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 811-6569 |
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Ivy Funds, Inc. |
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(Exact name of registrant as specified in charter) |
6300 Lamar Avenue, Overland Park, Kansas 66202 |
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(Address of principal executive offices) (Zip code) |
Kristen A. Richards |
6300 Lamar Avenue |
Overland Park, Kansas 66202 |
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(Name and address of agent for service) |
Registrant's telephone number, including area code: 913-236-2000 |
Date of fiscal year end: March 31 |
Date of reporting period: September 30, 2007 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Semiannual Report
September 30, 2007
Ivy Asset Strategy Fund
Ivy Capital Appreciation Fund
Ivy Core Equity Fund
Ivy Energy Fund
Ivy High Income Fund
Ivy Large Cap Growth Fund
Ivy Limited-Term Bond Fund
Ivy Mid Cap Growth Fund
Ivy Money Market Fund
Ivy Municipal Bond Fund
Ivy Science and Technology Fund
Ivy Small Cap Growth Fund
CONTENTS
3 | President's Letter | |
5 | Illustration of Fund Expenses | |
13 | Ivy Asset Strategy Fund | |
42 | Ivy Capital Appreciation Fund | |
58 | Ivy Core Equity Fund | |
72 | Ivy Energy Fund | |
85 | Ivy High Income Fund | |
105 | Ivy Large Cap Growth Fund | |
120 | Ivy Limited-Term Bond Fund | |
135 | Ivy Mid Cap Growth Fund | |
150 | Ivy Money Market Fund | |
165 | Ivy Municipal Bond Fund | |
183 | Ivy Science and Technology Fund | |
199 | Ivy Small Cap Growth Fund | |
216 | Notes to Financial Statements | |
243 | Renewal of Investment Management Agreement | |
247 | Proxy Voting Information | |
248 | Quarterly Portfolio Schedule Information | |
249 | IRA Disclosure |
This report is submitted for the general information of the shareholders of Ivy Funds, Inc. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds, Inc. prospectus and current performance information.
President's Letter
September 30, 2007
Dear Shareholder:
It's been a rewarding but volatile six months for equity investors. Stock markets around the globe generally provided attractive returns, with energy stocks outpacing all other sectors. Since the spring it has appeared to us that large company domestic growth stocks have generally come back in favor, boosted by low valuations and solid overseas growth for U.S.-based multinational companies. Also, quality now seems to be a more important equity attribute than we have seen in several years.
For the bond market, it's also been a bumpy road. Corporate and mortgage bond prices faced greater volatility as a subprime lending crisis of global dimensions unfolded. The U.S. dollar weakened against most foreign currencies, making dollar-denominated bonds less attractive. High yield investors, meanwhile, demanded greater income to help offset concern about bond defaults and the potential for a U.S. recession. After months of expressing anxiety about lingering consumer inflation, the Federal Reserve changed policy in September and reduced its short-term interest rate target by 50 basis points (0.50 percent) to 4.75 percent. More cuts may follow.
Enclosed is our report on your Ivy Fund's operations for the six months ended September 30, 2007. The S&P 500 Index advanced 8.44 percent over the period while the Lehman Brothers Aggregate Bond Index rose 2.31 percent.
U.S. growth slows
Dragged down by the worst housing market in a generation, the U.S. economy's four-year-old expansion is slowing. However, growth still appears robust for most of Asia. North America was fortunate to have a relatively mild hurricane season, and this may have been a factor in helping to keep a lid on gasoline prices. This year the biggest financial storm was found not in nature, but in the commercial paper and mortgage markets. Liquidity dried up for both business and consumer borrowers with less than perfect credit. Consequently, the financial and consumer discretionary sectors of the S&P 500 have been hard hit over the past six months, with each falling while most other sectors rose.
The economic news is mixed, as you can see in the Economic Snapshot chart below. Overall inflation is the same as it was six months ago. Unemployment is slightly higher than six months ago but is still relatively low. However, the cost of financing a home is slightly higher. Overall GDP growth is solid, while oil prices are substantially higher.
Economic Snapshot | ||||||
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9-30-2007 | 3-31-2007 | |||||
U.S. unemployment rate | 4.70 | % | 4.40 | % | ||
Inflation (U.S. Consumer Price Index) | 2.80 | % | 2.80 | % | ||
U.S. GDP | 3.90 | % | 1.50 | % | ||
30-year fixed mortgage rate | 6.28 | % | 6.13 | % | ||
Oil price per barrel | $ | 81.66 | $ | 65.87 |
Source: Bloomberg, U.S. Department of Labor
The U.S. Consumer Price Index is the government's measure of the change in the retail cost of goods and services. Gross domestic product measures year-over-year changes in the output of goods and services. Mortgage rates shown reflect the average rate on a conventional loan with a 60-day lender commitment. Oil prices reflect the market price of West Texas intermediate grade crude.
Stock valuations for companies in the S&P 500 appear reasonable to us. As we look forward, even though past performance does not guarantee future results, presidential election years typically have been positive for investors. However, we recommend a prudent level of caution in 2008, as we believe that the range of possibilities for investors is as wide as the current field of presidential candidates. As always, we believe that maintaining a well-rounded portfolio is an essential element for securing your long-term financial future. In both politics and investing, it may be wise to remember that nothing - good or bad - can ever be assured.
Our commitment
At the Ivy Funds, we consistently focus on offering you strategies that emphasize participation in positive markets, as well as a very strong effort to manage risk. We will strive to earn your continued confidence for many years to come.
Respectfully,
President
The opinions expressed in this letter are those of the President of Ivy Funds, Inc., and are current only through the end of the period of the report, as stated on the cover. The President's views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
Illustration of Fund Expenses
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following tables are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. 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, 2007.
Actual ExpensesThe first line for each share class in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, a $7,500 account value divided by $1,000 = 7.5), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. There may be additional fees charged to holders of certain accounts that are not included in the expenses shown in the tables. These fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Simple IRAs, Tax-Sheltered Accounts (TSAs), Keogh Plans, Owner Only 401(k) (Exclusive K) Plans and Final Pay Plans. As of the close of the six months covered by the tables, a customer is charged an annual fee of $15 within each plan type. This fee is waived for IRA Rollovers and Conversion Roth IRAs if the customer owns another type of IRA. Coverdell Education Savings Account plans are charged an annual fee of $10 per customer. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the expense tables. Additional fees have the effect of reducing investment returns.
Hypothetical Example for Comparison PurposesThe second line for each share class of the following tables provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees or exchange fees. Therefore, the second line of each share class in the tables is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Ivy Asset Strategy Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,221.10 | 1.05 | % | $ | 5.89 | ||||
Class B | 1,000 | 1,215.60 | 1.88 | 10.41 | ||||||||
Class C | 1,000 | 1,216.60 | 1.80 | 9.97 | ||||||||
Class E** | 1,000 | 1,216.30 | 1.83 | 10.08 | ||||||||
Class I** | 1,000 | 1,222.40 | 0.86 | 4.78 | ||||||||
Class Y | 1,000 | 1,220.40 | 1.12 | 6.22 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,019.80 | 1.05 | % | $ | 5.35 | ||||
Class B | 1,000 | 1,015.64 | 1.88 | 9.47 | ||||||||
Class C | 1,000 | 1,016.06 | 1.80 | 9.07 | ||||||||
Class E** | 1,000 | 1,015.90 | 1.83 | 9.27 | ||||||||
Class I** | 1,000 | 1,020.75 | 0.86 | 4.34 | ||||||||
Class Y | 1,000 | 1,019.46 | 1.12 | 5.65 |
Ivy Capital Appreciation Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,158.60 | 1.18 | % | $ | 6.37 | ||||
Class B | 1,000 | 1,152.70 | 2.24 | 12.06 | ||||||||
Class C | 1,000 | 1,154.50 | 1.90 | 10.34 | ||||||||
Class E** | 1,000 | 1,155.10 | 1.35 | 7.22 | ||||||||
Class I** | 1,000 | 1,156.80 | 1.08 | 5.72 | ||||||||
Class Y | 1,000 | 1,158.30 | 1.17 | 6.37 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,019.14 | 1.18 | % | $ | 5.96 | ||||
Class B | 1,000 | 1,013.84 | 2.24 | 11.28 | ||||||||
Class C | 1,000 | 1,015.52 | 1.90 | 9.67 | ||||||||
Class E** | 1,000 | 1,018.30 | 1.35 | 6.86 | ||||||||
Class I** | 1,000 | 1,019.68 | 1.08 | 5.45 | ||||||||
Class Y | 1,000 | 1,019.20 | 1.17 | 5.96 |
Ivy Core Equity Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,140.60 | 1.37 | % | $ | 7.39 | ||||
Class B | 1,000 | 1,136.00 | 2.27 | 12.18 | ||||||||
Class C | 1,000 | 1,136.70 | 2.12 | 11.43 | ||||||||
Class E** | 1,000 | 1,140.30 | 1.58 | 8.35 | ||||||||
Class I** | 1,000 | 1,153.00 | 1.03 | 5.49 | ||||||||
Class Y | 1,000 | 1,142.00 | 1.23 | 6.64 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.22 | 1.37 | % | $ | 6.96 | ||||
Class B | 1,000 | 1,013.68 | 2.27 | 11.48 | ||||||||
Class C | 1,000 | 1,014.42 | 2.12 | 10.78 | ||||||||
Class E | 1,000 | 1,017.14 | 1.58 | 7.97 | ||||||||
Class I | 1,000 | 1,019.93 | 1.03 | 5.15 | ||||||||
Class Y | 1,000 | 1,018.90 | 1.23 | 6.26 |
Ivy Energy Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,264.70 | 1.56 | % | $ | 8.83 | ||||
Class B | 1,000 | 1,260.50 | 2.27 | 12.88 | ||||||||
Class C | 1,000 | 1,261.20 | 2.16 | 12.21 | ||||||||
Class E** | 1,000 | 1,251.00 | 1.22 | 6.75 | ||||||||
Class I** | 1,000 | 1,251.20 | 1.11 | 6.19 | ||||||||
Class Y | 1,000 | 1,265.90 | 1.40 | 7.93 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.25 | 1.56 | % | $ | 7.87 | ||||
Class B | 1,000 | 1,013.68 | 2.27 | 11.48 | ||||||||
Class C | 1,000 | 1,014.26 | 2.16 | 10.88 | ||||||||
Class E** | 1,000 | 1,018.96 | 1.22 | 6.16 | ||||||||
Class I** | 1,000 | 1,019.51 | 1.11 | 5.65 | ||||||||
Class Y | 1,000 | 1,018.06 | 1.40 | 7.06 |
Ivy High Income Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,014.60 | 1.39 | % | $ | 7.05 | ||||
Class B | 1,000 | 1,009.40 | 2.44 | 12.26 | ||||||||
Class C | 1,000 | 1,010.40 | 2.20 | 11.06 | ||||||||
Class E** | 1,000 | 1,011.30 | 2.02 | 10.06 | ||||||||
Class I** | 1,000 | 1,025.10 | 1.03 | 5.16 | ||||||||
Class Y | 1,000 | 1,016.50 | 1.22 | 6.15 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.09 | 1.39 | % | $ | 7.06 | ||||
Class B | 1,000 | 1,012.85 | 2.44 | 12.28 | ||||||||
Class C | 1,000 | 1,014.06 | 2.20 | 11.08 | ||||||||
Class E** | 1,000 | 1,014.94 | 2.02 | 10.18 | ||||||||
Class I** | 1,000 | 1,019.93 | 1.03 | 5.15 | ||||||||
Class Y | 1,000 | 1,018.97 | 1.22 | 6.16 |
Ivy Large Cap Growth Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $1,000 | $1,226.70 | 1.15 | % | $ | 6.46 | ||||||
Class B | 1,000 | 1,219.50 | 2.37 | 13.21 | ||||||||
Class C | 1,000 | 1,220.90 | 2.14 | 11.88 | ||||||||
Class E** | 1,000 | 1,223.80 | 1.33 | 7.34 | ||||||||
Class I** | 1,000 | 1,235.20 | 0.98 | 5.48 | ||||||||
Class R | 1,000 | 1,224.10 | 1.50 | 8.34 | ||||||||
Class Y | 1,000 | 1,227.20 | 1.06 | 5.90 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $1,000 | $1,019.31 | 1.15 | % | $ | 5.86 | ||||||
Class B | 1,000 | 1,013.19 | 2.37 | 11.98 | ||||||||
Class C | 1,000 | 1,014.33 | 2.14 | 10.78 | ||||||||
Class E** | 1,000 | 1,018.40 | 1.33 | 6.76 | ||||||||
Class I** | 1,000 | 1,020.16 | 0.98 | 4.95 | ||||||||
Class R | 1,000 | 1,017.53 | 1.50 | 7.57 | ||||||||
Class Y | 1,000 | 1,019.76 | 1.06 | 5.35 |
Ivy Limited-Term Bond Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,022.70 | 1.31 | % | $ | 6.67 | ||||
Class B | 1,000 | 1,018.30 | 2.19 | 11.10 | ||||||||
Class C | 1,000 | 1,018.30 | 2.19 | 11.10 | ||||||||
Class E** | 1,000 | 1,022.80 | 1.15 | 5.76 | ||||||||
Class I** | 1,000 | 1,032.40 | 0.98 | 4.98 | ||||||||
Class Y | 1,000 | 1,023.50 | 1.17 | 5.97 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.48 | 1.31 | % | $ | 6.66 | ||||
Class B | 1,000 | 1,014.10 | 2.19 | 11.08 | ||||||||
Class C | 1,000 | 1,014.08 | 2.19 | 11.08 | ||||||||
Class E | 1,000 | 1,019.31 | 1.15 | 5.86 | ||||||||
Class I | 1,000 | 1,020.16 | 0.98 | 4.95 | ||||||||
Class Y | 1,000 | 1,019.19 | 1.17 | 5.96 |
Ivy Mid Cap Growth Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,096.30 | 1.59 | % | $ | 8.39 | ||||
Class B | 1,000 | 1,091.10 | 2.57 | 13.49 | ||||||||
Class C | 1,000 | 1,092.10 | 2.35 | 12.34 | ||||||||
Class E** | 1,000 | 1,089.90 | 2.27 | 11.81 | ||||||||
Class I** | 1,000 | 1,102.40 | 1.16 | 6.10 | ||||||||
Class R | 1,000 | 1,095.80 | 1.67 | 8.80 | ||||||||
Class Y | 1,000 | 1,098.30 | 1.25 | 6.61 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.08 | 1.59 | % | $ | 8.07 | ||||
Class B | 1,000 | 1,012.19 | 2.57 | 12.98 | ||||||||
Class C | 1,000 | 1,013.29 | 2.35 | 11.88 | ||||||||
Class E** | 1,000 | 1,013.69 | 2.27 | 11.48 | ||||||||
Class I** | 1,000 | 1,019.25 | 1.16 | 5.86 | ||||||||
Class R | 1,000 | 1,016.72 | 1.67 | 8.47 | ||||||||
Class Y | 1,000 | 1,018.79 | 1.25 | 6.36 |
Ivy Money Market Fund Expenses | ||||||||||||
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For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,022.70 | 0.93 | % | $ | 4.75 | ||||
Class B | 1,000 | 1,018.10 | 1.83 | 9.28 | ||||||||
Class C | 1,000 | 1,018.40 | 1.78 | 8.98 | ||||||||
Class E** | 1,000 | 1,022.00 | 0.93 | 4.65 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,020.42 | 0.93 | % | $ | 4.75 | ||||
Class B | 1,000 | 1,015.91 | 1.83 | 9.27 | ||||||||
Class C | 1,000 | 1,016.17 | 1.78 | 8.97 | ||||||||
Class E** | 1,000 | 1,020.42 | 0.93 | 4.75 |
Ivy Municipal Bond Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,007.40 | 1.29 | % | $ | 6.52 | ||||
Class B | 1,000 | 1,003.40 | 2.08 | 10.42 | ||||||||
Class C | 1,000 | 1,003.30 | 2.10 | 10.52 | ||||||||
Class Y | 1,000 | 1,006.70 | 1.44 | 7.22 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,018.60 | 1.29 | % | $ | 6.56 | ||||
Class B | 1,000 | 1,014.63 | 2.08 | 10.48 | ||||||||
Class C | 1,000 | 1,014.54 | 2.10 | 10.58 | ||||||||
Class Y | 1,000 | 1,017.84 | 1.44 | 7.26 |
Ivy Science and Technology Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,155.40 | 1.46 | % | $ | 7.87 | ||||
Class B | 1,000 | 1,150.00 | 2.44 | 13.12 | ||||||||
Class C | 1,000 | 1,150.60 | 2.27 | 12.26 | ||||||||
Class E** | 1,000 | 1,148.70 | 2.58 | 13.75 | ||||||||
Class I** | 1,000 | 1,171.00 | 1.11 | 5.97 | ||||||||
Class R | 1,000 | 1,154.30 | 1.64 | 8.83 | ||||||||
Class Y | 1,000 | 1,156.30 | 1.36 | 7.33 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.74 | 1.46 | % | $ | 7.36 | ||||
Class B | 1,000 | 1,012.83 | 2.44 | 12.28 | ||||||||
Class C | 1,000 | 1,013.67 | 2.27 | 11.48 | ||||||||
Class E** | 1,000 | 1,012.14 | 2.58 | 12.98 | ||||||||
Class I** | 1,000 | 1,019.53 | 1.11 | 5.55 | ||||||||
Class R | 1,000 | 1,016.86 | 1.64 | 8.27 | ||||||||
Class Y | 1,000 | 1,018.27 | 1.36 | 6.86 |
Ivy Small Cap Growth Fund Expenses | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
For the Six Months Ended September 30, 2007 | Beginning Account Value 3-31-07 | Ending Account Value 9-30-07 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During Period* | ||||||||
Based on Actual Fund Return (1) | ||||||||||||
Class A | $ | 1,000 | $ | 1,105.60 | 1.57 | % | $ | 8.32 | ||||
Class B | 1,000 | 1,100.30 | 2.43 | 12.81 | ||||||||
Class C | 1,000 | 1,101.50 | 2.19 | 11.56 | ||||||||
Class E** | 1,000 | 1,099.80 | 2.12 | 11.02 | ||||||||
Class I** | 1,000 | 1,120.60 | 1.09 | 5.73 | ||||||||
Class R | 1,000 | 1,104.90 | 1.62 | 8.52 | ||||||||
Class Y | 1,000 | 1,106.20 | 1.33 | 7.06 | ||||||||
Based on 5% Return (2) | ||||||||||||
Class A | $ | 1,000 | $ | 1,017.18 | 1.57 | % | $ | 7.97 | ||||
Class B | 1,000 | 1,012.91 | 2.43 | 12.28 | ||||||||
Class C | 1,000 | 1,014.11 | 2.19 | 11.08 | ||||||||
Class E** | 1,000 | 1,014.46 | 2.12 | 10.68 | ||||||||
Class I** | 1,000 | 1,019.59 | 1.09 | 5.55 | ||||||||
Class R | 1,000 | 1,016.94 | 1.62 | 8.17 | ||||||||
Class Y | 1,000 | 1,018.42 | 1.33 | 6.76 |
*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, 2007, and divided by 365.
**Actual inception date of Class E and Class I shares for each Fund is 4-2-07 (the date on which shares were first acquired by shareholders). The calculations are based on 181 days in the period ended September 30, 2007
(1)This section uses the Fund's actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The "Ending Account Value" shown is computed using the Fund's actual return and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the fourth column.
(2)This section uses a hypothetical 5% annual return and actual Fund expenses. It helps to compare the Fund's ongoing costs with other mutual funds. A shareholder can compare the Fund's ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, redemption fees or exchange fees.
SHAREHOLDER SUMMARY OF IVY ASSET STRATEGY FUND
Portfolio Highlights
On September 30, 2007, Ivy Asset Strategy Fund had net assets totaling $5,106,669,445 invested in a diversified portfolio of:
47.89% | Foreign Common Stocks | |
21.34% | Domestic Common Stocks | |
15.13% | Cash and Cash Equivalents, Investment Funds and Unrealized Gain on Open Forward Currency Contracts | |
7.23% | United States Government and Government Agency Obligations | |
5.27% | Bullion (Gold) | |
2.09% | Foreign Corporate Debt Securities | |
1.04% | Other Government Securities | |
0.01% | Domestic Corporate Debt Securities |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund was invested by industry and geographic regions, respectively, as follows:
Asset AllocationStocks | $ | 69.23 | |||
Raw Materials Stocks | $ | 12.51 | |||
Utilities Stocks | $ | 9.07 | |||
Financial Services Stocks | $ | 8.32 | |||
Capital Goods Stocks | $ | 7.81 | |||
Energy Stocks | $ | 7.72 | |||
Multi-Industry Stocks | $ | 6.35 | |||
Business Equipment and Services Stocks | $ | 4.75 | |||
Consumer Durables Stocks | $ | 3.05 | |||
Consumer Non-Durables Stocks | $ | 2.65 | |||
Technology Stocks | $ | 2.51 | |||
Health Care Stocks | $ | 2.48 | |||
Miscellaneous Stocks | $ | 2.01 | |||
Cash and Cash Equivalents, Investment Funds and Unrealized Gain on Open Forward Currency Contracts | $ | 15.13 | |||
Bonds | $ | 10.37 | |||
United States Government and Government Agency Obligations | $ | 7.23 | |||
Corporate Debt Securities | $ | 2.10 | |||
Foreign Government Bonds (1) | $ | 1.04 | |||
Bullion (Gold) | $ | 5.27 |
(1)Includes $1.03 Germany and $0.01 Russia.
Country WeightingsNorth America | $ | 31.20 | |||
United States | $ | 29.76 | |||
Other North America (1) | $ | 1.44 | |||
Europe | $ | 16.37 | |||
Other Europe (2) | $ | 10.27 | |||
Germany | $ | 6.10 | |||
Cash and Cash Equivalents, Investment Funds and Unrealized Gain on Open Forward Currency Contracts | $ | 15.13 | |||
Pacific Basin | $ | 13.53 | |||
Other Pacific Basin (3) | $ | 6.16 | |||
Japan | $ | 3.96 | |||
India | $ | 3.41 | |||
South America | $ | 11.58 | |||
Chile | $ | 8.66 | |||
Other South America (4) | $ | 2.92 | |||
Bahamas/Caribbean | $ | 6.71 | |||
Cayman Islands | $ | 4.91 | |||
Other Bahamas/Caribbean (5) | $ | 1.80 | |||
Bullion (Gold) | $ | 5.27 | |||
Other (6) | $ | 0.21 |
(1)Includes $0.38 Canada and $1.06 Mexico.
(2)Includes $1.01 Finland, $1.84 France, $0.25 Luxembourg, $2.01 Norway, $0.01 Poland, $2.52 Russia, and $2.63 United Kingdom.
(3)Includes $2.12 Australia, $0.43 Indonesia, $1.05 Malaysia and $2.56 Singapore.
(4)Includes $0.11 Argentina and $2.81 Brazil.
(5)Includes $0.56 Bahamas, $1.03 Bermuda and $0.21 British Virgin Islands.
(6)Includes $0.21 South Africa.
The Investments of Ivy Asset Strategy Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
BULLION - 5.27% | Troy Ounces | Value | ||||||
Gold | 362,515 | $ | 269,312,407 | |||||
(Cost: $247,011,753) | ||||||||
COMMON STOCKS | Shares | |||||||
Aircraft - 1.27% | ||||||||
Boeing Company (The) | 523,264 | 54,937,487 | ||||||
Raytheon Company | 157,835 | 10,073,030 | ||||||
65,010,517 | ||||||||
Banks - 3.20% | ||||||||
Banco Itau Holding Financeira S.A., ADR | 248,576 | 12,582,917 | ||||||
China Merchants Bank Co., Limited, H Shares (A) | 10,041,500 | 44,111,634 | ||||||
Housing Development Finance Corporation Limited (A) | 660,903 | 23,810,587 | ||||||
ICICI Bank Limited (A) | 1,238,217 | 33,012,905 | ||||||
Sberbank (Savings Bank of the Russian Federation) (A)* | 2,492,495 | 10,393,704 | ||||||
Standard Bank Group Limited (A) | 759,368 | 10,962,905 | ||||||
Standard Chartered PLC (A) | 871,656 | 28,534,446 | ||||||
163,409,098 | ||||||||
Business Equipment and Services - 4.54% | ||||||||
Bucyrus International, Inc., Class A | 293,893 | 21,429,208 | ||||||
Ctrip.com International, Ltd. | 1,408,894 | 72,910,265 | ||||||
Jacobs Engineering Group Inc.* | 581,916 | 43,981,211 | ||||||
Mitsui & Co., Ltd. (A) | 498,000 | 12,096,113 | ||||||
Renewable Energy Corporation ASA (A)* | 1,760,900 | 81,165,527 | ||||||
231,582,324 | ||||||||
Capital Equipment - 4.24% | ||||||||
Deere & Company | 151,857 | 22,538,616 | ||||||
Foster Wheeler Ltd.* | 250,933 | 32,931,192 | ||||||
Joy Global Inc. | 353,654 | 17,974,465 | ||||||
SunPower Corporation, Class A* | 1,131,162 | 93,586,688 | ||||||
Suntech Power Holdings Co., Ltd., ADR* | 1,242,380 | 49,570,962 | ||||||
216,601,923 | ||||||||
Chemicals - Petroleum and Inorganic - 1.30% | ||||||||
Monsanto Company | 519,981 | 44,583,171 | ||||||
Yara International ASA (A) | 686,369 | 21,706,638 | ||||||
66,289,809 | ||||||||
Chemicals - Specialty - 0.53% | ||||||||
Mosaic Company* | 505,291 | 27,043,174 | ||||||
Coal - 1.81% | ||||||||
China Shenhua Energy Company Limited, H Shares (A) | 8,378,000 | 50,329,322 | ||||||
Yanzhou Coal Mining Company Limited, Class H (A) | 20,522,000 | 42,238,016 | ||||||
92,567,338 | ||||||||
Communications Equipment - 1.02% | ||||||||
Nokia Corporation, Series A, ADR | 1,367,516 | 51,869,882 | ||||||
Consumer Electronics - 2.65% | ||||||||
Nintendo Co., Ltd. (A) | 260,400 | 135,567,144 | ||||||
Cosmetics and Toiletries - 0.55% | ||||||||
Hengan International Group Company Limited (A) | 7,536,000 | 28,306,592 | ||||||
Electrical Equipment - 1.10% | ||||||||
Bharat Heavy Electricals Limited (A) | 456,900 | 23,356,107 | ||||||
Siemens AG (A) | 238,337 | 32,711,056 | ||||||
56,067,163 | ||||||||
Electronic Components - 0.22% | ||||||||
MEMC Electronic Materials, Inc.* | 187,341 | 11,026,891 | ||||||
Food and Related - 2.10% | ||||||||
Bunge Limited (B) | 752,331 | 80,837,966 | ||||||
Kuala Lumpur Kepong Berhad (A) | 6,767,250 | 26,215,026 | ||||||
107,052,992 | ||||||||
Gold and Precious Metals - 1.28% | ||||||||
Open Joint Stock Company "Mining and Metallurgical Company Norilsk Nickel", ADR (A)* | 37,752 | 10,221,354 | ||||||
streetTRACKS Gold Trust* | 752,700 | 55,323,450 | ||||||
65,544,804 | ||||||||
Health Care - Drugs - 1.53% | ||||||||
Abbott Laboratories | 639,781 | 34,305,057 | ||||||
Schering-Plough Corporation | 1,392,607 | 44,048,159 | ||||||
78,353,216 | ||||||||
Hospital Supply and Management - 0.95% | ||||||||
Wilmar International Limited (A) | 19,699,000 | 48,534,729 | ||||||
Hotels and Gaming - 1.09% | ||||||||
Las Vegas Sands, Inc.* | 415,427 | 55,426,270 | ||||||
Insurance - Life - 0.76% | ||||||||
Ping An Insurance (Group) Company of China, Ltd., H Shares (A) | 2,804,500 | 38,817,857 | ||||||
Mining - 6.75% | ||||||||
BHP Billiton Plc (A) | 2,734,145 | 108,084,795 | ||||||
Cameco Corporation (A) | 416,703 | 19,221,167 | ||||||
Rio Tinto plc (A) | 1,174,374 | 101,588,781 | ||||||
Southern Copper Corporation | 935,390 | 115,829,344 | ||||||
344,724,087 | ||||||||
Motor Vehicles - 0.40% | ||||||||
Suzuki Motor Corporation (A) | 688,700 | 20,385,496 | ||||||
Multiple Industry - 6.35% | ||||||||
Deutsche Borse AG (A) | 1,664,354 | 226,078,173 | ||||||
IOI Corporation Berhad (A) | 15,539,640 | 27,590,557 | ||||||
Keppel Corporation Limited (A) | 3,696,000 | 35,827,937 | ||||||
Reliance Industries Limited (A) | 600,724 | 34,644,427 | ||||||
324,141,094 | ||||||||
Non-Residential Construction - 2.47% | ||||||||
China Communications Construction Company Limited, H Shares (A) | 20,878,000 | 49,631,192 | ||||||
Fluor Corporation | 292,202 | 42,071,244 | ||||||
Kurita Water Industries Ltd. (A) | 1,007,700 | 34,214,339 | ||||||
125,916,775 | ||||||||
Petroleum - Domestic - 0.72% | ||||||||
OAO NOVATEK, GDR (A) | 704,100 | 36,965,250 | ||||||
Petroleum - International - 2.30% | ||||||||
Apache Corporation | 423,950 | 38,180,937 | ||||||
China Petroleum & Chemical Corporation, H Shares (A) | 34,946,000 | 43,649,628 | ||||||
Devon Energy Corporation | 427,918 | 35,602,778 | ||||||
117,433,343 | ||||||||
Petroleum - Services - 2.89% | ||||||||
Baker Hughes Incorporated (B) | 1,012,938 | 91,539,207 | ||||||
Transocean Inc.* | 493,578 | 55,798,993 | ||||||
147,338,200 | ||||||||
Real Estate Investment Trust - 0.92% | ||||||||
Agile Property Holdings Limited (A) | 13,008,000 | 27,308,291 | ||||||
Hongkong Land Holdings Limited (A) | 4,345,000 | 19,639,400 | ||||||
46,947,691 | ||||||||
Security and Commodity Brokers - 4.36% | ||||||||
CME Group Inc. (B) | 221,733 | 130,234,878 | ||||||
NYMEX Holdings, Inc. | 355,558 | 46,286,540 | ||||||
Singapore Exchange Limited (A) | 5,339,000 | 46,363,581 | ||||||
222,884,999 | ||||||||
Steel - 2.65% | ||||||||
Companhia Vale do Rio Doce, ADR | 3,229,608 | 109,580,599 | ||||||
Evraz Group S.A., GDR (A) | 405,850 | 25,690,305 | ||||||
135,270,904 | ||||||||
Timesharing and Software - 0.21% | ||||||||
Tencent Holdings Limited (A) | 1,693,000 | 10,932,627 | ||||||
Utilities - Electric - 1.84% | ||||||||
Veolia Environment (A) | 1,091,482 | 93,990,500 | ||||||
Utilities - Telephone - 7.23% | ||||||||
America Movil, S.A. de C.V. | 805,128 | 51,528,192 | ||||||
Bharti Airtel Limited (A)* | 1,658,719 | 39,124,913 | ||||||
China Mobile Limited (A) | 10,248,500 | 167,823,414 | ||||||
Equinix, Inc.* | 372,741 | 33,024,853 | ||||||
Mobile TeleSystems OJSC, ADR | 131,886 | 9,141,019 | ||||||
Open Joint Stock Company ''Vimpel-Communications'', ADR | 964,120 | 26,069,805 | ||||||
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk., Series B Shares (A) | 18,302,000 | 22,014,434 | ||||||
Reliance Communication Ventures Limited (A) | 1,387,120 | 20,425,188 | ||||||
369,151,818 | ||||||||
TOTAL COMMON STOCKS - 69.23% | $ | 3,535,154,507 | ||||||
(Cost: $2,501,181,643) | ||||||||
| ||||||||
INVESTMENT FUNDS - 0.08% | ||||||||
Vietnam Azalea Fund Limited (C)(D)* | 1,100,000 | $ | 3,909,400 | |||||
(Cost: $4,180,000) | ||||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | |||||||
Banks - 0.14% | ||||||||
Banco BMG S.A., | ||||||||
8.75%, 7-1-10 (E) | $ | 2,000 | 2,042,500 | |||||
Norilsk Nickel Finance Luxembourg S.A., | ||||||||
7.125%, 9-30-09 | 3,225 | 3,269,795 | ||||||
PT Bank Rakyat Indonesia (Persero), | ||||||||
7.75%, 10-30-13 | 1,950 | 1,988,850 | ||||||
7,301,145 | ||||||||
Beverages - 0.01% | ||||||||
Central European Distribution Corporation, | ||||||||
8.0%, 7-25-12 (E)(F) | EUR320 | 464,287 | ||||||
Business Equipment and Services - 0.08% | ||||||||
Shimao Property Holdings Limited, | ||||||||
8.0%, 12-1-16 (G) | $ | 4,000 | 3,960,000 | |||||
Finance Companies - 0.40% | ||||||||
ALROSA Finance S.A., | ||||||||
8.125%, 5-6-08 | 3,300 | 3,326,449 | ||||||
C5 Capital (SPV) Limited, | ||||||||
6.196%, 12-31-49 (G) | 10,750 | 10,621,430 | ||||||
Russian Standard Bank: | ||||||||
8.125%, 4-21-08 | 5,000 | 4,839,800 | ||||||
7.5%, 10-7-10 | 1,400 | 1,239,000 | ||||||
7.5%, 10-7-10 (G) | 200 | 175,480 | ||||||
Toyota Motor Credit Corporation, | ||||||||
4.19%, 1-18-15 (H) | 325 | 297,486 | ||||||
20,499,645 | ||||||||
Food and Related - 0.11% | ||||||||
Cosan S.A. Industria e Comercio: | ||||||||
9.0%, 11-1-09 | 4,840 | 5,106,200 | ||||||
9.0%, 11-1-09 (G) | 500 | 527,500 | ||||||
5,633,700 | ||||||||
Forest and Paper Products - 0.13% | ||||||||
Kimberly-Clark de Mexico, S.A. de C.V., | ||||||||
8.875%, 8-1-09 (E) | 1,500 | 1,594,779 | ||||||
Sino-Forest Corporation: | ||||||||
9.125%, 8-17-11 | 4,000 | 4,180,000 | ||||||
9.125%, 8-17-11 (G) | 700 | 740,250 | ||||||
6,515,029 | ||||||||
Homebuilders, Mobile Homes - 0.02% | ||||||||
Desarrolladora Homex, S.A. de C.V., | ||||||||
7.5%, 9-28-15 | 900 | 895,500 | ||||||
Mining - 0.08% | ||||||||
Vedanta Resources plc: | ||||||||
6.625%, 2-22-10 | 3,500 | 3,486,875 | ||||||
6.625%, 2-22-10 (G) | 550 | 547,250 | ||||||
4,034,125 | ||||||||
Motor Vehicles - 0.01% | ||||||||
Hyundai Motor Company, | ||||||||
5.3%, 12-19-08 (E) | 320 | 319,502 | ||||||
Steel - 0.11% | ||||||||
Evraz Group S.A.: | ||||||||
8.25%, 11-10-15 | 1,500 | 1,503,750 | ||||||
8.25%, 11-10-15 (G) | 500 | 501,950 | ||||||
EvrazSecurities S.A., | ||||||||
10.875%, 8-3-09 | 3,500 | 3,724,490 | ||||||
5,730,190 | ||||||||
Trucking and Shipping - 0.55% | ||||||||
Ultrapetrol (Bahamas) Limited, | ||||||||
9.0%, 11-24-14 | 29,760 | 28,458,000 | ||||||
Utilities - Electric - 0.40% | ||||||||
CESP - Companhia Energetica de Sao Paulo, | ||||||||
9.75%, 1-15-15 (E)(F) | BRL23,100 | 13,517,218 | ||||||
Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A.: | ||||||||
8.875%, 12-15-16 | $ | 3,350 | 3,115,500 | |||||
8.875%, 12-15-16 (G) | 3,000 | 2,790,000 | ||||||
Empresa Nacional de Electricidad S.A., | ||||||||
7.75%, 7-15-08 | 900 | 914,740 | ||||||
20,337,458 | ||||||||
Utilities - Telephone - 0.06% | ||||||||
Open Joint Stock Company Mobile TeleSystems, | ||||||||
9.75%, 1-30-08 | 2,400 | 2,413,200 | ||||||
Open Joint Stock Company "Vimpel-Communications", | ||||||||
8.0%, 2-11-10 | 750 | 763,125 | ||||||
3,176,325 | ||||||||
TOTAL CORPORATE DEBT SECURITIES - 2.10% | $ | 107,324,906 | ||||||
(Cost: $106,273,377) | ||||||||
| ||||||||
OTHER GOVERNMENT SECURITIES | �� | |||||||
Germany - 1.03% | ||||||||
Bundesobligation, | ||||||||
3.5%, 10-9-09 (F) | EUR37,500 | 52,898,052 | ||||||
Russia - 0.01% | ||||||||
Open Joint Stock Company "Russian Railroads", | ||||||||
6.67%, 1-22-09 (F) | RUB7,000 | 278,780 | ||||||
TOTAL OTHER GOVERNMENT SECURITIES - 1.04% | $ | 53,176,832 | ||||||
(Cost: $52,527,129) | ||||||||
| ||||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | ||||||||
Mortgage-Backed Obligations - 0.61% | ||||||||
Federal Home Loan Mortgage Corporation Agency REMIC/CMO (Interest Only): | ||||||||
4.5%, 8-15-17 | $ | 5,211 | 434,182 | |||||
5.5%, 9-15-17 | 4,772 | 727,351 | ||||||
5.0%, 11-15-17 | 2,420 | 294,204 | ||||||
5.0%, 5-15-18 | 3,313 | 832,856 | ||||||
5.0%, 4-15-19 | 410 | 55,741 | ||||||
5.0%, 4-15-19 | 201 | 28,451 | ||||||
5.0%, 2-15-20 | 17 | 7 | ||||||
5.0%, 7-15-21 | 260 | 11,519 | ||||||
5.0%, 6-15-22 | 149 | 2,439 | ||||||
5.0%, 7-15-22 | 710 | 12,365 | ||||||
5.0%, 11-15-22 | 545 | 75,450 | ||||||
5.0%, 1-15-23 | 174 | 3,926 | ||||||
5.5%, 3-15-23 | 3,714 | 758,724 | ||||||
5.0%, 4-15-23 | 143 | 7,169 | ||||||
5.0%, 5-15-23 | 365 | 55,329 | ||||||
5.0%, 6-15-23 | 3,564 | 545,987 | ||||||
5.0%, 6-15-23 | 2,883 | 436,659 | ||||||
5.0%, 8-15-23 | 271 | 44,208 | ||||||
5.5%, 11-15-23 | 942 | 38,873 | ||||||
5.5%, 11-15-23 | 565 | 28,708 | ||||||
5.0%, 9-15-24 | 425 | 23,785 | ||||||
5.5%, 9-15-24 | 218 | 11,914 | ||||||
5.5%, 4-15-25 | 166 | 11,375 | ||||||
5.5%, 4-15-25 | 68 | 7,796 | ||||||
5.0%, 9-15-25 | 677 | 41,031 |
5.5%, 10-15-25 | 4,126 | 859,254 | ||||||
5.0%, 4-15-26 | 2,386 | 157,407 | ||||||
5.0%, 10-15-28 | 990 | 171,760 | ||||||
5.5%, 2-15-30 | 250 | 26,791 | ||||||
5.0%, 8-15-30 | 342 | 32,413 | ||||||
5.0%, 10-15-30 | 1,250 | 305,528 | ||||||
5.5%, 3-15-31 | 365 | 49,079 | ||||||
5.5%, 10-15-32 | 3,900 | 762,977 | ||||||
5.5%, 1-15-33 | 2,758 | 737,949 | ||||||
5.5%, 5-15-33 | 2,835 | 690,817 | ||||||
5.0%, 7-15-33 | 2,818 | 648,310 | ||||||
6.0%, 11-15-35 | 2,889 | 661,775 | ||||||
Federal National Mortgage Association Agency REMIC/CMO (Interest Only): | ||||||||
5.5%, 11-25-17 | 386 | 23,141 | ||||||
5.0%, 5-25-22 | 227 | 32,698 | ||||||
5.0%, 7-25-23 | 5,396 | 1,007,072 | ||||||
5.0%, 8-25-23 | 1,700 | 284,505 | ||||||
5.0%, 11-25-23 | 2,716 | 459,471 | ||||||
5.5%, 9-25-25 | 222 | 11,652 | ||||||
5.5%, 11-25-25 | 482 | 23,046 | ||||||
4.5%, 4-25-30 | 2,452 | 305,728 | ||||||
5.0%, 3-25-31 | 6,338 | 1,131,669 | ||||||
5.0%, 8-15-31 | 4,145 | 758,161 | ||||||
5.5%, 6-25-33 | 4,141 | 829,941 | ||||||
5.5%, 8-25-33 | 7,600 | 1,581,478 | ||||||
5.5%, 12-25-33 | 3,493 | 730,005 | ||||||
5.5%, 4-25-34 | 7,084 | 1,687,151 | ||||||
5.5%, 8-25-35 | 3,659 | 1,058,748 | ||||||
5.5%, 11-25-36 | 11,450 | 3,361,860 | ||||||
Federal National Mortgage Corporation Agency REMIC/CMO (Interest Only), | ||||||||
5.0%, 9-25-30 | 2,315 | 351,420 | ||||||
Government National Mortgage Association Agency REMIC/CMO (Interest Only): | ||||||||
5.0%, 1-20-30 | 795 | 83,478 | ||||||
5.0%, 6-20-31 | 787 | 97,871 | ||||||
5.5%, 3-20-32 | 3,376 | 555,862 | ||||||
5.0%, 10-20-32 | 1,685 | 481,861 | ||||||
7.0%, 5-20-33 | 7,047 | 1,618,609 | ||||||
5.5%, 7-16-33 | 3,100 | 803,704 | ||||||
5.0%, 7-20-33 | 150 | 25,555 | ||||||
5.5%, 11-20-33 | 822 | 145,393 | ||||||
5.5%, 6-20-35 | 7,187 | 1,736,573 | ||||||
5.5%, 7-20-35 | 2,900 | 671,993 | ||||||
5.5%, 7-20-35 | 1,357 | 186,228 | ||||||
5.5%, 10-16-35 | 6,784 | 1,545,263 | ||||||
31,184,245 | ||||||||
Treasury Obligations - 6.62% | ||||||||
United States Treasury Notes: | ||||||||
4.625%, 2-29-08 | 29,000 | 29,061,161 | ||||||
5.125%, 6-30-08 | 29,000 | 29,203,899 | ||||||
4.125%, 8-15-08 (B) | 45,000 | 45,000,000 | ||||||
4.375%, 11-15-08 (B) | 54,000 | 54,198,288 | ||||||
4.875%, 1-31-09 | 36,000 | 36,405,000 | ||||||
4.5%, 3-31-09 | 29,000 | 29,212,976 | ||||||
4.625%, 7-31-09 | 29,000 | 29,326,250 | ||||||
4.0%, 8-31-09 | 48,000 | 48,018,768 | ||||||
4.5%, 5-15-10 | 37,000 | 37,453,842 | ||||||
337,880,184 | ||||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 7.23% | $ | 369,064,429 | ||||||
(Cost: $367,214,369) | ||||||||
| ||||||||
UNREALIZED GAIN (LOSS) ON OPEN FORWARD CURRENCY CONTRACTS - 0.46% | Face Amount in Thousands | |||||||
Chinese Yuan Renminbi, 11-9-07 (F) | CNY996,000 | $ | 606,242 | |||||
Chinese Yuan Renminbi, 11-16-07 (F) | 1,231,500 | 383,533 | ||||||
Chinese Yuan Renminbi, 12-6-07 (F) | 1,134,000 | 937,569 | ||||||
Chinese Yuan Renminbi, 12-6-07 (F) | 72,000 | (22,620 | ) | |||||
Chinese Yuan Renminbi, 2-27-08 (F) | 1,314,500 | 1,237,748 | ||||||
Chinese Yuan Renminbi, 4-9-08 (F) | 118,000 | (16,895 | ) | |||||
Euro, 1-10-08 (F) | EUR139,200 | 9,512,992 | ||||||
Russian Ruble, 6-16-08 (F) | RUB2,395,000 | 2,733,386 | ||||||
Russian Ruble, 6-25-08 (F) | 2,540,000 | 3,170,459 | ||||||
Russian Ruble, 8-20-08 (F) | 2,751,000 | 3,209,369 | ||||||
Russian Ruble, 9-22-08 (F) | 1,009,000 | 551,972 | ||||||
Singapore Dollar, 8-21-08 (F) | SGD66,400 | 1,180,879 | ||||||
$ | 23,484,634 | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Commercial Paper | ||||||||
Beverages - 0.78% | ||||||||
Anheuser-Busch Companies, Inc.: | ||||||||
4.73%, 10-1-07 | $ | 20,000 | 20,000,000 | |||||
4.7%, 11-19-07 | 20,000 | 19,872,056 | ||||||
39,872,056 | ||||||||
Capital Equipment - 0.12% | ||||||||
Deere (John) Capital Corporation, | ||||||||
5.26%, 10-5-07 | 6,000 | 5,996,493 | ||||||
Chemicals - Petroleum and Inorganic - 0.35% | ||||||||
E.I. du Pont de Nemours and Company, | ||||||||
4.75%, 10-9-07 | 18,000 | 17,981,000 | ||||||
Chemicals - Specialty - 0.38% | ||||||||
Air Products and Chemicals, Inc., | ||||||||
4.8%, 10-3-07 | 19,583 | 19,577,778 | ||||||
Computers - Main and Mini - 0.88% | ||||||||
International Business Machines Corporation: | ||||||||
4.76%, 10-5-07 | 21,000 | 20,988,894 | ||||||
5.12%, 10-30-07 | 24,000 | 23,901,013 | ||||||
44,889,907 |
Electrical Equipment - 0.60% | ||||||||
W.W. Grainger, Inc.: | ||||||||
4.78%, 10-24-07 | 16,650 | 16,599,153 | ||||||
4.78%, 10-24-07 | 10,000 | 9,969,461 | ||||||
4.795%, 10-24-07 | 4,000 | 3,987,746 | ||||||
30,556,360 | ||||||||
Finance Companies - 0.29% | ||||||||
BP Capital Markets p.l.c.: | ||||||||
4.75%, 10-1-07 | 5,071 | 5,071,000 | ||||||
4.745%, 10-15-07 | 5,000 | 4,990,774 | ||||||
4.76%, 10-15-07 | 5,000 | 4,990,744 | ||||||
15,052,518 | ||||||||
Food and Related - 2.67% | ||||||||
Archer Daniels Midland Company, | ||||||||
5.11%, 11-6-07 | 30,000 | 29,846,700 | ||||||
Campbell Soup Co., | ||||||||
5.25%, 10-1-07 | 40,017 | 40,017,000 | ||||||
Hershey Company (The): | ||||||||
5.15%, 10-9-07 | 5,195 | 5,189,055 | ||||||
4.76%, 10-15-07 | 11,305 | 11,284,073 | ||||||
5.3%, 10-15-07 | 10,000 | 9,979,389 | ||||||
Nestle Capital Corp.: | ||||||||
4.79%, 10-4-07 | 25,000 | 24,990,021 | ||||||
4.8%, 12-12-07 | 15,000 | 14,856,000 | ||||||
136,162,238 | ||||||||
Health Care - Drugs - 2.15% | ||||||||
Abbott Laboratories: | ||||||||
5.2%, 10-10-07 | 19,500 | 19,474,650 | ||||||
4.99%, 10-23-07 | 21,414 | 21,348,699 | ||||||
Alcon Capital Corporation (Nestle S.A.), | ||||||||
5.2%, 11-14-07 | 10,000 | 9,936,444 | ||||||
GlaxoSmithKline Finance plc: | ||||||||
4.835%, 10-5-07 | 2,000 | 1,998,926 | ||||||
4.835%, 10-12-07 | 20,000 | 19,970,453 | ||||||
5.2%, 10-12-07 | 20,000 | 19,968,222 | ||||||
4.76%, 12-18-07 | 9,121 | 9,026,932 | ||||||
Merck & Co., Inc. | ||||||||
4.75%, 10-18-07 | 8,000 | 7,982,056 | ||||||
109,706,382 | ||||||||
Health Care - General - 0.84% | ||||||||
Johnson & Johnson: | ||||||||
4.73%, 10-9-07 | 17,000 | 16,982,131 | ||||||
4.74%, 10-9-07 | 7,000 | 6,992,627 | ||||||
4.72%, 11-20-07 | 19,000 | 18,875,445 | ||||||
42,850,203 | ||||||||
Household - General Products - 0.74% | ||||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)): | ||||||||
4.76%, 10-9-07 | 3,000 | 2,996,827 | ||||||
5.2%, 10-9-07 | 10,000 | 9,988,445 | ||||||
5.27%, 10-10-07 | 10,000 | 9,986,825 | ||||||
4.795%, 10-17-07 | 5,000 | 4,989,344 | ||||||
5.0%, 11-8-07 | 10,000 | 9,947,222 | ||||||
37,908,663 | ||||||||
Multiple Industry - 0.29% | ||||||||
Honeywell International Inc., | ||||||||
4.76%, 11-21-07 | 15,000 | 14,898,850 | ||||||
Retail - General Merchandise - 0.27% | ||||||||
Target Corporation, | ||||||||
5.0%, 10-19-07 | 14,000 | 13,965,000 | ||||||
Trucking and Shipping - 0.59% | ||||||||
United Parcel Service Inc., | ||||||||
5.02%, 10-5-07 | 30,000 | 29,983,267 | ||||||
Total Commercial Paper - 10.95% | 559,400,715 | |||||||
Municipal Obligations - Taxable | ||||||||
Indiana - 0.05% | ||||||||
City of Hobart, Indiana, Taxable Variable Rate Demand, Economic Development Revenue Bonds (Albanese Confectionery Group, Inc. Project), Series 2006B (Harris N.A.), | ||||||||
5.15%, 10-4-07 (H) | 2,500 | 2,500,000 | ||||||
Kansas - 0.05% | ||||||||
City of Park City, Kansas, Taxable Industrial Revenue Bonds (The Hayes Company, Inc.), Series 2001 (U.S. Bank, National Association), | ||||||||
5.3%, 10-1-07 (H) | 2,720 | 2,720,000 | ||||||
Washington - 0.07% | ||||||||
Washington State Housing Finance Commission, Taxable Variable Rate Demand Multifamily Revenue Bonds (Brittany Park Project), Series 1996B (U.S. Bank of Washington, National Association), | ||||||||
5.13%, 10-4-07 (H) | 3,330 | 3,330,000 | ||||||
Wisconsin - 0.08% | ||||||||
Town of Wood River, Wisconsin, Taxable Variable Rate Demand Industrial Development Revenue Bonds (Burnett Dairy Cooperative Project), Series 2001B (U. S. Bank, National Association), | ||||||||
5.3%, 10-1-07 (H) | 3,970 | 3,970,000 | ||||||
Total Municipal Obligations - Taxable - 0.25% | 12,520,000 | |||||||
Notes | ||||||||
Business Equipment and Services - 0.25% | ||||||||
Schlitz Park Associates II Limited Partnership and 1610 N. 2nd Street LLC, Taxable Variable Rate Demand Bonds, Series 2001 (U.S. Bank, National Association), | ||||||||
5.3%, 10-1-07 (H) | 12,780 | 12,780,000 | ||||||
Finance Companies - 0.09% | ||||||||
Park Street Properties I, LLC, Taxable Variable Rate Demand Notes, Series 2004 (University of Wisconsin - Madison Projects), (U.S. Bank, National Association), | ||||||||
5.13%, 10-4-07 (H) | 4,550 | 4,550,000 | ||||||
Health Care - General - 0.19% | ||||||||
ACTS Retirement - Life Communities, Inc., Variable Rate Demand Bonds, Series 2003A (Bank of America, National Association), | ||||||||
5.05%, 10-4-07 (H) | 9,510 | 9,510,000 | ||||||
Hospital Supply and Management - 0.03% | ||||||||
Meriter Management Services, Inc., Taxable Variable Rate Demand Notes, Series 1996 (U.S. Bank Milwaukee, National Association), | ||||||||
5.3%, 10-3-07 (H) | 1,730 | 1,730,000 | ||||||
Retail - General Merchandise - 0.13% | ||||||||
Service Oil, Inc., Taxable Variable Rate Demand Bonds (Service Oil, Inc.), Series 2002 (U.S. Bank, National Association), | ||||||||
5.3%, 10-1-07 (H) | 6,760 | 6,760,000 | ||||||
Total Notes- 0.69% | 35,330,000 | |||||||
United States Government Obligations - 0.35% | ||||||||
Overseas Private Investment Corporation: | ||||||||
5.3%, 10-3-07 (H) | 8,758 | 8,757,750 | ||||||
5.3%, 10-3-07 (H) | 5,000 | 5,000,000 | ||||||
5.35%, 10-3-07 (H) | 4,200 | 4,200,000 | ||||||
17,957,750 | ||||||||
TOTAL SHORT-TERM SECURITIES - 12.24% | $ | 625,208,465 | ||||||
(Cost: $625,208,465) | ||||||||
TOTAL INVESTMENT SECURITIES - 97.65% | $ | 4,986,635,580 | ||||||
(Cost: $3,903,596,736) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 2.35% | 120,033,865 | |||||||
NET ASSETS - 100.00% | $ | 5,106,669,445 | ||||||
Notes to Schedule of Investments | ||||||||||||||
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. | ||||||||||||||
*No dividends were paid during the preceding 12 months. | ||||||||||||||
(A)Listed on an exchange outside the United States. | ||||||||||||||
(B)Securities serve as collateral for the following open futures contracts at September 30, 2007. (See Note 8 to financial statements): | ||||||||||||||
Description | Type | Expiration Date | Number of Contracts | Market Value | Unrealized Depreciation | |||||||||
DAX Index | Short | 12-21-07 | 994 | $ | (277,228,812 | ) | $ | (6,389,240 | ) | |||||
Hang Seng Index | Short | 10-30-07 | 2,917 | (510,939,710 | ) | (3,215,729 | ) | |||||||
Nasdaq 100 E-Mini | Short | 12-21-07 | 10,760 | (454,932,800 | ) | (15,741,917 | ) | |||||||
Nikkei 225 | Short | 12-13-07 | 3,474 | (511,418,254 | ) | (24,187,108 | ) | |||||||
Russell 2000 E-Mini | Short | 12-21-07 | 8,128 | (660,968,960 | ) | (13,873,735 | ) | |||||||
S&P 500 E-Mini | Short | 12-21-07 | 14,469 | (1,112,738,445 | ) | (18,447,043 | ) | |||||||
$ | (3,528,226,981 | ) | $ | (81,854,772 | ) | |||||||||
(C)Deemed to be an affiliate due to the Fund having at least 5% of the voting securities. | ||||||||||||||
(D)Restricted security. At September 30, 2007, the total value of restricted securities owned were: |
Security | Acquisition Date | Shares | Cost | Market Value | ||||||
Vietnam Azalea Fund Limited | 6-28-07 | 1,100,000 | $4,180,000 | $3,909,400 | ||||||
The total market value of restricted securities represents approximately 0.08% of net assets at September 30, 2007. | ||||||||||
(E)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be illiquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of these securities amounted to $17,938,286 or 0.35% of net assets. | ||||||||||
(F)Principal amounts are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real, CNY - Chinese Yuan Renminbi, EUR - Euro, RUB - Russian Ruble, SGD - Singapore Dollar). | ||||||||||
(G)Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of these securities amounted to $19,863,860 or 0.39% of net assets. | ||||||||||
(H)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. | ||||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | ||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY ASSET STRATEGY FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (Notes 1 and 3): | ||||
Securities (cost - $3,652,405) | $ | 4,713,414 | ||
Bullion (cost - $247,012) | 269,312 | |||
Affiliated company (cost - $4,180) | 3,910 | |||
4,986,636 | ||||
Cash denominated in foreign currencies (cost - $21) | 22 | |||
Receivables: | ||||
Fund shares sold | 111,338 | |||
Variation margin (Note 8) | 12,019 | |||
Dividends and interest | 11,509 | |||
Investment securities sold | 6,833 | |||
Prepaid and other assets | 183 | |||
Total assets | 5,128,540 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 7,602 | |||
Due to custodian | 5,563 | |||
Payable to Fund shareholders | 3,918 | |||
Accrued shareholder servicing (Note 2) | 675 | |||
Accrued management fee (Note 2) | 251 | |||
Accrued distribution fee (Note 2) | 161 | |||
Accrued service fee (Note 2) | 93 | |||
Accrued accounting services fee (Note 2) | 22 | |||
Other | 3,586 | |||
Total liabilities | 21,871 | |||
Total net assets | $ | 5,106,669 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 2,053 | ||
Additional paid-in capital | 4,130,317 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 18,913 | |||
Accumulated undistributed net realized loss on investment transactions | (42,650 | ) | ||
Net unrealized appreciation in value of investments | 998,036 | |||
Net assets applicable to outstanding units of capital | $ | 5,106,669 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $25.09 | |||
Class B | $24.58 | |||
Class C | $24.66 | |||
Class E | $25.03 | |||
Class I | $25.19 | |||
Class Y | $25.10 | |||
Capital shares outstanding: | ||||
Class A | 84,368 | |||
Class B | 7,658 | |||
Class C | 91,696 | |||
Class E | 127 | |||
Class I | 175 | |||
Class Y | 21,249 | |||
Capital shares authorized | 500,000 |
See Notes to Financial Statements.
Statement of Operations
IVY ASSET STRATEGY FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $1,247) | $ | 20,891 | ||
Interest and amortization (net of foreign withholding taxes of $2) | 19,707 | |||
Total income | 40,598 | |||
Expenses (Note 2): | ||||
Investment management fee | 11,042 | |||
Distribution fee: | ||||
Class B | 549 | |||
Class C | 5,971 | |||
Class E | 2 | |||
Class Y | 364 | |||
Service fee: | ||||
Class A | 1,846 | |||
Class B | 183 | |||
Class C | 1,991 | |||
Shareholder servicing: | ||||
Class A | 756 | |||
Class B | 131 | |||
Class C | 811 | |||
Class E | 6 | |||
Class I | 2 | |||
Class Y | 255 | |||
Custodian fees | 440 | |||
Accounting services fee | 134 | |||
Legal fees | 27 | |||
Audit fees | 15 | |||
Other | 525 | |||
Total expenses | 25,050 | |||
Net investment income | 15,548 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | $ | 19,963 | ||
Realized net gain on forward currency contracts | 7,875 | |||
Realized net gain on written options | 211 | |||
Realized net gain on swap agreements | 14,432 | |||
Realized net loss on futures contracts | (147,483 | ) | ||
Realized net gain on foreign currency exchange transactions | 6,547 | |||
Realized loss on investments | (98,455 | ) | ||
Unrealized appreciation in value of securities during the period* | 874,494 | |||
Unrealized appreciation in value of forward currency contracts during the period | 22,627 | |||
Unrealized depreciation in value of futures contracts during the period | (68,397 | ) | ||
Unrealized appreciation in value of foreign currency exchange transactions during the period | 22 | |||
Unrealized appreciation in value of investments during the period | 828,746 | |||
Net gain on investments | 730,291 | |||
Net increase in net assets resulting from operations | $ | 745,839 | ||
*Includes $271 in depreciation of affiliated security.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY ASSET STRATEGY FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 15,548 | $ | 13,599 | ||||
Realized net gain (loss) on investments | (98,455 | ) | 63,031 | |||||
Unrealized appreciation | 828,746 | 87,146 | ||||||
Net increase in net assets resulting from operations | 745,839 | 163,776 | ||||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (6,792 | ) | (564 | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (6 | ) | NA | |||||
Class I | (12 | ) | NA | |||||
Class Y | (1,266 | ) | (66 | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (6,756 | ) | ||||
Class B | (–– | ) | (715 | ) | ||||
Class C | (–– | ) | (6,374 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (715 | ) | ||||
(8,076 | ) | (15,190 | ) | |||||
Capital share transactions (Note 5) | 1,775,784 | 1,859,601 | ||||||
Total increase | 2,513,547 | 2,008,187 | ||||||
NET ASSETS | ||||||||
Beginning of period | 2,593,122 | 584,935 | ||||||
End of period | $ | 5,106,669 | $ | 2,593,122 | ||||
Undistributed net investment income | $ | 18,913 | $ | 4,894 | ||||
(1)See "Financial Highlights" on pages 36 - 41.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.65 | $ | 18.76 | $ | 14.21 | $ | 12.86 | $ | 11.18 | $ | 11.33 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.15 | (1) | 0.25 | (1) | 0.05 | 0.06 | 0.08 | 0.16 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 4.40 | (1) | 1.81 | (1) | 4.68 | 1.47 | 1.71 | (0.16 | ) | ||||||||||||
Total from investment operations | 4.55 | 2.06 | 4.73 | 1.53 | 1.79 | (0.00 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.11 | ) | (0.02 | ) | (0.04 | ) | (0.07 | ) | (0.11 | ) | (0.15 | ) | |||||||||
Capital gains | (0.00 | ) | (0.15 | ) | (0.14 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.11 | ) | (0.17 | ) | (0.18 | ) | (0.18 | ) | (0.11 | ) | (0.15 | ) | |||||||||
Net asset value, end of period | $ | 25.09 | $ | 20.65 | $ | 18.76 | $ | 14.21 | $ | 12.86 | $ | 11.18 | |||||||||
Total return(2) | 22.11 | % | 11.04 | % | 33.40 | % | 12.02 | % | 16.06 | % | 0.00 | % | |||||||||
Net assets, end of period (in millions) | $2,117 | $1,118 | $269 | $39 | $17 | $9 | |||||||||||||||
Ratio of expenses to average net assets | 1.05 | %(3) | 1.13 | % | 1.28 | % | 1.44 | % | 1.47 | % | 1.40 | % | |||||||||
Ratio of net investment income to average net assets | 1.27 | %(3) | 1.28 | % | 0.69 | % | 0.56 | % | 0.53 | % | 1.23 | % | |||||||||
Portfolio turnover rate | 39 | % | 123 | % | 53 | % | 98 | % | 254 | % | 109 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.22 | $ | 18.50 | $ | 14.11 | $ | 12.83 | $ | 11.17 | $ | 11.32 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.08 | 0.01 | (0.03 | ) | (0.03 | ) | 0.05 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 4.31 | 1.79 | 4.52 | 1.44 | 1.71 | (0.15 | ) | ||||||||||||||
Total from investment operations | 4.36 | 1.87 | 4.53 | 1.41 | 1.68 | (0.10 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | )* | (0.02 | ) | (0.02 | ) | (0.05 | ) | |||||||||
Capital gains | (0.00 | ) | (0.15 | ) | (0.14 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.15 | ) | (0.14 | ) | (0.13 | ) | (0.02 | ) | (0.05 | ) | |||||||||
Net asset value, end of period | $ | 24.58 | $ | 20.22 | $ | 18.50 | $ | 14.11 | $ | 12.83 | $ | 11.17 | |||||||||
Total return | 21.56 | % | 10.16 | % | 32.22 | % | 11.02 | % | 15.07 | % | - -0.92 | % | |||||||||
Net assets, end of period (in millions) | $188 | $119 | $37 | $11 | $7 | $3 | |||||||||||||||
Ratio of expenses to average net assets | 1.88 | %(1) | 1.98 | % | 2.14 | % | 2.30 | % | 2.38 | % | 2.35 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 0.44 | %(1) | 0.43 | % | - -0.13 | % | - -0.30 | % | - -0.40 | % | 0.31 | % | |||||||||
Portfolio turnover rate | 39 | % | 123 | % | 53 | % | 98 | % | 254 | % | 109 | % |
*Not shown due to rounding.
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.27 | $ | 18.54 | $ | 14.12 | $ | 12.83 | $ | 11.17 | $ | 11.32 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.07 | 0.01 | (0.03 | ) | (0.03 | ) | 0.05 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 4.34 | 1.81 | 4.56 | 1.45 | 1.73 | (0.14 | ) | ||||||||||||||
Total from investment operations | 4.39 | 1.88 | 4.57 | 1.42 | 1.70 | (0.09 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.06 | ) | |||||||||
Capital gains | (0.00 | ) | (0.15 | ) | (0.14 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.15 | ) | (0.15 | ) | (0.13 | ) | (0.04 | ) | (0.06 | ) | |||||||||
Net asset value, end of period | $ | 24.66 | $ | 20.27 | $ | 18.54 | $ | 14.12 | $ | 12.83 | $ | 11.17 | |||||||||
Total return | 21.66 | % | 10.19 | % | 32.45 | % | 11.11 | % | 15.21 | % | - -0.79 | % | |||||||||
Net assets, end of period (in millions) | $2,261 | $1,153 | $250 | $55 | $49 | $51 | |||||||||||||||
Ratio of expenses to average net assets | 1.80 | %(1) | 1.90 | % | 2.01 | % | 2.21 | % | 2.27 | % | 2.20 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 0.51 | %(1) | 0.52 | % | - -0.01 | % | - -0.22 | % | - -0.26 | % | 0.46 | % | |||||||||
Portfolio turnover rate | 39 | % | 123 | % | 53 | % | 98 | % | 254 | % | 109 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 20.65 | |||
Income from investment operations: | |||||
Net investment income | 0.02 | (2) | |||
Net realized and unrealized gain on investments | 4.47 | (2) | |||
| |||||
Total from investment operations | 4.49 | ||||
Less distributions from: | |||||
Net investment income | (0.11 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.11 | ) | |||
Net asset value, end of period | $ | 25.03 | |||
Total return(3) | 21.63 | % | |||
Net assets, end of period (in millions) | $3 | ||||
Ratio of expenses to average net assets | 1.83 | %(4) | |||
Ratio of net investment income to average net assets | 0.30 | %(4) | |||
Portfolio turnover rate | 39 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 20.67 | |||
Income from investment operations: | |||||
Net investment income | 0.13 | (2) | |||
Net realized and unrealized gain on investments | 4.50 | (2) | |||
| |||||
Total from investment operations | 4.63 | ||||
Less distributions from: | |||||
Net investment income | (0.11 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.11 | ) | |||
Net asset value, end of period | $ | 25.19 | |||
Total return | 22.24 | % | |||
Net assets, end of period (in millions) | $4 | ||||
Ratio of expenses to average net assets | 0.86 | %(3) | |||
Ratio of net investment income to average net assets | 1.53 | %(3) | |||
Portfolio turnover rate | 39 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ASSET STRATEGY FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 20.67 | $ | 18.78 | $ | 14.22 | $ | 12.87 | $ | 11.18 | $ | 11.33 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.15 | (1) | 0.26 | (1) | 0.05 | 0.08 | 0.09 | 0.11 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 4.39 | (1) | 1.80 | (1) | 4.69 | 1.45 | 1.71 | (0.10 | ) | ||||||||||||
Total from investment operations | 4.54 | 2.06 | 4.74 | 1.53 | 1.80 | 0.01 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.11 | ) | (0.02 | ) | (0.04 | ) | (0.07 | ) | (0.11 | ) | (0.16 | ) | |||||||||
Capital gains | (0.00 | ) | (0.15 | ) | (0.14 | ) | (0.11 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.11 | ) | (0.17 | ) | (0.18 | ) | (0.18 | ) | (0.11 | ) | (0.16 | ) | |||||||||
Net asset value, end of period | $ | 25.10 | $ | 20.67 | $ | 18.78 | $ | 14.22 | $ | 12.87 | $ | 11.18 | |||||||||
Total return | 22.04 | % | 11.04 | % | 33.46 | % | 12.05 | % | 16.19 | % | 0.08 | % | |||||||||
Net assets, end of period (in millions) | $534 | $203 | $29 | $4 | $2 | $1 | |||||||||||||||
Ratio of expenses to average net assets | 1.12 | %(2) | 1.15 | % | 1.22 | % | 1.35 | % | 1.39 | % | 1.32 | % | |||||||||
Ratio of net investment income to average net assets | 1.23 | %(2) | 1.30 | % | 0.81 | % | 0.66 | % | 0.67 | % | 1.34 | % | |||||||||
Portfolio turnover rate | 39 | % | 123 | % | 53 | % | 98 | % | 254 | % | 109 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY CAPITAL APPRECIATION FUND
Portfolio Highlights
On September 30, 2007, Ivy Capital Appreciation Fund had net assets totaling $455,796,960 invested in a diversified portfolio of:
76.51% | Domestic Common Stocks | |
16.46% | Cash and Cash Equivalents | |
7.03% | Foreign Common Stock |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007
your Fund owned:
Technology Stocks | $ | 22.52 | |||
Cash and Cash Equivalents | $ | 16.46 | |||
Health Care Stocks | $ | 13.12 | |||
Financial Services Stocks | $ | 9.60 | |||
Retail Stocks | $ | 6.47 | |||
Consumer Nondurables Stocks | $ | 6.36 | |||
Miscellaneous Stocks | $ | 5.97 | |||
Consumer Durables Stocks | $ | 4.40 | |||
Consumer Services Stocks | $ | 3.53 | |||
Business Equipment and Services Stocks | $ | 3.38 | |||
Capital Goods Stocks | $ | 3.35 | |||
Raw Materials Stocks | $ | 2.56 | |||
Energy Stocks | $ | 2.28 |
The Investments of Ivy Capital Appreciation Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Air Transportation - 0.46% | ||||||||
AMR Corporation* | 95,000 | $ | 2,117,550 | |||||
Aircraft - 7.28% | ||||||||
Boeing Company (The) | 150,000 | 15,748,500 | ||||||
Raytheon Company | 105,000 | 6,701,100 | ||||||
Rockwell Collins, Inc. | 115,000 | 8,399,600 | ||||||
United Technologies Corporation | 29,000 | 2,333,920 | ||||||
33,183,120 | ||||||||
Apparel - 1.35% | ||||||||
Coach, Inc.* | 130,000 | 6,145,100 | ||||||
Banks - 0.89% | ||||||||
Bank of America Corporation | 25,000 | 1,256,750 | ||||||
Citigroup Inc. | 60,000 | 2,800,200 | ||||||
4,056,950 | ||||||||
Beverages - 2.22% | ||||||||
Coca-Cola Company (The) | 60,000 | 3,448,200 | ||||||
Hansen Natural Corporation* | 72,500 | 4,113,650 | ||||||
PepsiCo, Inc. | 35,000 | 2,564,100 | ||||||
10,125,950 | ||||||||
Broadcasting - 1.01% | ||||||||
Comcast Corporation, Class A* | 190,000 | 4,592,300 | ||||||
Capital Equipment - 0.98% | ||||||||
Illinois Tool Works Inc. | 75,000 | 4,473,000 | ||||||
Chemicals - Petroleum and Inorganic - 0.62% | ||||||||
Monsanto Company | 33,000 | 2,829,420 | ||||||
Chemicals - Specialty - 0.73% | ||||||||
Albemarle Corporation | 75,000 | 3,315,000 | ||||||
Communications Equipment - 2.91% | ||||||||
Cisco Systems, Inc.* | 305,000 | 10,103,125 | ||||||
QUALCOMM Incorporated | 75,000 | 3,168,750 | ||||||
13,271,875 | ||||||||
Computers - Main and Mini - 1.26% | ||||||||
Hewlett-Packard Company | 115,000 | 5,725,850 | ||||||
Computers - Micro - 3.84% | ||||||||
Apple Inc.* | 87,000 | 13,353,195 | ||||||
Dell Inc.* | 150,000 | 4,139,250 | ||||||
17,492,445 | ||||||||
Computers - Peripherals - 2.84% | ||||||||
Adobe Systems Incorporated* | 145,000 | 6,332,150 | ||||||
Microsoft Corporation | 225,000 | 6,629,625 | ||||||
12,961,775 | ||||||||
Consumer Electronics - 3.46% | ||||||||
Research In Motion Limited* | 160,000 | 15,764,800 | ||||||
Defense - 2.80% | ||||||||
DRS Technologies, Inc. | 25,000 | 1,378,000 | ||||||
General Dynamics Corporation | 135,000 | 11,403,450 | ||||||
12,781,450 | ||||||||
Electronic Components - 1.59% | ||||||||
Intel Corporation | 110,000 | 2,845,150 | ||||||
Texas Instruments Incorporated | 120,000 | 4,390,800 | ||||||
7,235,950 | ||||||||
Finance Companies - 1.24% | ||||||||
Blackstone Group L.P. (The)* | 120,000 | 3,009,600 | ||||||
Freddie Mac | 45,000 | 2,655,450 | ||||||
5,665,050 | ||||||||
Food and Related - 0.92% | ||||||||
Wm. Wrigley Jr. Company | 65,600 | 4,213,488 | ||||||
Health Care - Drugs - 11.03% | ||||||||
Abbott Laboratories | 117,000 | 6,273,540 | ||||||
BioMarin Pharmaceutical Inc.* | 100,000 | 2,488,500 | ||||||
Genentech, Inc.* | 80,000 | 6,241,600 | ||||||
Gilead Sciences, Inc.* | 300,000 | 12,256,500 | ||||||
Merck & Co., Inc. | 110,000 | 5,685,900 | ||||||
Schering-Plough Corporation | 185,000 | 5,851,550 | ||||||
Shire Pharmaceuticals Group plc, ADR | 155,000 | 11,461,475 | ||||||
50,259,065 | ||||||||
Health Care - General - 1.85% | ||||||||
Hologic, Inc.* | 100,000 | 6,097,000 | ||||||
TomoTherapy Incorporated* | 100,000 | 2,317,500 | ||||||
8,414,500 | ||||||||
Hospital Supply and Management - 0.24% | ||||||||
HMS Holdings Corp.* | 44,981 | 1,104,734 | ||||||
Hotels and Gaming - 2.05% | ||||||||
Las Vegas Sands, Inc.* | 70,000 | 9,339,400 | ||||||
Household - General Products - 1.87% | ||||||||
Colgate-Palmolive Company | 70,000 | 4,992,400 | ||||||
Procter & Gamble Company (The) | 50,000 | 3,517,000 | ||||||
8,509,400 | ||||||||
Insurance - Property and Casualty - 0.88% | ||||||||
Ambac Financial Group, Inc. | 57,000 | 3,585,870 | ||||||
Oaktree Capital Group, LLC, Class A Units (A)* | 12,000 | 441,000 | ||||||
4,026,870 | ||||||||
Leisure Time Industry - 0.47% | ||||||||
Force Protection, Inc.* | 100,000 | 2,167,000 | ||||||
Metal Fabrication - 2.37% | ||||||||
Precision Castparts Corp. | 73,000 | 10,802,540 | ||||||
Motor Vehicles - 0.94% | ||||||||
Harley-Davidson, Inc. | 35,000 | 1,617,350 | ||||||
Honda Motor Co., Ltd., ADR | 80,000 | 2,668,800 | ||||||
4,286,150 | ||||||||
Multiple Industry - 1.83% | ||||||||
Altria Group, Inc. | 120,000 | 8,343,600 | ||||||
Petroleum - Internationals - 0.82% | ||||||||
Anadarko Petroleum Corporation | 12,000 | 645,000 | ||||||
Apache Corporation | 26,000 | 2,341,560 | ||||||
Chesapeake Energy Corporation | 21,000 | 740,460 | ||||||
3,727,020 | ||||||||
Petroleum - Services - 1.46% | ||||||||
Baker Hughes Incorporated | 30,000 | 2,711,100 | ||||||
Nabors Industries Ltd.* | 11,000 | 338,470 | ||||||
Schlumberger Limited | 17,000 | 1,785,000 | ||||||
Transocean Inc.* | 16,000 | 1,808,800 | ||||||
6,643,370 | ||||||||
Railroad - 1.70% | ||||||||
Burlington Northern Santa Fe Corporation | 40,000 | 3,246,800 | ||||||
Union Pacific Corporation | 40,000 | 4,522,400 | ||||||
7,769,200 | ||||||||
Restaurants - 1.98% | ||||||||
Panera Bread Company, Class A* | 55,000 | 2,243,725 | ||||||
YUM! Brands, Inc. | 200,000 | 6,766,000 | ||||||
9,009,725 | ||||||||
Retail - General Merchandise - 3.83% | ||||||||
Costco Wholesale Corporation | 105,000 | 6,448,050 | ||||||
Kohl's Corporation* | 120,000 | 6,879,600 | ||||||
Target Corporation | 65,000 | 4,132,050 | ||||||
17,459,700 | ||||||||
Retail - Specialty Stores - 0.66% | ||||||||
Best Buy Co., Inc. | 44,000 | 2,024,880 | ||||||
Home Depot, Inc. (The) | 30,000 | 973,200 | ||||||
2,998,080 | ||||||||
Security and Commodity Brokers - 6.59% | ||||||||
CME Group Inc. | 19,000 | 11,159,650 | ||||||
Goldman Sachs Group, Inc. (The) | 21,000 | 4,551,540 | ||||||
Merrill Lynch & Co., Inc. | 75,000 | 5,346,000 | ||||||
NYMEX Holdings, Inc. | 34,000 | 4,426,120 | ||||||
Prudential Financial, Inc. | 28,000 | 2,732,240 | ||||||
UBS AG | 34,000 | 1,810,500 | ||||||
30,026,050 | ||||||||
Steel - 1.21% | ||||||||
Allegheny Technologies Incorporated | 50,000 | 5,497,500 | ||||||
Timesharing and Software - 3.38% | ||||||||
F5 Networks, Inc.* | 125,000 | 4,645,625 | ||||||
Google Inc., Class A* | 19,000 | 10,782,215 | ||||||
15,427,840 | ||||||||
Utilities - Telephone - 1.98% | ||||||||
AT&T Inc. | 48,000 | 2,030,880 | ||||||
NII Holdings, Inc.* | 85,000 | 6,975,950 | ||||||
9,006,830 | ||||||||
TOTAL COMMON STOCKS - 83.54% | $ | 380,769,647 | ||||||
(Cost: $341,841,862) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Capital Equipment - 0.55% | ||||||||
Deere (John) Capital Corporation, | ||||||||
5.07%, 10-19-07 | $ | 2,500 | 2,493,662 | |||||
Electrical Equipment - 1.09% | ||||||||
W.W. Grainger, Inc., | ||||||||
4.78%, 10-24-07 | 5,000 | 4,984,731 | ||||||
Finance Companies - 2.38% | ||||||||
BP Capital Markets p.l.c., | ||||||||
4.76%, 10-15-07 | 3,000 | 2,994,447 | ||||||
Prudential Funding LLC, | ||||||||
5.15%, 10-11-07 | 4,000 | 3,994,278 | ||||||
Toyota Motor Credit Corporation, | ||||||||
4.78%, 11-16-07 | 3,900 | 3,876,180 | ||||||
10,864,905 |
Food and Related - 1.09% | ||||||||
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.), | ||||||||
5.4%, 10-12-07 | 3,000 | 2,995,050 | ||||||
Hershey Company (The), | ||||||||
5.3%, 10-15-07 | 2,000 | 1,995,878 | ||||||
4,990,928 | ||||||||
Health Care - Drugs - 0.25% | ||||||||
Abbott Laboratories, | ||||||||
4.99%, 10-23-07 | 1,131 | 1,127,551 | ||||||
Health Care - General - 1.09% | ||||||||
Johnson & Johnson, | ||||||||
4.72%, 11-20-07 | 5,000 | 4,967,222 | ||||||
Household - General Products - 0.61% | ||||||||
Clorox Co., | ||||||||
5.8%, 10-22-07 | 1,376 | 1,371,344 | ||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | ||||||||
4.8%, 10-17-07 | 1,393 | 1,390,028 | ||||||
2,761,372 | ||||||||
Leisure Time Industry - 0.66% | ||||||||
Walt Disney Company (The), | ||||||||
5.2%, 10-11-07 | 3,000 | 2,995,667 | ||||||
Mining - 0.88% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | ||||||||
5.0%, 10-1-07 | 4,000 | 4,000,000 | ||||||
Multiple Industry - 1.31% | ||||||||
Honeywell International Inc., | ||||||||
4.76%, 11-21-07 | 6,000 | 5,959,540 | ||||||
Publishing - 1.38% | ||||||||
Gannett Co., Inc.: | ||||||||
5.8%, 10-5-07 | 3,000 | 2,998,067 | ||||||
5.35%, 10-25-07 | 3,320 | 3,308,159 | ||||||
6,306,226 | ||||||||
Restaurants - 1.80% | ||||||||
Starbucks Corporation: | ||||||||
5.5%, 10-1-07 | 4,722 | 4,722,000 | ||||||
5.4%, 10-9-07 | 3,500 | 3,495,800 | ||||||
8,217,800 | ||||||||
Utilities - Electric - 1.61% | ||||||||
Detroit Edison Co., | ||||||||
5.55%, 10-11-07 | 1,500 | 1,497,687 | ||||||
PacifiCorp, | ||||||||
5.32%, 10-1-07 | 5,839 | 5,839,000 | ||||||
7,336,687 | ||||||||
Utilities - Gas and Pipeline - 0.44% | ||||||||
Michigan Consolidated Gas Co., | ||||||||
5.275%, 10-10-07 | 2,000 | 1,997,362 | ||||||
TOTAL SHORT-TERM SECURITIES - 15.14% | $ | 69,003,653 | ||||||
(Cost: $69,003,653) | ||||||||
TOTAL INVESTMENT SECURITIES - 98.68% | $ | 449,773,300 | ||||||
(Cost: $410,845,515) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.32% | 6,023,660 | |||||||
NET ASSETS - 100.00% | $ | 455,796,960 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be illiquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of this security amounted to 0.10% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY CAPITAL APPRECIATION FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $410,846) (Notes 1 and 3) | $ | 449,773 | ||
Receivables: | ||||
Fund shares sold | 11,153 | |||
Dividends and interest | 232 | |||
Prepaid and other assets | 57 | |||
Total assets | 461,215 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 4,731 | |||
Payable to Fund shareholders | 316 | |||
Due to custodian | 245 | |||
Accrued shareholder servicing (Note 2) | 51 | |||
Accrued management fee (Note 2) | 24 | |||
Accrued distribution and service fees (Note 2) | 14 | |||
Accrued accounting services fee (Note 2) | 11 | |||
Other | 26 | |||
Total liabilities | 5,418 | |||
Total net assets | $ | 455,797 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 394 | ||
Additional paid-in capital | 413,073 | |||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 14 | |||
Accumulated undistributed net realized gain on investment transactions | 3,388 | |||
Net unrealized appreciation in value of investments | 38,928 | |||
Net assets applicable to outstanding units of capital | $ | 455,797 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.69 | |||
Class B | $10.87 | |||
Class C | $10.91 | |||
Class E | $11.69 | |||
Class I | $11.73 | |||
Class Y | $11.71 | |||
Capital shares outstanding: | ||||
Class A | 27,614 | |||
Class B | 905 | |||
Class C | 5,728 | |||
Class E | 47 | |||
Class I | 993 | |||
Class Y | 4,142 | |||
Capital shares authorized | 300,000 |
See Notes to Financial Statements.
Statement of Operations
IVY CAPITAL APPRECIATION FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $8) | $ | 898 | ||
Interest and amortization | 563 | |||
Total income | 1,461 | |||
Expenses (Note 2): | ||||
Investment management fee | 706 | |||
Service fee: | ||||
Class A | 198 | |||
Class B | 7 | |||
Class C | 37 | |||
Shareholder servicing: | ||||
Class A | 134 | |||
Class B | 13 | |||
Class C | 22 | |||
Class E | 1 | |||
Class I | 2 | |||
Class Y | 22 | |||
Distribution fee: | ||||
Class B | 21 | |||
Class C | 111 | |||
Class E | –– | * | ||
Class Y | 33 | |||
Accounting services fee | 44 | |||
Registration fees | 44 | |||
Audit fees | 14 | |||
Custodian fees | 10 | |||
Legal fees | 1 | |||
Other | 25 | |||
Total | 1,445 | |||
Less voluntary waiver of expenses (Note 2) | (1 | ) | ||
Total expenses | 1,444 | |||
Net investment income | 17 | |||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 2,951 | |||
Unrealized appreciation in value of investments during the period | 30,563 | |||
Net gain on investments | 33,514 | |||
Net increase in net assets resulting from operations | $ | 33,531 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY CAPITAL APPRECIATION FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 17 | $ | (62 | ) | |||
Realized net gain on investments | 2,951 | 2,819 | ||||||
Unrealized appreciation | 30,563 | 2,554 | ||||||
Net increase in net assets resulting from operations | 33,531 | 5,311 | ||||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
(–– | ) | (–– | ) | |||||
Capital share transactions (Note 5) | 338,856 | 32,542 | ||||||
Total increase | 372,387 | 37,853 | ||||||
NET ASSETS | ||||||||
Beginning of period | 83,410 | 45,557 | ||||||
End of period | $ | 455,797 | $ | 83,410 | ||||
Undistributed net investment income (loss) | $ | 14 | $ | (3 | ) | |||
(1)See "Financial Highlights" on pages 52 - 57.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND(1)
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.09 | $ | 9.16 | $ | 7.99 | $ | 7.52 | $ | 5.73 | $ | 6.43 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.01 | (2) | 0.00 | (2) | (0.03 | )(2) | (0.02 | ) | (0.06 | ) | (0.03 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 1.59 | (2) | 0.93 | (2) | 1.20 | (2) | 0.49 | 1.85 | (0.67 | ) | ||||||||||
Total from investment operations | 1.60 | 0.93 | 1.17 | 0.47 | 1.79 | (0.70 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 11.69 | $ | 10.09 | $ | 9.16 | $ | 7.99 | $ | 7.52 | $ | 5.73 | ||||||||
Total return(3) | 15.86 | % | 10.15 | % | 14.64 | % | 6.25 | % | 31.24 | % | - -10.89 | % | ||||||||
Net assets, end of period (in millions) | $323 | $58 | $36 | $11 | $6 | $4 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.18 | %(4) | 1.35 | % | 1.30 | % | 1.19 | % | 1.47 | % | 1.50 | % | ||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.14 | %(4) | 0.05 | % | - -0.29 | % | 0.03 | % | - -1.05 | % | - -0.67 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.18 | %(4)(5) | 1.40 | % | 1.55 | % | 1.84 | % | 2.12 | % | 2.15 | % | ||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 0.14 | %(4)(5) | 0.00 | %* | - -0.54 | % | - -0.62 | % | - -1.70 | % | - -1.32 | % | ||||||||
Portfolio turnover rate | 34 | % | 95 | % | 60 | % | 62 | % | 115 | % | 145 | % |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND(1)
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.43 | $ | 8.65 | $ | 7.62 | $ | 7.26 | $ | 5.58 | $ | 6.31 | |||||||||
Income (loss) from investment operations: | )(2) | ||||||||||||||||||||
Net investment loss | (0.05 | (0.09 | )(2) | (0.11 | )(2) | (0.01 | ) | (0.09 | ) | (0.11 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 1.49 | (2) | 0.87 | (2) | 1.14 | (2) | 0.37 | 1.77 | (0.62 | ) | |||||||||||
Total from investment operations | 1.44 | 0.78 | 1.03 | 0.36 | 1.68 | (0.73 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 10.87 | $ | 9.43 | $ | 8.65 | $ | 7.62 | $ | 7.26 | $ | 5.58 | |||||||||
Total return | 15.27 | % | 9.02 | % | 13.52 | % | 4.96 | % | 30.11 | % | - -11.57 | % | |||||||||
Net assets, end of period (in thousands) | $9,835 | $3,654 | $2,173 | $1,068 | $538 | $247 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.24 | %(3) | 2.47 | % | 2.31 | % | 2.03 | % | 2.28 | % | 2.47 | % | |||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.93 | %(3) | - -1.07 | % | - -1.30 | % | - -0.81 | % | - -1.87 | % | - -1.63 | % | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.24 | %(3)(4) | 2.51 | % | 2.56 | % | 2.68 | % | 2.93 | % | 3.12 | % | |||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.93 | %(3)(4) | - -1.11 | % | - -1.55 | % | - -1.46 | % | - -2.52 | % | - -2.28 | % | |||||||||
Portfolio turnover rate | 34 | % | 95 | % | 60 | % | 62 | % | 115 | % | 145 | % |
(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND(1)
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Net asset value, beginning of period | $ | 9.45 | $ | 8.64 | $ | 7.60 | $ | 7.24 | $ | 5.57 | $ | 6.32 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||
Net investment income (loss) | (0.03 | )(2) | (0.07 | )(2) | (0.09 | )(2) | 0.03 | (0.11 | ) | (0.12 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 1.49 | (2) | 0.88 | (2) | 1.13 | (2) | 0.33 | 1.78 | (0.63 | ) | ||||||||||||
Total from investment operations | 1.46 | 0.81 | 1.04 | 0.36 | 1.67 | (0.75 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||
Net asset value end of period | $ | 10.91 | $ | 9.45 | $ | 8.64 | $ | 7.60 | $ | 7.24 | $ | 5.57 | ||||||||||
Total return | 15.45 | % | 9.38 | % | 13.68 | % | 4.97 | % | 29.98 | % | - -11.87 | % | ||||||||||
Net assets, end of period (in millions) | $62 | $11 | $7 | $2 | $1 | $1 | ||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.90 | %(3) | 2.14 | % | 2.07 | % | 2.15 | % | 2.46 | % | 2.64 | % | ||||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.58 | %(3) | - -0.75 | % | - -1.05 | % | - -0.96 | % | - -2.05 | % | - -1.81 | % | ||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.90 | %(3)(4) | 2.18 | % | 2.32 | % | 2.80 | % | 3.11 | % | 3.29 | % | ||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.58 | %(3)(4) | - -0.79 | % | - -1.30 | % | - -1.61 | % | - -2.70 | % | - -2.46 | % | ||||||||||
Portfolio turnover rate | 34 | % | 95 | % | 60 | % | 62 | % | 115 | % | 145 | % |
(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 10.09 | |||
Income from investment operations: | |||||
Net investment income | 0.00 | (2)* | |||
Net realized and unrealized gain on investments | 1.60 | (2) | |||
Total from investment operations | 1.60 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.69 | |||
Total return(3) | 15.51 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.35 | %(4) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.02 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.81 | %(4) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.48 | %(4) | |||
Portfolio turnover rate | 34 | %(5) |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 10.11 | |||
Income from investment operations: | |||||
Net investment income | 0.03 | (2) | |||
Net realized and unrealized gain on investments | 1.59 | (2) | |||
Total from investment operations | 1.62 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.73 | |||
Total return | 15.68 | % | |||
Net assets, end of period (in millions) | $12 | ||||
Ratio of expenses to average net assets | 1.08 | %(3) | |||
Ratio of net investment income to average net assets | 0.48 | %(3) | |||
Portfolio turnover rate | 34 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CAPITAL APPRECIATION FUND(1)
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | For the period from 9-15-04(2) to | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 3-31-05 | |||||||||||||
Net asset value, beginning of period | $ | 10.10 | $ | 9.16 | $ | 7.99 | $ | 7.33 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||
Net investment income (loss) | 0.01 | (3) | 0.01 | (3) | (0.02 | )(3) | 0.03 | |||||||||
Net realized and unrealized gain on investments | 1.60 | (3) | 0.93 | (3) | 1.19 | (3) | 0.63 | |||||||||
Total from investment operations | 1.61 | 0.94 | 1.17 | 0.66 | ||||||||||||
Less distributions from: | ||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 11.71 | $ | 10.10 | $ | 9.16 | $ | 7.99 | ||||||||
Total return | 15.83 | % | 10.37 | % | 14.64 | % | 9.00 | % | ||||||||
Net assets, end of period (in thousands) | $48,513 | $10,049 | $798 | $108 | ||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.17 | %(4) | 1.27 | % | 1.20 | % | 1.11 | %(4) | ||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.14 | %(4) | 0.16 | % | - -0.23 | % | 0.47 | %(4) | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.17 | %(4)(5) | 1.31 | % | 1.45 | % | 1.76 | %(4) | ||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 0.14 | %(4)(5) | 0.12 | % | - -0.48 | % | - -0.18 | %(4) | ||||||||
Portfolio turnover rate | 34 | % | 95 | % | 60 | % | 62 | %(6) |
(1)Capital Appreciation Fund (formerly Tax-Managed Equity Fund) changed its name effective March 31, 2005.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY CORE EQUITY FUND
Portfolio Highlights
On September 30, 2007, Ivy Core Equity Fund had net assets totaling $279,686,180 invested in a diversified portfolio of:
94.15% | Domestic Common Stocks | |
4.34% | Foreign Common Stocks | |
1.51% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Technology Stocks | $ | 30.55 | |||
Financial Services Stocks | $ | 12.20 | |||
Energy Stocks | $ | 9.96 | |||
Capital Goods Stocks | $ | 8.75 | |||
Health Care Stocks | $ | 6.94 | |||
Consumer Nondurables Stocks | $ | 6.75 | |||
Raw Materials Stocks | $ | 6.37 | |||
Retail Stocks | $ | 4.80 | |||
Utilities Stocks | $ | 3.65 | |||
Consumer Durables Stocks | $ | 2.71 | |||
Transportation Stocks | $ | 2.32 | |||
Multi Industry Stocks | $ | 2.16 | |||
Cash and Cash Equivalents | $ | 1.51 | |||
Consumer Services Stocks | $ | 1.33 |
The Investments of Ivy Core Equity Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Aircraft - 5.78% | ||||||||
Boeing Company (The) | 127,200 | $ | 13,354,728 | |||||
Raytheon Company | 44,200 | 2,820,844 | ||||||
16,175,572 | ||||||||
Apparel - 0.98% | ||||||||
NIKE, Inc., Class B | 46,900 | 2,751,154 | ||||||
Beverages - 4.67% | ||||||||
Coca-Cola Company (The) | 130,600 | 7,505,582 | ||||||
PepsiCo, Inc. | 75,666 | 5,543,291 | ||||||
13,048,873 | ||||||||
Capital Equipment - 5.96% | ||||||||
Deere & Company | 93,511 | 13,878,903 | ||||||
Foster Wheeler Ltd.* | 21,200 | 2,782,182 | ||||||
16,661,085 | ||||||||
Chemicals - Petroleum and Inorganic - 3.96% | ||||||||
E.I. du Pont de Nemours and Company | 75,300 | 3,731,868 | ||||||
Monsanto Company | 85,600 | 7,339,344 | ||||||
11,071,212 | ||||||||
Chemicals - Specialty - 2.41% | ||||||||
Air Products and Chemicals, Inc. | 69,059 | 6,751,208 | ||||||
Communications Equipment - 3.89% | ||||||||
Cisco Systems, Inc.* | 215,400 | 7,135,125 | ||||||
Nokia Corporation, Series A, ADR | 98,800 | 3,747,484 | ||||||
10,882,609 | ||||||||
Computers - Main and Mini - 5.57% | ||||||||
Hewlett-Packard Company | 204,300 | 10,172,097 | ||||||
Xerox Corporation* | 311,100 | 5,394,474 | ||||||
15,566,571 | ||||||||
Computers - Micro - 3.15% | ||||||||
Apple Inc.* | 40,400 | 6,200,794 | ||||||
Dell Inc.* | 94,500 | 2,607,727 | ||||||
8,808,521 | ||||||||
Computers - Peripherals - 2.83% | ||||||||
Adobe Systems Incorporated* | 181,100 | 7,908,637 | ||||||
Defense - 4.25% | ||||||||
General Dynamics Corporation | 140,900 | 11,901,823 | ||||||
Electronic Components - 4.09% | ||||||||
Intel Corporation | 212,000 | 5,483,380 | ||||||
SanDisk Corporation* | 108,200 | 5,967,230 | ||||||
11,450,610 | ||||||||
Electronic Instruments - 0.99% | ||||||||
Thermo Fisher Scientific Inc.* | 47,900 | 2,764,788 | ||||||
Finance Companies - 3.42% | ||||||||
Fannie Mae | 157,100 | 9,553,251 | ||||||
Food and Related - 1.10% | ||||||||
Wm. Wrigley Jr. Company | 47,800 | 3,070,194 | ||||||
Health Care - Drugs - 6.94% | ||||||||
Abbott Laboratories | 184,100 | 9,871,442 | ||||||
Merck & Co., Inc. | 104,000 | 5,375,760 | ||||||
Schering-Plough Corporation | 131,400 | 4,156,182 | ||||||
19,403,384 | ||||||||
Hotels and Gaming - 1.33% | ||||||||
Las Vegas Sands, Inc.* | 27,800 | 3,709,076 | ||||||
Insurance Property and Casualty - 1.52% | ||||||||
Ambac Financial Group, Inc. | 67,600 | 4,252,716 | ||||||
Metal Fabrication - 0.76% | ||||||||
Loews Corporation, Carolina Group | 26,000 | 2,137,980 | ||||||
Motor Vehicles - 2.71% | ||||||||
Ford Motor Company* | 893,400 | 7,584,966 | ||||||
Multiple Industry - 2.16% | ||||||||
Altria Group, Inc. | 86,800 | 6,035,204 | ||||||
Non-Residential Construction - 2.03% | ||||||||
Fluor Corporation | 39,500 | 5,687,210 | ||||||
Petroleum - International - 3.24% | ||||||||
Exxon Mobil Corporation | 97,779 | 9,050,424 | ||||||
Petroleum - Services - 6.72% | ||||||||
Schlumberger Limited | 60,076 | 6,307,980 | ||||||
Smith International, Inc. | 44,000 | 3,141,600 | ||||||
Transocean Inc.* | 33,200 | 3,753,260 | ||||||
Weatherford International Ltd.* | 83,400 | 5,602,812 | ||||||
18,805,652 | ||||||||
Railroad - 2.32% | ||||||||
Union Pacific Corporation | 57,500 | 6,500,950 | ||||||
Restaurants - 2.03% | ||||||||
McDonald's Corporation | 58,400 | 3,181,048 | ||||||
YUM! Brands, Inc. | 74,200 | 2,510,186 | ||||||
5,691,234 | ||||||||
Retail - General Merchandise - 1.00% | ||||||||
Target Corporation | 43,900 | 2,790,723 | ||||||
Retail - Specialty Stores - 1.77% | ||||||||
Tiffany & Co. | 94,500 | 4,947,075 | ||||||
Security and Commodity Brokers - 7.26% | ||||||||
Charles Schwab Corporation (The) | 387,400 | 8,375,588 | ||||||
J.P. Morgan Chase & Co. | 96,900 | 4,439,958 | ||||||
Prudential Financial, Inc. | 76,800 | 7,494,144 | ||||||
20,309,690 | ||||||||
Utilities - Electric - 2.36% | ||||||||
Mirant Corporation* | 162,200 | 6,598,296 | ||||||
Utilities - Telephone - 1.29% | ||||||||
Verizon Communications Inc. | 81,300 | 3,599,964 | ||||||
TOTAL COMMON STOCKS - 98.49% | $ | 275,470,652 | ||||||
(Cost: $207,925,450) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Household - General Products - 0.36% | ||||||||
Fortune Brands Inc., | ||||||||
5.55%, 10-1-07 | $ | 1,016 | 1,016,000 | |||||
Publishing - 0.89% | ||||||||
Gannett Co., Inc., | ||||||||
5.45%, 10-16-07 | 2,500 | 2,494,323 | ||||||
Utilities - Electric - 0.54% | ||||||||
Detroit Edison Co., | ||||||||
5.55%, 10-11-07 | 1,500 | 1,497,688 | ||||||
TOTAL SHORT-TERM SECURITIES - 1.79% | $ | 5,008,011 | ||||||
(Cost: $5,008,011) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.28% | $ | 280,478,663 | ||||||
(Cost: $212,933,461) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.28%) | (792,483 | ) | ||||||
NET ASSETS - 100.00% | $ | 279,686,180 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY CORE EQUITY FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $212,933) (Notes 1 and 3) | $ | 280,479 | ||
Receivables: | ||||
Investment securities sold | 1,227 | |||
Dividends and interest | 374 | |||
Fund shares sold | 115 | |||
Prepaid and other assets | 37 | |||
Total assets | 282,232 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 1,649 | |||
Payable to Fund shareholders | 666 | |||
Accrued shareholder servicing (Note 2) | 80 | |||
Due to custodian | 20 | |||
Accrued management fee (Note 2) | 16 | |||
Accrued distribution fee (Note 2) | 11 | |||
Accrued accounting services fee (Note 2) | 8 | |||
Accrued service fee (Note 2) | 5 | |||
Other | 91 | |||
Total liabilities | 2,546 | |||
Total net assets | $ | 279,686 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 25 | ||
Additional paid-in capital | 196,317 | |||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment income | 339 | |||
Accumulated undistributed net realized gain on investment transactions | 15,457 | |||
Net unrealized appreciation in value of investments | 67,548 | |||
Net assets applicable to outstanding units of capital | $ | 279,686 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.44 | |||
Class B | $10.61 | |||
Class C | $10.73 | |||
Class E | $11.46 | |||
Class I | $12.13 | |||
Class Y | $11.98 | |||
Capital shares outstanding: | ||||
Class A | 8,588 | |||
Class B | 1,066 | |||
Class C | 15,589 | |||
Class E | 42 | |||
Class I | 21 | |||
Class Y | 182 | |||
Capital shares authorized | 400,000 |
See Notes to Financial Statements.
Statement of Operations
IVY CORE EQUITY FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $34) | $ | 2,774 | ||
Interest and amortization | 143 | |||
Total income | 2,917 | |||
Expenses (Note 2): | ||||
Investment management fee | 941 | |||
Distribution fee: | ||||
Class B | 41 | |||
Class C | 617 | |||
Class E | –– | * | ||
Class Y | 2 | |||
Shareholder servicing: | ||||
Class A | 129 | |||
Class B | 24 | |||
Class C | 240 | |||
Class E | 1 | |||
Class I | –– | * | ||
Class Y | 2 | |||
Service fee: | ||||
Class A | 113 | |||
Class B | 14 | |||
Class C | 206 | |||
Accounting services fee | 49 | |||
Audit fees | 20 | |||
Custodian fees | 7 | |||
Legal fees | 2 | |||
Other | 101 | |||
Total expenses | 2,509 | |||
Net investment income | 408 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 5,678 | |||
Realized net loss on foreign currency transactions | (2 | ) | ||
Realized net gain on investments | 5,676 | |||
Unrealized appreciation in value of investments during the period | 28,482 | |||
Net gain on investments | 34,158 | |||
Net increase in net assets resulting from operations | $ | 34,566 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY CORE EQUITY FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 408 | $ | (823 | ) | |||
Realized net gain on investments | 5,676 | 35,684 | ||||||
Unrealized appreciation (depreciation) | 28,482 | (15,215 | ) | |||||
Net increase in net assets resulting from operations | 34,566 | 19,646 | ||||||
Distributions to shareholders from (Note 1F):(1) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (7,910 | ) | ||||
Class B | (–– | ) | (1,144 | ) | ||||
Class C | (–– | ) | (17,672 | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (147 | ) | ||||
(–– | ) | (26,873 | ) | |||||
Capital share transactions (Note 5) | (10,433 | ) | 2,844 | |||||
Total increase (decrease) | 24,133 | (4,383 | ) | |||||
NET ASSETS | ||||||||
Beginning of period | 255,553 | 259,936 | ||||||
End of period | $ | 279,686 | $ | 255,553 | ||||
Undistributed net investment income (loss) | $ | 339 | $ | (67 | ) | |||
(1)See "Financial Highlights" on pages 68 - 71.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.03 | $ | 10.24 | $ | 9.03 | $ | 8.08 | $ | 6.63 | $ | 8.89 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.03 | (0.00 | ) | (0.00 | ) | 0.02 | 0.01 | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 1.38 | 0.88 | 1.21 | 0.93 | 1.44 | (2.18 | ) | |||||||||||||
Total from investment operations | 1.41 | 0.88 | 1.21 | 0.95 | 1.45 | (2.26 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 11.44 | $ | 10.03 | $ | 10.24 | $ | 9.03 | $ | 8.08 | $ | 6.63 | ||||||||
Total return(1) | 14.06 | % | 8.54 | % | 13.40 | % | 11.76 | % | 21.87 | % | - -25.42 | % | ||||||||
Net assets, end of period (in millions) | $98 | $83 | $74 | $65 | $75 | $13 | ||||||||||||||
Ratio of expenses to average net assets | 1.37 | %(2) | 1.37 | % | 1.42 | % | 1.50 | % | 1.46 | % | 1.31 | % | ||||||||
Ratio of net investment income (loss) to average net assets | 0.78 | %(2) | 0.21 | % | - -0.03 | % | 0.07 | % | 0.24 | % | 0.28 | % | ||||||||
Portfolio turnover rate | 44 | % | 114 | % | 79 | % | 42 | % | 59 | % | 39 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.34 | $ | 9.70 | $ | 8.63 | $ | 7.78 | $ | 6.45 | $ | 8.74 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.07 | ) | (0.10 | ) | (0.07 | ) | (0.05 | ) | (0.06 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.28 | 0.80 | 1.17 | 0.92 | 1.38 | (2.23 | ) | ||||||||||||||
Total from investment operations | 1.27 | 0.73 | 1.07 | 0.85 | 1.33 | (2.29 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 10.61 | $ | 9.34 | $ | 9.70 | $ | 8.63 | $ | 7.78 | $ | 6.45 | |||||||||
Total return | 13.60 | % | 7.45 | % | 12.40 | % | 10.93 | % | 20.62 | % | - -26.20 | % | |||||||||
Net assets, end of period (in millions) | $11 | $11 | $11 | $12 | $12 | $5 | |||||||||||||||
Ratio of expenses to average net assets | 2.27 | %(1) | 2.29 | % | 2.32 | % | 2.36 | % | 2.42 | % | 2.36 | % | |||||||||
Ratio of net investment loss to average net assets | - -0.11 | %(1) | - -0.71 | % | - -0.94 | % | - -0.77 | % | - -0.66 | % | - -0.76 | % | |||||||||
Portfolio turnover rate | 44 | % | 114 | % | 79 | % | 42 | % | 59 | % | 39 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 9.44 | $ | 9.77 | $ | 8.68 | $ | 7.82 | $ | 6.48 | $ | 8.76 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.06 | ) | (0.09 | ) | (0.06 | ) | (0.04 | ) | (0.04 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.30 | 0.82 | 1.18 | 0.92 | 1.38 | (2.24 | ) | ||||||||||||||
Total from investment operations | 1.29 | 0.76 | 1.09 | 0.86 | 1.34 | (2.28 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 10.73 | $ | 9.44 | $ | 9.77 | $ | 8.68 | $ | 7.82 | $ | 6.48 | |||||||||
Total return | 13.67 | % | 7.71 | % | 12.56 | % | 11.00 | % | 20.68 | % | - -26.03 | % | |||||||||
Net assets, end of period (in millions) | $168 | $159 | $173 | $183 | $200 | $200 | |||||||||||||||
Ratio of expenses to average net assets | 2.12 | %(1) | 2.13 | % | 2.17 | % | 2.22 | % | 2.27 | % | 2.18 | % | |||||||||
Ratio of net investment income (loss) to average net assets | 0.06 | %(1) | - -0.55 | % | - -0.79 | % | - -0.63 | % | - -0.45 | % | - -0.58 | % | |||||||||
Portfolio turnover rate | 44 | % | 114 | % | 79 | % | 42 | % | 59 | % | 39 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 10.03 | |||
Income from investment operations: | |||||
Net investment income | 0.03 | (2) | |||
Net realized and unrealized gain on investments | 1.40 | (2) | |||
Total from investment operations | 1.43 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 11.46 | |||
Total return(3) | 14.03 | % | |||
Net assets, end of period (in thousands) | $486 | ||||
Ratio of expenses to average net assets | 1.58 | %(4) | |||
Ratio of net investment income to average net assets | 0.17 | %(4) | |||
Portfolio turnover rate | 44 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 10.49 | |||
Income from investment operations: | |||||
Net investment income | 0.11 | (2) | |||
Net realized and unrealized gain on investments | 1.53 | (2) | |||
Total from investment operations | 1.64 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 12.13 | |||
Total return | 15.30 | % | |||
Net assets, end of period (in thousands) | $255 | ||||
Ratio of expenses to average net assets | 1.03 | %(3) | |||
Ratio of net investment income to average net assets | 1.14 | %(3) | |||
Portfolio turnover rate | 44 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY CORE EQUITY FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 10.49 | $ | 10.65 | $ | 9.38 | $ | 8.37 | $ | 6.86 | $ | 9.19 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.07 | (1) | 0.04 | (1) | 0.09 | 0.25 | 0.05 | 0.04 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.42 | (1) | 0.89 | (1) | 1.18 | 0.76 | 1.46 | (2.37 | ) | ||||||||||||
Total from investment operations | 1.49 | 0.93 | 1.27 | 1.01 | 1.51 | (2.33 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.09 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 11.98 | $ | 10.49 | $ | 10.65 | $ | 9.38 | $ | 8.37 | $ | 6.86 | |||||||||
Total return | 14.20 | % | 8.69 | % | 13.54 | % | 12.07 | % | 22.01 | % | - -25.35 | % | |||||||||
Net assets, end of period (in millions) | $2 | $3 | $2 | $2 | $2 | $2 | |||||||||||||||
Ratio of expenses to average net assets | 1.23 | %(2) | 1.21 | % | 1.22 | % | 1.24 | % | 1.26 | % | 1.20 | % | |||||||||
Ratio of net investment income to average net assets | 1.27 | %(2) | 0.35 | % | 0.16 | % | 0.34 | % | 0.61 | % | 0.40 | % | |||||||||
Portfolio turnover rate | 44 | % | 114 | % | 79 | % | 42 | % | 59 | % | 39 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY ENERGY FUND
Portfolio Highlights
On September 30, 2007, Ivy Energy Fund had net assets totaling $21,528,208 invested in a diversified portfolio of:
71.15% | Domestic Common Stocks | |
18.51% | Foreign Common Stocks | |
10.34% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund was invested by industry and geographic regions, respectively, as follows:
Sector Weightings
Energy Stocks | $ | 62.81 | |||
Capital Goods Stocks | $ | 12.92 | |||
Cash and Cash Equivalents | $ | 10.34 | |||
Utilities Stocks | $ | 8.06 | |||
Miscellaneous Stocks | $ | 3.15 | |||
Business Equipment and Services Stocks | $ | 2.72 |
Country Weightings
North America | $ | 75.97 | |||
United States | $ | 71.15 | |||
Canada | $ | 4.82 | |||
Cash and Cash Equivalents | $ | 10.34 | |||
Bahamas/Caribbean | $ | 7.60 | |||
Bermuda | $ | 4.58 | |||
Cayman Islands | $ | 3.02 | |||
Europe (1) | $ | 3.75 | |||
Pacific Basin (2) | $ | 1.80 | |||
South America (3) | $ | 0.54 |
(1)Includes $1.36 France, $0.71 Norway and $1.68 United Kingdom.
(2)Includes $0.60 China and $1.20 Hong Kong.
(3)Includes $0.54 Brazil.
The Investments of Ivy Energy Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Business Equipment and Services - 2.72% | ||||||||
Bucyrus International, Inc., Class A | 3,300 | $ | 240,619 | |||||
Jacobs Engineering Group Inc.* | 4,550 | 343,889 | ||||||
584,508 | ||||||||
Capital Equipment - 6.68% | ||||||||
Cameron International Corporation* | 6,825 | 629,879 | ||||||
Shaw Group Inc. (The)* | 4,125 | 239,662 | ||||||
SunPower Corporation, Class A* | 4,075 | 337,145 | ||||||
Suntech Power Holdings Co., Ltd., ADR* | 5,800 | 231,420 | ||||||
1,438,106 | ||||||||
Coal - 1.90% | ||||||||
Foundation Coal Holdings, Inc. | 3,425 | 134,260 | ||||||
Peabody Energy Corporation | 5,750 | 275,252 | ||||||
409,512 | ||||||||
Electrical Equipment - 3.14% | ||||||||
First Solar, Inc.* | 5,750 | 676,372 | ||||||
Electronic Instruments - 0.37% | ||||||||
Energy Conversion Devices, Inc.* | 3,500 | 79,485 | ||||||
Mining - 1.66% | ||||||||
Arch Coal, Inc. | 5,525 | 186,413 | ||||||
Cameco Corporation | 3,700 | 171,088 | ||||||
357,501 | ||||||||
Multiple Industry - 1.12% | ||||||||
Continental Resources, Inc.* | 13,300 | 241,262 | ||||||
Non-Residential Construction - 3.10% | ||||||||
Fluor Corporation | 3,200 | 460,736 | ||||||
Technip SA, ADR | 2,325 | 206,693 | ||||||
667,429 | ||||||||
Petroleum - Canada - 1.09% | ||||||||
Suncor Energy Inc. | 2,475 | 234,655 | ||||||
Petroleum - Domestic - 4.29% | ||||||||
ENSCO International Incorporated | 4,625 | 259,462 | ||||||
Sunoco, Inc. | 2,800 | 198,184 | ||||||
Valero Energy Corporation | 3,575 | 240,169 | ||||||
XTO Energy Inc. | 3,650 | 225,716 | ||||||
923,531 | ||||||||
Petroleum - International - 28.47% | ||||||||
Anadarko Petroleum Corporation | 6,125 | 329,219 | ||||||
Apache Corporation | 6,100 | 549,366 | ||||||
BP p.l.c., ADR | 5,225 | 362,354 | ||||||
CNOOC Limited, ADR | 1,550 | 257,967 | ||||||
ConocoPhillips | 4,500 | 394,965 | ||||||
Devon Energy Corporation | 5,425 | 451,360 | ||||||
EOG Resources, Inc. | 4,700 | 339,951 | ||||||
Exxon Mobil Corporation | 7,000 | 647,920 | ||||||
Hess Corporation | 2,975 | 197,927 | ||||||
Marathon Oil Corporation | 5,850 | 333,567 | ||||||
Newfield Exploration Company* | 9,200 | 443,072 | ||||||
Noble Energy, Inc. | 6,575 | 460,513 | ||||||
Occidental Petroleum Corporation | 6,025 | 386,082 | ||||||
PetroChina Company Limited, ADR | 700 | 129,577 | ||||||
Petroleo Brasileiro S.A. - Petrobras, ADR | 1,550 | 117,025 | ||||||
Statoil ASA, ADR | 4,500 | 152,640 | ||||||
TOTAL S.A., ADR | 1,050 | 85,082 | ||||||
Talisman Energy Inc. | 15,800 | 311,260 | ||||||
Ultra Petroleum Corp.* | 2,900 | 179,916 | ||||||
6,129,763 | ||||||||
Petroleum - Services - 27.06% | ||||||||
BJ Services Company | 8,850 | 234,967 | ||||||
Baker Hughes Incorporated | 6,650 | 600,960 | ||||||
Complete Production Services, Inc.* | 13,850 | 283,648 | ||||||
FMC Technologies, Inc.* | 2,650 | 152,799 | ||||||
Grant Prideco, Inc.* | 7,450 | 406,174 | ||||||
Halliburton Company | 7,800 | 299,520 | ||||||
Hercules Offshore, Inc.* | 5,176 | 135,094 | ||||||
Nabors Industries Ltd.* | 14,550 | 447,704 | ||||||
National Oilwell Varco, Inc.* | 6,800 | 982,600 | ||||||
Schlumberger Limited | 7,775 | 816,375 | ||||||
Smith International, Inc. | 7,150 | 510,510 | ||||||
Transocean Inc.* | 3,700 | 418,285 | ||||||
Weatherford International Ltd.* | 8,000 | 537,440 | ||||||
5,826,076 | ||||||||
Utilities - Electric - 5.50% | ||||||||
Entergy Corporation | 3,825 | 414,209 | ||||||
Exelon Corporation | 4,875 | 367,380 | ||||||
Mirant Corporation* | 4,100 | 166,788 | ||||||
NRG Energy, Inc.* | 5,550 | 234,709 | ||||||
1,183,086 | ||||||||
Utilities - Gas and Pipeline - 2.56% | ||||||||
Enbridge Inc. | 8,750 | 320,863 | ||||||
Southwestern Energy Company* | 5,500 | 230,175 | ||||||
551,038 | ||||||||
TOTAL COMMON STOCKS - 89.66% | $ | 19,302,324 | ||||||
(Cost: $15,933,386) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Finance Companies - 3.71% | ||||||||
Prudential Funding LLC, | ||||||||
5.15%, 10-11-07 | $ | 800 | 798,856 | |||||
Household - General Products - 3.71% | ||||||||
Fortune Brands Inc., | ||||||||
5.55%, 10-1-07 | 800 | 800,000 | ||||||
Mining - 3.58% | ||||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | ||||||||
5.0%, 10-1-07 | 770 | 770,000 | ||||||
TOTAL SHORT-TERM SECURITIES - 11.00% | $ | 2,368,856 | ||||||
(Cost: $2,368,856) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.66% | $ | 21,671,180 | ||||||
(Cost: $18,302,242) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.66%) | (142,972 | ) | ||||||
NET ASSETS - 100.00% | $ | 21,528,208 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY ENERGY FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $18,302) (Notes 1 and 3) | $ | 21,671 | ||
Cash | –– | * | ||
Receivables: | ||||
Fund shares sold | 146 | |||
Dividends and interest | 10 | |||
Prepaid and other assets | 31 | |||
Total assets | 21,858 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 303 | |||
Accrued shareholder servicing (Note 2) | 5 | |||
Payable to Fund shareholders | 3 | |||
Accrued accounting services fee (Note 2) | 1 | |||
Accrued distribution and service fees (Note 2) | 1 | |||
Other | 17 | |||
Total liabilities | 330 | |||
Total net assets | $ | 21,528 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 16 | ||
Additional paid-in capital | 18,054 | |||
Accumulated undistributed income: | ||||
Accumulated undistributed net investment loss | (7 | ) | ||
Accumulated undistributed net realized gain on investment transactions | 96 | |||
Net unrealized appreciation in value of investments | 3,369 | |||
Net assets applicable to outstanding units of capital | $ | 21,528 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $13.09 | |||
Class B | $12.97 | |||
Class C | $12.98 | |||
Class E | $13.11 | |||
Class I | $13.15 | |||
Class Y | $13.14 | |||
Capital shares outstanding: | ||||
Class A | 1,267 | |||
Class B | 111 | |||
Class C | 167 | |||
Class E | 10 | |||
Class I | 9 | |||
Class Y | 83 | |||
Capital shares authorized | 250,000 |
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Operations
IVY ENERGY FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $2) | $ | 57 | ||
Interest and amortization | 54 | |||
Total income | 111 | |||
Expenses (Note 2): | ||||
Investment management fee | 60 | |||
Registration fees | 35 | |||
Shareholder servicing: | ||||
Class A | 19 | |||
Class B | 2 | |||
Class C | 2 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | 1 | |||
Service fee: | ||||
Class A | 13 | |||
Class B | 1 | |||
Class C | 2 | |||
Audit fees | 11 | |||
Distribution fee: | ||||
Class B | 4 | |||
Class C | 6 | |||
Class E | –– | * | ||
Class Y | 1 | |||
Prospectus printing | 8 | |||
Accounting services fee | 6 | |||
Custodian fees | 3 | |||
Legal fees | –– | * | ||
Other | 4 | |||
Total | 178 | |||
Less voluntary waiver of investment management fee (Note 2) | (60 | ) | ||
Total expenses | 118 | |||
Net investment loss | (7 | ) | ||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 96 | |||
Unrealized appreciation in value of investments during the period | 3,043 | |||
Net gain on investments | 3,139 | |||
Net increase in net assets resulting from operations | $ | 3,132 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY ENERGY FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the period from 4-3-06(1) to | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 3-31-07 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment loss | $ | (7 | ) | $ | (71 | ) | ||
Realized net gain on investments | 96 | 15 | ||||||
Unrealized appreciation | 3,043 | 326 | ||||||
Net increase in net assets resulting from operations | 3,132 | 270 | ||||||
Distributions to shareholders from (Note 1F):(2) | ||||||||
Net investment income: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
Realized gains on investment transactions: | ||||||||
Class A | (–– | ) | (–– | ) | ||||
Class B | (–– | ) | (–– | ) | ||||
Class C | (–– | ) | (–– | ) | ||||
Class E | (–– | ) | NA | |||||
Class I | (–– | ) | NA | |||||
Class Y | (–– | ) | (–– | ) | ||||
(–– | ) | (–– | ) | |||||
Capital share transactions (Note 5) | 10,806 | 7,320 | ||||||
Total increase | 13,938 | 7,590 | ||||||
NET ASSETS | ||||||||
Beginning of period | 7,590 | –– | ||||||
End of period | $ | 21,528 | $ | 7,590 | ||||
Undistributed net investment income | $ | (7 | ) | $ | –– | |||
(1)Commencement of operations.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-3-06(1) to | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | |||||||||
Net asset value, beginning of period | $ | 10.35 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.00 | (0.09 | ) | |||||||
Net realized and unrealized gain on investments | 2.74 | 0.44 | ||||||||
Total from investment operations | 2.74 | 0.35 | ||||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.00 | ) | ||||||
Net asset value, end of period | $ | 13.09 | $ | 10.35 | ||||||
Total return(2) | 26.47 | % | 3.50 | % | ||||||
Net assets, end of period (in millions) | $17 | $5 | ||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.56 | %(3) | 2.74 | %(3) | ||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.01 | %(3) | - -1.30 | %(3) | ||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.41 | %(3) | 3.58 | %(3) | ||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.84 | %(3) | - -2.14 | %(3) | ||||||
Portfolio turnover rate | 10 | % | 11 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-3-06(1) to | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | |||||||||
Net asset value, beginning of period | $ | 10.29 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment loss | (0.06 | ) | (0.13 | ) | ||||||
Net realized and unrealized gain on investments | 2.74 | 0.42 | ||||||||
Total from investment operations | 2.68 | 0.29 | ||||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.00 | ) | ||||||
Net asset value, end of period | $ | 12.97 | $ | 10.29 | ||||||
Total return | 26.05 | % | 2.90 | % | ||||||
Net assets, end of period (in millions) | $1 | $1 | ||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.27 | %(2) | 3.13 | %(2) | ||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.73 | %(2) | - -1.64 | %(2) | ||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 3.12 | %(2) | 3.97 | %(2) | ||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.58 | %(2) | - -2.48 | %(2) | ||||||
Portfolio turnover rate | 10 | % | 11 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the period from 4-3-06(1) to | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | |||||||||
Net asset value, beginning of period | $ | 10.30 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment loss | (0.05 | ) | (0.14 | ) | ||||||
Net realized and unrealized gain on investments | 2.73 | 0.44 | ||||||||
Total from investment operations | 2.68 | 0.30 | ||||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.00 | ) | ||||||
Net asset value, end of period | $ | 12.98 | $ | 10.30 | ||||||
Total return | 26.12 | % | 3.00 | % | ||||||
Net assets, end of period (in millions) | $2 | $1 | ||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.16 | %(2) | 3.17 | %(2) | ||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.61 | %(2) | - -1.72 | %(2) | ||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 3.01 | %(2) | 4.01 | %(2) | ||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.46 | %(2) | - -2.56 | %(2) | ||||||
Portfolio turnover rate | 10 | % | 11 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.35 | |||
Income from investment operations: | |||||
Net investment income | 0.11 | (2) | |||
Net realized and unrealized gain on investments | 2.65 | (2) | |||
Total from investment operations | 2.76 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 13.11 | |||
Total return(3) | 25.10 | % | |||
Net assets, end of period (in thousands) | $125 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.22 | %(4) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.32 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.07 | %(4) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.53 | %(4) | |||
Portfolio turnover rate | 10 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.38 | |||
Income from investment operations: | |||||
Net investment income | 0.12 | (2) | |||
Net realized and unrealized gain on investments | 2.65 | (2) | |||
Total from investment operations | 2.77 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 13.15 | |||
Total return | 25.12 | % | |||
Net assets, end of period (in thousands) | $125 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.11 | %(3) | |||
Ratio of net investment income to average net assets including voluntary expense waiver | 0.43 | %(3) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.96 | %(3) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.42 | %(3) | |||
Portfolio turnover rate | 10 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY ENERGY FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the six months ended | For the period from 4-3-06(1) to | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | |||||||||
Net asset value, beginning of period | $ | 10.38 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.03 | (0.08 | ) | |||||||
Net realized and unrealized gain on investments | 2.73 | 0.46 | ||||||||
Total from investment operations | 2.76 | 0.38 | ||||||||
Less distributions from: | ||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | ||||||
Capital gains | (0.00 | ) | (0.00 | ) | ||||||
Total distributions | (0.00 | ) | (0.00 | ) | ||||||
Net asset value, end of period | $ | 13.14 | $ | 10.38 | ||||||
Total return | 26.59 | % | 3.80 | % | ||||||
Net assets, end of period (in millions) | $1 | $1 | ||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.40 | %(2) | 2.32 | %(2) | ||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.17 | %(2) | - -0.82 | %(2) | ||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.25 | %(2) | 3.16 | %(2) | ||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.68 | %(2) | - -1.66 | %(2) | ||||||
Portfolio turnover rate | 10 | % | 11 | % |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY HIGH INCOME FUND
Portfolio Highlights
On September 30, 2007, Ivy High Income Fund had net assets totaling $133,952,686 invested in a diversified portfolio of:
91.21% | Domestic Corporate Debt Securities | |
6.16% | Cash and Cash Equivalents | |
2.37% | Foreign Corporate Debt Securities | |
0.26% | Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Financial Services Bonds | $ | 18.55 | |||
Business Equipment and Services Bonds | $ | 11.93 | |||
Capital Goods Bonds | $ | 9.17 | |||
Raw Materials Bonds | $ | 8.98 | |||
Health Care Bonds | $ | 8.21 | |||
Cash and Cash Equivalents | $ | 6.16 | |||
Consumer Services Bonds | $ | 5.86 | |||
Consumer Nondurables Bonds | $ | 5.41 | |||
Multiple Industry Bonds | $ | 5.31 | |||
Miscellaneous Bonds | $ | 4.55 | |||
Retail Bonds | $ | 4.40 | |||
Shelter Bonds | $ | 3.92 | |||
Utilities Bonds | $ | 3.72 | |||
Technology Bonds | $ | 3.57 | |||
Common Stocks | $ | 0.26 |
On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:
A | 0.20 | % | |||
BB | 8.19 | % | |||
B | 54.53 | % | |||
CCC | 27.03 | % | |||
Below CCC | 2.19 | % | |||
Non-rated | 1.44 | % | |||
Cash and Cash Equivalents and Equities | 6.42 | % |
Ratings reflected in the wheel are taken from Standard & Poor's.
The Investments of Ivy High Income Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Chemicals - Petroleum and Inorganic - 0.12% | ||||||||
UAP Holding Corp. | 5,200 | $ | 163,150 | |||||
Hotels and Gaming - 0.14% | ||||||||
Pinnacle Entertainment, Inc.* | 7,000 | 190,610 | ||||||
TOTAL COMMON STOCKS - 0.26% | $ | 353,760 | ||||||
(Cost: $326,099) | ||||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | |||||||
Aircraft - 0.19% | ||||||||
Esterline Technologies Corporation, | ||||||||
7.75%, 6-15-13 | $ | 250 | 253,750 | |||||
Apparel - 1.15% | ||||||||
Oxford Industries, Inc., | ||||||||
8.875%, 6-1-11 | 225 | 227,250 | ||||||
Perry Ellis International, Inc., | ||||||||
8.875%, 9-15-13 | 1,335 | 1,311,637 | ||||||
1,538,887 | ||||||||
Beverages - 0.19% | ||||||||
Constellation Brands, Inc., | ||||||||
8.125%, 1-15-12 | 250 | 254,375 | ||||||
Broadcasting - 0.82% | ||||||||
CCH II, LLC and CCH II Capital Corp., | ||||||||
10.25%, 9-15-10 | 1,070 | 1,094,075 | ||||||
Business Equipment and Services - 11.93% | ||||||||
Allied Waste North America, Inc., | ||||||||
7.125%, 5-15-16 | 750 | 766,875 | ||||||
Education Management LLC and Education Management Finance Corp., | ||||||||
10.25%, 6-1-16 | 2,250 | 2,328,750 | ||||||
First Data Corporation, | ||||||||
7.997%, 9-24-14 (A) | 2,000 | 1,925,840 | ||||||
Iron Mountain Incorporated, | ||||||||
8.625%, 4-1-13 | 1,000 | 1,012,500 |
Nielsen Finance LLC and Nielsen Finance Co., | ||||||||
0.0%, 8-1-16 (B) | 1,500 | 1,050,000 | ||||||
R.H. Donnelley Corporation, | ||||||||
6.875%, 1-15-13 | 1,000 | 945,000 | ||||||
SunGard Data Systems Inc.: | ||||||||
9.125%, 8-15-13 | 2,375 | 2,470,000 | ||||||
10.25%, 8-15-15 | 750 | 783,750 | ||||||
UCAR Finance Inc., | ||||||||
10.25%, 2-15-12 | 129 | 134,483 | ||||||
VNU, Inc., | ||||||||
7.36%, 8-9-13 (A) | 1,000 | 970,000 | ||||||
West Corporation: | ||||||||
9.5%, 10-15-14 | 175 | 180,688 | ||||||
11.0%, 10-15-16 | 3,250 | 3,412,500 | ||||||
15,980,386 | ||||||||
Capital Equipment - 4.67% | ||||||||
Jostens IH Corp., | ||||||||
7.625%, 10-1-12 | 500 | 508,750 | ||||||
Simmons Bedding Company, | ||||||||
7.875%, 1-15-14 | 1,000 | 960,000 | ||||||
Simmons Company, | ||||||||
0.0%, 12-15-14 (B) | 6,005 | 4,788,988 | ||||||
6,257,738 | ||||||||
Chemicals - Petroleum and Inorganic - 1.55% | ||||||||
Lyondell Chemical Company, | ||||||||
8.0%, 9-15-14 | 500 | 550,000 | ||||||
Nalco Company, | ||||||||
7.75%, 11-15-11 | 1,500 | 1,530,000 | ||||||
2,080,000 | ||||||||
Chemicals - Specialty - 7.43% | ||||||||
Compass Minerals International, Inc.: | ||||||||
0.0%, 12-15-12 (B) | 250 | 260,000 | ||||||
0.0%, 6-1-13 (B) | 1,000 | 1,007,500 | ||||||
Huntsman International LLC, | ||||||||
7.375%, 1-1-15 | 950 | 992,750 | ||||||
Momentive Performance Materials Inc.: | ||||||||
9.75%, 12-1-14 (C) | 1,750 | 1,732,500 | ||||||
11.5%, 12-1-16 (C) | 3,500 | 3,465,000 | ||||||
Mosaic Company (The): | ||||||||
7.375%, 12-1-14 (C) | 195 | 204,750 | ||||||
7.625%, 12-1-16 (C) | 2,150 | 2,292,437 | ||||||
9,954,937 | ||||||||
Communications Equipment - 0.75% | ||||||||
Intelsat (Bermuda), Ltd., | ||||||||
8.886%, 1-15-15 (A) | $ | 1,000 | 1,010,000 | |||||
Computers - Peripherals - 1.74% | ||||||||
ASG Consolidated LLC and ASG Finance, Inc., | ||||||||
0.0%, 11-1-11 (B) | 2,500 | 2,325,000 | ||||||
Construction Materials - 4.09% | ||||||||
Interface, Inc., | ||||||||
9.5%, 2-1-14 | 2,045 | 2,137,025 | ||||||
Norcraft Holdings, L.P. and Norcraft Capital Corp., | ||||||||
9.0%, 11-1-11 | 500 | 502,500 | ||||||
Ply Gem Industries, Inc., | ||||||||
9.0%, 2-15-12 | 3,500 | 2,835,000 | ||||||
5,474,525 | ||||||||
Electronic Components - 0.89% | ||||||||
NXP B.V. and NXP Funding LLC, | ||||||||
7.875%, 10-15-14 | 225 | 216,563 | ||||||
Seagate Technology HDD Holdings, | ||||||||
6.8%, 10-1-16 | 1,000 | 977,500 | ||||||
1,194,063 | ||||||||
Finance Companies - 17.68% | ||||||||
Ford Motor Credit Company: | ||||||||
9.75%, 9-15-10 | 1,000 | 1,019,928 | ||||||
8.0%, 12-15-16 | 1,500 | 1,403,257 | ||||||
Goodman Global Holdings, Inc.: | ||||||||
8.36%, 6-15-12 (A) | 361 | 357,390 | ||||||
7.875%, 12-15-12 | 3,000 | 2,947,500 | ||||||
INEOS GROUP HOLDINGS Plc, | ||||||||
8.5%, 2-15-16 | 1,000 | 957,500 | ||||||
Norcraft Companies, L.P. and Norcraft Finance Corp., | ||||||||
0.0%, 9-1-12 (B) | 200 | 179,000 | ||||||
PIH Acquisition Co., | ||||||||
10.75%, 10-1-13 (C) | 675 | 641,250 | ||||||
Sally Holdings LLC and Sally Capital Inc.: | ||||||||
9.25%, 11-15-14 | 1,000 | 1,010,000 | ||||||
10.5%, 11-15-16 | 5,500 | 5,500,000 | ||||||
Visant Holding Corp., | ||||||||
8.75%, 12-1-13 | 5,225 | 5,342,563 | ||||||
WMG Holdings Corp., | ||||||||
0.0%, 12-15-14 (B) | 1,500 | 1,050,000 | ||||||
Xerox Capital Trust I, | ||||||||
8.0%, 2-1-27 | 3,250 | 3,279,120 | ||||||
23,687,508 | ||||||||
Food and Related - 1.59% | ||||||||
Pierre Merger Corp., | ||||||||
9.875%, 7-15-12 | 850 | 782,000 | ||||||
Reddy Ice Holdings, Inc., | ||||||||
0.0%, 11-1-12 (B) | 1,435 | 1,348,900 | ||||||
2,130,900 | ||||||||
Forest and Paper Products - 3.92% | ||||||||
Buckeye Technologies Inc.: | ||||||||
8.0%, 10-15-10 | 3,760 | 3,835,200 | ||||||
8.5%, 10-1-13 | 1,400 | 1,414,000 | ||||||
5,249,200 | ||||||||
Health Care - Drugs - 1.95% | ||||||||
Mylan Laboratories Inc., | ||||||||
6.375%, 8-15-15 | 500 | 536,875 | ||||||
Warner Chilcott Corporation, | ||||||||
8.75%, 2-1-15 | 2,000 | 2,070,000 | ||||||
2,606,875 | ||||||||
Health Care - General - 1.12% | ||||||||
Biomet, Inc., | ||||||||
10.0%, 10-15-17 (C) | 1,500 | 1,500,000 | ||||||
Hospital Supply and Management - 5.14% | ||||||||
CHS/Community Health Systems, Inc., | ||||||||
8.875%, 7-15-15 (C) | 2,750 | 2,825,625 | ||||||
HCA Inc.: | ||||||||
6.95%, 5-1-12 | 1,000 | 932,500 | ||||||
9.625%, 11-15-16 (C) | 500 | 533,750 | ||||||
HealthSouth Corporation, | ||||||||
10.75%, 6-15-16 | 250 | 263,125 | ||||||
Rural/Metro Corporation, | ||||||||
0.0%, 3-15-16 (B) | 320 | 251,200 | ||||||
Rural/Metro Operating Company, LLC and Rural/Metro (Delaware) Inc., | ||||||||
9.875%, 3-15-15 | 300 | 285,000 | ||||||
US Oncology, Inc.: | ||||||||
9.0%, 8-15-12 | 1,500 | 1,511,250 | ||||||
10.75%, 8-15-14 | 275 | 283,937 | ||||||
6,886,387 | ||||||||
Hotels and Gaming - 3.58% | ||||||||
Inn of the Mountain Gods Resort and Casino, | ||||||||
12.0%, 11-15-10 | 1,500 | 1,582,500 | ||||||
MGM MIRAGE: | ||||||||
8.5%, 9-15-10 | 500 | 522,500 | ||||||
8.375%, 2-1-11 | 500 | 521,250 | ||||||
Pinnacle Entertainment, Inc., | ||||||||
8.25%, 3-15-12 | 2,145 | 2,171,813 | ||||||
4,798,063 | ||||||||
Household - General Products - 2.48% | ||||||||
Central Garden & Pet Company, | ||||||||
9.125%, 2-1-13 | 3,000 | 2,812,500 | ||||||
Sealy Mattress Company, | ||||||||
8.25%, 6-15-14 | 500 | 503,750 | ||||||
3,316,250 | ||||||||
Metal Fabrication - 0.41% | ||||||||
Aurora Acquisition Merger Sub, Inc.: | ||||||||
9.0%, 12-15-14 | 350 | 323,750 | ||||||
10.0%, 12-15-16 | 250 | 221,250 | ||||||
545,000 | ||||||||
Motion Pictures - 1.19% | ||||||||
AMC Entertainment Inc., | ||||||||
11.0%, 2-1-16 | 1,500 | 1,597,500 | ||||||
Motor Vehicles - 1.77% | ||||||||
Group 1 Automotive, Inc., | ||||||||
8.25%, 8-15-13 | 1,625 | 1,625,000 | ||||||
Sonic Automotive, Inc., | ||||||||
8.625%, 8-15-13 | 750 | 740,625 | ||||||
2,365,625 | ||||||||
Multiple Industry - 5.31% | ||||||||
CPG International I Inc., | ||||||||
10.5%, 7-1-13 | 500 | 500,000 | ||||||
Fontainebleau Las Vegas Holdings and Fontainebleau Capital Corp., | ||||||||
10.25%, 6-15-15 (C) | 605 | 567,187 | ||||||
Freescale Semiconductor, Inc.: | ||||||||
8.875%, 12-15-14 | 1,000 | 965,000 | ||||||
10.125%, 12-15-16 | 1,250 | 1,162,500 | ||||||
Shingle Springs Tribal Gaming Authority, | ||||||||
9.375%, 6-15-15 (C) | 450 | 454,500 | ||||||
UCI Holdco, Inc., | ||||||||
12.69438%, 12-15-13 (A)(C)(D) | 1,094 | 1,030,561 | ||||||
Umbrella Acquisition, Inc., | ||||||||
9.75%, 3-15-15 (C) | 2,500 | 2,437,500 | ||||||
7,117,248 | ||||||||
Petroleum - Domestic - 0.79% | ||||||||
Petrohawk Energy Corporation, | ||||||||
9.125%, 7-15-13 | 1,000 | 1,055,000 | ||||||
Petroleum - Services - 1.43% | ||||||||
R&B Falcon Corporation, | ||||||||
9.5%, 12-15-08 | 250 | 262,440 | ||||||
TXU Energy Company LLC, | ||||||||
7.0%, 3-15-13 | 1,500 | 1,646,610 | ||||||
1,909,050 | ||||||||
Publishing - 0.27% | ||||||||
Dex Media West LLC and Dex Media West Finance Co., | ||||||||
8.5%, 8-15-10 | 350 | 359,625 | ||||||
Railroad - 0.28% | ||||||||
Kansas City Southern Railway Company (The), | ||||||||
7.5%, 6-15-09 | 375 | 379,219 | ||||||
Restaurants - 2.04% | ||||||||
NPC International, Inc., | ||||||||
9.5%, 5-1-14 | 3,000 | 2,730,000 | ||||||
Retail - Food Stores - 0.96% | ||||||||
Couche-Tard U.S. L.P. and Couche-Tard Financing Corp., | ||||||||
7.5%, 12-15-13 | 200 | 203,500 | ||||||
Pantry, Inc. (The), | ||||||||
7.75%, 2-15-14 | 600 | 579,000 | ||||||
Stater Bros. Holdings Inc., | ||||||||
8.125%, 6-15-12 | 500 | 509,375 | ||||||
1,291,875 | ||||||||
Retail - General Merchandise - 1.40% | ||||||||
Dollar General Corporation, | ||||||||
10.625%, 7-15-15 (C) | 2,000 | 1,880,000 | ||||||
Security and Commodity Brokers - 0.87% | ||||||||
Global Cash Access, L.L.C. and Global Cash Access Finance Corporation, | ||||||||
8.75%, 3-15-12 | 1,122 | 1,161,270 | ||||||
Trucking and Shipping - 0.28% | ||||||||
Quality Distribution, LLC and QD Capital Corporation, | ||||||||
9.0%, 11-15-10 | 400 | 381,000 | ||||||
Utilities - Electric - 2.20% | ||||||||
Calpine Corporation, | ||||||||
7.44813%, 3-29-09 (A) | 2,995 | 2,942,575 | ||||||
Utilities - Telephone - 1.52% | ||||||||
MetroPCS Communications, Inc., | ||||||||
9.25%, 11-1-14 (C) | $ | 2,000 | 2,040,000 | |||||
TOTAL CORPORATE DEBT SECURITIES - 93.58% | $ | 125,347,906 | ||||||
(Cost: $125,756,183) | ||||||||
| ||||||||
SHORT-TERM SECURITIES | ||||||||
Beverages - 0.75% | ||||||||
Diageo Capital plc (Diageo plc), | ||||||||
5.9%, 10-10-07 | 1,000 | 998,525 | ||||||
Food and Related - 2.22% | ||||||||
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.), | ||||||||
6.2%, 10-12-07 | 1,500 | 1,497,158 | ||||||
Kellogg Co., | ||||||||
5.9%, 12-7-07 | 1,500 | 1,483,529 | ||||||
2,980,687 | ||||||||
Retail - Food Stores - 2.43% | ||||||||
Kroger Co. (The): | ||||||||
5.8%, 10-1-07 | 1,257 | 1,257,000 | ||||||
6.0%, 10-12-07 | 1,000 | 998,167 | ||||||
6.2%, 10-16-07 | 1,000 | 997,417 | ||||||
3,252,584 | ||||||||
Utilities - Electric - 1.87% | ||||||||
Detroit Edison Co., | ||||||||
6.1%, 10-1-07 | 2,500 | 2,500,000 | ||||||
Utilities - Gas and Pipeline - 0.37% | ||||||||
Questar Corporation, | ||||||||
5.75%, 10-19-07 | 500 | 498,562 | ||||||
TOTAL SHORT-TERM SECURITIES - 7.64% | $ | 10,230,358 | ||||||
(Cost: $10,230,358) | ||||||||
TOTAL INVESTMENT SECURITIES - 101.48% | $ | 135,932,024 | ||||||
(Cost: $136,312,640) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (1.48%) | (1,979,338 | ) | ||||||
NET ASSETS - 100.00% | $ | 133,952,686 | ||||||
Notes to Schedule of Investments | ||||||||||||
*No dividends were paid during the preceding 12 months. | ||||||||||||
The following credit default swap agreements were outstanding at September 30, 2007. (See Note 7 to financial statements): | ||||||||||||
Counterparty | Reference Entity | Fixed Rate | Expiration Date | Notional Amount | Unrealized Appreciation (Depreciation | ) | ||||||
Lehman Brothers | Allied Waste North America, Inc. | 3.20% | 9-20-10 | $5,000,000 | $ | 173,000 | ||||||
Morgan Stanley | Allied Waste North America, Inc. | 2.00% | 9-20-10 | (5,000,000 | ) | (12,500 | ) | |||||
Lehman Brothers | ALLTEL Corporation | 4.45% | 9-20-12 | (1,000,000 | ) | 2,000 | ||||||
Lehman Brothers | ALLTEL Corporation | 4.45% | 12-20-12 | (1,000,000 | ) | 2,000 | ||||||
Bear Stearns | Dow Jones CDX North America High Yield Series 8 | 2.75% | 6-20-12 | (1,000,000 | ) | (19,922 | ) | |||||
Goldman Sachs | Dow Jones CDX North America High Yield Series 8 | 2.75% | 6-20-12 | (1,000,000 | ) | (42,914 | ) | |||||
Goldman Sachs | First Data Corporation | 5.25% | 12-20-12 | (1,000,000 | ) | 6,700 | ||||||
Lehman Brothers | Ford Motor Company | 4.60% | 9-20-08 | (1,500,000 | ) | (11,250 | ) | |||||
Morgan Stanley | General Motors Acceptance Corporation | 3.50% | 12-20-12 | (2,000,000 | ) | (9,200 | ) | |||||
Lehman Brothers | General Motors Corporation | 4.50% | 9-20-08 | (1,500,000 | ) | (15,000 | ) | |||||
Lehman Brothers | Lennar Corporation | 2.60% | 9-20-08 | (2,000,000 | ) | 5,800 | ||||||
Lehman Brothers | Lennar Corporation | 2.84% | 12-20-12 | (1,500,000 | ) | 26,700 | ||||||
Morgan Stanley | Societe Generale N.A. Inc. | 0.37% | 9-20-12 | (1,500,000 | ) | (8,550 | ) | |||||
Morgan Stanley | Societe Generale N.A. Inc. | 0.55% | 9-20-12 | (1,500,000 | ) | (12,900 | ) | |||||
$ | 83,964 | |||||||||||
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. | ||||||||||||
(B)These securities do not bear interest for an initial period of time and subsequently become interest bearing. | ||||||||||||
(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 Directors. At September 30, 2007, the total value of these securities amounted to $21,605,060 or 16.13% of net assets. | ||||||||||||
(D)Payment in kind bonds. | ||||||||||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | ||||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY HIGH INCOME FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $136,313) (Notes 1 and 3) | $ | 135,932 | ||
Cash | 16 | |||
Receivables: | ||||
Dividends and interest | 2,535 | |||
Fund shares sold | 667 | |||
Investment securities sold | 101 | |||
Unrealized appreciation on swap agreements (Note 7) | 216 | |||
Amortized swap premiums paid (Note 7) | 117 | |||
Prepaid and other assets | 47 | |||
Total assets | 139,631 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 5,266 | |||
Payable to Fund shareholders | 181 | |||
Unrealized depreciation on swap agreements (Note 7) | 132 | |||
Accrued shareholder servicing (Note 2) | 42 | |||
Accrued management fee (Note 2) | 7 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Accrued service fee (Note 2) | 3 | |||
Accrued distribution fee (Note 2) | 2 | |||
Other | 39 | |||
Total liabilities | 5,678 | |||
Total net assets | $ | 133,953 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 154 | ||
Additional paid-in capital | 136,192 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 111 | |||
Accumulated undistributed net realized loss on investment transactions | (2,207 | ) | ||
Net unrealized depreciation in value of investments | (297 | ) | ||
Net assets applicable to outstanding units of capital | $ | 133,953 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $8.72 | |||
Class B | $8.72 | |||
Class C | $8.73 | |||
Class E | $8.72 | |||
Class I | $8.73 | |||
Class Y | $8.73 | |||
Capital shares outstanding: | ||||
Class A | 11,849 | |||
Class B | 858 | |||
Class C | 1,966 | |||
Class E | 54 | |||
Class I | 26 | |||
Class Y | 600 | |||
Capital shares authorized | 200,000 |
See Notes to Financial Statements.
Statement of Operations
IVY HIGH INCOME FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 5,359 | ||
Dividends | 7 | |||
Total income | 5,366 | |||
Expenses (Note 2): | ||||
Investment management fee | 381 | |||
Shareholder servicing: | ||||
Class A | 143 | |||
Class B | 21 | |||
Class C | 31 | |||
Class E | 2 | |||
Class I | –– | * | ||
Class Y | 4 | |||
Service fee: | ||||
Class A | 115 | |||
Class B | 9 | |||
Class C | 22 | |||
Distribution fee: | ||||
Class B | 27 | |||
Class C | 65 | |||
Class E | –– | * | ||
Class Y | 7 | |||
Accounting services fee | 33 | |||
Audit fees | 11 | |||
Legal fees | 6 | |||
Custodian fees | 3 | |||
Other | 74 | |||
Total expenses | 954 | |||
Net investment income | 4,412 | |||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 82 | |||
Realized net loss on swap agreements | (28 | ) | ||
Realized net gain on investments | 54 | |||
Unrealized depreciation in value of securities during the period | (2,939 | ) | ||
Unrealized appreciation in value of swap agreements during the period | 84 | |||
Unrealized depreciation in value of investments during the period | (2,855 | ) | ||
Net loss on investments | (2,801 | ) | ||
Net increase in net assets resulting from operations | $ | 1,611 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY HIGH INCOME FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | ||||||||
---|---|---|---|---|---|---|---|---|---|
2007 | 2007 | ||||||||
INCREASE IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment income | $ | 4,412 | $ | 6,244 | |||||
Realized net gain on investments | 54 | 2,092 | |||||||
Unrealized appreciation (depreciation) | (2,855 | ) | 1,718 | ||||||
Net increase in net assets resulting from operations | 1,611 | 10,054 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (3,306 | ) | (4,057 | ) | |||||
Class B | (223 | ) | (378 | ) | |||||
Class C | (550 | ) | (1,072 | ) | |||||
Class E | (11 | ) | NA | ||||||
Class I | (9 | ) | NA | ||||||
Class Y | (202 | ) | (737 | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (–– | ) | |||||
(4,301 | ) | (6,244 | ) | ||||||
Capital share transactions (Note 5) | 22,951 | 38,164 | |||||||
Total increase | 20,261 | 41,974 | |||||||
NET ASSETS | |||||||||
Beginning of period | 113,692 | 71,718 | |||||||
End of period | $ | 133,953 | $ | 113,692 | |||||
Undistributed net investment income (loss) | $ | 111 | $ | (–– | )* | ||||
*Not shown due to rounding.
(1)See "Financial Highlights" on pages 99 - 104.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | $ | 8.48 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.32 | 0.62 | 0.58 | 0.57 | 0.56 | 0.64 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 0.32 | (0.09 | ) | (0.16 | ) | 0.78 | (0.41 | ) | |||||||||||
Total from investment operations | 0.11 | 0.94 | 0.49 | 0.41 | 1.34 | 0.23 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.31 | ) | (0.62 | ) | (0.58 | ) | (0.57 | ) | (0.56 | ) | (0.64 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.31 | ) | (0.62 | ) | (0.58 | ) | (0.57 | ) | (0.56 | ) | (0.64 | ) | |||||||||
Net asset value, end of period | $ | 8.72 | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | |||||||||
Total return(1) | 1.46 | % | 11.39 | % | 5.80 | % | 4.69 | % | 17.24 | % | 3.02 | % | |||||||||
Net assets, end of period (in millions) | $103 | $79 | $39 | $32 | $18 | $6 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.39 | %(2) | 1.38 | % | 1.45 | % | 1.44 | % | 1.39 | % | 0.91 | % | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 7.39 | %(2) | 7.20 | % | 6.70 | % | 6.43 | % | 6.62 | % | 7.83 | % | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.39 | %(2)(3) | 1.38 | %(3) | 1.45 | %(3) | 1.44 | %(3) | 1.39 | %(3) | 1.44 | % | |||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 7.39 | %(2)(3) | 7.20 | %(3) | 6.70 | %(3) | 6.43 | %(3) | 6.62 | %(3) | 7.30 | % | |||||||||
Portfolio turnover rate | 50 | % | 98 | % | 45 | % | 54 | % | 78 | % | 52 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | $ | 8.48 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.28 | 0.53 | 0.50 | 0.49 | 0.50 | 0.56 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 0.32 | (0.09 | ) | (0.16 | ) | 0.78 | (0.41 | ) | |||||||||||
Total from investment operations | 0.07 | 0.85 | 0.41 | 0.33 | 1.28 | 0.15 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.27 | ) | (0.53 | ) | (0.50 | ) | (0.49 | ) | (0.50 | ) | (0.56 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.27 | ) | (0.53 | ) | (0.50 | ) | (0.49 | ) | (0.50 | ) | (0.56 | ) | |||||||||
Net asset value, end of period | $ | 8.72 | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | |||||||||
Total return | 0.94 | % | 10.24 | % | 4.85 | % | 3.80 | % | 16.22 | % | 2.06 | % | |||||||||
Net assets, end of period (in millions) | $8 | $7 | $6 | $5 | $4 | $2 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.44 | %(1) | 2.43 | % | 2.36 | % | 2.31 | % | 2.28 | % | 1.84 | % | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 6.34 | %(1) | 6.14 | % | 5.79 | % | 5.56 | % | 5.78 | % | 6.90 | % | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.44 | %(1)(2) | 2.43 | %(2) | 2.36 | %(2) | 2.31 | %(2) | 2.28 | %(2) | 2.37 | % | |||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 6.34 | %(1)(2) | 6.14 | %(2) | 5.79 | %(2) | 5.56 | %(2) | 5.78 | %(2) | 6.37 | % | |||||||||
Portfolio turnover rate | 50 | % | 98 | % | 45 | % | 54 | % | 78 | % | 52 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | $ | 8.48 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.29 | 0.55 | 0.51 | 0.50 | 0.50 | 0.57 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.32 | (0.09 | ) | (0.16 | ) | 0.78 | (0.41 | ) | |||||||||||
Total from investment operations | 0.09 | 0.87 | 0.42 | 0.34 | 1.28 | 0.16 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.28 | ) | (0.55 | ) | (0.51 | ) | (0.50 | ) | (0.50 | ) | (0.57 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.28 | ) | (0.55 | ) | (0.51 | ) | (0.50 | ) | (0.50 | ) | (0.57 | ) | |||||||||
Net asset value, end of period | $ | 8.73 | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | |||||||||
Total return | 1.04 | % | 10.51 | % | 5.00 | % | 3.90 | % | 16.30 | % | 2.15 | % | |||||||||
Net assets, end of period (in millions) | $17 | $17 | $17 | $22 | $23 | $18 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.20 | %(1) | 2.18 | % | 2.21 | % | 2.20 | % | 2.21 | % | 1.74 | % | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 6.58 | %(1) | 6.39 | % | 5.94 | % | 5.67 | % | 5.89 | % | 7.05 | % | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.20 | %(1)(2) | 2.18 | %(2) | 2.21 | %(2) | 2.20 | %(2) | 2.21 | %(2) | 2.27 | % | |||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 6.58 | %(1)(2) | 6.39 | %(2) | 5.94 | %(2) | 5.67 | %(2) | 5.89 | %(2) | 6.52 | % | |||||||||
Portfolio turnover rate | 50 | % | 98 | % | 45 | % | 54 | % | 78 | % | 52 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 8.92 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.30 | (2) | |||
Net realized and unrealized loss on investments | (0.19 | )(2) | |||
Total from investment operations | 0.11 | ||||
Less distributions from: | |||||
Net investment income | (0.31 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.31 | ) | |||
Net asset value, end of period | $ | 8.72 | |||
Total return(3) | 1.13 | % | |||
Net assets, end of period (in thousands) | $475 | ||||
Ratio of expenses to average net assets | 2.02 | %(4) | |||
Ratio of net investment income to average net assets | 6.78 | %(4) | |||
Portfolio turnover rate | 50 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 8.92 | |||
Income (loss) from investment operations: | |||||
Net investment income | 0.43 | (2) | |||
Net realized and unrealized loss on investments | (0.20 | )(2) | |||
Total from investment operations | 0.23 | ||||
Less distributions from: | |||||
Net investment income | (0.42 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.42 | ) | |||
Net asset value, end of period | $ | 8.73 | |||
Total return | 2.51 | % | |||
Net assets, end of period (in thousands) | $227 | ||||
Ratio of expenses to average net assets | 1.03 | %(3) | |||
Ratio of net investment income to average net assets | 7.76 | %(3) | |||
Portfolio turnover rate | 50 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY HIGH INCOME FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | $ | 8.48 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment income | 0.33 | 0.64 | 0.59 | 0.58 | 0.58 | 0.64 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.20 | ) | 0.32 | (0.09 | ) | (0.16 | ) | 0.78 | (0.41 | ) | |||||||||||
Total from investment operations | 0.13 | 0.96 | 0.50 | 0.42 | 1.36 | 0.23 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.32 | ) | (0.64 | ) | (0.59 | ) | (0.58 | ) | (0.58 | ) | (0.64 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.32 | ) | (0.64 | ) | (0.59 | ) | (0.58 | ) | (0.58 | ) | (0.64 | ) | |||||||||
Net asset value, end of period | $ | 8.73 | $ | 8.92 | $ | 8.60 | $ | 8.69 | $ | 8.85 | $ | 8.07 | |||||||||
Total return | 1.65 | % | 11.60 | % | 6.00 | % | 4.83 | % | 17.36 | % | 3.03 | % | |||||||||
Net assets, end of period (in millions) | $5 | $11 | $10 | $9 | $10 | $4 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.22 | %(1) | 1.20 | % | 1.25 | % | 1.30 | % | 1.30 | % | 1.08 | % | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 7.59 | %(1) | 7.37 | % | 6.90 | % | 6.57 | % | 6.82 | % | 7.22 | % | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.22 | %(1)(2) | 1.20 | %(2) | 1.25 | %(2) | 1.30 | %(2) | 1.30 | %(2) | 1.61 | % | |||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 7.59 | %(1)(2) | 7.37 | %(2) | 6.90 | %(2) | 6.57 | %(2) | 6.82 | %(2) | 6.69 | % | |||||||||
Portfolio turnover rate | 50 | % | 98 | % | 45 | % | 54 | % | 78 | % | 52 | % |
(1)Annualized.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY LARGE CAP GROWTH FUND
Portfolio Highlights
On September 30, 2007, Ivy Large Cap Growth Fund had net assets totaling $390,860,836 invested in a diversified portfolio of:
78.33% | Domestic Common Stocks | |
11.73% | Cash and Cash Equivalents | |
9.94% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund owned:
Technology Stocks | $ | 28.57 | |||
Health Care Stocks | $ | 12.47 | |||
Cash and Cash Equivalents | $ | 11.73 | |||
Consumer Nondurables Stocks | $ | 7.27 | |||
Financial Services Stocks | $ | 6.94 | |||
Energy Stocks | $ | 6.59 | |||
Capital Goods Stocks | $ | 6.21 | |||
Consumer Services Stocks | $ | 5.25 | |||
Miscellaneous Stocks | $ | 5.15 | |||
Consumer Durables Stocks | $ | 5.00 | |||
Raw Materials Stocks | $ | 4.82 |
The Investments of Ivy Large Cap Growth Fund | |||||||
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Aircraft - 3.67% | |||||||
Boeing Company (The) | 102,800 | $ | 10,792,972 | ||||
United Technologies Corporation | 44,200 | 3,557,216 | |||||
14,350,188 | |||||||
Beverages - 2.65% | |||||||
PepsiCo, Inc. | 141,400 | 10,358,964 | |||||
Capital Equipment - 4.42% | |||||||
Deere & Company | 106,900 | 15,866,098 | |||||
Joy Global Inc. | 27,500 | 1,397,688 | |||||
17,263,786 | |||||||
Chemicals - Petroleum and Inorganic - 4.82% | |||||||
Monsanto Company | 219,900 | 18,854,226 | |||||
Communications Equipment - 8.41% | |||||||
Cisco Systems, Inc.* | 503,629 | 16,682,711 | |||||
Nokia Corporation, Series A, ADR | 335,400 | 12,721,722 | |||||
QUALCOMM Incorporated | 81,500 | 3,443,375 | |||||
32,847,808 | |||||||
Computers - Main and Mini - 3.23% | |||||||
Hewlett-Packard Company | 253,700 | 12,631,723 | |||||
Computers - Micro - 5.29% | |||||||
Apple Inc.* | 134,700 | 20,674,429 | |||||
Computers - Peripherals - 4.42% | |||||||
Adobe Systems Incorporated* | 256,200 | 11,188,254 | |||||
Electronic Arts Inc.* | 108,900 | 6,099,489 | |||||
17,287,743 | |||||||
Consumer Electronics - 5.00% | |||||||
Research In Motion Limited* | 198,500 | 19,558,205 | |||||
Defense - 1.69% | |||||||
General Dynamics Corporation | 78,200 | 6,605,554 | |||||
Electrical Equipment - 0.85% | |||||||
Emerson Electric Co. | 62,600 | 3,331,572 | |||||
Electronic Components - 0.76% | |||||||
Microchip Technology Incorporated | 81,200 | 2,947,560 | |||||
Electronic Instruments - 1.10% | |||||||
Thermo Fisher Scientific Inc.* | 74,700 | 4,311,684 | |||||
Food and Related - 0.67% | |||||||
Wm. Wrigley Jr. Company | 40,600 | 2,607,738 | |||||
Health Care - Drugs - 10.76% | |||||||
Abbott Laboratories | 201,500 | 10,804,430 | |||||
Alcon, Inc. | 25,600 | 3,684,352 | |||||
Allergan, Inc. | 63,700 | 4,106,739 | |||||
Genentech, Inc.* | 74,400 | 5,804,688 | |||||
Gilead Sciences, Inc.* | 283,600 | 11,586,478 | |||||
Schering-Plough Corporation | 191,300 | 6,050,819 | |||||
42,037,506 | |||||||
Health Care - General - 1.71% | |||||||
Baxter International Inc. | 46,700 | 2,628,276 | |||||
Zimmer Holdings, Inc.* | 50,200 | 4,065,698 | |||||
6,693,974 | |||||||
Hotels and Gaming - 5.25% | |||||||
Las Vegas Sands, Inc.* | 153,800 | 20,519,996 | |||||
Household - General Products - 3.95% | |||||||
Colgate-Palmolive Company | 216,300 | 15,426,516 | |||||
Insurance - Life - 1.32% | |||||||
Aflac Incorporated | 90,600 | 5,167,824 | |||||
Multiple Industry - 1.48% | |||||||
VMware, Inc., Class A* | 68,000 | 5,780,000 | |||||
Non-Residential Construction - 0.94% | |||||||
Fluor Corporation | 25,600 | 3,685,888 | |||||
Petroleum - Services - 6.59% | |||||||
Schlumberger Limited | 117,800 | 12,369,000 | |||||
Smith International, Inc. | 187,324 | 13,374,934 | |||||
25,743,934 | |||||||
Retail - General Merchandise - 1.48% | |||||||
Kohl's Corporation* | 101,100 | 5,796,063 | |||||
Security and Commodity Brokers - 5.62% | |||||||
CME Group Inc. | 25,043 | 14,709,006 | |||||
Goldman Sachs Group, Inc. (The) | 20,100 | 4,356,474 | |||||
UBS AG | 54,300 | 2,891,475 | |||||
21,956,955 | |||||||
Timesharing and Software - 2.19% | |||||||
Google Inc., Class A* | 15,100 | 8,569,023 | |||||
TOTAL COMMON STOCKS - 88.27% | $ | 345,008,859 | |||||
(Cost: $244,494,745) | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | ||||||
Banks - 1.02% | |||||||
Lloyds TSB Bank PLC, | |||||||
5.04%, 10-17-07 | $ | 4,000 | 3,991,040 | ||||
Beverages - 0.26% | |||||||
Diageo Capital plc (Diageo plc), | |||||||
5.37%, 10-10-07 | 1,000 | 998,657 | |||||
Capital Equipment - 1.66% | |||||||
Deere (John) Capital Corporation, | |||||||
5.07%, 10-19-07 | 1,500 | 1,496,198 | |||||
Deere (John) Credit Limited (Deere (John) Capital Corporation), | |||||||
4.9%, 10-31-07 | 5,000 | 4,979,583 | |||||
6,475,781 | |||||||
Finance Companies - 0.51% | |||||||
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)), | |||||||
5.0%, 10-2-07 | 2,000 | 1,999,722 | |||||
Food and Related - 1.79% | |||||||
ConAgra Foods, Inc., | |||||||
5.23%, 10-3-07 | 2,000 | 1,999,419 | |||||
Heinz (H.J.) Finance Co. (Heinz (H.J.) Co.), | |||||||
5.4%, 10-12-07 | 5,000 | 4,991,750 | |||||
6,991,169 | |||||||
Health Care - General - 1.40% | |||||||
Johnson & Johnson, | |||||||
4.72%, 10-23-07 | 5,500 | 5,484,136 | |||||
Household - General Products - 2.30% | |||||||
Clorox Co., | |||||||
5.42%, 10-9-07 | 7,000 | 6,991,569 | |||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)), | |||||||
5.0%, 11-8-07 | 2,000 | 1,989,444 | |||||
8,981,013 | |||||||
Multiple Industry - 0.76% | |||||||
Honeywell International Inc., | |||||||
4.76%, 11-21-07 | 3,000 | 2,979,770 | |||||
Utilities - Electric - 1.60% | |||||||
New York State Electric & Gas Corp., | |||||||
5.57%, 10-1-07 | 2,000 | 2,000,000 | |||||
PacifiCorp, | |||||||
5.32%, 10-1-07 | 4,256 | 4,256,000 | |||||
6,256,000 | |||||||
TOTAL SHORT-TERM SECURITIES - 11.30% | $ | 44,157,288 | |||||
(Cost: $44,157,288) | |||||||
TOTAL INVESTMENT SECURITIES - 99.57% | $ | 389,166,147 | |||||
(Cost: $288,652,033) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.43% | 1,64,689 | ||||||
NET ASSETS - 100.00% | $ | 390,860,836 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY LARGE CAP GROWTH FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $288,652) (Notes 1 and 3) | $ | 389,166 | ||
Receivables: | ||||
Fund shares sold | 5,300 | |||
Dividends and interest | 128 | |||
Prepaid and other assets | 252 | |||
Total assets | 394,846 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 3,384 | |||
Payable to Fund shareholders | 258 | |||
Due to custodian | 217 | |||
Accrued shareholder servicing (Note 2) | 85 | |||
Accrued management fee (Note 2) | 22 | |||
Accrued accounting services fee (Note 2) | 9 | |||
Accrued distribution fee (Note 2) | 4 | |||
Accrued service fee (Note 2) | 6 | |||
Total liabilities | 3,985 | |||
Total net assets | $ | 390,861 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 271 | ||
Additional paid-in capital | 293,727 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (256 | ) | ||
Accumulated undistributed net realized loss on investment transactions | (3,395 | ) | ||
Net unrealized appreciation in value of investments | 100,514 | |||
Net assets applicable to outstanding units of capital | $ | 390,861 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $14.50 | |||
Class B | $13.28 | |||
Class C | $13.65 | |||
Class E | $14.49 | |||
Class I | $14.81 | |||
Class R | $14.42 | |||
Class Y | $14.69 | |||
Capital shares outstanding: | ||||
Class A | 17,908 | |||
Class B | 1,136 | |||
Class C | 1,577 | |||
Class E | 12 | |||
Class I | 92 | |||
Class R | 10 | |||
Class Y | 6,322 | |||
Capital shares authorized | 330,000 |
See Notes to Financial Statements.
Statement of Operations
IVY LARGE CAP GROWTH FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Dividends (net of foreign withholding taxes of $53) | $ | 1,215 | ||
Interest and amortization | 258 | |||
Total income | 1,473 | |||
Expenses (Note 2): | ||||
Investment management fee | 946 | |||
Shareholder servicing: | ||||
Class A | 261 | |||
Class B | 33 | |||
Class C | 31 | |||
Class E | –– | * | ||
Class I | 1 | |||
Class R | –– | * | ||
Class Y | 48 | |||
Service fee: | ||||
Class A | 225 | |||
Class B | 16 | |||
Class C | 24 | |||
Class R | –– | * | ||
Distribution fee: | ||||
Class B | 47 | |||
Class C | 72 | |||
Class E | –– | * | ||
Class R | –– | * | ||
Class Y | 73 | |||
Accounting services fee | 51 | |||
Audit fees | 15 | |||
Custodian fees | 5 | |||
Legal fees | 2 | |||
Other | 103 | |||
Total | 1,953 | |||
Less expenses in excess of voluntary limit (Note 2) | (250 | ) | ||
Total expenses | 1,703 | |||
Net investment loss | (230 | ) | ||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 5,843 | |||
Unrealized appreciation in value of investments during the period | 53,331 | |||
Net gain on investments | 59,174 | |||
Net increase in net assets resulting from operations | $ | 58,944 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY LARGE CAP GROWTH FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment loss | $ | (230 | ) | $ | (869 | ) | |||
Realized net gain on investments | 5,843 | 9,794 | |||||||
Unrealized appreciation (depreciation) | 53,331 | (4,646 | ) | ||||||
Net increase in net assets resulting from operations | 58,944 | 4,279 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (–– | ) | |||||
Class R | (–– | ) | (–– | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (–– | ) | |||||
Class R | (–– | ) | (–– | ) | |||||
(–– | ) | (–– | ) | ||||||
Capital share transactions (Note 5) | 80,198 | (3,461 | ) | ||||||
Total increase | 139,142 | 818 | |||||||
NET ASSETS | |||||||||
Beginning of period | 251,719 | 250,901 | |||||||
End of period | $ | 390,861 | $ | 251,719 | |||||
Undistributed net investment loss | $ | (256 | ) | $ | (26 | ) | |||
(1)See "Financial Highlights" on pages 113 - 119.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.82 | $ | 11.61 | $ | 9.54 | $ | 9.27 | $ | 7.24 | $ | 9.21 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.03 | ) | (0.06 | ) | (0.03 | ) | (0.04 | ) | (0.03 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.69 | 0.24 | 2.13 | 0.30 | 2.07 | (1.94 | ) | |||||||||||||||||
Total from investment operations | 2.68 | 0.21 | 2.07 | 0.27 | 2.03 | (1.97 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 14.50 | $ | 11.82 | $ | 11.61 | $ | 9.54 | $ | 9.27 | $ | 7.24 | ||||||||||||
Total return(1) | 22.67 | % | 1.81 | % | 21.70 | % | 2.91 | % | 28.04 | % | - -21.39 | % | ||||||||||||
Net assets, end of period (in millions) | $260 | $162 | $157 | $82 | $76 | $21 | ||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.15 | %(2) | 1.20 | % | 1.41 | % | 1.50 | % | 1.55 | % | 1.28 | % | ||||||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.07 | %(2) | - -0.25 | % | - -0.62 | % | - -0.31 | % | - -0.89 | % | - -0.23 | % | ||||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.37 | %(2) | 1.39 | % | 1.41 | %(3) | 1.52 | % | 1.55 | %(3) | 1.66 | % | ||||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.29 | %(2) | - -0.44 | % | - -0.62 | %(3) | - -0.33 | % | - -0.89 | %(3) | - -0.61 | % | ||||||||||||
Portfolio turnover rate | 36 | % | 93 | % | 79 | % | 131 | % | 162 | % | 72 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 10.89 | $ | 10.83 | $ | 8.99 | $ | 8.83 | $ | 6.99 | $ | 9.05 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.05 | ) | (0.12 | ) | (0.14 | ) | (0.05 | ) | (0.13 | ) | (0.14 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.44 | 0.18 | 1.98 | 0.21 | 1.97 | (1.92 | ) | |||||||||||||||||
Total from investment operations | 2.39 | 0.06 | 1.84 | 0.16 | 1.84 | (2.06 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 13.28 | $ | 10.89 | $ | 10.83 | $ | 8.99 | $ | 8.83 | $ | 6.99 | ||||||||||||
Total return | 21.95 | % | 0.55 | % | 20.47 | % | 1.81 | % | 26.32 | % | - -22.76 | % | ||||||||||||
Net assets, end of period (in millions) | $15 | $12 | $11 | $8 | $5 | $2 | ||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.37 | %(1) | 2.42 | % | 2.45 | % | 2.53 | % | 2.85 | % | 2.93 | % | ||||||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.28 | %(1) | - -1.48 | % | - -1.65 | % | - -1.30 | % | - -2.16 | % | - -1.87 | % | ||||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.37 | %(1)(2) | 2.42 | %(2) | 2.45 | %(2) | 2.53 | %(2) | 2.85 | %(2) | 3.31 | % | ||||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.28 | %(1)(2) | - -1.48 | %(2) | - -1.65 | %(2) | - -1.30 | %(2) | - -2.16 | %(2) | - -2.25 | % | ||||||||||||
Portfolio turnover rate | 36 | % | 93 | % | 79 | % | 131 | % | 162 | % | 72 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.18 | $ | 11.09 | $ | 9.18 | $ | 8.99 | $ | 7.08 | $ | 9.10 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment loss | (0.08 | ) | (0.12 | ) | (0.10 | ) | (0.09 | ) | (0.11 | ) | (0.10 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 2.55 | 0.21 | 2.01 | 0.28 | 2.02 | (1.92 | ) | |||||||||||||||||
Total from investment operations | 2.47 | 0.09 | 1.91 | 0.19 | 1.91 | (2.02 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 13.65 | $ | 11.18 | $ | 11.09 | $ | 9.18 | $ | 8.99 | $ | 7.08 | ||||||||||||
Total return | 22.09 | % | 0.81 | % | 20.81 | % | 2.11 | % | 26.98 | % | - -22.28 | % | ||||||||||||
Net assets, end of period (in millions) | $22 | $19 | $17 | $12 | $11 | $4 | ||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.14 | %(1) | 2.18 | % | 2.21 | % | 2.25 | % | 2.44 | % | 2.26 | % | ||||||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.05 | %(1) | - -1.23 | % | - -1.42 | % | - -1.06 | % | - -1.75 | % | - -1.20 | % | ||||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.14 | %(1)(2) | 2.18 | %(2) | 2.21 | %(2) | 2.28 | % | 2.44 | %(2) | 2.64 | % | ||||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.05 | %(1)(2) | - -1.23 | %(2) | - -1.42 | %(2) | - -1.09 | % | - -1.75 | %(2) | - -1.58 | % | ||||||||||||
Portfolio turnover rate | 36 | % | 93 | % | 79 | % | 131 | % | 162 | % | 72 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 11.82 | |||
Income from investment operations: | |||||
Net investment income | 0.02 | (2) | |||
Net realized and unrealized gain on investments | 2.65 | (2) | |||
Total from investment operations | 2.67 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 14.49 | |||
Total return(3) | 22.38 | % | |||
Net assets, end of period (in thousands) | $175 | ||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.33 | %(4) | |||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.27 | %(4) | |||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.69 | %(4) | |||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.63 | %(4) | |||
Portfolio turnover rate | 36 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 11.97 | |||
Income from investment operations: | |||||
Net investment income | 0.05 | (2) | |||
Net realized and unrealized gain on investments | 2.79 | (2) | |||
Total from investment operations | 2.84 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 14.81 | |||
Total return | 23.52 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets | 0.98 | %(3) | |||
Ratio of net investment income to average net assets | 0.14 | %(3) | |||
Portfolio turnover rate | 36 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended 9-30-07 | For the fiscal year ended 3-31-07 | For the period from 12-29-05(1) to 3-31-06 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net asset value, beginning of period | $ | 11.78 | $ | 11.60 | $ | 11.27 | |||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss | (0.03 | ) | (0.06 | ) | (0.03 | ) | |||||||||
Net realized and unrealized gain on investments | 2.67 | 0.24 | 0.36 | ||||||||||||
Total from investment operations | 2.64 | 0.18 | 0.33 | ||||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 14.42 | $ | 11.78 | $ | 11.60 | |||||||||
Total return | 22.41 | % | 1.55 | % | 2.93 | % | |||||||||
Net assets, end of period (in thousands) | $144 | $117 | $103 | ||||||||||||
Ratio of expenses to average net assets | 1.50 | %(2) | 1.51 | % | 1.56 | %(2) | |||||||||
Ratio of net investment loss to average net assets | - -0.42 | %(2) | - -0.57 | % | - -0.88 | %(2) | |||||||||
Portfolio turnover rate | 36 | % | 93 | % | 79 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY LARGE CAP GROWTH FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
Net asset value, beginning of period | $ | 11.97 | $ | 11.74 | $ | 9.62 | $ | 9.32 | $ | 7.26 | $ | 9.22 | ||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.01 | ) | (0.04 | ) | 0.00 | (0.03 | ) | (0.30 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.74 | 0.24 | 2.16 | 0.30 | 2.09 | (1.66 | ) | |||||||||||||||||
Total from investment operations | 2.72 | 0.23 | 2.12 | 0.30 | 2.06 | (1.96 | ) | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||||||
Net asset value, end of period | $ | 14.69 | $ | 11.97 | $ | 11.74 | $ | 9.62 | $ | 9.32 | $ | 7.26 | ||||||||||||
Total return | 22.72 | % | 1.96 | % | 22.04 | % | 3.22 | % | 28.38 | % | - -21.26 | % | ||||||||||||
Net assets, end of period (in millions) | $93 | $59 | $66 | $50 | $59 | $1 | ||||||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.06 | %(1) | 1.08 | % | 1.20 | % | 1.20 | % | 1.26 | % | 1.05 | % | ||||||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | 0.03 | %(1) | - -0.13 | % | - -0.40 | % | - -0.01 | % | - -0.64 | % | 0.00 | % | ||||||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.23 | %(1) | 1.19 | % | 1.21 | % | 1.25 | % | 1.26 | %(2) | 1.43 | % | ||||||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.14 | %(1) | - -0.24 | % | - -0.41 | % | - -0.06 | % | - -0.64 | %(2) | - -0.38 | % | ||||||||||||
Portfolio turnover rate | 36 | % | 93 | % | 79 | % | 131 | % | 162 | % | 72 | % |
(1)Annualized.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY LIMITED-TERM BOND FUND
Portfolio Highlights
On September 30, 2007, Ivy Limited-Term Bond Fund had net assets totaling $66,163,973 invested in a diversified portfolio of:
82.43% | United States Government and Government Agency Obligations | |
10.59% | Corporate Debt Securities | |
5.97% | Cash and Cash Equivalents | |
1.01% | Municipal Obligations - Taxable |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund owned:
United States Government Mortgage-Backed Obligations | $ | 31.51 | |||
United States Government Agency Obligations | $ | 28.06 | |||
United States Government Treasury Obligations | $ | 22.86 | |||
Cash and Cash Equivalents | $ | 5.97 | |||
Miscellaneous Bonds | $ | 3.09 | |||
Technology Bonds | $ | 1.51 | |||
Raw Materials Bonds | $ | 1.51 | |||
Business Equipment and Services Bonds | $ | 1.50 | |||
Consumer Services Bonds | $ | 1.49 | |||
Multi-Industry Bonds | $ | 1.49 | |||
Municipal Obligations - Taxable | $ | 1.01 |
On September 30, 2007, the breakdown of bonds (by ratings) held by the Fund was as follows:
AAA | 79.36 | % | |||
AA | 3.05 | % | |||
A | 5.57 | % | |||
BBB | 1.49 | % | |||
Not Rated | 4.56 | % | |||
Cash and Cash Equivalents | 5.97 | % |
Ratings reflected in the wheel are taken from Standard & Poor's.
Certain U.S. government securities in which the Fund may invest, such as Treasury securities and securities issued by the Government National Mortgage Association (Ginnie Mae), are backed by the full faith and credit of the U.S. government. However, other U.S. government securities in which the Fund may invest, such as securities issued by the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal Home Loan Banks (FHLB), are not backed by the full faith and credit of the U.S. government, are not insured or guaranteed by the U.S. government and, instead, may be supported only by the right of the issuer to borrow from the U.S. Treasury or by the credit of the issuer.
The Investments of Ivy Limited-Term Bond Fund | |||||||
September 30, 2007 (Unaudited) | |||||||
CORPORATE DEBT SECURITIES | Principal Amount in Thousands | Value | |||||
Broadcasting - 1.49% | |||||||
Cox Communications, Inc., | |||||||
4.625%, 1-15-10 | $ | 1,000 | $ | 987,866 | |||
Business Equipment and Services - 1.50% | |||||||
International Lease Finance Corporation, | |||||||
5.0%, 4-15-10 | 1,000 | 995,502 | |||||
Communications Equipment - 1.51% | |||||||
Cisco Systems, Inc., | |||||||
5.575%, 2-20-09 (A) | 1,000 | 998,114 | |||||
Health Care - Drugs - 0.77% | |||||||
Abbott Laboratories, | |||||||
5.6%, 5-15-11 | 500 | 509,150 | |||||
Mining - 1.51% | |||||||
BHP Billiton Finance (USA) Limited, | |||||||
5.0%, 12-15-10 | 1,000 | 1,001,432 | |||||
Multiple Industry - 1.49% | |||||||
General Electric Capital Corporation, | |||||||
5.48%, 4-10-12 (A) | 1,000 | 986,919 | |||||
Petroleum - Domestic - 0.78% | |||||||
Duke Energy Corporation, | |||||||
6.25%, 1-15-12 | 500 | 517,476 | |||||
Security and Commodity Brokers - 0.78% | |||||||
Merrill Lynch & Co., Inc., | |||||||
6.05%, 8-15-12 | 500 | 512,660 | |||||
Utilities - Telephone - 0.76% | |||||||
SBC Communications Inc., | |||||||
5.785%, 11-14-08 (A) | 500 | 500,403 | |||||
TOTAL CORPORATE DEBT SECURITIES - 10.59% | $ | 7,009,522 | |||||
(Cost: $11,993,261) | |||||||
| |||||||
MUNICIPAL OBLIGATIONS - TAXABLE - 1.01% | |||||||
Missouri | |||||||
Missouri Development Finance Board, Taxable Infrastructure Facilities Revenue Bonds (City of Independence, Missouri - Crackerneck Creek Project), Series 2006A: | |||||||
5.3%, 3-1-09 | 150 | 150,417 | |||||
5.35%, 3-1-10 | 515 | 517,400 | |||||
(Cost: $665,000) | $ | 667,817 | |||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | |||||||
Agency Obligations - 28.06% | |||||||
Federal Agricultural Mortgage Corporation Guaranteed Notes Trust 2006-1, | |||||||
4.875%, 1-14-11 (B) | 3,000 | 3,018,300 | |||||
Federal Home Loan Bank, | |||||||
5.0%, 2-29-08 | 1,000 | 1,000,205 | |||||
Federal Home Loan Mortgage Corporation: | |||||||
3.625%, 9-15-08 | 2,350 | 2,328,258 | |||||
5.0%, 10-18-10 | 1,000 | 1,013,972 | |||||
5.375%, 1-9-14 | 2,500 | 2,510,273 | |||||
Federal National Mortgage Association: | |||||||
5.35%, 4-21-08 | 1,500 | 1,500,413 | |||||
5.08%, 5-14-10 | 3,000 | 3,024,423 | |||||
5.3%, 5-7-12 | 1,150 | 1,157,799 | |||||
5.5%, 3-26-14 | 3,000 | 3,009,348 | |||||
18,562,991 | |||||||
Mortgage-Backed Obligations - 31.51% | |||||||
Federal Home Loan Mortgage Corporation Adjustable Rate Participation Certificates: | |||||||
5.438%, 4-1-36 (A) | 855 | 851,281 | |||||
5.692%, 7-1-36 (A) | 1,335 | 1,340,952 | |||||
Federal Home Loan Mortgage Corporation Agency REMIC/CMO: | |||||||
4.0%, 12-15-12 | 284 | 275,678 | |||||
3.5%, 12-15-16 | 649 | 628,115 | |||||
5.5%, 10-15-23 (Interest Only) | 1,532 | 65,763 | |||||
5%, 6-15-24 (Interest Only) | 1,619 | 96,927 | |||||
4.25%, 3-15-31 | 428 | 416,507 | |||||
4.0%, 11-15-32 | 929 | 895,380 | |||||
5.5%, 5-15-34 | 799 | 803,250 |
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates: | |||||||
4.5%, 5-1-10 | 542 | 535,699 | |||||
5.5%, 1-1-17 | 150 | 149,747 | |||||
5.5%, 5-1-17 | 153 | 153,259 | |||||
4.5%, 4-1-18 | 991 | 956,934 | |||||
6.0%, 11-1-36 | 2,330 | 2,333,412 | |||||
Federal Home Loan Mortgage Corporation Non-Agency REMIC/CMO, | |||||||
5.5%, 3-15-31 | 1,500 | 1,505,416 | |||||
Federal National Mortgage Association Agency REMIC/CMO: | |||||||
5.5%, 6-25-18 | 2,458 | 2,458,418 | |||||
5.0%, 9-25-18 | 1,500 | 1,471,775 | |||||
5.0%, 6-25-22 | 861 | 856,391 | |||||
5.5%, 11-25-36 (Interest Only) | 1,659 | 487,148 | |||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
7.0%, 10-1-14 | 25 | 25,450 | |||||
5.5%, 2-1-17 | 480 | 480,306 | |||||
5.0%, 11-1-17 | 541 | 532,096 | |||||
5.5%, 1-1-18 | 510 | 510,024 | |||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | |||||||
6.5%, 1-15-14 | 40 | 41,226 | |||||
6.0%, 5-15-14 | 136 | 137,529 | |||||
5.5%, 1-15-17 | 221 | 221,840 | |||||
6.0%, 1-15-17 | 142 | 143,716 | |||||
5.5%, 7-15-17 | 355 | 356,207 | |||||
5.0%, 12-15-17 | 997 | 982,491 | |||||
4.0%, 9-15-18 | 1,032 | 976,698 | |||||
7.0%, 10-15-28 | 29 | 30,475 | |||||
7.0%, 4-15-29 | 17 | 17,589 | |||||
7.0%, 7-15-29 | 42 | 44,396 | |||||
Government National Mortgage Association Non-Agency REMIC/CMO, | |||||||
4.0%, 1-16-30 | 70 | 66,591 | |||||
20,848,686 |
Treasury Obligations - 22.86% | |||||||
United States Treasury Notes: | |||||||
4.0%, 4-15-10 | 11,000 | 10,998,284 | |||||
5.0%, 2-15-11 | 1,000 | 1,029,609 | |||||
5.0%, 8-15-11 | 3,000 | 3,098,202 | |||||
15,126,095 | |||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS - 82.43% | $ | 54,537,772 | |||||
(Cost: $49,318,897) | |||||||
| |||||||
SHORT-TERM SECURITIES | |||||||
Forest and Paper Products - 2.94% | |||||||
Sonoco Products Co., | |||||||
5.6%, 10-1-07 | 1,941 | 1,941,000 | |||||
Household - General Products - 3.02% | |||||||
Fortune Brands Inc., | |||||||
5.55%, 10-1-07 | 2,000 | 2,000,000 | |||||
TOTAL SHORT-TERM SECURITIES - 5.96% | $ | 3,941,000 | |||||
(Cost: $3,941,000) | |||||||
TOTAL INVESTMENT SECURITIES - 99.99% | $ | 66,156,111 | |||||
(Cost: $65,918,158) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.01% | 7,862 | ||||||
NET ASSETS - 100.00% | $ | 66,163,973 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
(B)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be liquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of this security amounted to 4.56% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY LIMITED-TERM BOND FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $65,918) (Notes 1 and 3) | $ | 66,156 | ||
Receivables: | ||||
Interest | 655 | |||
Fund shares sold | 182 | |||
Investment securities sold | 2 | |||
Prepaid and other assets | 37 | |||
Total assets | 67,032 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 518 | |||
Payable to Fund shareholders | 274 | |||
Accrued shareholder servicing (Note 2) | 19 | |||
Dividends payable | 15 | |||
Due to custodian | 5 | |||
Accrued accounting services fee (Note 2) | 4 | |||
Accrued management fee (Note 2) | 3 | |||
Accrued distribution fee (Note 2) | 1 | |||
Accrued service fee (Note 2) | –– | * | ||
Other | 29 | |||
Total liabilities | 868 | |||
Total net assets | $ | 66,164 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 65 | ||
Additional paid-in capital | 66,616 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | –– | |||
Accumulated undistributed net realized loss on investment transactions | (755 | ) | ||
Net unrealized appreciation in value of investments | 238 | |||
Net assets applicable to outstanding units of capital | $ | 66,164 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $10.20 | |||
Class B | $10.20 | |||
Class C | $10.20 | |||
Class E | $10.20 | |||
Class I | $10.20 | |||
Class Y | $10.20 | |||
Capital shares outstanding: | ||||
Class A | 4,731 | |||
Class B | 528 | |||
Class C | 1,101 | |||
Class E | 10 | |||
Class I | 12 | |||
Class Y | 108 | |||
Capital shares authorized | 200,000 |
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Operations
IVY LIMITED-TERM BOND FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 1,461 | ||
Expenses (Note 2): | ||||
Investment management fee | 146 | |||
Shareholder servicing: | ||||
Class A | 58 | |||
Class B | 10 | |||
Class C | 23 | |||
Class E | –– | * | ||
Class I | –– | * | ||
Class Y | 1 | |||
Service fee: | ||||
Class A | 51 | |||
Class B | 6 | |||
Class C | 14 | |||
Class E | –– | * | ||
Distribution fee: | ||||
Class B | 19 | |||
Class C | 43 | |||
Class E | –– | * | ||
Class Y | 1 | |||
Registration fees | 37 | |||
Accounting services fee | 23 | |||
Audit fees | 12 | |||
Custodian fees | 4 | |||
Legal fee | 1 | |||
Other | 6 | |||
Total expenses | 455 | |||
Net investment income | 1,006 | |||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net loss on investments | (77 | ) | ||
Unrealized appreciation in value of investments during the period | 432 | |||
Net gain on investments | 355 | |||
Net increase in net assets resulting from operations | $ | 1,361 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY LIMITED-TERM BOND FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE (DECREASE) IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment income | $ | 1,006 | $ | 1,640 | |||||
Realized net loss on investments | (77 | ) | (63 | ) | |||||
Unrealized appreciation | 432 | 867 | |||||||
Net increase in net assets resulting from operations | 1,361 | 2,444 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (750 | ) | (1,150 | ) | |||||
Class B | (71 | ) | (123 | ) | |||||
Class C | (160 | ) | (307 | ) | |||||
Class E | (2 | ) | NA | ||||||
Class I | (3 | ) | NA | ||||||
Class Y | (20 | ) | (60 | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class Y | (–– | ) | (–– | ) | |||||
(1,006 | ) | (1,640 | ) | ||||||
Capital share transactions (Note 5) | 12,377 | (867 | ) | ||||||
Total increase (decrease) | 12,732 | (63 | ) | ||||||
NET ASSETS | |||||||||
Beginning of period | 53,432 | 53,495 | |||||||
End of period | $ | 66,164 | $ | 53,432 | |||||
Undistributed net investment income | $ | –– | $ | –– | |||||
(1)See "Financial Highlights" on pages 129 - 134.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | $ | 10.20 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.18 | 0.33 | 0.30 | 0.28 | 0.29 | 0.36 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.05 | 0.15 | (0.14 | ) | (0.34 | ) | 0.03 | 0.25 | ||||||||||||
Total from investment operations | 0.23 | 0.48 | 0.16 | (0.06 | ) | 0.32 | 0.61 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.18 | ) | (0.33 | ) | (0.30 | ) | (0.28 | ) | (0.29 | ) | (0.36 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.18 | ) | (0.33 | ) | (0.30 | ) | (0.28 | ) | (0.29 | ) | (0.36 | ) | ||||||||
Net asset value, end of period | $ | 10.20 | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | ||||||||
Total return(1) | 2.27 | % | 4.89 | % | 1.59 | % | - -0.60 | % | 3.13 | % | 6.15 | % | ||||||||
Net assets, end of period (in millions) | $49 | $35 | $33 | $38 | $35 | $40 | ||||||||||||||
Ratio of expenses to average net assets | 1.31 | %(2) | 1.33 | % | 1.31 | % | 1.27 | % | 1.18 | % | 1.09 | % | ||||||||
Ratio of net investment income to average net assets | 3.69 | %(2) | 3.30 | % | 2.98 | % | 2.71 | % | 2.79 | % | 3.32 | % | ||||||||
Portfolio turnover rate | 58 | % | 41 | % | 28 | % | 36 | % | 30 | % | 49 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | $ | 10.20 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.14 | 0.24 | 0.21 | 0.18 | 0.19 | 0.27 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.05 | 0.15 | (0.14 | ) | (0.34 | ) | 0.03 | 0.25 | ||||||||||||
Total from investment operations | 0.19 | 0.39 | 0.07 | (0.16 | ) | 0.22 | 0.52 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.14 | ) | (0.24 | ) | (0.21 | ) | (0.18 | ) | (0.19 | ) | (0.27 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.14 | ) | (0.24 | ) | (0.21 | ) | (0.18 | ) | (0.19 | ) | (0.27 | ) | ||||||||
Net asset value, end of period | $ | 10.20 | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | ||||||||
Total return | 1.83 | % | 3.94 | % | 0.68 | % | - -1.51 | % | 2.18 | % | 5.18 | % | ||||||||
Net assets, end of period (in millions) | $5 | $5 | $5 | $7 | $6 | $5 | ||||||||||||||
Ratio of expenses to average net assets | 2.19 | %(1) | 2.23 | % | 2.22 | % | 2.20 | % | 2.11 | % | 2.01 | % | ||||||||
Ratio of net investment income to average net assets | 2.81 | %(1) | 2.39 | % | 2.06 | % | 1.78 | % | 1.86 | % | 2.47 | % | ||||||||
Portfolio turnover rate | 58 | % | 41 | % | 28 | % | 36 | % | 30 | % | 49 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | $ | 10.20 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.14 | 0.24 | 0.21 | 0.19 | 0.20 | 0.27 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.05 | 0.15 | (0.14 | ) | (0.34 | ) | 0.03 | 0.25 | ||||||||||||
Total from investment operations | 0.19 | 0.39 | 0.07 | (0.15 | ) | 0.23 | 0.52 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.14 | ) | (0.24 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | (0.27 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.14 | ) | (0.24 | ) | (0.21 | ) | (0.19 | ) | (0.20 | ) | (0.27 | ) | ||||||||
Net asset value, end of period | $ | 10.20 | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | ||||||||
Total return | 1.83 | % | 3.98 | % | 0.73 | % | - -1.45 | % | 2.23 | % | 5.22 | % | ||||||||
Net assets, end of period (in millions) | $11 | $12 | $13 | $17 | $22 | $30 | ||||||||||||||
Ratio of expenses to average net assets | 2.19 | %(1) | 2.20 | % | 2.17 | % | 2.14 | % | 2.05 | % | 1.98 | % | ||||||||
Ratio of net investment income to average net assets | 2.81 | %(1) | 2.42 | % | 2.12 | % | 1.84 | % | 1.92 | % | 2.59 | % | ||||||||
Portfolio turnover rate | 58 | % | 41 | % | 28 | % | 36 | % | 30 | % | 49 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.15 | |||
Income from investment operations: | |||||
Net investment income | 0.19 | (2) | |||
Net realized and unrealized gain on investments | 0.05 | (2) | |||
Total from investment operations | 0.24 | ||||
Less distributions from: | |||||
Net investment income | (0.19 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.19 | ) | |||
Net asset value, end of period | $ | 10.20 | |||
Total return(3) | 2.28 | % | |||
Net assets, end of period (in thousands) | $102 | ||||
Ratio of expenses to average net assets | 1.15 | %(4) | |||
Ratio of net investment income to average net assets | 3.83 | %(4) | |||
Portfolio turnover rate | 58 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 10.15 | |||
Income from investment operations: | |||||
Net investment income | 0.29 | (2) | |||
Net realized and unrealized gain on investments | 0.05 | (2) | |||
Total from investment operations | 0.34 | ||||
Less distributions from: | |||||
Net investment income | (0.29 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.29 | ) | |||
Net asset value, end of period | $ | 10.20 | |||
Total return | 3.24 | % | |||
Net assets, end of period (in thousands) | $123 | ||||
Ratio of expenses to average net assets | 0.98 | %(3) | |||
Ratio of net investment income to average net assets | 4.00 | %(3) | |||
Portfolio turnover rate | 58 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY LIMITED-TERM BOND FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | $ | 10.20 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.19 | 0.34 | 0.31 | 0.29 | 0.29 | 0.36 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.05 | 0.15 | (0.14 | ) | (0.34 | ) | 0.03 | 0.25 | ||||||||||||
Total from investment operations | 0.24 | 0.49 | 0.17 | (0.05 | ) | 0.32 | 0.61 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.34 | ) | (0.31 | ) | (0.29 | ) | (0.29 | ) | (0.36 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.19 | ) | (0.34 | ) | (0.31 | ) | (0.29 | ) | (0.29 | ) | (0.36 | ) | ||||||||
Net asset value, end of period | $ | 10.20 | $ | 10.15 | $ | 10.00 | $ | 10.14 | $ | 10.48 | $ | 10.45 | ||||||||
Total return | 2.35 | % | 5.06 | % | 1.72 | % | - -0.49 | % | 3.18 | % | 6.14 | % | ||||||||
Net assets, end of period (in millions) | $1 | $1 | $2 | $2 | $2 | $2 | ||||||||||||||
Ratio of expenses to average net assets | 1.17 | %(1) | 1.17 | % | 1.19 | % | 1.16 | % | 1.13 | % | 1.09 | % | ||||||||
Ratio of net investment income to average net assets | 3.83 | %(1) | 3.44 | % | 3.10 | % | 2.82 | % | 2.83 | % | 3.42 | % | ||||||||
Portfolio turnover rate | 58 | % | 41 | % | 28 | % | 36 | % | 30 | % | 49 | % |
(1)Annualized.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MID CAP GROWTH FUND
Portfolio Highlights
On September 30, 2007, the Ivy Mid Cap Growth Fund had net assets totaling $158,629,051 invested in a diversified portfolio of:
91.55% | Domestic Common Stock | |
5.23% | Cash and Cash Equivalents and Options | |
3.22% | Foreign Common Stock |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund owned:
Health Care Stocks | $ | 20.36 | |||
Technology Stocks | $ | 14.20 | |||
Financial Services Stocks | $ | 13.34 | |||
Business Equipment and Services Stocks | $ | 10.60 | |||
Retail Stocks | $ | 9.02 | |||
Energy Stocks | $ | 5.95 | |||
Consumer Nondurables Stocks | $ | 5.66 | |||
Capital Goods Stocks | $ | 5.37 | |||
Cash and Cash Equivalents and Options | $ | 5.23 | |||
Consumer Services Stocks | $ | 2.97 | |||
Transportation Stocks | $ | 2.57 | |||
Consumer Durables Stocks | $ | 2.54 | |||
Miscellaneous Stocks | $ | 2.19 |
The Investments of Ivy Mid Cap Growth Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS | Shares | Value | ||||||
Banks - 6.43% | ||||||||
Northern Trust Corporation | 75,300 | $ | 4,992,014 | |||||
Signature Bank* | 49,200 | 1,731,348 | ||||||
Synovus Financial Corp. | 123,950 | 3,476,798 | ||||||
10,200,160 | ||||||||
Beverages - 1.63% | ||||||||
Brown-Forman Corporation, Class B | 34,450 | 2,580,649 | ||||||
Business Equipment and Services - 4.09% | ||||||||
Akamai Technologies, Inc.* | 51,550 | 1,480,516 | ||||||
Bucyrus International, Inc., Class A | 18,100 | 1,319,761 | ||||||
Stericycle, Inc.* | 64,500 | 3,684,563 | ||||||
6,484,840 | ||||||||
Capital Equipment - 1.86% | ||||||||
IDEX Corporation | 81,263 | 2,957,142 | ||||||
Chemicals - Specialty - 1.00% | ||||||||
Air Products and Chemicals, Inc. | 16,200 | 1,583,712 | ||||||
Computers - Micro - 4.78% | ||||||||
Apple Inc.* | 35,950 | 5,517,786 | ||||||
Sun Microsystems, Inc.* | 367,800 | 2,065,197 | ||||||
7,582,983 | ||||||||
Computers - Peripherals - 1.00% | ||||||||
Electronic Arts Inc.* | 28,400 | 1,590,684 | ||||||
Consumer Electronics - 1.88% | ||||||||
Research In Motion Limited* | 30,300 | 2,985,459 | ||||||
Cosmetics and Toiletries - 0.72% | ||||||||
Bare Escentuals, Inc.* | 45,650 | 1,135,315 | ||||||
Electronic Components - 8.42% | ||||||||
Broadcom Corporation, Class A* | 91,525 | 3,335,629 | ||||||
MEMC Electronic Materials, Inc.* | 26,650 | 1,568,619 | ||||||
Microchip Technology Incorporated | 81,150 | 2,945,745 | ||||||
Network Appliance, Inc.* | 115,200 | 3,100,608 | ||||||
PMC-Sierra, Inc.* | 286,100 | 2,401,810 | ||||||
13,352,411 | ||||||||
Farm Machinery - 0.79% | ||||||||
AGCO Corporation* | 24,550 | 1,246,404 | ||||||
Food and Related - 3.31% | ||||||||
Hershey Foods Corporation | 45,350 | 2,104,694 | ||||||
Wm. Wrigley Jr. Company | 49,100 | 3,153,693 | ||||||
5,258,387 | ||||||||
Health Care - Drugs - 3.10% | ||||||||
Allergan, Inc. | 76,400 | 4,925,508 | ||||||
Health Care - General - 10.92% | ||||||||
DENTSPLY International Inc. | 84,600 | 3,524,013 | ||||||
Gen-Probe Incorporated* | 24,650 | 1,639,595 | ||||||
Henry Schein, Inc.* | 78,000 | 4,741,230 | ||||||
Hologic, Inc.* | 38,550 | 2,350,394 | ||||||
Kyphon Inc.* | 34,200 | 2,393,829 | ||||||
St. Jude Medical, Inc.* | 7,300 | 321,711 | ||||||
Zimmer Holdings, Inc.* | 29,000 | 2,348,710 | ||||||
17,319,482 | ||||||||
Hospital Supply and Management - 6.34% | ||||||||
C. R. Bard, Inc. | 48,900 | 4,312,491 | ||||||
Cytyc Corporation* | 63,150 | 3,006,571 | ||||||
Laboratory Corporation of America Holdings* | 35,000 | 2,738,050 | ||||||
10,057,112 | ||||||||
Insurance - Property and Casualty - 2.85% | ||||||||
AXIS Capital Holdings Limited | 54,500 | 2,120,595 | ||||||
Ambac Financial Group, Inc. | 38,100 | 2,396,871 | ||||||
4,517,466 | ||||||||
Metal Fabrication - 2.72% | ||||||||
Fastenal Company | 94,950 | 4,314,053 | ||||||
Motor Vehicles - 0.66% | ||||||||
Harley-Davidson, Inc. | 22,750 | 1,051,278 | ||||||
Petroleum - Domestic - 1.34% | ||||||||
XTO Energy Inc. (A) | 34,416 | 2,128,285 | ||||||
Petroleum - International - 1.64% | ||||||||
Noble Energy, Inc. (A) | 37,150 | 2,601,986 | ||||||
Petroleum - Services - 2.97% | ||||||||
BJ Services Company (A) | 29,350 | 779,242 | ||||||
Complete Production Services, Inc. (A)* | 42,050 | 861,184 | ||||||
National Oilwell Varco, Inc. (A)* | 10,750 | 1,553,375 | ||||||
Smith International, Inc. (A) | 21,350 | 1,524,390 | ||||||
4,718,191 | ||||||||
Publishing - 2.97% | ||||||||
Getty Images, Inc.* | 57,700 | 1,606,368 | ||||||
Meredith Corporation | 54,250 | 3,108,525 | ||||||
4,714,893 | ||||||||
Restaurants - 3.20% | ||||||||
Chipotle Mexican Grill, Inc., Class A* | 11,900 | 1,405,747 | ||||||
P.F. Chang's China Bistro, Inc.* | 59,800 | 1,768,884 | ||||||
YUM! Brands, Inc. | 56,400 | 1,908,012 | ||||||
5,082,643 | ||||||||
Retail - Food Stores - 0.96% | ||||||||
Longs Drug Stores Corporation | 30,800 | 1,529,836 | ||||||
Retail - General Merchandise - 2.06% | ||||||||
Saks Incorporated | 190,150 | 3,261,073 | ||||||
Retail - Specialty Stores - 2.80% | ||||||||
Coldwater Creek Inc.* | 135,900 | 1,475,194 | ||||||
J. Crew Group, Inc.* | 71,350 | 2,961,025 | ||||||
4,436,219 | ||||||||
Security and Commodity Brokers - 4.06% | ||||||||
CME Group Inc. | 7,050 | 4,140,817 | ||||||
TD Ameritrade Holding Corporation* | 126,450 | 2,302,654 | ||||||
6,443,471 | ||||||||
Timesharing and Software - 6.51% | ||||||||
eBay Inc.* | 89,200 | 3,483,706 | ||||||
Global Payments Inc. | 71,850 | 3,177,207 | ||||||
Paychex, Inc. | 89,200 | 3,658,538 | ||||||
10,319,451 | ||||||||
Trucking and Shipping - 2.57% | ||||||||
C.H. Robinson Worldwide, Inc. | 43,600 | 2,366,172 | ||||||
Expeditors International of Washington, Inc. | 36,050 | 1,704,083 | ||||||
4,070,255 | ||||||||
Utilities - Telephone - 1.19% | ||||||||
MetroPCS Communications, Inc.* | 68,950 | 1,880,956 | ||||||
TOTAL COMMON STOCKS - 94.77% | $ | 150,330,304 | ||||||
(Cost: $101,466,279) | ||||||||
| ||||||||
PUT OPTIONS - 0.00% | Number of Contracts | |||||||
Lehman Brothers Inc. Custom Energy Basket Collar, October 104.95, Expires 10-22-07 | 80,673 | $ | 4,033 | |||||
(Cost: $151,665) | ||||||||
|
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Commercial Paper | ||||||||
Finance Companies - 2.26% | ||||||||
Prudential Funding LLC, | ||||||||
4.75%, 10-1-07 | $ | 3,589 | 3,589,000 | |||||
Food and Related - 0.95% | ||||||||
ConAgra Foods, Inc., | ||||||||
5.23%, 10-3-07 | 1,500 | 1,499,564 | ||||||
Health Care - General - 1.89% | ||||||||
Johnson & Johnson, | ||||||||
4.73%, 10-9-07 | 3,000 | 2,996,847 | ||||||
Total Commercial Paper - 5.10% | 8,085,411 | |||||||
Commercial Paper (backed by irrevocable bank letter of credit) - 0.94% | ||||||||
Finance Companies | ||||||||
ED&F Man Treasury Management PLC (Royal Bank of Scotland PLC (The)), | ||||||||
5.0%, 10-2-07 | 1,500 | 1,499,792 | ||||||
TOTAL SHORT-TERM SECURITIES - 6.04% | $ | 9,585,203 | ||||||
(Cost: $9,585,203) | ||||||||
TOTAL INVESTMENT SECURITIES - 100.81% | $ | 159,919,540 | ||||||
(Cost: $111,203,147) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS - (0.81%) | (1,290,489 | ) | ||||||
NET ASSETS - 100.00% | $ | 158,629,051 | ||||||
Notes to Schedule of Investments | |||||||||||
*No dividends were paid during the preceding 12 months. | |||||||||||
(A)Security serves as cover for the following written call option outstanding at September 30, 2007. (See Note 6 to financial statements): | |||||||||||
Underlying Security | Contracts Subject to Call | Expiration Month/ Exercise Price | Premium Received | Market Value | |||||||
Lehman Brothers Inc. Custom Energy Basket Collar | 80,673 | October/124 | $ | 194,422 | $ | 157,312 | |||||
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. | |||||||||||
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY MID CAP GROWTH FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $111,203) (Notes 1 and 3) | $ | 159,920 | ||
Receivables: | ||||
Investment securities sold | 1,838 | |||
Fund shares sold | 192 | |||
Dividends and interest | 98 | |||
Prepaid and other assets | 43 | |||
Total assets | 162,091 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 2,884 | |||
Payable to Fund shareholders | 257 | |||
Outstanding written options at market (premium received - $194) (Note 6) | 157 | |||
Due to custodian | 62 | |||
Accrued shareholder servicing (Note 2) | 51 | |||
Accrued management fee (Note 2) | 11 | |||
Accrued accounting services fee (Note 2) | 6 | |||
Accrued distribution and service fees (Note 2) | 4 | |||
Other | 30 | |||
Total liabilities | 3,462 | |||
Total net assets | $ | 158,629 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 112 | ||
Additional paid-in capital | 138,657 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (523 | ) | ||
Accumulated undistributed net realized loss on investment transactions | (28,371 | ) | ||
Net unrealized appreciation in value of investments | 48,754 | |||
Net assets applicable to outstanding units of capital | $ | 158,629 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $14.33 | |||
Class B | $13.29 | |||
Class C | $13.62 | |||
Class E | $14.30 | |||
Class I | $14.64 | |||
Class R | $14.30 | |||
Class Y | $14.53 | |||
Capital shares outstanding: | ||||
Class A | 8,478 | |||
Class B | 858 | |||
Class C | 913 | |||
Class E | 21 | |||
Class I | 39 | |||
Class R | 9 | |||
Class Y | 843 | |||
Capital shares authorized | 350,000 |
See Notes to Financial Statements.
Statement of Operations
IVY MID CAP GROWTH FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Dividends | $ | 520 | ||
Interest and amortization | 259 | |||
Total income | 779 | |||
Expenses (Note 2): | ||||
Investment management fee | 641 | |||
Shareholder servicing: | ||||
Class A | 181 | |||
Class B | 30 | |||
Class C | 21 | |||
Class E | 1 | |||
Class I | 1 | |||
Class R | –– | * | ||
Class Y | 9 | |||
Service fee: | ||||
Class A | 144 | |||
Class B | 14 | |||
Class C | 16 | |||
Class R | –– | * | ||
Distribution fee: | ||||
Class B | 43 | |||
Class C | 47 | |||
Class E | –– | * | ||
Class R | –– | * | ||
Class Y | 14 | |||
Accounting services fee | 35 | |||
Audit fees | 16 | |||
Custodian fees | 5 | |||
Legal fees | 1 | |||
Other | 79 | |||
Total | 1,298 | |||
Less expenses in excess of voluntary limit (Note 2) | (10 | ) | ||
Total expenses | 1,288 | |||
Net investment loss | (509 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 6,811 | |||
Realized net loss on written options | (487 | ) | ||
Realized net gain on investments | 6,324 | |||
Unrealized appreciation in value of securities during the period | 7,542 | |||
Unrealized appreciation in value of written options during the period | 32 | |||
Unrealized appreciation in value of investments during the period | 7,574 | |||
Net gain on investments | 13,898 | |||
Net increase in net assets resulting from operations | $ | 13,389 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MID CAP GROWTH FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE (DECREASE) IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment loss | $ | (509 | ) | $ | (823 | ) | |||
Realized net gain on investments | 6,324 | 6,135 | |||||||
Unrealized appreciation (depreciation) | 7,574 | (868 | ) | ||||||
Net increase in net assets resulting from operations | 13,389 | 4,444 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (–– | ) | |||||
Class Y | (–– | ) | (–– | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (–– | ) | |||||
Class Y | (–– | ) | (–– | ) | |||||
(–– | ) | (–– | ) | ||||||
Capital share transactions (Note 5) | 7,772 | (6,750 | ) | ||||||
Total increase (decrease) | 21,161 | (2,306 | ) | ||||||
NET ASSETS | |||||||||
Beginning of period | 137,468 | 139,774 | |||||||
End of period | $ | 158,629 | $ | 137,468 | |||||
Undistributed net investment loss | $ | (523 | ) | $ | (21 | ) | |||
(1)See "Financial Highlights" on pages 143 - 149.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 13.07 | $ | 12.59 | $ | 9.99 | $ | 9.09 | $ | 6.67 | $ | 8.91 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.04 | ) | (0.06 | ) | (0.04 | ) | (0.09 | ) | (0.08 | ) | (0.05 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 1.30 | 0.54 | 2.64 | 0.99 | 2.50 | (2.19 | ) | |||||||||||||
Total from investment operations | 1.26 | 0.48 | 2.60 | 0.90 | 2.42 | (2.24 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | )* | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | )* | ||||||||
Net asset value, end of period | $ | 14.33 | $ | 13.07 | $ | 12.59 | $ | 9.99 | $ | 9.09 | $ | 6.67 | ||||||||
Total return(1) | 9.63 | % | 3.89 | % | 26.03 | % | 9.90 | % | 36.28 | % | - -25.13 | % | ||||||||
Net assets, end of period (in millions) | $122 | $104 | $105 | $68 | $50 | $14 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.59 | %(2) | 1.59 | % | 1.62 | % | 1.65 | % | 1.84 | % | 1.17 | % | ||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -0.56 | %(2) | - -0.48 | % | - -0.30 | % | - -0.95 | % | - -1.20 | % | - -0.49 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.59 | %(2)(3) | 1.59 | %(3) | 1.62 | %(3) | 1.70 | % | 1.89 | % | 2.02 | % | ||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -0.56 | %(2)(3) | - -0.48 | %(3) | - -0.30 | %(3) | - -1.00 | % | - -1.25 | % | - -1.34 | % | ||||||||
Portfolio turnover rate | 21 | % | 25 | % | 28 | % | 25 | % | 24 | % | 36 | % |
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 12.18 | $ | 11.85 | $ | 9.50 | $ | 8.75 | $ | 6.49 | $ | 8.81 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.13 | ) | (0.23 | ) | (0.18 | ) | (0.23 | ) | (0.17 | ) | (0.14 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 1.24 | 0.56 | 2.53 | 0.98 | 2.43 | (2.18 | ) | |||||||||||||
Total from investment operations | 1.11 | 0.33 | 2.35 | 0.75 | 2.26 | (2.32 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 13.29 | $ | 12.18 | $ | 11.85 | $ | 9.50 | $ | 8.75 | $ | 6.49 | ||||||||
Total return | 9.11 | % | 2.79 | % | 24.74 | % | 8.57 | % | 34.82 | % | - -26.33 | % | ||||||||
Net assets, end of period (in millions) | $11 | $11 | $12 | $11 | $12 | $2 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.57 | %(1) | 2.62 | % | 2.70 | % | 2.81 | % | 3.04 | % | 2.73 | % | ||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.53 | %(1) | - -1.52 | % | - -1.43 | % | - -2.12 | % | - -2.37 | % | - -2.05 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.57 | %(1)(2) | 2.62 | %(2) | 2.70 | %(2) | 2.81 | %(2) | 3.09 | % | 3.58 | % | ||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.53 | %(1)(2) | - -1.52 | %(2) | - -1.43 | %(2) | - -2.12 | %(2) | - -2.43 | % | - -2.90 | % | ||||||||
Portfolio turnover rate | 21 | % | 25 | % | 28 | % | 25 | % | 24 | % | 36 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 12.48 | $ | 12.10 | $ | 9.67 | $ | 8.86 | $ | 6.56 | $ | 8.85 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.11 | ) | (0.19 | ) | (0.12 | ) | (0.15 | ) | (0.13 | ) | (0.10 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 1.25 | 0.57 | 2.55 | 0.96 | 2.43 | (2.19 | ) | |||||||||||||
Total from investment operations | 1.14 | 0.38 | 2.43 | 0.81 | 2.30 | (2.29 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 13.62 | $ | 12.48 | $ | 12.10 | $ | 9.67 | $ | 8.86 | $ | 6.56 | ||||||||
Total return | 9.21 | % | 3.14 | % | 25.13 | % | 9.14 | % | 35.06 | % | - -25.88 | % | ||||||||
Net assets, end of period (in millions) | $12 | $12 | $14 | $11 | $10 | $3 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.35 | %(1) | 2.35 | % | 2.35 | % | 2.35 | % | 2.59 | % | 2.18 | % | ||||||||
Ratio of net investment loss to average net assets including voluntary expense waiver | - -1.32 | %(1) | - -1.25 | % | - -1.09 | % | - -1.66 | % | - -1.98 | % | - -1.50 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.37 | %(1)(2) | 2.42 | % | 2.40 | % | 2.46 | % | 2.64 | % | 3.03 | % | ||||||||
Ratio of net investment loss to average net assets excluding voluntary expense waiver | - -1.34 | %(1)(2) | - -1.32 | % | - -1.14 | % | - -1.77 | % | - -2.03 | % | - -2.35 | % | ||||||||
Portfolio turnover rate | 21 | % | 25 | % | 28 | % | 25 | % | 24 | % | 36 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 13.08 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.09 | )(2) | |||
Net realized and unrealized gain on investments | 1.31 | (2) | |||
Total from investment operations | 1.22 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 14.30 | |||
Total return(3) | 8.99 | % | |||
Net assets, end of period (in thousands) | $297 | ||||
Ratio of expenses to average net assets | 2.27 | %(4) | |||
Ratio of net investment loss to average net assets | - -1.25 | %(4) | |||
Portfolio turnover rate | 21 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through 9-30-07 | |||||
---|---|---|---|---|---|
Net asset value, beginning of period | $ | 13.23 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.01 | )(2) | |||
Net realized and unrealized gain on investments | 1.42 | (2) | |||
Total from investment operations | 1.41 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 14.64 | |||
Total return | 10.24 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets | 1.16 | %(3) | |||
Ratio of net investment loss to average net assets | - -0.11 | %(3) | |||
Portfolio turnover rate | 21 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended 9-30-07 | For the fiscal year ended 3-31-07 | For the period from 12-29-05(1) to 3-31-06 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net asset value, beginning of period | $ | 13.05 | $ | 12.58 | $ | 11.77 | |||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.07 | ) | 0.02 | ||||||||||
Net realized and unrealized gain on investments | 1.30 | 0.54 | 0.79 | ||||||||||||
Total from investment operations | 1.25 | 0.47 | 0.81 | ||||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 14.30 | $ | 13.05 | $ | 12.58 | |||||||||
Total return | 9.58 | % | 3.74 | % | 6.88 | % | |||||||||
Net assets, end of period (in thousands) | $129 | $111 | $107 | ||||||||||||
Ratio of expenses to average net assets | 1.67 | %(2) | 1.71 | % | 1.75 | %(2) | |||||||||
Ratio of net investment income (loss) to average net assets | - -0.63 | %(2) | - -0.59 | % | 0.73 | %(2) | |||||||||
Portfolio turnover rate | 21 | % | 25 | % | 28 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY MID CAP GROWTH FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 13.23 | $ | 12.70 | $ | 10.04 | $ | 9.09 | $ | 6.67 | $ | 8.91 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.03 | ) | 0.05 | (1) | (0.06 | ) | (0.05 | ) | (0.01 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 1.34 | 0.56 | 2.61 | (1) | 1.01 | 2.47 | (2.20 | ) | ||||||||||||
Total from investment operations | 1.30 | 0.53 | 2.66 | 0.95 | 2.42 | (2.21 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.03 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.03 | ) | ||||||||
Net asset value, end of period | $ | 14.53 | $ | 13.23 | $ | 12.70 | $ | 10.04 | $ | 9.09 | $ | 6.67 | ||||||||
Total return | 9.83 | % | 4.17 | % | 26.50 | % | 10.45 | % | 36.28 | % | - -24.86 | % | ||||||||
Net assets, end of period (in thousands) | $12,249 | $9,935 | $9,009 | $1,961 | $1,363 | $329 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.25 | %(2) | 1.25 | % | 1.25 | % | 1.25 | % | 1.72 | % | 0.86 | % | ||||||||
Ratio of net investment income (loss) to average net assets including voluntary expense waiver | - -0.22 | %(2) | - -0.15 | % | 0.43 | % | - -0.55 | % | - -0.91 | % | - -0.18 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.41 | %(2) | 1.42 | % | 1.43 | % | 1.48 | % | 1.77 | % | 1.71 | % | ||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | - -0.38 | %(2) | - -0.32 | % | 0.25 | % | - -0.78 | % | - -0.96 | % | - -1.03 | % | ||||||||
Portfolio turnover rate | 21 | % | 25 | % | 28 | % | 25 | % | 24 | % | 36 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MONEY MARKET FUND
Portfolio Highlights
On September 30, 2007, Ivy Money Market Fund had net assets totaling $83,824,975.
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund owned:
Corporate Obligations - Commercial Paper | $ | 34.94 | |||
Corporate Obligations - Notes | $ | 27.09 | |||
Municipal Obligations - Taxable | $ | 15.48 | |||
Corporate Obligations - Commercial Paper (backed by irrevocable bank letter of credit) | $ | 13.39 | |||
Corporate Obligations - Certificates of Deposit | $ | 4.41 | |||
United States Government Agency Obligations | $ | 4.10 | |||
Cash and Cash Equivalents and Other Government Securities | $ | 0.59 |
Please remember that an investment in the Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
The Investments of Ivy Money Market Fund | |||||||
September 30, 2007 (Unaudited) | |||||||
CORPORATE OBLIGATIONS | Principal Amount in Thousands | Value | |||||
Certificate of Deposit - 4.41% | |||||||
Banks | |||||||
Barclays Bank PLC, | |||||||
5.37%, 4-15-08 | $ | 1,000 | $ | 1,000,000 | |||
Citibank, N.A.: | |||||||
5.32%, 11-9-07 | 500 | 500,000 | |||||
5.47%, 11-27-07 | 500 | 500,000 | |||||
5.62%, 12-7-07 | 1,100 | 1,100,000 | |||||
Royal Bank of Scotland PLC (The), | |||||||
5.68%, 12-14-07 | 600 | 600,446 | |||||
3,700,446 | |||||||
Commercial Paper | |||||||
Banks - 5.08% | |||||||
Bank of America Corporation, | |||||||
5.45%, 11-16-07 | 700 | 695,125 | |||||
Barclays U.S. Funding Corp., | |||||||
5.35%, 1-17-08 | 2,000 | 1,967,900 | |||||
Lloyds TSB Bank PLC, | |||||||
5.59%, 10-17-07 | 1,600 | 1,596,025 | |||||
4,259,050 | |||||||
Beverages - 3.31% | |||||||
Coca-Cola Company (The), | |||||||
5.22%, 12-6-07 | 2,800 | 2,773,204 | |||||
Capital Equipment - 4.02% | |||||||
Deere (John) Capital Corporation: | |||||||
5.24%, 10-16-07 | 1,000 | 997,817 | |||||
5.25%, 11-5-07 | 500 | 497,448 | |||||
5.18%, 11-20-07 | 1,893 | 1,879,381 | |||||
3,374,646 | |||||||
Electrical Equipment - 2.37% | |||||||
W.W. Grainger, Inc., | |||||||
5.25%, 11-20-07 | 2,000 | 1,985,417 | |||||
Finance Companies - 2.93% | |||||||
PACCAR Financial Corp., | |||||||
5.25%, 11-15-07 | 975 | 968,601 | |||||
Unilever Capital Corporation: | |||||||
5.34%, 12-10-07 | 1,000 | 989,617 | |||||
5.31%, 12-13-07 | 500 | 494,616 | |||||
2,452,834 | |||||||
Food and Related - 5.17% | |||||||
McCormick & Co. Inc.: | |||||||
5.22%, 11-28-07 | 1,500 | 1,487,385 | |||||
5.15%, 2-29-08 | 1,400 | 1,369,758 | |||||
Nestle Capital Corp.: | |||||||
5.3%, 11-14-07 | 256 | 254,342 | |||||
5.09%, 3-13-08 | 1,250 | 1,221,015 | |||||
4,332,500 | |||||||
Health Care - Drugs - 1.07% | |||||||
GlaxoSmithKline Finance plc, | |||||||
5.4%, 10-5-07 | 900 | 899,460 | |||||
Household - General Products - 2.38% | |||||||
Procter & Gamble International Funding S.C.A. (Procter & Gamble Company (The)): | |||||||
5.27%, 10-10-07 | 1,000 | 998,682 | |||||
5.25%, 11-19-07 | 1,000 | 992,854 | |||||
1,991,536 | |||||||
Mining - 1.41% | |||||||
BHP Billiton Finance (USA) Limited (BHP Billiton Limited), | |||||||
5.1%, 10-1-07 | 1,182 | 1,182,000 | |||||
Multiple Industry - 3.86% | |||||||
General Electric Capital Corporation, | |||||||
5.25%, 10-16-07 | 1,250 | 1,247,266 | |||||
Honeywell International Inc.: | |||||||
5.27%, 11-8-07 | 500 | 497,219 | |||||
5.25%, 11-15-07 | 1,500 | 1,490,156 | |||||
3,234,641 | |||||||
Security and Commodity Brokers - 3.34% | |||||||
UBS Finance Delaware LLC (UBS AG): | |||||||
5.25%, 10-23-07 | 1,100 | 1,096,471 | |||||
5.25%, 10-26-07 | 800 | 797,083 | |||||
5.48%, 12-12-07 | 380 | 375,835 | |||||
5.31%, 3-6-08 | 250 | 244,210 | |||||
4.775%, 6-24-08 | 300 | 289,376 | |||||
2,802,975 | |||||||
Total Commercial Paper - 34.94% | 29,288,263 | ||||||
Commercial Paper (backed by irrevocable bank letter of credit) | |||||||
Finance Companies - 8.63% | |||||||
NATC California LLC (Suntrust Bank), | |||||||
5.24%, 10-11-07 | 1,500 | 1,497,817 | |||||
River Fuel Company #2, Inc. (Bank of New York (The)), | |||||||
5.25%, 10-31-07 | 1,910 | 1,901,644 | |||||
River Fuel Funding Company #3, Inc. (Bank of New York (The)), | |||||||
5.09%, 1-31-08 | 152 | 149,378 | |||||
River Fuel Trust #1 (Bank of New York (The)): | |||||||
5.47%, 10-31-07 | 500 | 497,721 | |||||
5.59%, 10-31-07 | 700 | 696,739 | |||||
Vehicle Services of America Ltd. (Bank of America, N.A.), | |||||||
5.43%, 10-22-07 | 2,500 | 2,492,081 | |||||
7,235,380 | |||||||
Food and Related - 4.76% | |||||||
COFCO Capital Corp. (Rabobank Nederland): | |||||||
5.65%, 10-18-07 | 1,000 | 997,332 | |||||
5.77%, 10-18-07 | 3,000 | 2,991,826 | |||||
3,989,158 | |||||||
Total Commercial Paper (backed by irrevocable bank letter of credit) - 13.39% | 11,224,538 | ||||||
Notes | |||||||
Banks - 4.40% | |||||||
Barclays Bank PLC, New York Branch, | |||||||
5.35%, 5-5-08 | 500 | 500,000 | |||||
Lloyds TSB Bank PLC, | |||||||
5.7675%, 10-9-07 (A) | 655 | 655,000 | |||||
U.S. Bank, N.A., | |||||||
6.3%, 7-15-08 | 825 | 830,429 | |||||
Wells Fargo & Company: | |||||||
5.78%, 10-2-07 (A) | 500 | 500,000 | |||||
5.8325%, 10-15-07 (A) | 1,200 | 1,200,000 | |||||
3,685,429 | |||||||
Business Equipment and Services - 0.88% | |||||||
Playworld Systems Incorporated, Taxable Variable Rate Demand/Fixed Rate Revenue Bonds, Series A of 1998 (Wachovia Bank, N.A.), | |||||||
5.25%, 10-3-07 (A) | 740 | 740,000 | |||||
Capital Equipment - 0.48% | |||||||
Deere (John) Capital Corporation, | |||||||
5.3825%, 12-27-07 | 400 | 400,000 | |||||
Computers - Main and Mini - 2.09% | |||||||
International Business Machines Corporation: | |||||||
5.68%, 10-3-07 (A) | 750 | 750,000 | |||||
5.83%, 10-9-07 (A) | 1,000 | 1,000,000 | |||||
1,750,000 | |||||||
Finance Companies - 7.25% | |||||||
Capital Markets Access Company LC, Taxable Variable Rate Demand Bonds (LSPB Real Estate, LLC Project), Series 2007 (Wachovia Bank, N.A.), | |||||||
5.2%, 10-4-07 (A) | 1,380 | 1,380,000 | |||||
Caterpillar Financial Services Corporation, | |||||||
3.8%, 2-8-08 | 750 | 745,545 | |||||
P&W Holdings, LLC, Taxable Variable Rate Demand Bonds, Series 2005 (Wachovia Bank, N.A.), | |||||||
5.13%, 10-4-07 (A) | 250 | 250,000 | |||||
Park Street Properties I, LLC, Taxable Variable Rate Demand Notes, Series 2004 (University of Wisconsin - Madison Projects), (U.S. Bank, National Association), | |||||||
5.13%, 10-4-07 (A) | 390 | 390,000 | |||||
Toyota Motor Credit Corporation: | |||||||
5.24%, 5-2-08 | 1,800 | 1,800,000 | |||||
5.28%, 5-23-08 | 665 | 665,000 | |||||
5.41%, 6-16-08 | 500 | 500,000 | |||||
Unilever Capital Corporation, | |||||||
5.79625%, 10-12-07 (A) | 350 | 350,000 | |||||
6,080,545 | |||||||
Forest and Paper Products - 0.60% | |||||||
Kimberly-Clark Corporation, | |||||||
5.263%, 12-19-07 | 500 | 500,000 | |||||
Health Care - General - 0.85% | |||||||
B & D Associates, LLP and Eye Associates of Boca Raton, P.A., Taxable Variable Rate Demand Bonds (B& D Associates Project), Series 2005 (Wachovia Bank, N.A.), | |||||||
5.13%, 10-4-07 (A) | 710 | 710,000 | |||||
Household - General Products - 1.04% | |||||||
Watts Brothers Frozen Foods, L.L.C., Variable Rate Demand Taxable Revenue Bonds, 1997 (U.S. Bank of Washington, National Association), | |||||||
5.15%, 10-4-07 (A) | 869 | 869,000 | |||||
Multiple Industry - 4.00% | |||||||
3M Company, | |||||||
5.656%, 12-12-07 (B) | 1,500 | 1,500,876 | |||||
Coweta Summit Associates, LLC, Taxable Revenue Bonds, Series 2005 (SunTrust Bank), | |||||||
5.3%, 10-3-07 (A) | 1,600 | 1,600,000 | |||||
General Electric Capital Corporation, | |||||||
4.125%, 3-4-08 | 250 | 248,579 | |||||
3,349,455 | |||||||
Non-Residential Construction - 0.36% | |||||||
Healthcare Property Group, LLC, Taxable Variable Rate Bonds, Series 2005 (SunTrust Bank), | |||||||
5.3%, 10-3-07 (A) | 300 | 300,000 | |||||
Real Estate Investment Trust - 0.91% | |||||||
Arden Realty Limited Partnership, | |||||||
7.0%, 11-15-07 | 765 | 766,497 | |||||
Retail - General Merchandise - 2.75% | |||||||
Wal-Mart Stores, Inc., | |||||||
5.933%, 6-1-08 | 2,300 | 2,307,699 | |||||
Security and Commodity Brokers - 0.89% | |||||||
UBS AG, | |||||||
5.4%, 2-1-08 | 750 | 749,524 | |||||
Trucking and Shipping - 0.59% | |||||||
Volpe Family Partnership, L.P., Taxable Variable Rate Demand Revenue Bonds, Series of 2001 (Wachovia Bank, N.A.), | |||||||
5.18%, 10-4-07 (A) | 495 | 495,000 | |||||
Total Notes - 27.09% | 22,703,149 | ||||||
TOTAL CORPORATE OBLIGATIONS - 79.83% | $ | 66,916,396 | |||||
(Cost: $66,916,396) | |||||||
MUNICIPAL OBLIGATIONS - TAXABLE | |||||||
Arkansas - 1.05% | |||||||
City of Little Rock, Arkansas, Taxable Variable Rate Demand Revenue Bonds (Ringwood Containers, L.P. Project), Series 2006A (SunTrust Bank), | |||||||
5.3%, 10-3-07 (A) | 880 | 880,000 | |||||
California - 9.66% | |||||||
California Pollution Control Financing Authority, Environmental Improvement Revenue Bonds: | |||||||
Air Products Manufacturing Corporation, Taxable Series 1997A, | |||||||
5.57%, 10-3-07 | 3,200 | 3,200,000 | |||||
Atlantic Richfield Company Project, Series 1997 (Taxable), (BP p.l.c.), | |||||||
5.3%, 10-4-07 | 3,700 | 3,700,000 | |||||
County of Sacramento, Taxable Pension Funding Bonds, Series 1995B (Bayerische Landesbank Girozentrale, New York Branch), | |||||||
5.25%, 10-3-07 (A) | 1,200 | 1,200,000 | |||||
8,100,000 | |||||||
Georgia - 3.58% | |||||||
Municipal Electric Authority of Georgia, General Resolution Projects Bond Anticipation Notes, Series B (Taxable), (Bayerische Landesbank, New York Branch, Wachovia Bank, National Association and WestLB AG, New York Branch): | |||||||
5.38%, 10-15-07 | 1,500 | 1,500,000 | |||||
5.56%, 10-17-07 | 1,500 | 1,500,000 | |||||
3,000,000 | |||||||
Minnesota - 1.19% | |||||||
City of Plymouth, Minnesota, Health Facilities Revenue Bonds, WestHealth Taxable Bonds, Series 1994B (Financial Security Assurance Inc.), | |||||||
5.1%, 10-4-07 (A) | 1,000 | 1,000,000 | |||||
TOTAL MUNICIPAL OBLIGATIONS - TAXABLE - 15.48% | $ | 12,980,000 | |||||
(Cost: $12,980,000) | |||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | |||||||
Federal Home Loan Bank, | |||||||
5.375%, 9-5-08 | 650 | 650,000 | |||||
Federal Home Loan Mortgage Corporation, | |||||||
5.375%, 2-12-08 | 750 | 750,000 | |||||
Overseas Private Investment Corporation, | |||||||
5.15%, 10-3-07 (A) | 2,035 | 2,034,884 | |||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS - 4.10% | $ | 3,434,884 | |||||
(Cost:$3,434,884) | |||||||
TOTAL INVESTMENT SECURITIES - 99.41% | $ | 83,331,280 | |||||
(Cost: $83,331,280) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.59% | 493,695 | ||||||
NET ASSETS - 100.00% | $ | 83,824,975 | |||||
Notes to Schedule of Investments |
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
(B)Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. This security has been determined to be liquid under guidelines established by the Board of Directors. At September 30, 2007, the total value of this security amounted to 1.79% of net assets. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
Statement of Assets and Liabilities
IVY MONEY MARKET FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $83,331) (Note 1) | $ | 83,331 | ||
Cash | 37 | |||
Receivables: | ||||
Fund shares sold | 958 | |||
Interest | 482 | |||
Prepaid and other assets | 36 | |||
Total assets | 84,844 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 942 | |||
Dividends payable | 31 | |||
Accrued shareholder servicing (Note 2) | 20 | |||
Accrued accounting services fee (Note 2) | 4 | |||
Accrued management fee (Note 2) | 3 | |||
Accrued distribution and service fees (Note 2) | 1 | |||
Other | 18 | |||
Total liabilities | 1,019 | |||
Total net assets | $ | 83,825 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 838 | ||
Additional paid-in capital | 82,987 | |||
Net assets applicable to outstanding units of capital | $ | 83,825 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $1.00 | |||
Class B | $1.00 | |||
Class C | $1.00 | |||
Class E | $1.00 | |||
Capital shares outstanding: | ||||
Class A | 71,014 | |||
Class B | 3,614 | |||
Class C | 8,786 | |||
Class E | 411 | |||
Capital shares authorized | 420,000 |
See Notes to Financial Statements.
Statement of Operations
IVY MONEY MARKET FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 2,023 | ||
Expenses (Note 2): | ||||
Investment management fee | 150 | |||
Shareholder servicing: | ||||
Class A | 92 | |||
Class B | 4 | |||
Class C | 6 | |||
Class E | –– | * | ||
Distribution fee: | ||||
Class B | 11 | |||
Class C | 27 | |||
Registration fees | 33 | |||
Accounting services fee | 23 | |||
Service fee: | ||||
Class B | 4 | |||
Class C | 9 | |||
Audit fees | 12 | |||
Custodian fees | 3 | |||
Legal fees | 1 | |||
Other | 17 | |||
Total expenses | 392 | |||
Net investment income | 1,631 | |||
Net increase in net assets resulting from operations | $ | 1,631 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MONEY MARKET FUND
(In Thousands) (Unaudited)
For the six months ended September 30, | For the fiscal year ended March 31, | |||||||
---|---|---|---|---|---|---|---|---|
2007 | 2007 | |||||||
INCREASE IN NET ASSETS | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,631 | $ | 2,758 | ||||
Net increase in net assets resulting from operations | 1,631 | 2,758 | ||||||
Distributions to shareholders from | ||||||||
net investment income (Note 1F):(1) | ||||||||
Class A | (1,438 | ) | (2,380 | ) | ||||
Class B | (58 | ) | (143 | ) | ||||
Class C | (129 | ) | (235 | ) | ||||
Class E | (6 | ) | NA | |||||
(1,631 | ) | (2,758 | ) | |||||
Capital share transactions (Note 5) | 15,275 | 19,177 | ||||||
Total increase | 15,275 | 19,177 | ||||||
NET ASSETS | ||||||||
Beginning of period | 68,550 | 49,373 | ||||||
End of period | $ | 83,825 | $ | 68,550 | ||||
Undistributed net investment income | $ | –– | $ | –– | ||||
(1)See "Financial Highlights" on pages 161 - 164.
See Notes to Financial Statements.
Financial Highlights
IVY MONEY MARKET FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Net investment income | 0.0223 | 0.0435 | 0.0288 | 0.0083 | 0.0061 | 0.0124 | |||||||||||||||
Less dividends declared | ( | 0.0223) | ( | 0.0435) | ( | 0.0288) | ( | 0.0083) | ( | 0.0061) | ( | 0.0124) | |||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Total return | 2.27 | % | 4.44 | % | 2.87 | % | 0.82 | % | 0.62 | % | 1.25 | % | |||||||||
Net assets, end of period (in millions) | $71 | $59 | $44 | $39 | $45 | $10 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 0.93 | %(1) | 0.88 | %(2) | 0.91 | %(2) | 0.89 | %(2) | 0.67 | %(2) | 0.52 | %(3) | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 4.47 | %(1) | 4.38 | %(2) | 2.87 | %(2) | 0.81 | %(2) | 0.48 | %(2) | 1.26 | %(3) | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 0.93 | %(1)(4) | 0.98 | %(2) | 1.06 | %(2) | 1.20 | %(2) | 0.87 | %(2) | 0.92 | %(3) | |||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 4.47 | %(1)(4) | 4.28 | %(2) | 2.72 | %(2) | 0.50 | %(2) | 0.28 | %(2) | 0.86 | %(3) |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MONEY MARKET FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Net investment income | 0.0177 | 0.0338 | 0.0184 | 0.0014 | 0.0002 | 0.0015 | |||||||||||||||
Less dividends declared | ( | 0.0177) | ( | 0.0338) | ( | 0.0184) | ( | 0.0014) | ( | 0.0002) | ( | 0.0015) | |||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Total return | 1.81 | % | 3.44 | % | 1.82 | % | 0.14 | % | 0.02 | % | 0.16 | % | |||||||||
Net assets, end of period (in millions) | $4 | $4 | $2 | $1 | $1 | $1 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.83 | %(1) | 1.86 | % | 1.95 | % | 1.57 | %(2) | 1.14 | %(2) | 1.59 | %(3) | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 3.57 | %(1) | 3.43 | % | 1.86 | % | 0.12 | %(2) | 0.02 | %(2) | 0.14 | %(3) | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.83 | %(1)(4) | 1.86 | %(4) | 1.95 | %(4) | 1.95 | %(2) | 1.34 | %(2) | 2.06 | %(3) | |||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 3.57 | %(1)(4) | 3.43 | %(4) | 1.86 | %(4) | - -0.26 | %(2) | - -0.18 | %(2) | - -0.33 | %(3) |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MONEY MARKET FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Net investment income | 0.0181 | 0.0340 | 0.0185 | 0.0013 | 0.0002 | 0.0019 | |||||||||||||||
Less dividends declared | ( | 0.0181) | ( | 0.0340) | ( | 0.0185) | ( | 0.0013) | ( | 0.0002) | ( | 0.0019) | |||||||||
Net asset value, end of period | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | $ | 1.00 | |||||||||
Total return | 1.84 | % | 3.45 | % | 1.83 | % | 0.12 | % | 0.02 | % | 0.20 | % | |||||||||
Net assets, end of period (in millions) | $9 | $6 | $3 | $5 | $6 | $10 | |||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.78 | %(1) | 1.84 | % | 1.94 | % | 1.58 | %(2) | 1.16 | %(2) | 1.56 | %(3) | |||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 3.63 | %(1) | 3.45 | % | 1.75 | % | 0.12 | %(2) | 0.03 | %(2) | 0.18 | %(3) | |||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.78 | %(1)(4) | 1.84 | %(4) | 1.94 | %(4) | 1.99 | %(2) | 1.35 | %(2) | 1.99 | %(3) | |||||||||
Ratio of net investment income (loss) to average net assets excluding voluntary expense waiver | 3.63 | %(1)(4) | 3.45 | %(4) | 1.75 | %(4) | - -0.29 | %(2) | - -0.17 | %(2) | - -0.25 | %(3) |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MONEY MARKET FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
9-30-07 | |||||
Net asset value, beginning of period | $ | 1.00 | |||
Net investment income | 0.0220 | ||||
Less dividends declared | ( | 0.0220) | |||
Net asset value, end of period | $ | 1.00 | |||
Total return | 2.20 | % | |||
Net assets, end of period (in thousands) | $411 | ||||
Ratio of expenses to average net assets | 0.93 | %(2) | |||
Ratio of net investment income to average net assets | 4.47 | %(2) |
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY MUNICIPAL BOND FUND
Portfolio Highlights
On September 30, 2007, Ivy Municipal Bond Fund had net assets totaling $26,716,885 invested in a diversified portfolio.
Sector Weightings
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007, your Fund owned:
Prerefunded ETM Bonds | $ | 20.91 | |||
State, County and City General Obligation Bonds | $ | 15.04 | |||
Education Revenue Bonds | $ | 10.81 | |||
Special Tax Bonds | $ | 7.96 | |||
Housing Revenue Bonds | $ | 7.40 | |||
Hospital Revenue Bonds | $ | 7.26 | |||
Lifecare Centers Bonds | $ | 6.60 | |||
Other Municipal Bonds | $ | 5.38 | |||
Airport Revenue Bonds | $ | 4.47 | |||
Transportation Revenue Bonds | $ | 3.97 | |||
Student Loans Bonds | $ | 3.81 | |||
Cash and Cash Equivalents | $ | 2.73 | |||
Public Power Revenue Bonds | $ | 2.03 | |||
Sales Revenue Bonds | $ | 1.63 |
On September 30, 2007, the breakdown of municipal bonds (by ratings) held by the Fund, including cash and cash equivalents, was as follows:
AAA | 51.31 | % | |||
AA | 12.18 | % | |||
A | 8.07 | % | |||
BBB | 17.07 | % | |||
BB | 6.82 | % | |||
B | 1.00 | % | |||
Below B | 0.82 | % | |||
Cash and Cash Equivalents | 2.73 | % |
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 rates are available.
The Investments of Ivy Municipal Bond Fund | |||||||
September 30, 2007 (Unaudited) | |||||||
MUNICIPAL BONDS | Principal Amount in Thousands | Value | |||||
Arizona - 1.29% | |||||||
City of Bullhead City, Arizona, Bullhead Parkway Improvement District, Improvement Bonds, | |||||||
6.1%, 1-1-13 | $ | 220 | $ | 220,834 | |||
Arizona Health Facilities Authority, Hospital Revenue Bonds (Phoenix Children's Hospital), Series 2007C, | |||||||
4.84%, 2-1-42 (A) | 125 | 122,899 | |||||
343,733 | |||||||
California - 13.54% | |||||||
Golden State Tobacco Securitization Corporation: Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2003B, | |||||||
5.0%, 6-1-43 | 1,000 | 1,068,960 | |||||
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1 (Fixed Rate), | |||||||
6.75%, 6-1-39 | 200 | 231,550 | |||||
San Mateo County Community College District (County of San Mateo, California), 2002 General Obligation Bonds (Election of 2001), Series A (Current Interest Bonds), | |||||||
5.375%, 9-1-15 | 500 | 541,480 | |||||
State of California, Various Purpose General Obligation Bonds, | |||||||
5.0%, 2-1-22 | 495 | 513,157 | |||||
California Statewide Communities Development Authority, Insured Revenue Bonds (Henry Mayo Newhall Memorial Hospital), Series 2007A, | |||||||
5.0%, 10-1-37 | 500 | 502,345 | |||||
Trustees of the California State University Systemwide Revenue Bonds, Series 2002A, | |||||||
5.5%, 11-1-15 | 250 | 272,097 | |||||
Moreno Valley Unified School District, General Obligation Bonds, 2004 Election, Series A (Riverside County, California), | |||||||
5.25%, 8-1-22 | 240 | 264,382 | |||||
Riverside Community College District, Riverside County, California, Election of 2004, General Obligation Bonds, Series 2004A, | |||||||
5.5%, 8-1-29 | 200 | 223,324 | |||||
3,617,295 | |||||||
Florida - 1.00% | |||||||
City of Jacksonville, Florida, Better Jacksonville Sales Tax Revenue Bonds, Series 2003, | |||||||
5.25%, 10-1-19 | 250 | 267,060 | |||||
Georgia - 0.84% | |||||||
Hospital Authority of Cobb County (Georgia), Revenue Anticipation Refunding and Improvement Certificates, Series 2003, | |||||||
5.25%, 4-1-20 | 210 | 225,004 | |||||
Hawaii - 3.85% | |||||||
City and County of Honolulu, Hawaii, General Obligation Refunding Bonds, 1990 Series A, | |||||||
7.35%, 7-1-08 | 1,000 | 1,027,670 | |||||
Illinois - 8.22% | |||||||
Village of Bedford Park, Cook County, Illinois, Water Revenue Bonds, Series 2000A, | |||||||
6.0%, 12-15-12 | 955 | 1,017,295 | |||||
Bloomington-Normal Airport Authority of McLean County, Illinois, Central Illinois Regional Airport, Passenger Facility Charge Revenue Bonds, Series 2001, | |||||||
6.05%, 12-15-19 | 645 | 663,428 | |||||
City of Chicago, General Obligation Bonds, Projectand Refunding, Series 2004A, | |||||||
5.25%, 1-1-21 | 250 | 264,412 | |||||
City of Belleville, Illinois, Tax Increment Refunding Revenue Bonds (Frank Scott Parkway Redevelopment Project), Series 2007A, | |||||||
5.7%, 5-1-36 | 250 | 250,747 | |||||
2,195,882 | |||||||
Indiana - 7.11% | |||||||
New Albany-Floyd County School Building Corporation, First Mortgage Bonds, Series 2002 (Floyd County, Indiana), | |||||||
5.75%, 7-15-17 | 675 | 738,828 | |||||
Ball State University Board of Trustees, Ball State University Student Fee Bonds, Series K, | |||||||
5.75%, 7-1-18 | 500 | 537,855 | |||||
Dyer (Indiana) Redevelopment Authority, Economic Development Lease Rental Bonds, Series 1999, | |||||||
6.5%, 1-15-24 | 300 | 318,336 | |||||
East Chicago Elementary School Building Corporation (Lake County, Indiana), First Mortgage Bonds, Series 1993A, | |||||||
5.5%, 1-15-16 | 305 | 305,271 | |||||
1,900,290 | |||||||
Kansas - 3.36% | |||||||
Sedgwick County, Kansas and Shawnee County, Kansas, Single Family Mortgage Revenue Bonds (Mortgage-Backed Securities Program): 2002 Series A-5, | |||||||
5.55%, 12-1-33 | 500 | 523,885 | |||||
2003 Series A-2, | |||||||
5.65%, 6-1-35 | 205 | 211,197 | |||||
2001 Series A-1 (AMT), | |||||||
6.3%, 12-1-32 | 160 | 162,840 | |||||
897,922 | |||||||
Louisiana - 3.77% | |||||||
State of Louisiana, Gasoline and Fuels Tax Revenue Bonds: 2002 Series A, | |||||||
5.25%, 6-1-13 | 500 | 533,095 | |||||
2005 Series A, | |||||||
5.0%, 5-1-26 | 200 | 207,786 | |||||
Louisiana Local Government Environmental Facilities and Community Development Authority, Mortgage Revenue Bonds, Series 2004A (GNMA Collateralized - Cypress Apartments Project), | |||||||
5.5%, 4-20-38 | 250 | 265,218 | |||||
1,006,099 | |||||||
Maryland - 1.98% | |||||||
Maryland Transportation Authority, Airport Parking Revenue Bonds, Series 2002B, Baltimore/Washington International Airport Projects (Qualified Airport Bonds - AMT), | |||||||
5.375%, 3-1-15 | 500 | 530,270 | |||||
Massachusetts - 1.75% | |||||||
Massachusetts Development Finance Authority, Revenue Bonds (Linden Ponds, Inc. Facility), Series 2007 A (Tax-Exempt), | |||||||
5.75%, 11-15-42 | 250 | 248,488 | |||||
Massachusetts Bay Transportation Authority, Assessment Bonds, 2004 Series A, | |||||||
5.25%, 7-1-20 | 200 | 218,842 | |||||
467,330 | |||||||
Michigan - 0.88% | |||||||
City of Detroit, Michigan, General Obligation Bonds (Unlimited Tax), Series 2004-A(1), | |||||||
5.25%, 4-1-23 | 200 | 209,974 | |||||
Garden City Hospital Finance Authority, Hospital Revenue and Refunding Bonds (Garden City Hospital Obligated Group), Series 1998A: | |||||||
5.625%, 9-1-10 | 15 | 15,425 | |||||
5.625%, 9-1-10 | 10 | 10,186 | |||||
235,585 | |||||||
Minnesota - 3.43% | |||||||
City of Perham, Minnesota, General Obligation Disposal System Revenue Bonds, Series 2001, | |||||||
6.0%, 5-1-22 | 500 | 515,180 | |||||
City of Victoria, Minnesota, Private School Facility Revenue Bonds (Holy Family Catholic High School Project), Series 1999A, | |||||||
5.6%, 9-1-19 | 400 | 400,764 | |||||
915,944 | |||||||
Missouri - 8.30% | |||||||
The Industrial Development Authority of the County of St. Louis, Missouri, Senior Living Facilities Revenue Bonds (Friendship Village of West County), Series 2007A, | |||||||
5.5%, 9-1-28 | 500 | 507,605 | |||||
City of Raytown, Missouri, Annual Appropriation-Supported Tax Increment and Sales Tax Revenue Bonds (Raytown Live Redevelopment Plan-Redevelopment Project Area 1), Series 2007, | |||||||
5.125%, 12-1-31 | 500 | 507,005 | |||||
City of Kearney, Missouri, General Obligation Bonds, Series 2001, | |||||||
5.5%, 3-1-16 | 350 | 369,313 | |||||
City of Belton, Missouri, Tax Increment Revenue Bonds (Belton Town Centre Project), Series 2004, | |||||||
6.25%, 3-1-24 | 200 | 206,910 | |||||
The Industrial Development Authority of the City of Kansas City, Missouri, Revenue Bonds, Series 2004 (Plaza Library Project), | |||||||
5.9%, 3-1-24 | 200 | 201,524 | |||||
Missouri Housing Development Commission, Single Family Mortgage Revenue Bonds (Homeownership Loan Program), 2005 Series D (AMT), | |||||||
6.0%, 3-1-36 | 180 | 191,932 | |||||
Broadway-Fairview Transportation Development District (Columbia, Missouri), Transportation Sales Tax Revenue Bonds, Series 2006A, | |||||||
6.125%, 12-1-36 | 175 | 167,991 | |||||
Missouri Development Finance Board, Infrastructure Facilities Revenue Bonds (City of Branson, Missouri) (Branson Landing Project), Series 2004A, | |||||||
5.25%, 12-1-19 | 65 | 66,609 | |||||
2,218,889 | |||||||
Nebraska - 1.14% | |||||||
Nebraska Higher Education Loan Program, Inc., Senior Subordinate Bonds, 1993-2, Series A-5A, | |||||||
6.2%, 6-1-13 | 300 | 303,891 | |||||
Nevada - 3.81% | |||||||
Nye County School District, Nevada, General Obligation (Limited Tax) School Building Bonds (PSF Guaranteed), Series 2007, | |||||||
6.5%, 5-1-08 | 1,000 | 1,017,380 | |||||
New Jersey - 2.00% | |||||||
New Jersey Economic Development Authority, School Facilities Construction Bonds: 2004 Series I, | |||||||
5.25%, 9-1-24 | 250 | 273,753 | |||||
2005 Series O, | |||||||
5.125%, 3-1-30 | 250 | 260,225 | |||||
533,978 | |||||||
New Mexico - 0.40% | |||||||
New Mexico Mortgage Finance Authority, Single Family Mortgage Program Class I Bonds, 2006 Series D (AMT), | |||||||
6.0%, 1-1-37 | $100 | 107,592 | |||||
New York - 8.11% | |||||||
The Port Authority of New York and New Jersey, Consolidated Bonds, One Hundred Twenty-Seventh Series, | |||||||
5.5%, 12-15-14 | 500 | 540,205 | |||||
The City of New York, General Obligation Bonds, Fiscal 2003 Series A Current Interest Bonds, | |||||||
5.5%, 8-1-10 | 500 | 525,435 | |||||
New York State Thruway Authority, State Personal Income Tax Revenue Bonds (Transportation), Series 2002A, | |||||||
5.25%, 3-15-10 | 500 | 520,600 | |||||
Suffolk County Industrial Development Agency (New York), Civic Facility Revenue Bonds: Series 1999B (The Southampton Hospital Association Civic Facility), | |||||||
7.625%, 1-1-30 | 185 | 194,559 | |||||
Series 1999A (The Southampton Hospital Association Civic Facility), | |||||||
7.25%, 1-1-20 | 115 | 119,361 | |||||
Dormitory Authority of the State of New York, Third General Resolution Revenue Bonds (State University Educational Facilities Issue), Series 2002B, | |||||||
5.25%, 11-15-23 | 250 | 265,970 | |||||
2,166,130 | |||||||
Ohio - 0.59% | |||||||
Hamilton County, Ohio, Sewer System Improvement Revenue Bonds, 2005 Series B (The Metropolitan Sewer District of Greater Cincinnati), | |||||||
5.0%, 12-1-30 | 150 | 156,420 | |||||
Oklahoma - 1.75% | |||||||
Tulsa Public Facilities Authority (Oklahoma), Assembly Center Lease Payment Revenue Bonds, Refunding Series 1985, | |||||||
6.6%, 7-1-14 | 335 | 366,969 | |||||
Trustees of the Tulsa Municipal Airport Trust, Revenue Bonds, Refunding Series 2001B, | |||||||
5.65%, 12-1-35 | 100 | 99,991 | |||||
466,960 | |||||||
Pennsylvania - 3.22% | |||||||
The School District of Philadelphia, Pennsylvania, General Obligation Bonds, Series A of 2002, Prerefunded 2-1-12, | |||||||
5.5%, 2-1-18 | 500 | 538,145 | |||||
Schuylkill County Industrial Development Authority, Variable Rate Demand Revenue Bonds (Pine Grove Landfill, Inc. Project), 1995 Series, | |||||||
5.1%, 10-1-19 | 320 | 323,619 | |||||
861,764 | |||||||
Puerto Rico - 0.98% | |||||||
Government Development Bank for Puerto Rico, Senior Notes, 2006 Series B, | |||||||
5.0%, 12-1-08 | 200 | 202,622 | |||||
Commonwealth of Puerto Rico, Public Improvement Refunding Bonds (General Obligation Bonds), Series 2003 C, | |||||||
5.0%, 7-1-18 | 60 | 60,608 | |||||
263,230 | |||||||
Rhode Island - 1.73% | |||||||
Rhode Island Health and Educational Building Corporation, Hospital Financing Revenue Bonds, St. Joseph Health Services of Rhode Island Issue, Series 1999, | |||||||
5.4%, 10-1-09 | 455 | 461,516 | |||||
Tennessee - 1.13% | |||||||
The Health, Educational and Housing Facilities Board of the County of Sullivan, Tennessee, Hospital Revenue Bonds (Wellmont Health System Project), Series 2006C, | |||||||
5.25%, 9-1-26 | 300 | 302,535 | |||||
Texas - 7.14% | |||||||
Tarrant County Cultural Education Facilities Finance Corporation, Retirement Facility Revenue Bonds: Northwest Senior Housing Corporation - Edgemere Project, Series 2006A, | |||||||
6.0%, 11-15-36 | 500 | 511,585 | |||||
Buckingham Senior Living Community, Inc. Project, Series 2007, | |||||||
5.625%, 11-15-27 | 500 | 496,690 | |||||
North Central Texas Health Facilities Development Corporation, Retirement Facility Revenue Bonds (Northwest Senior Housing Corporation - Edgemere Project), Series 1999A, Fixed Rate Bonds: | |||||||
7.25%, 11-15-19 | 235 | 257,031 | |||||
7.5%, 11-15-29 | 140 | 153,832 | |||||
Pflugerville Independent School District (Travis County, Texas), Unlimited Tax School Building Bonds, Series 2001, | |||||||
5.5%, 8-15-19 | 250 | 267,458 | |||||
Dallas-Fort Worth International Airport Facility Improvement Corporation, American Airlines, Inc., Revenue Refunding Bonds, Series 2000C, | |||||||
6.15%, 5-1-29 | 220 | 220,161 | |||||
1,906,757 | |||||||
Vermont - 0.79% | |||||||
Vermont Housing Finance Agency, Single Family Housing Bonds, Series 27 (AMT), | |||||||
5.5%, 11-1-37 | 200 | 211,232 | |||||
Virginia - 1.99% | |||||||
City of Chesapeake, Virginia, General Obligation Public Improvement and Refunding Bonds, Series of 2001, | |||||||
5.5%, 12-1-17 | 500 | 533,000 | |||||
Washington - 2.03% | |||||||
Energy Northwest, Project No. 1 Refunding Electric Revenue Bonds, Series 2002-A, | |||||||
5.75%, 7-1-16 | 500 | 542,385 | |||||
Wyoming - 1.14% | |||||||
Housing Authority of the City of Cheyenne, Housing Revenue Bonds (Foxcrest II Project), Series 2004, | |||||||
5.75%, 6-1-34 | 300 | 304,611 | |||||
TOTAL MUNICIPAL BONDS - 97.27% | $ | 25,988,354 | |||||
(Cost: $25,489,648) | |||||||
SHORT-TERM SECURITIES - 1.22% | |||||||
Forest and Paper Products | |||||||
Sonoco Products Co., | |||||||
5.6%, 10-1-07 | 326 | 326,000 | |||||
(Cost: $326,000) | |||||||
TOTAL INVESTMENT SECURITIES - 98.49% | $ | 26,314,354 | |||||
(Cost: $25,815,648) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.51% | 402,531 | ||||||
NET ASSETS - 100.00% | $ | 26,716,885 | |||||
Notes to Schedule of Investments |
(A)Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2007. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY MUNICIPAL BOND FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $25,816) (Notes 1 and 3) | $ | 26,314 | ||
Receivables: | ||||
Interest | 352 | |||
Investment securities sold | 101 | |||
Fund shares sold | 89 | |||
Prepaid and other assets | 25 | |||
Total assets | 26,881 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 100 | |||
Payable to Fund shareholders | 29 | |||
Dividends payable | 7 | |||
Due to Custodian | 6 | |||
Accrued shareholder servicing (Note 2) | 5 | |||
Accrued accounting services fee (Note 2) | 2 | |||
Accrued distribution and service fees (Note 2) | 1 | |||
Accrued management fee (Note 2) | 1 | |||
Other | 13 | |||
Total liabilities | 164 | |||
Total net assets | $ | 26,717 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 24 | ||
Additional paid-in capital | 26,788 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment income | 11 | |||
Accumulated undistributed net realized loss on investment transactions | (605 | ) | ||
Net unrealized appreciation in value of investments | 499 | |||
Net assets applicable to outstanding units of capital | $ | 26,717 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $11.00 | |||
Class B | $11.00 | |||
Class C | $11.00 | |||
Class Y | $11.00 | |||
Capital shares outstanding: | ||||
Class A | 1,124 | |||
Class B | 115 | |||
Class C | 1,188 | |||
Class Y | 2 | |||
Capital shares authorized | 200,000 |
See Notes to Financial Statements.
Statement of Operations
IVY MUNICIPAL BOND FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT INCOME | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 633 | ||
Expenses (Note 2): | ||||
Investment management fee | 67 | |||
Distribution fee: | ||||
Class B | 5 | |||
Class C | 53 | |||
Class Y | –– | * | ||
Service fee: | ||||
Class A | 13 | |||
Class B | 1 | |||
Class C | 18 | |||
Registration fees | 23 | |||
Shareholder servicing: | ||||
Class A | 7 | |||
Class B | 1 | |||
Class C | 14 | |||
Class Y | –– | * | ||
Accounting services fee | 14 | |||
Audit fees | 11 | |||
Custodian fees | 2 | |||
Other | 12 | |||
Total | 241 | |||
Less voluntary waiver of investment management fee (Note 2) | (13 | ) | ||
Total expenses | 228 | |||
Net investment income | 405 | |||
REALIZED AND UNREALIZED LOSS | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net loss on investments | (57 | ) | ||
Unrealized depreciation in value of investments during the period | (209 | ) | ||
Net loss on investments | (266 | ) | ||
Net increase in net assets resulting from operations | $ | 139 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY MUNICIPAL BOND FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment income | $ | 405 | $ | 771 | |||||
Realized net gain (loss) on investments | (57 | ) | 21 | ||||||
Unrealized appreciation (depreciation) | (209 | ) | 154 | ||||||
Net increase in net assets resulting from operations | 139 | 946 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (186 | ) | (272 | ) | |||||
Class B | (17 | ) | (41 | ) | |||||
Class C | (199 | ) | (457 | ) | |||||
Class Y | (–– | )* | (2 | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class Y | (–– | ) | (–– | ) | |||||
(402 | ) | (772 | ) | ||||||
Capital share transactions (Note 5) | 1,947 | 1,797 | |||||||
Total increase | 1,684 | 1,971 | |||||||
NET ASSETS | |||||||||
Beginning of period | 25,033 | 23,062 | |||||||
End of period | $ | 26,717 | $ | 25,033 | |||||
Undistributed net investment income | $ | 11 | $ | 8 | |||||
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY MUNICIPAL BOND FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | $ | 10.61 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.20 | (1) | 0.41 | (1) | 0.42 | 0.38 | 0.37 | 0.42 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | )(1) | 0.08 | (1) | (0.09 | ) | (0.17 | ) | 0.21 | 0.49 | ||||||||||
Total from investment operations | 0.08 | 0.49 | 0.33 | 0.21 | 0.58 | 0.91 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.41 | ) | (0.42 | ) | (0.39 | ) | (0.37 | ) | (0.42 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.20 | ) | (0.41 | ) | (0.42 | ) | (0.39 | ) | (0.37 | ) | (0.42 | ) | ||||||||
Net asset value, end of period | $ | 11.00 | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | ||||||||
Total return(2) | 0.74 | % | 4.51 | % | 3.00 | % | 1.89 | % | 5.36 | % | 8.71 | % | ||||||||
Net assets, end of period (in millions) | $13 | $9 | $6 | $5 | $4 | $3 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.29 | %(3) | 1.11 | % | 0.90 | % | 1.13 | % | 1.25 | % | 1.15 | % | ||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 3.64 | %(3) | 3.67 | % | 3.77 | % | 3.42 | % | 3.35 | % | 3.79 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.39 | %(3) | 1.35 | % | 1.33 | % | 1.39 | % | 1.25 | %(4) | 1.15 | %(4) | ||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 3.54 | %(3) | 3.43 | % | 3.34 | % | 3.16 | % | 3.35 | %(4) | 3.79 | %(4) | ||||||||
Portfolio turnover rate | 47 | % | 26 | % | 20 | % | 17 | % | 11 | % | 40 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY MUNICIPAL BOND FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | $ | 10.61 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.16 | 0.32 | 0.34 | 0.30 | 0.28 | 0.33 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | ) | 0.08 | (0.09 | ) | (0.18 | ) | 0.21 | 0.49 | |||||||||||
Total from investment operations | 0.04 | 0.40 | 0.25 | 0.12 | 0.49 | 0.82 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.16 | ) | (0.32 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.33 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.16 | ) | (0.32 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.33 | ) | ||||||||
Net asset value, end of period | $ | 11.00 | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | ||||||||
Total return | 0.34 | % | 3.70 | % | 2.20 | % | 1.09 | % | 4.50 | % | 7.81 | % | ||||||||
Net assets, end of period (in millions) | $1 | $1 | $1 | $1 | $1 | $1 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.08 | %(1) | 1.85 | % | 1.70 | % | 1.90 | % | 2.06 | % | 1.96 | % | ||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 2.86 | %(1) | 2.92 | % | 2.96 | % | 2.65 | % | 2.54 | % | 2.98 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.18 | %(1) | 2.09 | % | 2.13 | % | 2.16 | % | 2.06 | %(2) | 1.96 | %(2) | ||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 2.76 | %(1) | 2.68 | % | 2.53 | % | 2.39 | % | 2.54 | %(2) | 2.98 | %(2) | ||||||||
Portfolio turnover rate | 47 | % | 26 | % | 20 | % | 17 | % | 11 | % | 40 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MUNICIPAL BOND FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | $ | 10.61 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.16 | 0.32 | 0.34 | 0.29 | 0.28 | 0.32 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | ) | 0.08 | (0.09 | ) | (0.17 | ) | 0.21 | 0.49 | |||||||||||
Total from investment operations | 0.04 | 0.40 | 0.25 | 0.12 | 0.49 | 0.81 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.16 | ) | (0.32 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.32 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.16 | ) | (0.32 | ) | (0.34 | ) | (0.30 | ) | (0.28 | ) | (0.32 | ) | ||||||||
Net asset value, end of period | $ | 11.00 | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | ||||||||
Total return | 0.33 | % | 3.69 | % | 2.19 | % | 1.04 | % | 4.45 | % | 7.75 | % | ||||||||
Net assets, end of period (in millions) | $13 | $15 | $16 | $18 | $20 | $25 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 2.10 | %(1) | 1.87 | % | 1.69 | % | 1.93 | % | 2.10 | % | 2.03 | % | ||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 2.84 | %(1) | 2.90 | % | 2.97 | % | 2.62 | % | 2.50 | % | 2.95 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 2.20 | %(1) | 2.11 | % | 2.12 | % | 2.19 | % | 2.10 | %(2) | 2.03 | %(2) | ||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 2.74 | %(1) | 2.66 | % | 2.54 | % | 2.36 | % | 2.50 | %(2) | 2.95 | %(2) | ||||||||
Portfolio turnover rate | 47 | % | 26 | % | 20 | % | 17 | % | 11 | % | 40 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY MUNICIPAL BOND FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | $ | 10.61 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income | 0.19 | (1) | 0.39 | (1) | 0.42 | 0.37 | 0.35 | 0.40 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (0.12 | )(1) | 0.08 | (1) | (0.09 | ) | (0.18 | ) | 0.21 | 0.49 | ||||||||||
Total from investment operations | 0.07 | 0.47 | 0.33 | 0.19 | 0.56 | 0.89 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.39 | ) | (0.42 | ) | (0.37 | ) | (0.35 | ) | (0.40 | ) | ||||||||
Capital gains | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.19 | ) | (0.39 | ) | (0.42 | ) | (0.37 | ) | (0.35 | ) | (0.40 | ) | ||||||||
Net asset value, end of period | $ | 11.00 | $ | 11.12 | $ | 11.04 | $ | 11.13 | $ | 11.31 | $ | 11.10 | ||||||||
Total return | 0.67 | % | 4.36 | % | 2.98 | % | 1.75 | % | 5.13 | % | 8.52 | % | ||||||||
Net assets, end of period (in thousands) | $25 | $25 | $46 | $44 | $5 | $4 | ||||||||||||||
Ratio of expenses to average net assets including voluntary expense waiver | 1.44 | %(2) | 1.23 | % | 0.92 | % | 1.22 | % | 1.44 | % | 1.33 | % | ||||||||
Ratio of net investment income to average net assets including voluntary expense waiver | 3.50 | %(2) | 3.55 | % | 3.74 | % | 3.13 | % | 3.14 | % | 3.64 | % | ||||||||
Ratio of expenses to average net assets excluding voluntary expense waiver | 1.54 | %(2) | 1.47 | % | 1.35 | % | 1.48 | % | 1.44 | %(3) | 1.33 | %(3) | ||||||||
Ratio of net investment income to average net assets excluding voluntary expense waiver | 3.40 | %(2) | 3.31 | % | 3.31 | % | 2.87 | % | 3.14 | %(3) | 3.64 | %(3) | ||||||||
Portfolio turnover rate | 47 | % | 26 | % | 20 | % | 17 | % | 11 | % | 40 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY SCIENCE AND TECHNOLOGY FUND
Portfolio Highlights
On September 30, 2007, Ivy Science and Technology Fund had net assets totaling $533,426,376
invested in a diversified portfolio of:
70.14% | Domestic Common Stocks | |
17.72% | Foreign Common Stocks | |
12.14% | Cash and Cash Equivalents |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund was invested by industry and geographic region, respectively, as follows:
Technology Stocks | $ | 30.51 | |||
Health Care Stocks | $ | 15.46 | |||
Business Equipment and Services Stocks | $ | 14.51 | |||
Consumer Durables Stocks | $ | 13.19 | |||
Cash and Cash Equivalents | $ | 12.14 | |||
Energy Stocks | $ | 5.98 | |||
Miscellaneous Stocks | $ | 4.27 | |||
Consumer Nondurables Stocks | $ | 3.94 |
The Investments of Ivy Science and Technology Fund | |||||||
September 30, 2007 (Unaudited) | |||||||
COMMON STOCKS | Shares | Value | |||||
Business Equipment and Services - 5.03% | |||||||
Euronet Worldwide, Inc.* | 435,700 | $ | 12,966,432 | ||||
Global Cash Access, Inc.* | 604,900 | 6,405,891 | |||||
Telvent GIT, S.A. | 220,500 | 5,505,885 | |||||
Veraz Networks, Inc.* | 279,900 | 1,960,700 | |||||
26,838,908 | |||||||
Chemicals - Petroleum and Inorganic - 2.12% | |||||||
E.I. du Pont de Nemours and Company | 228,100 | 11,304,636 | |||||
Communications Equipment - 1.23% | |||||||
Marvell Technology Group Ltd.* | 402,200 | 6,590,047 | |||||
Computers - Micro - 3.61% | |||||||
Apple Inc.* | 76,000 | 11,664,860 | |||||
Sun Microsystems, Inc.* | 1,355,300 | 7,610,010 | |||||
19,274,870 | |||||||
Computers - Peripherals - 10.74% | |||||||
ACI Worldwide, Inc.* | 336,100 | 7,516,876 | |||||
Aspen Technology, Inc.* | 1,184,300 | 16,941,411 | |||||
Intuit Inc.* | 231,400 | 7,012,577 | |||||
Lawson Software, Inc.* | 1,335,400 | 13,360,677 | |||||
Netezza Corporation* | 173,400 | 2,169,234 | |||||
Synaptics Incorporated* | 215,600 | 10,285,198 | |||||
57,285,973 | |||||||
Consumer Electronics - 13.19% | |||||||
Garmin Ltd. | 112,800 | 13,466,064 | |||||
NAVTEQ Corporation* | 190,700 | 14,868,879 | |||||
Nintendo Co., Ltd. (A) | 10,400 | 5,414,356 | |||||
Research In Motion Limited* | 371,450 | 36,598,969 | |||||
70,348,268 | |||||||
Defense - 2.15% | |||||||
ESCO Technologies Inc.* | 345,900 | 11,497,716 | |||||
Electrical Equipment - 1.07% | |||||||
Power-One, Inc.* | 1,116,100 | 5,697,691 | |||||
Electronic Components - 12.78% | |||||||
Cree, Inc.* | 617,300 | 19,176,424 | |||||
Flextronics International Ltd.* | 212,200 | 2,373,457 | |||||
Himax Technologies, Inc., ADR* | 853,400 | 3,477,605 | |||||
IPG Photonics Corporation* | 109,700 | 2,161,090 | |||||
Intel Corporation | 307,000 | 7,940,555 | |||||
MediaTek Incorporation (A) | 456,200 | 8,219,568 | |||||
PMC-Sierra, Inc.* | 1,129,000 | 9,477,955 | |||||
Samsung Electronics Co., Ltd. (A) | 20,500 | 12,879,698 | |||||
Syntax-Brillian Corporation* | 611,900 | 2,462,898 | |||||
68,169,250 | |||||||
Food and Related - 3.94% | |||||||
Archer Daniels Midland Company | 439,500 | 14,538,660 | |||||
Bunge Limited | 60,400 | 6,489,980 | |||||
21,028,640 | |||||||
Health Care - Drugs - 3.20% | |||||||
Affymetrix, Inc.* | 262,600 | 6,659,536 | |||||
Amgen Inc.* | 91,000 | 5,150,600 | |||||
Animal Health International, Inc.* | 473,000 | 5,250,300 | |||||
17,060,436 | |||||||
Health Care - General - 2.93% | |||||||
Advanced Medical Optics, Inc.* | 182,300 | 5,576,557 | |||||
Home Diagnostics, Inc.* | 136,900 | 1,312,186 | |||||
Radiation Therapy Services, Inc.* | 213,500 | 4,435,463 | |||||
Volcano Corporation* | 261,480 | 4,298,731 | |||||
15,622,937 | |||||||
Hospital Supply and Management - 9.33% | |||||||
Cerner Corporation* | 566,400 | 33,865,056 | |||||
HMS Holdings Corp.* | 281,900 | 6,923,464 | |||||
HealthSouth Corporation* | 265,940 | 4,656,609 | |||||
UnitedHealth Group Incorporated | 89,600 | 4,339,328 | |||||
49,784,457 | |||||||
Multiple Industry - 0.86% | |||||||
Pentair, Inc. | 137,900 | 4,575,522 | |||||
Petroleum - International - 5.02% | |||||||
Noble Energy, Inc. | 382,200 | 26,769,288 | |||||
Petroleum - Services - 0.96% | |||||||
ION Geophysical Corporation* | 370,100 | 5,118,483 | |||||
Retail - Specialty Stores - 0.22% | |||||||
Conn's, Inc.* | 48,300 | 1,152,921 | |||||
Timesharing and Software - 9.48% | |||||||
Alliance Data Systems Corporation* | 349,500 | 27,065,280 | |||||
Eclipsys Corporation* | 344,000 | 8,010,040 | |||||
Fidelity National Information Services, Inc. | 111,300 | 4,938,381 | |||||
Google Inc., Class A* | 18,600 | 10,555,221 | |||||
50,568,922 | |||||||
TOTAL COMMON STOCKS - 87.86% | $ | 468,688,965 | |||||
(Cost: $364,541,093) | |||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | ||||||
Beverages - 0.75% | |||||||
Diageo Capital plc (Diageo plc), | |||||||
5.9%, 10-10-07 | $ | 4,000 | 3,994,100 | ||||
Capital Equipment - 0.56% | |||||||
Deere (John) Capital Corporation, | |||||||
5.07%, 10-19-07 | 2,980 | 2,972,446 | |||||
Construction Materials - 0.56% | |||||||
Black & Decker Corp., | |||||||
5.36%, 10-17-07 | 3,000 | 2,992,853 | |||||
Electrical Equipment - 0.23% | |||||||
W.W. Grainger, Inc., | |||||||
4.78%, 10-24-07 | 1,250 | 1,246,183 | |||||
Food and Related - 1.96% | |||||||
General Mills, Inc., | |||||||
5.75%, 10-26-07 | 5,482 | 5,460,110 | |||||
Kellogg Co., | |||||||
5.85%, 10-9-07 | 5,000 | 4,993,500 | |||||
10,453,610 | |||||||
Forest and Paper Products - 1.01% | |||||||
Sonoco Products Co., | |||||||
5.6%, 10-1-07 | 5,357 | 5,357,000 | |||||
Health Care - Drugs - 0.56% | |||||||
GlaxoSmithKline Finance plc, | |||||||
5.4%, 10-5-07 | 3,000 | 2,998,200 | |||||
Household - General Products - 2.08% | |||||||
Clorox Co., | |||||||
5.42%, 10-9-07 | 7,000 | 6,991,569 | |||||
Fortune Brands Inc., | |||||||
5.67%, 10-22-07 | 4,125 | 4,111,356 | |||||
11,102,925 | |||||||
Publishing - 0.56% | |||||||
Gannett Co., Inc., | |||||||
5.8%, 10-5-07 | 3,000 | 2,998,067 | |||||
Utilities - Electric - 0.38% | |||||||
Detroit Edison Co., | |||||||
5.415%, 10-11-07 | 2,000 | 1,996,992 | |||||
Utilities - Gas and Pipeline - 1.96% | |||||||
Michigan Consolidated Gas Co.: | |||||||
5.55%, 10-15-07 | 5,000 | 4,989,208 | |||||
5.6%, 10-16-07 | 4,000 | 3,990,667 | |||||
Questar Corporation, | |||||||
5.45%, 10-23-07 | 1,500 | 1,495,004 | |||||
10,474,879 | |||||||
TOTAL SHORT-TERM SECURITIES - 10.61% | $ | 56,587,255 | |||||
(Cost: $56,587,255) | |||||||
TOTAL INVESTMENT SECURITIES - 98.47% | $ | 525,276,220 | |||||
(Cost: $421,128,348) | |||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 1.53% | 8,150,156 | ||||||
NET ASSETS - 100.00% | $ | 533,426,376 | |||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
(A)Listed on an exchange outside the United States. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY SCIENCE AND TECHNOLOGY FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $421,128) (Notes 1 and 3) | $ | 525,276 | ||
Cash denominated in foreign currencies (cost - $90) | 91 | |||
Receivables: | ||||
Investment securities sold | 5,312 | |||
Fund shares sold | 3,877 | |||
Dividends and interest | 15 | |||
Prepaid and other assets | 51 | |||
Total assets | 534,622 | |||
LIABILITIES | ||||
Payable to Fund shareholders | 626 | |||
Due to custodian | 182 | |||
Accrued shareholder servicing (Note 2) | 138 | |||
Payable for investment securities purchased | 94 | |||
Accrued management fee (Note 2) | 37 | |||
Accrued accounting services fee (Note 2) | 12 | |||
Accrued distribution fee (Note 2) | 12 | |||
Accrued service fee (Note 2) | 8 | |||
Other | 87 | |||
Total liabilities | 1,196 | |||
Total net assets | $ | 533,426 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 163 | ||
Additional paid-in capital | 385,322 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (2,132 | ) | ||
Accumulated undistributed net realized gain on investment transactions | 45,923 | |||
Net unrealized appreciation in value of investments | 104,150 | |||
Net assets applicable to outstanding units of capital | $ | 533,426 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $33.16 | |||
Class B | $30.65 | |||
Class C | $31.24 | |||
Class E | $33.06 | |||
Class I | $34.79 | |||
Class R | $33.06 | |||
Class Y | $34.24 | |||
Capital shares outstanding: | ||||
Class A | 7,467 | |||
Class B | 740 | |||
Class C | 4,129 | |||
Class E | 20 | |||
Class I | 81 | |||
Class R | 23 | |||
Class Y | 3,793 | |||
Capital shares authorized | 350,000 |
See Notes to Financial Statements.
Statement of Operations
IVY SCIENCE AND TECHNOLOGY FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 988 | ||
Dividends (net of foreign withholding taxes of $64) | 779 | |||
Total income | 1,767 | |||
Expenses (Note 2): | ||||
Investment management fee | 1,926 | |||
Distribution fee: | ||||
Class B | 76 | |||
Class C | 442 | |||
Class E | –– | * | ||
Class R | 1 | |||
Class Y | 130 | |||
Shareholder servicing: | ||||
Class A | 264 | |||
Class B | 47 | |||
Class C | 182 | |||
Class E | 2 | |||
Class I | 2 | |||
Class R | 1 | |||
Class Y | 85 | |||
Service fee: | ||||
Class A | 261 | |||
Class B | 25 | |||
Class C | 148 | |||
Class R | 1 | |||
Accounting services fee | 70 | |||
Custodian fees | 36 | |||
Audit fees | 13 | |||
Legal fees | 3 | |||
Other | 127 | |||
Total expenses | 3,842 | |||
Net investment loss | (2,075 | ) | ||
REALIZED AND UNREALIZED GAIN | ||||
(LOSS) ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on securities | 35,947 | |||
Realized net loss on foreign currency exchange transactions | (16 | ) | ||
Realized net gain on investments | 35,931 | |||
Unrealized appreciation in value of investments during the period | 31,784 | |||
Net gain on investments | 67,715 | |||
Net increase in net assets resulting from operations | $ | 65,640 | ||
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY SCIENCE AND TECHNOLOGY FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment loss | $ | (2,075 | ) | $ | (4,048 | ) | |||
Realized net gain on investments | 35,931 | 13,291 | |||||||
Unrealized appreciation | 31,784 | 10,029 | |||||||
Net increase in net assets resulting from operations | 65,640 | 19,272 | |||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (–– | ) | |||||
Class Y | (–– | ) | (–– | ) | |||||
Realized gains on investment transactions: | |||||||||
�� Class A | (–– | ) | (366 | ) | |||||
Class B | (–– | ) | (42 | ) | |||||
Class C | (–– | ) | (251 | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (–– | )* | |||||
Class Y | (–– | ) | (149 | ) | |||||
(–– | ) | (808 | ) | ||||||
Capital share transactions (Note 5) | 77,096 | 19,752 | |||||||
Total increase | 142,736 | 38,216 | |||||||
NET ASSETS | |||||||||
Beginning of period | 390,690 | 352,474 | |||||||
End of period | $ | 533,426 | $ | 390,690 | |||||
Undistributed net investment loss | $ | (2,132 | ) | $ | (41 | ) | |||
*Not shown due to rounding.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 28.70 | $ | 27.08 | $ | 21.34 | $ | 19.55 | $ | 14.17 | $ | 18.19 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.13 | ) | (0.23 | ) | (0.30 | ) | (0.28 | ) | (0.19 | ) | (0.32 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 4.59 | 1.91 | 6.04 | 2.07 | 5.57 | (3.70 | ) | |||||||||||||
Total from investment operations | 4.46 | 1.68 | 5.74 | 1.79 | 5.38 | (4.02 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 33.16 | $ | 28.70 | $ | 27.08 | $ | 21.34 | $ | 19.55 | $ | 14.17 | ||||||||
Total return(1) | 15.54 | % | 6.22 | % | 26.90 | % | 9.16 | % | 37.97 | % | - -22.10 | % | ||||||||
Net assets, end of period (in millions) | $247 | $185 | $164 | $55 | $36 | $14 | ||||||||||||||
Ratio of expenses to average net assets | 1.46 | %(2) | 1.47 | % | 1.51 | % | 1.70 | % | 1.80 | % | 1.79 | % | ||||||||
Ratio of net investment loss to average net assets | - -0.68 | %(2) | - -0.88 | % | - -1.02 | % | - -1.09 | % | - -1.35 | % | - -0.92 | % | ||||||||
Portfolio turnover rate | 41 | % | 81 | % | 112 | % | 106 | % | 114 | % | 74 | % |
(1)Total return calculated without taking into account the sales load deducted on an initial purchase.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 26.66 | $ | 25.42 | $ | 20.24 | $ | 18.77 | $ | 13.77 | $ | 17.88 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.19 | ) | (0.48 | ) | (0.40 | ) | (0.42 | ) | (0.39 | ) | (0.34 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 4.18 | 1.78 | 5.58 | 1.89 | 5.39 | (3.77 | ) | |||||||||||||
Total from investment operations | 3.99 | 1.30 | 5.18 | 1.47 | 5.00 | (4.11 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 30.65 | $ | 26.66 | $ | 25.42 | $ | 20.24 | $ | 18.77 | $ | 13.77 | ||||||||
Total return | 15.00 | % | 5.13 | % | 25.59 | % | 7.83 | % | 36.31 | % | - -22.99 | % | ||||||||
Net assets, end of period (in millions) | $22 | $19 | $18 | $12 | $11 | $4 | ||||||||||||||
Ratio of expenses to average net assets | 2.44 | %(1) | 2.51 | % | 2.58 | % | 2.90 | % | 3.06 | % | 3.00 | % | ||||||||
Ratio of net investment loss to average net assets | - -1.66 | %(1) | - -1.91 | % | - -2.10 | % | - -2.31 | % | - -2.60 | % | - -2.12 | % | ||||||||
Portfolio turnover rate | 41 | % | 81 | % | 112 | % | 106 | % | 114 | % | 74 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 27.14 | $ | 25.84 | $ | 20.53 | $ | 18.98 | $ | 13.88 | $ | 17.97 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.20 | ) | (0.49 | ) | (0.43 | ) | (0.42 | ) | (0.38 | ) | (0.25 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 4.30 | 1.85 | 5.74 | 1.97 | 5.48 | (3.84 | ) | |||||||||||||
Total from investment operations | 4.10 | 1.36 | 5.31 | 1.55 | 5.10 | (4.09 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 31.24 | $ | 27.14 | $ | 25.84 | $ | 20.53 | $ | 18.98 | $ | 13.88 | ||||||||
Total return | 15.06 | % | 5.32 | % | 25.86 | % | 8.17 | % | 36.74 | % | - -22.76 | % | ||||||||
Net assets, end of period (in millions) | $129 | $109 | $113 | $88 | $89 | $70 | ||||||||||||||
Ratio of expenses to average net assets | 2.27 | %(1) | 2.33 | % | 2.38 | % | 2.58 | % | 2.66 | % | 2.67 | % | ||||||||
Ratio of net investment loss to average net assets | - -1.50 | %(1) | - -1.74 | % | - -1.90 | % | - -2.00 | % | - -2.15 | % | - -1.77 | % | ||||||||
Portfolio turnover rate | 41 | % | 81 | % | 112 | % | 106 | % | 114 | % | 74 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 28.70 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.28 | )(2) | |||
Net realized and unrealized gain on investments | 4.64 | (2) | |||
Total from investment operations | 4.36 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 33.06 | |||
Total return(3) | 14.87 | % | |||
Net assets, end of period (in millions) | $1 | ||||
Ratio of expenses to average net assets | 2.58 | %(4) | |||
Ratio of net investment loss to average net assets | - -1.79 | %(4) | |||
Portfolio turnover rate | 41 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 29.62 | |||
Income (loss) from investment operations: | |||||
Net investment loss | (0.05 | )(2) | |||
Net realized and unrealized gain on investments | 5.22 | (2) | |||
Total from investment operations | 5.17 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 34.79 | |||
Total return | 17.10 | % | |||
Net assets, end of period (in millions) | $3 | ||||
Ratio of expenses to average net assets | 1.11 | %(3) | |||
Ratio of net investment loss to average net assets | - -0.33 | %(3) | |||
Portfolio turnover rate | 41 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended | For the period from 12-29-05(1) to | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 3-31-07 | 3-31-06 | |||||||||||||
Net asset value, beginning of period | $ | 28.64 | $ | 27.07 | $ | 25.77 | |||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss | (0.18 | ) | (0.27 | ) | (0.09 | ) | |||||||||
Net realized and unrealized gain on investments | 4.60 | 1.90 | 1.39 | ||||||||||||
Total from investment operations | 4.42 | 1.63 | 1.30 | ||||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (0.06 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 33.06 | $ | 28.64 | $ | 27.07 | |||||||||
Total return | 15.43 | % | 6.03 | % | 5.05 | % | |||||||||
Net assets, end of period (in thousands) | $764 | $429 | $105 | ||||||||||||
Ratio of expenses to average net assets | 1.64 | %(2) | 1.65 | % | 1.68 | %(2) | |||||||||
Ratio of net investment loss to average net assets | - -0.86 | %(2) | - -1.08 | % | - -1.29 | %(2) | |||||||||
Portfolio turnover rate | 41 | % | 81 | % | 112 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SCIENCE AND TECHNOLOGY FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||
Net asset value, beginning of period | $ | 29.62 | $ | 27.92 | $ | 21.96 | $ | 20.07 | $ | 14.51 | $ | 18.54 | ||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment loss | (0.16 | )(1) | (0.22 | ) | (0.27 | ) | (0.18 | )(1) | (0.15 | ) | (0.26 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | 4.78 | (1) | 1.98 | 6.23 | 2.07 | (1) | 5.71 | (3.77 | ) | |||||||||||
Total from investment operations | 4.62 | 1.76 | 5.96 | 1.89 | 5.56 | (4.03 | ) | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Capital gains | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Total distributions | (0.00 | ) | (0.06 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||||
Net asset value, end of period | $ | 34.24 | $ | 29.62 | $ | 27.92 | $ | 21.96 | $ | 20.07 | $ | 14.51 | ||||||||
Total return | 15.63 | % | 6.32 | % | 27.14 | % | 9.42 | % | 38.32 | % | - -21.74 | % | ||||||||
Net assets, end of period (in millions) | $130 | $78 | $57 | $33 | $9 | $3 | ||||||||||||||
Ratio of expenses to average net assets | 1.36 | %(2) | 1.35 | % | 1.37 | % | 1.45 | % | 1.45 | % | 1.41 | % | ||||||||
Ratio of net investment loss to average net assets | - -0.58 | %(2) | - -0.76 | % | - -0.88 | % | - -0.87 | % | - -1.03 | % | - -0.53 | % | ||||||||
Portfolio turnover rate | 41 | % | 81 | % | 112 | % | 106 | % | 114 | % | 74 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
SHAREHOLDER SUMMARY OF IVY SMALL CAP GROWTH FUND
Portfolio Highlights
On September 30, 2007, Ivy Small Cap Growth Fund had net assets totaling $568,753,765
invested in a diversified portfolio of:
93.12% | Domestic Common Stocks and Warrants | |
5.52% | Cash and Cash Equivalents | |
1.36% | Foreign Common Stocks |
As a shareholder of the Fund, for every $100 you had invested on September 30, 2007,
your Fund owned:
Business Equipment and Services Stocks | $ | 21.82 | |||
Technology Stocks | $ | 19.10 | |||
Health Care Stocks | $ | 16.62 | |||
Energy Stocks | $ | 8.49 | |||
Financial Services Stocks | $ | 6.06 | |||
Cash and Cash Equivalents | $ | 5.52 | |||
Consumer Services Stocks | $ | 5.29 | |||
Miscellaneous Stocks | $ | 4.95 | |||
Consumer Durables Stocks | $ | 4.58 | |||
Retail Stocks | $ | 4.11 | |||
Capital Goods Stocks | $ | 3.46 |
The Investments of Ivy Small Cap Growth Fund | ||||||||
September 30, 2007 (Unaudited) | ||||||||
COMMON STOCKS AND WARRANTS | Shares | Value | ||||||
Business Equipment and Services - 13.87% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 453,000 | $ | 12,235,530 | |||||
Bucyrus International, Inc., Class A | 156,300 | 11,396,614 | ||||||
Capella Education Company* | 168,440 | 9,426,745 | ||||||
DealerTrack Holdings, Inc.* | 235,000 | 9,826,525 | ||||||
Heartland Payment Systems, Inc. | 216,100 | 5,553,770 | ||||||
Resources Connection, Inc. | 510,102 | 11,816,513 | ||||||
Tetra Tech, Inc.* | 334,000 | 7,037,380 | ||||||
VeriFone Holdings, Inc.* | 151,300 | 6,707,129 | ||||||
Zoltek Companies, Inc.* | 111,700 | 4,867,886 | ||||||
78,868,092 | ||||||||
Communications Equipment - 4.44% | ||||||||
General Cable Corporation* | 208,100 | 13,967,672 | ||||||
Polycom, Inc.* | 420,800 | 11,306,896 | ||||||
25,274,568 | ||||||||
Computers - Micro - 1.44% | ||||||||
Sonic Solutions* | 786,500 | 8,214,993 | ||||||
Computers - Peripherals - 8.74% | ||||||||
ACI Worldwide, Inc.* | 539,900 | 12,074,863 | ||||||
Advent Software, Inc.* | 148,200 | 6,958,731 | ||||||
MICROS Systems, Inc.* | 274,400 | 17,848,348 | ||||||
Stratasys, Inc.* | 278,000 | 7,651,950 | ||||||
Vital Images, Inc.* | 266,500 | 5,194,085 | ||||||
49,727,977 | ||||||||
Consumer Electronics - 2.48% | ||||||||
DTS, Inc.* | 464,200 | 14,088,470 | ||||||
Cosmetics and Toiletries - 1.85% | ||||||||
Bare Escentuals, Inc.* | 423,200 | 10,524,984 | ||||||
Defense - 1.57% | ||||||||
DRS Technologies, Inc. | 161,800 | 8,918,416 | ||||||
Electrical Equipment - 1.69% | ||||||||
Microsemi Corporation* | 345,000 | 9,611,700 | ||||||
Electronic Components - 1.08% | ||||||||
PMC-Sierra, Inc.* | 729,100 | 6,120,795 | ||||||
Electronic Instruments - 1.83% | ||||||||
APW Ltd., Warrants (A)* | 19 | 0 | ** | |||||
Trimble Navigation Limited* | 265,900 | 10,416,633 | ||||||
10,416,633 | ||||||||
Finance Companies - 5.39% | ||||||||
Financial Federal Corporation | 336,975 | 9,438,670 | ||||||
Portfolio Recovery Associates, Inc. | 339,200 | 17,953,856 | ||||||
XL Capital Assurance Inc. | 141,500 | 3,231,860 | ||||||
30,624,386 | ||||||||
Health Care - Drugs - 4.35% | ||||||||
Adams Respiratory Therapeutics, Inc.* | 296,300 | 11,416,439 | ||||||
Martek Biosciences Corporation* | 458,322 | 13,298,213 | ||||||
24,714,652 | ||||||||
Health Care - General - 4.84% | ||||||||
Kyphon Inc.* | 209,900 | 14,691,951 | ||||||
Omnicell, Inc.* | 248,300 | 7,071,584 | ||||||
Volcano Corporation* | 352,300 | 5,791,812 | ||||||
27,555,347 | ||||||||
Hospital Supply and Management - 7.43% | ||||||||
athenahealth, Inc.* | 18,500 | 626,317 | ||||||
Cerner Corporation* | 153,300 | 9,165,807 | ||||||
Healthways, Inc.* | 268,500 | 14,482,890 | ||||||
PSS World Medical, Inc.* | 941,100 | 18,012,654 | ||||||
42,287,668 | ||||||||
Hotels and Gaming - 3.27% | ||||||||
Scientific Games Corporation, Class A* | 495,200 | 18,609,616 | ||||||
Insurance - Property and Casualty - 0.67% | ||||||||
eHealth, Inc.* | 137,500 | 3,799,812 | ||||||
Leisure Time Industry - 0.82% | ||||||||
THQ Inc.* | 187,500 | 4,684,688 | ||||||
Metal Fabrication - 1.77% | ||||||||
Ladish Co., Inc.* | 181,300 | 10,047,646 | ||||||
Motor Vehicle Parts - 2.10% | ||||||||
LKQ Corporation* | 343,500 | 11,950,365 | ||||||
Petroleum - Domestic - 1.79% | ||||||||
Bill Barrett Corporation* | 144,200 | 5,682,922 | ||||||
Continental Resources, Inc.* | 248,200 | 4,502,348 | ||||||
10,185,270 | ||||||||
Petroleum - International - 1.25% | ||||||||
Newfield Exploration Company* | 147,800 | 7,118,048 | ||||||
Petroleum - Services - 5.45% | ||||||||
Core Laboratories N.V.* | 35,300 | 4,496,867 | ||||||
Dril-Quip, Inc.* | 299,700 | 14,790,195 | ||||||
Oceaneering International, Inc.* | 154,300 | 11,695,940 | ||||||
30,983,002 | ||||||||
Publishing - 1.20% | ||||||||
IHS Inc., Class A* | 120,900 | 6,829,641 | ||||||
Railroad - 1.88% | ||||||||
Westinghouse Air Brake Technologies Corporation | 285,700 | 10,702,322 | ||||||
Restaurants - 1.21% | ||||||||
P.F. Chang's China Bistro, Inc.* | 232,700 | 6,883,266 | ||||||
Retail - Specialty Stores - 2.90% | ||||||||
Coldwater Creek Inc.* | 606,800 | 6,586,814 | ||||||
Knot, Inc. (The)* | 194,100 | 4,125,595 | ||||||
Tween Brands, Inc.* | 176,400 | 5,792,976 | ||||||
16,505,385 | ||||||||
Timesharing and Software - 7.95% | ||||||||
Blackboard Inc.* | 240,100 | 10,998,981 | ||||||
CoStar Group, Inc.* | 68,100 | 3,636,540 | ||||||
Concur Technologies, Inc.* | 124,700 | 3,926,803 | ||||||
F5 Networks, Inc.* | 235,500 | 8,752,357 | ||||||
FactSet Research Systems, Inc. | 103,225 | 7,076,074 | ||||||
Internap Network Services Corporation* | 180,600 | 2,560,005 | ||||||
Ultimate Software Group, Inc. (The)* | 237,100 | 8,248,709 | ||||||
45,199,469 | ||||||||
Utilities - Electric - 1.22% | ||||||||
Pike Electric Corporation* | 368,700 | 6,916,812 | ||||||
TOTAL COMMON STOCKS AND WARRANTS - 94.48% | $ | 537,364,023 | ||||||
(Cost: $435,345,570) | ||||||||
SHORT-TERM SECURITIES | Principal Amount in Thousands | |||||||
Beverages - 0.26% | ||||||||
Diageo Capital plc (Diageo plc), | ||||||||
5.9%, 10-10-07 | $ | 1,500 | 1,497,788 | |||||
Chemicals - Specialty - 0.52% | ||||||||
Air Products and Chemicals, Inc., | ||||||||
5.05%, 10-1-07 | $ | 2,983 | 2,983,000 | |||||
Construction Materials - 0.53% | ||||||||
Black & Decker Corp., | ||||||||
5.36%, 10-17-07 | 3,000 | 2,992,853 | ||||||
Food and Related - 0.97% | ||||||||
ConAgra Foods, Inc., | ||||||||
5.23%, 10-3-07 | 1,500 | 1,499,564 | ||||||
General Mills, Inc., | ||||||||
5.605%, 10-4-07 | 1,000 | 999,533 | ||||||
Kellogg Co., | ||||||||
5.75%, 10-12-07 | 3,000 | 2,994,729 | ||||||
5,493,826 | ||||||||
Health Care - Drugs - 0.53% | ||||||||
GlaxoSmithKline Finance plc, | ||||||||
5.4%, 10-5-07 | 3,000 | 2,998,200 | ||||||
Household - General Products - 0.73% | ||||||||
Clorox Co., | ||||||||
5.7%, 10-12-07 | 4,186 | 4,178,709 | ||||||
Publishing - 0.53% | ||||||||
Gannett Co., Inc., | ||||||||
5.8%, 10-5-07 | 3,000 | 2,998,067 | ||||||
Retail - General Merchandise - 0.96% | ||||||||
Home Depot Inc., | ||||||||
5.5%, 11-9-07 | 5,500 | 5,467,229 | ||||||
TOTAL SHORT-TERM SECURITIES - 5.03% | $ | 28,609,672 | ||||||
(Cost: $28,609,672) | ||||||||
TOTAL INVESTMENT SECURITIES - 99.51% | $ | 565,973,695 | ||||||
(Cost: $463,955,242) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES - 0.49% | 2,780,070 | |||||||
NET ASSETS - 100.00% | $ | 568,753,765 | ||||||
Notes to Schedule of Investments |
Certain acronyms may be used within the body of the Fund's holdings. The definitions of these acronyms are as follows: ADR - American Depositary Receipts; CMO - Collateralized Mortgage Obligation; GDR - Global Depositary Receipts; and REMIC - Real Estate Mortgage Investment Conduit. |
*No dividends were paid during the preceding 12 months. |
**Not shown due to rounding. |
(A)Security valued in good faith by the Valuation Committee subject to the supervision of the Board of Directors. |
See Note 1 to financial statements for security valuation and other significant accounting policies concerning investments. |
See Note 3 to financial statements for cost and unrealized appreciation and depreciation of investments owned for Federal income tax purposes. |
Statement of Assets and Liabilities
IVY SMALL CAP GROWTH FUND
September 30, 2007
(In Thousands, Except for Per Share Amounts) (Unaudited)
ASSETS | ||||
Investment securities - at value (cost - $463,955) (Notes 1 and 3) | $ | 565,974 | ||
Receivables: | ||||
Investment securities sold | 11,255 | |||
Fund shares sold | 293 | |||
Prepaid and other assets | 43 | |||
Total assets | 577,565 | |||
LIABILITIES | ||||
Payable for investment securities purchased | 7,386 | |||
Payable to Fund shareholders | 1,012 | |||
Accrued shareholder servicing (Note 2) | 137 | |||
Due to custodian | 47 | |||
Accrued management fee (Note 2) | 40 | |||
Accrued distribution fee (Note 2) | 20 | |||
Accrued accounting services fee (Note 2) | 14 | |||
Accrued service fee (Note 2) | 8 | |||
Other | 147 | |||
Total liabilities | 8,811 | |||
Total net assets | $ | 568,754 | ||
NET ASSETS | ||||
$0.01 par value capital stock: | ||||
Capital stock | $ | 399 | ||
Additional paid-in capital | 419,678 | |||
Accumulated undistributed income (loss): | ||||
Accumulated undistributed net investment loss | (3,047 | ) | ||
Accumulated undistributed net realized gain on investment transactions | 49,706 | |||
Net unrealized appreciation in value of investments | 102,018 | |||
Net assets applicable to outstanding units of capital | $ | 568,754 | ||
Net asset value per share (net assets divided by shares outstanding): | ||||
Class A | $14.35 | |||
Class B | $13.17 | |||
Class C | $13.46 | |||
Class E | $14.32 | |||
Class I | $16.08 | |||
Class R | $14.32 | |||
Class Y | $15.83 | |||
Capital shares outstanding: | ||||
Class A | 8,827 | |||
Class B | 1,210 | |||
Class C | 19,343 | |||
Class E | 20 | |||
Class I | 127 | |||
Class R | 13 | |||
Class Y | 10,320 | |||
Capital shares authorized | 500,000 |
See Notes to Financial Statements.
Statement of Operations
IVY SMALL CAP GROWTH FUND
For the Six Months Ended September 30, 2007
(In Thousands) (Unaudited)
INVESTMENT LOSS | ||||
Income (Note 1B): | ||||
Interest and amortization | $ | 1,238 | ||
Dividends | 846 | |||
Total income | 2,084 | |||
Expenses (Note 2): | ||||
Investment management fee | 2,350 | |||
Distribution fee: | ||||
Class B | 59 | |||
Class C | 979 | |||
Class E | –– | * | ||
Class R | –– | * | ||
Class Y | 198 | |||
Shareholder servicing: | ||||
Class A | 215 | |||
Class B | 36 | |||
Class C | 314 | |||
Class E | 1 | |||
Class I | 2 | |||
Class R | –– | * | ||
Class Y | 121 | |||
Service fee: | ||||
Class A | 145 | |||
Class B | 20 | |||
Class C | 326 | |||
Class R | –– | * | ||
Accounting services fee | 81 | |||
Audit fees | 17 | |||
Custodian fees | 9 | |||
Legal fees | 3 | |||
Other | 143 | |||
Total expenses | 5,019 | |||
Net investment loss | (2,935 | ) | ||
REALIZED AND UNREALIZED GAIN | ||||
ON INVESTMENTS (NOTES 1 AND 3) | ||||
Realized net gain on investments | 44,550 | |||
Unrealized appreciation in value of investments during the period | 12,978 | |||
Net gain on investments | 57,528 | |||
Net increase in net assets resulting from operations | $ | 54,593 | ||
*Not shown due to rounding.
See Notes to Financial Statements.
Statement of Changes in Net Assets
IVY SMALL CAP GROWTH FUND
(In Thousands) (Unaudited)
For the six months ended September 30, 2007 | For the fiscal year ended March 31, 2007 | ||||||||
---|---|---|---|---|---|---|---|---|---|
INCREASE (DECREASE) IN NET ASSETS | |||||||||
Operations: | |||||||||
Net investment loss | $ | (2,935 | ) | $ | (6,809 | ) | |||
Realized net gain on investments | 44,550 | 42,147 | |||||||
Unrealized appreciation (depreciation) | 12,978 | (41,418 | ) | ||||||
Net increase (decrease) in net assets resulting from operations | 54,593 | (6,080 | ) | ||||||
Distributions to shareholders from (Note 1F):(1) | |||||||||
Net investment income: | |||||||||
Class A | (–– | ) | (–– | ) | |||||
Class B | (–– | ) | (–– | ) | |||||
Class C | (–– | ) | (–– | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (–– | ) | |||||
Class Y | (–– | ) | (–– | ) | |||||
Realized gains on investment transactions: | |||||||||
Class A | (–– | ) | (15,243 | ) | |||||
Class B | (–– | ) | (2,343 | ) | |||||
Class C | (–– | ) | (38,368 | ) | |||||
Class E | (–– | ) | NA | ||||||
Class I | (–– | ) | NA | ||||||
Class R | (–– | ) | (15 | ) | |||||
Class Y | (–– | ) | (19,803 | ) | |||||
(–– | ) | (75,772 | ) | ||||||
Capital share transactions (Note 5) | (23,519 | ) | (41,869 | ) | |||||
Total increase (decrease) | 31,074 | (123,721 | ) | ||||||
NET ASSETS | |||||||||
Beginning of period | 537,680 | 661,401 | |||||||
End of period | $ | 568,754 | $ | 537,680 | |||||
Undistributed net investment loss | $ | (3,047 | ) | $ | (112 | ) | |||
(1)See "Financial Highlights" on pages 209 - 215.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class A Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.98 | $ | 14.87 | $ | 12.32 | $ | 11.36 | $ | 8.25 | $ | 10.59 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.07 | ) | (0.12 | )(1) | (0.21 | ) | (0.08 | ) | (0.08 | ) | (0.23 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.44 | 0.18 | (1) | 3.22 | 1.04 | 3.19 | (2.11 | ) | |||||||||||||
Total from investment operations | 1.37 | 0.06 | 3.01 | 0.96 | 3.11 | (2.34 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 14.35 | $ | 12.98 | $ | 14.87 | $ | 12.32 | $ | 11.36 | $ | 8.25 | |||||||||
Total return(2) | 10.56 | % | 0.76 | % | 24.70 | % | 8.45 | % | 37.70 | % | - -22.10 | % | |||||||||
Net assets, end of period (in millions) | $127 | $109 | $141 | $72 | $92 | $20 | |||||||||||||||
Ratio of expenses to average net assets | 1.57 | %(3) | 1.49 | % | 1.50 | % | 1.54 | % | 1.48 | % | 1.54 | % | |||||||||
Ratio of net investment loss to average net assets | - -0.82 | %(3) | - -0.86 | % | - -0.90 | % | - -1.14 | % | - -1.21 | % | - -1.22 | % | |||||||||
Portfolio turnover rate | 40 | % | 96 | % | 87 | % | 83 | % | 91 | % | 31 | % |
(1)Based on average weekly shares outstanding.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class B Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 11.97 | $ | 13.99 | $ | 11.73 | $ | 10.91 | $ | 8.01 | $ | 10.40 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.12 | ) | (0.24 | ) | (0.23 | ) | (0.23 | ) | (0.20 | ) | (0.21 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.32 | 0.17 | 2.95 | 1.05 | 3.10 | (2.18 | ) | ||||||||||||||
Total from investment operations | 1.20 | (0.07 | ) | 2.72 | 0.82 | 2.90 | (2.39 | ) | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 13.17 | $ | 11.97 | $ | 13.99 | $ | 11.73 | $ | 10.91 | $ | 8.01 | |||||||||
Total return | 10.03 | % | - -0.15 | % | 23.46 | % | 7.52 | % | 36.21 | % | - -22.98 | % | |||||||||
Net assets, end of period (in millions) | $16 | $16 | $19 | $15 | $13 | $7 | |||||||||||||||
Ratio of expenses to average net assets | 2.43 | %(1) | 2.45 | % | 2.45 | % | 2.52 | % | 2.57 | % | 2.64 | % | |||||||||
Ratio of net investment loss to average net assets | - -1.67 | %(1) | - -1.82 | % | - -1.86 | % | - -2.11 | % | - -2.29 | % | - -2.31 | % | |||||||||
Portfolio turnover rate | 40 | % | 96 | % | 87 | % | 83 | % | 91 | % | 31 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class C Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 12.22 | $ | 14.20 | $ | 11.87 | $ | 11.02 | $ | 8.07 | $ | 10.44 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.13 | ) | (0.23 | ) | (0.25 | ) | (0.24 | ) | (0.21 | ) | (0.16 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.37 | 0.20 | 3.04 | 1.09 | 3.16 | (2.21 | ) | ||||||||||||||
Total from investment operations | 1.24 | (0.03 | ) | 2.79 | 0.85 | 2.95 | (2.37 | ) | |||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 13.46 | $ | 12.22 | $ | 14.20 | $ | 11.87 | $ | 11.02 | $ | 8.07 | |||||||||
Total return | 10.15 | % | 0.14 | % | 23.78 | % | 7.71 | % | 36.56 | % | - -22.70 | % | |||||||||
Net assets, end of period (in millions) | $260 | $259 | $328 | $308 | $334 | $273 | |||||||||||||||
Ratio of expenses to average net assets | 2.19 | %(1) | 2.20 | % | 2.20 | % | 2.26 | % | 2.31 | % | 2.31 | % | |||||||||
Ratio of net investment loss to average net assets | - -1.43 | %(1) | - -1.57 | % | - -1.62 | % | - -1.85 | % | - -2.03 | % | - -1.98 | % | |||||||||
Portfolio turnover rate | 40 | % | 96 | % | 87 | % | 83 | % | 91 | % | 31 | % |
(1)Annualized.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class E Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 12.98 | |||
Income from investment operations: | |||||
Net investment income | 0.01 | (2) | |||
Net realized and unrealized gain on investments | 1.33 | (2) | |||
Total from investment operations | 1.34 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 14.32 | |||
Total return(3) | 9.98 | % | |||
Net assets, end of period (in thousands) | $278 | ||||
Ratio of expenses to average net assets | 2.12 | %(4) | |||
Ratio of net investment loss to average net assets | - -1.33 | %(4) | |||
Portfolio turnover rate | 40 | %(5) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class I Shares
For a Share of Capital Stock Outstanding Throughout the Period: (Unaudited)
For the period from 4-2-07(1) through | |||||
---|---|---|---|---|---|
9-30-07 | |||||
Net asset value, beginning of period | $ | 14.31 | |||
Income from investment operations: | |||||
Net investment income | 0.16 | (2) | |||
Net realized and unrealized gain on investments | 1.61 | (2) | |||
Total from investment operations | 1.77 | ||||
Less distributions from: | |||||
Net investment income | (0.00 | ) | |||
Capital gains | (0.00 | ) | |||
Total distributions | (0.00 | ) | |||
Net asset value, end of period | $ | 16.08 | |||
Total return | 12.06 | % | |||
Net assets, end of period (in millions) | $2 | ||||
Ratio of expenses to average net assets | 1.09 | %(3) | |||
Ratio of net investment loss to average net assets | - -0.33 | %(3) | |||
Portfolio turnover rate | 40 | %(4) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class R Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended 9-30-07 | For the fiscal year ended 3-31-07 | For the period from 12-29-05(1) to 3-31-06 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net asset value, beginning of period | $ | 12.96 | $ | 14.87 | $ | 13.78 | |||||||||
Income (loss) from investment operations: | |||||||||||||||
Net investment loss | (0.10 | ) | (0.15 | ) | (0.04 | ) | |||||||||
Net realized and unrealized gain on investments | 1.46 | 0.19 | 1.13 | ||||||||||||
Total from investment operations | 1.36 | 0.04 | 1.09 | ||||||||||||
Less distributions from: | |||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.95 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.95 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 14.32 | $ | 12.96 | $ | 14.87 | |||||||||
Total return | 10.49 | % | 0.62 | % | 7.91 | % | |||||||||
Net assets, end of period (in thousands) | $185 | $114 | $108 | ||||||||||||
Ratio of expenses to average net assets | 1.62 | %(2) | 1.63 | % | 1.67 | %(2) | |||||||||
Ratio of net investment loss to average net assets | - -0.83 | %(2) | - -1.01 | % | - -0.99 | %(2) | |||||||||
Portfolio turnover rate | 40 | % | 96 | % | 87 | %(3) |
(1)Commencement of operations of the class.
See Notes to Financial Statements.
Financial Highlights
IVY SMALL CAP GROWTH FUND
Class Y Shares
For a Share of Capital Stock Outstanding Throughout Each Period: (Unaudited)
For the six months ended | For the fiscal year ended March 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
9-30-07 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Net asset value, beginning of period | $ | 14.31 | $ | 16.15 | $ | 13.33 | $ | 12.26 | $ | 8.89 | $ | 11.39 | |||||||||
Income (loss) from investment operations: | |||||||||||||||||||||
Net investment loss | (0.03 | ) | (0.11 | ) | (0.16 | ) | (0.09 | ) | (0.10 | ) | (0.11 | ) | |||||||||
Net realized and unrealized gain (loss) on investments | 1.55 | 0.22 | 3.44 | 1.16 | 3.47 | (2.39 | ) | ||||||||||||||
Total from investment operations | 1.52 | 0.11 | 3.28 | 1.07 | 3.37 | (2.50 | ) | ||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Capital gains | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Total distributions | (0.00 | ) | (1.95 | ) | (0.46 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | |||||||||
Net asset value, end of period | $ | 15.83 | $ | 14.31 | $ | 16.15 | $ | 13.33 | $ | 12.26 | $ | 8.89 | |||||||||
Total return | 10.62 | % | 1.02 | % | 24.86 | % | 8.73 | % | 37.91 | % | - -21.95 | % | |||||||||
Net assets, end of period (in millions) | $164 | $154 | $173 | $115 | $124 | $42 | |||||||||||||||
Ratio of expenses to average net assets | 1.33 | %(1) | 1.32 | % | 1.33 | % | 1.36 | % | 1.35 | % | 1.33 | % | |||||||||
Ratio of net investment loss to average net assets | - -0.57 | %(1) | - -0.70 | % | - -0.74 | % | - -0.95 | % | - -1.09 | % | - -1.00 | % | |||||||||
Portfolio turnover rate | 40 | % | 96 | % | 87 | % | 83 | % | 91 | % | 31 | % |
(1)Annualized.
See Notes to Financial Statements.
Notes to Financial Statements
September 30, 2007 (Unaudited)
NOTE 1 - Significant Accounting Policies
Ivy Funds, Inc. (the Corporation) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Corporation issues 12 series of capital shares; each series represents ownership of a separate mutual fund (Fund). The assets belonging to each Fund are held separately by the custodian. The capital shares of each Fund represent a pro rata beneficial interest in the principal, net income and realized and unrealized capital gains or losses of its respective investments and other assets. The following is a summary of significant accounting policies consistently followed by the Corporation in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.
A. Security valuation - Each stock and convertible bond is valued at the latest sale price thereof on each business day of the fiscal period as reported by the principal securities exchange on which the issue is traded or, if no sale is reported for a stock, the average of the latest bid and asked prices. Bonds, other than convertible bonds, are valued using a pricing system provided by a pricing service or dealer in bonds. Convertible bonds are valued using this pricing system only on days when there is no sale reported. Stocks which are traded over-the-counter are priced using the Nasdaq Stock Market, which provides information on bid and asked prices quoted by major dealers in such stocks. Gold bullion is valued at the last settlement price for current delivery as calculated by the Commodity Exchange, Inc. as of the close of that exchange. Securities for which quotations are not readily available or are deemed not to be reliable because of significant events or circumstances identified between the closing of their principal markets and the closing of the New York Stock Exchange are valued at fair value as determined in good faith under procedures established by and under the general supervision of the Corporation's Board of Directors. Management's valuation committee makes fair value determinations for the Corporation, subject to the supervision of the Board of Directors. Short-term debt securities, purchased with less than 60 days to maturity, are valued at amortized cost, which approximates market value. Short-term debt securities denominated in foreign currencies are valued at amortized cost in that currency.B. Security transactions and related investment income - Security transactions are accounted for on the trade date (date the order to buy or sell is executed). Securities gains and losses are calculated on the identified cost basis. Premium and discount on the purchase of bonds are amortized for both financial and tax reporting purposes over the remaining lives of the bonds. Dividend 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 Corporation is informed of the ex-dividend date. Interest income is recorded on the accrual basis. See Note 3 - Investment Securities Transactions.
C. Foreign currency translations - All assets and liabilities denominated in foreign currencies are translated into United States dollars daily. Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. The Corporation combines fluctuations from currency exchange rates and fluctuations in market value when computing net realized and unrealized gain or loss from investments.
D. Forward foreign currency exchange contracts - A forward foreign currency exchange contract (Forward Contract) is an obligation to purchase or sell a specific currency at a future date at a fixed price. Forward Contracts are marked-to-market daily at the applicable translation rates and the resulting unrealized gains or losses are reflected in the Corporation's financial statements. Gains or losses are realized by the Corporation at the time the Forward Contract is extinguished. Contracts may be extinguished either by entry into a closing transaction or by delivery of the currency. Risks may arise from the possibility that the other party will not complete the obligations of the contract and from unanticipated movements in the value of the foreign currency relative to the United States dollar. The Corporation uses Forward Contracts to attempt to reduce the overall risk of its investments or for investment purposes.
E. Federal income taxes - It is the Corporation's policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, the Corporation intends to pay distributions as required to avoid imposition of excise tax. Accordingly, provision has not been made for Federal income taxes. See Note 4 - Federal Income Tax Matters.
F. Dividends and distributions - Dividends and distributions to shareholders are recorded by each Fund on the business day following the applicable record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America. These differences are due to differing treatments for items such as deferral of wash sales and post-October losses, foreign currency transactions, net operating losses and expiring capital loss carryovers. At September 30, 2007, $6,932 was reclassified for Mid Cap Growth Fund between accumulated undistributed net investment loss and additional paid-in capital. Net investment income, accumulated realized capital loss on investment transactions, and net assets were not affected by this change.
G. Repurchase agreements - Repurchase agreements are collateralized by the value of the resold securities which, during the entire period of the agreement, remains at least equal to the value of the loan, including accrued interest thereon. The collateral for the repurchase agreement is held by the custodian bank.
H. New Accounting Pronouncements - In June 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 16, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management has concluded that the adoption of FIN 48 will not result in a material impact on each Fund's net assets, results of operations and financial statement disclosures. In September 2006, FASB issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." SFAS 157 defines fair value for purposes of financial statement presentation, establishes a hierarchy for mea suring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Corporation will adopt SFAS 157 during 2008 and its potential impact, if any, on each Fund's financial statements is currently being assessed by management.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
NOTE 2 - Investment Management and Payments to Affiliated PersonsIvy Investment Management Company (IICO), a wholly owned subsidiary of Waddell & Reed Financial, Inc. (WDR), serves as the Corporation's investment manager. Prior to March 8, 2005, IICO was known as Waddell & Reed Ivy Investment Company. IICO provides advice and supervises investments, for which services it is paid a fee. Prior to June 30, 2003, Waddell & Reed Investment Management Company (WRIMCO), a wholly owned subsidiary of Waddell & Reed, Inc. (W&R), served as the investment manager. On June 30, 2003, WRIMCO assigned the investment management agreement between it and the Corporation to Waddell & Reed Ivy Investment Company, an affiliated entity. The fee is payable by each Fund at the following annual rates:
Fund | Net Asset Breakpoints | Annual Rate |
---|---|---|
Ivy Asset Strategy Fund | Up to $1 Billion | ..700% |
Over $1 Billion up to $2 Billion | ..650% | |
Over $2 Billion up to $3 Billion | ..600% | |
Over $3 Billion | ..550% | |
Ivy Capital Appreciation Fund | Up to $1 Billion | ..650% |
Over $1 Billion up to $2 Billion | ..600% | |
Over $2 Billion up to $3 Billion | ..550% | |
Over $3 Billion | ..500% | |
Ivy Core Equity Fund | Up to $1 Billion | ..700% |
Over $1 Billion up to $2 Billion | ..650% | |
Over $2 Billion up to $3 Billion | ..600% | |
Over $3 Billion | ..550% | |
Ivy Energy Fund | Up to $1 Billion | ..850% |
Over $1 Billion up to $2 Billion | ..830% | |
Over $2 Billion up to $3 Billion | ..800% | |
Over $3 Billion | ..760% | |
Ivy High Income Fund | Up to $500 Million | ..625% |
Over $500 Million up to $1 Billion | ..600% | |
Over $1 Billion up to $1.5 Billion | ..550% | |
Over $1.5 Billion | ..500% | |
Ivy Large Cap Growth Fund | Up to $1 Billion | ..700% |
Over $1 Billion up to $2 Billion | ..650% | |
Over $2 Billion up to $3 Billion | ..600% | |
Over $3 Billion | ..550% | |
Ivy Limited-Term Bond Fund | Up to $500 Million | ..500% |
Over $500 Million up to $1 Billion | ..450% | |
Over $1 Billion up to $1.5 Billion | ..400% | |
Over $1.5 Billion | ..350% | |
Ivy Mid Cap Growth Fund | Up to $1 Billion | ..850% |
Over $1 Billion up to $2 Billion | ..830% | |
Over $2 Billion up to $3 Billion | ..800% | |
Over $3 Billion | ..760% | |
Ivy Money Market Fund | All levels | ..400% |
Ivy Municipal Bond Fund | Up to $500 Million | ..525% |
Over $500 Million up to $1 Billion | ..500% | |
Over $1 Billion up to $1.5 Billion | ..450% | |
Over $1.5 Billion | ..400% | |
Ivy Science and Technology Fund | Up to $1Billion | ..850% |
Over $1 Billion up to $2 Billion | ..830% | |
Over $2 Billion up to $3 Billion | ..800% | |
Over $3 Billion | ..760% | |
Ivy Small Cap Growth Fund | Up to $1 Billion | ..850% |
Over $1 Billion up to $2 Billion | ..830% | |
Over $2 Billion up to $3 Billion | ..800% | |
Over $3 Billion | ..760% |
Effective August 30, 2007, the fee is as follows:
Ivy Core Equity Fund | Up to $1 Billion | ..700% |
Over $1 Billion up to $2 Billion | ..650% | |
Over $2 Billion up to $3 Billion | ..600% | |
Over $3 Billion up to $5 Billion | ..550% | |
Over $5 Billion | ..525% |
The fee is accrued and paid daily. However, IICO has voluntarily agreed to waive a Fund's management fee on any day that the Fund's net assets are less than $25 million, subject to IICO's right to change or modify this waiver. During the six-month period ended September 30, 2007, IICO voluntarily waived its fee (in thousands) as shown in the following table:
Ivy Energy Fund | $ | 60 | |
Ivy Municipal Bond Fund | 13 |
The Corporation has an Accounting Services Agreement with Waddell & Reed Services Company (WRSCO), an indirect subsidiary of WDR. Under the agreement, WRSCO acts as the agent in providing bookkeeping and accounting services and assistance to the Corporation, including maintenance of Fund records, pricing of Fund shares, preparation of prospectuses for existing shareholders, preparation of proxy statements and certain shareholder reports. For these services, each of the Funds pays WRSCO a monthly fee of one-twelfth of the annual fee shown in the following table:
Accounting Services Fee | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Average Net Asset Level (in millions) | Annual Fee Rate for Each Level | |||||||||||
From | $ | 0 | to | $ | 10 | $ | 0 | |||||
From | $ | 10 | to | $ | 25 | $ | 11,500 | |||||
From | $ | 25 | to | $ | 50 | $ | 23,100 | |||||
From | $ | 50 | to | $ | 100 | $ | 35,500 | |||||
From | $ | 100 | to | $ | 200 | $ | 48,400 | |||||
From | $ | 200 | to | $ | 350 | $ | 63,200 | |||||
From | $ | 350 | to | $ | 550 | $ | 82,500 | |||||
From | $ | 550 | to | $ | 750 | $ | 96,300 | |||||
From | $ | 750 | to | $ | 1,000 | $ | 121,600 | |||||
$ | 1,000 and Over | $ | 148,500 | |||||||||
In addition, for each class of shares in excess of one, each Fund pays WRSCO a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.
Each Fund also pays monthly a 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 may be voluntarily waived until a Fund's net assets are at least $10 million.
Under the Shareholder Servicing Agreement between the Corporation and WRSCO, with respect to Class A, Class B, Class C, and Class E shares, for each shareholder account that was in existence at any time during the prior month: Ivy Asset Strategy Fund pays a monthly fee of $1.5792; Ivy High Income Fund, Ivy Limited-Term Bond Fund and Ivy Municipal Bond Fund each pay a monthly fee of $1.6958; and Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Energy Fund, Ivy Large Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Science and Technology Fund and Ivy Small Cap Growth Fund each pay a monthly fee of $1.5042. Ivy Money Market Fund pays a monthly fee of $1.75 for each shareholder account that was in existence at any time during the prior month plus, for Class A shareholder accounts, $0.75 for each shareholder check processed in the prior month. Ivy Limited-Term Bond Fund Class A, which also has check writing privileges, pays $0.75 for each shareholder check processed in the prior month. For Class R shares, ea ch 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. Effective September 1, 2006, the Shareholder Servicing Agreement with respect to Class A, Class B, Class C and Class E shares was revised so that each Fund pays WRSCO an annual fee (payable monthly) for each account of the Fund that is non-networked and is as shown above; however, WRSCO has agreed to reduce those fees if the number of total shareholders accounts within the Complex (Waddell & Reed Advisors Funds, Waddell & Reed InvestEd Portfolios, Inc., Ivy Funds and Ivy Funds, Inc.) reaches certain levels. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WRSCO has agreed to reduce its per account fees charged to the Funds to $ 0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. Each Fund also reimburses WRSCO for certain out-of-pocket costs for all classes.
As principal underwriter for the Corporation's shares, Ivy Funds Distributor, Inc. (IFDI) receives sales commissions (which are not an expense of the Corporation) for Class A and Class E shares. A contingent deferred sales charge (CDSC) may be assessed against a shareholder's redemption amount of Class B, Class C or certain Class A and Class E shares and is paid to IFDI. During the six-month period ended September 30, 2007, IFDI received the following amounts in sales commissions and CDSC:
Sales Commissions | CDSC | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Class A | Class B | Class C | Class E | ||||||||||||
Ivy Asset Strategy Fund | $ | 1,872,862 | $ | 4,448 | $ | 79,263 | $ | 97,438 | $ | –– | |||||
Ivy Capital Appreciation Fund | 323,472 | 10,000 | 4,162 | 1,689 | –– | ||||||||||
Ivy Core Equity Fund | 87,240 | –– | 4,633 | 1,678 | –– | ||||||||||
Ivy Energy Fund | 60,737 | –– | 1,111 | 74 | –– | ||||||||||
Ivy High Income Fund | 249,166 | 212 | 4,170 | 883 | –– | ||||||||||
Ivy Large Cap Growth Fund | 551,597 | –– | 5,595 | 786 | –– | ||||||||||
Ivy Limited-Term Bond Fund | 46,238 | 99 | 1,896 | 368 | –– | ||||||||||
Ivy Mid Cap Growth Fund | 137,049 | 10 | 3,382 | 139 | –– | ||||||||||
Ivy Money Market Fund | –– | –– | 8,624 | 1,449 | –– | ||||||||||
Ivy Municipal Bond Fund | 12,997 | 1,400 | 378 | 67 | –– | ||||||||||
Ivy Science and Technology Fund | 212,089 | 16 | 6,584 | 3,745 | –– | ||||||||||
Ivy Small Cap Growth Fund | 161,742 | 100 | 6,118 | 2,017 | –– |
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 Corporation's shares, except for registration fees and related expenses. During the six-month period ended September 30, 2007, the following amounts were paid:
Ivy Asset Strategy Fund | $ | 10,346,458 | |
Ivy Capital Appreciation Fund | 821,595 | ||
Ivy Core Equity Fund | 105,194 | ||
Ivy Energy Fund | 67,535 | ||
Ivy High Income Fund | 258,532 | ||
Ivy Large Cap Growth Fund | 643,420 | ||
Ivy Limited-Term Bond Fund | 49,960 | ||
Ivy Mid Cap Growth Fund | 145,774 | ||
Ivy Money Market Fund | –– | ||
Ivy Municipal Bond Fund | 13,953 | ||
Ivy Science and Technology Fund | 365,287 | ||
Ivy Small Cap Growth Fund | 185,730 |
Under a Distribution and Service Plan for Class A shares adopted by the Corporation pursuant to Rule 12b-1 under the Investment Company Act of 1940, each Fund may pay a distribution and/or service fee to IFDI in an amount not to exceed 0.25% of the Fund's average annual net assets. The fee is to be paid to compensate IFDI for amounts it expends in connection with the distribution of the Class A shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts.Under the Distribution and Service Plan adopted by the Corporation for Class B shares and Class C shares, respectively, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of a 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 and/or provision of personal services to Class B or Class C shareholders and/or maintenance of shareholder accounts of that class. Unde r the Class E Plan, each Fund pays IFDI a fee not to exceed 0.25% of the Fund's average annual net assets attributable to Class E shares, paid daily to compensate IFDI for its costs and expenses in connection with, either directly or through others, the distribution of the Class E shares, the provision of personal services to Class E shareholders and/or maintenance of Class E shareholder accounts. Under the Class Y Plan, each Fund may pay IFDI a fee of up to 0.25%, on an annual basis, of the average daily net assets of the Fund's Class Y shares to compensate IFDI for, either directly or through third parties, distributing the Class Y shares of that Fund, providing personal services to Class Y shareholders and/or maintaining Class Y shareholder accounts. Under the Class R Plan, each Fund may pay IFDI a fee of up to 0.50%, on an annual basis, of the average daily net assets of the Fund's Class R shares to compensate IFDI for, either directly or through third parties, distributing the Class R shares of that Fun d, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.
IFDI and WRSCO have voluntarily agreed to waive sufficient expenses to Class A of Ivy Money Market Fund in order to maintain the yield at the level of that of Waddell & Reed Advisors Cash Management, Inc. Class A. As of September 30, 2007, no expenses were waived for Ivy Money Market Fund Class A.
This reimbursement serves to reduce shareholder servicing fees.
Effective June 1, 2007 through July 31, 2008, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy Large Cap Growth Fund as follows:
Fund and Class | June 1, 2007 to July 31, 2008 Expense Limitation | ||||
---|---|---|---|---|---|
Ivy Large Cap Growth Fund, Class A | 1.15% | ||||
Ivy Large Cap Growth Fund, Class E | 1.15% | ||||
Ivy Large Cap Growth Fund, Class Y | 1.06% |
During the six-month period ended September 30, 2007, the amount of fees (in thousands) reimbursed under this agreement is as follows:
Ivy Large Cap Growth Fund | |||
Class A | $ | 199 | |
Class E | - -* | ||
Class Y | 51 | ||
*Not shown due to rounding. |
For the period from July 1, 2005 through July 31, 2006, IICO also voluntarily agreed to waive sufficient management fees for Ivy Capital Appreciation Fund to insure that the Class A expense ratio for that Fund did not exceed 1.35%. In addition, for the period from August 1, 2006 through July 31, 2008, IFDI and WRSCO have contractually agreed to reimburse sufficient 12b-1 and/or shareholder servicing fees to cap the expenses for Ivy Capital Appreciation Class A and Class E shares at 1.35%. For the six-month period ended September 30, 2007, no management fee was waived. Additionally, $1 (in thousands) Class E 12b-1 expenses have been waived.
In addition, IFDI and WRSCO have voluntarily agreed to waive sufficient expenses for Class A, Class C and Class Y of Ivy Mid Cap Growth Fund in order to ensure that the total annual Fund operating expenses do not exceed the following levels:
Fund and Class | Expense Limitation (as a percentage of average net assets of each Class) | ||||
---|---|---|---|---|---|
Ivy Mid Cap Growth Fund, Class A | 1.65% | ||||
Ivy Mid Cap Growth Fund, Class C | 2.35% | ||||
Ivy Mid Cap Growth Fund, Class Y | 1.25% |
During the six-month period ended September 30, 2007, the amount of fees (in thousands) reimbursed under this agreement is as follows:
Ivy Mid Cap Growth Fund | |||
Class C | $ | 1 | |
Class Y | 9 |
This reimbursement serves to reduce distribution and service fees.
During the six-month period ended September 30, 2007, the Corporation paid Directors' regular compensation of $112,002, which is included in other expenses.
NOTE 3 - Investment Securities TransactionsInvestment securities transactions for the six-month period ended September 30, 2007 are summarized as follows:
Ivy Asset Strategy Fund | Ivy Capital Appreciation Fund | Ivy Core Equity Fund | |||||||
---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 1,754,769,566 | $ | 337,285,208 | $ | 119,217,643 | |||
Purchases of bullion | 182,930,834 | –– | –– | ||||||
Purchases of U.S. government securities | 337,402,305 | –– | –– | ||||||
Purchases of short-term securities | 11,001,571,668 | 1,013,005,274 | 472,814,245 | ||||||
Purchases of options | 924,367 | –– | –– | ||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 1,081,779,560 | 69,049,147 | 115,704,843 | ||||||
Proceeds from sales of bullion | 60,818,024 | –– | –– | ||||||
Proceeds from maturities and sales of U.S. government securities | 54,195,819 | –– | –– | ||||||
Proceeds from maturities and sales of short-term securities | 10,688,226,872 | 949,522,199 | 472,039,053 | ||||||
Proceeds from options | 298,442 | –– | –– |
Ivy Energy Fund | Ivy High Income Fund | Ivy Large Cap Growth Fund | |||||||
---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 10,100,792 | $ | 77,921,981 | $ | 139,407,279 | |||
Purchases of U.S. government securities | –– | –– | –– | ||||||
Purchases of short-term securities | 142,226,117 | 592,391,104 | 609,483,672 | ||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 1,233,752 | 56,636,821 | 95,643,332 | ||||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | –– | ||||||
Proceeds from maturities and sales of short-term securities | 141,029,908 | 587,164,593 | 574,211,264 |
Ivy Limited- Term Bond Fund | Ivy Mid Cap Growth Fund | Ivy Municipal Bond Fund | |||||||
---|---|---|---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 2,523,335 | $ | 32,690,466 | $ | 12,109,264 | |||
Purchases of U.S. government securities | 35,409,433 | –– | –– | ||||||
Purchases of short-term securities | 254,901,846 | 586,993,184 | 176,273,238 | ||||||
Purchases of options | –– | 32,988,997 | –– | ||||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S. government securities | 10,999,790 | 29,100,758 | 11,438,716 | ||||||
Proceeds from maturities and sales of U.S. government securities | 17,605,543 | –– | –– | ||||||
Proceeds from maturities and sales of short-term securities | 251,429,528 | 583,096,875 | 175,073,176 | ||||||
Proceeds from options | –– | 33,996 | –– |
Ivy Science and Technology Fund | Ivy Small Cap Growth Fund | |||||
---|---|---|---|---|---|---|
Purchases of investment securities, excluding short-term and U.S. government securities | $ | 218,022,286 | $ | 206,510,161 | ||
Purchases of U.S. government securities | –– | –– | ||||
Purchases of short-term securities | 1,419,345,434 | 1,192,366,754 | ||||
Proceeds from maturities and sales of investment securities, excluding short-term and U.S.government securities | 171,078,000 | 236,863,106 | ||||
Proceeds from maturities and sales of U.S. government securities | –– | –– | ||||
Proceeds from maturities and sales of short-term securities | 1,398,954,891 | 1,195,124,460 |
For Federal income tax purposes, cost of investments owned at September 30, 2007 and the related unrealized appreciation (depreciation) were as follows:
Cost | Appreciation | Depreciation | Aggregate Appreciation (Depreciation) | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Ivy Asset Strategy Fund | $ | 3,904,128,303 | $ | 1,064,808,207 | $ | 4,604,685 | $ | 1,060,203,522 | ||||
Ivy Capital Appreciation Fund | 410,862,107 | 44,296,138 | 5,384,945 | 38,911,193 | ||||||||
Ivy Core Equity Fund | 212,933,461 | 69,465,657 | 1,920,455 | 67,545,202 | ||||||||
Ivy Energy Fund | 18,302,242 | 3,565,390 | 196,452 | 3,368,938 | ||||||||
Ivy High Income Fund | 136,317,103 | 1,514,378 | 1,899,457 | (385,079) | ||||||||
Ivy Large Cap Growth Fund | 288,741,823 | 102,321,121 | 1,896,797 | 100,424,324 | ||||||||
Ivy Limited-Term Bond Fund | 65,918,158 | 487,814 | 249,861 | 237,953 | ||||||||
Ivy Mid Cap Growth Fund | 112,047,182 | 52,610,228 | 4,737,870 | 47,872,358 | ||||||||
Ivy Money Market Fund | 83,331,280 | –– | –– | –– | ||||||||
Ivy Municipal Bond Fund | 25,849,462 | 527,478 | 62,586 | 464,892 | ||||||||
Ivy Science and Technology Fund | 421,252,180 | 129,969,868 | 25,945,828 | 104,024,040 | ||||||||
Ivy Small Cap Growth Fund | 464,396,129 | 128,176,094 | 26,598,528 | 101,577,566 |
For Federal income tax purposes, the Funds' distributed and undistributed earnings and profit for the fiscal year ended March 31, 2007 and the related net capital losses and post-October activity were as follows:
Ivy Asset Strategy Fund | Ivy Capital Appreciation Fund | Ivy Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 34,798,032 | $ | –– | $ | –– | ||||||
Distributed ordinary income | 7,899,868 | –– | –– | |||||||||
Undistributed ordinary income | 31,028,864 | –– | –– | |||||||||
Realized long-term capital gains | 31,700,032 | 472,981 | 34,352,215 | |||||||||
Distributed long-term capital gains | 10,641,807 | –– | 26,873,451 | |||||||||
Undistributed long-term capital gains | 26,238,182 | 472,981 | 15,885,350 | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | 467,682 | –– | 675 |
Ivy Energy Fund | Ivy High Income Fund | Ivy Large Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | –– | $ | 6,245,926 | $ | –– | ||||||
Distributed ordinary income | –– | 6,206,184 | –– | |||||||||
Undistributed ordinary income | –– | 114,122 | * | –– | ||||||||
Realized long-term capital gains | –– | –– | –– | |||||||||
Distributed long-term capital gains | –– | –– | –– | |||||||||
Undistributed long-term capital gains | –– | –– | –– | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | –– | –– | –– |
Ivy Limited- Term Bond Fund | Ivy Mid Cap Growth Fund | Ivy Money Market Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 1,641,448 | $ | –– | $ | 2,759,804 | ||||||
Distributed ordinary income | 1,638,795 | –– | 2,743,535 | |||||||||
Undistributed ordinary income | 32,035 | * | –– | 43,074 | ||||||||
Realized long-term capital gains | –– | –– | –– | |||||||||
Distributed long-term capital gains | –– | –– | –– | |||||||||
Undistributed long-term capital gains | –– | –– | –– | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | 140,298 | –– | –– | |||||||||
*This entire amount was distributed prior to September 30, 2007. |
Ivy Municipal Bond Fund | Ivy Science and Technology Fund | Ivy Small Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Net ordinary income | $ | 772,888 | $ | –– | $ | –– | ||||||
Distributed ordinary income | 772,878 | –– | –– | |||||||||
Undistributed ordinary income | 14,608 | * | –– | –– | ||||||||
Realized long-term capital gains | –– | 11,771,841 | 40,237,851 | |||||||||
Distributed long-term capital gains | –– | 807,866 | 75,772,222 | |||||||||
Undistributed long-term capital gains | –– | 11,771,058 | 13,682,023 | |||||||||
Net capital losses | –– | –– | –– | |||||||||
Post-October losses deferred | 17,109 | 1,571 | –– | |||||||||
*This entire amount was distributed prior to September 30, 2007. |
Internal Revenue Code regulations permit each Fund to defer into its next fiscal year net capital losses or net long-term capital losses and currency losses incurred between each November 1 and the end of its fiscal year (post-October losses).
Capital loss carryovers are available to offset future realized capital gain net income incurred in the 8 taxable years succeeding the loss year for Federal income tax purposes. The following shows the totals by year in which the capital loss carryovers will expire if not utilized.
Ivy Core Equity Fund | Ivy High Income Fund | Ivy Large Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2009 | $ | 1,310,041 | $ | –– | $ | 3,706,365 | ||||||
March 31, 2010 | 3,127,140 | 963,818 | 2,102,400 | |||||||||
March 31, 2011 | 1,479,061 | 1,182,962 | 2,676,587 | |||||||||
March 31, 2012 | –– | –– | 608,471 | |||||||||
March 31, 2014 | –– | 105,076 | –– | |||||||||
Total carryover | $ | 5,916,242 | $ | 2,251,856 | $ | 9,093,823 | ||||||
Ivy Limited- Term Bond Fund | Ivy Mid Cap Growth Fund | Ivy Municipal Bond Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
March 31, 2009 | $ | –– | $ | 10,147,740 | $ | 179,309 | ||||||
March 31, 2010 | –– | 17,363,901 | 230,753 | |||||||||
March 31, 2011 | 421,141 | 5,387,010 | 75,199 | |||||||||
March 31, 2012 | –– | 949,121 | –– | |||||||||
March 31, 2014 | 116,816 | –– | –– | |||||||||
Total carryover | $ | 537,957 | $ | 33,847,772 | $ | 485,261 | ||||||
Ivy Science and Technology Fund | Ivy Small Cap Growth Fund | |||||||
---|---|---|---|---|---|---|---|---|
March 31, 2008 | $ | –– | $ | 629,293 | ||||
March 31, 2009 | 827,519 | 3,509,352 | ||||||
March 31, 2010 | 413,760 | 2,069,323 | ||||||
March 31, 2011 | 413,760 | 564,364 | ||||||
Total carryover | $ | 1,655,039 | $ | 6,772,332 | ||||
Ivy US Blue Chip Fund was merged into Ivy Core Equity Fund as of June 16, 2003 and Advantus Index 500 Fund was merged into Ivy Core Equity Fund as of December 8, 2003. At the time of the mergers, Ivy US Blue Chip Fund and Advantus Index 500 Fund had capital loss carryovers available to offset future gains of the Ivy Core Equity Fund. Ivy US Blue Chip Fund's carryovers are limited to $1,479,061 for each period ending from March 31, 2008 through 2011 plus any unused limitations from prior years.
Advantus Horizon Fund was merged into Ivy Large Cap Growth Fund as of December 8, 2003. At the time of the merger, Advantus Horizon Fund had capital loss carryovers available to offset future gains of the Ivy Large Cap Growth Fund. These carryovers are limited to $1,383,732 for each period ending from March 31, 2008 through 2010 plus any unused limitations from prior years and the amount of certain built-in gains realized, if any.
Ivy US Emerging Growth Fund was merged into Ivy Mid Cap Growth Fund as of June 16, 2003. At the time of the merger, Ivy Mid Cap Growth Fund had capital loss carryovers available to offset future gains. These carryovers are limited to $5,665,965 for the period ending March 31, 2008 and $1,182,294 for each period ending from March 31, 2009 through 2011 and $197,085 for the period ending March 31, 2012 plus any unused limitations from prior years.
Ivy Global Science & Technology Fund was merged into Ivy Science and Technology Fund as of June 16, 2003. At the time of the merger, Ivy Global Science & Technology Fund had capital loss carryovers available to offset future gains of the Ivy Science and Technology Fund. These carryovers are limited to $413,760 for each period ending from March 31, 2008 through 2011 plus any unused limitations from prior years.
Advantus Enterprise Fund was merged into Ivy Small Cap Growth Fund as of December 8, 2003. At the time of the merger, Advantus Enterprise Fund had capital loss carryovers available to offset future gains of the Ivy Small Cap Growth Fund. These carryovers are limited to $2,069,323 for each period ending from March 31, 2008 through 2010 and $564,364 for the period ending March 31, 2011 plus any unused limitations from prior years.
NOTE 5 - Multiclass OperationsEach Fund within the Corporation currently offers five classes of shares, Class A, Class B, Class C, Class I and Class Y (other than Money Market Fund which offers Class A and Class E shares and Municipal Bond Fund which does not offer Class E and Class I shares), and all Funds except Ivy Energy Fund, Ivy Limited-Term Bond Fund and Ivy Municipal Bond Fund offer Class E shares. Each share class has equal rights as to assets and voting privileges. In addition, Large Cap Growth Fund, Mid Cap Growth Fund, Science and Technology Fund and Small Cap Growth Fund offer Class R shares, which also have equal rights as to assets and voting privileges. Ivy Money Market Fund Class B and Class C shares are no longer available for investment. A comprehensive discussion of the terms under which shares of each class are offered is contained in the Prospectus and the Statement of Additional Information for the Corporation.
Income, non-class specific expenses, and realized and unrealized gains and losses are allocated daily to each class of shares based on the value of their relative net assets as of the beginning of each day adjusted for the prior day's capital share activity.
Transactions in capital stock for the six-month period ended September 30, 2007 are summarized below. Amounts are in thousands.
Ivy Asset Strategy Fund | Ivy Capital Appreciation Fund | Ivy Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 36,288 | 24,000 | 1,335 | |||||||||
Class B | 2,140 | 602 | 76 | |||||||||
Class C | 37,730 | 4,752 | 325 | |||||||||
Class E | 128 | 47 | 42 | |||||||||
Class I | 192 | 1,004 | 27 | |||||||||
Class Y | 12,508 | 3,462 | 67 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 275 | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | –– | * | –– | –– | ||||||||
Class I | –– | * | –– | –– | ||||||||
Class Y | 23 | –– | –– | |||||||||
Shares redeemed: | ||||||||||||
Class A | (6,360 | ) | (2,169 | ) | (1,019 | ) | ||||||
Class B | (375 | ) | (84 | ) | (119 | ) | ||||||
Class C | (2,889 | ) | (228 | ) | (1,619 | ) | ||||||
Class E | (–– | )* | (–– | )* | (–– | )* | ||||||
Class I | (18 | )* | (12 | ) | (7 | ) | ||||||
Class Y | (1,116 | ) | (314 | ) | (162 | ) | ||||||
Increase (decrease) in outstanding capital shares | 78,526 | 31,060 | (1,054 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 825,305 | $ | 264,181 | $ | 14,320 | ||||||
Class B | 47,451 | 6,181 | 758 | |||||||||
Class C | 839,531 | 48,718 | 3,276 | |||||||||
Class E | 2,865 | 498 | 448 | |||||||||
Class I | 4,285 | 11,506 | 300 | |||||||||
Class Y | 289,626 | 37,976 | 753 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 6,037 | –– | –– | |||||||||
Class B | –– | –– | –– | |||||||||
Class C | –– | –– | –– | |||||||||
Class E | 6 | –– | –– | |||||||||
Class I | 12 | –– | –– | |||||||||
Class Y | 523 | –– | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (142,629 | ) | (23,466 | ) | (10,907 | ) | ||||||
Class B | (8,230 | ) | (861 | ) | (1,194 | ) | ||||||
Class C | (63,762 | ) | (2,347 | ) | (16,371 | ) | ||||||
Class E | (10 | ) | (1 | ) | (1 | ) | ||||||
Class I | (412 | ) | (129 | ) | (74 | ) | ||||||
Class Y | (24,814 | ) | (3,400 | ) | (1,741 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 1,775,784 | $ | 338,856 | $ | (10,433 | ) | |||||
Ivy Energy Fund | Ivy High Income Fund | Ivy Large Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 857 | 4,614 | 7,373 | |||||||||
Class B | 46 | 158 | 398 | |||||||||
Class C | 71 | 231 | 297 | |||||||||
Class E | 10 | 54 | 13 | |||||||||
Class I | 10 | 29 | 121 | |||||||||
Class R | NA | NA | –– | * | ||||||||
Class Y | 45 | 143 | 2,273 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 369 | –– | |||||||||
Class B | –– | 22 | –– | |||||||||
Class C | –– | 60 | –– | |||||||||
Class E | –– | 1 | –– | |||||||||
Class I | –– | 1 | –– | |||||||||
Class R | NA | NA | –– | |||||||||
Class Y | –– | 24 | –– | |||||||||
Shares redeemed: | ||||||||||||
Class A | (96 | ) | (1,946 | ) | (3,187 | ) | ||||||
Class B | (10 | ) | (98 | ) | (343 | ) | ||||||
Class C | (5 | ) | (270 | ) | (370 | ) | ||||||
Class E | (–– | ) | (–– | )* | (–– | )* | ||||||
Class I | (–– | ) | (4 | ) | (29 | ) | ||||||
Class R | NA | NA | (–– | )* | ||||||||
Class Y | (15 | ) | (776 | ) | (898 | ) | ||||||
Increase in outstanding capital shares | 913 | 2,612 | 5,648 | |||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 10,176 | $ | 40,640 | $ | 98,342 | ||||||
Class B | 549 | 1,392 | 4,708 | |||||||||
Class C | 840 | 2,033 | 3,627 | |||||||||
Class E | 100 | 477 | 152 | |||||||||
Class I | 100 | 259 | 1,475 | |||||||||
Class R | NA | NA | 1 | |||||||||
Class Y | 537 | 1,254 | 32,703 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 3,214 | –– | |||||||||
Class B | –– | 189 | –– | |||||||||
Class C | –– | 521 | –– | |||||||||
Class E | –– | 11 | –– | |||||||||
Class I | –– | 9 | –– | |||||||||
Class R | NA | NA | –– | |||||||||
Class Y | –– | 212 | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (1,145 | ) | (17,035 | ) | (40,682 | ) | ||||||
Class B | (114 | ) | (855 | ) | (4,019 | ) | ||||||
Class C | (61 | ) | (2,363 | ) | (4,482 | ) | ||||||
Class E | (–– | ) | (4 | ) | (7 | ) | ||||||
Class I | (–– | ) | (33 | ) | (374 | ) | ||||||
Class R | NA | NA | (–– | )* | ||||||||
Class Y | (176 | ) | (6,970 | ) | (11,246 | ) | ||||||
Increase in outstanding capital | $ | 10,806 | $ | 22,951 | $ | 80,198 | ||||||
*Not shown due to rounding. |
Ivy Limited- Term Bond Fund | Ivy Mid Cap Growth Fund | Ivy Money Market Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 1,955 | 1,354 | 73,446 | |||||||||
Class B | 103 | 51 | 2,750 | |||||||||
Class C | 203 | 55 | 9,368 | |||||||||
Class E | 10 | 21 | 449 | |||||||||
Class I | 16 | 48 | NA | |||||||||
Class R | NA | 1 | NA | |||||||||
Class Y | 33 | 235 | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 72 | –– | 1,379 | |||||||||
Class B | 6 | –– | 53 | |||||||||
Class C | 15 | –– | 123 | |||||||||
Class E | –– | * | –– | 6 | ||||||||
Class I | –– | * | –– | NA | ||||||||
Class R | NA | –– | NA | |||||||||
Class Y | 2 | –– | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (750 | ) | (854 | ) | (62,937 | ) | ||||||
Class B | (74 | ) | (93 | ) | (2,540 | ) | ||||||
Class C | (304 | ) | (116 | ) | (6,778 | ) | ||||||
Class E | (–– | ) | (–– | )* | (44 | ) | ||||||
Class I | (4 | ) | (9 | ) | NA | |||||||
Class R | NA | (–– | )* | NA | ||||||||
Class Y | (59 | ) | (143 | ) | NA | |||||||
Increase in outstanding capital shares | 1,224 | 550 | 15,275 | |||||||||
*Not shown due to rounding. | ||||||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 19,777 | $ | 18,820 | $ | 73,445 | ||||||
Class B | 1,038 | 662 | 2,750 | |||||||||
Class C | 2,058 | 733 | 9,368 | |||||||||
Class E | 100 | 288 | 449 | |||||||||
Class I | 165 | 651 | NA | |||||||||
Class R | NA | 14 | NA | |||||||||
Class Y | 333 | 3,327 | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 730 | –– | 1,379 | |||||||||
Class B | 62 | –– | 53 | |||||||||
Class C | 151 | –– | 123 | |||||||||
Class E | 2 | –– | 6 | |||||||||
Class I | 3 | –– | NA | |||||||||
Class R | NA | –– | NA | |||||||||
Class Y | 16 | –– | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (7,595 | ) | (11,858 | ) | (62,936 | ) | ||||||
Class B | (751 | ) | (1,202 | ) | (2,540 | ) | ||||||
Class C | (3,074 | ) | (1,545 | ) | (6,778 | ) | ||||||
Class E | (–– | ) | (5 | ) | (44 | ) | ||||||
Class I | (45 | ) | (135 | ) | NA | |||||||
Class R | NA | (6 | ) | NA | ||||||||
Class Y | (593 | ) | (1,972 | ) | NA | |||||||
Increase in outstanding capital | $ | 12,377 | $ | 7,772 | $ | 15,275 | ||||||
Ivy Municipal Bond Fund | Ivy Science and Technology Fund | Ivy Small Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 386 | 2,179 | 1,701 | |||||||||
Class B | 30 | 109 | 61 | |||||||||
Class C | 42 | 513 | 360 | |||||||||
Class E | NA | 20 | 20 | |||||||||
Class I | NA | 93 | 135 | |||||||||
Class R | NA | 8 | 4 | |||||||||
Class Y | –– | * | 1,593 | 790 | ||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 16 | –– | –– | |||||||||
Class B | 1 | –– | –– | |||||||||
Class C | 14 | –– | –– | |||||||||
Class E | NA | –– | –– | |||||||||
Class I | NA | –– | –– | |||||||||
Class R | NA | –– | –– | |||||||||
Class Y | –– | * | –– | –– | ||||||||
Shares redeemed: | ||||||||||||
Class A | (67 | ) | (1,151 | ) | (1,265 | ) | ||||||
Class B | (24 | ) | (63 | ) | (141 | ) | ||||||
Class C | (221 | ) | (396 | ) | (2,216 | ) | ||||||
Class E | NA | (–– | )* | (–– | )* | |||||||
Class I | NA | (12 | ) | (7 | ) | |||||||
Class R | NA | (–– | )* | (–– | )* | |||||||
Class Y | (–– | ) | (436 | ) | (1,247 | ) | ||||||
Increase (decrease) in outstanding capital shares | 177 | 2,457 | (1,805 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 4,248 | $ | 67,508 | $ | 23,276 | ||||||
Class B | 335 | 3,112 | 774 | |||||||||
Class C | 462 | 14,967 | 4,610 | |||||||||
Class E | NA | 625 | 265 | |||||||||
Class I | NA | 2,817 | 1,970 | |||||||||
Class R | NA | 258 | 60 | |||||||||
Class Y | –– | * | 50,549 | 11,966 | ||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 180 | –– | –– | |||||||||
Class B | 7 | –– | –– | |||||||||
Class C | 154 | –– | –– | |||||||||
Class E | NA | –– | –– | |||||||||
Class I | NA | –– | –– | |||||||||
Class R | NA | –– | –– | |||||||||
Class Y | –– | * | –– | –– | ||||||||
Value redeemed: | ||||||||||||
Class A | (742 | ) | (35,389 | ) | (17,339 | ) | ||||||
Class B | (266 | ) | (1,800 | ) | (1,774 | ) | ||||||
Class C | (2,431 | ) | (11,494 | ) | (28,490 | ) | ||||||
Class E | NA | (6 | ) | (4 | ) | |||||||
Class I | NA | (387 | ) | (114 | ) | |||||||
Class R | NA | (10 | ) | (1 | ) | |||||||
Class Y | (–– | ) | (13,654 | ) | (18,718 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 1,947 | $ | 77,096 | $ | (23,519 | ) | |||||
*Not shown due to rounding. |
Transactions in capital stock for the fiscal year ended March 31, 2007, are summarized below. Amounts are in thousands.
Ivy Asset Strategy Fund | Ivy Capital Appreciation Fund | Ivy Core Equity Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 53,408 | 3,702 | 2,099 | |||||||||
Class B | 4,392 | 238 | 157 | |||||||||
Class C | 46,972 | 613 | 1,230 | |||||||||
Class Y | 9,541 | 920 | 178 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 311 | –– | 745 | |||||||||
Class B | 31 | –– | 116 | |||||||||
Class C | 255 | –– | 1,825 | |||||||||
Class Y | 27 | –– | 13 | |||||||||
Shares redeemed: | ||||||||||||
Class A | (13,879 | ) | (1,786 | ) | (1,791 | ) | ||||||
Class B | (517 | ) | (101 | ) | (336 | ) | ||||||
Class C | (3,872 | ) | (242 | ) | (3,881 | ) | ||||||
Class Y | (1,291 | ) | (12 | ) | (66 | ) | ||||||
Increase in outstanding capital shares | 95,378 | 3,332 | 289 | |||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 1,046,947 | $ | 35,838 | $ | 21,689 | ||||||
Class B | 84,558 | 2,138 | 1,543 | |||||||||
Class C | 908,531 | 5,621 | 12,102 | |||||||||
Class Y | 190,626 | 9,302 | 1,904 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 6,150 | –– | 7,513 | |||||||||
Class B | 602 | –– | 1,090 | |||||||||
Class C | 4,980 | –– | 17,360 | |||||||||
Class Y | 525 | –– | 135 | |||||||||
Value redeemed: | ||||||||||||
Class A | (273,958 | ) | (17,219 | ) | (18,592 | ) | ||||||
Class B | (9,904 | ) | (895 | ) | (3,270 | ) | ||||||
Class C | (74,223 | ) | (2,122 | ) | (37,921 | ) | ||||||
Class Y | (25,233 | ) | (121 | ) | (709 | ) | ||||||
Increase in outstanding capital | $ | 1,859,601 | $ | 32,542 | $ | 2,844 | ||||||
Ivy Energy Fund | Ivy High Income Fund | Ivy Large Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 732 | 6,302 | 7,380 | |||||||||
Class B | 78 | 254 | 679 | |||||||||
Class C | 113 | 491 | 899 | |||||||||
Class R | NA | NA | 1 | |||||||||
Class Y | 53 | 121 | 2,166 | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 387 | –– | |||||||||
Class B | –– | 36 | –– | |||||||||
Class C | –– | 113 | –– | |||||||||
Class R | NA | NA | –– | |||||||||
Class Y | –– | 84 | –– | |||||||||
Shares redeemed: | ||||||||||||
Class A | (225 | ) | (2,470 | ) | (7,169 | ) | ||||||
Class B | (4 | ) | (191 | ) | (570 | ) | ||||||
Class C | (13 | ) | (621 | ) | (809 | ) | ||||||
Class R | NA | NA | (–– | )* | ||||||||
Class Y | (–– | )* | (104 | ) | (2,847 | ) | ||||||
Increase (decrease) in outstanding capital shares | 734 | 4,402 | (270 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 7,253 | $ | 54,790 | $ | 83,858 | ||||||
Class B | 783 | 2,214 | 7,172 | |||||||||
Class C | 1,135 | 4,267 | 9,729 | |||||||||
Class R | NA | NA | 13 | |||||||||
Class Y | 530 | 1,053 | 25,026 | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | –– | 3,369 | –– | |||||||||
Class B | –– | 310 | –– | |||||||||
Class C | –– | 982 | –– | |||||||||
Class R | NA | NA | –– | |||||||||
Class Y | –– | 733 | –– | |||||||||
Value redeemed: | ||||||||||||
Class A | (2,216 | ) | (21,611 | ) | (81,729 | ) | ||||||
Class B | (40 | ) | (1,661 | ) | (6,034 | ) | ||||||
Class C | (125 | ) | (5,379 | ) | (8,760 | ) | ||||||
Class R | NA | NA | (–– | )* | ||||||||
Class Y | (–– | )* | (903 | ) | (32,736 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 7,320 | $ | 38,164 | $ | (3,461 | ) | |||||
*Not shown due to rounding. |
Ivy Limited- Term Bond Fund | Ivy Mid Cap Growth Fund | Ivy Money Market Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 1,882 | 2,170 | 102,016 | |||||||||
Class B | 166 | 157 | 9,238 | |||||||||
Class C | 515 | 148 | 15,257 | |||||||||
Class R | NA | –– | * | NA | ||||||||
Class Y | 38 | 368 | NA | |||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 108 | –– | 2,277 | |||||||||
Class B | 11 | –– | 128 | |||||||||
Class C | 28 | –– | 221 | |||||||||
Class R | NA | –– | NA | |||||||||
Class Y | 5 | –– | NA | |||||||||
Shares redeemed: | ||||||||||||
Class A | (1,858 | ) | (2,515 | ) | (89,268 | ) | ||||||
Class B | (212 | ) | (266 | ) | (8,185 | ) | ||||||
Class C | (676 | ) | (322 | ) | (12,507 | ) | ||||||
Class R | NA | (–– | )* | NA | ||||||||
Class Y | (88 | ) | (327 | ) | NA | |||||||
Increase (decrease) in outstanding capital shares | (81 | ) | (587 | ) | 19,177 | |||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 18,871 | $ | 26,855 | $ | 102,016 | ||||||
Class B | 1,666 | 1,831 | 9,238 | |||||||||
Class C | 5,162 | 1,750 | 15,257 | |||||||||
Class R | NA | –– | * | NA | ||||||||
Class Y | 384 | 4,644 | NA | |||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 1,082 | –– | 2,277 | |||||||||
Class B | 106 | –– | 128 | |||||||||
Class C | 285 | –– | 221 | |||||||||
Class R | NA | –– | NA | |||||||||
Class Y | 53 | –– | NA | |||||||||
Value redeemed: | ||||||||||||
Class A | (18,672 | ) | (30,759 | ) | (89,268 | ) | ||||||
Class B | (2,127 | ) | (3,096 | ) | (8,185 | ) | ||||||
Class C | (6,786 | ) | (3,800 | ) | (12,507 | ) | ||||||
Class R | NA | (–– | )* | NA | ||||||||
Class Y | (891 | ) | (4,175 | ) | NA | |||||||
Increase (decrease) in outstanding capital | $ | (867 | ) | $ | (6,750 | ) | $ | 19,177 | ||||
*Not shown due to rounding. |
Ivy Municipal Bond Fund | Ivy Science and Technology Fund | Ivy Small Cap Growth Fund | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Shares issued from sale of shares: | ||||||||||||
Class A | 317 | 3,149 | 2,131 | |||||||||
Class B | 38 | 192 | 176 | |||||||||
Class C | 254 | 684 | 1,059 | |||||||||
Class R | NA | 11 | –– | * | ||||||||
Class Y | –– | * | 1,454 | 2,966 | ||||||||
Shares issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 23 | 12 | 1,179 | |||||||||
Class B | 2 | 2 | 197 | �� | ||||||||
Class C | 33 | 9 | 3,122 | |||||||||
Class R | NA | –– | * | –– | * | |||||||
Class Y | –– | * | 5 | 1,376 | ||||||||
Shares redeemed: | ||||||||||||
Class A | (125 | ) | (2,776 | ) | (4,385 | ) | ||||||
Class B | (53 | ) | (201 | ) | (438 | ) | ||||||
Class C | (326 | ) | (1,071 | ) | (6,082 | ) | ||||||
Class R | NA | (–– | )* | (–– | )* | |||||||
Class Y | (–– | )* | (869 | ) | (4,305 | ) | ||||||
Increase (decrease) in outstanding capital shares | 163 | 601 | (3,004 | ) | ||||||||
Value issued from sale of shares: | ||||||||||||
Class A | $ | 3,521 | $ | 85,294 | $ | 29,123 | ||||||
Class B | 421 | 4,854 | 2,233 | |||||||||
Class C | 2,813 | 17,647 | 13,539 | |||||||||
Class R | NA | 316 | 5 | |||||||||
Class Y | –– | * | 40,920 | 44,280 | ||||||||
Value issued from reinvestment of dividends and/or capital gains distribution: | ||||||||||||
Class A | 259 | 340 | 14,927 | |||||||||
Class B | 17 | 39 | 2,305 | |||||||||
Class C | 365 | 232 | 37,276 | |||||||||
Class R | NA | –– | * | 15 | ||||||||
Class Y | 2 | 139 | 19,192 | |||||||||
Value redeemed: | ||||||||||||
Class A | (1,385 | ) | (73,728 | ) | (58,235 | ) | ||||||
Class B | (585 | ) | (5,029 | ) | (5,462 | ) | ||||||
Class C | (3,609 | ) | (27,240 | ) | (77,631 | ) | ||||||
Class R | NA | (–– | )* | (3 | ) | |||||||
Class Y | (22 | ) | (24,032 | ) | (63,433 | ) | ||||||
Increase (decrease) in outstanding capital | $ | 1,797 | $ | 19,752 | $ | (41,869 | ) | |||||
*Not shown due to rounding. |
Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.
When a Fund writes (sells) an option, an amount equal to the premium received by a 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 securit ies purchased by a Fund is reduced by the amount of the premium received.
For Ivy Asset Strategy Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||
---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | 212 | $ | 158,470 | ||||
Options written | 2,319 | 362,177 | |||||
Options terminated in closing purchase transactions | (2,319 | ) | (362,177 | ) | |||
Options exercised | (212 | ) | (158,470 | ) | |||
Options expired | (–– | ) | (–– | ) | |||
Outstanding at September 30, 2007 | –– | $ | –– | ||||
For Ivy Mid Cap Growth Fund, transactions in written call options were as follows:
Number of Contracts | Premiums Received | ||||||
---|---|---|---|---|---|---|---|
Outstanding at March 31, 2007 | 8 | $ | 5,980 | ||||
Options written | 162,810 | 405,849 | |||||
Options terminated in closing purchase transactions | (81,035 | ) | (140,549 | ) | |||
Options exercised | (–– | ) | (–– | ) | |||
Options expired | (1,110 | ) | (76,858 | ) | |||
Outstanding at September 30, 2007 | 80,673 | $ | 194,422 | ||||
Each Fund may invest in swap agreements, which are agreements to exchange the return generated by one instrument for the return generated by another instrument. Each Fund may enter into credit default, total return, variance and other swap agreements to: 1) preserve a return or a spread on a particular investment or portion of its portfolio; 2) to protect against any increase in the price of securities the Fund anticipates purchasing at a later date; or 3) to attempt to enhance yield.
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. Each 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. Each 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.
Swaps are marked-to-market daily based on valuations provided by a pricing vendor of a broker-dealer. Changes in value are recorded as unrealized appreciation (depreciation) in the Statement of Operations. Collateral, in the form of cash or securities, may be required to be held in segregated accounts with the custodian or counterparty. Payments received or made at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities. These upfront payments, as well as any periodic payments, are recorded as realized gain or loss in the Statement of Operations. Gains or losses may be realized upon termination of the swap agreement.
Entering into swap agreements involves certain risks. Among these are possible failure of the counterparty to fulfill its obligations, possible lack of liquidity, and unfavorable changes in interest rates or underlying investments.
NOTE 8 - FuturesThe Corporation may engage in buying and selling futures contracts. Upon entering into a futures contract, the Corporation is required to deposit, in a segregated account, an amount of cash or United States Treasury Bills equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Corporation each day, dependent on the daily fluctuations in the value of the underlying debt security or index. These changes in the variation margins are recorded by the Corporation as unrealized gains or losses. Upon the closing of the contracts, the cumulative net change in the variation margin is recorded as realized gain or loss. The Corporation uses futures to attempt to reduce the overall risk of its investments.
Renewal of Investment Management Agreement
for Ivy Funds, Inc.
At a Meeting of the Board of Directors of the Ivy Funds, Inc. (the "Corporation") held on August 28 and 29, 2007, the Directors, including all of the Directors who are not "interested persons" as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the existing Investment Management Agreement between Ivy Investment Management Company ("IICO") and the Corporation (with respect to Ivy Asset Strategy Fund, Ivy Capital Appreciation Fund, Ivy Core Equity Fund, Ivy Energy Fund, Ivy High Income Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Mid Cap Growth Fund, Ivy Money Market Fund, Ivy Municipal Bond Fund, Ivy Science and Technology Fund and Ivy Small Cap Growth Fund).
The Board's Independent Directors were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO, profitability (including any fall-out benefits) from the relationships with the Funds, economies of scale, the role played by the Independent Directors, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO in response to a 15(c) due diligence request list submitted by the Independent Directors' counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO. The Board also received exte nsive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Directors received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Directors discussed this material extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members, after which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board's determination to approve the agreements are discussed separately below.
Nature, Extent and Quality of ServicesThe Board considered the fact that they were provided with performance and expense information for each of the Funds during the year in regularly scheduled Board meetings, during which they met with the Funds' portfolio managers and other investment personnel. In that regard, they discussed the nature, extent and quality of services provided to each Fund by IICO, taking into account the investment objective and strategy of the Fund and the knowledge the Board gained from those regular meetings, including from the materials provided in connection with those meetings. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services provided to the Funds by IICO, such as managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to the Funds' investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services provided by IICO were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.
Benefits from the Relationship with the FundsThe Board next discussed whether IICO derives any other direct or indirect benefit from serving the Funds. The Board considered benefits that accrue to IICO 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 IICO, nor any of its affiliates, receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of the investment advisory contract with IICO.
Economies of ScaleThe Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds' shareholders. In that context, the Board discussed the current level of the Funds' advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. With respect to the Asset Strategy Fund, the Board requested that management examine the continuing appropriateness of that Fund's breakpoint schedule. The Board also noted that as the assets of the Funds continue to increase, the Funds' expense ratios generally continue to fall. The Board concluded that the current asset size of the Funds and other relevant factors did not warrant further reevaluation or restructuring of the fee breakpoints for the Funds at this time.
Performance of the Funds and Costs of Services ProvidedThe Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided. The Board focused particularly on the Ivy High Income Fund, Ivy Municipal Bond Fund and Ivy Limited Term Bond Fund.
Specifically, the Board examined the investment performance of each Fund, including quintile ranking for short- and long-term time periods and each Fund's performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds' performance in each asset class was acceptable. Although the performance of some of the focus Funds lagged that of their peers or respective Lipper index, the Board recognized that IICO had taken, or was taking, the steps to address that underperformance, including changes in portfolio managers, and determined to continue to monitor closely the performance of those Funds.
The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into (and with respect to the Ivy Limited Term Bond Fund, the expense limitation agreement proposed to be entered into) by IICO in light of the services provided by IICO. The Board also compared each Fund's expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to separately managed accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for those Funds. The Board also took into account the information on IICO's profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund's averag e account size and how those factors affect the Funds' expense ratios. After completing this examination, the Independent Directors concluded that the Fund's expenses are appropriate at the current time.
The Board of Directors/Trustees for each of the mutual funds has appointed an independent fee consultant. Posted below is a summary of the written fee evaluation of such consultant for the most recent year.
During August of 2007, and as part of their regularly scheduled meetings, the Boards of Trustees of Ivy Funds and the Board of Directors of Ivy Funds, Inc. (collectively, the "Ivy Funds" and any separate series thereof an "Ivy Fund") reviewed significant information in connection with considering the continuation of existing investment management agreements currently in effect between Ivy Investment Management Company ("IICO") and the Ivy Funds. Pursuant to the Assurance of Discontinuance between Waddell & Reed, Inc., Waddell & Reed Services Company ("WRSCO"), and Waddell & Reed Investment Management Company (collectively, "Waddell") and the Office of the New York Attorney General dated July 10, 2006 ("Assurance of Discontinuance"), the Trustees/Directors of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO, an affiliate of Waddell, to the Ivy Funds. The independent fee consultant's review addressed the following fee-related factors:
1. The nature and quality of IICO's services to the Ivy Funds, including performance
2. Management fees (including any components thereof) charged by other mutual fund companies for like services
3. Management fees (including any components thereof) charged to institutional and other clients of IICO for like services
4. Costs to IICO and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit
5. Profit margins of IICO and its affiliates from supplying such services
6. Possible economies of scale as a fund grows larger
The following summarizes the findings of the independent fee consultant retained by the Trustees/Directors. 1
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 on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending February 28, 2007. In other areas, data is from various periods ending between December 31, 2006 and July 31, 2007.Summary Findings
The independent fee consultant believes that IICO delivers strong levels of performance and service to the Ivy Funds in relation to IICO management fees and relative to investment advisers of comparable mutual funds. For the 36 months ended April 30, 2007, when compared to their respective peer groups established by Lipper, Inc. ("Lipper") approximately: (a) 21% of the Ivy Funds were in the top 10 percentiles; (b) 33% of the Ivy Funds were in the top quartile of performance; and (c) 62% of the Ivy Funds were in the top two quartiles. The independent fee consultant noted that the Ivy Funds' performance appears to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, ability to manage smaller AUM funds, ability to serve small account sizes and an effective trading infrastructure.
For the 12 months ended March 31, 2007, the total expenses of the Ivy Funds on average were 7% above the mean total expenses of their respective Lipper Expense Group peers and 1% below the mean total expenses for their Lipper Expense Universes. The management fees for the Ivy Funds on average were 9% above the mean management fees for their Lipper Expense Groups and 10% above the means for their Lipper Expense Universes. Ivy Funds' small average account size and small fund AUM introduces certain biases in the Lipper analyses that can work against Ivy Funds in Lipper expense comparisons. As a result, the Lipper findings can be considered conservative. Within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.
The independent fee consultant believes that the management fees IICO charges to the Ivy Funds also are reasonable in relation to the management fees it charges to its other institutional accounts. These institutional accounts have different service and infrastructure needs. Moreover, based on industry data, the average spread between management fees charged to the Ivy Funds and those charged to institutional accounts is below the average fee spreads observed at other investment advisers.
The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds does not appear to be unreasonable. Waddell's overall profitability from managing the Ivy Funds and its other operations is below the mean profitability of other publicly traded peers, but appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.
Analyses was undertaken by the independent fee consultant to measure economies of scale in the industry in a manner that would give an overall "net" view of any economies or diseconomies of scale across all cost elements. This analysis, however, was unable to quantitatively assess or confirm overall economies of scale in the IICO complex. A separate economy of pricing analysis, also undertaken by the independent fee consultant, did show that Ivy Funds incur lower fees and expenses with increasing fund AUM and with increasing average account size which the independent fee consultant believes should benefit Ivy Fund investors as the Ivy Funds mature.
ConclusionsThe independent fee consultant concluded that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds over the year ending August 31, 2007 are reasonable and provide adequate justification for renewal of the Ivy Funds' existing advisory agreements.
Proxy Voting Information
Proxy Voting Guidelines
A description of the policies and procedures Ivy Funds, Inc. uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission's (SEC) website at www.sec.gov.
Proxy Voting RecordsInformation regarding how the Corporation voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on Form N-PX through the Ivy Funds' website at www.ivyfunds.com and on the SEC's website at www.sec.gov.
Quarterly Portfolio Schedule Information
A complete schedule of portfolio holdings for the first and third quarters of each fiscal year is filed with the Securities and Exchange Commission (SEC) on the Corporation's Form N-Q, 60 days after the end of the quarter. This form may be obtained in the following ways:
- On the SEC's website at www.sec.gov.
- For review and copy at the SEC's Public Reference Room in Washington, DC. Information on the operations of the Public Reference Room may be obtained by calling 1.800.SEC.0330.
- On the Ivy Funds' website at www.ivyfunds.com.
To All Traditional IRA Planholders:
As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed financial advisor or by submitting Internal Revenue Service Form W-4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.
THE IVY FUNDS FAMILY
Global/International Funds
Cundill Global Value Fund
European Opportunities Fund
International Balanced Fund
International Core Equity Fund
International Growth Fund
Managed European/Pacific Fund
Managed International Opportunities Fund
Pacific Opportunities Fund
Domestic Equity Funds
Capital Appreciation Fund
Core Equity Fund
Dividend Income Fund
Large Cap Growth Fund
Mid Cap Growth Fund
Small Cap Growth Fund
Small Cap Value Fund
Value Fund
Fixed Income Funds
Bond Fund
High Income Fund
Limited-Term Bond Fund
Mortgage Securities Fund
Municipal Bond Fund
Money Market Fund
Money Market Fund
Specialty Funds
Asset Strategy Fund
Balanced Fund
Energy Fund
Global Natural Resources Fund
Real Estate Securities Fund
Science and Technology Fund
1.800.777.6472
Visit us online at www.ivyfunds.com
The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.
Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus carefully before investing.
WRR3000SA (9-07)
ITEM 2. CODE OF ETHICS
Required in annual report only.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Required in annual report only.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Required in annual report only.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Item 1 Shareholder Report.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant's board of directors.
ITEM 11. CONTROLS AND PROCEDURES.
(a) | The Registrant's Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant's management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. |
(b) | There were no significant changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant's second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. |
ITEM 12. EXHIBITS.
(a)(1) Required in annual report only.
(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)).
Attached hereto as Exhibit 99.CERT.
(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)).
Attached hereto as Exhibit 99.906CERT.
SIGNATURES |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Ivy Funds, Inc. |
(Registrant) |
By /s/Kristen A. Richards |
Kristen A. Richards, Vice President and Assistant Secretary |
Date: December 7, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
By /s/Henry J. Herrmann |
Henry J. Herrmann, President and Principal Executive Officer |
Date: December 7, 2007 |
By /s/Joseph W. Kauten |
Joseph W. Kauten, Vice President and Principal Financial Officer |
Date: December 7, 2007 |