15-14			500		537
Oil & Gas Storage & Transportation - 1.95%
Energy Transfer Partners, L.P.,
5.650%, 8-1-12	1,000				1,055
Northern Border Partners, L.P.,
8.875%, 6-15-10			500		526
ONEOK Partners, L.P.,
5.900%, 4-1-12			500		527
					2,108
Oilfield Machinery & Service - 1.45%
Frontier Oil Corporation,
6.625%, 10-1-11			492		492
Weatherford International, Inc.,
5.950%, 6-15-12	1,000				1,072
					1,564
Packaged Foods & Meats - 0.25%
Kraft Foods Inc.,
6.000%, 2-11-13			250		268
Paper / Forest Products - 2.69%
Celulosa Arauco y Constitucion S.A.:
8.625%, 8-15-10			500		524
7.750%, 9-13-11			500		539
International Paper Company,
7.400%, 6-15-14			400		440
Stora Enso Oyj,
7.375%, 5-15-11			275		280
Weyerhaeuser Company,
6.750%, 3-15-12	1,074				1,119
					2,902
Pharmaceuticals - 0.49%
Novartis Capital Corporation,
4.125%, 2-10-14			500		528
Publishing - 0.34%
Pearson Dollar Finance Two plc,
5.500%, 5-6-13			350		364
Railroads - 0.77%
Burlington Northern Santa Fe Corporation,
5.900%, 7-1-12			300		326
TFM, S.A. de C.V.,
9.375%, 5-1-12			500		507
					833
Restaurants - 0.46%
Arcos Dorados B.V.,
7.500%, 10-1-19 (A)			500		498
Retail Stores - Other - 0.61%
Parkson Retail Group Limited,
7.125%, 5-30-12			650		662
Service - Other - 0.97%
Waste Management, Inc.,
7.375%, 8-1-10	1,000				1,048
Steel - 0.53%
ArcelorMittal,
9.000%, 2-15-15			500		575
Technology - 0.70%
L-3 Communications Corporation,
7.625%, 6-15-12			750		760
Telecommunications - 0.87%
Global Village Telecom,
12.000%, 6-30-11			650		670
Open Joint Stock Company "Vimpel-Communications",
8.375%, 10-22-11			250		265
					935
Tobacco - 0.52%
B.A.T. International Finance p.l.c,
8.125%, 11-15-13			500		574
Trading Companies & Distributors - 0.80%
Noble Group Limited,
8.500%, 5-30-13			800		866
Transportation - 0.44%
PB Issuer Limited, Convertible,
3.300%, 2-1-13			500		470
Transportation - Other - 0.12%
Ultrapetrol (Bahamas) Limited,
9.000%, 11-24-14			150		132
Utilities - 2.83%
CESP - Companhia Energetica de Sao Paulo,
9.750%, 1-15-15 (D)	BRL1,000				664
Compania de Transporte de Energia Electrica en Alta       Tension TRANSENER S.A.,
8.875%, 12-15-16			$400		292
Duke Energy Field Services, LLC,
7.875%, 8-16-10			500		524
NiSource Finance Corp.,
7.875%, 11-15-10	1,250				1,316
Veolia Environment,
5.250%, 6-3-13			250		262
					3,058
Wireless Telecommunication Service - 1.10%
America Movil, S.A. de C.V.,
5.500%, 3-1-14			500		522
Mobile TeleSystems Finance S.A.,
8.375%, 10-14-10			200		208
Mobile TeleSystems OJSC,
8.700%, 6-12-18 (D)	RUB6,000				198
VIP Finance Ireland Limited,
8.375%, 4-30-13			$250		260
					1,188
TOTAL CORPORATE DEBT SECURITIES - 64.03%				$	69,181
(Cost: $65,057)
OTHER GOVERNMENT SECURITIES
Germany - 0.69%
Bundesobligation,
3.250%, 4-9-10 (D)	EUR500				742
Mexico - 0.18%
United Mexican States Government Bonds,
9.000%, 12-24-09 (D)	MXN2,500				192
Norway - 0.54%
Norway Government Bonds,
6.000%, 5-16-11 (D)	NOK3,200				582
Russia - 0.30%
Open Joint Stock Company "Russian Railroads",
8.500%, 7-6-11 (D)	RUB10,000				319

Supranational - 1.42%
CENTRAL AMERICAN BANK FOR ECONOMIC       INTEGRATION:
4.875%, 1-15-12		$500		509
4.875%, 1-15-12 (A)		500		509
Corporacion Andina de Fomento,
7.375%, 1-18-11		500		529
				1,547
TOTAL OTHER GOVERNMENT SECURITIES - 3.13%			$	3,382
(Cost: $3,600)
SENIOR LOANS - 0.69%
Consumer Products
Wm. Wrigley Jr. Company,
6.500%, 7-17-14 (E)		731	$	743
(Cost: $732)
UNITED STATES GOVERNMENT AGENCY       OBLIGATIONS - 4.76%
Mortgage-Backed Obligations
Federal Home Loan Mortgage Corporation Agency       REMIC/CMO (Interest Only), (F)
5.500%, 1-15-38		3,209		444
Federal National Mortgage Association Agency REMIC/CMO,
5.000%, 2-25-35		395		410
Federal National Mortgage Association Agency REMIC/CMO       (Interest Only): (F)
5.000%, 6-25-22		889		69
4.000%, 7-15-23		7,121		887
5.000%, 7-25-23		747		74
4.000%, 12-15-23		2,133		283
4.000%, 2-15-24		3,046		403
4.000%, 4-15-24		3,494		447
5.500%, 1-25-33		1,147		153
6.000%, 4-23-33		2,748		394
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
5.000%, 3-1-22		537		564
5.000%, 8-1-23		289		304
Government National Mortgage Association Agency       REMIC/CMO (Interest Only): (F)
5.000%, 7-16-22		840		101
6.000%, 9-16-33		2,106		252
Government National Mortgage Association Fixed Rate       Pass-Through Certificates,
4.500%, 6-15-23		344		361
(Cost: $5,689)			$	5,146
UNITED STATES GOVERNMENT OBLIGATIONS - 9.27%
Treasury Obligations
United States Treasury Notes,
1.125%, 12-15-11	10,000		$	10,013
(Cost: $9,948)

SHORT-TERM SECURITIES
Commercial Paper - 16.31%
Clorox Co.,
0.220%, 10-13-09	1,560		1,560
Coca-Cola Company (The),
0.140%, 11-9-09	2,000		2,000
E.I. du Pont de Nemours and Company,
0.170%, 10-8-09	5,000		5,000
Hewlett-Packard Company,
0.140%, 10-7-09	5,000		4,999
PACCAR Financial Corp.,
0.170%, 10-22-09	3,000		3,000
Sara Lee Corporation,
0.100%, 10-1-09	1,067		1,067
			17,626
Master Note - 1.99%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (E)	2,151		2,151
TOTAL SHORT-TERM SECURITIES - 18.30%		$	19,777
(Cost: $19,777)
TOTAL INVESTMENT SECURITIES - 100.18%		$	108,242
(Cost: $104,803)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.18%)			(197	)
NET ASSETS - 100.00%		$	108,045

Notes to Schedule of Investments

The following forward foreign currency contracts were outstanding at September 30, 2009:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date	Unrealized Appreciation		Unrealized Depreciation
Sell	Brazilian Real	Citibank, N.A.		1,015	12-2-09		$––		$142
Buy	Chinese Yuan       Renminbi	Citibank, N.A.		27,500	9-19-11		41		––
Sell	Mexican Peso	Citibank, N.A.		2,600	12-24-09		––		8
Sell	Russian Ruble	Citibank, N.A.		17,825	11-20-09		––		87
Sell	Swedish Krona	Bank of America NT & SA		37,100	6-9-10		––		425
							$41		$662

(A)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Trustees. At September 30, 2009, the total value of these securities amounted to $3,633 or 3.36% of net assets.

(B)Zero coupon bond.

(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, 2009, the total value of these securities amounted to $3,497 or 3.24% of net assets.

(D)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, EUR - Euro, HKD - Hong Kong Dollar, MXN - Mexican Peso, NOK - Norwegian Krone and RUB - Russian Ruble).

(E)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

(F)Amount shown in principal column represents notional amount for computation of interest.

The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit

Country Diversification
(as a % of net assets)
United States	45.65%
Canada	5.19%
United Kingdom	4.47%
Brazil	4.04%
Russia	2.65%
Norway	1.89%
Mexico	1.84%
India	1.42%
Supranational	1.42%
Luxembourg	1.26%
Hong Kong	1.23%
Argentina	1.15%
Chile	1.09%
United Arab Emirates	0.96%
Qatar	0.95%
Indonesia	0.94%
Singapore	0.89%
Germany	0.69%
Cayman Islands	0.61%
Portugal	0.50%
Switzerland	0.49%
Japan	0.48%
Italy	0.46%
Malaysia	0.37%
Bermuda	0.34%
Finland	0.26%
France	0.24%
British Virgin Islands	0.18%
Bahamas	0.12%
China	0.10%
Other+	18.12%
+Includes cash and cash equivalents and other assets and liabilities

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	104,803
Gross unrealized appreciation		4,454
Gross unrealized depreciation		(1,015	)
Net unrealized appreciation	$	3,439

See Accompanying Notes to Financial Statements.

PORTFOLIO HIGHLIGHTS

Ivy Mortgage Securities Fund

ALL DATA IS AS OF SEPTEMBER 30, 2009 (UNAUDITED)

Asset Allocation

Bonds	94.51%
United States Government and             Government Agency Obligations	63.73%
Corporate Debt Securities	30.78%
Cash and Cash Equivalents	5.49%

Lipper Rankings

Category: Lipper U.S. Mortgage Funds	Rank	Percentile
1 Year	92/95	96
3 Year	84/87	96
5 Year	80/83	96
10 Year	53/55	95

Past performance is no guarantee of future results.  Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges.  Rankings for other share classes may vary.

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 Weightings

Investment Grade	90.51%
AAA	74.85%
AA	7.62%
A	4.50%
BBB	3.54%
Non-Investment Grade	4.00%
BB	3.46%
B	0.33%
Below B	0.21%
Cash and Cash Equivalents	5.49%

Ratings reflected in the wheel are taken from the following sources in order of preference: Standard & Poor's, Moody's or management's internal ratings, where no other ratings are available.

Bond Portfolio Characteristics

Average maturity	4.0 years
Effective duration	2.8 years
Weighted average bond rating	AAA

ILLUSTRATION OF FUND EXPENSES

Ivy Mortgage Securities Fund

(UNAUDITED)

For the Six Months Ended       September 30, 2009	Beginning Account Value 3-31-09	Ending Account Value 9-30-09	Annualized Expense Ratio Based on the Six-Month Period	Expenses Paid During Period*
Based on Actual Fund Return(1)
Class A	$1,000	$1,073.20	1.49%	$	7.77
Class B	$1,000	$1,067.20	2.70%	$	13.95
Class C	$1,000	$1,069.60	2.24%	$	11.59
Class E	$1,000	$1,075.10	1.14%	$	5.91
Class I	$1,000	$1,076.50	0.93%	$	4.88
Class Y	$1,000	$1,075.70	1.12%	$	5.81
Based on 5% Return(2)
Class A	$1,000	$1,017.58	1.49%	$	7.57
Class B	$1,000	$1,011.53	2.70%	$	13.58
Class C	$1,000	$1,013.86	2.24%	$	11.28
Class E	$1,000	$1,019.36	1.14%	$	5.76
Class I	$1,000	$1,020.42	0.93%	$	4.75
Class Y	$1,000	$1,019.47	1.12%	$	5.65

*Fund expenses for each share class are equal to the Fund's annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2009, and divided by 365.

(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.

See "Disclosure of Expenses" on page 5 for further information on how expenses were calculated.

SCHEDULE OF INVESTMENTS

Ivy Mortgage Securities Fund (in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Car Loan - 1.05%
Capital Auto Receivables Asset Trust 2007-2,
8.300%, 2-18-14 (A)		$1,105	$	1,077
Ford Credit Auto Owner Trust 2007-A,
7.050%, 12-15-13 (B)		390		386
				1,463
Consumer Finance - 0.19%
Green Tree Financial Corporation,
8.300%, 11-15-19		277		271
Other Mortgage-Backed Securities - 29.14%
Aames Mortgage Trust 2001-4,
6.650%, 1-25-32 (C)		386		202
ABFS Mortgage Loan Trust 2001-2,
7.490%, 12-25-31 (C)		761		311
ABFS Mortgage Loan Trust 2002-4,
7.923%, 12-15-33 (C)		1,105		198
Asset Securitization Corporation (Interest Only):
1.503%, 10-13-26 (A)(C)(D)		3,097		73
8.621%, 8-13-29 (C)(D)		983		159
Associates Manufactured Housing Contract       Pass-Through Certificates,
7.900%, 3-15-27		115		115
Banc of America Alternative Loan Trust 2005-10,
5.663%, 11-25-35 (C)		1,105		55
Banc of America Alternative Loan Trust 2005-12,
5.802%, 1-25-36 (C)		1,561		144
Banc of America Alternative Loan Trust 2005-6,
6.000%, 7-25-35		749		415
Banc of America Alternative Loan Trust 2005-8:
5.569%, 9-25-35 (C)		1,927		208
5.569%, 9-25-35 (C)		384		20
Banc of America Alternative Loan Trust 2006-4:
6.219%, 5-25- 46 (C)		619		107
6.219%, 5-25- 46 (C)		868		49
Banc of America Funding 2004-2 Trust,
6.500%, 7-20-32		1,138		883
Banc of America Mortgage 2007-1 Trust,
6.000%, 3-25-37		3,518		499
Banc of America Mortgage Alternative Loan Trust 2003-5,
5.500%, 7-25-33		1,180		188
Banc of America Mortgage Trust 2003-9,
5.500%, 12-25-33		733		293
Banc of America Mortgage Trust 2004-2:
5.000%, 3-25-19		245		168
5.000%, 3-25-19		191		127
Banc of America Mortgage Trust 2004-3:
4.875%, 4-25-19		332		207
4.875%, 4-25-19		178		87
Banc of America Structured Securities Trust 2002-X1 F,
6.274%, 10-11-33 (B)		1,750		1,748
BankAmerica Manufactured Housing Contract Trust:
7.800%, 10-10-26		979		976
7.015%, 1-10-28		329		322
Bear Stearns Commercial Mortgage Securities Inc.,       Series 2000-WF1 Trust Fund,
6.500%, 2-15-32		1,015		671
Bear Stearns Commercial Mortgage Securities Trust 2002-TOP6,
6.000%, 10-15-36 (A)		938		324
BlackRock Capital Finance,
7.750%, 9-25-26 (A)		486		146
C-Bass 2005-CB3 Trust,
5.109%, 5-25-35 (C)		525		508
C-Bass 2006-MH1 Trust,
5.970%, 10-25-36 (A)(C)		1,304		1,300	��
C-Bass Mortgage Loan Trust 2007-CB2,
5.891%, 2-25-37 (C)		166		137
Centex Home Equity Loan Trust 2005-C,
5.048%, 6-25-35 (C)		1,801		1,548
CHL Mortgage Pass-Through Trust 2002-32,
5.548%, 1-25-33 (B)(C)		1,047		734
CitiMortgage Alternative Loan Trust, Series 2007-A7,
6.236%, 7-25-37 (C)		637		––	*
Collateralized Mortgage Obligation Trust,
5.000%, 7-1-18		23		24
COMM 2006-CNL2,
5.756%, 2-5-19 (A)(C)		475		255
Commercial Mortgage Asset Trust,
7.800%, 11-17-32 (C)		1,000		1,112
Commercial Mortgage Asset Trust, Commercial Mortgage       Pass-Through Certificates, Series 1999-C1,
6.640%, 1-17-32		208		209
CountryPlace Manufactured Housing Contract Trust 2005-1,
4.800%, 12-15-35 (B)(C)		1,275		912
CSFB Commercial Mortgage Trust 2003-C4,
5.322%, 8-15-36 (A)(C)		1,000		290
CWHEQ Home Equity Loan Trust, Series 2006-S3,
6.518%, 1-25-29 (C)		1,034		282
FFCA Secured Lending Corporation:
1.344%, 2-18-22 (B)(C)		1,500		1,206
1.594%, 2-18-22 (B)(C)		1,000		766
First Horizon Mortgage Pass-Through Trust 2003-8,
5.136%, 10-25-33 (C)		323		130
First Horizon Mortgage Pass-Through Trust 2007-4,
5.500%, 8-25-22		733		519
Flagstar Home Equity Loan Trust 2007-1,
5.997%, 1-25-35 (A)(C)		1,130		210
Global Mortgage Securitization 2005-A Ltd. and Global       Mortgage Securitization 2005-A LLC:
5.250%, 4-25-32		667		392
5.403%, 4-25-32 (C)		1,037		382
Global Mortgage Securitization Ltd. and Global Mortgage       Securitization, LLC:
5.250%, 11-25-32 (B)		902		651
5.250%, 11-25-32 (B)		420		336
GMAC Commercial Mortgage Corporation, Series 2005-C1       Mortgage Pass-Through Certificates,
4.471%, 5-10-43		279		280
GMAC Commercial Mortgage Securities,
5.940%, 7-1-13 (B)		52		42
Home Equity Loan Trust 2003-HS2,
5.090%, 7-25-33 (C)		9		9
Hometown Commercial Capital, LLC Hometown Commercial       Mortgage Pass-Through Notes 2006-1,
5.506%, 11-11-38 (B)		1,934		928
Impac CMB Trust Series 2003-2F,
6.000%, 1-25-33 (C)		592		262
J.P. Morgan Alternative Loan Trust 2006-A6,
5.950%, 11-25-36 (C)		2,500		1,368
J.P. Morgan Chase Commercial Mortgage Securities Corp.,       Commercial Mortgage Pass-Through Certificates,       Series 2005-LDP2,
4.625%, 3-15-46		227		226
J.P. Morgan Mortgage Trust 2004-A3,
4.273%, 7-25-34 (C)		817		434
J.P. Morgan Mortgage Trust 2005-S2,
5.673%, 9-25-35 (C)		2,130		410
J.P. Morgan Mortgage Trust 2006-A2:
4.439%, 11-25-33 (C)		666		367
4.259%, 8-25-34 (C)		2,031		532
J.P. Morgan Mortgage Trust 2006-S3,
6.187%, 8-25-36		1,149		60
J.P. Morgan Mortgage Trust 2007-A1,
4.684%, 7-25-35 (C)		2,148		166
LB-UBS Commercial Mortgage Trust 2003-C3,
4.846%, 2-15-37 (A)(C)		300		131
LB-UBS Westfield Trust, Commercial Mortgage Pass-Through       Certificates, Series 2001-WM,
6.647%, 7-14-16 (A)		1,000		1,035
Lehman Mortgage Trust Mortgage Pass-Through Certificates,       Series 2006-5,
6.736%, 9-25-36 (C)		1,982		91
Lehman XS Trust, Series 2005-8,
5.690%, 12-25-35		2,930		1,713
Mid-State Capital Corporation 2004-1 Trust:
6.005%, 8-15-37		329		296
6.497%, 8-15-37		1,036		866
Morgan Stanley Capital I Trust 2004-TOP15,
4.690%, 6-13- 41		302		306
Morgan Stanley Dean Witter Capital I Inc. Trust 2002-WL1,
6.496%, 4-25-17 (C)		186		156
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4:
5.880%, 11-28-35 (B)(C)		680		41
5.880%, 11-28-35 (B)(C)		340		24
Multi Security Asset Trust LP, Commercial Mortgage-Backed       Securities Pass-Through Certificates, Series 2005-RR4       (Interest Only),
1.130%, 11-28-35 (B)(C)(D)		9,915		137
Multi Security Asset Trust, Commercial Mortgage Pass-Through       Certificates, Series 2005-RR4,
5.000%, 11-28-35 (B)		2,000		1,640
Oakwood Mortgage Investors, Inc.:
8.100%, 10-15-21 (B)		48		47
7.375%, 8-15-27		53		52
Origen Manufactured Housing Contract Trust 2004-A,
5.700%, 1-15-35		543		498
Origen Manufactured Housing Contract Trust 2004-B,
4.750%, 8-15-21		476		461
Origen Manufactured Housing Contract Trust 2005-B:
5.605%, 5-15-22		360		345
5.910%, 1-15-37		700		619
PHH Alternative Mortgage Trust, Series 2007-1, Class II-B-2,
6.000%, 2-25-37		1,533		130
PNC Mortgage Acceptance Corp.,
7.300%, 10-12-33		245		253
Prudential Home Mortgage Securities:
6.730%, 4-28-24 (B)(C)		2		2
7.976%, 9-28-24 (A)(C)		12		8
RALI Series 2003-QS11 Trust,
5.750%, 6-25-33		2,299		1,409
RAMP Series 2005-RS1 Trust,
5.145%, 1-25-35 (C)		1,013		218
RASC Series 2003-KS10 Trust,
6.410%, 12-25-33		244		85
RESI Finance Limited Partnership 2003-C and RESI Finance       DE Corporation 2003-C,
1.649%, 9-10-35 (B)(C)		811		460
RFMSI Series 2004-S5 Trust:
4.500%, 5-25-19		282		214
4.500%, 5-25-19		140		97
Salomon Brothers Mortgage Securities VII, Inc., Mortgage       Pass-Through Certificates, Series 1997-HUD1,
7.750%, 12-25-30 (C)		974		166
Structured Asset Mortgage Investments, Inc.:
5.426%, 4-30-30 (C)		15		10
5.426%, 4-30-30 (C)		7		5
Structured Asset Securities Corporation:
6.290%, 11-25-32 (C)		221		69
5.250%, 8-25-33		1,164		716
5.250%, 8-25-33		507		245
5.630%, 5-25-34 (C)		696		291
6.000%, 6-25-34 (C)		2,019		766
Washington Mutual MSC Mortgage Pass-Through Certificates       Series 2002-MS11 Trust,
5.621%, 12-25-32 (C)		729		458
Wells Fargo Alternative Loan 2007-PA3 Trust:
5.750%, 7-25-37		1,079		324
6.048%, 7-25-37 (C)		684		7
6.061%, 7-25-37 (C)		1,757		87
Wells Fargo Mortgage Backed Securities 2003-2 Trust,
5.250%, 2-25-18 (B)		198		130
Wells Fargo Mortgage Backed Securities 2003-9 Trust,
5.250%, 8-25-33 (A)		995		444
				40,734
Other Non-Agency REMIC/CMO - 0.40%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (B)		23		––	*
1.700%, 3-25-11 (B)(C)		10		––	*
7.540%, 5-31-17 (B)		––		––	*
Bear Stearns Mortgage Securities Inc.,
8.000%, 11-25-29		315		287
Structured Adjustable Rate Mortgage Loan Trust,       Series 2005-21,
5.400%, 11-25-35 (C)		1,575		276
				563
TOTAL CORPORATE DEBT SECURITIES - 30.78%			$	43,031
(Cost: $89,728)
UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS
Agency Obligations - 0.30%
Federal National Mortgage Association,
4.750%, 12-15-10 (E)		400		420
Mortgage-Backed Obligations - 63.04%
Federal Home Loan Mortgage Corporation       Fixed Rate Participation Certificates:
5.500%, 12-1-17		452		485
5.500%, 9-1-19		777		829
5.300%, 1-15-33		206		218
5.500%, 5-1-34		1,008		1,071
5.500%, 5-1-34		623		662
6.500%, 5-1-34		580		621
5.000%, 10-1-34		3,010		3,110
5.500%, 10-1-34		779		825
5.000%, 8-1-35		706		732
5.500%, 10-1-35		3,000		3,141
5.500%, 10-1-35		1,264		1,339
5.000%, 12-1-35		581		602
6.500%, 7-1-36		823		878
4.500%, 10-1-37		265		268
6.000%, 10-1-37		2,000		2,111
7.000%, 12-1-37		572		620
Federal National Mortgage Association Fixed Rate       Pass-Through Certificates:
6.000%, 1-1-18		279		299
5.500%, 2-1-18		278		299
5.000%, 5-1-18		915		976
5.000%, 10-1-18		844		897
5.500%, 9-1-19		218		233
6.000%, 8-1-23		959		1,023

5.500%, 2-1-24	362			384
6.000%, 8-1-29		291		310
7.000%, 11-1-31		144		160
6.500%, 2-1-32		141		153
6.500%, 2-1-32		105		114
6.500%, 2-1-32		90		98
7.000%, 2-1-32		192		213
7.000%, 3-1-32		269		300
6.500%, 4-1-32		55		59
6.500%, 5-1-32		101		110
6.500%, 5-1-32		62		67
6.000%, 9-1-32		110		119
6.500%, 9-1-32		61		66
6.000%, 10-1-32		737		794
6.000%, 10-1-32		723		774
6.500%, 10-1-32		49		53
6.000%, 11-1-32		570		612
6.000%, 11-1-32		347		373
6.000%, 3-1-33		902		971
6.000%, 3-1-33		670		719
6.000%, 3-1-33		196		211
5.500%, 4-1-33		1,302		1,379
5.500%, 5-1-33		376		396
5.500%, 5-1-33		225		238
6.000%, 6-1-33		1,573		1,673
6.000%, 6-1-33		565		601
6.500%, 8-1-33		40		43
6.000%, 10-1-33		214		229
6.000%, 12-1-33		411		441
5.500%, 1-1-34		645		678
5.500%, 1-1-34		496		522
5.000%, 3-1-34		749		777
5.000%, 3-1-34		301		313
5.500%, 4-1-34		435		457
5.000%, 5-1-34		141		146
6.000%, 8-1-34		502		533
5.500%, 9-1-34		867		919
6.000%, 9-1-34		613		651
6.500%, 9-1-34		713		766
5.000%, 10-1-34		3,520		3,635
5.500%, 10-1-34		7,809		8,168
6.000%, 10-1-34		4,065		4,287
5.500%, 11-1-34		482		510
6.000%, 11-1-34		210		223
6.500%, 11-1-34		49		53
5.000%, 12-1-34		953		990
5.500%, 1-1-35		940		988
5.500%, 1-1-35		431		452
5.500%, 2-1-35		1,868		1,978
6.500%, 3-1-35		861		929
5.000%, 7-1-35		626		649
5.500%, 7-1-35		532		558
5.500%, 10-1-35		1,227		1,302
5.500%, 10-1-35		727		771
5.500%, 11-1-35		477		501
5.500%, 2-1-36		1,330		1,389
6.500%, 2-1-36		549		590
6.500%, 6-1-36		919		984
5.500%, 11-1-36		1,259		1,321
6.000%, 11-1-36		1,469		1,555
6.000%, 11-1-36		739		782
6.000%, 5-1-37		790		835
5.500%, 6-1-37		230		241
6.500%, 8-1-37		1,552		1,661
6.000%, 9-1-37		80		84
6.500%, 9-1-37		1,358		1,453
7.000%, 10-1-37		197		215
7.000%, 10-1-37		184		201
5.500%, 3-1-38		202		211
5.500%, 5-1-38		304		319
Government National Mortgage Association Agency       REMIC/CMO (Interest Only): (D)
0.825%, 3-16-34 (C)		6,063		170
0.724%, 7-16-  40 (C)		3,009		82
0.100%, 3-16-  42 (C)		10,781		41
0.877%, 6-17-  45 (C)		17,154		646
Government National Mortgage Association Fixed Rate       Pass-Through Certificates:
7.875%, 5-15-17		530		539
6.250%, 7-15-24		182		195
5.000%, 7-15-33		770		803
5.000%, 7-15-34		664		691
5.000%, 10-1-34		1,000		1,035
5.500%, 12-15-34		657		693
5.500%, 12-15-34		431		455
5.000%, 1-15-35		1,253		1,303
5.500%, 10-1-35		3,000		3,149
5.000%, 12-15-35		1,513		1,573
United States Department of Veterans Affairs, Guaranteed       REMIC Pass-Through Certificates, Vendee Mortgage       Trust, 1995-1 Class 1,
7.212%, 2-15-25 (C)		182		198
United States Department of Veterans Affairs, Guaranteed       REMIC Pass-Through Certificates, Vendee Mortgage       Trust, 1995-1 Class 2,
7.793%, 2-15-25		57		62
				88,131
TOTAL UNITED STATES GOVERNMENT       AGENCY OBLIGATIONS - 63.34%			$	88,551
(Cost: $87,048)

UNITED STATES GOVERNMENT       OBLIGATIONS - 0.39%
Treasury Obligations
United States Treasury Notes,
4.500%, 3-31-12 (E)	500			541
(Cost: $512)
SHORT-TERM SECURITIES
Commercial Paper - 23.27%
Clorox Co.,
0.220%, 10-13-09		2,000		2,000
Danaher Corporation,
0.150%, 10-26-09		3,000		3,000
E.I. du Pont de Nemours and Company,
0.170%, 10-8-09		6,000		5,999
Merck & Co., Inc.,
0.150%, 10-5-09		5,000		5,000
PACCAR Financial Corp.,
0.160%, 10-15-09		5,200		5,200
Sara Lee Corporation,
0.100%, 10-1-09		1,338		1,338
Straight-A Funding, LLC (Federal Financing Bank):
0.210%, 10-13-09		5,000		5,000
0.190%, 10-21-09		5,000		4,999
				32,536
Master Note - 2.55%
Toyota Motor Credit Corporation,
0.139%, 10-1-09 (C)		3,569		3,569
TOTAL SHORT-TERM SECURITIES - 25.82%			$	36,105
(Cost: $36,105)
TOTAL INVESTMENT SECURITIES - 120.33%			$	168,228
(Cost: $213,393)
LIABILITIES, NET OF CASH AND OTHER ASSETS - (20.33%)				(28,417	)
NET ASSETS - 100.00%			$	139,811

Notes to Schedule of Investments

*Not shown due to rounding.

(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, 2009, the total value of these securities amounted to $5,293 or 3.79% of net assets.

(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, 2009, the total value of these securities amounted to $10,190 or 7.29% of net assets.

(C)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2009.

(D)Amount shown in principal column represents notional amount for computation of interest.

(E)Securities serve as collateral for the following open futures contracts at September 30, 2009:

Description	Type	Expiration Date	Number of Contracts	Market Value		Unrealized Depreciation
U.S. 30 Year Treasury Bond	Short	12-21-09	--*	$	(8,375)		$(122)
U.S. 10 Year Treasury Note	Short	12-21-09	--*		(5,798)		(83)
U.S. 5 Year Treasury Note	Short	12-31-09	--*		(4,063)		(48)
				$	(18,236)		$(253)

The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
REMIC = Real Estate Mortgage Investment Conduit

For Federal income tax purposes, cost of investments owned at September 30, 2009 and the related unrealized appreciation (depreciation) were as follows:
Cost	$	213,659
Gross unrealized appreciation		2,768
Gross unrealized depreciation		(48,199	)
Net unrealized depreciation	$	(45,431	)

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITES

Ivy Funds

AS OF SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Dividend Opportunities Fund				Ivy Micro Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Value Fund			Ivy Managed European/ Pacific Fund			Ivy Managed International Opportunities Fund
ASSETS
Investments in unaffiliated       securities at market value+		$	247,949		$	20,091		$	188,135		$	53,717		$	30		$	277
Investments in affiliated securities       at market value+			––			––			––			––			68,353			140,047
Investments at Market Value			247,949			20,091			188,135			53,717			68,383			140,324
Cash			––			––			––			3			––			––	*
Investment securities sold receivable			––			349			2,578			79			––			––
Dividends and interest receivable			536			––	*		62			101			––	*		––	*
Capital shares sold receivable			814			205			463			94			215			381
Receivable from affiliates			11			35			––			––			––			––
Prepaid and other assets			54			62			32			24			33			38
Total Assets			249,364			20,742			191,270			54,018			68,631			140,743
LIABILITIES
Investment securities purchased       payable			2,823			272			898			711			105			382
Capital shares redeemed payable			364			2			223			46			57			115
Trustees' fees payable			11			––	*		15			9			1			2
Overdraft due to custodian			1,718			42			––	*		––			5			––
Distribution and service fees payable			93			4			41			21			1			1
Shareholder servicing payable			78			5			87			30			12			18
Investment management fee payable			140			14			131			30			3			6
Accounting services fee payable			8			1			6			3			2			3
Written options at market value+			––			––			––			51			––			––
Other liabilities			23			13			19			13			19			17
Total Liabilities			5,258			353			1,420			914			205			544
Total Net Assets		$	244,106		$	20,389		$	189,850		$	53,104		$	68,426		$	140,199
NET ASSETS
Capital paid in (shares authorized -       unlimited)		$	268,872		$	16,848		$	194,222		$	56,476		$	89,466		$	168,609
Undistributed (distributions in       excess of) net investment income			194			(132	)		(538	)		41			(215	)		(310	)
Accumulated net realized gain (loss)			(43,512	)		382			(31,062	)		(8,695	)	(24,074		)		(20,127	)
Net unrealized appreciation       (depreciation)			18,552			3,291			27,228			5,282			3,249			(7,973	)
Total Net Assets		$	244,106		$	20,389		$	189,850		$	53,104		$	68,426		$	140,199
CAPITAL SHARES OUTSTANDING:
Class A			13,523			1,306			11,964			3,354			8,533			16,197
Class B			814			30			414			170			188			414
Class C			3,310			54			821			228			284			531
Class E			169			N/A			7			6			24			22
Class I			392			10			92			15			24			22
Class Y			1,371			11			1,477			42			133			36
NET ASSET VALUE PER SHARE:
Class A			$12.48			$14.45			$12.88			$13.94			$7.45			$8.14
Class B			$12.38			$14.35			$12.05			$13.63			$7.38			$8.08
Class C			$12.42			$14.38			$12.28			$13.78			$7.40			$8.09
Class E			$12.45			N/A			$13.01			$13.96			$7.47			$8.15
Class I			$12.50			$14.48			$13.27			$13.96			$7.49			$8.17
Class Y			$12.50			$14.46			$13.15			$13.94			$7.47			$8.13
+COST
Investments in unaffiliated       securities at cost		$	229,397		$	16,801		$	160,907		$	48,450		$	30		$	277
Investments in affiliated securities       at cost			––			––			––			––			65,104			148,020
Written options premiums received       at cost			––			––			––			66			––			––

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITES

Ivy Funds

AS OF SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands, except per share amounts)	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
ASSETS
Investments in unaffiliated       securities at market value+		$	337,332		$	252,845		$	252,349		$	498,908		$	182,106		$	623,590
Investments in affiliated       securities at market value+			––			––			––			––			––			2,135
Investments at Market             Value			337,332			252,845			252,349			498,908			182,106			625,725
Cash			––			––			––			––			30			––
Cash denominated in foreign       currencies at market value+			––			––			––			859			837			1,600
Restricted cash			––			––			––			––			525			––
Unrealized appreciation on       forward foreign currency       contracts			228			––			155			––			––			––
Investment securities sold       receivable			11,379			––			1,781			1,623			––			5,946
Dividends and interest       receivable			1,154			1,251			2,797			1,880			1,037			548
Capital shares sold receivable			244			242			468			4,505			253			1,756
Receivable from affiliates			151			––			6			8			1			––
Prepaid and other assets			49			46			31			66			41			54
Total Assets			350,537			254,384			257,587			507,849			184,830			635,629
LIABILITIES
Investment securities       purchased payable			1,172			––			6,107			6,184			532			10,919
Unrealized depreciation on       forward foreign currency       contracts			6,680			––			––			––			––			––
Capital shares redeemed payable			628			525			263			423			285			555
Trustees' fees payable			67			41			19			18			50			27
Overdraft due to custodian			167			25			810			158			––			29
Distribution and service fees       payable			110			73			69			120			71			135
Shareholder servicing payable			168			135			88			150			74			213
Investment management fee       payable			279			184			142			331			127			485
Accounting services fee payable			9			8			8			12			6			14
Written options at market value+			––			––			––			––			––			221
Other liabilities			52			46			88			469			27			154
Total Liabilities			9,332			1,037			7,594			7,865			1,172			12,752
Total Net Assets		$	341,205		$	253,347		$	249,993		$	499,984		$	183,658		$	622,877
NET ASSETS
Capital paid in (shares       authorized - unlimited)		$	412,758		$	417,148		$	303,875		$	517,721		$	398,286		$	616,501
Undistributed (distributions       in excess of) net       investment income			3,166			2,755			(2,331	)		4,337			1,667			46
Accumulated net realized loss			(93,611	)	(191,580		)		(73,767	)		(69,419	)	(236,572		)		(84,493	)
Net unrealized appreciation			18,892			25,024			22,216			47,345			20,277			90,823
Total Net Assets		$	341,205		$	253,347		$	249,993		$	499,984		$	183,658		$	622,877
CAPITAL SHARES OUTSTANDING:
Class A			21,774			8,586			13,216			20,169			4,129			33,824
Class B			1,815			508			587			1,021			180			1,499
Class C			4,049			1,017			1,906			4,379			1,245			2,666
Class E			40			3			83			106			3			8
Class I			492			1,421			2,992			4,474			1,123			6,185
Class Y			938			131			180			5,024			99			641
Advisor Class			174			37			N/A			N/A			N/A			5
NET ASSET VALUE PER SHARE:
Class A			$11.72			$21.74			$13.18			$14.37			$27.61			$13.99
Class B			$11.33			$20.80			$13.07			$13.15			$24.99			$12.29
Class C			$11.34			$20.93			$13.11			$13.16			$24.95			$12.61
Class E			$11.74			$21.83			$13.18			$14.45			$27.64			$14.10
Class I			$11.88			$21.86			$13.24			$14.48			$27.88			$14.26
Class Y			$11.81			$21.84			$13.21			$14.48			$27.69			$14.20
Advisor Class			$11.78			$22.04			N/A			N/A			N/A			$13.69
+COST
Investments in unaffiliated       securities at cost		$	311,983		$	227,839		$	230,238		$	451,214		$	161,893		$	531,697
Investments in affiliated       securities at cost			––			––			––			––			––			3,304
Cash denominated in foreign       currencies at cost			––			––			––			857			839			1,576
Written options premiums       received at cost			––			––			––			––			––			296

See Accompanying Notes to Financial Statements.

STATEMENT OF ASSETS AND LIABILITES

Ivy Funds

AS OF SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Balanced Fund				Ivy Global Natural Resources Fund			Ivy Real Estate Securities Fund			Ivy Bond Fund			Ivy Global Bond Fund			Ivy Mortgage Securities Fund
ASSETS
Investments in unaffiliated securities       at market value+		$	161,373		$	4,944,916		$	259,956		$	160,585		$	108,242		$	168,228
Investments in affiliated securities       at market value+			––			93,450			––			––			––			––
Investments at Market Value			161,373			5,038,366			259,956			160,585			108,242			168,228
Cash			––			––			––			––			18			21
Cash denominated in foreign       currencies at market value+			––			––	*		––			––			––			––
Unrealized appreciation on forward       foreign currency contracts			––			125			––			––			41			––
Investment securities sold receivable			1,282			58,803			3,013			3,907			531			––
Dividends and interest receivable			551			3,908			770			1,167			1,509			786
Capital shares sold receivable			158			22,513			256			422			1,327			147
Variation margin receivable			––			1,425			––			22			––			17
Receivable from affiliates			––			299			4			4			159			2
Prepaid and other assets			38			156			37			34			33			29
Total Assets			163,402			5,125,595			264,036			166,141			111,860			169,230
LIABILITIES
Investment securities purchased       payable			1,065			6,356			1,249			22,171			3,000			28,798
Variation margin payable			––			––			––			4			––			7
Unrealized depreciation on forward       foreign currency contracts			––			646			––			––			662			––
Capital shares redeemed payable			483			5,228			694			397			20			251
Distributions payable			––			––			––			43			––			53
Trustees' fees payable			14			334			45			7			1			28
Overdraft due to custodian			76			3,287			10			85			––			––
Distribution and service fees payable			78			1,878			42			56			18			48
Shareholder servicing payable			37			1,816			137			45			18			76
Investment management fee payable			92			3,313			189			60			55			57
Accounting services fee payable			6			23			8			6			4			6
Other liabilities			14			686			31			60			37			95
Total Liabilities			1,865			23,567			2,405			22,934			3,815			29,419
Total Net Assets		$	161,537		$	5,102,028		$	261,631		$	143,207		$	108,045		$	139,811
NET ASSETS
Capital paid in (shares authorized -       unlimited)		$	147,611		$	7,112,982		$	351,528		$	151,112		$	104,998		$	216,703
Undistributed (distributions in excess       of) net investment income			218			(11,757	)		1,787			35			416			(812	)
Accumulated net realized loss			(12,195	)	(2,605,102		)	(110,478		)		(3,926	)		(191	)		(30,662	)
Net unrealized appreciation       (depreciation)			25,903			605,905			18,794			(4,014	)		2,822			(45,418	)
Total Net Assets		$	161,537		$	5,102,028		$	261,631		$	143,207		$	108,045		$	139,811
CAPITAL SHARES OUTSTANDING:
Class A			4,946			152,569			11,512			12,264			5,598			15,514
Class B			357			11,605			461			369			672			485
Class C			2,779			60,645			598			1,541			2,262			842
Class E			7			251			35			169			N/A			36
Class I			130			41,491			75			54			1,061			63
Class R			N/A			2,405			20			N/A			N/A			N/A
Class Y			2,297			36,891			6,740			555			1,160			354
Advisor Class			N/A			14			N/A			N/A			N/A			N/A
NET ASSET VALUE PER SHARE:
Class A			$15.37			$17.11			$13.46			$9.58			$10.05			$8.08
Class B			$15.32			$15.49			$13.34			$9.58			$10.05			$8.08
Class C			$15.34			$15.00			$13.38			$9.58			$10.05			$8.08
Class E			$15.38			$17.25			$13.47			$9.58			N/A			$8.08
Class I			$15.39			$17.35			$13.51			$9.58			$10.05			$8.08
Class R			N/A			$17.01			$13.46			N/A			N/A			N/A
Class Y			$15.37			$17.27			$13.46			$9.58			$10.05			$8.08
Advisor Class			N/A			$16.96			N/A			N/A			N/A			N/A
+COST
Investments in unaffiliated securities       at cost		$	135,471		$	4,329,505		$	241,162		$	164,557		$	104,803		$	213,393
Investments in affiliated securities       at cost			––			93,174			––			––			––			––
Cash denominated in foreign       currencies at cost			––			––	*		––			––			––			––

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands)	Ivy Dividend Opportunities Fund				Ivy Micro Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Value Fund			Ivy Managed European/ Pacific Fund			Ivy Managed International Opportunities Fund
INVESTMENT INCOME
Dividends from unaffiliated securities		$	3,042		$	4		$	998		$	562		$	––		$	––
Dividends from affiliated securities			––			––			––			––			––			83
Foreign dividend withholding tax			(24	)		––	*		––			(6	)		––			––
Interest and amortization from       unaffiliated securities			21			1			17			3			––	*		1
Total Investment Income			3,039			5			1,015			559			––	*		84
EXPENSES
Investment management fee			794			47			681			161			14			29
Distribution and service fees:
Class A			194			11			166			51			67			139
Class B			48			2			23			11			6			15
Class C			199			2			42			13			9			18
Class E			2			N/A			––	*		––	*		––	*		––	*
Class Y			20			––	*		17			1			1			––	*
Shareholder servicing:
Class A			282			20			397			137			57			87
Class B			32			1			26			17			3			5
Class C			59			1			27			12			2			3
Class E			14			N/A			––	*		––	*		––	*		––	*
Class I			3			––	*		1			––	*		––	*		––	*
Class Y			14			––	*		12			1			––	*		––	*
Registration fees			45			61			37			31			33			37
Custodian fees			5			11			8			7			1			2
Trustees' fees			5			––	*		4			2			1			2
Accounting services fee			46			2			35			15			12			18
Legal fees			3			2			2			––	*		––	*		1
Audit fees			14			7			19			12			9			9
Other			41			4			30			12			20			28
Total Expenses			1,820			171			1,527			483			235			393
Less:
Expenses in excess of limit			(11	)		(35	)		––			––			––			––
Total Net Expenses			1,809			136			1,527			483			235			393
Net Investment Income (Loss)			1,230			(131	)		(512	)		76			(235	)		(309	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated             securities		(11,535		)		390			3,227			(812	)		––			––
Investments in affiliated securities			––			––			––			––			(6,874	)		(5,509	)
Written options			––			––			9			139			––			––
Foreign currency exchange             transactions			––			––			5			––			––			––
Net change in unrealized appreciation       (depreciation) on:
Investments in unaffiliated             securities			63,534			3,336			39,058			15,880			––			––
Investments in affiliated securities			––			––			––			––			29,314			47,245
Written options			––			––			––			(27	)		––			––
Net Realized and Unrealized Gain			51,999			3,726			42,299			15,180			22,440			41,736
Net Increase in Net Assets                   Resulting from Operations		$	53,229		$	3,595		$	41,787		$	15,256		$	22,205		$	41,427

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands)	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
INVESTMENT INCOME
Dividends from unaffiliated       securities		$	6,652		$	6,011		$	3,739		$	7,732		$	3,432		$	6,191
Foreign dividend       withholding tax			(622	)		(506	)		(347	)		(581	)		(347	)		(444	)
Interest and amortization       from unaffiliated securities			239			6			1,670			32			10			71
Foreign interest       withholding tax			––			––			(30	)		––			––			––
Total Investment Income			6,269			5,511			5,032			7,183			3,095			5,818
EXPENSES
Investment management fee			1,578			1,093			793			1,532			669			2,417
Distribution and service fees:
Class A			296			204			193			276			100			466
Class B			98			48			36			54			21			74
Class C			222			97			114			211			141			127
Class E			1			––	*		1			2			––	*		––	*
Class Y			10			3			2			45			3			8
Shareholder servicing:
Class A			719			595			352			499			200			916
Class B			75			47			28			37			15			65
Class C			82			50			39			63			92			60
Class E			3			––	*		7			9			––	*		––	*
Class I			5			23			31			40			17			54
Class Y			8			2			2			29			2			6
Advisor Class			1			––	*		N/A			N/A			N/A			––	*
Registration fees			40			40			35			47			34			43
Custodian fees			41			34			50			57			67			220
Trustees' fees			14			9			6			7			9			10
Accounting services fee			52			45			45			59			35			73
Legal fees			4			2			2			3			2			5
Audit fees			22			22			24			21			20			23
Other			60			55			46			69			31			70
Total Expenses			3,331			2,369			1,806			3,060			1,458			4,637
Less:
Expenses in excess of limit			(151	)		––			(6	)		(8	)		(2	)		––
Total Net Expenses			3,180			2,369			1,800			3,052			1,456			4,637
Net Investment Income			3,089			3,142			3,232			4,131			1,639			1,181
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in             unaffiliated securities			2,275		(27,659		)	(49,070		)	26,411			(2,621		)	14,166
Futures contracts			––			––			––			––			––		(8,114		)
Written options			––			––			––			––			––			1,950
Swap agreements			––			––			––			––			––		(3,103		)
Forward foreign currency             contracts		(10,855		)		––		(1,092		)		658			(532	)		(737	)
Foreign currency             exchange transactions			40			3		(5,392		)		36			16			(87	)
Net change in unrealized       appreciation (depreciation) on:
Investments in unaffiliated             securities		106,988			104,475			121,639			103,231		(1)	51,458			187,745
Investments in affiliated             securities			––			––			––			––			––			845
Futures contracts			––			––			––			––			––			38
Written options			––			––			––			––			––			(93	)
Forward foreign currency             contracts		(3,899		)		––			1,757			(382	)		241			(282	)
Foreign currency            exchange transactions			45			72			30			69			42			(3	)
Net Realized and             Unrealized Gain			94,594			76,891			67,872			130,023			48,604			192,325
Net Increase in Net                  Assets Resulting                  from Operations		$	97,683		$	80,033		$	71,104		$	134,154		$	50,243		$	193,506

*Not shown due to rounding.
(1)Net of India deferred taxes of $405.

See Accompanying Notes to Financial Statements.

STATEMENT OF OPERATIONS

Ivy Funds

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2009 (UNAUDITED)

(In thousands)	Ivy Balanced Fund				Ivy Global Natural Resources Fund			Ivy Real Estate Securities Fund			Ivy Bond Fund		Ivy Global Bond Fund				Ivy Mortgage Securities Fund
INVESTMENT INCOME
Dividends from unaffiliated securities		$	1,429		$	23,111		$	4,961		$	11		$	––		$	––
Foreign dividend withholding tax			(7	)		(1,818	)		(1	)		––			––			––
Interest and amortization from       unaffiliated securities			906			956			14			3,391			2,125			4,024
Foreign interest withholding tax			––			(62	)		––			––	*		(15	)		––
Total Investment Income			2,328			22,187			4,974			3,402			2,110			4,024
EXPENSES
Investment management fee			556			17,452			979			336			263			354
Distribution and service fees:
Class A			90			2,851			163			134			54			158
Class B			25			795			27			18			32			21
Class C			225			3,866			34			67			85			37
Class E			––	*		4			––	*		2			N/A			––	*
Class R			N/A			84			1			N/A			N/A			N/A
Class Y			43			611			92			3			12			4
Shareholder servicing:
Class A			108			4,048			630			178			67			327
Class B			10			359			48			18			7			20
Class C			36			1,099			36			21			13			19
Class E			––	*		29			5			6			N/A			2
Class I			2			428			2			––	*		6			––	*
Class R			N/A			34			––	*		N/A			N/A			N/A
Class Y			27			426			56			2			8			3
Advisor Class			N/A			––	*		N/A			N/A			N/A			N/A
Registration fees			42			97			43			35			38			32
Custodian fees			6			533			8			12			8			12
Trustees' fees			5			105			9			3			1			6
Accounting services fee			35			138			46			34			24			34
Legal fees			3			39			2			2			1			2
Audit fees			12			33			21			15			16			28
Other			21			771			52			25			16			45
Total Expenses			1,246			33,802			2,254			911			651			1,104
Less:
Expenses in excess of limit			––			(301	)		(4	)		(4	)		(159	)		(2	)
Total Net Expenses			1,246			33,501			2,250			907			492			1,102
Net Investment Income (Loss)			1,082			(11,314	)		2,724			2,495			1,618			2,922
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities			(127	)		(282,252	)		(42,977	)		1,315			41		(7,041		)
Investments in affiliated securities			––			(3,496	)		––			––			––			––
Futures contracts			––			(70,994	)		––			365			––			352
Forward foreign currency contracts			––			(9,160	)		––			––			118			––
Foreign currency exchange             transactions			––			(1,310	)		––			––			(300	)		––
Net change in unrealized appreciation       (depreciation) on:
Investments in unaffiliated securities			26,455			1,953,824			142,760			9,924			5,935			13,397
Investments in affiliated securities			––			55,868			––			––			––			––
Futures contracts			––			(9,246	)		––			(88	)		––			283
Forward foreign currency contracts			––			1,561			––			––		(1,219		)		––
Foreign currency exchange             transactions			––			584			––			––			6			––
Net Realized and Unrealized Gain			26,328			1,635,379			99,783			11,516			4,581			6,991
Net Increase in Net Assets                  Resulting from Operations		$	27,410		$	1,624,065		$	102,507		$	14,011		$	6,199		$	9,913

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Dividend Opportunities Fund							Ivy Micro Cap Growth Fund						Ivy Small Cap Value Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)				Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09(1)			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	1,230		$	1,859		$	(131	)	$	(9	)	$	(512	)	$	(748	)
Net realized gain (loss) on       investments			(11,535	)		(28,939	)		390			(9	)		3,241			(22,368	)
Net change in unrealized       appreciation (depreciation)			63,534			(74,397	)		3,336			(45	)		39,058			(11,150	)
Net Increase (Decrease) in             Net Assets Resulting             from Operations			53,229		(101,477		)		3,595			(63	)		41,787			(34,266	)
Distributions to Shareholders From:
Net investment income:
Class A			(869	)		(1,466	)		––			––			––			––
Class B			(6	)		––			––			––			––			––
Class C			(94	)		(113	)		––			––			––			––
Class E			(12	)		(14	)		––			––			––			––
Class I			(42	)		(24	)		––			––			––			––
Class Y			(102	)		(216	)		––			––			––			––
Net realized gains:
Class A			––			––			––			––			––			––
Class B			––			––			––			––			––			––
Class C			––			––			––			––			––			––
Class E			––			––			––			––			––			––
Class I			––			––			––			––			––			––
Class Y			––			––			––			––			––			––
Total Distributions to             Shareholders			(1,125	)		(1,833	)		––			––			––			––
Capital Share Transactions			(5,608	)		103,758			13,070			3,787			22,978			27,436
Net Increase (Decrease)            in Net Assets			46,496			448			16,665			3,724			64,765			(6,830	)
Net Assets, Beginning                  of Period			197,610			197,162			3,724			––			125,085			131,915
Net Assets,                  End of Period		$	244,106		$	197,610		$	20,389		$	3,724		$	189,850		$	125,085
Undistributed (distributions in       excess of) net investment       income			$194			$89			$(132	)		$ ––			$(538	)		$(30	)

(1)For the period from February 17, 2009 (commencement of operations) through March 31, 2009.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Value Fund							Ivy Managed European/Pacific Fund						Ivy Managed International Opportunities Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)				Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09(1)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	76		$	449		$	(235	)	$	1,272		$	(309	)	$	2,992
Net realized loss on investments			(673	)		(5,406	)		(6,874	)	(16,117		)	(5,509		)	(13,644		)
Net change in unrealized       appreciation (depreciation)			15,853		(17,945		)		29,314		(16,293		)	47,245			(46,544		)
Net Increase (Decrease) in             Net Assets Resulting             from Operations			15,256		(22,902		)		22,205		(31,138		)	41,427			(57,196		)
Distributions to Shareholders From:
Net investment income:
Class A			(98	)		(399	)		––			(2,182	)	––				(4,021	)
Class B			––			––			––			(38	)	––				(91	)
Class C			––			––			––			(62	)	––				(115	)
Class E			(1	)		(1	)		––			(7	)	––				(6	)
Class I			(1	)		(1	)		––			(7	)	––				(7	)
Class Y			(2	)		(5	)		––			(12	)	––				(13	)
Net realized gains:
Class A			––			––			––			(2,320	)	––				(2,030	)
Class B			––			––			––			(50	)	––				(58	)
Class C			––			––			––			(78	)	––				(72	)
Class E			––			––			––			(7	)	––				(3	)
Class I			––			––			––			(7	)	––				(3	)
Class Y			––			––			––			(12	)	––				(7	)
Total Distributions to             Shareholders			(102	)		(406	)		––			(4,782	)	––				(6,426	)
Capital Share Transactions			(744	)		(3,475	)		4,743			19,299		9,197				44,889
Net Increase (Decrease)            in Net Assets			14,410		(26,783		)		26,948		(16,621		)	50,624			(18,733		)
Net Assets, Beginning                  of Period			38,694			65,477			41,478			58,099		89,575			108,308
Net Assets, End of Period		$	53,104		$	38,694		$	68,426		$	41,478		$	140,199		$	89,575
Undistributed (distributions in       excess of) net investment       income			$41			$67			$(215	)		$20			$(310	)		$(1	)

(1)Distributions from net investment income include $181 of return of capital.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Cundill Global Value Fund							Ivy European Opportunities Fund						Ivy International Balanced Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)				Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	3,089		$	4,838		$	3,142		$	14,577		$	3,232		$	6,927
Net realized loss on       investments			(8,540	)		(62,667	)		(27,656	)	(163,985		)		(55,554	)		(17,140	)
Net change in unrealized       appreciation (depreciation)			103,134		(111,474		)		104,547			(93,339	)		123,426		(121,178		)
Net Increase (Decrease)             in Net Assets Resulting             from Operations			97,683		(169,303		)		80,033		(242,747		)		71,104		(131,391		)
Distributions to Shareholders From:
Net investment income:
Class A			––			(716	)		––			(10,436	)		(264	)		(8,560	)
Class B			––			––			––			(583	)		(2	)		(377	)
Class C			––			––	*		––			(1,161	)		(29	)		(1,252	)
Class E			––			––			––			(4	)		(2	)		(35	)
Class I			––			(43	)		––			(2,572	)		(92	)		(2,276	)
Class Y			––			(88	)		––			(140	)		(3	)		(91	)
Advisor Class			––			(18	)		––			(53	)		––			––
Net realized gains:
Class A			––			(58	)		––			(12,966	)		––			(6,552	)
Class B			––			––			––			(947	)		––			(344	)
Class C			––			––	*		––			(1,754	)		––			(1,129	)
Class E			––			––			––			(4	)		––			(33	)
Class I			––			(1	)		––			(2,786	)		––			(1,961	)
Class Y			––			(2	)		––			(162	)		––			(66	)
Advisor Class			––			––	*		––			(58	)		––			––
Tax return of capital:
Class A			––			––			––			(190	)		––			––
Class B			––			––			––			(14	)		––			––
Class C			––			––			––			(26	)		––			––
Class E			––			––			––			––	*		––			––
Class I			––			––			––			(41	)		––			––
Class Y			––			––			––			(2	)		––			––
Advisor Class			––			––			––			(1	)		––			––
Total Distributions to             Shareholders			––			(926	)		––			(33,900	)		(392	)		(22,676	)
Capital Share Transactions			(34,400	)	(142,877		)		(13,093	)		(79,657	)		(11,066	)		(20,253	)
Net Increase (Decrease)             in Net Assets			63,283		(313,106		)		66,940		(356,304		)		59,646		(174,320		)
Net Assets, Beginning                   of Period			277,922			591,028			186,407			542,711			190,347			364,667
Net Assets,                  End of Period		$	341,205		$	277,922		$	253,347		$	186,407		$	249,993		$	190,347
Undistributed (distributions       in excess of) net       investment income			$3,166			$37			$2,755			$(390	)		$(2,331	)		$220

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy International Core Equity Fund						Ivy International Growth Fund						Ivy Pacific Opportunities Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)		Fiscal year ended 3-31-09
INCREASE (DECREASE) IN NET ASSETS
Operations:				��
Net investment income		$	4,131	$	3,910		$	1,639		$	1,721		$	1,181	$	1,372
Net realized gain (loss) on       investments			27,105		(95,975	)		(3,137	)		(39,249	)		4,075		(83,045	)
Net change in unrealized       appreciation (depreciation)			102,918		(64,495	)		51,741			(73,483	)		188,250	(141,763		)
Net Increase (Decrease)             in Net Assets Resulting             from Operations			134,154	(156,560		)		50,243		(111,011		)		193,506	(223,436		)
Distributions to Shareholders From:
Net investment income:
Class A			––		(2,871	)		––			(1,147	)		––		––
Class B			––		(63	)		––			(8	)		––		––
Class C			––		(324	)		––			(79	)		––		––
Class E			––		(8	)		––			(1	)		––		––
Class I			––		(732	)		––			(269	)		––		––
Class Y			––		(182	)		––			(24	)		––		––
Advisor Class			––		––			––			––			––		––
Net realized gains:
Class A			––		(4,958	)		––			––			––		(42,553	)
Class B			––		(314	)		––			––			––		(1,951	)
Class C			––		(1,101	)		––			––			––		(3,180	)
Class E			––		(27	)		––			––			––		(12	)
Class I			––		(940	)		––			––			––		(5,050	)
Class Y			––		(279	)		––			––			––		(682	)
Advisor Class			––		––			––			––			––		(8	)
Total Distributions to             Shareholders			––		(11,799	)		––			(1,528	)		––		(53,436	)
Capital Share Transactions			131,106		85,924			5,527			(9,855	)		115,725		15,258
Net Increase (Decrease)            in Net Assets			265,260		(82,435	)		55,770		(122,394		)		309,231	(261,614		)
Net Assets, Beginning                  of Period			234,724		317,159			127,888			250,282			313,646		575,260
Net Assets,                  End of Period		$	499,984	$	234,724		$	183,658		$	127,888		$	622,877	$	313,646
Undistributed (distributions       in excess of) net       investment income			$4,337		$170			$1,667			$12			$46		$(1,048	)

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Balanced Fund							Ivy Global Natural Resources Fund						Ivy Real Estate Securities Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)				Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)		$	1,082		$	1,369		$	(11,314	)	$	(10,609	)	$	2,724		$	6,610
Net realized loss on       investments			(127	)		(11,256	)		(367,212	)	(2,181,441		)		(42,977	)		(61,951	)
Net change in unrealized       appreciation       (depreciation)			26,455			(19,988	)		2,002,591		(2,511,707		)		142,760		(180,131		)
Net Increase (Decrease)             in Net Assets             Resulting from             Operations			27,410			(29,875	)		1,624,065		(4,703,757		)		102,507		(235,472		)
Distributions to Shareholders From:
Net investment income:
Class A			(472	)		(760	)		––			(2,745	)		(870	)		(3,439	)
Class B			(13	)		(6	)		––			––			(1	)		(35	)
Class C			(164	)		(113	)		––			––			(18	)		(83	)
Class E			(1	)		(1	)		––			––			(4	)		(6	)
Class I			(29	)		(4	)		––			(423	)		(10	)		(26	)
Class R			––			––			––			––			(2	)		(4	)
Class Y			(241	)		(419	)		––			(341	)		(831	)		(2,153	)
Advisor Class			––			––			––			––	*		––			––
Net realized gains:
Class A			––			––			––			(458,956	)		––			(83	)
Class B			––			––			––			(36,369	)		––			––	*
Class C			––			––			––			(170,204	)		––			(7	)
Class E			––			––			––			(576	)		––			––	*
Class I			––			––			––			(41,826	)		––			(1	)
Class R			––			––			––			(4,885	)		––			––	*
Class Y			––			––			––			(72,901	)		––			(38	)
Advisor Class			––			––			––			(41	)		––			––
Total Distributions to             Shareholders			(920	)		(1,303	)		––			(789,267	)		(1,736	)		(5,875	)
Capital Share Transactions			(24,552	)		94,080			647,791			149,426			(3,481	)		5,461
Net Increase (Decrease)            in Net Assets			1,938			62,902			2,271,856		(5,343,598		)		97,290		(235,886		)
Net Assets, Beginning                  of Period			159,599			96,697			2,830,172			8,173,770			164,341			400,227
Net Assets,                  End of Period		$	161,537		$	159,599		$	5,102,028		$	2,830,172		$	261,631		$	164,341
Undistributed (distributions       in excess of) net       investment income			$218			$56			$(11,757	)		$867			$1,787			$799

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

STATEMENT OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Bond Fund							Ivy Global Bond Fund						Ivy Mortgage Securities Fund
(In thousands)	Six months ended 9-30-09 (Unaudited)				Fiscal year ended 3-31-09			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09(1)			Six months ended 9-30-09 (Unaudited)			Fiscal year ended 3-31-09
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income		$	2,495		$	4,327		$	1,618		$	1,012		$	2,922		$	9,601
Net realized gain (loss)       on investments			1,680			(4,762	)		(141	)		(156	)		(6,689	)		(18,547	)
Net change in unrealized       appreciation       (depreciation)			9,836			(8,255	)		4,722			(1,900	)		13,680			(27,731	)
Net Increase (Decrease)             in Net Assets Resulting             from Operations			14,011			(8,690	)		6,199			(1,044	)		9,913			(36,677	)
Distributions to Shareholders From:
Net investment income:
Class A			(2,115	)		(4,133	)		(408	)		(407	)		(3,369	)		(10,499	)
Class B			(45	)		(86	)		(37	)		(46	)		(86	)		(342	)
Class C			(216	)		(270	)		(98	)		(91	)		(171	)		(606	)
Class E			(28	)		(40	)		––			––			(8	)		(15	)
Class I			(7	)		(8	)		(79	)		(87	)		(13	)		(14	)
Class Y			(49	)		(24	)		(90	)		(103	)		(87	)		(354	)
Net realized gains:
Class A			––			––			––			(330	)		––			––
Class B			––			––			––			(65	)		––			––
Class C			––			––			––			(126	)		––			––
Class E			––			––			––			––			––			––
Class I			––			––			––			(61	)		––			––
Class Y			––			––			––			(80	)		––			––
Total Distributions to             Shareholders			(2,460	)		(4,561	)		(712	)		(1,396	)		(3,734	)		(11,830	)
Capital Share Transactions			14,776			26,689			38,155			66,843			(15,818	)		(95,038	)
Net Increase (Decrease)             in Net Assets			26,327			13,438			43,642			64,403			(9,639	)	(143,545		)
Net Assets, Beginning                  of Period			116,880			103,442			64,403			––			149,450			292,995
Net Assets,                  End of Period		$	143,207		$	116,880		$	108,045		$	64,403		$	139,811		$	149,450
Undistributed (distributions       in excess of) net       investment income			$35			$––			$416			$(189	)		$(812	)		$––

(1)For the period from April 4, 2008 (commencement of operations) through March 31, 2009.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY DIVIDEND OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.86			$0.08	(2)		$2.61	(2)		2.69			$(0.07	)		$   ––			$(0.07	)
Fiscal year ended 3-31-2009		16.05		0.12	(2)		(6.19	)(2)		(6.07	)		(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2008		15.70		0.13	(2)		0.54	(2)		0.67			(0.14	)		(0.18	)		(0.32	)
Fiscal year ended 3-31-2007		14.41		0.17	(2)		1.49	(2)		1.66			(0.18	)		(0.19	)		(0.37	)
Fiscal year ended 3-31-2006		12.13		0.12	(2)		2.30	(2)		2.42			(0.11	)		(0.03	)		(0.14	)
Fiscal year ended 3-31-2005		11.07		0.09			1.10			1.19			(0.09	)		(0.04	)		(0.13	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.79		0.01	(2)		2.59	(2)		2.60			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2009		15.93		0.00			(6.14	)		(6.14	)		––			––			––
Fiscal year ended 3-31-2008		15.63		(0.03	)		0.53			0.50			(0.02	)		(0.18	)		(0.20	)
Fiscal year ended 3-31-2007		14.34		0.05			1.47			1.52			(0.04	)		(0.19	)		(0.23	)
Fiscal year ended 3-31-2006		12.09		0.01			2.28			2.29			(0.01	)		(0.03	)		(0.04	)
Fiscal year ended 3-31-2005		11.05		0.02			1.06			1.08			––			(0.04	)		(0.04	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.81		0.04	(2)		2.60	(2)		2.64			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009		15.95		0.03	(2)		(6.14	)(2)		(6.11	)		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2008		15.63		0.00			0.54			0.54			(0.04	)		(0.18	)		(0.22	)
Fiscal year ended 3-31-2007		14.34		0.07			1.47			1.54			(0.06	)		(0.19	)		(0.25	)
Fiscal year ended 3-31-2006		12.09		0.01			2.28			2.29			(0.01	)		(0.03	)		(0.04	)
Fiscal year ended 3-31-2005		11.05		0.01			1.07			1.08			––			(0.04	)		(0.04	)
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		9.84		0.08	(2)		2.60	(2)		2.68			(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2009		16.01		0.10			(6.17	)		(6.07	)		(0.10	)		––			(0.10	)
Fiscal year ended 3-31-2009(5)		15.76		(0.01	)(2)		0.51	(2)		0.50			(0.07	)		(0.18	)		(0.25	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.88		0.09	(2)		2.62	(2)		2.71			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2009		16.07		0.08	(2)		(6.10	)(2)		(6.02	)		(0.17	)		––			(0.17	)
Fiscal year ended 3-31-2009(5)		15.76		0.20			0.47			0.67			(0.18	)		(0.18	)		(0.36	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.87		0.09	(2)		2.62	(2)		2.71			(0.08	)		––			(0.08	)
Fiscal year ended 3-31-2009		16.06		0.14	(2)		(6.19	)(2)		(6.05	)		(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2008		15.70		0.14	(2)		0.55	(2)		0.69			(0.15	)		(0.18	)		(0.33	)
Fiscal year ended 3-31-2007		14.41		0.12	(2)		1.55	(2)		1.67			(0.19	)		(0.19	)		(0.38	)
Fiscal year ended 3-31-2006		12.13		0.15	(2)		2.29	(2)		2.44			(0.13	)		(0.03	)		(0.16	)
Fiscal year ended 3-31-2005		11.07		0.11			1.10			1.21			(0.11	)		(0.04	)		(0.15	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$12.48			27.25	%(3)		$169			1.45	%(4)		1.22	%(4)		––	%		––	%		22	%
Fiscal year ended 3-31-2009		9.86	- -37.92		(3)		133			1.40			1.00			––			––			30
Fiscal year ended 3-31-2008		16.05		4.10	(3)		148			1.37			0.77			––			––			30
Fiscal year ended 3-31-2007		15.70		11.57	(3)		107			1.38			1.16			––			––			24
Fiscal year ended 3-31-2006		14.41		19.99	(3)		61			1.45			0.92			––			––			15
Fiscal year ended 3-31-2005		12.13		10.78	(3)		32			1.59			0.94			––			––			32
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		12.38		26.54			10			2.53	(4)		0.16	(4)		––			––			22
Fiscal year ended 3-31-2009		9.79	- -38.54				9			2.43			- -0.04			––			––			30
Fiscal year ended 3-31-2008		15.93		3.09			11			2.34			- -0.16			––			––			30
Fiscal year ended 3-31-2007		15.63		10.63			10			2.30			0.29			––			––			24
Fiscal year ended 3-31-2006		14.34		18.94			7			2.32			0.03			––			––			15
Fiscal year ended 3-31-2005		12.09		9.76			6			2.44			0.11			––			––			32
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		12.42		26.90			41			2.13	(4)		0.56	(4)		––			––			22
Fiscal year ended 3-31-2009		9.81	- -38.33				37			2.11			0.39			––			––			30
Fiscal year ended 3-31-2008		15.95		3.32			24			2.15			0.00			––			––			30
Fiscal year ended 3-31-2007		15.63		10.74			19			2.17			0.42			––			––			24
Fiscal year ended 3-31-2006		14.34		18.95			14			2.27			0.08			––			––			15
Fiscal year ended 3-31-2005		12.09		9.76			10			2.42			0.10			––			––			32
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		12.45		27.26	(3)		2			1.37	(4)		1.31	(4)		2.55	(4)		0.13	(4)		22
Fiscal year ended 3-31-2009		9.84	- -37.98		(3)		2			1.60			0.78			2.27			0.11			30
Fiscal year ended 3-31-2009(5)		16.01		3.01	(3)		2			2.17	(4)		- -0.18	(4)		––			––			30	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		12.50		27.47			5			0.97	(4)		1.85	(4)		––			––			22
Fiscal year ended 3-31-2009		9.88	- -37.60				2			0.99			1.75			––			––			30
Fiscal year ended 3-31-2009(5)		16.07		4.08			––	*		1.00	(4)		1.17	(4)		––			––			30	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		12.50		27.44			17			1.25	(4)		1.39	(4)		––			––			22
Fiscal year ended 3-31-2009		9.87	- -37.79				15			1.24			1.08			––			––			30
Fiscal year ended 3-31-2008		16.06		4.23			12			1.26			0.78			––			––			30
Fiscal year ended 3-31-2007		15.70		11.65			3			1.29			0.92			––			––			24
Fiscal year ended 3-31-2006		14.41		20.14			1			1.34			1.03			––			––			15
Fiscal year ended 3-31-2005		12.13		10.94			1			1.44			1.09			––			––			32

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MICRO CAP GROWTH FUND
	Net Asset Value, Beginning of Period		Net Investment Loss			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.77			$(0.16	)(2)	$ 4.84		(2)	$ 4.68				$ ––		$ ––		$ ––
Fiscal year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		––		––		––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.76		(0.24	)(2)		4.83	(2)		4.59			––		––		––
Fiscal year ended 3-31-2009(5)		10.00		(0.04	)		(0.20	)		(0.24	)		––		––		––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.76		(0.22	)(2)		4.84	(2)		4.62			––		––		––
Fiscal year ended 3-31-2009(5)		10.00		(0.03	)		(0.21	)		(0.24	)		––		––		––
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.77		(0.14	)(2)		4.85	(2)		4.71			––		––		––
Fiscal year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		––		––		––
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.77		(0.16	)(2)		4.85	(2)		4.69			––		––		––
Fiscal year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		––		––		––

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$14.45			47.90	%(3)		$19			2.69	%(4)		- -2.59	%(4)		3.41	%(4)		- -3.31	%(4)		27	%
Fiscal year ended 3-31-2009(5)		9.77		- -2.30	(3)		3			2.55	(4)		- -2.38	(4)		––			––			5
Class B Shares
Six-month period ended       9-30-2009 (unaudited)	14.35			47.03			––	*		3.98	(4)		- -3.87	(4)		4.45	(4)		- -4.34	(4)		27
Fiscal year ended 3-31-2009(5)		9.76		- -2.40			––	*		3.49	(4)		- -3.32	(4)		––			––			5
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		14.38		47.34			1			3.63	(4)		- -3.53	(4)		4.10	(4)		- -4.00	(4)		27
Fiscal year ended 3-31-2009(5)		9.76		- -2.40			––	*		3.24	(4)		- -3.07	(4)		––			––			5
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		14.48		48.21			––	*		2.38	(4)		- -2.25	(4)		2.89	(4)		- -2.76	(4)		27
Fiscal year ended 3-31-2009(5)		9.77		- -2.30			––	*		1.97	(4)		- -1.80	(4)		––			––			5
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		14.46		48.00			––	*		2.64	(4)		- -2.52	(4)		3.10	(4)		- -2.98	(4)		27
Fiscal year ended 3-31-2009(5)		9.77		- -2.30			––	*		2.21	(4)		- -2.03	(4)		––			––			5

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from February 17, 2009 (commencement of operations of the class) through March 31, 2009.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP VALUE FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.87			$(0.03	)(1)	$ 3.04		(1)	$ 3.01				$ ––		$    ––			$    ––
Fiscal year ended 3-31-2009		12.96		(0.06	)		(3.03	)		(3.09	)		––		––			––
Fiscal year ended 3-31-2008		16.22		(0.10	)		(2.28	)		(2.38	)		––		(0.88	)		(0.88	)
Fiscal year ended 3-31-2007		16.24		(0.03	)		1.35			1.32			––		(1.34	)		(1.34	)
Fiscal year ended 3-31-2006		16.88		(0.11	)		2.62			2.51			––		(3.15	)		(3.15	)
Fiscal year ended 3-31-2005		16.68		(0.13	)		1.52			1.39			––		(1.19	)		(1.19	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.29		(0.10	)(1)		2.86	(1)		2.76			––		––			––
Fiscal year ended 3-31-2009		12.34		(0.23	)		(2.82	)		(3.05	)		––		––			––
Fiscal year ended 3-31-2008		15.48		(0.35	)		(2.08	)		(2.43	)		––		(0.71	)		(0.71	)
Fiscal year ended 3-31-2007		15.72		(0.14	)		1.24			1.10			––		(1.34	)		(1.34	)
Fiscal year ended 3-31-2006		16.59		(0.25	)		2.53			2.28			––		(3.15	)		(3.15	)
Fiscal year ended 3-31-2005		16.61		(0.23	)		1.40			1.17			––		(1.19	)		(1.19	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.45		(0.08	)(1)		2.91	(1)		2.83			––		––			––
Fiscal year ended 3-31-2009		12.51		(0.11	)		(2.95	)		(3.06	)		––		––			––
Fiscal year ended 3-31-2008		15.69		(0.28	)		(2.14	)		(2.42	)		––		(0.76	)		(0.76	)
Fiscal year ended 3-31-2007		15.87		(0.12	)		1.28			1.16			––		(1.34	)		(1.34	)
Fiscal year ended 3-31-2006		16.67		(0.21	)		2.56			2.35			––		(3.15	)		(3.15	)
Fiscal year ended 3-31-2005		16.63		(0.19	)		1.42			1.23			––		(1.19	)		(1.19	)
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		9.94		0.00	(1)		3.07	(1)		3.07			––		––			––
Fiscal year ended 3-31-2009		12.98		0.01			(3.05	)		(3.04	)		––		––			––
Fiscal year ended 3-31-2008(5)		16.23		(0.02	)		(2.30	)		(2.32	)		––		(0.93	)		(0.93	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		10.13		0.00	(1)		3.14	(1)		3.14			––		––			––
Fiscal year ended 3-31-2009		13.20		0.02	(1)		(3.09	)(1)		(3.07	)		––		––			––
Fiscal year ended 3-31-2008(5)		16.43		(0.01	)		(2.26	)		(2.27	)		––		(0.96	)		(0.96	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		10.05		(0.01	)(1)		3.11	(1)		3.10			––		––			––
Fiscal year ended 3-31-2009		13.13		(0.01	)(1)		(3.07	)(1)		(3.08	)		––		––			––
Fiscal year ended 3-31-2008		16.42		(0.04	)(1)		(2.32	)(1)		(2.36	)		––		(0.93	)		(0.93	)
Fiscal year ended 3-31-2007		16.36		0.03			1.37			1.40			––		(1.34	)		(1.34	)
Fiscal year ended 3-31-2006		16.92		(0.06	)		2.65			2.59			––		(3.15	)		(3.15	)
Fiscal year ended 3-31-2005		16.68		(0.10	)		1.53			1.43			––		(1.19	)		(1.19	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)		$12.88		30.50	%(2)		$154			1.87	%(3)		- -0.61	%(3)		53	%
Fiscal year ended 3-31-2009		9.87	- -23.84		(2)		106			1.93			- -0.54			101
Fiscal year ended 3-31-2008		12.96	- -15.19		(2)		104			1.76			- -0.63			118
Fiscal year ended 3-31-2007		16.22		8.26	(2)		121			1.74			- -0.24			123
Fiscal year ended 3-31-2006		16.24		16.44	(2)		86			1.80			- -0.76			157
Fiscal year ended 3-31-2005		16.88		8.23	(2)		66			1.76			- -0.79			124
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		12.05		29.71			5			3.15	(3)		- -1.89	(3)		53
Fiscal year ended 3-31-2009		9.29	- -24.72				4			3.04			- -1.67			101
Fiscal year ended 3-31-2008		12.34	- -16.14				5			2.83			- -1.69			118
Fiscal year ended 3-31-2007		15.48		7.11			9			2.82			- -1.33			123
Fiscal year ended 3-31-2006		15.72		15.28			7			2.84			- -1.80			157
Fiscal year ended 3-31-2005		16.59		6.92			5			3.02			- -1.88			124
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		12.28		29.95			10			2.66	(3)		- -1.40	(3)		53
Fiscal year ended 3-31-2009		9.45	- -24.46				6			2.72			- -1.34			101
Fiscal year ended 3-31-2008		12.51	- -15.91				8			2.54			- -1.40			118
Fiscal year ended 3-31-2007		15.69		7.43			12			2.52			- -1.04			123
Fiscal year ended 3-31-2006		15.87		15.64			10			2.54			- -1.50			157
Fiscal year ended 3-31-2005		16.67		7.28			8			2.65			- -1.53			124
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		13.01		30.89	(2)		––	*		1.29	(3)		- -0.03	(3)		53
Fiscal year ended 3-31-2009		9.94	- -23.42		(2)		––	*		1.30			0.07			101
Fiscal year ended 3-31-2008(5)		12.98	- -14.82		(2)		––	*		1.26	(3)		- -0.14	(3)		118	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		13.27		31.00			1			1.26	(3)		0.01	(3)		53
Fiscal year ended 3-31-2009		10.13	- -23.26				1			1.18			0.20			101
Fiscal year ended 3-31-2008(5)		13.20	- -14.39				––	*		1.19	(3)		- -0.07	(3)		118	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		13.15		30.85			19			1.42	(3)		- -0.12	(3)		53
Fiscal year ended 3-31-2009		10.05	- -23.46				8			1.42			- -0.06			101
Fiscal year ended 3-31-2008		13.13	- -14.89				14			1.39			- -0.25			118
Fiscal year ended 3-31-2007		16.42		8.70			21			1.39			0.08			123
Fiscal year ended 3-31-2006		16.36		16.88			24			1.41			- -0.37			157
Fiscal year ended 3-31-2005		16.92		8.48			25			1.53			- -0.56			124

*Not shown due to rounding.
(1)Based on average weekly shares outstanding.
(2)Total return calculated without taking into account the sales load deducted on an initial purchase.
(3)Annualized.
(4)Class is closed to investment.
(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY VALUE FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.94		$ 0.03		(1)	$ 4.00		(1)	$ 4.03				$(0.03	)		$    ––			$(0.03	)
Fiscal year ended 3-31-2009		15.95		0.13			(6.03	)		(5.90	)		(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2008		19.04		0.12			(1.85	)		(1.73	)		(0.12	)		(1.24	)		(1.36	)
Fiscal year ended 3-31-2007		17.17		0.13			2.28			2.41			(0.13	)		(0.41	)		(0.54	)
Fiscal year ended 3-31-2006		16.04		0.10			1.14			1.24			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2005		14.54		0.15			1.48			1.63			(0.13	)		––			(0.13	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.78		(0.07	)(1)		3.92	(1)		3.85			––			––			––
Fiscal year ended 3-31-2009		15.76		(0.10	)		(5.88	)		(5.98	)		––			––			––
Fiscal year ended 3-31-2008		18.83		(0.09	)		(1.80	)		(1.89	)		––			(1.18	)		(1.18	)
Fiscal year ended 3-31-2007		17.04		(0.03	)		2.23			2.20			––			(0.41	)		(0.41	)
Fiscal year ended 3-31-2006		15.97		(0.04	)		1.12			1.08			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2005		14.50		0.03			1.44			1.47			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.86		(0.03	)(1)		3.95	(1)		3.92			––			––			––
Fiscal year ended 3-31-2009		15.83		0.00	(1)		(5.97	)(1)		(5.97	)		––			––			––
Fiscal year ended 3-31-2008		18.90		(0.06	)		(1.81	)		(1.87	)		––			(1.20	)		(1.20	)
Fiscal year ended 3-31-2007		17.08		(0.01	)		2.24			2.23			––			(0.41	)		(0.41	)
Fiscal year ended 3-31-2006		16.00		(0.04	)		1.13			1.09			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2005		14.51		0.03			1.46			1.49			––			––			––
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		9.95		0.07	(1)		4.01	(1)		4.08			(0.07	)		––			(0.07	)
Fiscal year ended 3-31-2009		15.97		0.20			(6.04	)		(5.84	)		(0.18	)		––			(0.18	)
Fiscal year ended 3-31-2008(5)		19.09		0.18			(1.90	)		(1.72	)		(0.16	)		(1.24	)		(1.40	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.95		0.07	(1)		4.02	(1)		4.09			(0.08	)		––			(0.08	)
Fiscal year ended 3-31-2009		15.97		0.22			(6.04	)		(5.82	)		(0.20	)		––			(0.20	)
Fiscal year ended 3-31-2008(5)		19.10		0.20			(1.90	)		(1.70	)		(0.19	)		(1.24	)		(1.43	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.95		0.05	(1)		4.00	(1)		4.05			(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2009		15.96		0.26			(6.11	)		(5.85	)		(0.16	)		––			(0.16	)
Fiscal year ended 3-31-2008		19.04		0.16	(1)		(1.85	)(1)		(1.69	)		(0.15	)		(1.24	)		(1.39	)
Fiscal year ended 3-31-2007		17.18		0.22	(1)		2.22	(1)		2.44			(0.17	)		(0.41	)		(0.58	)
Fiscal year ended 3-31-2006		16.05		0.13			1.15			1.28			(0.15	)		––			(0.15	)
Fiscal year ended 3-31-2005		14.54		0.17			1.49			1.66			(0.15	)		––			(0.15	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)		$13.94		40.58	%(2)		$47			1.97	%(3)		0.46	%(3)		47	%
Fiscal year ended 3-31-2009		9.94	- -37.09		(2)		34			1.79			0.98			57
Fiscal year ended 3-31-2008		15.95		- -9.83	(2)		57			1.52			0.63			66
Fiscal year ended 3-31-2007		19.04		14.12	(2)		73			1.49			0.76			61
Fiscal year ended 3-31-2006		17.17		7.75	(2)		58			1.53			0.65			63
Fiscal year ended 3-31-2005		16.04		11.21	(2)		41			1.47			0.92			81
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		13.63		39.37			2			3.64	(3)		- -1.20	(3)		47
Fiscal year ended 3-31-2009		9.78	- -37.94				2			3.08			- -0.35			57
Fiscal year ended 3-31-2008		15.76	- -10.72				4			2.51			- -0.35			66
Fiscal year ended 3-31-2007		18.83		12.99			6			2.46			- -0.21			61
Fiscal year ended 3-31-2006		17.04		6.73			5			2.50			- -0.33			63
Fiscal year ended 3-31-2005		15.97		10.14			2			2.53			0.07			81
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		13.78		39.76			3			3.01	(3)		- -0.56	(3)		47
Fiscal year ended 3-31-2009		9.86	- -37.71				2			2.79			0.01			57
Fiscal year ended 3-31-2008		15.83	- -10.56				4			2.41			- -0.25			66
Fiscal year ended 3-31-2007		18.90		13.09			5			2.38			- -0.12			61
Fiscal year ended 3-31-2006		17.08		6.80			4			2.41			- -0.23			63
Fiscal year ended 3-31-2005		16.00		10.27			3			2.42			0.15			81
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		13.96		41.06	(2)		––	*		1.31	(3)		1.12	(3)		47
Fiscal year ended 3-31-2009		9.95	- -36.75		(2)		––	*		1.25			1.52			57
Fiscal year ended 3-31-2008(5)		15.97		- -9.76	(2)		––	*		1.18	(3)		0.98	(3)		66	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		13.96		41.15			––	*		1.18	(3)		1.24	(3)		47
Fiscal year ended 3-31-2009		9.95	- -36.67				––	*		1.11			1.66			57
Fiscal year ended 3-31-2008(5)		15.97		- -9.63			––	*		1.07	(3)		1.09	(3)		66	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		13.94		40.73			1			1.63	(3)		0.81	(3)		47
Fiscal year ended 3-31-2009		9.95	- -36.80				––	*		1.40			1.41			57
Fiscal year ended 3-31-2008		15.96		- -9.60			––	*		1.31			0.85			66
Fiscal year ended 3-31-2007		19.04		14.28			––	*		1.29			0.96			61
Fiscal year ended 3-31-2006		17.18		7.99			12			1.31			0.89			63
Fiscal year ended 3-31-2005		16.05		11.44			20			1.34			1.09			81

*Not shown due to rounding.
(1)Based on average weekly shares outstanding.
(2)Total return calculated without taking into account the sales load deducted on an initial purchase.
(3)Annualized.
(4)Class is closed to investment.
(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED EUROPEAN/PACIFIC FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 4.90			$(0.03	)(2)	$ 2.58		(2)	$ 2.55				$    ––			$    ––			$    ––
Fiscal year ended 3-31-2009		9.81		0.19			(4.46	)		(4.27	)		(0.31	)		(0.33	)		(0.64	)
Fiscal year ended 3-31-2008(5)		10.00		0.47	(2)		(0.15	)(2)		0.32			(0.51	)		––			(0.51	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		4.86		(0.06	)(2)		2.58	(2)		2.52			––			––			––
Fiscal year ended 3-31-2009		9.78		0.12			(4.46	)		(4.34	)		(0.25	)		(0.33	)		(0.58	)
Fiscal year ended 3-31-2008(5)		10.00		0.44	(2)		(0.21	)(2)		0.23			(0.45	)		––			(0.45	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		4.87		(0.05	)(2)		2.58	(2)		2.53			––			––			––
Fiscal year ended 3-31-2009		9.79		0.13			(4.46	)		(4.33	)		(0.26	)		(0.33	)		(0.59	)
Fiscal year ended 3-31-2008(5)		10.00		0.45	(2)		(0.21	)(2)		0.24			(0.45	)		––			(0.45	)
Class E Shares(6)
Six-month period ended       9-30-2009 (unaudited)		4.91		(0.02	)(2)		2.58	(2)		2.56			––			––			––
Fiscal year ended 3-31-2009		9.81		0.20			(4.45	)		(4.25	)		(0.32	)		(0.33	)		(0.65	)
Fiscal year ended 3-31-2008(5)		10.00		0.49	(2)		(0.16	)(2)		0.33			(0.52	)		––			(0.52	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		4.92		(0.01	)(2)		2.58	(2)		2.57			––			––			––
Fiscal year ended 3-31-2009		9.82		0.21			(4.45	)		(4.24	)		(0.33	)		(0.33	)		(0.66	)
Fiscal year ended 3-31-2008(5)		10.00		0.52	(2)		(0.16	)(2)		0.36			(0.54	)		––			(0.54	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		4.91		(0.02	)(2)		2.58	(2)		2.56			––			––			––
Fiscal year ended 3-31-2009		9.81		0.19			(4.45	)		(4.26	)		(0.31	)		(0.33	)		(0.64	)
Fiscal year ended 3-31-2008(5)		10.00		0.49	(2)		(0.16	)(2)		0.33			(0.52	)		––			(0.52	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$7.45			52.04	%(3)		$64			0.78	%(4)		- -0.78	%(4)		––	%		––	%		13	%
Fiscal year ended 3-31-2009		4.90	- -43.93		(3)		39			0.72			2.51			––			––			25
Fiscal year ended 3-31-2008(5)		9.81		2.67	(3)		54			0.88	(4)		6.52	(4)		0.89	(4)		6.51	(4)		––	*
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		7.38		51.85			1			1.81	(4)		- -1.81	(4)		––			––			13
Fiscal year ended 3-31-2009		4.86	- -44.75				1			1.70			1.53			––			––			25
Fiscal year ended 3-31-2008(5)		9.78		1.87			1			1.77	(4)		5.43	(4)		1.78	(4)		5.42	(4)		––	*
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		7.40		51.95			2			1.53	(4)		- -1.53	(4)		––			––			13
Fiscal year ended 3-31-2009		4.87	- -44.59				1			1.52			1.53			––			––			25
Fiscal year ended 3-31-2008(5)		9.79		1.90			3			1.65	(4)		6.18	(4)		1.66	(4)		6.17	(4)		––	*
Class E Shares(6)
Six-month period ended       9-30-2009 (unaudited)		7.47		52.14	(3)		––	*		0.52	(4)		- -0.52	(4)		––			––			13
Fiscal year ended 3-31-2009		4.91	- -43.74		(3)		––	*		0.53			2.49			––			––			25
Fiscal year ended 3-31-2008(5)		9.81		2.79	(3)		––	*		0.79	(4)		4.44	(4)		0.80	(4)		4.43	(4)		––	*
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		7.49		52.24			––	*		0.27	(4)		- -0.27	(4)		––			––			13
Fiscal year ended 3-31-2009		4.92	- -43.56				––	*		0.27			2.73			––			––			25
Fiscal year ended 3-31-2008(5)		9.82		3.07			––	*		0.55	(4)		4.67	(4)		0.56	(4)		4.66	(4)		––	*
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		7.47		52.14			1			0.67	(4)		- -0.67	(4)		––			––			13
Fiscal year ended 3-31-2009		4.91	- -43.84				––	*		0.73			2.45			––			––			25
Fiscal year ended 3-31-2008(5)		9.81		2.77			––	*		0.81	(4)		4.76	(4)		0.82	(4)		4.75	(4)		––	*

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)Class is closed to investment.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 5.62			$(0.02	)(2)	$ 2.54		(2)	$ 2.52			$    ––				$    ––			$    ––
Fiscal year ended 3-31-2009		10.06		0.21			(4.21	)		(4.00	)		(0.29	)		(0.15	)		(0.44	)
Fiscal year ended 3-31-2008(5)		10.00		0.35	(2)		0.04	(2)		0.39			(0.33	)		––			(0.33	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		5.59		(0.05	)(2)		2.54	(2)		2.49			––			––			––
Fiscal year ended 3-31-2009		10.04		0.16	(2)		(4.23	)(2)		(4.07	)		(0.23	)		(0.15	)		(0.38	)
Fiscal year ended 3-31-2008(5)		10.00		0.33	(2)		(0.02	)(2)		0.31			(0.27	)		––			(0.27	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		5.59		(0.04	)(2)		2.54	(2)		2.50			––			––			––
Fiscal year ended 3-31-2009		10.04		0.15	(2)		(4.22	)(2)		(4.07	)		(0.23	)		(0.15	)		(0.38	)
Fiscal year ended 3-31-2008(5)		10.00		0.30	(2)		0.02	(2)		0.32			(0.28	)		––			(0.28	)
Class E Shares(6)
Six-month period ended       9-30-2009 (unaudited)		5.62		(0.01	)(2)		2.54	(2)		2.53			––			––			––
Fiscal year ended 3-31-2009		10.06		0.23			(4.23	)		(4.00	)		(0.30	)		(0.14	)		(0.44	)
Fiscal year ended 3-31-2008(5)		10.00		0.38	(2)		0.02	(2)		0.40			(0.34	)		––			(0.34	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		5.63		0.00	(2)		2.54	(2)		2.54			––			––			––
Fiscal year ended 3-31-2009		10.07		0.24			(4.21	)		(3.97	)		(0.32	)		(0.15	)		(0.47	)
Fiscal year ended 3-31-2008(5)		10.00		0.41	(2)		0.02	(2)		0.43			(0.36	)		––			(0.36	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		5.61		(0.02	)(2)		2.54	(2)		2.52			––			––			––
Fiscal year ended 3-31-2009		10.06		0.22			(4.22	)		(4.00	)		(0.30	)		(0.15	)		(0.45	)
Fiscal year ended 3-31-2008(5)		10.00		0.37	(2)		0.03	(2)		0.40			(0.34	)		––			(0.34	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.14			44.84	%(3)		$132			0.62	%(4)		- -0.48	%(4)		––	%		––	%		10	%
Fiscal year ended 3-31-2009		5.62	- -40.20		(3)		84			0.57			2.85			––			––			16
Fiscal year ended 3-31-2008(5)		10.06		3.75	(3)		100			0.67	(4)		4.67	(4)		0.68	(4)		4.66	(4)		––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		44.54			3			1.56	(4)		- -1.42	(4)		––			––			10
Fiscal year ended 3-31-2009		5.59	- -40.93				3			1.41			1.92			––			––			16
Fiscal year ended 3-31-2008(5)		10.04		2.98			4			1.48	(4)		4.05	(4)		1.49	(4)		4.04	(4)		––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.09		44.72			4			1.40	(4)		- -1.26	(4)		––			––			10
Fiscal year ended 3-31-2009		5.59	- -40.91				3			1.35			2.19			––			––			16
Fiscal year ended 3-31-2008(5)		10.04		3.05			4			1.44	(4)		3.70	(4)		1.45	(4)		3.69	(4)		––
Class E Shares(6)
Six-month period ended       9-30-2009 (unaudited)		8.15		45.02	(3)		––	*		0.44	(4)		- -0.30	(4)		––			––			10
Fiscal year ended 3-31-2009		5.62	- -40.12		(3)		––	*		0.45			2.83			––			––			16
Fiscal year ended 3-31-2008(5)		10.06		3.82	(3)		––	*		0.60	(4)		3.57	(4)		0.61	(4)		3.56	(4)		––
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		8.17		45.12			––	*		0.18	(4)		- -0.04	(4)		––			––			10
Fiscal year ended 3-31-2009		5.63	- -39.86				––	*		0.18			3.08			––			––			16
Fiscal year ended 3-31-2008(5)		10.07		4.10			––	*		0.36	(4)		3.81	(4)		0.37	(4)		3.80	(4)		––
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.13		44.92			––	*		0.61	(4)		- -0.45	(4)		––			––			10
Fiscal year ended 3-31-2009		5.61	- -40.21				––	*		0.59			2.56			0.60			2.55			16
Fiscal year ended 3-31-2008(5)		10.06		3.81			––	*		0.64	(4)		3.83	(4)		0.65	(4)		3.82	(4)		––

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)Class is closed to investment.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS

Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CUNDILL GLOBAL VALUE FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.55			$ 0.11	(2)		$3.06	(2)	$ 3.17			$    ––			$    ––			$    ––
Fiscal year ended 3-31-2009		12.97		0.16			(4.55	)		(4.39	)		(0.03	)		––	*		(0.03	)
Fiscal year ended 3-31-2008		16.28		0.18			(2.00	)		(1.82	)		(0.18	)		(1.31	)		(1.49	)
Fiscal year ended 3-31-2007		15.52		0.13			1.49			1.62			(0.11	)		(0.75	)		(0.86	)
Fiscal year ended 3-31-2006		13.79		0.17			2.21			2.38			(0.16	)		(0.49	)		(0.65	)
Fiscal year ended 3-31-2005		12.57		0.04			1.25			1.29			(0.07	)		––			(0.07	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.31		0.05	(2)		2.97	(2)		3.02			––			––			––
Fiscal year ended 3-31-2009		12.68		0.01			(4.38	)		(4.37	)		––			––			––
Fiscal year ended 3-31-2008		15.93		0.03	(2)		(1.93	)(2)		(1.90	)		(0.04	)		(1.31	)		(1.35	)
Fiscal year ended 3-31-2007		15.23		(0.01	)		1.46			1.45			––			(0.75	)		(0.75	)
Fiscal year ended 3-31-2006		13.54		0.06			2.14			2.20			(0.02	)		(0.49	)		(0.51	)
Fiscal year ended 3-31-2005		12.38		(0.01	)		1.17			1.16			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.30		0.07	(2)		2.97	(2)		3.04			––			––			––
Fiscal year ended 3-31-2009		12.62		0.06			(4.38	)		(4.32	)		––			––			––
Fiscal year ended 3-31-2008		15.88		0.05			(1.92	)		(1.87	)		(0.08	)		(1.31	)		(1.39	)
Fiscal year ended 3-31-2007		15.16		0.03			1.46			1.49			(0.02	)		(0.75	)		(0.77	)
Fiscal year ended 3-31-2006		13.48		0.08			2.14			2.22			(0.05	)		(0.49	)		(0.54	)
Fiscal year ended 3-31-2005		12.30		(0.02	)		1.20			1.18			––			––			––
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		8.55		0.12	(2)		3.07	(2)		3.19			––			––			––
Fiscal year ended 3-31-2009		12.93		0.10			(4.48	)		(4.38	)		––			––			––
Fiscal year ended 3-31-2008(6)		16.23		0.02	(2)		(1.87	)(2)		(1.85	)		(0.14	)		(1.31	)		(1.45	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		8.64		0.12	(2)		3.12	(2)		3.24			––			––			––
Fiscal year ended 3-31-2009		13.11		0.05	(2)		(4.43	)(2)		(4.38	)		(0.09	)		––	*		(0.09	)
Fiscal year ended 3-31-2008(6)		16.29		0.24	(2)		(1.87	)(2)		(1.63	)		(0.24	)		(1.31	)		(1.55	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.58		0.16	(2)		3.07	(2)		3.23			––			––			––
Fiscal year ended 3-31-2009		13.02		0.14	(2)		(4.49	)(2)		(4.35	)		(0.09	)		––	*		(0.09	)
Fiscal year ended 3-31-2008		16.33		0.25	(2)		(2.01	)(2)		(1.76	)		(0.24	)		(1.31	)		(1.55	)
Fiscal year ended 3-31-2007		15.56		0.19			1.49			1.68			(0.16	)		(0.75	)		(0.91	)
Fiscal year ended 3-31-2006		13.82		0.19			2.26			2.45			(0.22	)		(0.49	)		(0.71	)
Fiscal year ended 3-31-2005		12.58		0.07			1.29			1.36			(0.12	)		––			(0.12	)
Advisor Class Shares(5)
Six-month period ended       9-30-2009 (unaudited)		8.56		0.14	(2)		3.08	(2)		3.22			––			––			––
Fiscal year ended 3-31-2009		13.01		0.20			(4.54	)		(4.34	)		(0.11	)		––	*		(0.11	)
Fiscal year ended 3-31-2008		16.30		0.25			(1.97	)		(1.72	)		(0.26	)		(1.31	)		(1.57	)
Fiscal year ended 3-31-2007		15.54		0.21			1.49			1.70			(0.19	)		(0.75	)		(0.94	)
Fiscal year ended 3-31-2006		13.77		0.22			2.23			2.45			(0.19	)		(0.49	)		(0.68	)
Fiscal year ended 3-31-2005		12.54		0.04			1.32			1.36			(0.13	)		––			(0.13	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$11.72			37.08	%(3)		$255			1.89	%(4)		2.08	%(4)		2.00	%(4)		1.97	%(4)		17	%
Fiscal year ended 3-31-2009		8.55	- -33.87		(3)		207			1.81			1.26			––			––			43
Fiscal year ended 3-31-2008		12.97	- -12.07		(3)		443			1.59			1.05			––			––			39
Fiscal year ended 3-31-2007		16.28		10.71	(3)		688			1.55			0.81			––			––			42
Fiscal year ended 3-31-2006		15.52		17.49	(3)		625			1.62			1.09			––			––			4
Fiscal year ended 3-31-2005		13.79		10.29	(3)		321			1.74			0.08			––			––			5
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		11.33		36.34			21			2.91	(4)		1.08	(4)		––			––			17
Fiscal year ended 3-31-2009		8.31	- -34.46				17			2.71			0.35			––			––			43
Fiscal year ended 3-31-2008		12.68	- -12.83				37			2.48			0.18			––			––			39
Fiscal year ended 3-31-2007		15.93		9.82			59			2.44			- -0.07			––			––			42
Fiscal year ended 3-31-2006		15.23		16.43			57			2.51			0.21			––			––			4
Fiscal year ended 3-31-2005		13.54		9.37			37			2.62			- -0.86			––			––			5
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		11.34		36.63			46			2.51	(4)		1.49	(4)		––			––			17
Fiscal year ended 3-31-2009		8.30	- -34.23				40			2.42			0.72			––			––			43
Fiscal year ended 3-31-2008		12.62	- -12.65				99			2.25			0.37			––			––			39
Fiscal year ended 3-31-2007		15.88		10.03			233			2.21			0.15			––			––			42
Fiscal year ended 3-31-2006		15.16		16.70			211			2.28			0.43			––			––			4
Fiscal year ended 3-31-2005		13.48		9.59			96			2.42			- -0.62			––			––			5
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		11.74		37.31	(3)		––	*		1.59	(4)		2.25	(4)		2.80	(4)		1.04	(4)		17
Fiscal year ended 3-31-2009		8.55	- -33.87		(3)		––	*		1.93			0.98			2.72			0.19			43
Fiscal year ended 3-31-2008(6)		12.93	- -12.31		(3)		––	*		2.31	(4)		0.29	(4)		––			––			39	(7)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		11.88		37.50			6			1.33	(4)		2.24	(4)		––			––			17
Fiscal year ended 3-31-2009		8.64	- -33.46				4			1.25			1.25			––			––			43
Fiscal year ended 3-31-2008(6)		13.11	- -10.93				2			1.21	(4)		1.45	(4)		––			––			39	(7)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		11.81		37.65			11			1.21	(4)		3.02	(4)		1.57	(4)		2.66	(4)		17
Fiscal year ended 3-31-2009		8.58	- -33.44				9			1.19			1.59			1.50			1.28			43
Fiscal year ended 3-31-2008		13.02	- -11.73				8			1.20			1.42			1.45			1.17			39
Fiscal year ended 3-31-2007		16.33		11.14			15			1.20			1.18			1.42			0.96			42
Fiscal year ended 3-31-2006		15.56		17.99			17			1.19			1.46			1.46			1.19			4
Fiscal year ended 3-31-2005		13.82		10.90			10			1.20			0.52			1.56			0.16			5
Advisor Class Shares(5)
Six-month period ended       9-30-2009 (unaudited)		11.78		37.62			2			1.20	(4)		2.69	(4)		––			––			17
Fiscal year ended 3-31-2009		8.56	- -33.43				1			1.14			1.85			––			––			43
Fiscal year ended 3-31-2008		13.01	- -11.54				2			1.05			1.62			––			––			39
Fiscal year ended 3-31-2007		16.30		11.33			3			1.05			1.31			––			––			42
Fiscal year ended 3-31-2006		15.54		18.09			3			1.12			1.57			––			––			4
Fiscal year ended 3-31-2005		13.77		10.86			3			1.23			0.41			––			––			5

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)Class is closed to investment.
(6)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(7)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EUROPEAN OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$15.08		$ 0.26		(1)	$ 6.40		(1)	$ 6.66			$    ––			$    ––			$    ––
Fiscal year ended 3-31-2009		34.70		1.18			(18.18	)		(17.00	)		(1.16	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008		40.58		0.60			(1.98	)		(1.38	)		(0.50	)		(4.00	)		––
Fiscal year ended 3-31-2007		33.58		0.31			7.11			7.42			(0.42	)		––			––
Fiscal year ended 3-31-2006		28.31		0.10			5.37			5.47			(0.20	)		––			––
Fiscal year ended 3-31-2005		22.30		(0.03	)		6.05			6.02			(0.01	)		––			––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		14.50		0.16	(1)		6.14	(1)		6.30			––			––			––
Fiscal year ended 3-31-2009		33.35		1.06	(1)		(17.56	)(1)		(16.50	)		(0.89	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008		39.14		0.27	(1)		(1.90	)(1)		(1.63	)		(0.16	)		(4.00	)		––
Fiscal year ended 3-31-2007		32.40		0.09			6.78			6.87			(0.13	)		––			––
Fiscal year ended 3-31-2006		27.32		(0.11	)		5.19			5.08			––			––			––
Fiscal year ended 3-31-2005		21.66		(0.17	)		5.83			5.66			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		14.55		0.21	(1)		6.17	(1)		6.38			––			––			––
Fiscal year ended 3-31-2009		33.49		1.02			(17.54	)		(16.52	)		(0.96	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008		39.28		0.32			(1.91	)		(1.59	)		(0.20	)		(4.00	)		––
Fiscal year ended 3-31-2007		32.52		0.12			6.81			6.93			(0.17	)		––			––
Fiscal year ended 3-31-2006		27.42		(0.09	)		5.19			5.10			––			––			––
Fiscal year ended 3-31-2005		21.74		(0.14	)		5.82			5.68			––			––			––
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		15.08		0.32	(1)		6.43	(1)		6.75			––			––			––
Fiscal year ended 3-31-2009		34.73		1.09			(18.00	)		(16.91	)		(1.28	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008(5)		40.69		0.73			(2.11	)		(1.38	)		(0.58	)		(4.00	)		––
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		15.09		0.35	(1)		6.42	(1)		6.77			––			––			––
Fiscal year ended 3-31-2009		34.80		0.95	(1)		(17.87	)(1)		(16.92	)		(1.33	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008(5)		40.73		0.35	(1)		(1.61	)(1)		(1.26	)		(0.67	)		(4.00	)		––
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		15.10		0.30	(1)		6.44	(1)		6.74			––			––			––
Fiscal year ended 3-31-2009		34.75		1.20			(18.14	)		(16.94	)		(1.25	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008		40.61		0.61			(1.91	)		(1.30	)		(0.56	)		(4.00	)		––
Fiscal year ended 3-31-2007		33.60		0.44			7.05			7.49			(0.48	)		––			––
Fiscal year ended 3-31-2006		28.33		0.18			5.34			5.52			(0.25	)		––			––
Fiscal year ended 3-31-2005		22.30		0.09			6.00			6.09			(0.06	)		––			––
Advisor Class Shares(4)
Six-month period ended       9-30-2009 (unaudited)		15.22		0.36	(1)		6.46	(1)		6.82			––			––			––
Fiscal year ended 3-31-2009		35.07		1.61			(18.68	)		(17.07	)		(1.32	)		(1.44	)		(0.02	)
Fiscal year ended 3-31-2008		40.96		0.92			(2.13	)		(1.21	)		(0.68	)		(4.00	)		––
Fiscal year ended 3-31-2007		33.88		0.94			6.73			7.67			(0.59	)		––			––
Fiscal year ended 3-31-2006		28.55		0.35	(1)		5.32	(1)		5.67			(0.34	)		––			––
Fiscal year ended 3-31-2005		22.48		0.21			5.99			6.20			(0.13	)		––			––

	Total Distributions				Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)		$    ––				$21.74		44.16	%(2)		$187			2.15	%(3)		2.76	%(3)		55	%
Fiscal year ended 3-31-2009			(2.62	)		15.08	- -49.74		(2)		136			1.84			4.03			88
Fiscal year ended 3-31-2008			(4.50	)		34.70		- -4.52	(2)		390			1.58			1.43			65
Fiscal year ended 3-31-2007			(0.42	)		40.58		22.17	(2)		389			1.64			0.91			42
Fiscal year ended 3-31-2006			(0.20	)		33.58		19.41	(2)		235			1.72			0.35			62
Fiscal year ended 3-31-2005			(0.01	)		28.31		27.02	(2)		170			1.79			- -0.07			63
Class B Shares
Six-month period ended       9-30-2009 (unaudited)			––			20.80		43.45			11			3.16	(3)		1.81	(3)		55
Fiscal year ended 3-31-2009			(2.35	)		14.50	- -50.19				8			2.73			3.59			88
Fiscal year ended 3-31-2008			(4.16	)		33.35		- -5.27			37			2.35			0.68			65
Fiscal year ended 3-31-2007			(0.13	)		39.14		21.24			52			2.40			0.27			42
Fiscal year ended 3-31-2006			––			32.40		18.59			44			2.45			- -0.30			62
Fiscal year ended 3-31-2005			––			27.32		26.13			40			2.53			- -0.73			63
Class C Shares
Six-month period ended       9-30-2009 (unaudited)			––			20.93		43.85			21			2.68	(3)		2.29	(3)		55
Fiscal year ended 3-31-2009			(2.42	)		14.55	- -50.07				16			2.47			3.55			88
Fiscal year ended 3-31-2008			(4.20	)		33.49		- -5.16			57			2.26			0.78			65
Fiscal year ended 3-31-2007			(0.17	)		39.28		21.33			65			2.32			0.32			42
Fiscal year ended 3-31-2006			––			32.52		18.60			51			2.42			- -0.29			62
Fiscal year ended 3-31-2005			––			27.42		26.13			45			2.51			- -0.79			63
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)			––			21.83		44.76	(2)		––	*		1.43	(3)		3.42	(3)		55
Fiscal year ended 3-31-2009			(2.74	)		15.08	- -49.46		(2)		––	*		1.36			4.14			88
Fiscal year ended 3-31-2008(5)			(4.58	)		34.73		- -4.52	(2)		––	*		1.28	(3)		1.78	(3)		65	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)			––			21.86		44.86			31			1.28	(3)		3.71	(3)		55
Fiscal year ended 3-31-2009			(2.79	)		15.09	- -49.39				23			1.22			4.08			88
Fiscal year ended 3-31-2008(5)			(4.67	)		34.80		- -4.24			53			1.17	(3)		1.44	(3)		65	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)			––			21.84		44.64			3			1.58	(3)		3.21	(3)		55
Fiscal year ended 3-31-2009			(2.71	)		15.10	- -49.52				2			1.49			4.27			88
Fiscal year ended 3-31-2008			(4.56	)		34.75		- -4.33			4			1.41			1.60			65
Fiscal year ended 3-31-2007			(0.48	)		40.61		22.38			7			1.44			1.14			42
Fiscal year ended 3-31-2006			(0.25	)		33.60		19.60			4			1.55			0.60			62
Fiscal year ended 3-31-2005			(0.06	)		28.33		27.32			4			1.61			0.53			63
Advisor Class Shares(4)
Six-month period ended       9-30-2009 (unaudited)			––			22.04		44.81			1			1.32	(3)		3.81	(3)		55
Fiscal year ended 3-31-2009			(2.78	)		15.22	- -49.44				1			1.29			4.55			88
Fiscal year ended 3-31-2008			(4.68	)		35.07		- -4.12			2			1.15			1.94			65
Fiscal year ended 3-31-2007			(0.59	)		40.96		22.76			2			1.19			1.60			42
Fiscal year ended 3-31-2006			(0.34	)		33.88		20.00			2			1.25			1.13			62
Fiscal year ended 3-31-2005			(0.13	)		28.55		27.64			4			1.36			0.51			63

*Not shown due to rounding.
(1)Based on average weekly shares outstanding.
(2)Total return calculated without taking into account the sales load deducted on an initial purchase.
(3)Annualized.
(4)Class is closed to investment.
(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL BALANCED FUND
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.56			$0.17	(2)	$ 3.47		(2)	$ 3.64			$(0.02		)	$   ––			$(0.02		)
Fiscal year ended 3-31-2009		16.36		0.33			(6.08	)		(5.75	)		(0.57	)		(0.48	)		(1.05	)
Fiscal year ended 3-31-2008		16.81		0.37			0.14			0.51			(0.55	)		(0.41	)		(0.96	)
Fiscal year ended 3-31-2007		15.15		0.24	(2)		2.36	(2)		2.60			(0.43	)		(0.51	)		(0.94	)
Fiscal year ended 3-31-2006		14.63		0.29			1.14			1.43			(0.36	)		(0.55	)		(0.91	)
Fiscal year ended 3-31-2005		13.07		0.22			1.69			1.91			(0.28	)		(0.07	)		(0.35	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.52		0.10	(2)		3.45	(2)		3.55			––	*		––			––	*
Fiscal year ended 3-31-2009		16.31		0.16			(6.01	)		(5.85	)		(0.46	)		(0.48	)		(0.94	)
Fiscal year ended 3-31-2008		16.77		0.20			0.14			0.34			(0.39	)		(0.41	)		(0.80	)
Fiscal year ended 3-31-2007		15.11		0.07	(2)		2.37	(2)		2.44			(0.27	)		(0.51	)		(0.78	)
Fiscal year ended 3-31-2006		14.59		0.08			1.18			1.26			(0.19	)		(0.55	)		(0.74	)
Fiscal year ended 3-31-2005		13.04		0.03	(2)		1.70	(2)		1.73			(0.11	)		(0.07	)		(0.18	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.53		0.13	(2)		3.47	(2)		3.60			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009		16.33		0.20			(6.03	)		(5.83	)		(0.49	)		(0.48	)		(0.97	)
Fiscal year ended 3-31-2008		16.78		0.24			0.15			0.39			(0.43	)		(0.41	)		(0.84	)
Fiscal year ended 3-31-2007		15.12		0.11	(2)		2.37	(2)		2.48			(0.31	)		(0.51	)		(0.82	)
Fiscal year ended 3-31-2006		14.60		0.11			1.19			1.30			(0.23	)		(0.55	)		(0.78	)
Fiscal year ended 3-31-2005		13.04		0.07	(2)		1.69	(2)		1.76			(0.13	)		(0.07	)		(0.20	)
Class E Shares
Six-month period ended ��     9-30-2009 (unaudited)		9.54		0.18	(2)		3.48	(2)		3.66			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009		16.33		0.28	(2)		(6.05	)(2)		(5.77	)		(0.54	)		(0.48	)		(1.02	)
Fiscal year ended 3-31-2008(5)		16.85		0.17	(2)		0.18	(2)		0.35			(0.46	)		(0.41	)		(0.87	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.57		0.21	(2)		3.49	(2)		3.70			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009		16.38		0.35	(2)		(6.05	)(2)		(5.70	)		(0.63	)		(0.48	)		(1.11	)
Fiscal year ended 3-31-2008(5)		16.86		0.30	(2)		0.23	(2)		0.53			(0.60	)		(0.41	)		(1.01	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.57		0.18	(2)		3.48	(2)		3.66			(0.02	)		––			(0.02	)
Fiscal year ended 3-31-2009		16.38		0.45			(6.19	)		(5.74	)		(0.59	)		(0.48	)		(1.07	)
Fiscal year ended 3-31-2008		16.82		0.39			0.14			0.53			(0.56	)		(0.41	)		(0.97	)
Fiscal year ended 3-31-2007		15.15		0.25	(2)		2.37	(2)		2.62			(0.44	)		(0.51	)		(0.95	)
Fiscal year ended 3-31-2006		14.63		0.29	(2)		1.14	(2)		1.43			(0.36	)		(0.55	)		(0.91	)
Fiscal year ended 3-31-2005		13.07		0.24	(2)		1.67	(2)		1.91			(0.28	)		(0.07	)		(0.35	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$13.18			38.10	%(3)		$174			1.59	%(4)		2.83	%(4)		––	%		––	%		93	%
Fiscal year ended 3-31-2009		9.56	- -36.02		(3)		128			1.46			2.45			––			––			22
Fiscal year ended 3-31-2008		16.36		2.84	(3)		260			1.33			2.11			––			––			24
Fiscal year ended 3-31-2007		16.81		17.48	(3)		235			1.38			1.52			––			––			22
Fiscal year ended 3-31-2006		15.15		10.14	(3)		112			1.45			1.94			––			––			27
Fiscal year ended 3-31-2005		14.63		14.81	(3)		97			1.42			1.71			––			––			16
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		13.07		37.33			8			2.69	(4)		1.77	(4)		––			––			93
Fiscal year ended 3-31-2009		9.52	- -36.62				6			2.44			1.48			––			––			22
Fiscal year ended 3-31-2008		16.31		1.85			13			2.28			1.15			––			––			24
Fiscal year ended 3-31-2007		16.77		16.38			12			2.35			0.46			––			––			22
Fiscal year ended 3-31-2006		15.11		8.93			6			2.59			0.73			––			––			27
Fiscal year ended 3-31-2005		14.59		13.37			3			2.64			0.20			––			––			16
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		13.11		37.74			25			2.23	(4)		2.21	(4)		––			––			93
Fiscal year ended 3-31-2009		9.53	- -36.50				20			2.13			1.76			––			––			22
Fiscal year ended 3-31-2008		16.33		2.14			42			2.04			1.34			––			––			24
Fiscal year ended 3-31-2007		16.78		16.64			30			2.12			0.70			––			––			22
Fiscal year ended 3-31-2006		15.12		9.21			9			2.29			0.98			––			––			27
Fiscal year ended 3-31-2005		14.60		13.58			4			2.44			0.44			––			––			16
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		13.18		38.42	(3)		1			1.33	(4)		3.08	(4)		2.59	(4)		1.82	(4)		93
Fiscal year ended 3-31-2009		9.54	- -36.11		(3)		1			1.63			2.10			1.84			1.90			22
Fiscal year ended 3-31-2008(5)		16.33		1.92	(3)		1			2.23	(4)		1.00	(4)		––			––			24	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		13.24		38.64			40			1.02	(4)		3.47	(4)		––			––			93
Fiscal year ended 3-31-2009		9.57	- -35.72				34			0.99			2.72			––			––			22
Fiscal year ended 3-31-2008(5)		16.38		2.99			45			0.98	(4)		2.14	(4)		––			––			24	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		13.21		38.29			2			1.30	(4)		3.10	(4)		––			––			93
Fiscal year ended 3-31-2009		9.57	- -35.95				1			1.33			2.75			––			––			22
Fiscal year ended 3-31-2008		16.38		2.96			3			1.26			2.06			––			––			24
Fiscal year ended 3-31-2007		16.82		17.61			2			1.24			1.64			––			––			22
Fiscal year ended 3-31-2006		15.15		10.18			1			1.41			1.99			––			––			27
Fiscal year ended 3-31-2005		14.63		14.84			––	*		1.40			1.72			––			––			16

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL CORE EQUITY FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.54		$ 0.15		(2)	$ 4.68		(2)	$ 4.83			$   ––			$   ––			$   ––
Fiscal year ended 3-31-2009		17.11		0.17			(7.22	)		(7.05	)		(0.19	)		(0.33	)		(0.52	)
Fiscal year ended 3-31-2008		17.63		0.10			0.98			1.08			(0.09	)		(1.51	)		(1.60	)
Fiscal year ended 3-31-2007		15.73		0.10	(2)		2.59	(2)		2.69			(0.06	)		(0.73	)		(0.79	)
Fiscal year ended 3-31-2006		11.61		(0.06	)		4.18			4.12			––			––			––
Fiscal year ended 3-31-2005		10.14		(0.02	)		1.49			1.47			––			––			––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.77		0.08	(2)		4.30	(2)		4.38			––			––			––
Fiscal year ended 3-31-2009		15.74		0.05			(6.62	)		(6.57	)		(0.07	)		(0.33	)		(0.40	)
Fiscal year ended 3-31-2008		16.31		(0.02	)		0.88			0.86			––			(1.43	)		(1.43	)
Fiscal year ended 3-31-2007		14.67		0.00	(2)		2.37	(2)		2.37			––			(0.73	)		(0.73	)
Fiscal year ended 3-31-2006		10.91		(0.12	)		3.88			3.76			––			––			––
Fiscal year ended 3-31-2005		9.60		(0.08	)		1.39			1.31			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.10	(2)		4.30	(2)		4.40			––			––			––
Fiscal year ended 3-31-2009		15.72		0.10			(6.63	)		(6.53	)		(0.10	)		(0.33	)		(0.43	)
Fiscal year ended 3-31-2008		16.30		0.00	(2)		0.88	(2)		0.88			––			(1.46	)		(1.46	)
Fiscal year ended 3-31-2007		14.65		(0.01	)(2)		2.39	(2)		2.38			––			(0.73	)		(0.73	)
Fiscal year ended 3-31-2006		10.90		(0.02	)		3.77			3.75			––			––			––
Fiscal year ended 3-31-2005		9.59		(0.07	)		1.38			1.31			––			––			––
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		9.59		0.16	(2)		4.70	(2)		4.86			––			––			––
Fiscal year ended 3-31-2009		17.05		0.16			(7.20	)		(7.04	)		(0.09	)		(0.33	)		(0.42	)
Fiscal year ended 3-31-2008(5)		17.63		(0.02	)		0.98			0.96			(0.03	)		(1.51	)		(1.54	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		0.18	(2)		4.72	(2)		4.90			––			––			––
Fiscal year ended 3-31-2009		17.20		0.20			(7.23	)		(7.03	)		(0.26	)		(0.33	)		(0.59	)
Fiscal year ended 3-31-2008(5)		17.71		0.16			1.01			1.17			(0.17	)		(1.51	)		(1.68	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.59		0.12	(2)		4.77	(2)		4.89			––			––			––
Fiscal year ended 3-31-2009		17.19		0.19			(7.24	)		(7.05	)		(0.22	)		(0.33	)		(0.55	)
Fiscal year ended 3-31-2008		17.70		0.15	(2)		0.97	(2)		1.12			(0.12	)		(1.51	)		(1.63	)
Fiscal year ended 3-31-2007		15.79		0.12	(2)		2.59	(2)		2.71			(0.07	)		(0.73	)		(0.80	)
Fiscal year ended 3-31-2006		11.64		(0.06	)		4.21			4.15			––			––			––
Fiscal year ended 3-31-2005		10.15		(0.01	)		1.50			1.49			––			––			––

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$14.37			50.63	%(3)		$289			1.70	%(4)		2.37	%(4)		––	%		––	%		53	%
Fiscal year ended 3-31-2009		9.54	- -41.28		(3)		152			1.64			1.44			––			––			108
Fiscal year ended 3-31-2008		17.11		5.39	(3)		222			1.53			0.65			––			––			101
Fiscal year ended 3-31-2007		17.63		17.35	(3)		161			1.56			0.63			––			––			108
Fiscal year ended 3-31-2006		15.73		35.49	(3)		67			1.82			0.14			––			––			90
Fiscal year ended 3-31-2005		11.61		14.50	(3)		17			1.99			0.09			––			––			106
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		13.15		49.94			13			2.72	(4)		1.34	(4)		––			––			53
Fiscal year ended 3-31-2009		8.77	- -41.84				8			2.55			0.59			––			––			108
Fiscal year ended 3-31-2008		15.74		4.56			16			2.35			- -0.09			––			––			101
Fiscal year ended 3-31-2007		16.31		16.39			17			2.35			- -0.03			––			––			108
Fiscal year ended 3-31-2006		14.67		34.46			15			2.62			- -0.41			––			––			90
Fiscal year ended 3-31-2005		10.91		13.65			20			2.76			- -0.58			––			––			106
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		13.16		50.23			57			2.30	(4)		1.77	(4)		––			––			53
Fiscal year ended 3-31-2009		8.76	- -41.64				30			2.29			0.81			––			––			108
Fiscal year ended 3-31-2008		15.72		4.68			45			2.20			- -0.02			––			––			101
Fiscal year ended 3-31-2007		16.30		16.48			34			2.29			- -0.08			––			––			108
Fiscal year ended 3-31-2006		14.65		34.40			15			2.58			- -0.50			––			––			90
Fiscal year ended 3-31-2005		10.90		13.66			7			2.79			- -0.63			––			––			106
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		14.45		50.68	(3)		2			1.52	(4)		2.60	(4)		2.80	(4)		1.32	(4)		53
Fiscal year ended 3-31-2009		9.59	- -41.34		(3)		1			1.87			1.22			2.74			0.35			108
Fiscal year ended 3-31-2008(5)		17.05		4.70	(3)		1			2.38	(4)		- -0.51	(4)		––			––			101	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		14.48		51.15			65			1.13	(4)		2.86	(4)		––			––			53
Fiscal year ended 3-31-2009		9.58	- -40.98				33			1.12			1.86			––			––			108
Fiscal year ended 3-31-2008(5)		17.20		5.83			23			1.13	(4)		0.69	(4)		––			––			101	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		14.48		50.99			73			1.38	(4)		1.91	(4)		––			––			53
Fiscal year ended 3-31-2009		9.59	- -41.12				11			1.38			1.64			––			––			108
Fiscal year ended 3-31-2008		17.19		5.50			10			1.39			0.77			––			––			101
Fiscal year ended 3-31-2007		17.70		17.47			4			1.45			0.76			––			––			108
Fiscal year ended 3-31-2006		15.79		35.65			1			1.72			0.13			––			––			90
Fiscal year ended 3-31-2005		11.64		14.68			––	*		1.82			0.29			––			––			106

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL GROWTH FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$19.83		$ 0.27		(2)	$ 7.51		(2)	$ 7.78			$   ––			$   ––		$   ––
Fiscal year ended 3-31-2009		36.27		0.34			(16.52	)		(16.18	)		(0.26	)		––		(0.26	)
Fiscal year ended 3-31-2008		34.60		0.15			1.59			1.74			(0.07	)		––		(0.07	)
Fiscal year ended 3-31-2007		29.74		0.19			4.72			4.91			(0.05	)		––		(0.05	)
Fiscal year ended 3-31-2006		22.86		0.08			6.97			7.05			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2005		21.34		(0.02	)		1.54			1.52			––			––		––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		18.06		0.13	(2)		6.80	(2)		6.93			––			––		––
Fiscal year ended 3-31-2009		33.04		0.03	(2)		(14.98	)(2)		(14.95	)		(0.03	)		––		(0.03	)
Fiscal year ended 3-31-2008		31.79		(0.23	)(2)		1.48	(2)		1.25			––			––		––
Fiscal year ended 3-31-2007		27.58		(0.15	)(2)		4.36	(2)		4.21			––			––		––
Fiscal year ended 3-31-2006		21.30		(0.17	)(2)		6.45	(2)		6.28			––			––		––
Fiscal year ended 3-31-2005		20.12		(0.22	)(2)		1.40	(2)		1.18			––			––		––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		18.02		0.13	(2)		6.80	(2)		6.93			––			––		––
Fiscal year ended 3-31-2009		32.97		0.05	(2)		(14.94	)(2)		(14.89	)		(0.06	)		––		(0.06	)
Fiscal year ended 3-31-2008		31.71		(0.25	)		1.51			1.26			––			––		––
Fiscal year ended 3-31-2007		27.52		(0.15	)		4.34			4.19			––			––		––
Fiscal year ended 3-31-2006		21.20		(0.09	)(2)		6.41	(2)		6.32			––			––		––
Fiscal year ended 3-31-2005		20.00		(0.32	)		1.52			1.20			––			––		––
Class E Shares(5)
Six-month period ended       9-30-2009 (unaudited)		19.83		0.31	(2)		7.50	(2)		7.81			––			––		––	��
Fiscal year ended 3-31-2009		36.28		0.37			(16.50	)		(16.13	)		(0.32	)		––		(0.32	)
Fiscal year ended 3-31-2008(6)		34.54		0.19			1.67			1.86			(0.12	)		––		(0.12	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		19.98		0.31	(2)		7.59	(2)		7.90			––			––		––
Fiscal year ended 3-31-2009		36.57		0.38			(16.60	)		(16.22	)		(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2008(6)		34.52		0.10			2.12			2.22			(0.17	)		––		(0.17	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		19.86		0.30	(2)		7.53	(2)		7.83			––			––		––
Fiscal year ended 3-31-2009		36.27		0.35			(16.49	)		(16.14	)		(0.27	)		––		(0.27	)
Fiscal year ended 3-31-2008		34.59		0.31			1.42			1.73			(0.05	)		––		(0.05	)
Fiscal year ended 3-31-2007		29.74		0.28			4.63			4.91			(0.06	)		––		(0.06	)
Fiscal year ended 3-31-2006		22.86		0.18	(2)		6.87	(2)		7.05			(0.17	)		––		(0.17	)
Fiscal year ended 3-31-2005		21.35		(0.09	)		1.60			1.51			––			––		––

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$27.61			39.23	%(3)		$114			1.70	%(4)		2.25	%(4)		––	%		––	%		38	%
Fiscal year ended 3-31-2009		19.83	- -44.65		(3)		83			1.57			1.09			––			––			93
Fiscal year ended 3-31-2008		36.27		5.01	(3)		163			1.42			0.35			––			––			103
Fiscal year ended 3-31-2007		34.60		16.51	(3)		165			1.46			0.55			––			––			97
Fiscal year ended 3-31-2006		29.74		30.92	(3)		156			1.59			0.25			––			––			75
Fiscal year ended 3-31-2005		22.86		7.12	(3)		122			1.61			- -0.15			––			––			76
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		24.99		38.37			5			2.83	(4)		1.22	(4)		––			––			38
Fiscal year ended 3-31-2009		18.06	- -45.25				4			2.62			0.11			––			––			93
Fiscal year ended 3-31-2008		33.04		3.96			10			2.45			- -0.67			––			––			103
Fiscal year ended 3-31-2007		31.79		15.23			11			2.55			- -0.53			––			––			97
Fiscal year ended 3-31-2006		27.58		29.48			13			2.74			- -0.72			––			––			75
Fiscal year ended 3-31-2005		21.30		5.87			17			2.75			- -1.09			––			––			76
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		24.95		38.46			31			2.76	(4)		1.23	(4)		––			––			38
Fiscal year ended 3-31-2009		18.02	- -45.19				24			2.54			0.16			––			––			93
Fiscal year ended 3-31-2008		32.97		3.97			53			2.42			- -0.65			––			––			103
Fiscal year ended 3-31-2007		31.71		15.23			57			2.54			- -0.53			––			––			97
Fiscal year ended 3-31-2006		27.52		29.81			56			2.43			- -0.39			––			––			75
Fiscal year ended 3-31-2005		21.20		6.00			9			2.64			- -1.14			––			––			76
Class E Shares(5)
Six-month period ended       9-30-2009 (unaudited)		27.64		39.39	(3)		––	*		1.42	(4)		2.52	(4)		––			––			38
Fiscal year ended 3-31-2009		19.83	- -44.52		(3)		––	*		1.34			1.31			––			––			93
Fiscal year ended 3-31-2008(6)		36.28		5.34	(3)		––	*		1.27	(4)		0.49	(4)		––			––			103	(7)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		27.88		39.54			31			1.23	(4)		2.50	(4)		––			––			38
Fiscal year ended 3-31-2009		19.98	- -44.42				15			1.18			1.37			––			––			93
Fiscal year ended 3-31-2008(6)		36.57		6.39			21			1.15	(4)		0.32	(4)		––			––			103	(7)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		27.69		39.43			3			1.42	(4)		2.50	(4)		1.54	(4)		2.38	(4)		38
Fiscal year ended 3-31-2009		19.86	- -44.55				2			1.43			1.21			1.50			1.14			93
Fiscal year ended 3-31-2008		36.27		4.99			3			1.44			0.31			––			––			103
Fiscal year ended 3-31-2007		34.59		16.50			5			1.46			0.65			––			––			97
Fiscal year ended 3-31-2006		29.74		30.95			6			1.58			0.81			––			––			75
Fiscal year ended 3-31-2005		22.86		7.07			––	*		1.66			- -0.33			––			––			76

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)Class is closed to investment.
(6)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(7)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PACIFIC OPPORTUNITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.86		$ 0.03		(1)	$ 5.10		(1)	$ 5.13			$   ––			$   ––			$   ––
Fiscal year ended 3-31-2009		17.61		0.05			(6.96	)		(6.91	)		––			(1.84	)		(1.84	)
Fiscal year ended 3-31-2008		16.91		(0.01	)		2.80			2.79			(0.05	)		(2.04	)		(2.09	)
Fiscal year ended 3-31-2007		14.32		(0.02	)		3.23			3.21			(0.01	)		(0.61	)		(0.62	)
Fiscal year ended 3-31-2006		10.61		0.02	(1)		3.83	(1)		3.85			(0.04	)		(0.10	)		(0.14	)
Fiscal year ended 3-31-2005		9.55		(0.07	)		1.13			1.06			––			––			––
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		7.83		(0.04	)(1)		4.50	(1)		4.46			––			––			––
Fiscal year ended 3-31-2009		16.01		(0.09	)		(6.30	)		(6.39	)		––			(1.79	)		(1.79	)
Fiscal year ended 3-31-2008		15.49		(0.19	)		2.56			2.37			––			(1.85	)		(1.85	)
Fiscal year ended 3-31-2007		13.29		(0.07	)		2.88			2.81			––			(0.61	)		(0.61	)
Fiscal year ended 3-31-2006		9.91		(0.06	)(1)		3.54	(1)		3.48			––			(0.10	)		(0.10	)
Fiscal year ended 3-31-2005		9.01		(0.13	)		1.03			0.90			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.01		(0.02	)(1)		4.62	(1)		4.60			––			––			––
Fiscal year ended 3-31-2009		16.27		(0.09	)		(6.37	)		(6.46	)		––			(1.80	)		(1.80	)
Fiscal year ended 3-31-2008		15.73		(0.14	)		2.58			2.44			––			(1.90	)		(1.90	)
Fiscal year ended 3-31-2007		13.45		(0.08	)		2.97			2.89			––			(0.61	)		(0.61	)
Fiscal year ended 3-31-2006		10.01		(0.06	)(1)		3.60	(1)		3.54			––			(0.10	)		(0.10	)
Fiscal year ended 3-31-2005		9.09		(0.09	)		1.01			0.92			––			––			––
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		8.90		0.06	(1)		5.14	(1)		5.20			––			––			––
Fiscal year ended 3-31-2009		17.62		0.07			(6.93	)		(6.86	)		––			(1.86	)		(1.86	)
Fiscal year ended 3-31-2008(5)		16.88		0.06			2.82			2.88			(0.10	)		(2.04	)		(2.14	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.00		0.07	(1)		5.19	(1)		5.26			––			––			––
Fiscal year ended 3-31-2009		17.77		0.10	(1)		(7.00	)(1)		(6.90	)		––			(1.87	)		(1.87	)
Fiscal year ended 3-31-2008(5)		17.00		(0.03	)(1)		2.98	(1)		2.95			(0.14	)		(2.04	)		(2.18	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.98		0.05	(1)		5.17	(1)		5.22			––			––			––
Fiscal year ended 3-31-2009		17.75		0.08			(6.99	)		(6.91	)		––			(1.86	)		(1.86	)
Fiscal year ended 3-31-2008		17.03		0.01			2.83			2.84			(0.08	)		(2.04	)		(2.12	)
Fiscal year ended 3-31-2007		14.41		0.02			3.26			3.28			(0.05	)		(0.61	)		(0.66	)
Fiscal year ended 3-31-2006		10.67		0.04	(1)		3.87	(1)		3.91			(0.07	)		(0.10	)		(0.17	)
Fiscal year ended 3-31-2005		9.58		(0.04	)		1.13			1.09			––			––			––
Advisor Class Shares(4)
Six-month period ended       9-30-2009 (unaudited)		8.64		0.07	(1)		4.98	(1)		5.05			––			––			––
Fiscal year ended 3-31-2009		17.19		0.15			(6.82	)		(6.67	)		––			(1.88	)		(1.88	)
Fiscal year ended 3-31-2008		16.54		0.09			2.76			2.85			(0.16	)		(2.04	)		(2.20	)
Fiscal year ended 3-31-2007		14.01		0.09			3.15			3.24			(0.10	)		(0.61	)		(0.71	)
Fiscal year ended 3-31-2006		10.38		0.14	(1)		3.70	(1)		3.84			(0.11	)		(0.10	)		(0.21	)
Fiscal year ended 3-31-2005		9.28		(0.01	)		1.11			1.10			––			––			––

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income (Loss) to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$13.99			57.90	%(2)		$473			1.92	%(3)		0.47	%(3)		43	%
Fiscal year ended 3-31-2009		8.86	- -38.76		(2)		239			1.92			0.37			112
Fiscal year ended 3-31-2008		17.61		14.30	(2)		471			1.74			- -0.08			96
Fiscal year ended 3-31-2007		16.91		22.60	(2)		375			1.84			- -0.14			74
Fiscal year ended 3-31-2006		14.32		36.51	(2)		191			1.95			0.24			87
Fiscal year ended 3-31-2005		10.61		11.10	(2)		64			2.22			- -0.80			87
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		12.29		56.96			18			3.06	(3)		- -0.66	(3)		43
Fiscal year ended 3-31-2009		7.83	- -39.46				10			3.07			- -0.77			112
Fiscal year ended 3-31-2008		16.01		13.16			21			2.74			- -1.05			96
Fiscal year ended 3-31-2007		15.49		21.33			20			2.88			- -1.15			74
Fiscal year ended 3-31-2006		13.29		35.26			11			2.91			- -0.51			87
Fiscal year ended 3-31-2005		9.91		9.99			6			3.06			- -1.57			87
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		12.61		57.43			34			2.65	(3)		- -0.30	(3)		43
Fiscal year ended 3-31-2009		8.01	- -39.22				16			2.69			- -0.36			112
Fiscal year ended 3-31-2008		16.27		13.36			38			2.49			- -0.82			96
Fiscal year ended 3-31-2007		15.73		21.68			34			2.60			- -0.87			74
Fiscal year ended 3-31-2006		13.45		35.51			18			2.75			- -0.50			87
Fiscal year ended 3-31-2005		10.01		10.12			7			3.06			- -1.68			87
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		14.10		58.43	(2)		––	*		1.44	(3)		1.02	(3)		43
Fiscal year ended 3-31-2009		8.90	- -38.43		(2)		––	*		1.44			0.79			112
Fiscal year ended 3-31-2008(5)		17.62		14.79	(2)		––	*		1.43	(3)		0.26	(3)		96	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		14.26		58.44			88			1.30	(3)		1.07	(3)		43
Fiscal year ended 3-31-2009		9.00	- -38.34				45			1.31			0.81			112
Fiscal year ended 3-31-2008(5)		17.77		15.10			38			1.31	(3)		0.06	(3)		96	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		14.20		58.13			9			1.58	(3)		0.77	(3)		43
Fiscal year ended 3-31-2009		8.98	- -38.47				4			1.57			0.69			112
Fiscal year ended 3-31-2008		17.75		14.48			7			1.55			0.06			96
Fiscal year ended 3-31-2007		17.03		22.95			8			1.58			0.11			74
Fiscal year ended 3-31-2006		14.41		36.90			4			1.68			0.46			87
Fiscal year ended 3-31-2005		10.67		11.38			1			1.88			- -0.47			87
Advisor Class Shares(4)
Six-month period ended       9-30-2009 (unaudited)		13.69		58.45			––	*		1.27	(3)		1.20	(3)		43
Fiscal year ended 3-31-2009		8.64	- -38.31				––	*		1.27			1.09			112
Fiscal year ended 3-31-2008		17.19		14.86			––	*		1.22			0.46			96
Fiscal year ended 3-31-2007		16.54		23.33			––	*		1.28			0.55			74
Fiscal year ended 3-31-2006		14.01		37.28			––	*		1.42			1.12			87
Fiscal year ended 3-31-2005		10.38		11.85			––	*		1.56			- -0.06			87

*Not shown due to rounding.
(1)Based on average weekly shares outstanding.
(2)Total return calculated without taking into account the sales load deducted on an initial purchase.
(3)Annualized.
(4)Class is closed to investment.
(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

Ivy Funds

FINANCIAL HIGHLIGHTS

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BALANCED FUND
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$13.01		$0.11		(1)	$ 2.35		(1)	$ 2.46			$(0.10		)	$   ––			$(0.10		)
Fiscal year ended 3-31-2009		16.64		0.16			(3.63	)		(3.47	)		(0.16	)		––			(0.16	)
Fiscal year ended 3-31-2008		16.18		0.20			0.97			1.17			(0.20	)		(0.51	)		(0.71	)
Fiscal year ended 3-31-2007		15.22		0.16			0.98			1.14			(0.18	)		––			(0.18	)
Fiscal year ended 3-31-2006		14.00		0.15			1.21			1.36			(0.14	)		––			(0.14	)
Fiscal year ended 3-31-2005		13.35		0.14			0.65			0.79			(0.14	)		––			(0.14	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		12.97		0.05	(1)		2.34	(1)		2.39			(0.04	)		––			(0.04	)
Fiscal year ended 3-31-2009		16.60		0.04			(3.64	)		(3.60	)		(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2008		16.14		0.04			0.97			1.01			(0.04	)		(0.51	)		(0.55	)
Fiscal year ended 3-31-2007		15.18		0.01			0.98			0.99			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2006		13.98		0.00			1.21			1.21			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2005		13.33		0.01			0.64			0.65			––	*		––			––	*
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		12.98		0.06	(1)		2.35	(1)		2.41			(0.05	)		––			(0.05	)
Fiscal year ended 3-31-2009		16.61		0.07	(1)		(3.64	)(1)		(3.57	)		(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2008		16.15		0.07			0.97			1.04			(0.07	)		(0.51	)		(0.58	)
Fiscal year ended 3-31-2007		15.20		0.04			0.97			1.01			(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2006		13.98		0.03			1.20			1.23			(0.01	)		––			(0.01	)
Fiscal year ended 3-31-2005		13.34		0.03			0.63			0.66			(0.02	)		––			(0.02	)
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		13.02		0.12	(1)		2.35	(1)		2.47			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2009		16.65		0.21			(3.65	)		(3.44	)		(0.19	)		––			(0.19	)
Fiscal year ended 3-31-2008(5)		16.21		0.24			0.94			1.18			(0.23	)		(0.51	)		(0.74	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		13.01		0.07	(1)		2.43	(1)		2.50			(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2009		16.65		0.09			(3.52	)		(3.43	)		(0.21	)		––			(0.21	)
Fiscal year ended 3-31-2008(5)		16.21		0.26			0.95			1.21			(0.26	)		(0.51	)		(0.77	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		13.01		0.13	(1)		2.34	(1)		2.47			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2009		16.64		0.19			(3.65	)		(3.46	)		(0.17	)		––			(0.17	)
Fiscal year ended 3-31-2008		16.18		0.22			0.97			1.19			(0.22	)		(0.51	)		(0.73	)
Fiscal year ended 3-31-2007		15.22		0.18			0.98			1.16			(0.20	)		––			(0.20	)
Fiscal year ended 3-31-2006		14.00		0.17			1.21			1.38			(0.16	)		––			(0.16	)
Fiscal year ended 3-31-2005		13.35		0.17			0.65			0.82			(0.17	)		––			(0.17	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets			Ratio of Net Investment Income to Average Net Assets			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$15.37			18.91	%(2)		$76			1.41	%(3)		1.51	%(3)		26	%
Fiscal year ended 3-31-2009		13.01		- -20.98	(2)		68			1.36			1.12			57
Fiscal year ended 3-31-2008		16.64		7.05	(2)		63			1.38			1.16			9
Fiscal year ended 3-31-2007		16.18		7.53	(2)		59			1.39			1.03			23
Fiscal year ended 3-31-2006		15.22		9.71	(2)		57			1.42			1.00			49
Fiscal year ended 3-31-2005		14.00		5.90	(2)		54			1.53			1.02			37
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		15.32		18.43			5			2.27	(3)		0.64	(3)		26
Fiscal year ended 3-31-2009		12.97		- -21.73			4			2.28			0.22			57
Fiscal year ended 3-31-2008		16.60		6.08			3			2.30			0.24			9
Fiscal year ended 3-31-2007		16.14		6.49			3			2.39			0.03			23
Fiscal year ended 3-31-2006		15.18		8.62			2			2.41			0.01			49
Fiscal year ended 3-31-2005		13.98		4.90			2			2.52			0.06			37
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		15.34		18.62			43			2.01	(3)		0.93	(3)		26
Fiscal year ended 3-31-2009		12.98		- -21.53			49			1.96			0.49			57
Fiscal year ended 3-31-2008		16.61		6.27			4			2.11			0.42			9
Fiscal year ended 3-31-2007		16.15		6.67			3			2.16			0.27			23
Fiscal year ended 3-31-2006		15.20		8.80			2			2.25			0.21			49
Fiscal year ended 3-31-2005		13.98		4.98			1			2.38			0.19			37
Class E Shares(4)
Six-month period ended       9-30-2009 (unaudited)		15.38		19.05	(2)		––	*		1.13	(3)		1.79	(3)		26
Fiscal year ended 3-31-2009		13.02		- -20.77	(2)		––	*		1.12			1.38			57
Fiscal year ended 3-31-2008(5)		16.65		7.11	(2)		––	*		1.15	(3)		1.39	(3)		9	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		15.39		19.29			2			1.00	(3)		1.77	(3)		26
Fiscal year ended 3-31-2009		13.01		- -20.72			––	*		0.99			1.34			57
Fiscal year ended 3-31-2008(5)		16.65		7.25			––	*		1.04	(3)		1.51	(3)		9	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		15.37		18.99			35			1.25	(3)		1.70	(3)		26
Fiscal year ended 3-31-2009		13.01		- -20.89			38			1.24			1.26			57
Fiscal year ended 3-31-2008		16.64		7.16			27			1.28			1.27			9
Fiscal year ended 3-31-2007		16.18		7.67			28			1.26			1.16			23
Fiscal year ended 3-31-2006		15.22		9.89			38			1.26			1.15			49
Fiscal year ended 3-31-2005		14.00		6.16			44			1.30			1.25			37

*Not shown due to rounding.
(1)Based on average weekly shares outstanding.
(2)Total return calculated without taking into account the sales load deducted on an initial purchase.
(3)Annualized.
(4)Class is closed to investment.
(5)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL NATURAL RESOURCES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$11.08		$(0.03		)(2)	$ 6.06		(2)	$ 6.03			$   ––			$   ––			$   ––
Fiscal year ended 3-31-2009		36.53		0.02			(21.13	)		(21.11	)		(0.03	)		(4.31	)		(4.34	)
Fiscal year ended 3-31-2008		31.67		0.05	(2)		8.54	(2)		8.59			(0.52	)		(3.21	)		(3.73	)
Fiscal year ended 3-31-2007		30.13		0.17	(2)		4.40	(2)		4.57			(0.16	)		(2.87	)		(3.03	)
Fiscal year ended 3-31-2006		22.65		0.12			8.88			9.00			––			(1.52	)		(1.52	)
Fiscal year ended 3-31-2005		17.63		(0.04	)		5.06			5.02			––	*		––			––	*
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		10.08		(0.09	)(2)		5.50	(2)		5.41			––			––			––
Fiscal year ended 3-31-2009		34.27		(0.10	)		(19.82	)		(19.92	)		––			(4.27	)		(4.27	)
Fiscal year ended 3-31-2008		29.78		(0.23	)(2)		8.00	(2)		7.77			(0.07	)		(3.21	)		(3.28	)
Fiscal year ended 3-31-2007		28.57		(0.05	)		4.13			4.08			––			(2.87	)		(2.87	)
Fiscal year ended 3-31-2006		21.72		0.03			8.34			8.37			––			(1.52	)		(1.52	)
Fiscal year ended 3-31-2005		17.04		(0.04	)		4.72			4.68			––			––			––
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.75		(0.07	)(2)		5.32	(2)		5.25			––			––			––
Fiscal year ended 3-31-2009		33.47		(0.13	)		(19.32	)		(19.45	)		––			(4.27	)		(4.27	)
Fiscal year ended 3-31-2008		29.19		(0.20	)(2)		7.86	(2)		7.66			(0.17	)		(3.21	)		(3.38	)
Fiscal year ended 3-31-2007		28.04		(0.03	)		4.05			4.02			––			(2.87	)		(2.87	)
Fiscal year ended 3-31-2006		21.32		0.02			8.22			8.24			––			(1.52	)		(1.52	)
Fiscal year ended 3-31-2005		16.72		(0.09	)		4.69			4.60			––			––			––
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		11.16		(0.02	)(2)		6.11	(2)		6.09			––			––			––
Fiscal year ended 3-31-2009		36.41		(0.06	)(2)		(20.98	)(2)		(21.04	)		––			(4.21	)		(4.21	)
Fiscal year ended 3-31-2008(6)		32.00		0.03			7.94			7.97			(0.35	)		(3.21	)		(3.56	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		11.22		0.00	(2)		6.13	(2)		6.13			––			––			––
Fiscal year ended 3-31-2009		36.74		0.03	(2)		(21.19	)(2)		(21.16	)		(0.04	)		(4.32	)		(4.36	)
Fiscal year ended 3-31-2008(6)		32.16		0.05	(2)		8.51	(2)		8.56			(0.77	)		(3.21	)		(3.98	)
Class R Shares
Six-month period ended       9-30-2009 (unaudited)		11.02		(0.04	)(2)		6.03	(2)		5.99			––			––			––
Fiscal year ended 3-31-2009		36.30		(0.05	)(2)		(20.94	)(2)		(20.99	)		––			(4.29	)		(4.29	)
Fiscal year ended 3-31-2008		31.62		0.24			8.23			8.47			(0.58	)		(3.21	)		(3.79	)
Fiscal year ended 3-31-2007		30.10		0.05	(2)		4.44	(2)		4.49			(0.10	)		(2.87	)		(2.97	)
Fiscal year ended 3-31-2006(8)		26.11		0.06			3.93			3.99			––			––			––
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		11.17		(0.01	)(2)		6.11	(2)		6.10			––			––			––
Fiscal year ended 3-31-2009		36.62		0.10			(21.21	)		(21.11	)		(0.02	)		(4.32	)		(4.34	)
Fiscal year ended 3-31-2008		31.84		0.17			8.50			8.67			(0.68	)		(3.21	)		(3.89	)
Fiscal year ended 3-31-2007		30.27		0.21	(2)		4.43	(2)		4.64			(0.20	)		(2.87	)		(3.07	)
Fiscal year ended 3-31-2006		22.70		0.24	(2)		8.85	(2)		9.09			––			(1.52	)		(1.52	)
Fiscal year ended 3-31-2005		17.66		(0.02	)		5.13			5.11			(0.07	)		––			(0.07	)
Advisor Class Shares(5)
Six-month period ended       9-30-2009 (unaudited)		10.95		0.01	(2)		6.00	(2)		6.01			––			––			––
Fiscal year ended 3-31-2009		36.16		0.24			(21.08	)		(20.84	)		(0.06	)		(4.31	)		(4.37	)
Fiscal year ended 3-31-2008		31.48		0.26			8.43			8.69			(0.80	)		(3.21	)		(4.01	)
Fiscal year ended 3-31-2007		29.92		0.31			4.34			4.65			(0.22	)		(2.87	)		(3.09	)
Fiscal year ended 3-31-2006		22.45		0.13			8.86			8.99			––			(1.52	)		(1.52	)
Fiscal year ended 3-31-2005		17.47		(0.14	)		5.14			5.00			(0.02	)		––			(0.02	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$17.11			54.42	%(3)		$2,610			1.52	%(4)		- -0.46	%(4)		––	%		––	%		61	%
Fiscal year ended 3-31-2009		11.08	- -56.82		(3)		1,640			1.40			- -0.03			––			––			191
Fiscal year ended 3-31-2008		36.53		26.65	(3)		5,168			1.27			0.14			––			––			142
Fiscal year ended 3-31-2007		31.67		15.47	(3)		3,360			1.31			0.57			––			––			106
Fiscal year ended 3-31-2006		30.13		40.76	(3)		2,343			1.40			0.73			––			––			104
Fiscal year ended 3-31-2005		22.65		28.50	(3)		895			1.55			- -0.52			––			––			110
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		15.49		53.67			180			2.36	(4)		- -1.29	(4)		––			––			61
Fiscal year ended 3-31-2009		10.08	- -57.15				117			2.19			- -0.83			––			––			191
Fiscal year ended 3-31-2008		34.27		25.64			345			2.07			- -0.64			––			––			142
Fiscal year ended 3-31-2007		29.78		14.55			272			2.12			- -0.24			––			––			106
Fiscal year ended 3-31-2006		28.57		39.59			223			2.23			- -0.10			––			––			104
Fiscal year ended 3-31-2005		21.72		27.46			110			2.39			- -1.35			––			––			110
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		15.00		53.85			909			2.19	(4)		- -1.13	(4)		––			––			61
Fiscal year ended 3-31-2009		9.75	- -57.10				539			2.10			- -0.74			––			––			191
Fiscal year ended 3-31-2008		33.47		25.72			1,749			1.99			- -0.58			––			––			142
Fiscal year ended 3-31-2007		29.19		14.65			1,138			2.04			- -0.16			––			––			106
Fiscal year ended 3-31-2006		28.04		39.72			801			2.15			- -0.02			––			––			104
Fiscal year ended 3-31-2005		21.32		27.51			312			2.31			- -1.28			––			––			110
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		17.25		54.57	(3)		4			1.26	(4)		- -0.21	(4)		2.86	(4)	-1.81		(4)		61
Fiscal year ended 3-31-2009		11.16	- -56.83		(3)		2			1.66			- -0.29			2.68		-1.31				191
Fiscal year ended 3-31-2008(6)		36.41		24.42	(3)		3			2.29	(4)		- -1.02	(4)		––			––			142	(7)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		17.35		54.64			720			1.06	(4)		- -0.07	(4)		––			––			61
Fiscal year ended 3-31-2009		11.22	- -56.60				232			1.05			0.22			––			––			191
Fiscal year ended 3-31-2008(6)		36.74		26.14			71			1.00	(4)		0.30	(4)		––			––			142	(7)
Class R Shares
Six-month period ended       9-30-2009 (unaudited)		17.01		54.36			41			1.58	(4)		- -0.54	(4)		––			––			61
Fiscal year ended 3-31-2009		11.02	- -56.86				22			1.57			- -0.22			––			––			191
Fiscal year ended 3-31-2008		36.30		26.31			25			1.55			- -0.22			––			––			142
Fiscal year ended 3-31-2007		31.62		15.20			4			1.58			0.23			––			––			106
Fiscal year ended 3-31-2006(8)		30.10		15.28			––	*		1.69	(4)		0.82	(4)		––			––			104	(9)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		17.27		54.61			637			1.20	(4)		- -0.19	(4)		1.31	(4)	-0.30		(4)		61
Fiscal year ended 3-31-2009		11.17	- -56.67				278			1.20			0.16			1.28			0.08			191
Fiscal year ended 3-31-2008		36.62		26.74			813			1.20			0.16			1.26			0.11			142
Fiscal year ended 3-31-2007		31.84		15.63			311			1.20			0.66			1.27			0.59			106
Fiscal year ended 3-31-2006		30.27		41.07			116			1.20			0.91			1.35			0.76			104
Fiscal year ended 3-31-2005		22.70		28.98			21			1.20			- -0.19			1.48		-0.47				110
Advisor Class Shares(5)
Six-month period ended       9-30-2009 (unaudited)		16.96		54.89			––	*		0.93	(4)		0.15	(4)		––			––			61
Fiscal year ended 3-31-2009		10.95		- -56.62			––	*		0.97			0.40			––			––			191
Fiscal year ended 3-31-2008		36.16		27.09			––	*		0.93			0.52			––			––			142
Fiscal year ended 3-31-2007		31.48		15.86			––	*		0.95			0.94			––			––			106
Fiscal year ended 3-31-2006		29.92		41.09			––	*		1.25			0.97			––			––			104
Fiscal year ended 3-31-2005		22.45		28.63			––	*		1.47			- -0.36			––			––			110

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)Class is closed to investment.
(6)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(7)For the fiscal year ended March 31, 2008.
(8)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.
(9)For the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY REAL ESTATE SECURITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.31		$ 0.13		(2)	$ 5.10		(2)	$ 5.23			$(0.08		)	$   ––			$(0.08		)
Fiscal year ended 3-31-2009		19.34		0.23			(11.00	)		(10.77	)		(0.26	)		––	*		(0.26	)
Fiscal year ended 3-31-2008		26.14		0.19			(4.87	)		(4.68	)		(0.15	)		(1.97	)		(2.12	)
Fiscal year ended 3-31-2007		23.11		0.10			4.05			4.15			(0.15	)		(0.97	)		(1.12	)
Fiscal year ended 3-31-2006		18.13		0.15			5.81			5.96			(0.18	)		(0.80	)		(0.98	)
Fiscal year ended 3-31-2005		16.99		0.15	(2)		1.93	(2)		2.08			(0.25	)		(0.69	)		(0.94	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.24		0.04	(2)		5.06	(2)		5.10			––	*		––			––	*
Fiscal year ended 3-31-2009		19.15		0.00			(10.85	)		(10.85	)		(0.06	)		––	*		(0.06	)
Fiscal year ended 3-31-2008		25.91		(0.08	)		(4.79	)		(4.87	)		(0.01	)		(1.88	)		(1.89	)
Fiscal year ended 3-31-2007		23.00		(0.09	)		3.97			3.88			––			(0.97	)		(0.97	)
Fiscal year ended 3-31-2006		18.08		0.01			5.72			5.73			(0.01	)		(0.80	)		(0.81	)
Fiscal year ended 3-31-2005		16.97		(0.07	)(2)		1.95	(2)		1.88			(0.08	)		(0.69	)		(0.77	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.26		0.08	(2)		5.07	(2)		5.15			(0.03	)		––			(0.03	)
Fiscal year ended 3-31-2009		19.22		0.09			(10.92	)		(10.83	)		(0.12	)		(0.01	)		(0.13	)
Fiscal year ended 3-31-2008		26.01		0.00			(4.85	)		(4.85	)		(0.02	)		(1.92	)		(1.94	)
Fiscal year ended 3-31-2007		23.04		(0.06	)		4.00			3.94			––			(0.97	)		(0.97	)
Fiscal year ended 3-31-2006		18.10		0.03			5.73			5.76			(0.02	)		(0.80	)		(0.82	)
Fiscal year ended 3-31-2005		16.99		0.12			1.82			1.94			(0.14	)		(0.69	)		(0.83	)
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		8.32		0.15	(2)		5.12	(2)		5.27			(0.12	)		––			(0.12	)
Fiscal year ended 3-31-2009		19.36		0.18			(11.00	)		(10.82	)		(0.22	)		––	*		(0.22	)
Fiscal year ended 3-31-2008(5)		26.37		(0.32	)(2)		(4.78	)(2)		(5.10	)		(0.03	)		(1.88	)		(1.91	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		8.34		0.17	(2)		5.13	(2)		5.30			(0.13	)		––			(0.13	)
Fiscal year ended 3-31-2009		19.43		0.32			(11.03	)		(10.71	)		(0.37	)		(0.01	)		(0.38	)
Fiscal year ended 3-31-2008(5)		26.38		0.18	(2)		(4.92	)(2)		(4.74	)		(0.24	)		(1.97	)		(2.21	)
Class R Shares
Six-month period ended       9-30-2009 (unaudited)		8.31		0.15	(2)		5.11	(2)		5.26			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2009		19.35		0.12	(2)		(10.86	)(2)		(10.74	)		(0.29	)		(0.01	)		(0.30	)
Fiscal year ended 3-31-2008		26.14		0.12			(4.81	)		(4.69	)		(0.13	)		(1.97	)		(2.10	)
Fiscal year ended 3-31-2007		23.11		0.15			3.98			4.13			(0.13	)		(0.97	)		(1.10	)
Fiscal year ended 3-31-2006(7)		20.55		(0.20	)		2.79			2.59			(0.03	)		––			(0.03	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.31		0.18	(2)		5.10	(2)		5.28			(0.13	)		––			(0.13	)
Fiscal year ended 3-31-2009		19.35		0.26			(10.95	)		(10.69	)		(0.34	)		(0.01	)		(0.35	)
Fiscal year ended 3-31-2008		26.15		0.36			(4.99	)		(4.63	)		(0.20	)		(1.97	)		(2.17	)
Fiscal year ended 3-31-2007		23.12		0.23			3.97			4.20			(0.20	)		(0.97	)		(1.17	)
Fiscal year ended 3-31-2006		18.14		0.27			5.75			6.02			(0.24	)		(0.80	)		(1.04	)
Fiscal year ended 3-31-2005		16.99		0.26	(2)		1.87	(2)		2.13			(0.29	)		(0.69	)		(0.98	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$13.46			63.04	%(3)		$155			2.30	%(4)		2.29	%(4)		––	%		––	%		36	%
Fiscal year ended 3-31-2009		8.31		- -56.07	(3)		100			1.93			1.41			––			––			42
Fiscal year ended 3-31-2008		19.34		- -18.13	(3)		253			1.67			0.70			––			––			27
Fiscal year ended 3-31-2007		26.14		18.09	(3)		395			1.57			0.54			––			––			35
Fiscal year ended 3-31-2006		23.11		33.53	(3)		256			1.64			0.91			––			––			35
Fiscal year ended 3-31-2005		18.13		12.09	(3)		155			1.67			0.95			––			––			48
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		13.34		61.92			6			3.91	(4)		0.78	(4)		––			––			36
Fiscal year ended 3-31-2009		8.24		- -56.69			4			3.18			0.29			––			––			42
Fiscal year ended 3-31-2008		19.15		- -18.98			13			2.71			- -0.24			––			––			27
Fiscal year ended 3-31-2007		25.91		16.93			22			2.57			- -0.42			––			––			35
Fiscal year ended 3-31-2006		23.00		32.19			15			2.66			0.01			––			––			35
Fiscal year ended 3-31-2005		18.08		10.91			10			2.73			- -0.24			––			––			48
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		13.38		62.42			8			3.11	(4)		1.51	(4)		––			––			36
Fiscal year ended 3-31-2009		8.26		- -56.47			5			2.79			0.57			––			––			42
Fiscal year ended 3-31-2008		19.22		- -18.84			13			2.50			0.03			––			––			27
Fiscal year ended 3-31-2007		26.01		17.17			26			2.39			- -0.28			––			––			35
Fiscal year ended 3-31-2006		23.04		32.38			17			2.46			0.15			––			––			35
Fiscal year ended 3-31-2005		18.10		11.21			10			2.49			0.14			––			––			48
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		13.47		63.53	(3)		––	*		1.66	(4)		2.64	(4)		4.07	(4)		0.23	(4)		36
Fiscal year ended 3-31-2009		8.32		- -56.07	(3)		––	*		2.12			1.01			3.33		- -0.20				42
Fiscal year ended 3-31-2008(5)		19.36		- -19.55	(3)		––	*		2.77	(4)	- -1.47		(4)		––			––			27	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		13.51		63.82			1			1.43	(4)		2.88	(4)		––			––			36
Fiscal year ended 3-31-2009		8.34		- -55.70			1			1.16			2.13			––			––			42
Fiscal year ended 3-31-2008(5)		19.43		- -18.17			1			1.17	(4)		0.75	(4)		––			––			27	(6)
Class R Shares
Six-month period ended       9-30-2009 (unaudited)		13.46		63.51			––	*		1.78	(4)		2.55	(4)		––			––			36
Fiscal year ended 3-31-2009		8.31		- -55.94			––	*		1.70			1.04			––			––			42
Fiscal year ended 3-31-2008		19.35		- -18.12			––	*		1.68			0.26			––			––			27
Fiscal year ended 3-31-2007		26.14		17.98			––	*		1.68			0.43			––			––			35
Fiscal year ended 3-31-2006(7)		23.11		12.59			––	*		1.73	(4)	- -3.64		(4)		––			––			35	(8)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		13.46		63.76			91			1.42	(4)		3.07	(4)		––			––			36
Fiscal year ended 3-31-2009		8.31		- -55.78			54			1.39			1.77			––			––			42
Fiscal year ended 3-31-2008		19.35		- -17.89			120			1.38			1.19			––			––			27
Fiscal year ended 3-31-2007		26.15		18.32			265			1.37			0.94			––			––			35
Fiscal year ended 3-31-2006		23.12		33.86			216			1.39			1.27			––			––			35
Fiscal year ended 3-31-2005		18.14		12.40			148			1.44			1.59			––			––			48

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.
(7)For the period from December 29, 2005 (commencement of operations of the class) through March 31, 2006.
(8)For the fiscal year ended March 31, 2006.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BOND FUND
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.76		$0.18		(2)	$ 0.82		(2)	$ 1.00			$(0.18		)	$ ––		$(0.18		)
Fiscal year ended 3-31-2009		9.84		0.36			(1.06	)		(0.70	)		(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2008		10.46		0.47			(0.62	)		(0.15	)		(0.47	)		––		(0.47	)
Fiscal year ended 3-31-2007		10.28		0.46			0.18			0.64			(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2006		10.52		0.42			(0.24	)		0.18			(0.42	)		––		(0.42	)
Fiscal year ended 3-31-2005		10.83		0.41			(0.30	)		0.11			(0.42	)		––		(0.42	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.11	(2)		0.82	(2)		0.93			(0.11	)		––		(0.11	)
Fiscal year ended 3-31-2009		9.84		0.24			(1.06	)		(0.82	)		(0.26	)		––		(0.26	)
Fiscal year ended 3-31-2008		10.46		0.36			(0.62	)		(0.26	)		(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2007		10.28		0.34			0.18			0.52			(0.34	)		––		(0.34	)
Fiscal year ended 3-31-2006		10.52		0.30			(0.24	)		0.06			(0.30	)		––		(0.30	)
Fiscal year ended 3-31-2005		10.83		0.28			(0.31	)		(0.03	)		(0.28	)		––		(0.28	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.15	(2)		0.82	(2)		0.97			(0.15	)		––		(0.15	)
Fiscal year ended 3-31-2009		9.84		0.27	(2)		(1.05	)(2)		(0.78	)		(0.30	)		––		(0.30	)
Fiscal year ended 3-31-2008		10.46		0.39			(0.62	)		(0.23	)		(0.39	)		––		(0.39	)
Fiscal year ended 3-31-2007		10.28		0.37			0.18			0.55			(0.37	)		––		(0.37	)
Fiscal year ended 3-31-2006		10.52		0.31			(0.24	)		0.07			(0.31	)		––		(0.31	)
Fiscal year ended 3-31-2005		10.83		0.27			(0.31	)		(0.04	)		(0.27	)		––		(0.27	)
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.18	(2)		0.82	(2)		1.00			(0.18	)		––		(0.18	)
Fiscal year ended 3-31-2009		9.84		0.34			(1.06	)		(0.72	)		(0.36	)		––		(0.36	)
Fiscal year ended 3-31-2008(5)		10.46		0.43	(2)		(0.62	)(2)		(0.19	)		(0.43	)		––		(0.43	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.20	(2)		0.82	(2)		1.02			(0.20	)		––		(0.20	)
Fiscal year ended 3-31-2009		9.84		0.39			(1.06	)		(0.67	)		(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2008(5)		10.46		0.50	(2)		(0.62	)(2)		(0.12	)		(0.50	)		––		(0.50	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.76		0.18	(2)		0.82	(2)		1.00			(0.18	)		––		(0.18	)
Fiscal year ended 3-31-2009		9.84		0.33	(2)		(1.03	)(2)		(0.70	)		(0.38	)		––		(0.38	)
Fiscal year ended 3-31-2008		10.46		0.46	(2)		(0.62	)(2)		(0.16	)		(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2007		10.28		0.46			0.18			0.64			(0.46	)		––		(0.46	)
Fiscal year ended 3-31-2006		10.52		0.41			(0.24	)		0.17			(0.41	)		––		(0.41	)
Fiscal year ended 3-31-2005		10.83		0.39			(0.31	)		0.08			(0.39	)		––		(0.39	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.58			11.52	%(3)		$117			1.30	%(4)		4.00	%(4)		––	%		––	%		208	%
Fiscal year ended 3-31-2009		8.76		- -7.22	(3)		98			1.25			3.89			––			––			441
Fiscal year ended 3-31-2008		9.84		- -1.51	(3)		95			1.21			4.57			––			––			75
Fiscal year ended 3-31-2007		10.46		6.40	(3)		64			1.20			4.48			––			––			91
Fiscal year ended 3-31-2006		10.28		1.74	(3)		56			1.23			4.03			––			––			126
Fiscal year ended 3-31-2005		10.52		1.04	(3)		49			1.17			3.84			1.43			3.58			200
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		10.73			4			2.73	(4)		2.57	(4)		––			––			208
Fiscal year ended 3-31-2009		8.76		- -8.45			3			2.60			2.51			––			––			441
Fiscal year ended 3-31-2008		9.84		- -2.59			2			2.31			3.46			––			––			75
Fiscal year ended 3-31-2007		10.46		5.22			2			2.32			3.37			––			––			91
Fiscal year ended 3-31-2006		10.28		0.57			1			2.38			2.90			––			––			126
Fiscal year ended 3-31-2005		10.52		- -0.23			1			2.45			2.63			––			––			200
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		11.12			15			2.03	(4)		3.28	(4)		––			––			208
Fiscal year ended 3-31-2009		8.76		- -7.99			13			2.06			2.92			––			––			441
Fiscal year ended 3-31-2008		9.84		- -2.31			5			2.02			3.76			––			––			75
Fiscal year ended 3-31-2007		10.46		5.48			4			2.06			3.62			––			––			91
Fiscal year ended 3-31-2006		10.28		0.66			2			2.28			3.01			––			––			126
Fiscal year ended 3-31-2005		10.52		- -0.40			1			2.59			2.47			––			––			200
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		11.58	(3)		2			1.21	(4)		4.10	(4)		1.86	(4)		3.45	(4)		208
Fiscal year ended 3-31-2009		8.76		- -7.37	(3)		1			1.37			3.73			1.77			3.33			441
Fiscal year ended 3-31-2008(5)		9.84		- -1.85	(3)		1			1.59	(4)		4.14	(4)		––			––			75	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		11.76			1			0.92	(4)		4.37	(4)		––			––			208
Fiscal year ended 3-31-2009		8.76		- -6.88			––	*		0.88			4.26			––			––			441
Fiscal year ended 3-31-2008(5)		9.84		- -1.17			––	*		0.91	(4)		4.87	(4)		––			––			75	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.58		11.59			5			1.17	(4)		4.10	(4)		––			––			208
Fiscal year ended 3-31-2009		8.76		- -7.23			1			1.19			3.61			1.21			3.59			441
Fiscal year ended 3-31-2008		9.84		- -1.60			––	*		1.34			4.42			––			––			75
Fiscal year ended 3-31-2007		10.46		6.43			––	*		1.09			4.60			––			––			91
Fiscal year ended 3-31-2006		10.28		1.62			––	*		1.34			3.91			––			––			126
Fiscal year ended 3-31-2005		10.52		0.75			––	*		1.46			3.65			––			––			200

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived
or reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL BOND FUND
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 9.39		$0.20		(2)	$ 0.55		(2)	$ 0.75			$(0.09		)	$    ––			$(0.09		)
Fiscal year ended 3-31-2009(5)		10.00		0.19	(2)		(0.53	)(2)		(0.34	)		(0.15	)		(0.12	)		(0.27	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		9.38		0.16	(2)		0.57	(2)		0.73			(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2009(5)		10.00		0.16	(2)		(0.58	)(2)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		9.38		0.17	(2)		0.56	(2)		0.73			(0.06	)		––			(0.06	)
Fiscal year ended 3-31-2009(5)		10.00		0.16	(2)		(0.58	)(2)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		9.39		0.22	(2)		0.55	(2)		0.77			(0.11	)		––			(0.11	)
Fiscal year ended 3-31-2009(5)		10.00		0.25	(2)		(0.57	)(2)		(0.32	)		(0.17	)		(0.12	)		(0.29	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		9.39		0.19	(2)		0.56	(2)		0.75			(0.09	)		––			(0.09	)
Fiscal year ended 3-31-2009(5)		10.00		0.23	(2)		(0.57	)(2)		(0.34	)	��	(0.15	)		(0.12	)		(0.27	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$10.05			8.06	%(3)		$56		0.99	%(4)		4.05	%(4)		1.44	%(4)		3.60	%(4)		14	%
Fiscal year ended 3-31-2009(5)		9.39		- -3.35	(3)		32		1.01	(4)		2.87	(4)		1.56	(4)		2.32	(4)		18
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		10.05		7.77			7		1.74	(4)		3.31	(4)		2.10	(4)		2.95	(4)		14
Fiscal year ended 3-31-2009(5)		9.38		- -4.11			6		1.76	(4)		1.85	(4)		2.16	(4)		1.45	(4)		18
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		10.05		7.77			23		1.74	(4)		3.30	(4)		2.03	(4)		3.01	(4)		14
Fiscal year ended 3-31-2009(5)		9.38		- -4.10			13		1.74	(4)		2.03	(4)		2.17	(4)		1.61	(4)		18
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		10.05		8.20			11		0.74	(4)		4.29	(4)		1.02	(4)		4.01	(4)		14
Fiscal year ended 3-31-2009(5)		9.39		- -3.11			5		0.76	(4)		2.80	(4)		1.21	(4)		2.35	(4)		18
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		10.05		8.06			12		0.99	(4)		4.06	(4)		1.30	(4)		3.75	(4)		14
Fiscal year ended 3-31-2009(5)		9.39		- -3.34			8		1.01	(4)		2.65	(4)		1.47	(4)		2.19	(4)		18

(1)Ratios excluding expense waivers are included only for periods in which the class had waived or
reimbursed expenses.
(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)For the period from April 4, 2008 (commencement of operations of the class) through March 31, 2009.

See Accompanying Notes to Financial Statements.

FINANCIAL HIGHLIGHTS
Ivy Funds

FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MORTGAGE SECURITIES FUND
	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 7.73		$0.16		(2)	$ 0.40		(2)	$ 0.56			$(0.21		)	$    ––			$(0.21		)
Fiscal year ended 3-31-2009		9.62		0.35			(1.77	)		(1.42	)		(0.47	)		––			(0.47	)
Fiscal year ended 3-31-2008		10.59		0.49			(0.97	)		(0.48	)		(0.49	)		––			(0.49	)
Fiscal year ended 3-31-2007		10.44		0.51			0.15			0.66			(0.51	)		––			(0.51	)
Fiscal year ended 3-31-2006		10.68		0.48			(0.24	)		0.24			(0.48	)		––			(0.48	)
Fiscal year ended 3-31-2005		10.96		0.49			(0.27	)		0.22			(0.49	)		(0.01	)		(0.50	)
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		7.73		0.12	(2)		0.39	(2)		0.51			(0.16	)		––			(0.16	)
Fiscal year ended 3-31-2009		9.62		0.26			(1.77	)		(1.51	)		(0.38	)		––			(0.38	)
Fiscal year ended 3-31-2008		10.59		0.39			(0.97	)		(0.58	)		(0.39	)		––			(0.39	)
Fiscal year ended 3-31-2007		10.44		0.40			0.15			0.55			(0.40	)		––			(0.40	)
Fiscal year ended 3-31-2006		10.68		0.36			(0.24	)		0.12			(0.36	)		––			(0.36	)
Fiscal year ended 3-31-2005		10.96		0.37			(0.27	)		0.10			(0.37	)		(0.01	)		(0.38	)
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		7.73		0.14	(2)		0.39	(2)		0.53			(0.18	)		––			(0.18	)
Fiscal year ended 3-31-2009		9.62		0.29			(1.77	)		(1.48	)		(0.41	)		––			(0.41	)
Fiscal year ended 3-31-2008		10.59		0.41			(0.97	)		(0.56	)		(0.41	)		––			(0.41	)
Fiscal year ended 3-31-2007		10.44		0.42			0.15			0.57			(0.42	)		––			(0.42	)
Fiscal year ended 3-31-2006		10.68		0.38			(0.24	)		0.14			(0.38	)		––			(0.38	)
Fiscal year ended 3-31-2005		10.96		0.38			(0.27	)		0.11			(0.38	)		(0.01	)		(0.39	)
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		7.73		0.17	(2)		0.40	(2)		0.57			(0.22	)		––			(0.22	)
Fiscal year ended 3-31-2009		9.62		0.34			(1.77	)		(1.43	)		(0.46	)		––			(0.46	)
Fiscal year ended 3-31-2008(5)		10.59		0.44			(0.97	)		(0.53	)		(0.44	)		––			(0.44	)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		7.73		0.18	(2)		0.40	(2)		0.58			(0.23	)		––			(0.23	)
Fiscal year ended 3-31-2009		9.62		0.40			(1.77	)		(1.37	)		(0.52	)		––			(0.52	)
Fiscal year ended 3-31-2008(5)		10.59		0.57			(0.97	)		(0.40	)		(0.57	)		––			(0.57	)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		7.73		0.19	(2)		0.39	(2)		0.58			(0.23	)		––			(0.23	)
Fiscal year ended 3-31-2009		9.62		0.38			(1.77	)		(1.39	)		(0.50	)		––			(0.50	)
Fiscal year ended 3-31-2008		10.59		0.51			(0.97	)		(0.46	)		(0.51	)		––			(0.51	)
Fiscal year ended 3-31-2007		10.44		0.52			0.15			0.67			(0.52	)		––			(0.52	)
Fiscal year ended 3-31-2006		10.68		0.48			(0.24	)		0.24			(0.48	)		––			(0.48	)
Fiscal year ended 3-31-2005		10.96		0.48			(0.27	)		0.21			(0.48	)		(0.01	)		(0.49	)

	Net Asset Value, End of Period		Total Return			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(1)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(1)			Portfolio Turnover Rate
Class A Shares
Six-month period ended       9-30-2009 (unaudited)	$ 8.08			7.32	%(3)		$125			1.49	%(4)		4.18	%(4)		––	%		––	%		119	%
Fiscal year ended 3-31-2009		7.73	- -15.15		(3)		132			1.29			4.32			––			––			149
Fiscal year ended 3-31-2008		9.62		- -4.69	(3)		256			1.14			4.80			––			––			98
Fiscal year ended 3-31-2007		10.59		6.52	(3)		278			1.14			4.90			––			––			121
Fiscal year ended 3-31-2006		10.44		2.24	(3)		243			1.05			4.51			1.16			4.40			154
Fiscal year ended 3-31-2005		10.68		2.12	(3)		188			0.95			4.59			1.23			4.31			200
Class B Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		6.72			4			2.70	(4)		3.05	(4)		––			––			119
Fiscal year ended 3-31-2009		7.73	- -16.06				5			2.33			3.39			––			––			149
Fiscal year ended 3-31-2008		9.62		- -5.62			11			2.11			3.82			––			––			98
Fiscal year ended 3-31-2007		10.59		5.45			12			2.16			3.88			––			––			121
Fiscal year ended 3-31-2006		10.44		1.12			11			2.16			3.41			––			––			154
Fiscal year ended 3-31-2005		10.68		0.92			7			2.16			3.29			––			––			200
Class C Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		6.96			7			2.24	(4)		3.55	(4)		––			––			119
Fiscal year ended 3-31-2009		7.73	- -15.77				8			2.02			3.64			––			––			149
Fiscal year ended 3-31-2008		9.62		- -5.43			17			1.92			4.02			––			––			98
Fiscal year ended 3-31-2007		10.59		5.69			19			1.93			4.11			––			––			121
Fiscal year ended 3-31-2006		10.44		1.34			19			1.93			3.63			––			––			154
Fiscal year ended 3-31-2005		10.68		1.05			12			2.03			3.41			––			––			200
Class E Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		7.51	(3)		––	*		1.14	(4)		4.46	(4)		2.17	(4)		3.43	(4)		119
Fiscal year ended 3-31-2009		7.73	- -15.21		(3)		––	*		1.38			3.87			1.94			3.31			149
Fiscal year ended 3-31-2008(5)		9.62		- -5.20	(3)		––	*		1.73	(4)		4.20	(4)		––			––			98	(6)
Class I Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		7.65			1			0.93	(4)		4.46	(4)		––			––			119
Fiscal year ended 3-31-2009		7.73	- -14.70				––	*		0.79			4.52			––			––			149
Fiscal year ended 3-31-2008(5)		9.62		- -4.05			––	*		0.78	(4)		5.15	(4)		––			––			98	(6)
Class Y Shares
Six-month period ended       9-30-2009 (unaudited)		8.08		7.57			3			1.12	(4)		4.64	(4)		––			––			119
Fiscal year ended 3-31-2009		7.73	- -14.91				3			1.02			4.73			––			––			149
Fiscal year ended 3-31-2008		9.62		- -4.57			9			1.01			4.93			––			––			98
Fiscal year ended 3-31-2007		10.59		6.66			13			1.00			5.04			––			––			121
Fiscal year ended 3-31-2006		10.44		2.26			7			1.03			4.53			––			––			154
Fiscal year ended 3-31-2005		10.68		1.95			6			1.12			4.41			––			––			200

*Not shown due to rounding.
(1)Ratios excluding expense waivers are included only for periods in which the class had waived or
reimbursed expenses.
(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)For the period from April 2, 2007 (commencement of operations of the class) through March 31, 2008.
(6)For the fiscal year ended March 31, 2008.

See Accompanying Notes to Financial Statements.

NOTES TO FINANCIAL STATEMENTS

Ivy Funds (amounts in thousands)

SEPTEMBER 30, 2009 (UNAUDITED)

1. ORGANIZATION AND SIGNIFICANT
ACCOUNTING POLICIES

Ivy Funds (the Trust) is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Trust issues 18 series of capital shares; each series represents ownership of a separate mutual fund (Fund). The investment objective(s), policies and risk factors of each Fund are described more fully in that Fund's prospectus and Statement of Additional Information. The Trust's investment manager is Ivy Investment Management Company (IICO or the Manager).

Each Fund offers Class A, Class B, Class C, Class I and Class Y shares. Certain Funds may offer Class E and/or Class R shares. Class A and Class E shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge but may be subject to a contingent deferred sales charge (CDSC). Class I, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. Advisor Class shares were formerly offered by certain Funds, but are no longer available for sale. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Earnings, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer agent and shareholder servicing fees, directly attributable to that class. Class A, B, C, E, R and Y have separate distribution and/or service plans . No such plan has been adopted for Class I or Advisor Class shares. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

The following is a summary of significant accounting policies consistently followed by each Fund.

Securities Valuation. Each Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange (the NYSE), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

Securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. Over-the-counter securities and listed securities for which no price is readily available are valued at the average of the last bid and asked prices. Security prices are based on quotes that are obtained from an independent pricing service approved by the Board of Trustees.

To determine values of fixed-income securities, the independent pricing service utilizes such factors as current quotations by broker/dealers, coupon, maturity, quality, type of issue, trading characteristics, and other yield and risk factors it deems relevant in determining valuations. Securities which cannot be valued by the independent pricing service are valued using valuations obtained from dealers that make markets in the securities.

Options and swaps are valued by the independent pricing service unless the price is unavailable, in which case they are valued at either the mean between the last bid and asked price or using a valuation obtained from a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Mutual funds, including investment funds, are typically valued at the net asset value reported at the close of each business day.

Forward foreign currency contracts are valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE as provided by a bank, dealer or independent pricing service.

Senior loans are valued using a composite price from more than one broker or dealer as obtained from an independent pricing service.

Short-term securities are valued on the basis of amortized cost (which approximates market value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium.

Because many foreign markets close before the U.S. markets, events may occur between the close of the foreign market and the close of the U.S. markets that could have a material impact on the valuation of foreign securities. The Funds, under the supervision of the Board of Trustees, evaluate the impact of these events and may adjust the valuation of foreign securities to reflect the fair value as of the close of the U.S. markets. In addition, all securities for which market values are not readily available or are deemed unreliable are appraised at fair value as determined in good faith under the direction of the Board of Trustees. As of September 30, 2009, the following had aggregate investments valued at fair value (unrealized appreciation (depreciation) for futures contracts) as shown:

Fund Name	Total Amount of Fair Valued Securities				Percent of Net Assets
Ivy European Opportunities Fund		$	––	*		0.00	%
Ivy Pacific Opportunities Fund			7,961			1.28	%
Ivy Balanced Fund			––	*		0.00	%
Ivy Global Natural Resources Fund			31,641			0.62	%
Ivy Bond Fund			25			0.02	%
Ivy Mortgage Securities Fund			––	*		0.00	%
*Not shown due to rounding.

Security Transactions and Related Investment Income. Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Realized gains and losses are calculated on the identified cost basis. Interest income is recorded on the accrual basis and includes paydown gain (loss) and accretion of discounts and amortization of premiums. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Upon notification from issuers, some of the distributions received from a real estate investment trust or publically traded partnership may be redesignated as a reduction of cost of the related investment and/or realized gain.

Securities on a When-Issued or Delayed Delivery Basis. Certain Funds may purchase securities on a "when-issued" basis, and may purchase or sell securities on a "delayed delivery" basis. "When-issued" or "delayed delivery" refers to securities whose terms and indenture are available and for which a market exists, but which are not available for immediate delivery. Delivery and payment for securities that have been purchased by the Fund on a when-issued basis normally take place within six months and possibly as long as two years or more after the trade date. During this period, such securities do not earn interest, are subject to market fluctuation and may increase or decrease in value prior to their delivery. The purchase of securities on a when-issued basis may increase the volatility of the Fund's net asset value to the extent the Fund executes such transactions while remaining substantially fully invested. When the Fund engages in when-issued or delayed delivery transactions, it relies on the buyer or seller, as the case may be, to complete the transaction. Their failure to do so may cause the Fund to lose the opportunity to obtain or dispose of the security at a price and yield it considers advantageous. The Fund maintains internally designated assets with a market value equal to or greater than the amount of its purchase commitments. The Fund may also sell securities that it purchased on a when-issued or delayed-delivery basis prior to settlement of the original purchase.

Mortgage Dollar Roll Transactions. Certain Funds enter into dollar roll transactions on securities issued or to be issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation, in which the Fund sells mortgage securities and simultaneously agrees to repurchase similar (same type, coupon and maturity) securities at a later date at an agreed upon price. During the period between the sale and repurchase, the Fund forgoes principal and interest paid on the mortgage securities sold. The Fund is compensated from negotiated fees paid by brokers offered as an inducement to the Fund to "roll over" their purchase commitments. These fees are recognized over the roll period and are included in Interest and amortization in the Statement of Operations. During the fiscal period ended September 30, 2009, Ivy Bond Fund and Ivy Mortgage Securities Fund engaged in this type of transaction.

Interest Only Obligations. These securities entitle the owner to receive only the interest portion from a bond, Treasury note or pool of mortgages. These securities are generally created by a third party separating a bond or pool of mortgages into distinct interest-only and principal-only securities. As the principal (par) amount of a bond or pool of mortgages is paid down, the amount of interest income earned by the owner will decline as well.

Credit Risk. Certain Funds may hold high-yield and/or non-investment-grade bonds, which may be subject to a greater degree of credit risk. Credit risk relates to the ability of the issuer to meet interest or principal payments or both as they become due. The Fund may acquire securities in default, and is not obligated to dispose of securities whose issuers subsequently default.

Foreign Currency Translation. Each Fund's accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service authorized by the Board of Trustees. 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. Each Fund combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments. Foreign exchange rates are valued as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading, primarily using an independent pricin g service authorized by the Board of Trustees.

Repurchase Agreements. Each Fund may purchase securities subject to repurchase agreements, which are instruments under which the Fund purchases a security and the seller (normally a commercial bank or broker-dealer) agrees, at the time of purchase, that it will repurchase the security at a specified time and price. Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, generally remains at least equal to the value of the agreement, including accrued interest thereon. The collateral for the repurchase agreement is held by a custodian bank.

Investments with Off-Balance Sheet Risk. Certain Funds may enter into financial instrument transactions (such as swaps, futures, options and other derivatives) that may have off-balance sheet market risk. Off-balance sheet market risk exists when the maximum potential loss on a particular financial instrument is greater than the value of such financial instrument, as reflected in the Statement of Assets and Liabilities.

Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated on a daily basis to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class.

Income Taxes. It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has 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, 2009, management believes that under this standard no liability for unrecognized tax positions is required. The Funds are subject to examination by U.S. federal and state authorities for returns filed for tax years after 2004.

Dividends and Distributions to Shareholders. 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.

Custodian Fees. "Custodian fees" in the Statement of Operations may include interest expense incurred by a Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. A Fund pays interest to its custodian on such cash overdrafts, to the extent they are not offset by positive cash balances maintained by that Fund, at a rate equal to the Federal Funds Rate plus 0.50%. The "Earnings credit" line item, if applicable, represents earnings on cash balances maintained by that Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

Trustees' Fees. Fees paid to the Trustees can be paid in cash or deferred to a later date, at the election of each Trustee according to the Deferred Fee Agreement entered into between the Trust and the Trustee(s). Each Fund records its portion of the deferred fees as a liability on the Statement of Assets and Liabilities. All fees paid in cash plus any appreciation (depreciation) in the underlying deferred plan are shown on the Statement of Operations.

Indemnifications. The Trust's organizational documents provide current and former Trustees and Officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Trust. In the normal course of business, the Trust may also enter into contracts that provide general indemnifications. The Trust's maximum exposure under these arrangements is unknown and is dependent on future claims that may be made against the Trust. The risk of material loss from such claims is considered remote.

Concentration of Risk. Certain Funds may have a concentration of risk which includes, but is not limited to, investing in international securities. International investing involves additional risks including, but not limited to, currency fluctuations, political or economic conditions affecting the foreign country and differences in accounting standards and foreign regulations.

Other. 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. Management has performed a review for subsequent events through November 20, 2009, the date this report was issued.

2. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS

Management Fees. IICO, a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as the Trust's investment manager. IICO provides investment advice, for which services it is paid a fee. The fee is payable by each Fund at the following annual rates and is accrued and paid monthly:

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 Micro Cap Growth Fund	Up to $1 Billion	0.95%
	Over $1 Billion up to $2 Billion	0.93%
	Over $2 Billion up to $3 Billion	0.90%
	Over $3 Billion	0.86%
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 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 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 up to $2 Billion	0.65%
	Over $2 Billion 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 up to $2 Billion	0.83%
	Over $2 Billion up to $3 Billion	0.80%
	Over $3 Billion	0.70%
Ivy International Growth 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	0.70%
Ivy Pacific Opportunities Fund	Up to $500 Million	1.00%
	Over $500 Million 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 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 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 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 up to $1 Billion	0.50%
	Over $1 Billion 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 up to $1 Billion	0.60%
	Over $1 Billion 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 up to $1 Billion	0.45%
	Over $1 Billion up to $1.5 Billion	0.40%
	Over $1.5 Billion	0.35%

Effective August 26, 2009, the fee is payable at the following annual rates for Ivy European Opportunities Fund:

Up to $250 Million	0.90%
Over $250 Million up to $500 Million	0.85%
Over $500 Million	0.75%

IICO has entered into Subadvisory Agreements with the following entities on behalf of certain Funds.

Under an agreement between IICO and Mackenzie Financial Corporation (Mackenzie), Mackenzie serves as subadvisor to Ivy Global Natural Resources Fund. Under an agreement between IICO and Mackenzie, Mackenzie also serves as subadvisor to Ivy Cundill Global Value Fund. Mackenzie Cundill Investment Management Ltd. (Cundill) is one of the companies that comprises The Cundill Division of Mackenzie and, under a Memorandum of Understanding with Mackenzie, serves as the investment subadvisor to, and as such provides investment advice to, and generally conducts the investment management program for, Ivy Cundill Global Value Fund. Wall Street Associates serves as subadvisor to Ivy Micro Cap Growth Fund. Advantus Capital Management, Inc. serves as subadvisor to Ivy Real Estate Securities Fund, Ivy Bond Fund and Ivy Mortgage Securities Fund. Each subadvisor makes investment decisions in accordance with the Fund's investment objectives, policies and restrictions under the supervision of IICO and the Board of Trustees. IIC O pays all costs associated with retaining the subadvisors. Effective April 15, 2009, IICO serves as investment manager to Ivy International Balanced Fund. Prior to April 15, 2009, Templeton Investment Counsel, LLC (Templeton) served as subadvisor to Ivy International Balanced Fund. Effective July 1, 2009, IICO serves as investment manager to Ivy European Opportunities Fund. Prior to July 1, 2009, Henderson Global Investors (North America) Inc. served as subadvisor to Ivy European Opportunities Fund.

Accounting Services Fees. Pursuant to a Master Fund Accounting Services Agreement, IICO provides certain accounting and pricing services for each Fund. As of March 31, 2003, IICO assigned its responsibilities under the Accounting Services Agreement to Waddell & Reed Services Company, doing business as WI Services Company (WISC), an indirect subsidiary of WDR. WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund, other than Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund (the Ivy Managed Funds), pays WISC 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 WISC 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 WISC, for its services, a monthly fee of one-twelfth of the annual fee shown in the following table:

Accounting Services Fee
Average Net Asset Level (in millions)						Annual Fee Rate for Each Level
From	$	0	to	$	10	$	0
From	$	10	to	$	25	$	5.748
From	$	25	to	$	50	$	11.550
From	$	50	to	$	100	$	17.748
From	$	100	to	$	200	$	24.198
From	$	200	to	$	350	$	31.602
From	$	350	to	$	550	$	41.250
From	$	550	to	$	750	$	48.150
From	$	750	to	$	1,000	$	60.798
	$	1,000 and Over				$	74.250

In addition, for each class of shares in excess of one, each of the Ivy Managed Funds pays WISC a monthly per-class fee equal to 1.25% of the monthly accounting services base fee.

Administrative Fee. Each Fund also pays WISC a monthly fee at the annual rate of 0.01%, or one basis point, for the first $1 billion of net assets with no fee charged for net assets in excess of $1 billion. This fee is voluntarily waived by WISC until a Fund's net assets are at least $10 million.

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, with respect to Class A, Class B, Class C, Class E and Advisor Class shares, for each shareholder account that was in existence at any time during the prior month, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958. For Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.20 of 1% of the average daily net assets of the class for the preceding month. For Class I and Class Y shares, each Fund pays a monthly fee equal to one-twelfth of 0.15 of 1% of the average daily net assets of the class for the preceding month. Each Fund also reimburses WISC for certain out-of-pocket costs for all classes.
Non-networked accounts. Each Fund pays WISC an annual fee (payable monthly) for each account of the Fund that is non-networked as shown above; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios, Ivy Funds and Ivy Funds, Inc.) reaches certain levels.
Networked accounts. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WISC 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. If the aggregate annual rate of the WISC transfer agent fee and the costs charged by the financial services companies exceeds $18.00 per account for a Fund, WISC will reimburse the Fund the amount in excess of $18.00.
Broker accounts. 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 WISC if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. Each Fund may pay such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Distribution and Service Plan. General. 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.

Class A Shares. Each Fund may pay a distribution and/or service fee to Ivy Funds Distributors, Inc. (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 the 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 of that class.

Class B and Class C Shares. Each Fund may pay IFDI a service fee 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. 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.

Class E Shares. Each Fund may pay IFDI a fee up to 0.25% of the Fund's average annual net assets attributable to that class, 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 field sales offices; engaging in other activities useful in providing personal service to Class E share holders 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.

Class R Shares. Ivy Global Natural Resources Fund and Ivy Real Estate Securities Fund may pay IFDI a fee of up to 0.50%, on an annual basis, of the average daily net assets of the Fund 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.

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.

As described above, the Distribution and Service Plan adopted by each Fund (other than the Ivy Managed Funds, Ivy Micro Cap Growth Fund and Ivy Global Bond Fund) provides for the payment of a fee to IFDI to reimburse IFDI for amounts expended and further provides that expenses for a period not reimbursed due to expense limitations may be carried forward to subsequent periods to be reimbursed. The amounts of these non-reimbursed expenses are set forth below:

	Class A		Class B			Class C
Ivy Dividend Opportunities Fund	$	66	$	––		$	16
Ivy Small Cap Value Fund		100		––	*		11
Ivy Value Fund		26		––			––	*
Ivy Cundill Global Value Fund		381		––	*		––
Ivy European Opportunities Fund		188		––			19
Ivy International Balanced Fund		136		––			14
Ivy International Core Equity Fund		120		1			24
Ivy International Growth Fund		200		––			3
Ivy Pacific Opportunities Fund		221		––	*		40
Ivy Balanced Fund		23		––	*		––
Ivy Global Natural Resources Fund	1,054			1			78
Ivy Real Estate Securities Fund		213		––	*		23
Ivy Bond Fund		38		––			2
Ivy Mortgage Securities Fund		167		––			27
*Not shown due to rounding.

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.

Sales Charges. 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 fiscal period ended September 30, 2009, IFDI received the following amounts in sales commissions and CDSC:

	Gross Sales Commissions		CDSC
			Class A			Class B			Class C			Class E
Ivy Dividend Opportunities Fund		$ 126		$ 1			$ 5			$ 8			$ ––
Ivy Micro Cap Growth Fund		80		––			––	*		––	*		––
Ivy Small Cap Value Fund		151		1			2			1			––
Ivy Value Fund		23		––	*		––	*		––	*		––
Ivy Managed European/Pacific Fund		70		––			––	*		––	*		––
Ivy Managed International Opportunities Fund		138		––	*		1			––	*		––
Ivy Cundill Global Value Fund		133		––	*		31			1			––
Ivy European Opportunities Fund		129		––	*		11			––	*		––
Ivy International Balanced Fund		134		––	*		9			––	*		––
Ivy International Core Equity Fund		230		1			5			3			––
Ivy International Growth Fund		43		––	*		6			––	*		––
Ivy Pacific Opportunities Fund		538		1			4			1			––
Ivy Balanced Fund		64		––			6			10			––
Ivy Global Natural Resources Fund		1,805		11			126			53			––
Ivy Real Estate Securities Fund		139		––	*		3			––	*		––
Ivy Bond Fund		108		––	*		6			2			––
Ivy Global Bond Fund		65		––	*		4			3			––
Ivy Mortgage Securities Fund		52		––			3			2			––
*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 fiscal period ended September 30, 2009, the following amounts were paid by IFDI:

Ivy Dividend Opportunities Fund	$	158
Ivy Micro Cap Growth Fund		71
Ivy Small Cap Value Fund		171
Ivy Value Fund		29
Ivy Managed European/Pacific Fund		65
Ivy Managed International Opportunities Fund		122
Ivy Cundill Global Value Fund		143
Ivy European Opportunities Fund		135
Ivy International Balanced Fund		143
Ivy International Core Equity Fund		362
Ivy International Growth Fund		51
Ivy Pacific Opportunities Fund		608
Ivy Balanced Fund		125
Ivy Global Natural Resources Fund	2,812
Ivy Real Estate Securities Fund		146
Ivy Bond Fund		117
Ivy Global Bond Fund		130
Ivy Mortgage Securities Fund		54

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the fiscal period ended September 30, 2009 are as follows:

Fund	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Reduction	Expense Reduced
Ivy Dividend Opportunities Fund	Class E	Contractual	8-1-2008	7-31-2010	1.37%	$11	12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Micro Cap Growth Fund	All classes	Contractual	7-31-2009	7-31-2010	NA	$23(1)	Investment Management Fee
	Class A	Contractual	7-31-2009	7-31-2010	1.95%	$12	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	7-31-2009	7-31-2010	1.70%	$––*	Shareholder Servicing
Ivy Small Cap Value Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Value Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Managed European/Pacific Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Managed International Opportunities Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Cundill Global Value Fund	Class A	Contractual	6-16-2003	12-31-2011	2.75$	$––	NA
	Class A	Voluntary	NA	NA	1.90%	$135	12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Voluntary	NA	NA	2.55%	$––	NA
	Class E	Contractual	8-1-2008	7-31-2010	1.59%	$2	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class Y	Voluntary	NA	NA	1.20%	$14	12b-1 Fees and/or Shareholder Servicing
	Advisor Class	Contractual	6-16-2003	12-31-2011	2.50%	$––	NA
Ivy European Opportunities Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy International Balanced Fund	Class E	Contractual	8-1-2008	7-31-2010	1.33%	$6	12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
(1)Due to Class A and/or Class I contractual expense limits, investment management fees were waived for all share classes.
Ivy International Core Equity Fund	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class E	Contractual	8-1-2008	7-31-2010	1.53%	$8	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy International Growth Fund	Class Y	Contractual	8-1-2008	7-31-2010	1.42%	$2	12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Pacific Opportunities Fund	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
	Advisor Class	Contractual	6-16-2003	12-31-2011	2.50%	$––	NA
Ivy Balanced Fund	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Global Natural Resources Fund	Class A	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class A	Voluntary	NA	NA	1.70%	$––	NA
	Class B	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Contractual	6-16-2003	12-31-2011	3.50%	$––	NA
	Class C	Voluntary	NA	NA	2.40%	$––	NA
	Class E	Contractual	8-1-2008	7-31-2010	1.27%	$28	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-16-2003	12-31-2011	2.75%	$––	NA
	Class Y	Voluntary	NA	NA	1.20%	$273	12b-1 Fees and/or Shareholder Servicing
	Advisor Class	Contractual	6-16-2003	12-31-2011	2.50%	$––	NA
Ivy Real Estate Securities Fund	Class E	Contractual	8-1-2008	7-31-2010	1.67%	$4	12b-1 Fees and/or Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Bond Fund	Class E	Contractual	8-1-2008	7-31-2010	1.21%	$4	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2008	7-31-2010	1.21%	$––	NA
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
Ivy Global Bond Fund	All Classes	Contractual	6-2-2008	7-31-2010	NA	$52(1)	Investment Management Fee
	Class A	Contractual	6-2-2008	7-31-2010	0.99%	$71	12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2010	1.74%	$7	12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2010	1.74%	$14	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2010	0.74%	$6	Shareholder Servicing
	Class Y	Contractual	6-2-2008	7-31-2010	0.99%	$9	12b-1 Fees and/or Shareholder Servicing
Ivy Mortgage Securities Fund	Class E	Contractual	8-1-2008	7-31-2010	1.14%	$2	12b-1 Fees and Shareholder Servicing
	Class Y	Voluntary	NA	NA	Not to exceed Class A	$––	NA
(1)Due to Class A, Class B, Class C, Class E, Class I and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2009 are shown as a receivable from affiliate on the Statement of Assets and Liabilities.

3. INVESTMENT VALUATIONS

Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Accounting standards establish 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 factors 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 - unadjusted 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 fair value hierarchy levels as of September 30, 2009:

Fund	Level 1			Level 2		Level 3
Ivy Dividend Opportunities Fund
Assets
Investments in Securities
Common Stocks		$	232,204	$	––	$	––
Short-Term Securities			––		15,745		––
Total Investments in Securities			232,204		15,745		––
Ivy Micro Cap Growth Fund
Assets
Investments in Securities
Common Stocks		$	19,315	$	––	$	––
Short-Term Securities			––		776		––
Total Investments in Securities			19,315		776		––
Ivy Small Cap Value Fund
Assets
Investments in Securities
Common Stocks		$	180,335	$	––	$	––
Short-Term Securities			––		7,800		––
Total Investments in Securities			180,335		7,800		––
Ivy Value Fund
Assets
Investments in Securities
Common Stocks		$	52,140	$	––	$	––
Short-Term Securities			––		1,577		––
Total Investments in Securities			52,140		1,577		––
Liabilities
Written Options			51		––		––
Ivy Managed European/Pacific Fund
Assets
Investments in Securities
Affiliated Mutual Funds		$	68,353	$	––	$	––
Short-Term Securities			––		30		––
Total Investments in Securities			68,353		30		––
Ivy Managed International Opportunities Fund
Assets
Investments in Securities
Affiliated Mutual Funds		$	140,047	$	––	$	––
Short-Term Securities			––		277		––
Total Investments in Securities			140,047		277		––
Ivy Cundill Global Value Fund
Assets
Investments in Securities
Common Stocks		$	314,161	$	––	$	––
Preferred Stocks			14,748		––		––
Short-Term Securities			––		8,423		––
Total Investments in Securities			328,909		8,423		––
Forward Foreign Currency Contracts			––		228		––
Liabilities
Forward Foreign Currency Contracts			––		6,680		––
Ivy European Opportunities Fund
Assets
Investments in Securities
Common Stocks		$	241,937	$	––	$	––
Preferred Stocks			1,749		––		––
Rights			134		––		––
Short-Term Securities			––		9,025		––
Total Investments in Securities			243,820		9,025		––
Ivy International Balanced Fund
Assets
Investments in Securities
Common Stocks		$	161,840	$	3,033	$	––
Preferred Stocks			3,681		––		––
Corporate Debt Securities			––		29,966		––
Other Government Securities			––		45,846		––
Short-Term Securities			––		7,983		––
Total Investments in Securities			165,521		86,828		––
Forward Foreign Currency Contracts			––		155		––
Ivy International Core Equity Fund
Assets
Investments in Securities
Common Stocks		$	471,770	$	––	$	––
Preferred Stocks			8,375		––		––
Short-Term Securities			––		18,763		––
Total Investments in Securities			480,145		18,763		––
Ivy International Growth Fund
Assets
Investments in Securities
Common Stocks		$	171,464	$	––	$	––
Preferred Stocks			4,554		––		––
Short-Term Securities			––		6,088		––
Total Investments in Securities			176,018		6,088		––
Ivy Pacific Opportunities Fund
Assets
Investments in Securities
Common Stocks		$	589,171	$	16,451	$	––
Investment Funds			8,275		––		2,135
Short-Term Securities			––		9,693		––
Total Investments in Securities			597,446		26,144		2,135
Liabilities
Written Options			221		––		––
Ivy Balanced Fund
Assets
Investments in Securities
Common Stocks		$	117,475	$	––	$	––
Corporate Debt Securities			––		28,100		––	*
United States Government Agency Obligations			––		3,038		––
United States Government Obligations			––		9,931		––
Short-Term Securities			––		2,829		––
Total Investments in Securities			117,475		43,898		––	*
Ivy Global Natural Resources Fund
Assets
Investments in Securities
Common Stocks		$	4,342,799	$	––	$	8,712
Preferred Stocks			203,768		––		17,920
Call Options			261,190		––		––
Corporate Debt Securities			––		––		5,009
Short-Term Securities			––		198,968		––
Total Investments in Securities			4,807,757		198,968		31,641
Forward Foreign Currency Contracts			––		125		––
Liabilities
Forward Foreign Currency Contracts			––		646		––
Futures Contracts			9,246		––		––
Ivy Real Estate Securities Fund
Assets
Investments in Securities
Common Stocks		$	251,584	$	––	$	––
Investment Funds			518		––		––
Short-Term Securities			––		7,854		––
Total Investments in Securities			252,102		7,854		––
Ivy Bond Fund
Assets
Investments in Securities
Preferred Stocks		$	––	$	281	$	––
Corporate Debt Securities			––		69,028		2,185
United States Government Agency Obligations			––		48,143		––
United States Government Obligations			––		16,046		––
Short-Term Securities			––		24,902		––
Total Investments in Securities			––		158,400		2,185
Futures Contracts			106		––		––
Liabilities
Futures Contracts			148		––		––
Ivy Global Bond Fund
Assets
Investments in Securities
Corporate Debt Securities		$	––	$	68,983	$	198
Other Government Securities			––		3,063		319
Senior Loans			––		743		––
United States Government Agency Obligations			––		5,146		––
United States Government Obligations			––		10,013		––
Short-Term Securities			––		19,777		––
Total Investments in Securities			––		107,725		517
Forward Foreign Currency Contracts			––		41		––
Liabilities
Forward Foreign Currency Contracts			––		662		––
Ivy Mortgage Securities Fund
Assets
Investments in Securities
Corporate Debt Securities		$	––	$	39,177	$	3,854
United States Government Agency Obligations			––		88,551		––
United States Government Obligations			––		541		––
Short-Term Securities			––		36,105		––
Total Investments in Securities			––		164,374		3,854
Liabilities
Futures Contracts			253		––		––

The following tables are a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:

Fund	Common Stocks			Preferred Stocks		Investment Funds		Corporate Debt Securities			Other Government Securities		Written Options
Ivy Pacific Opportunities Fund
Beginning Balance 4-1-09		$	––	$	––	$	1,290	$	––		$	––	$	(585	)
Net realized gain (loss)			––		––		––		––			––		122
Net unrealized appreciation (depreciation)			––		––		845		––			––		34
Net purchases (sales)			––		––		––		––			––		429
Transfers in and/or (out) of Level 3       during the period			––		––		––		––			––		––
Ending Balance 9-30-09		$	––		$	$	2,135	$	––		$	––	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	845	$	––		$	––	$	––
Ivy Balanced Fund
Beginning Balance 4-1-09		$	––	$	––	$	––	$	––	*	$	––	$	––
Net realized gain (loss)			––		––		––		6			––		––
Net unrealized appreciation (depreciation)			––		––		––		3			––		––
Net purchases (sales)			––		––		––		(9	)		––		––
Transfers in and/or (out) of Level 3       during the period			––		––		––		––			––		––
Ending Balance 9-30-09		$	––	$	––	$	––	$	––	*	$	––	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	––	$	3		$	––	$	––
*Not shown due to rounding.
Ivy Global Natural Resources Fund
Beginning Balance 4-1-09		$	8,712	$	17,920	$	––	$	3,826		$	––	$	––
Net realized gain (loss)			––		––		––		––			––		––
Net unrealized appreciation (depreciation)			––		––		––		1,183			––		––
Net purchases (sales)			––		––		––		––			––		––
Transfers in and/or (out) of Level 3       during the period			––		––		––		––			––		––
Ending Balance 9-30-09		$	8,712	$	17,920	$	––	$	5,009		$	––	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	––	$	1,183		$	––	$	––
Ivy Bond Fund
Beginning Balance 4-1-09		$	––	$	––	$	––	$	792		$	––	$	––
Net realized gain (loss)			––		––		––		28			––		––
Net unrealized appreciation (depreciation)			––		––		––		321			––		––
Net purchases (sales)			––		––		––		324			––		––
Transfers in and/or (out) of Level 3       during the period			––		––		––		720			––		––
Ending Balance 9-30-09		$	––	$	––	$	––	$	2,185		$	––	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	––	$	319		$	––	$	––
Ivy Global Bond Fund
Beginning Balance 4-1-09		$	––	$	––	$	––	$	––		$	256	$	––
Net realized gain (loss)			––		––		––		––			––		––
Net unrealized appreciation (depreciation)			––		––		––		––			63		––
Net purchases (sales)			––		––		––		––			––		––
Transfers in and/or (out) of Level 3       during the period			––		––		––		198			––		––
Ending Balance 9-30-09		$	––	$	––	$	––	$	198		$	319	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	––	$	36		$	63	$	––
Ivy Mortgage Securities Fund
Beginning Balance 4-1-09		$	––	$	––	$	––	$	3,610		$	––	$	––
Net realized gain (loss)			––		––		––		(274	)		––		––
Net unrealized appreciation (depreciation)			––		––		––		622			––		––
Net purchases (sales)			––		––		––		(390	)		––		––
Transfers in and/or (out) of Level 3       during the period			––		––		––		286			––		––
Ending Balance 9-30-09		$	––	$	––	$	––	$	3,854		$	––	$	––
Net change in unrealized appreciation       (depreciation) for all Level 3       investments still held as of 9-30-09		$	––	$	––	$	––	$	568		$	––	$	––

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments if applicable, are included on the Statement of Operations on separate lines of the Realized and Unrealized Gain (Loss) section for the corresponding security type indicated above. Additionally, the Net change in unrealized appreciation for all Level 3 investments still held as of September 30, 2009, if applicable, is included on the Statement of Operations on the lines of the Net change in unrealized appreciation (depreciation) section for the corresponding security type indicated above.

Securities' values included in the reconciliations above have been primarily determined through the use of a single quote (or multiple quotes) from dealer(s) in the securities using proprietary valuation models. These quotes involve significant unobservable inputs, and thus the related securities are classified as Level 3 investments.

4. INVESTMENT SECURITIES TRANSACTIONS

For the fiscal period ended September 30, 2009, the cost of purchases and the proceeds from maturities and sales of investment securities, other than U.S. Government and short-term securities, were as follows:

	Purchases			Sales
Ivy Dividend Opportunities Fund		$	47,329	$	45,458
Ivy Micro Cap Growth Fund			14,681		2,634
Ivy Small Cap Value Fund			104,241		77,879
Ivy Value Fund			20,915		20,939
Ivy Managed European/Pacific Fund			11,901		7,408
Ivy Managed International Opportunities Fund			20,571		11,728
Ivy Cundill Global Value Fund			50,566		89,424
Ivy European Opportunities Fund			118,189		135,612
Ivy International Balanced Fund			198,909		208,145
Ivy International Core Equity Fund			316,707		181,695
Ivy International Growth Fund			73,693		55,078
Ivy Pacific Opportunities Fund			304,564		191,528
Ivy Balanced Fund			40,504		299
Ivy Global Natural Resources Fund		2,364,066		2,177,944
Ivy Real Estate Securities Fund			73,856		73,854
Ivy Bond Fund			63,613		55,399
Ivy Global Bond Fund			34,558		7,918
Ivy Mortgage Securities Fund			2,186		20,658

Purchases of and proceeds from maturities and sales of U.S. Government securities were:

	Purchases			Sales
Ivy Balanced Fund		$	––	$	405
Ivy Bond Fund			196,335		193,444
Ivy Global Bond Fund			12,958		358
Ivy Mortgage Securities Fund			164,499		161,077

5. FEDERAL INCOME TAX MATTERS

For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2009 and the related net capital losses and post-October activity updated with information available through the date of this report were as follows:

	Ivy Dividend Opportunities Fund			Ivy Micro Cap Growth Fund		Ivy Small Cap Value Fund		Ivy Value Fund		Ivy Managed European/Pacific Fund		Ivy Managed International Opportunities Fund
Net ordinary income		$	1,929	$  ––		$    ––		$	439	$	2,327	$	3,967
Distributed ordinary income			1,833		––		––		406		2,306		4,073
Undistributed ordinary income			96		––		––		59		21		––
Realized long term capital gains			––		––		––		––		––		––
Distributed long term capital gains			––		––		––		1		2,475		2,172
Undistributed long term capital gains			––		––		––		––		––		––
Tax return of capital			––		––		––		––		––		181
Post-October losses deferred		23,603			5	13,796		2,801		11,467			7,275

	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
Net ordinary income		$	155	$	12,517	$	9,256	$	3,960	$	1,555	$	––
Distributed ordinary income			923		14,674		13,923		7,088		1,528		17,772
Undistributed ordinary income			90		––		375		322		102		––
Realized long term capital gains			––		––		1,427		––		––		––
Distributed long term capital gains			3		18,952		8,752		4,711		––		35,673
Undistributed long term capital gains			––		––		––		––		––		––
Tax return of capital			––		274		––		––		––		––
Post-October losses deferred	71,319			104,368		25,307		47,903		29,793			52,835

	Ivy Balanced Fund				Ivy Global Natural Resources Fund		Ivy Real Estate Securities Fund		Ivy Bond Fund		Ivy Global Bond Fund		Ivy Mortgage Securities Fund
Net ordinary income		$	1,331		$	––	$	5,398	$	4,560	$	1,243	$	11,820
Distributed ordinary income			1,303			248,880		5,873		4,582		977		11,943
Undistributed ordinary income			67			––		836		25		265		64
Realized long term capital gains			––			––		––		––		418		––
Distributed long term capital gains			––	*		540,665		2		––		418		––
Undistributed long term capital gains			––			––		––		––		––		––
Post-October losses deferred	11,436				1,095,210		47,633			2,595		206		15,187
*Not shown due to rounding.

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). Distributions shown above may be reported differently to individual shareholders.

Capital loss carryovers are available to offset future net realized gains incurred in the eight taxable years succeeding the loss year for Federal income tax purposes. The following tables show the totals by year in which the capital loss carryovers will expire if not utilized.

	Ivy Dividend Opportunities Fund			Ivy Small Cap Value Fund		Ivy Value Fund		Ivy Managed European/ Pacific Fund		Ivy Managed International Opportunities Fund
March 31, 2017		$	5,985	$	20,016	$	4,155	$	3	$	3

	Ivy Cundill Global Value Fund			Ivy European Opportunities Fund		Ivy International Core Equity Fund		Ivy International Growth Fund		Ivy Pacific Opportunities Fund
March 31, 2010		$	––	$	––	$	––	$	146,785	$	157
March 31, 2011			––		––		––		47,214		––
March 31, 2017			16,672		49,771		35,471		8,672		31,589
Total carryover		$	16,672	$	49,771	$	35,471	$	202,671	$	31,746

	Ivy Balanced Fund			Ivy Global Natural Resources Fund		Ivy Real Estate Securities Fund		Ivy Bond Fund		Ivy Mortgage Securities Fund
March 31, 2010		$	––	$	25	$	––	$	––	$	––
March 31, 2014			––		––		––		––		164
March 31, 2015			––		––		––		336		484
March 31, 2016			––		––		––		––		902
March 31, 2017			606		483,760		6,148		2,157		6,969
Total carryover		$	606	$	483,785	$	6,148	$	2,493	$	8,519

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 for the period ending March 31, 2010.

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 $3,234 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.

6. MULTICLASS OPERATIONS

Transactions in capital stock are summarized below.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Dividend Opportunities Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,449		$	28,196			9,915		$	124,798
Class B		91			1,033			507			6,136
Class C		437			4,992			4,154			48,546
Class E		19			218			59			818
Class I		352			3,946			325			3,526
Class Y		236			2,705			1,955			28,123
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		69			836			123			1,394
Class B		1			6			––			––
Class C		6			76			9			92
Class E		1			12			1			14
Class I		2			19			2			24
Class Y		6			77			13			149
Shares redeemed:
Class A	(2,526		)	(29,296		)		(5,736	)		(68,671	)
Class B		(167	)		(1,919	)		(273	)		(3,317	)
Class C		(904	)	(10,210		)		(1,906	)		(21,102	)
Class E		(14	)		(162	)		(21	)		(284	)
Class I		(177	)		(2,102	)		(118	)		(1,212	)
Class Y		(363	)		(4,035	)		(1,247	)		(15,276	)
Net increase (decrease)		(482	)	$	(5,608	)		7,762		$	103,758

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Micro Cap Growth Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,067		$	13,553			34		$	3,336
Class B		16			199			2			168
Class C		44			562			1			148
Class Y		2			19			1			100
Class I		––	*		1			1			100
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			––			––
Class B		––			––			––			––
Class C		––			––			––			––
Class Y		––			––			––			––
Class I		––			––			––			––
Shares redeemed:
Class A		(91	)		(1,166	)		(1	)		(59	)
Class B		(3	)		(34	)		––	*		(6	)
Class C		(5	)		(64	)		––			––
Class Y		––			––			––			––
Class I		––			––			––			––
Net increase		1,030		$	13,070			38		$	3,787
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Small Cap Value Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,635		$	30,145			6,391		$	71,301
Class B		56			587			126			1,337
Class C		237			2,586			466			4,985
Class E		––			––			––			––
Class I		43			505			38			439
Class Y		799			8,938			189			2,177
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			––			––
Class B		––			––			––			––
Class C		––			––			––			––
Class E		––			––			––			––
Class I		––			––			––			––
Class Y		––			––			––			––
Shares redeemed:
Class A		(1,393	)	(16,196		)		(3,710	)	(41,488		)
Class B		(55	)		(587	)		(160	)		(1,705	)
Class C		(104	)		(1,128	)		(415	)		(4,481	)
Class E		––			––			––			––
Class I		(10	)		(119	)		(15	)		(165	)
Class Y		(146	)		(1,753	)		(410	)		(4,964	)
Net increase		2,062		$	22,978			2,500		$	27,436

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Value Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		426		$	5,309			1,010		$	12,636
Class B		15			182			44			582
Class C		47			602			161			1,887
Class E		––			––			––			––
Class I		9			114			––			––
Class Y		10			106			15			193
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		7			92			31			376
Class B		––			––			––			––
Class C		––			––			––			––
Class E		––	*		––	*		––	*		1
Class I		––	*		––	*		––	*		1
Class Y		––	*		2			––	*		5
Shares redeemed:
Class A		(501	)	(6,027		)		(1,197	)	(15,616		)
Class B		(48	)		(565	)		(104	)		(1,406	)
Class C		(45	)		(535	)		(166	)		(2,032	)
Class E		––			––			––			––
Class I		––			––			––			––
Class Y		(2	)		(24	)		(7	)		(102	)
Net decrease		(82	)	$	(744	)		(213	)	$	(3,475	)
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Managed European/Pacific Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,804		$	11,788			4,178		$	30,391
Class B		41			261			74			535
Class C		54			349			144			986
Class E		––			––			––			––
Class I		1			4			––			––
Class Y		91			579			18			127
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			855			4,454
Class B		––			––			17			88
Class C		––			––			24			126
Class E		––			––			3			14
Class I		––			––			3			14
Class Y		––			––			5			24
Shares redeemed:
Class A		(1,226	)		(7,930	)		(2,542	)	(15,898		)
Class B		(18	)		(117	)		(66	)		(428	)
Class C		(27	)		(173	)		(163	)		(1,098	)
Class E		––			––			––			––
Class I		––			––			––			––
Class Y		(3	)		(18	)		(6	)		(36	)
Net increase		717		$	4,743			2,544		$	19,299

		Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Managed International Opportunities Fund		Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A			2,897		$	20,613			8,369		$	66,366
Class B			52			361			192			1,593
Class C			94			692			272			2,147
Class E			––			––			––			––
Class I			––	*		1			––			––
Class Y			1			6			12			90
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A			––			––			968			5,990
Class B			––			––			24			147
Class C			––			––			29			179
Class E			––			––			1			9
Class I			––			––			2			10
Class Y			––			––			3			20
Shares redeemed:
Class A	(1,650			)	(11,646		)		(4,338	)	(29,282		)
Class B			(55	)		(374	)		(161	)		(1,109	)
Class C			(52	)		(361	)		(180	)		(1,203	)
Class E			––			––			––			––
Class I			––			––			––			––
Class Y			(14	)		(95	)		(11	)		(68	)
Net increase			1,273		$	9,197			5,182		$	44,889
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Cundill Global Value Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,162		$	11,866			4,131		$	44,244
Class B		36			352			146			1,521
Class C		78			771			991			9,380
Class E		4			41			9			98
Class I		192			1,957			442			4,125
Class Y		653			6,576			790			7,779
Advisor Class		––			––			––	*		––	*
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			79			732
Class B		––			––			––			––
Class C		––			––			––	*		––	*
Class E		––			––			––			––
Class I		––			––			5			44
Class Y		––			––			3			32
Advisor Class		––			––			2			19
Shares redeemed:
Class A		(3,542	)	(36,092		)	(14,179		)		(152,322	)
Class B		(325	)		(3,257	)		(948	)		(9,808	)
Class C		(844	)		(8,432	)		(4,019	)		(42,646	)
Class E		(1	)		(11	)		(4	)		(46	)
Class I		(106	)		(1,102	)		(172	)		(1,620	)
Class Y		(714	)		(7,059	)		(412	)		(4,293	)
Advisor Class		(1	)		(10	)		(9	)		(116	)
Net decrease		(3,408	)	$	(34,400	)		(13,145	)	$	(142,877	)

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy European Opportunities Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		776		$	14,490			2,213		$	56,851
Class B		18			319			55			1,345
Class C		19			338			111			2,732
Class E		––			––			––			––
Class I		227			4,248			637			17,722
Class Y		13			252			31			708
Advisor Class		––			––			3			49
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			1,344			22,503
Class B		––			––			82			1,324
Class C		––			––			140			2,264
Class E		––			––			––	*		8
Class I		––			––			323			5,390
Class Y		––			––			18			298
Advisor Class		––			––			3			48
Shares redeemed:
Class A		(1,183	)		(21,760	)		(5,798	)	(137,515		)
Class B		(82	)		(1,428	)		(670	)		(17,142	)
Class C		(135	)		(2,424	)		(809	)		(19,036	)
Class E		––			––			––			––
Class I		(357	)		(6,841	)		(932	)		(15,633	)
Class Y		(7	)		(136	)		(53	)		(1,237	)
Advisor Class		(8	)		(151	)		(13	)		(336	)
Net decrease		(719	)	$	(13,093	)		(3,315	)	$	(79,657	)
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy International Balanced Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,470		$	17,144			4,904		$	63,328
Class B		30			346			280			4,260
Class C		101			1,187			953			12,940
Class E		10			121			34			466
Class I		328			3,827			1,567			21,082
Class Y		85			964			98			1,332
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		22			256			1,261			14,400
Class B		––	*		2			54			607
Class C		2			26			184			2,080
Class E		––	*		2			6			68
Class I		8			91			381			4,236
Class Y		––	*		2			7			81
Shares redeemed:
Class A		(1,664	)		(19,267	)		(8,663	)	(105,959		)
Class B		(103	)		(1,156	)		(481	)		(6,180	)
Class C		(290	)		(3,288	)		(1,632	)		(19,469	)
Class E		(5	)		(55	)		(9	)		(99	)
Class I		(905	)		(10,833	)		(1,138	)		(10,971	)
Class Y		(39	)		(435	)		(180	)		(2,455	)
Net decrease		(950	)	$	(11,066	)		(2,374	)	$	(20,253	)

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy International Core Equity Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		6,709		$	84,712			10,066		$	129,605
Class B		254			2,916			282			3,806
Class C		1,303			15,533			1,614			20,174
Class E		21			261			31			417
Class I		1,326			16,766			2,378			25,849
Class Y		4,123			53,387			878			11,125
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			718			7,086
Class B		––			––			28			253
Class C		––			––			117			1,064
Class E		––			––			4			35
Class I		––			––			167			1,653
Class Y		––			––			46			461
Shares redeemed:
Class A		(2,572	)		(31,388	)		(7,730	)		(88,233	)
Class B		(112	)		(1,218	)		(420	)		(4,623	)
Class C		(298	)		(3,329	)		(1,245	)		(13,814	)
Class E		(4	)		(54	)		(10	)		(127	)
Class I		(261	)		(3,253	)		(465	)		(4,510	)
Class Y		(244	)		(3,227	)		(375	)		(4,297	)
Net increase		10,245		$	131,106			6,084		$	85,924
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy International Growth Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		291		$	7,126			835		$	23,301
Class B		8			165			30			833
Class C		30			658			73			1,996
Class E		––			––			––			––
Class I		392			9,895			266			7,783
Class Y		10			233			23			699
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			46			966
Class B		––			––			––	*		6
Class C		––			––			4			71
Class E		––			––			––	*		1
Class I		––			––			11			240
Class Y		––			––			1			24
Shares redeemed:
Class A		(349	)	(8,425		)	(1,179		)	(31,022		)
Class B		(36	)		(760	)		(128	)		(3,209	)
Class C		(113	)	(2,473		)		(363	)		(9,058	)
Class E		––			––			––			––
Class I		(34	)		(816	)		(83	)		(1,891	)
Class Y		(3	)		(76	)		(23	)		(595	)
Net increase (decrease)		196		$	5,527			(487	)	$	(9,855	)

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Pacific Opportunities Fund	Shares			Value			Shares				Value
Shares issued from sale of shares:
Class A		10,510		$	131,989			7,164			$	90,572
Class B		387			4,361			195				2,086
Class C		984			11,168			330				3,955
Class E		––			––			––				––
Class I		1,422			18,547			2,644				27,480
Class Y		261			3,227			184				2,414
Advisor Class		––			––			––				––
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			4,898				41,588
Class B		––			––			250				1,883
Class C		––			––			354				2,719
Class E		––			––			2				12
Class I		––			––			587				5,049
Class Y		––			––			79				675
Advisor Class		––			––			1				8
Shares redeemed:
Class A		(3,712	)		(45,960	)	(11,804		)	(139,228			)
Class B		(169	)		(1,794	)		(471	)			(5,089	)
Class C		(241	)		(2,689	)		(1,067	)		(11,766		)
Class E		––			––			––				––
Class I		(197	)		(2,369	)		(422	)			(4,168	)
Class Y		(60	)		(755	)		(225	)			(2,911	)
Advisor Class		––			––			(2	)			(21	)
Net increase		9,185		$	115,725			2,697			$	15,258
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Balanced Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		613		$	8,731			5,610		$	78,310
Class B		69			981			262			3,681
Class C		383			5,438			7,295			101,321
Class E		––			––			––			––
Class I		408			5,583			63			829
Class Y		443			6,308			2,931			41,647
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		30			441			48			695
Class B		1			12			––	*		6
Class C		6			91			5			63
Class E		––	*		1			––	*		1
Class I		––	*		2			––	*		2
Class Y		17			241			24			342
Shares redeemed:
Class A		(959	)		(13,528	)		(4,178	)		(57,174	)
Class B		(47	)		(670	)		(107	)		(1,500	)
Class C		(1,361	)		(19,140	)		(3,792	)		(50,871	)
Class E		––			––			––			––
Class I		(289	)		(4,135	)		(58	)		(815	)
Class Y		(1,078	)		(14,908	)		(1,636	)		(22,457	)
Net increase (decrease)		(1,764	)	$	(24,552	)		6,467		$	94,080

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Global Natural Resources Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		37,001		$	551,655			58,691		$	1,228,279
Class B		1,032			13,900			1,981			34,929
Class C		11,357			149,980			15,393			284,690
Class E		49			721			88			2,141
Class I		27,580			424,373			24,132			460,737
Class R		1,019			15,437			1,394			29,031
Class Y		16,085			243,094			15,701			311,971
Advisor Class		––			––			1			10
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		––			––			39,332			403,157
Class B		––			––			3,095			28,905
Class C		––			––			14,755			133,241
Class E		––			––			56			576
Class I		––			––			3,069			31,767
Class R		––			––			387			3,942
Class Y		––			––			6,733			69,418
Advisor Class		––			––			3			32
Shares redeemed:
Class A	(32,246		)		(486,137	)		(91,659	)	(1,819,214		)
Class B		(1,024	)		(13,803	)		(3,549	)		(68,403	)
Class C		(5,905	)		(77,691	)		(27,215	)		(490,677	)
Class E		(10	)		(149	)		(14	)		(226	)
Class I		(6,778	)		(102,201	)		(8,458	)		(124,906	)
Class R		(614	)		(9,183	)		(459	)		(9,840	)
Class Y		(4,103	)		(62,204	)		(19,714	)		(360,105	)
Advisor Class		––	*		(1	)		(1	)		(29	)
Net increase		43,443			647,791			33,742			149,426
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Real Estate Securities Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,442		$	16,009			4,984		$	80,972
Class B		28			307			173			3,012
Class C		76			838			333			5,666
Class E		7			75			12			202
Class I		60			589			34			556
Class R		5			47			9			130
Class Y		682			7,734			1,295			19,401
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		74			849			289			3,432
Class B		––	*		1			3			34
Class C		2			18			8			87
Class E		––	*		4			1			6
Class I		1			9			2			27
Class R		––	*		2			––	*		4
Class Y		73			830			184			2,189
Shares redeemed:
Class A	(2,005		)	(22,083		)		(6,344	)		(83,751	)
Class B		(80	)		(870	)		(321	)		(4,111	)
Class C		(116	)		(1,276	)		(393	)		(5,202	)
Class E		(2	)		(18	)		(4	)		(58	)
Class I		(53	)		(593	)		(30	)		(393	)
Class R		(2	)		(25	)		––	*		(5	)
Class Y		(537	)		(5,928	)		(1,147	)		(16,737	)
Net increase (decrease)		(345	)	$	(3,481	)		(912	)	$	5,461

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Bond Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,065		$	27,972			5,285		$	48,655
Class B		144			1,303			323			2,952
Class C		623			5,676			1,702			15,393
Class E		44			401			74			674
Class I		42			387			7			60
Class Y		514			4,730			182			1,632
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		167			1,524			324			2,962
Class B		4			38			8			77
Class C		16			147			22			202
Class E		3			27			4			40
Class I		––	*		5			1			8
Class Y		4			42			2			13
Shares redeemed:
Class A		(2,138	)	(19,542		)		(4,059	)	(36,603		)
Class B		(160	)		(1,464	)		(202	)		(1,815	)
Class C		(572	)		(5,174	)		(785	)		(7,052	)
Class E		(12	)		(107	)		(26	)		(230	)
Class I		(9	)		(88	)		(6	)		(52	)
Class Y		(123	)		(1,101	)		(26	)		(227	)
Net increase		1,612		$	14,776			2,830		$	26,689
*Not shown due to rounding.

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Global Bond Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,099		$	30,361			5,104		$	48,927
Class B		94			925			643			6,358
Class C		1,122			10,995			1,673			16,246
Class I		517			5,077			527			5,256
Class Y		370			3,638			1,041			10,190
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		37			368			77			709
Class B		3			36			12			106
Class C		8			78			17			154
Class I		7			68			16			148
Class Y		8			78			17			160
Shares redeemed:
Class A		(1,010	)		(9,900	)		(1,709	)	(16,138		)
Class B		(58	)		(566	)		(23	)		(216	)
Class C		(229	)		(2,235	)		(329	)		(3,085	)
Class I		(4	)		(42	)		(2	)		(21	)
Class Y		(75	)		(726	)		(201	)		(1,951	)
Net increase		3,889		$	38,155			6,863		$	66,843

	Six months ended 9-30-09						Fiscal year ended 3-31-09
Ivy Mortgage Securities Fund	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,460		$	11,396			4,120		$	36,588
Class B		17			137			133			1,148
Class C		71			556			602			5,235
Class E		1			6			8			71
Class I		50			392			9			73
Class Y		42			331			253			2,355
Shares issued in reinvestment of dividends       and/or capital gains distribution:
Class A		396			3,097			1,117			9,731
Class B		10			80			37			321
Class C		19			152			62			535
Class E		1			8			2			15
Class I		1			6			2			14
Class Y		11			84			36			317
Shares redeemed:
Class A		(3,460	)		(26,929	)		(14,682	)	(127,097		)
Class B		(146	)		(1,135	)		(728	)		(6,271	)
Class C		(347	)		(2,701	)		(1,297	)		(11,088	)
Class E		(1	)		(6	)		(5	)		(45	)
Class I		(17	)		(133	)		(8	)		(65	)
Class Y		(149	)		(1,159	)		(778	)		(6,875	)
Net decrease		(2,041	)	$	(15,818	)		(11,117	)	$	(95,038	)

7. DERIVATIVE INSTRUMENTS

In March 2008, the Financial Accounting Standards Board (FASB) amended and expanded disclosures about derivative instruments and hedging activities, which were adopted by each Fund during the fiscal period ended September 30, 2009; it 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.

Forward Foreign Currency Contracts. Certain Funds may enter into forward foreign currency contracts (forward contracts) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Schedule of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE as provided by a bank, dealer or independent pricing service. The resulting unrealized appreciation and depreciation is reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) in the Statement of Operations.

Risks to a Fund include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund's loss will consist of the net amount of contractual payments that the Fund has not yet received.

Futures Contracts. Certain Funds may engage in buying and selling futures contracts. Upon entering into a futures contract, the Fund is required to deposit, in a segregated account, an amount 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.

Futures contracts are reported on a schedule following the Schedule of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are identified in the Schedule of Investments. Cash held by the broker to cover initial margin requirements on open futures contracts and the receivable and/or payable for the daily mark to market for the variation margin are noted in the Statement of Assets and Liabilities. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. Realized gains (losses) are reported in the Statement of Operations at the closing or expiration of futures contracts.

Risks of entering into futures contracts include the possibility of loss of securities or cash held as collateral, that there may be an illiquid market where the Fund is unable to close the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund's securities.

Swap Agreements. Certain Funds may invest in swap agreements, which are agreements to exchange the return generated by one instrument for the return generated by another instrument.

Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying security in the event of a defined credit event, such as payment default or bankruptcy. Under a credit default swap one party acts as a guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the defined credit event occurs. A Fund may enter into credit default swaps in which either it or its counterparty act as the guarantor.

Total return swaps involve a commitment to pay periodic interest payments in exchange for a market-linked return based on a security or a basket of securities representing a variety of securities or a particular index. To the extent the total return of the security, index or other financial measure underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty.

Variance swaps involve a contract in which two parties agree to exchange cash flows based on the measured variance of a specified underlying security or index during a certain time period. On the trade date, the two parties agree on the strike price of the contract (the reference level against which cash flows are exchanged), as well as the number of units in the transaction and the length of the contract. Like an option contract, the value of a variance swap is influenced by both realized and implied volatility, as well as the passage of time. A Fund may enter into variance swaps to manage volatility risk.

The creditworthiness of firms with which a Fund enters into a swap agreement is monitored by IICO. If a firm's creditworthiness declines, the value of the agreement would likely decline, potentially resulting in losses. If a default occurs by the counterparty to such a transaction, the Fund will have contractual remedies pursuant to the agreement related to the transaction.

Option Contracts. 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 a Fund has realized a gain or loss. For each Fund, when a written put is exercised, the cost basis of the secur ities purchased by a 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 a Fund's exposure to the underlying security (or basket of securities). With written options, there may be times when a 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 a 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 will be unable to meet their obligations under the terms of the transaction.

Objectives and Strategies

Ivy Small Cap Value Fund. The Fund's objective in using derivatives during the period was to gain exposure to certain market sectors that it cannot get through the purchase of equity securities. To achieve this objective, the Fund utilized options, both written and purchased, on an index in the sector it wished to gain exposure to.

There were no open derivative instruments as of September 30, 2009.

The effect of derivative instruments on the Statement of Operations for fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity	Net realized gain (loss) on investments in       unaffiliated securities and written options	$(1)	$0

During the fiscal period ended September 30, 2009, the Fund's average number of purchased option contracts and written option contracts outstanding was less than 1.

Ivy Value Fund. The Fund's objective in using derivatives during the period was to generate additional income from written option premiums. To achieve these objectives, the Fund had primarily written put and call options on equity securities the Fund owned.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Equity	N/A	N/A	Written options at market value	$51

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity	Net realized gain (loss) on written options/Net       change in unrealized appreciation       depreciation on written options	$139	$(27)

During the fiscal period ended September 30, 2009, the Fund's average number of written option contracts outstanding was 1.

Ivy Cundill Global Value Fund. The Fund's objective in using derivatives during the period was to hedge the exposure to foreign currencies of securities held in the fund. To achieve this objective, the Fund utilized forward contracts.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Foreign currency	Unrealized appreciation on       forward foreign currency       contracts	$228	Unrealized depreciation on       forward foreign currency       contracts	$6,680

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts	$(10,855)	$(3,899)

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short forward contracts and long forward contracts was $139,137 and $132,452, respectively.

Ivy International Balanced Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Foreign currency	Unrealized appreciation on       forward foreign currency       contracts	$155	N/A	N/A

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts	$(1,092)	$1,757

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short forward contracts and long forward contracts was $4,709 and $4,572, respectively.

Ivy International Core Equity Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

There were no open derivative instruments as of September 30, 2009.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts	$658	$(382)

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short forward contracts and long forward contracts was $2,510 and $2,629, respectively.

Ivy International Growth Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

There were no open derivative instruments as of September 30, 2009.

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign currency	Net realized gain (loss) on forward foreign       currency contracts/Net change in       unrealized appreciation (depreciation)       on forward foreign currency contracts	$(532)	$241

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short forward contracts and long forward contracts was $1,794 and $1,730, respectively.

Ivy Pacific Opportunities Fund. The Fund's objectives in using derivatives during the period included hedging market risk on equity securities, managing exposure to various foreign currencies, and generating additional income from written option premiums. To achieve the objective of hedging market risk on equity securities, the Fund utilized futures and total return swaps on foreign equity indices. To manage foreign currency exposure, the Fund utilized forward contracts to decrease exposure to a given currency. To generate income, the Fund had primarily written put and call options on securities the Fund owned.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Equity	N/A	N/A	Written options at market value	$221
Foreign currency	N/A	N/A	N/A	N/A
Total		$0		$221

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity	Net realized gain (loss) on investments in unaffiliated       securities, written options, futures contracts and       swap contracts/Net change in unrealized       appreciation (depreciation) on written options       and futures contracts	$  (9,445)	$ (55)
Foreign currency	Net realized gain (loss) on forward foreign currency       contracts/Net change in unrealized appreciation       (depreciation) on forward foreign currency contracts	(737)	(282)
Total		$(10,182)	$(337)

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for forward contracts and futures contracts were as follows: short forward contracts - $10,471, long forward contracts - $10,296, short futures contracts - $4,391. Additionally, the Fund's average number of purchased option contracts and written option contracts outstanding was 1 and 6,785, respectively.

Ivy Global Natural Resources Fund. The Fund's objectives in using derivatives during the period were to hedge market risk on equity securities, increase exposure to specific sectors or companies, and manage exposure to various foreign currencies. To achieve the objective of hedging market risk and increasing exposure to equity markets, the Fund utilized futures on equity indices and purchased option contracts on individual equity securities. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Equity	Investments in unaffiliated       securities and variation       margin receivable	$262,615	N/A	$   0
Foreign currency	Unrealized appreciation on       forward foreign currency       contracts	125	Unrealized depreciation on      forward foreign currency      contracts	646
Total		$262,740		$646

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity	Net realized gain (loss) on investments in unaffiliated       securities and futures contracts/Net change in       unrealized appreciation (depreciation) on       investments in unaffiliated securities and futures       contracts	$(68,888)	$35,408
Foreign currency	Net realized gain (loss) on forward foreign currency       contracts/Net change in unrealized appreciation       (depreciation) on forward foreign currency contracts	(9,160)	1,561
Total		$(78,048)	$36,969

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for forward contracts and futures contracts were as follows: short forward contracts - $36,976, long forward contracts - $34,935, short futures contracts - $330,154. Additionally, the Fund's average number of purchased option contracts outstanding was 104.

Ivy Bond Fund. The Fund's objective in using derivatives during the period was to adjust the overall duration of the portfolio. To achieve this objective, the Fund primarily utilized Treasury futures contracts of varying lengths to either shorten or lengthen, as determined by the Fund's manager, the duration of the Fund.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Interest rate	Variation margin receivable	$22	Variation margin payable	$4

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Interest rate	Net realized gain (loss) on futures contracts/       Net change in unrealized appreciation       (depreciation) on futures contracts	$365	$(88)

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short futures contracts and long futures contracts was $12,629 and $13,082, respectively.

Ivy Global Bond Fund. The Fund's objective in using derivatives during the period was to manage the exposure to various foreign currencies. To achieve this objective, the Fund utilized forward contracts to either hedge a position held by the Fund or to gain exposure to a currency where a foreign bond is not available.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Foreign currency	Unrealized appreciation on       forward foreign currency       contracts	$41	Unrealized depreciation on       forward foreign currency       contracts	$662

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign currency	Net realized gain (loss) on forward foreign currency       contracts/Net change in unrealized appreciation       (depreciation) on forward foreign currency contracts	$118	$(1,219)

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short forward contracts and long forward contracts was $9,299 and $9,166, respectively.

Ivy Mortgage Securities Fund. The Fund's objective in using derivatives during the period was to adjust the overall duration of the portfolio. To achieve this objective, the Fund primarily utilized Treasury futures contracts of varying lengths to either shorten or lengthen, as determined by the Fund's manager, the duration of the Fund.

Fair values of derivative instruments as of September 30, 2009:

	Asset Derivatives		Liability Derivatives
Type of Derivative	Balance Sheet Location	Fair Value	Balance Sheet Location	Fair Value
Interest rate	Variation margin receivable	$17	Variation margin payable	$7

The effect of derivative instruments on the Statement of Operations for the fiscal period ended September 30, 2009:

Type of Derivative	Location of Gain (Loss) on Derivatives Recognized in Income	Realized Gain (Loss) on Derivatives Recognized in Income	Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Interest rate	Net realized gain (loss) on futures contracts/       Net change in unrealized appreciation       (depreciation) on futures contracts	$352	$283

During the fiscal period ended September 30, 2009, the Fund's average market value outstanding for short futures contracts was $19,119.

8. COMMITMENT

In 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 $1,696 if and when VAF requests such contributions or draw downs. The total commitment is limited to $5,000. At September 30, 2009, Ivy Pacific Opportunities Fund had made a total contribution of $3,304. No public market currently exists for the shares of VAF nor are shares currently redeemable by VAF. VAF intends to become listed within one year after the final commitment has been drawn down.

9. AFFILIATED COMPANY TRANSACTIONS

A summary of the transactions in affiliated companies during the fiscal period ended September 30, 2009 follows:

	3-31-09 Share Balance		Purchases at Cost	Sales at Cost		Realized Gain/(Loss)			Distributions Received(2)			9-30-09 Share Balance		9-30-09 Market Value
Ivy Managed European/Pacific Fund
Ivy European Opportunities Fund,       Class I		904	$1,698	$12,360		$(5,918		)		$	––		660	$	14,437
Ivy Pacific Opportunities Fund,       Class I		3,087	10,203		1,923		(956	)			––		3,781		53,916
										$	––			$	68,353

	3-31-09 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)			Distributions Received(2)			9-30-09 Share Balance		9-30-09 Market Value
Ivy Managed International Opportunities Fund
Ivy European Opportunities Fund,       Class I		583	$1,559		$  256		$(147		)		$  ––			659	$14,406
Ivy International Balanced Fund,       Class I		3,261		3,033	14,911		(4,547		)			83		2,656		35,164
Ivy International Core Equity Fund,       Class I		2,336		2,463		1,451		(548	)			––		2,460		35,626
Ivy International Growth Fund,       Class I		642		9,312		302		(127	)			––		1,002		27,947
Ivy Pacific Opportunities Fund,       Class I		1,583		4,204		315		(140	)			––		1,887		26,904
											$83				$140,047

	3-31-09 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received		9-30-09 Share Balance		9-30-09 Market Value
Ivy Pacific Opportunities Fund
Vietnam Azalea Fund Limited(1)		500	$	––	$	––	$	––	$	––		500	$2,135

	3-31-09 Share Balance		Purchases at Cost	Sales at Cost		Realized Gain/(Loss)			Distributions Received		9-30-09 Share Balance		9-30-09 Market Value
Ivy Global Natural Resources Fund
Yingli Green Energy Holding       Company Limited, ADR(1)		8,000	$ ––		$10,578		$(3,496	)		$ ––		7,500		$93,450
(1)No dividends were paid during the preceding 12 months.
(2)Distributions received includes distributions from net investment income and/or from capital gains from the underlying funds.

10. SENIOR LOANS

A Fund invests in senior secured corporate loans (senior 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.

Certain senior loans contain provisions that obligate a Fund to fund future commitments at the borrower's discretion. At September 30, 2009, there were no such unfunded commitments.

11. WRITTEN OPTION ACTIVITY

For Ivy Small Cap Value Fund, transactions in written call options were as follows:

	Number of Contracts			Premium Received
Outstanding at March 31, 2009		––		$	––
Options written		2			210
Options terminated in closing purchase transactions		(2	)		(210	)
Options exercised		––			––
Options expired		––			––
Outstanding at September 30, 2009		––		$	––

For Ivy Value Fund, transactions in written call options were as follows:

	Number of Contracts			Premium Received
Outstanding at March 31, 2009		1		$	70
Options written		3			165
Options terminated in closing purchase transactions		(1	)		(78	)
Options exercised		––	*		(33	)
Options expired		(2	)		(88	)
Outstanding at September 30, 2009		1		$	36
*Not shown due to rounding.

For Ivy Value Fund, transactions in written put options were as follows:

	Number of Contracts			Premium Received
Outstanding at March 31, 2009		––	*	$	16
Options written		2			100
Options terminated in closing purchase transactions		––	*		(26	)
Options exercised		––			––
Options expired		(1	)		(60	)
Outstanding at September 30, 2009		1		$	30
*Not shown due to rounding.

For Ivy Pacific Opportunities Fund, transactions in written call options were as follows:

	Number of Contracts			Premium Received
Outstanding at March 31, 2009	11,865			$	230
Options written		6			448
Options terminated in closing purchase transactions	(11,868		)		(418	)
Options exercised		––			––
Options expired		(1	)		(57	)
Outstanding at September 30, 2009		2		$	203

For Ivy Pacific Opportunities Fund, transactions in written put options were as follows:

		Number of Contracts			Premium Received
Outstanding at March 31, 2009	11,868				$	996
Options written			12		1,438
Options terminated in closing purchase transactions	(11,866			)		(321	)
Options exercised			––			––
Options expired			(12	)	(2,020		)
Outstanding at September 30, 2009			2		$	93

12. REGULATORY AND LITIGATION MATTERS

Ivy International Growth Fund received $616 during the fiscal period ended September 30, 2009 as a result of the distribution of funds relating to the settlement from third party late trading and market timing activities related to the Fund. This amount is included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated securities.

13. PENDING REORGANIZATIONS

It is anticipated that, during the fourth quarter of 2009 or the first quarter of 2010, each series of Ivy Funds will be reorganized into a corresponding new series of Ivy Funds, a Delaware statutory trust (New Ivy Funds Trust). These Ivy Funds reorganizations were approved by the shareholders of each series of Ivy Funds at joint shareholder meetings held on January 15, 2009. There are certain similarities and differences between Ivy Funds and New Ivy Funds Trust that are summarized in the Notice of Special Meeting of Shareholders and Joint Proxy Statement, each dated November 19, 2008.

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT

Ivy Funds

At a meeting of the Board of Trustees of Ivy Funds (the "Trust") held on August 25 and 26, 2009, the Trustees, including all of the Trustees who are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the existing management agreements between Ivy Investment Management Company ("IICO") and the Trust. The existing management agreements considered were (i) the Master Business Management and Investment Advisory Agreement 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 Manag ement Agreement 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 Micro Cap Growth 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:

• Advantus Capital Management, Inc. (Ivy Bond Fund, Ivy Mortgage Securities Fund, Ivy Real Estate Securities Fund)
• Mackenzie Financial Corporation (Ivy Global Natural Resources Fund)
• Mackenzie Cundill Investment Management Ltd. (Ivy Cundill Global Value Fund)
• Wall Street Associates (Ivy Micro Cap Growth Fund)

(each such subadviser referred to herein as a "Subadviser").

The Board also unanimously approved an amendment to the Master Business Management and Investment Advisory agreement between the Trust and IICO to reduce the investment advisory fee that the Ivy European Opportunities Fund pays to IICO.

The Board's Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, 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 explanation 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 25th and 26th 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 Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request lists submitted on their behalf by counsel. 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 other service providers, including monitoring compliance with various Fund po licies and procedures and with applicable securities laws and regulations). The Board also noted the positive press that the Ivy Funds family and certain portfolio managers continue to receive during the year in the financial media, and also noted the improved shareholder servicing provided by IICO's affiliate, Waddell & Reed Services Company, as reported by an independent evaluator. 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 Funds

The 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 an investment advisory agreement with IICO or any investment sub-advisory agreement with a Subadviser.

Economies of Scale

The 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 concluded that, except for the Ivy European Opportunities Fund, 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. With regard to the Ivy European Opportunities Fund, the Board unanimously agreed to reduce IICO's fees on the first $250 million of assets from 1.00% of net assets to 0.90% of net assets.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided, focusing on the specific circumstances of each Fund. In addition, the Board considered that IICO recently had taken over direct portfolio management responsibilities for the Ivy European Opportunities Fund and the Ivy International Balanced Fund, replacing those Funds' subadvisers.

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 Funds lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each 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 the Funds as compared to such separately managed accounts. The Board also took into account the information on IICO's profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund's average account size and how those factors affect the F unds' expense ratios. After completing this examination and taking into consideration the reduction in the advisory fee for the Ivy European Opportunities Fund, the Independent Trustees concluded that each Fund's expenses are appropriate at the current time.

Independent Fee Consultant Review

The 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 2009, 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, 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 Waddell, to the Ivy Fun ds. 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.¹

Summary Findings

The 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, 2009, when compared to their respective peer groups established by Lipper, Inc. ("Lipper"), approximately 40% of the Ivy Funds were in the top quintile of performance and 72% of the Ivy Funds were in the top two quintiles. 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, 2009, the total expenses of the Ivy Funds on average were 4% above the mean total expenses of their respective Lipper Expense Group peers and 5% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 0.9% above the mean management fees for their Lipper Expense Groups and 6.9% below the mean 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.

Conclusions

The 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, 2009 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.



¹ The independent fee consultant's evaluation was based on information provided by IICO, Lipper, Inc., other information providers and other independent analyses. The term "management fees" refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. The term "total expenses" refers to the total annual expenses, net of any fee waivers, paid by an Ivy Fund, as a percentage of such fund's average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2009.

PROXY VOTING INFORMATION

Ivy Funds

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 Records

Information 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

Ivy Funds

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 Trust'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:

Ivy Funds

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
      Ivy Capital Appreciation Fund
      Ivy Core Equity Fund
      Ivy Dividend Opportunities Fund
      Ivy Large Cap Growth Fund
      Ivy Micro Cap Growth Fund
      Ivy Mid Cap Growth Fund
      Ivy Small Cap Growth Fund
      Ivy Small Cap Value Fund
      Ivy Tax-Managed Equity Fund
      Ivy Value Fund

Global/International Funds
      Ivy Cundill Global Value Fund
      Ivy European Opportunities Fund
      Ivy International Balanced Fund
      Ivy International Core Equity Fund
      Ivy International Growth Fund
      Ivy Managed European/Pacific Fund
      Ivy Managed International Opportunities Fund
      Ivy Pacific Opportunities Fund

Specialty Funds
      Ivy Asset Strategy Fund
      Ivy Balanced Fund
      Ivy Energy Fund
      Ivy Global Natural Resources Fund
      Ivy Real Estate Securities Fund
      Ivy Science and Technology Fund

Fixed Income Funds
      Ivy Bond Fund
      Ivy Global Bond Fund
      Ivy High Income Fund
      Ivy Limited-Term Bond Fund
      Ivy Money Market Fund
      Ivy Mortgage Securities Fund
      Ivy Municipal Bond Fund
      Ivy Municipal High Income 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.

SEMIANN-IVYTRUST (9-09)

ITEM 2. CODE OF ETHICS
Required in annual report only.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Required in annual report only.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Required in annual report only.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Item 1 Shareholder Report.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors.
ITEM 11. CONTROLS AND PROCEDURES.
(a)	The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.
(b)	There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Required in annual report only.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
Attached hereto as Exhibit 99.CERT.
(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)).
Attached hereto as Exhibit 99.906CERT.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Ivy Funds
(Registrant)
By	/s/Mara D. Herrington
	Mara D. Herrington, Vice President and Secretary
Date: December 3, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By	/s/Henry J. Herrmann
	Henry J. Herrmann, President and Principal Executive Officer
Date: December 3, 2009
By	/s/Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer
Date: December 3, 2009