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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-6569

IVY FUNDS

(Exact name of registrant as specified in charter)

6300 Lamar Avenue, Overland Park, Kansas 66202

(Address of principal executive offices) (Zip code)

Mara D. Herrington

6300 Lamar Avenue

Overland Park, Kansas 66202

(Name and address of agent for service)

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

Date of fiscal year end: March 31

Date of reporting period: September 30, 2013

ITEM 1.    REPORTS TO STOCKHOLDERS.

Semiannual Report

September 30, 2013

Ivy Funds

Ivy Asset Strategy Fund

Ivy Asset Strategy New Opportunities Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Global Real Estate Fund

Ivy Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

 

CONTENTS

Ivy Funds

President’s Letter	3
Illustration of Fund Expenses	4
Portfolio Highlights and Schedule of Investments:
Ivy Asset Strategy Fund	7
Ivy Asset Strategy New Opportunities Fund	17
Ivy Balanced Fund	21
Ivy Energy Fund	28
Ivy Global Natural Resources Fund	31
Ivy Global Real Estate Fund	34
Ivy Global Risk-Managed Real Estate Fund	37
Ivy Real Estate Securities Fund	40
Ivy Science and Technology Fund	43
Statements of Assets and Liabilities	47
Statements of Operations	49
Statements of Changes in Net Assets	51
Financial Highlights	54
Notes to Financial Statements	72
Renewal of Investment Management Agreement	88
Proxy Voting Information	91
Quarterly Portfolio Schedule Information	91
IRA Disclosure	91

This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus, or summary prospectus, and current performance information, including current Lipper ranking information.

2 SEMIANNUAL REPORT 2013

PRESIDENT’S LETTER

Ivy Funds SEPTEMBER 30, 2013 (UNAUDITED)

Henry J. Herrmann, CFA

Dear Shareholder,

The year since our last report to you continued the volatility trend that seems to have become the norm. Again this year, the key culprits were politics, geopolitical concerns and confusing policy communication by central bankers.

Markets became increasingly volatile over the summer as bond yields rose and stocks fell amid speculation that the Federal Reserve (Fed) was preparing to taper its quantitative easing program. Yields reversed course and stocks moved higher when the Fed did nothing in September. The Fed’s decision provided only a brief respite before concerns began to swell around Congress’ failure to reach a budget agreement. Lack of a budget prompted fears that there would be a similar impasse on the October debate about increasing the debt ceiling, which could lead to a downgrade of U.S. debt or even default.

At the end of September, the benchmark 10-year Treasury was yielding 2.64%, compared with 1.65% a year earlier and 1.78% at the start of the calendar year. Amid the turmoil, the S&P 500 Index reached a new record high in late September of 1,725.52 before moving slightly lower by the end of the fiscal year.

Despite these issues, and the occasional market swings they can cause, the U.S. economy continued its steady growth, although at a slow pace. We’ve seen improvement in several key indicators, including gross domestic product, jobs growth, retail sales and the housing market. Internationally, a spike in China’s overnight interbank lending rates and violent unrest in Syria, Turkey, Brazil and Egypt unsettled investors during the year and hurt currencies, fixed-income and equity markets in developing countries broadly.

Economic Snapshot

	9/30/13		3/31/13
S&P 500 Index		1,681.55		1,569.19
MSCI EAFE Index		1,818.23		1,674.30
10-Year Treasury Yield		2.64%		1.87%
U.S. unemployment rate		7.3%		7.6%
30-year fixed mortgage rate		4.28%		3.68%
Oil price per barrel	$	102.33	$	97.23

Sources: Bloomberg, U.S. Department of Labor, BankRate, CME

All government statistics shown are subject to periodic revision. The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. Mortgage rates are from BankRate and reflect the overnight national average rate on a conventional 30-year fixed loan. Oil prices reflect the market price of West Texas intermediate grade crude.

As always, we thank you for your continued trust and partnership.

Respectfully,

Henry J. Herrmann, CFA

President

The opinions expressed in this letter are those of the President of the Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.

2013 SEMIANNUAL REPORT 3

ILLUSTRATION OF FUND EXPENSES

Ivy Funds (UNAUDITED)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following table is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2013.

Actual Expenses

The first section in the following table provides information about actual account values and actual expenses for each share class. You may use the information in this section, 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 section 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 table. 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 table, a customer is charged an annual fee of $18 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 following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second section in the following table provides information about hypothetical account values and hypothetical expenses for each share class based on the Fund’s actual expense ratio and an assumed rate of return of five percent per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this five percent hypothetical example with the five percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table 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 section in the table 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.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 6 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Asset Strategy Fund
Class A	$	1,000	$	1,085.80	$	5.01	$	1,000	$	1,020.29	$	4.85		0.95%
Class B	$	1,000	$	1,081.70	$	8.95	$	1,000	$	1,016.43	$	8.67		1.72%
Class C	$	1,000	$	1,081.60	$	8.85	$	1,000	$	1,016.58	$	8.57		1.69%
Class E	$	1,000	$	1,085.60	$	5.21	$	1,000	$	1,020.06	$	5.05		1.00%
Class I	$	1,000	$	1,087.00	$	3.86	$	1,000	$	1,021.37	$	3.74		0.74%
Class R	$	1,000	$	1,083.50	$	6.98	$	1,000	$	1,018.37	$	6.76		1.34%
Class Y	$	1,000	$	1,085.60	$	5.01	$	1,000	$	1,020.29	$	4.85		0.95%
Ivy Asset Strategy New Opportunities Fund
Class A	$	1,000	$	967.30	$	7.38	$	1,000	$	1,017.55	$	7.57		1.50%
Class B	$	1,000	$	961.90	$	12.46	$	1,000	$	1,012.38	$	12.78		2.53%
Class C	$	1,000	$	962.00	$	11.87	$	1,000	$	1,013.01	$	12.18		2.41%
Class E**	$	1,000	$	966.40	$	7.37	$	1,000	$	1,017.55	$	7.57		1.50%
Class I	$	1,000	$	968.30	$	6.20	$	1,000	$	1,018.79	$	6.36		1.25%
Class R	$	1,000	$	965.20	$	9.53	$	1,000	$	1,015.37	$	9.77		1.93%
Class Y	$	1,000	$	966.40	$	7.37	$	1,000	$	1,017.55	$	7.57		1.50%

See footnotes on page 6.

4 SEMIANNUAL REPORT 2013

ILLUSTRATION OF FUND EXPENSES

Ivy Funds (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Balanced Fund
Class A	$	1,000	$	1,076.40	$	6.02	$	1,000	$	1,019.25	$	5.86		1.16%
Class B	$	1,000	$	1,072.30	$	9.95	$	1,000	$	1,015.48	$	9.67		1.91%
Class C	$	1,000	$	1,073.00	$	9.64	$	1,000	$	1,015.76	$	9.37		1.86%
Class E**	$	1,000	$	1,077.30	$	5.30	$	1,000	$	1,019.98	$	5.15		1.02%
Class I	$	1,000	$	1,077.80	$	4.68	$	1,000	$	1,020.55	$	4.55		0.90%
Class R	$	1,000	$	1,074.60	$	7.78	$	1,000	$	1,017.53	$	7.57		1.50%
Class Y	$	1,000	$	1,076.40	$	6.02	$	1,000	$	1,019.30	$	5.86		1.15%
Ivy Energy Fund
Class A	$	1,000	$	1,097.50	$	8.39	$	1,000	$	1,017.05	$	8.07		1.60%
Class B	$	1,000	$	1,093.20	$	12.77	$	1,000	$	1,012.91	$	12.28		2.42%
Class C	$	1,000	$	1,093.70	$	11.52	$	1,000	$	1,014.10	$	11.08		2.19%
Class E**	$	1,000	$	1,099.11	$	6.72	$	1,000	$	1,018.66	$	6.46		1.28%
Class I	$	1,000	$	1,100.50	$	6.20	$	1,000	$	1,019.17	$	5.96		1.18%
Class R	$	1,000	$	1,096.80	$	9.23	$	1,000	$	1,016.22	$	8.87		1.76%
Class Y	$	1,000	$	1,098.80	$	7.45	$	1,000	$	1,017.94	$	7.16		1.42%
Ivy Global Natural Resources Fund
Class A	$	1,000	$	997.80	$	7.79	$	1,000	$	1,017.28	$	7.87		1.55%
Class B	$	1,000	$	993.60	$	12.06	$	1,000	$	1,012.92	$	12.18		2.42%
Class C	$	1,000	$	994.80	$	10.97	$	1,000	$	1,014.06	$	11.08		2.20%
Class E	$	1,000	$	999.40	$	6.40	$	1,000	$	1,018.69	$	6.46		1.27%
Class I	$	1,000	$	1,000.00	$	5.40	$	1,000	$	1,019.68	$	5.45		1.07%
Class R	$	1,000	$	997.20	$	8.29	$	1,000	$	1,016.73	$	8.37		1.66%
Class Y	$	1,000	$	998.30	$	6.59	$	1,000	$	1,018.44	$	6.66		1.32%
Ivy Global Real Estate Fund ***
Class A	$	1,000	$	974.00	$	7.40	$	1,000	$	1,017.54	$	7.57		1.50%
Class B	$	1,000	$	969.00	$	13.00	$	1,000	$	1,011.85	$	13.28		2.64%
Class C	$	1,000	$	969.00	$	13.00	$	1,000	$	1,011.90	$	13.28		2.63%
Class I	$	1,000	$	973.00	$	8.19	$	1,000	$	1,016.78	$	8.37		1.66%
Class R	$	1,000	$	970.00	$	11.13	$	1,000	$	1,013.77	$	11.38		2.26%
Class Y	$	1,000	$	980.00	$	7.43	$	1,000	$	1,017.54	$	7.57		1.51%
Ivy Global Risk-Managed Real Estate Fund***
Class A	$	1,000	$	953.00	$	7.32	$	1,000	$	1,017.54	$	7.57		1.51%
Class B	$	1,000	$	949.00	$	12.38	$	1,000	$	1,012.40	$	12.78		2.51%
Class C	$	1,000	$	949.00	$	12.28	$	1,000	$	1,012.49	$	12.68		2.50%
Class I	$	1,000	$	953.00	$	8.10	$	1,000	$	1,016.79	$	8.37		1.64%
Class R	$	1,000	$	950.00	$	11.02	$	1,000	$	1,013.79	$	11.38		2.24%
Class Y	$	1,000	$	954.00	$	7.43	$	1,000	$	1,017.52	$	7.67		1.50%

See footnotes on page 6.

2013 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES

Ivy Funds (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Real Estate Securities Fund
Class A	$	1,000	$	953.20	$	7.62	$	1,000	$	1,017.26	$	7.87		1.56%
Class B	$	1,000	$	947.80	$	12.86	$	1,000	$	1,011.91	$	13.28		2.63%
Class C	$	1,000	$	949.70	$	11.11	$	1,000	$	1,013.72	$	11.48		2.26%
Class E	$	1,000	$	952.40	$	8.20	$	1,000	$	1,016.68	$	8.47		1.67%
Class I	$	1,000	$	955.70	$	4.99	$	1,000	$	1,019.92	$	5.15		1.02%
Class R	$	1,000	$	952.40	$	8.10	$	1,000	$	1,016.79	$	8.37		1.66%
Class Y	$	1,000	$	954.30	$	6.25	$	1,000	$	1,018.71	$	6.46		1.27%
Ivy Science and Technology Fund
Class A	$	1,000	$	1,195.30	$	7.13	$	1,000	$	1,018.61	$	6.56		1.29%
Class B	$	1,000	$	1,190.40	$	11.39	$	1,000	$	1,014.63	$	10.48		2.08%
Class C	$	1,000	$	1,190.80	$	11.06	$	1,000	$	1,015.01	$	10.18		2.01%
Class E	$	1,000	$	1,194.80	$	7.90	$	1,000	$	1,017.92	$	7.26		1.43%
Class I	$	1,000	$	1,197.10	$	5.49	$	1,000	$	1,020.02	$	5.05		1.01%
Class R	$	1,000	$	1,193.60	$	8.88	$	1,000	$	1,017.00	$	8.17		1.61%
Class Y	$	1,000	$	1,195.60	$	6.92	$	1,000	$	1,018.77	$	6.36		1.26%

* 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, 2013, and divided by 365.

** Class closed to investment.

*** Period from April 1, 2013 (commencement of operations) to September 30, 2013.

(1) This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column of this section.

(2) This section uses a hypothetical five percent annual return and actual Fund expenses. It helps to compare the Fund’s ongoing costs with other mutual funds. A shareholder can compare the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, or exchange fees.

6 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Asset Strategy Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	67.3%
Consumer Discretionary	30.7%
Financials	15.7%
Information Technology	11.0%
Energy	3.2%
Industrials	2.3%
Health Care	1.9%
Consumer Staples	1.6%
Materials	0.5%
Telecommunication Services	0.4%
Bullion (Gold)	8.0%
Purchased Options	0.1%
Bonds	4.1%
Corporate Debt Securities	3.5%
Loans	0.6%
United States Government and Government Agency Obligations	0.0%
Cash and Cash Equivalents	20.5%

Lipper Rankings

Category: Lipper Global Flexible Portfolio Funds	Rank	Percentile
1 Year	23/422	6
3 Year	25/260	10
5 Year	30/162	19
10 Year	4/68	6

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

Country Weightings

North America	30.4%
United States	29.9%
Other North America	0.5%
Pacific Basin	28.0%
Japan	9.8%
Hong Kong	8.6%
China	6.0%
Other Pacific Basin	3.6%
Europe	12.9%
United Kingdom	5.5%
Other Europe	7.4%
Bullion (Gold)	8.0%
Other	0.1%
South America	0.0%
Cash and Cash Equivalents and Options	20.6%

Top 10 Equity Holdings

Company	Country	Sector
Galaxy Entertainment Group Limited, ADR	Hong Kong	Consumer Discretionary
Sands China Ltd.	China	Consumer Discretionary
AIA Group Limited	Hong Kong	Financials
Wynn Resorts, Limited	United States	Consumer Discretionary
Delta Topco Limited	United Kingdom	Consumer Discretionary
Hyundai Motor Company	South Korea	Consumer Discretionary
CBS Corporation, Class B	United States	Consumer Discretionary
Cisco Systems, Inc.	United States	Information Technology
Philip Morris International Inc.	United States	Consumer Staples
Phillips 66	United States	Energy

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

2013 SEMIANNUAL REPORT 7

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 0.9%
BAE Systems plc (A)		8,622	$	63,428
Boeing Company (The) (B)		604		70,958
European Aeronautic Defence and Space Company (A)		2,529		161,156
				295,542
Airlines – 0.2%
Japan Airlines Corporation (A)		808		48,822
Apparel, Accessories & Luxury Goods – 0.7%
Prada S.p.A. (A)		21,786		211,095
Application Software – 1.0%
Intuit Inc.		4,436		294,158
Asset Management & Custody Banks – 2.3%
Apollo Global Management, LLC		6,204		175,312
Blackstone Group L.P. (The)		12,253		304,980
Carlyle Group L.P. (The) (C)		—		—
KKR & Co. L.P.		11,318		232,929
				713,221
Auto Parts & Equipment – 0.5%
Continental AG (A)		950		161,037
Automobile Manufacturers – 5.2%
Bayerische Motoren Werke AG (A)		3,070		330,005
DaimlerChrysler AG, Registered Shares (A)		792		61,698
Fuji Heavy Industries Ltd. (A)		3,531		97,350
Hyundai Motor Company (A)		3,514		820,820
Renault S.A. (A)		1,128		89,944
Toyota Motor Corporation (A)		2,899		184,895
				1,584,712
Biotechnology – 0.2%
Amgen Inc.		660		73,836
Brewers – 0.2%
Anheuser-Busch InBev S.A., ADR		465		46,138
Broadcasting – 2.3%
CBS Corporation, Class B (B)		13,039		719,204
Cable & Satellite – 0.7%
British Sky Broadcasting Group plc (A)		4,540		63,938
Comcast Corporation, Class A (B)		2,071		93,515
Time Warner Cable Inc. (D)		496		55,331
				212,784

COMMON STOCKS (Continued)	Shares		Value
Casinos & Gaming – 12.9%
Galaxy Entertainment Group Limited, ADR (A)(E)		228,611	$	1,603,481
Sands China Ltd. (A)		234,433		1,449,358
Wynn Resorts, Limited (E)		5,551		877,104
				3,929,943
Communications Equipment – 1.5%
Cisco Systems, Inc.		19,532		457,439
Computer Hardware – 0.9%
Apple Inc. (D)		584		278,470
Construction & Farm Machinery & Heavy Trucks – 0.1%
KION Holding 1 GmbH (A)(C)		596		21,856
Consumer Electronics – 1.6%
Panasonic Corporation (A)		23,087		222,664
Sony Corporation (A)		12,218		260,780
				483,444
Data Processing & Outsourced Services – 0.2%
Visa Inc., Class A		370		70,650
Diversified Banks – 5.3%
Agricultural Bank of China Limited, H Shares (A)		36,710		16,897
BNP Paribas (A)		451		30,480
China Construction Bank Corporation (A)		20,904		16,091
DBS Group Holdings Ltd (A)		7,725		101,114
Kabushiki Kaisha Mitsubishi Tokyo Financial Group (A)		45,671		291,324
Mizuho Financial Group, Inc. (A)		141,090		305,733
Royal Bank of Canada (A)		952		60,996
Sumitomo Mitsui Financial Group, Inc. (A)		6,061		292,593
Sumitomo Mitsui Trust Holdings, Inc. (A)		53,724		265,081
Toronto-Dominion Bank (A)		896		80,635
Wells Fargo & Company (D)		3,448		142,480
				1,603,424
Diversified Capital Markets – 0.1%
Credit Suisse Group AG, Registered Shares (A)		990		30,221

COMMON STOCKS (Continued)	Shares		Value
Diversified Chemicals – 0.2%
Dow Chemical Company (The)		1,523	$	58,479
Electronic Equipment & Instruments – 0.8%
FUJIFILM Holdings Corporation (A)		1,318		31,557
Hitachi, Ltd. (A)		34,746		228,706
				260,263
Electronic Manufacturing Services – 0.2%
Hon Hai Precision Ind. Co., Ltd. (A)		23,935		61,442
Health Care Supply – 0.1%
Abbott Laboratories		1,221		40,508
Home Entertainment Software – 0.2%
Activision Blizzard, Inc.		3,632		60,552
Hotels, Resorts & Cruise Lines – 1.0%
Starwood Hotels & Resorts Worldwide, Inc.		4,774		317,232
Industrial Conglomerates – 0.2%
Hutchison Whampoa Limited, Ordinary Shares (A)		5,272		63,148
Integrated Oil & Gas – 0.8%
Eni S.p.A. (A)		2,089		47,907
Occidental Petroleum Corporation (D)		2,223		207,921
				255,828
Internet Retail – 0.2%
Amazon.com, Inc. (C)		238		74,346
Internet Software & Services – 1.2%
Google Inc., Class A (C)		35		31,007
Tencent Holdings Limited (A)		6,454		338,505
				369,512
Investment Banking & Brokerage – 0.9%
Goldman Sachs Group, Inc. (The)		762		120,572
Nomura Holdings, Inc. (A)		19,745		153,665
				274,237
IT Consulting & Other Services – 1.6%
Accenture plc, Class A		1,019		75,039
Cognizant Technology Solutions Corporation, Class A (C)		4,045		332,153
International Business Machines Corporation (D)		487		90,090
				497,282
Life & Health Insurance – 3.9%
AIA Group Limited (A)		189,899		892,457

8 SEMIANNUAL REPORT 2013

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Life & Health Insurance (Continued)
MetLife, Inc.		2,630	$	123,483
Ping An Insurance (Group) Company of China, Ltd., A Shares (A)		6,887		40,161
Prudential Financial, Inc.		1,707		133,112
				1,189,213
Managed Health Care – 0.1%
UnitedHealth Group Incorporated		407		29,131
Movies & Entertainment – 5.6%
Delta Topco Limited (C)(F)		718,555		859,949
Legend Pictures LLC, Ltd. (C)(F)		190		295,823
Media Group Holdings, LLC (C)(F)		381		258,795
News Corporation Limited, Class A		8,395		281,246
				1,695,813
Multi-Line Insurance – 2.1%
Allianz AG, Registered Shares (A)		735		115,559
American International Group, Inc.		5,641		274,317
Axa S.A. (A)		5,273		122,160
Zurich Financial Services, Registered Shares (A)		506		130,183
				642,219
Office Electronics – 0.9%
Canon Inc. (A)		8,013		255,151
Ricoh Company, Ltd. (A)		2,626		30,215
				285,366
Oil & Gas Equipment & Services – 0.1%
Halliburton Company		625		30,089
Oil & Gas Exploration & Production – 1.1%
ConocoPhillips (D)		4,930		342,698
Oil & Gas Refining & Marketing – 1.2%
Phillips 66 (D)		5,998		346,815
Other Diversified Financial Services – 0.7%
Citigroup Inc.		1,213		58,852
ING Groep N.V., Certicaaten Van Aandelen (A)(C)		8,166		92,258
JPMorgan Chase & Co.		1,166		60,265
				211,375
Pharmaceuticals – 1.5%
AstraZeneca plc (A)		1,205		62,717
Pfizer Inc. (B)		9,893		284,026

COMMON STOCKS (Continued)	Shares		Value
Pharmaceuticals (Continued)
Roche Holdings AG, Genusscheine (A)		223	$	60,142
Teva Pharmaceutical Industries Limited, ADR		1,091		41,229
				448,114
Property & Casualty Insurance – 0.1%
ACE Limited		308		28,826
Allstate Corporation (The)		282		14,275
				43,101
Railroads – 0.5%
Central Japan Railway Company (A)		748		95,782
Union Pacific Corporation (D)		277		43,029
				138,811
Reinsurance – 0.3%
Swiss Re Ltd (A)		1,224		101,206
Semiconductor Equipment – 1.1%
Applied Materials, Inc. (D)		2,931		51,411
ASML Holding N.V., Ordinary Shares (A)		2,920		288,398
				339,809
Semiconductors – 0.7%
Samsung Electronics Co., Ltd. (A)		64		80,900
Texas Instruments Incorporated (D)		3,003		120,927
				201,827
Specialty Chemicals – 0.2%
LyondellBasell Industries N.V., Class A		858		62,817
Steel – 0.1%
Posco (A)		101		30,116
Systems Software – 0.7%
Microsoft Corporation		4,196		139,752
Oracle Corporation		1,840		61,046
				200,798
Tobacco – 1.4%
Philip Morris International Inc. (B)		4,976		430,906
Trading Companies & Distributors – 0.4%
Mitsui & Co., Ltd. (A)		10,491		152,200
Wireless Telecommunication Service – 0.4%
NTT DoCoMo, Inc. (A)		8,510		137,829
TOTAL COMMON STOCKS – 67.3%			$	20,629,078
(Cost: $13,551,371)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Value
Apple Inc.:
Call $525.00, Expires 10–19–13, OTC (Ctrpty: Deutsche Bank AG)		1,954	$	299
Call $535.00, Expires 10–19–13, OTC (Ctrpty: Morgan Stanley & Co., Inc.)		1,428		151
Call $475.00, Expires 1–18–14, OTC (Ctrpty: Goldman Sachs International)		978		2,890
Call $510.00, Expires 1–18–14, OTC (Ctrpty: Goldman Sachs International)		3,910		6,510
Applied Materials, Inc., Call $16.00, Expires 1–18–14, OTC (Ctrpty: Barclays Bank plc)		9,918		1,884
Cisco Systems, Inc., Put $22.00, Expires 10–19–13, OTC (Ctrpty: Deutsche Bank AG)		89,829		808
Merck & Co., Inc.:
Call $50.00, Expires 10–19–13, OTC (Ctrpty: Goldman Sachs International)		1,020		9
Call $50.00, Expires 11–16–13, OTC (Ctrpty: Goldman Sachs International)		41,868		2,052
S&P 500 Index:
Call $1,750.00, Expires 10–19–13		16,780		2,223
Call $1,775.00, Expires 11–16–13		11,900		2,945
Call $1,750.00, Expires 12–21–13		11,904		16,606
TOTAL PURCHASED OPTIONS – 0.1%			$	36,377
(Cost: $84,522)
CORPORATE DEBT SECURITIES	Principal
Automobile Manufacturers – 0.0%
Toyota Motor Credit Corporation, 3.460%, 1–18–15 (G)	$	325		324

2013 SEMIANNUAL REPORT 9

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Food Distributors – 0.4%
U.S. Foodservice, Inc., 8.500%, 6–30–19	$	119,124	$	125,527
Homebuilding – 0.0%
Desarrolladora Homex, S.A. de C.V., 7.500%, 9–28–15		470		113
Independent Power Producers & Energy Traders – 0.0%
CESP – Companhia Energetica de Sao Paulo, 9.750%,
1–15–15 (H)(I)	BRL	11,900		7,862
Movies & Entertainment – 3.1%
Delta Topco Limited, 10.000%,
11–24–60 (F)(J)	$	594,107		594,107
Legendary Pictures Funding, LLC and Legendary Finance, Inc., 8.000%, 3–15–18		351,700		351,700
				945,807
TOTAL CORPORATE DEBT SECURITIES – 3.5%			$	1,079,633
(Cost: $1,080,372)
LOANS
Movies & Entertainment – 0.6%
Circuit of the Americas LLC, 6.000%, 6–30–17 (G)		11,475		11,475
Formula One Holdings Ltd. and Alpha Topco Limited, 9.250%, 10–16–19 (G)		176,800		184,093
				195,568
TOTAL LOANS – 0.6%			$	195,568
(Cost: $185,935)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
Mortgage-Backed Obligations – 0.0%
Federal Home Loan Mortgage Corporation Agency REMIC/ CMO:
5.500%, 9–15–17 (K)	$	323	$	12
5.000%, 11–15–17 (K)		24		—	*
5.000%, 5–15–18 (K)		621		50
5.000%, 4–15–19 (K)		14		—	*
5.500%, 3–15–23 (K)		484		58
5.500%, 10–15–25 (K)		848		114
5.500%, 1–15–33 (K)		385		65
5.500%, 5–15–33 (K)		674		110
6.000%, 11–15–35 (K)		665		119
Federal National Mortgage Association Agency REMIC/ CMO:
5.500%, 6–25–23 (K)		688		91
5.000%, 11–25–23 (K)		87		1
5.500%, 8–25–33 (K)		1,315		206
5.500%, 12–25–33 (K)		835		72
5.500%, 4–25–34 (K)		1,407		219
5.500%, 8–25–35 (K)		1,373		228
5.500%, 11–25–36 (K)		2,632		423
Government National Mortgage Association Agency REMIC/ CMO:
5.500%, 3–20–32 (K)		520		31
7.000%, 5–20–33 (K)		2,409		594
5.000%, 7–20–33 (K)		16		1
5.500%, 11–20–33 (K)		121		7
5.500%, 7–20–35 (K)		802		135
				2,536
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0%			$	2,536
(Cost: $7,955)
BULLION – 8.0%	Troy Ounces
Gold		1,840		2,442,889
(Cost: $2,246,717)

SHORT-TERM SECURITIES	Principal		Value
Certificate Of Deposit – 1.2%
Banco del Estado de Chile:
0.225%, 10–8–13	$	25,000	$	25,000
0.225%, 10–9–13		20,200		20,200
0.225%, 10–10–13		30,000		30,000
0.210%, 10–28–13		50,000		50,000
0.160%, 11–5–13		25,000		25,000
0.170%, 11–5–13		40,000		39,999
Bank of America, N.A.:
0.220%, 10–15–13		14,000		14,000
0.210%, 11–19–13		25,000		24,999
0.260%, 11–21–13		1,400		1,400
Citibank, N.A.:
0.260%, 11–1–13		17,000		17,002
0.260%, 11–4–13		39,000		39,006
0.170%, 11–25–13		4,000		4,000
0.260%, 11–25–13		70,000		70,007
0.170%, 11–26–13		7,000		7,000
Peninsula Ports Auth of VA, Coal Terminal Rev Rfdg Bonds (Dominion Terminal Assoc Proj), Ser 1987-A (GTD by U.S. Bank, N.A.),
0.100%, 10–2–13		10,000		10,000
Toronto-Dominion Bank,
0.110%, 10–17–13		15,000		15,000
				392,613
Commercial Paper – 17.5%
Abbott Laboratories:
0.055%, 10–8–13 (L)		22,554		22,554
0.070%, 10–17–13 (L)		78,300		78,297
0.070%, 10–21–13 (L)		7,905		7,905
0.040%, 11–21–13 (L)		15,000		14,999
0.030%, 11–25–13 (L)		1,750		1,750
0.030%, 11–27–13 (L)		45,000		44,998
Air Products and Chemicals, Inc.:
0.070%, 10–3–13 (L)		12,000		12,000
0.070%, 10–18–13 (L)		8,000		8,000
0.060%, 10–30–13 (L)		11,000		10,999
American Honda Finance Corp. (GTD by Honda Motor Co.):
0.160%, 11–7–13 (L)		45,000		44,992
0.130%, 11–8–13 (L)		30,000		29,996
0.160%, 11–13–13 (L)		25,000		24,995
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB):
0.180%, 10–18–13 (L)		33,000		32,997
0.200%, 11–12–13 (L)		22,000		21,995
0.250%, 11–18–13 (L)		21,000		20,993
0.250%, 12–4–13 (L)		14,000		13,994
0.250%, 12–26–13 (L)		6,032		6,028
Army & Air Force Exchange Service:
0.100%, 10–2–13 (L)		25,000		25,000
0.050%, 10–7–13 (L)		20,000		20,000
0.100%, 10–9–13 (L)		50,000		49,999
0.060%, 10–15–13 (L)		25,000		24,999
0.060%, 10–16–13 (L)		15,000		15,000
0.060%, 11–1–13 (L)		10,000		9,999
0.180%, 11–7–13 (L)		8,000		7,999

10 SEMIANNUAL REPORT 2013

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
0.070%, 11–22–13 (L)	$	25,000	$	24,997
0.160%, 11–26–13 (L)		48,000		47,988
0.170%, 12–11–13 (L)		10,000		9,997
Automatic Data Processing Inc.,
0.050%, 10–2–13 (L)		37,000		37,000
Bank of Nova Scotia:
0.110%, 10–22–13 (L)		30,000		29,998
0.140%, 11–6–13 (L)		50,000		49,993
0.120%, 11–25–13 (L)		40,000		39,992
0.110%, 11–29–13 (L)		78,587		78,573
Becton Dickinson & Co.:
0.140%, 10–7–13 (L)		10,000		10,000
0.140%, 10–8–13 (L)		25,000		24,999
0.140%, 10–9–13 (L)		32,000		31,999
0.140%, 10–10–13 (L)		28,000		27,999
Bemis Company, Inc.:
0.240%, 10–1–13 (L)		10,400		10,400
0.250%, 10–2–13 (L)		10,000		10,000
0.250%, 10–7–13 (L)		12,250		12,249
0.250%, 10–8–13 (L)		11,250		11,249
0.240%, 10–16–13 (L)		10,750		10,749
0.250%, 10–21–13 (L)		11,750		11,748
0.240%, 10–22–13 (L)		21,000		20,997
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited):
0.080%, 10–24–13 (L)		10,000		9,999
0.100%, 10–28–13 (L)		15,000		14,999
0.200%, 11–4–13 (L)		50,000		49,990
0.190%, 11–20–13 (L)		49,200		49,187
Bristol-Myers Squibb Company:
0.060%, 10–7–13 (L)		40,000		40,000
0.060%, 10–10–13 (L)		20,000		20,000
Campbell Soup Company:
0.110%, 10–11–13 (L)		17,000		16,999
0.110%, 10–25–13 (L)		10,000		9,999
0.110%, 10–28–13 (L)		15,200		15,199
0.140%, 11–12–13 (L)		18,800		18,797
0.140%, 12–17–13 (L)		18,800		18,794
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.):
0.060%, 10–28–13 (L)		26,000		25,999
0.080%, 11–12–13 (L)		40,000		39,996
0.070%, 11–22–13 (L)		100,000		99,989
Chevron Corporation,
0.060%, 10–4–13 (L)		10,000		10,000
Clorox Company (The):
0.240%, 10–1–13 (L)		18,800		18,800
0.170%, 10–3–13 (L)		13,700		13,700
0.160%, 10–7–13 (L)		20,100		20,099
0.210%, 10–10–13 (L)		12,700		12,699
0.220%, 10–16–13 (L)		10,000		9,999
0.130%, 10–17–13 (L)		7,350		7,350
0.220%, 10–28–13 (L)		10,200		10,198
0.230%, 10–30–13 (L)		20,150		20,146
Coca-Cola Company (The):
0.080%, 10–9–13 (L)		72,250		72,249
0.060%, 12–2–13 (L)		16,000		15,998
0.060%, 12–3–13 (L)		10,000		9,999
0.060%, 12–6–13 (L)		10,000		9,999

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Corporacion Andina de Fomento:
0.431%, 10–8–13 (L)	$	1,700	$	1,700
0.200%, 10–11–13 (L)		25,000		24,998
0.120%, 10–21–13 (L)		15,000		14,999
0.200%, 11–19–13 (L)		65,000		64,982
0.190%, 12–3–13 (L)		11,000		10,996
CVS Caremark Corporation:
0.180%, 10–4–13 (L)		30,604		30,603
0.180%, 10–7–13 (L)		10,000		10,000
0.290%, 12–2–13 (L)		45,000		44,977
Danaher Corporation,
0.090%, 10–1–13 (L)		7,000		7,000
Diageo Capital plc (GTD by Diageo plc):
0.180%, 10–7–13 (L)		6,793		6,793
0.200%, 10–8–13 (L)		78,000		77,996
E.I. du Pont de Nemours and Company:
0.070%, 10–1–13 (L)		86,000		86,000
0.060%, 10–3–13 (L)		13,000		13,000
0.060%, 10–18–13 (L)		7,000		7,000
0.070%, 11–18–13 (L)		40,000		39,996
Ecolab Inc.:
0.250%, 10–8–13 (L)		37,000		36,998
0.280%, 10–10–13 (L)		10,650		10,649
0.250%, 10–21–13 (L)		30,000		29,996
0.230%, 11–4–13 (L)		11,000		10,998
Emerson Electric Co.:
0.070%, 11–21–13 (L)		10,000		9,999
0.060%, 11–25–13 (L)		88,000		87,992
0.060%, 11–26–13 (L)		31,500		31,497
0.060%, 12–4–13 (L)		15,062		15,060
0.070%, 12–13–13 (L)		12,000		11,998
Enbridge Inc.:
0.290%, 10–11–13 (L)		30,000		29,997
0.280%, 10–15–13 (L)		40,000		39,995
0.280%, 10–16–13 (L)		14,000		13,998
Exxon Mobil Corporation:
0.080%, 10–1–13 (L)		30,000		30,000
0.060%, 10–10–13 (L)		71,000		70,997
0.160%, 10–15–13 (L)		90,000		89,994
Fannie Mae Discount Notes,
0.020%, 11–27–13 (L)		12,464		12,464
Freddie Mac Discount Notes,
0.020%, 11–25–13 (L)		34,400		34,399
General Mills, Inc.:
0.130%, 10–2–13 (L)		16,000		16,000
0.090%, 10–10–13 (L)		15,000		15,000
0.130%, 10–17–13 (L)		21,000		20,999
0.170%, 10–21–13 (L)		26,700		26,697
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc):
0.080%, 10–15–13 (L)		40,000		39,999
0.080%, 10–18–13 (L)		100,000		99,995
0.080%, 10–23–13 (L)		25,000		24,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.):
0.160%, 10–7–13 (L)		21,000		20,999
0.190%, 10–11–13 (L)		20,000		19,999
0.170%, 11–4–13 (L)		25,000		24,996
0.180%, 11–18–13 (L)		15,000		14,996

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Hewlett-Packard Company:
0.390%, 10–21–13 (L)	$	40,500	$	40,491
0.350%, 10–24–13 (L)		14,000		13,997
ICICI Bank Limited (GTD by Bank of America, N.A.),
0.340%, 12–6–13 (L)		20,000		19,987
ICICI Bank Limited (GTD by Wells Fargo Bank, N.A.):
0.170%, 10–23–13 (L)		27,250		27,247
0.220%, 12–17–13 (L)		25,000		24,988
Illinois Tool Works Inc.:
0.060%, 10–1–13 (L)		15,500		15,500
0.060%, 10–4–13 (L)		10,500		10,500
0.060%, 10–11–13 (L)		22,000		22,000
0.050%, 10–16–13 (L)		11,000		11,000
John Deere Capital Corporation,
0.060%, 10–1–13 (L)		20,000		20,000
John Deere Financial Inc. (GTD by John Deere Capital Corporation):
0.070%, 10–9–13 (L)		20,000		20,000
0.070%, 10–17–13 (L)		9,500		9,500
John Deere Financial Limited (GTD by John Deere Capital Corporation):
0.060%, 10–3–13 (L)		12,000		12,000
0.070%, 10–8–13 (L)		20,000		20,000
0.060%, 10–18–13 (L)		27,000		26,999
0.050%, 10–21–13 (L)		16,000		15,999
Kellogg Co.:
0.150%, 10–2–13 (L)		25,000		25,000
0.150%, 10–3–13 (L)		25,000		25,000
0.150%, 10–10–13 (L)		30,000		29,999
0.150%, 10–23–13 (L)		9,000		8,999
0.180%, 11–6–13 (L)		25,000		24,995
L Air Liquide S.A.:
0.150%, 10–4–13 (L)		30,000		29,999
0.130%, 10–11–13 (L)		10,000		10,000
0.210%, 10–31–13 (L)		27,000		26,995
0.160%, 11–8–13 (L)		10,000		9,998
0.190%, 12–2–13 (L)		1,400		1,400
McCormick & Co. Inc.:
0.160%, 10–1–13 (L)		51,119		51,119
0.270%, 11–29–13 (L)		26,000		25,988
Medtronic, Inc.,
0.130%, 10–29–13 (L)		92,940		92,929
Microsoft Corporation:
0.040%, 11–20–13 (L)		25,000		24,999
0.030%, 12–4–13 (L)		35,100		35,098
Mondelez International, Inc.:
0.260%, 10–7–13 (L)		3,425		3,425
0.220%, 10–8–13 (L)		10,000		10,000
0.220%, 10–17–13 (L)		6,000		5,999
0.230%, 10–21–13 (L)		22,000		21,997
0.230%, 10–22–13 (L)		30,000		29,996
0.290%, 11–6–13 (L)		37,824		37,813
0.300%, 11–18–13 (L)		9,743		9,739
0.300%, 11–19–13 (L)		10,000		9,996
0.300%, 11–22–13 (L)		6,500		6,497
National Oilwell Varco, Inc.:
0.200%, 10–28–13 (L)		50,000		49,992
0.190%, 11–25–13 (L)		50,000		49,985
0.190%, 11–26–13 (L)		14,865		14,861

2013 SEMIANNUAL REPORT 11

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Nestle Capital Corp. (GTD by Nestle S.A.):
0.060%, 10–16–13 (L)	$	9,400	$	9,400
0.070%, 10–21–13 (L)		20,000		19,999
0.040%, 11–15–13 (L)		34,000		33,998
Nestle Finance International Ltd. (GTD by Nestle S.A.):
0.070%, 10–9–13 (L)		30,000		29,999
0.070%, 10–16–13 (L)		35,000		34,999
0.060%, 10–28–13 (L)		26,000		25,999
PACCAR Financial Corp. (GTD by PACCAR Inc.):
0.060%, 10–8–13 (L)		25,000		25,000
0.210%, 10–24–13 (L)		3,000		3,000
0.050%, 11–4–13 (L)		13,200		13,199
PepsiCo, Inc., 0.070%, 10–28–13 (L)		50,000		49,997
Pfizer Inc., 0.060%, 10–10–13 (L)		50,000		49,999
Praxair, Inc., 0.070%, 10–10–13 (L)		24,815		24,815
Procter & Gamble Company (The):
0.070%, 10–1–13 (L)		25,000		25,000
0.040%, 10–31–13 (L)		45,000		44,998
Roche Holdings, Inc., 0.060%, 10–24–13 (L)		30,000		29,999
St. Jude Medical, Inc.:
0.090%, 10–1–13 (L)		9,951		9,951
0.110%, 10–4–13 (L)		40,000		40,000
0.150%, 10–15–13 (L)		25,000		24,998
0.180%, 11–12–13 (L)		12,500		12,497
Straight-A Funding, LLC (GTD by Federal Financing Bank),
0.070%, 10–7–13 (L)		86,000		85,999
0.110%, 10–7–13 (L)		50,000		49,999
Target Corporation:
0.050%, 10–11–13 (L)		50,000		49,999
0.060%, 10–17–13 (L)		40,000		39,999
Toronto-Dominion Holdings USA Inc. (GTD by Toronto Dominion Bank):
0.120%, 10–7–13 (L)		37,321		37,320
0.100%, 10–18–13 (L)		10,000		10,000
0.110%, 11–1–13 (L)		50,000		49,995
0.130%, 11–18–13 (L)		44,000		43,992
Total Capital Canada Ltd. (GTD by Total S.A.),
0.060%, 10–3–13 (L)		20,000		20,000
Toyota Motor Credit Corporation:
0.130%, 10–15–13 (L)		50,000		49,997
0.120%, 11–20–13 (L)		20,000		19,997
0.110%, 12–2–13 (L)		25,000		24,995
Verizon Communications Inc., 0.210%, 10–21–13 (L)		10,000		9,999
Virginia Electric and Power Company:
0.250%, 10–8–13 (L)		5,000		5,000
0.260%, 10–16–13 (L)		64,300		64,293
0.260%, 10–28–13 (L)		35,000		34,993

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Wal-Mart Stores, Inc.:
0.060%, 10–8–13 (L)	$	84,000	$	83,999
0.070%, 10–16–13 (L)		63,000		62,998
Walt Disney Company (The):
0.060%, 11–15–13 (L)		11,000		10,999
0.060%, 11–20–13 (L)		25,000		24,998
Wisconsin Electric Power Co., 0.100%, 10–1–13 (L)		10,146		10,146
				5,325,938
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (M)		961		961
Municipal Obligations – Taxable – 1.3%
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by Bank of America, N.A.), 0.040%, 10–1–13 (M)		17,200		17,200
CA Muni Fin Auth, Recovery Zone Fac Bonds (Chevron U.S.A. Inc. Proj), Ser 2010C (GTD by Chevron Corporation), 0.050%, 10–1–13 (M)		12,386		12,386
CA Pollutn Ctl Fin Auth, Pollutn Ctl Rfdg Rev Bonds (Pacific Gas and Elec Co), Ser C (GTD by JPMorgan Chase Bank, N.A.), 0.060%, 10–1–13 (M)		19,701		19,701
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (1030 Post Street Apts), Ser 2005 Y, 0.070%, 10–7–13 (M)		5,300		5,300
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by United States Government), 0.070%, 10–7–13 (M)		12,375		12,375
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank, N.A.), 0.050%, 10–7–13 (M)		26,375		26,375

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
Dev Auth of Monroe Cty, Pollutn Ctl Rev Bonds (GA Power Co Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Company), 0.080%, 10–1–13 (M)	$	1,465	$	1,465
FL Muni Power Agy, All-Requirements Power Supply Proj Var Rate Demand Rfdg Rev Bonds, Ser 2008C (Bank of America, N.A.), 0.070%, 10–1–13 (M)		5,060		5,060
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank, N.A.), 0.060%, 10–7–13 (M)		8,800		8,800
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), 0.070%, 10–7–13 (M)		12,500		12,500
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2008B (GTD by U.S. Bank, N.A.), 0.080%, 10–7–13 (M)		1,905		1,905
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser 2009 (GTD by JPMorgan Chase Bank, N.A.), 0.080%, 10–7–13 (M)		855		855
IL Fin Auth, Var Rate Demand Rev Bonds (The Univ of Chicago Med Ctr), Ser D (GTD by JPMorgan Chase & Co.), 0.070%, 10–1–13 (M)		9,000		9,000
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank, N.A.), 0.040%, 10–1–13 (M)		27,750		27,750
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), 0.060%, 10–1–13 (M)		8,000		8,000
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York (The)), 0.070%, 10–7–13 (M)		6,750		6,750

12 SEMIANNUAL REPORT 2013

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
MA Hlth and Edu Fac Auth, Var Rate Rev Bonds, Dana-Farber Cancer Institute Issue, Ser 2008L-1 (GTD by JPMorgan Chase Bank, N.A.), 0.070%, 10–7–13 (M)	$	14,600	$	14,600
MI Strategic Fund, Var Rate Demand Ltd Oblig Rev Bonds (Air Products and Chemicals, Inc. Proj), Ser 2007 (GTD by Bank of New York (The)), 0.060%, 10–1–13 (M)		23,877		23,877
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007B (GTD by Chevron Corporation), 0.060%, 10–1–13 (M)		30,640		30,640
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007D (GTD by Chevron Corporation), 0.060%, 10–1–13 (M)		25,175		25,175
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2010J (GTD by Chevron Corporation), 0.050%, 10–1–13 (M)		26,838		26,838
MS Business Fin Corp, Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron U.S.A. Inc. Proj), Ser E (GTD by Chevron Corporation), 0.050%, 10–1–13 (M)		38,894		38,894
NY Hsng Fin Agy, Clinton Park Phase II Hsng Rev Bonds, Ser 2011 A-1 (GTD by Wells Fargo Bank, N.A.), 0.050%, 10–7–13 (M)		19,084		19,084
NY Hsng Fin Agy, Related West 30th Street Hsng Rev Bonds, Ser 2012 A-1 (GTD by Wells Fargo Bank, N.A.), 0.050%,10–7–13 (M)		1,200		1,200

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012 A, 0.070%, 10–7–13 (M)	$	5,000	$	5,000
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America, N.A.), 0.080%, 10–7–13 (M)		14,568		14,568
Santa Clara Cnty Fin Auth, Var Rate Rev Bonds, El Camino Hosp, Ser 2009A (GTD by Wells Fargo Bank, N.A.), 0.070%,10–7–13 (M)		14,751		14,751
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ-Ser A-1 (GTD by JPMorgan Chase & Co.), 0.120%, 10–7–13 (M)		2,000		2,000
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 1992 (GTD by Chevron Corporation), 0.050%, 10–1–13 (M)		7,767		7,767
WI Hlth and Edu Fac Auth, Wheaton Franciscan Svc, Inc., Sys Var Rate Rev Bonds, Ser 2003B (GTD by U.S. Bank, N.A.), 0.070%,10–7–13 (M)		4,500		4,500
				404,316
Notes – 0.3%
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank, N.A.), 0.050%, 10–7–13 (M)		30,000		30,000
CA GO Bonds, Ser 2005A3 (GTD by Bank of America, N.A.), 0.060%, 10–7–13 (M)		5,000		5,000
J.P. Morgan Chase & Co., 4.650%, 6–1–14		300		308
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013 A-1 (GTD by Bank of America, N.A.), 0.060%, 10–7–13 (M)		16,500		16,500

SHORT-TERM SECURITIES (Continued)	Principal		Value
Notes (Continued)
OR Hsng and Cmnty Svc Dept, Hsng Dev Rev Bonds (Pearl Fam Hsng Proj), Ser 2009 B-1 (GTD by U.S. Bank,N.A.), 0.070%, 10–7–13 (M)	$	10,925	$	10,925
Sonoco Products Co., 6.500%, 11–15–13		20,000		20,131
				82,864
United States Government Agency Obligations – 0.3%
Overseas Private Investment Corporation (GTD by United States Government):
0.130%, 10–2–13 (M)		11,352		11,352
0.130%, 10–2–13 (M)		3,000		3,000
0.130%, 10–7–13 (M)		35,000		35,000
0.130%, 10–7–13 (M)		18,500		18,500
0.130%, 10–7–13 (M)		18,474		18,474
0.130%, 10–7–13 (M)		10,769		10,866
0.130%, 10–7–13 (M)		5,692		5,692
0.130%, 10–7–13 (M)		2,500		2,500
				105,384
TOTAL SHORT-TERM SECURITIES – 20.6%			$	6,312,076
(Cost: $6,312,017)
TOTAL INVESTMENT SECURITIES – 100.1%			$	30,698,157
(Cost: $23,468,889)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%)				(38,935	)
NET ASSETS – 100.0%			$	30,659,222

2013 SEMIANNUAL REPORT 13

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Consolidated Schedule of investments

* Not shown due to rounding.

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

(B) All or a portion of the security position has been pledged as collateral on open futures contracts.

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

(D) All or a portion of the security position is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements.

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

(F) Restricted securities. At September 30, 2013, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Shares		Cost		Market Value
Delta Topco Limited	1–23–12 to 5–1–12		718,555	$	485,830	$	859,949
Legend Pictures LLC, Ltd.	12–18–12 to 9–24–13		190		352,761		295,823
Media Group Holdings, LLC	4–23–13		381		258,795		258,795
		Principal
Delta Topco Limited, 10.000%, 11-24-60	1–23–12 to 6–18–12		$594,107		600,840		594,107
				$	1,698,226	$	2,008,674

The total value of these securities represented 6.6% of net assets at September 30, 2013.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(H) Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real).

(I) 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. At September 30, 2013, the total value of these securities amounted to $7,862 or 0.0% of net assets.

(J) Payment-in-kind bonds.

(K) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(L) Rate shown is the yield to maturity at September 30, 2013.

(M) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Japanese Yen	Societe Generale Bank		16,357,363		10–22–13	$	—	$	1,202
Sell	Japanese Yen	Morgan Stanley International		68,770,330		10–23–13		—		7,717
Sell	Japanese Yen	Deutsche Bank AG		115,287,003		10–23–13		—		14,011
Sell	Japanese Yen	Barclays Capital, Inc.		93,762,932		10–23–13		—		11,186
							$	—	$	34,116

The following futures contracts were outstanding at September 30, 2013 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts		Market Value		Unrealized Appreciation (Depreciation)
Nikkei 225 Index	Long	12–13–13		2,125	$	312,605	$	2,482
E-mini S&P 500 Index	Long	12–20–13		2,381		199,325		(1,822	)
German Stock Index	Long	12–20–13		1,076		312,568		(784	)
Euro STOXX 50 Index	Long	12–23–13		8,028		312,680		245
FTSE 100 Index	Long	12–23–13		2,933		305,289		(7,222	)
					$	1,442,467	$	(7,101	)

14 SEMIANNUAL REPORT 2013

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Apple Inc.	Deutsche Bank AG		Call		1,954		October 2013	$	600.00	$	440	$	(30	)
	Morgan Stanley & Co., Inc.		Call		2,856		October 2013		600.00		577		(44	)
Applied Materials, Inc.	Barclays Bank plc		Put		4,959		January 2014		13.00		164		(32	)
	Barclays Bank plc		Put		4,959		January 2014		14.00		288		(60	)
	Barclays Bank plc		Call		9,918		January 2014		18.00		119		(734	)
Cisco Systems, Inc.	Deutsche Bank AG		Put		59,886		October 2013		23.00		1,916		(1,797	)
Merck & Co., Inc.	Goldman Sachs International		Call		41,868		November 2013		52.50		367		(523	)
S&P 500 Index	N/A		Put		4,880		October 2013		1,650.00		2,913		(6,271	)
	N/A		Call		4,880		October 2013		1,780.00		1,937		(110	)
	N/A		Put		11,904		December 2013		1,625.00		29,379		(35,831	)
										$	38,100	$	(45,432	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	7,975,042	$	—	$	1,414,567
Consumer Staples		477,045		—		—
Energy		975,430		—		—
Financials		4,808,217		—		—
Health Care		591,589		—		—
Industrials		720,379		—		—
Information Technology		3,377,568		—		—
Materials		151,412		—		—
Telecommunication Services		137,829		—		—
Total Common Stocks	$	19,214,511	$	—	$	1,414,567
Purchased Options		23,826		12,551		—
Corporate Debt Securities		—		133,825		945,808
Loans		—		—		195,568
United States Government Agency Obligations		—		2,536		—
Bullion		2,442,889		—		—
Short-Term Securities		—		6,312,076		—
Total	$	21,681,226	$	6,460,988	$	2,555,943
Futures Contracts	$	2,727	$	—	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	34,116	$	—
Futures Contracts	$	9,828	$	—	$	—
Written Options	$	42,211	$	3,221	$	—

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

	Common Stocks		Corporate Debt Securities			Loans				Short-Term Securities
Beginning Balance 4-1-13	$	958,998	$	945,808		$	199,929			$	5,846
Net realized gain (loss)		—		—			—				—
Net change in unrealized appreciation (depreciation)		325,911		—	*		(3,652	)			—
Purchases		129,658		—			—				—
Sales		—		—			(850	)			—
Amortization/Accretion of premium/discount		—		—			141				—
Transfers into Level 3 during the period		—		—			—				—
Transfers out of Level 3 during the period		—		—			—		��		(5,846	)
Ending Balance 9-30-13	$	1,414,567	$	945,808		$	195,568			$	—
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-13	$	325,911	$	—	*	$	(3,652	)		$	—

2013 SEMIANNUAL REPORT 15

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9-30-13		Valuation Technique(s)			Unobservable Input(s)
Assets
Common Stocks	$	295,823		Market comparable companies			Adjusted for market comparables
		258,795		Purchase price			Purchase price
		859,949		See below	(1)
Corporate Debt Securities		351,700		Purchase price			Purchase price
		594,108		See below	(1)
Loans		195,568		Third-party valuation service			Broker quotes

⁽¹⁾ At September 30, 2013, Ivy Asset Strategy Fund held (minority stake) investments in private-placement common stock and corporate debt securities. Because of the unique nature of these securities, the Valuation Committee, as described on page 125, determined the enterprise value after considering the results of multiple valuation methodologies, including both a comparison to market comparable companies and a discounted cash flow model. The total enterprise value was then allocated to the common stock and corporate debt securities held by the Fund.

Under the market comparable companies’ model, the most significant input was the price-earnings ratio, for which a range of 19 to 23 was considered to be the range that market participants would take into account when pricing the issuer.

Using a discounted cash flows model, the most significant inputs (and related range of assumptions anticipated to be used by market participants) were the long-term growth rate (2.5%), and the weighted average cost of capital (8.4%).

The Valuation Committee also applied an illiquidity discount of 10% for purposes of this valuation.

Significant increase in price-earnings ratio or long-term growth rate inputs could result in a higher fair value measurement. However, significant increase in weighted average cost of capital of illiquidity discount inputs could result in a lower fair value measurement.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

OTC = Over the Counter

REMIC = Real Estate Mortgage Investment Conduit

Country Diversification
(as a % of net assets)
United States	29.9%
Japan	9.8%
Hong Kong	8.6%
China	6.0%
United Kingdom	5.5%

South Korea	3.1%
Germany	2.3%
Netherlands	1.4%
France	1.3%
Switzerland	1.1%
Other Countries	2.4%
Other+	28.6%

+Includes gold bullion, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

16 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Asset Strategy New Opportunities Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	73.5%
Industrials	24.9%
Information Technology	13.1%
Consumer Discretionary	10.8%
Financials	8.8%
Consumer Staples	6.1%
Materials	4.8%
Energy	2.9%
Health Care	2.1%
Warrants	0.0%
Bullion (Gold)	7.4%
Purchased Options	0.5%
Bonds	0.3%
Corporate Debt Securities	0.3%
Cash and Cash Equivalents	18.3%

Lipper Rankings

Category: Lipper Global Flexible Portfolio Funds	Rank	Percentile
1 Year	316/422	75
3 Year	249/260	96

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

Country Weightings

Pacific Basin	37.2%
South Korea	14.2%
China	5.7%
India	4.9%
Other Pacific Basin	12.4%
Europe	11.9%
Netherlands	5.6%
United Kingdom	4.4%
Other Europe	1.9%
North America	11.4%
United States	6.8%
Mexico	4.6%
South America	8.2%
Brazil	7.7%
Other South America	0.5%
Bullion (Gold)	7.4%
Other	5.1%
Panama	5.1%
Cash and Cash Equivalents and Options	18.8%

Top 10 Equity Holdings

Company	Country	Sector
SINA Corporation	China	Information Technology
Chicago Bridge & Iron Company N.V., NY Shares	Netherlands	Industrials
Kia Motors Corporation	South Korea	Consumer Discretionary
Copa Holdings, S.A., Class A	Panama	Industrials
GLOVIS Co., Ltd.	South Korea	Industrials
MercadoLibre, Inc.	Brazil	Information Technology
Aggreko plc	United Kingdom	Industrials
BRF-Brasil Foods S.A.	Brazil	Consumer Staples
Chiyoda Corporation	Japan	Industrials
Kosmos Energy Ltd.	United States	Energy

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

2013 SEMIANNUAL REPORT 17

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy New Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Agricultural Products – 0.1%
Kaveri Seed Company Limited (A)		12	$	271
Air Freight & Logistics – 4.6%
GLOVIS Co., Ltd. (A)		59		11,625
Airlines – 5.1%
Copa Holdings, S.A., Class A		92		12,765
Apparel, Accessories & Luxury Goods – 0.8%
Page Industries Limited (A)		30		2,101
Automobile Manufacturers – 5.1%
Kia Motors Corporation (A)		211		12,794
Automotive Retail – 1.4%
Kolao Holdings (A)		117		3,552
Biotechnology – 2.1%
Ironwood Pharmaceuticals, Inc., Class A (B)		152		1,806
KYTHERA Biopharmaceuticals, Inc. (B)		61		2,805
Novozymes A/S, Class B (A)		19		712
				5,323
Commodity Chemicals – 2.0%
Alpek, S.A.B. de C.V. (A)		1,168		2,519
Mexichem, S.A.B. de C.V. (A)		574		2,504
				5,023
Communications Equipment – 0.9%
AAC Technologies Holdings Inc. (A)		510		2,316
Construction & Engineering – 9.5%
Chicago Bridge & Iron Company N.V., NY Shares		210		14,211
Chiyoda Corporation (A)		431		5,174
Daelim Industrial Co., Ltd. (A)		18		1,607
Gamuda Berhad (A)		764		1,079
Promotora y Operadora de Infraestructura, S.A.B. de C.V. (A)(B)		198		1,912
				23,983
Consumer Electronics – 1.5%
Harman International Industries, Incorporated		58		3,821
Department Stores – 0.5%
InRetail Peru Corp. (B)(C)		78		1,303
Distillers & Vintners – 2.3%
LT Group, Inc. (A)		7,159		2,960
United Spirits Limited (A)		71		2,865
				5,825

COMMON STOCKS (Continued)	Shares		Value
Diversified Banks – 4.4%
Axis Bank Limited (A)		112	$	1,797
Bangkok Bank Public Company Limited (A)		216		1,362
Hana Financial Group, Inc. (A)		73		2,495
Kasikornbank Public Company Limited (A)		421		2,374
Siam Commercial Bank Public Company Limited (A)(B)		228		1,079
YES BANK Limited (A)		379		1,740
				10,847
Diversified Reit’s – 0.4%
FIBRA Terrafina (A)		548		1,089
Macquarie Mexican REIT (A)		15		26
				1,115
Diversified Support Services – 3.3%
Aggreko plc (A)		318		8,252
Education Services – 1.3%
Abril Educacao S.A. (A)		117		1,729
Anhanguera Educacional Participacoes S.A. (A)		243		1,444
				3,173
Electronic Equipment & Instruments – 0.5%
TPK Holding Co., Ltd. (A)		137		1,244
Food Distributors – 1.0%
Olam International Limited (A)		1,992		2,429
Highways & Railtracks – 0.7%
OHL Mexico, S.A.B. de C.V. (A)(B)		688		1,811
Human Resource & Employment Services – 0.9%
WageWorks, Inc. (B)		45		2,290
Industrial Machinery – 0.8%
Pall Corporation		25		1,887
Internet Software & Services – 11.1%
MercadoLibre, Inc.		80		10,788
Naver Corporation (A)		5		2,695
SINA Corporation (B)		177		14,367
				27,850
IT Consulting & Other Services – 0.6%
HCL Technologies Limited (A)(B)		86		1,500
Movies & Entertainment – 0.2%
Major Cineplex Group Public Company Limited (A)		676		402
Multi-Sector Holdings – 1.7%
GT Capital Holdings Incorporated (A)		251		4,389

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production – 2.9%
Cairn Energy plc (A)(B)		629	$	2,672
Kosmos Energy Ltd. (B)		458		4,705
				7,377
Packaged Foods & Meats – 2.7%
BRF-Brasil Foods S.A. (A)		213		5,207
Charoen Pokphand Foods Public Company Limited (A)		2,012		1,543
				6,750
Real Estate Development – 1.6%
UEM Land Holdings Berhad (A)		5,075		3,971
Regional Banks – 0.7%
BanRegio Grupo Financiero, S.A.B. de C.V. (A)		298		1,696
Specialty Chemicals – 1.6%
Chr. Hansen Holding A/S (A)		111		3,931
Steel – 1.2%
Hyundai Steel Co (A)		8		635
Tata Steel Limited (A)		574		2,490
				3,125
TOTAL COMMON STOCKS – 73.5%			$	184,741
(Cost: $155,002)
WARRANTS
Food Distributors – 0.0%
Olam International Limited, Expires 1–29–18 (D)		400		92
TOTAL WARRANTS – 0.0%			$	92
(Cost: $—)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
HSCEI Index, Call HKD10,600.00, Expires 10–30–13, OTC (Ctrpty: Bank of America N.A.) (E)		240		210

18 SEMIANNUAL REPORT 2013

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy New Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

PURCHASED OPTIONS (Continued)	Number of Contracts (Unrounded)		Value
iShares MSCI Emerging Markets ETF, Call $413.28, Expires 10–19–13, OTC (Ctrpty: Deutsche Bank AG)		589	$	297
Nikkei 225 Index:
Call JPY14,750.00, Expires 10–11–13, OTC (Ctrpty: JPMorgan Chase Bank N.A.) (E)		150		237
Call JPY15,000.00, Expires 10–11–13, OTC (Ctrpty: UBS AG) (E)		95		82
Call JPY14,500.00, Expires 10–18–13, OTC (Ctrpty: JPMorgan Chase Bank N.A.) (E)		60		159
S&P/ASX 200 Index, Call AUD5,250.00, Expires 10–17–13, OTC (Ctrpty: Bank of America N.A.) (E)		313		147
TOTAL PURCHASED OPTIONS – 0.5%			$	1,132
(Cost: $1,720)

CORPORATE DEBT SECURITIES	Principal		Value
Food Distributors – 0.3%
Olam International Limited, 6.750%, 1–29–18	$	773	$	740
TOTAL CORPORATE DEBT SECURITIES – 0.3%			$	740
(Cost: $739)
BULLION – 7.4%	Troy Ounces
Gold		14	$	18,571
(Cost: $20,045)
SHORT-TERM SECURITIES	Principal
Certificate Of Deposit – 2.0%
Toronto-Dominion Bank, 0.110%, 10–17–13	$	5,000		5,000
Commercial Paper – 12.0%
CVS Caremark Corporation, 0.180%, 10–4–13 (F)		3,000		3,000
Illinois Tool Works Inc., 0.050%, 10–9–13 (F)		7,000		7,000
McCormick & Co. Inc., 0.160%, 10–1–13 (F)		3,000		3,000
National Oilwell Varco, Inc., 0.200%, 10–30–13 (F)		5,000		4,999

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Roche Holdings, Inc., 0.050%, 10–1–13 (F)	$	10,000	$	10,000
Wisconsin Electric Power Co., 0.100%, 10–1–13 (F)		2,137		2,137
				30,136
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (G)		104		104
TOTAL SHORT-TERM SECURITIES – 14.0%			$	35,240
(Cost: $35,240)
TOTAL INVESTMENT SECURITIES – 95.7%			$	240,516
(Cost: $212,746)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 4.3%				10,707
NET ASSETS – 100.0%			$	251,223

Notes to Consolidated Schedule of Investments

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

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

(C) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $1,303 or 0.5% of net assets.

(D) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(E) Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, HKD - Hong Kong Dollar, and JPY - Japanese Yen).

(F) Rate shown is the yield to maturity at September 30, 2013.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Japanese Yen	Barclays Capital, Inc.		464,628		10–23–13	$	—	$	55

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security

Counterparty, if OTC

Type

Number of Contracts

Expiration Month

Exercise Price

Premium Received

Value

Nikkei 225 Index

JPMorgan Chase Bank N.A.

Call

150

October 2013

JPY15,500.00

$

94

$

(27

)

2013 SEMIANNUAL REPORT 19

CONSOLIDATED SCHEDULE OF INVESTMENTS

Ivy Asset Strategy New Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	27,146	$	—	$	—
Consumer Staples		15,275		—		—
Energy		7,377		—		—
Financials		22,018		—		—
Health Care		5,323		—		—
Industrials		62,613		—		—
Information Technology		32,910		—		—
Materials		12,079		—		—
Total Common Stocks	$	184,741	$	—	$	—
Warrants		92		—		—
Purchased Options		—		1,132		—
Corporate Debt Securities		—		740		—
Bullion		18,571		—		—
Short-Term Securities		—		35,240		—
Total	$	203,404	$	37,112	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	55	$	—
Written Options	$	—	$	27	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

OTC = Over the Counter

REIT = Real Estate Investment Trusts

Country Diversification
(as a % of net assets)
South Korea	14.2	%
Brazil	7.7	%
United States	6.8	%
China	5.7	%
Netherlands	5.6	%
Panama	5.1	%
India	4.9	%
Mexico	4.6	%

United Kingdom	4.4	%
Philippines	2.9	%
Thailand	2.7	%
Japan	2.1	%
Malaysia	2.0	%
Denmark	1.9	%
Singapore	1.3	%
Hong Kong	0.9	%
Other Countries	1.0	%
Other+	26.2	%

+ Includes gold bullion, options, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

20 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Balanced Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	72.8%
Consumer Discretionary	16.7%
Industrials	14.8%
Financials	10.1%
Information Technology	9.1%
Consumer Staples	7.5%
Energy	6.9%
Health Care	5.1%
Materials	2.6%
Bonds	20.5%
Corporate Debt Securities	16.6%
United States Government and Government Agency Obligations	3.6%
Other Government Securities	0.3%
Cash and Cash Equivalents	6.7%

Lipper Rankings

Category: Lipper Mixed-Asset Target Allocation Growth Funds	Rank	Percentile
1 Year	160/561	29
3 Year	19/508	4
5 Year	54/470	12
10 Year	15/265	6

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

Top 10 Equity Holdings

Company	Sector
Limited Brands, Inc.	Consumer Discretionary
Anheuser-Busch InBev S.A., ADR	Consumer Staples
PNC Financial Services Group, Inc. (The)	Financials
JPMorgan Chase & Co.	Financials
Applied Materials, Inc.	Information Technology
Home Depot, Inc. (The)	Consumer Discretionary
Harley-Davidson, Inc.	Consumer Discretionary
ConocoPhillips	Energy
Boeing Company (The)	Industrials
Cummins Inc.	Industrials

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

2013 SEMIANNUAL REPORT 21

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 5.5%
Boeing Company (The)		180	$	21,150
General Dynamics Corporation		197		17,198
Honeywell International Inc.		226		18,767
Precision Castparts Corp.		77		17,429
				74,544
Apparel Retail – 3.7%
Gap, Inc. (The)		434		17,469
Limited Brands, Inc.		518		31,668
				49,137
Application Software – 1.2%
Intuit Inc.		241		16,007
Asset Management & Custody Banks – 1.2%
Northern Trust Corporation		302		16,409
Brewers – 2.2%
Anheuser-Busch InBev S.A., ADR		286		28,361
Broadcasting – 1.4%
CBS Corporation, Class B		351		19,383
Cable & Satellite – 2.3%
Comcast Corporation, Class A		332		15,008
Time Warner Cable Inc.		149		16,628
				31,636
Communications Equipment – 1.5%
Cisco Systems, Inc.		858		20,085
Computer Hardware – 1.4%
Apple Inc.		41		19,356
Construction & Farm Machinery & Heavy Trucks – 1.6%
Cummins Inc.		159		21,140
Distillers & Vintners – 1.5%
Brown-Forman Corporation, Class B		299		20,400
Diversified Chemicals – 1.5%
Dow Chemical Company (The)		513		19,687
Electrical Components & Equipment – 1.4%
Rockwell Automation, Inc.		173		18,479
Fertilizers & Agricultural Chemicals – 1.1%
Monsanto Company		146		15,207
Health Care Equipment – 1.2%
Covidien plc		262		15,954
Home Improvement Retail – 1.6%
Home Depot, Inc. (The)		286		21,701

COMMON STOCKS (Continued)	Shares		Value
Hotels, Resorts & Cruise Lines – 1.1%
Hyatt Hotels Corporation, Class A (A)		358	$	15,397
Household Products – 1.2%
Colgate-Palmolive Company		283		16,758
Industrial Conglomerates – 1.3%
3M Company		145		17,350
Industrial Machinery – 2.9%
Pall Corporation		242		18,636
Pentair, Inc.		317		20,592
				39,228
Internet Retail – 1.3%
Amazon.com, Inc. (A)		55		17,258
IT Consulting & Other Services – 1.2%
Cognizant Technology Solutions Corporation, Class A (A)		189		15,504
Managed Health Care – 1.0%
UnitedHealth Group Incorporated		186		13,341
Motorcycle Manufacturers – 1.6%
Harley-Davidson, Inc.		335		21,514
Movies & Entertainment – 1.5%
Twenty-First Century Fox, Inc.		587		19,606
Multi-Line Insurance – 1.5%
American International Group, Inc.		424		20,600
Oil & Gas Equipment & Services – 2.7%
National Oilwell Varco, Inc.		271		21,137
Schlumberger Limited		191		16,850
				37,987
Oil & Gas Exploration & Production – 2.3%
Cabot Oil & Gas Corporation		243		9,054
ConocoPhillips		308		21,374
				30,428
Oil & Gas Refining & Marketing – 1.0%
Phillips 66		227		13,128
Oil & Gas Storage & Transportation – 0.9%
Regency Energy Partners LP		420		12,018
Other Diversified Financial Services – 3.3%
Citigroup Inc.		432		20,966
JPMorgan Chase & Co.		447		23,111
				44,077

COMMON STOCKS (Continued)	Shares		Value
Packaged Foods & Meats – 1.2%
Mead Johnson Nutrition Company		212	$	15,706
Personal Products – 1.4%
Estee Lauder Companies, Inc. (The), Class A		279		19,474
Pharmaceuticals – 2.9%
GlaxoSmithKline plc, ADR		351		17,595
Johnson & Johnson		244		21,109
				38,704
Property & Casualty Insurance – 2.3%
Berkshire Hathaway Inc., Class B (A)		149		16,913
Travelers Companies, Inc. (The)		172		14,597
				31,510
Publishing – 0.9%
Pearson plc (B)		568		11,559
Railroads – 1.4%
Union Pacific Corporation		125		19,464
Regional Banks – 1.8%
PNC Financial Services Group, Inc. (The)		325		23,575
Research & Consulting Services – 0.7%
Verisk Analytics, Inc., Class A (A)		147		9,543
Restaurants – 1.3%
Starbucks Corporation		232		17,872
Semiconductor Equipment – 1.7%
Applied Materials, Inc.		1,311		22,986
Semiconductors – 2.1%
Altera Corporation		353		13,106
Microchip Technology Incorporated		389		15,658
				28,764
TOTAL COMMON STOCKS – 72.8%			$	980,837
(Cost: $798,707)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense – 0.2%
General Dynamics Corporation, 1.000%, 11–15–17	$	1,500		1,459
Northrop Grumman Corporation, 1.750%, 6–1–18		1,000		982
				2,441

22 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Apparel Retail – 0.4%
Limited Brands, Inc.:
6.900%, 7–15–17	$	750	$	848
6.625%, 4–1–21		2,915		3,151
				3,999
Apparel, Accessories & Luxury Goods – 0.1%
LVMH Moet Hennessy-Louis Vuitton, 1.625%, 6–29–17 (C)		2,000		1,995
Auto Parts & Equipment – 0.1%
BorgWarner Inc., 4.625%, 9–15–20		1,000		1,056
Delphi Corporation, 5.000%, 2–15–23		849		877
				1,933
Automobile Manufacturers – 0.5%
Ford Motor Company, Convertible, 4.250%, 11–15–16		1,000		1,976
Toyota Motor Credit Corporation: 0.553%, 5–17–16 (D)		1,500		1,504
2.050%, 1–12–17		2,000		2,047
				5,527
Automotive Manufacturers – 0.1%
Hyundai Capital America, 2.875%, 8–9–18 (C)		1,550		1,563
Banking – 0.5%
Commonwealth Bank of Australia New York, 1.950%, 3–16–15		1,050		1,070
Westpac Banking Corporation, 2.250%, 7–30–18		5,000		5,031
				6,101
Biotechnology – 0.2%
Amgen Inc., 2.125%, 5–15–17		2,000		2,030
Brewers – 0.5%
Anheuser-Busch InBev Worldwide Inc.: 5.375%, 11–15–14		1,000		1,054
1.375%, 7–15–17		1,000		996
Heineken N.V., 1.400%, 10–1–17 (C)		2,000		1,967
SABMiller Holdings Inc.: 2.200%, 8–1–18 (C)		2,700		2,693
3.750%, 1–15–22 (C)		500		504
				7,214
Broadcasting – 0.2%
CBS Corporation: 8.875%, 5–15–19		500		639
4.300%, 2–15–21		1,000		1,026
Discovery Communications, LLC: 4.375%, 6–15–21		750		786
3.300%, 5–15–22		900		862
				3,313

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Cable & Satellite – 0.2%
DIRECTV Holdings LLC, 2.400%, 3–15–17	$	500	$	502
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., 3.500%, 3–1–16		1,000		1,043
Pearson Funding Five plc, 3.250%, 5–8–23 (C)		900		825
				2,370
Construction & Farm Machinery & Heavy Trucks – 0.1%
Caterpillar Inc., 1.375%, 5–27–14		1,000		1,006
Consumer Finance – 1.4%
American Express Credit Corporation: 5.125%, 8–25–14		200		208
2.125%, 7–27–18		1,750		1,757
American Honda Finance Corporation, 0.637%, 5–26–16 (C)(D)		1,500		1,503
Capital One Financial Corporation: 2.125%, 7–15–14		1,750		1,769
1.000%, 11–6–15		1,500		1,493
Caterpillar Financial Services Corporation, 1.550%, 12–20–13		1,000		1,003
Charles Schwab Corporation (The), 2.200%, 7–25–18		1,000		1,009
Discover Bank, 2.000%, 2–21–18		3,100		3,033
Ford Motor Credit Company LLC, 3.875%, 1–15–15		1,000		1,034
General Motors Financial Company, Inc., 2.750%, 5–15–16 (C)		1,086		1,083
Penske Truck Leasing Co., LP and PTL Finance Corp., 2.500%, 7–11–14 (C)		1,000		1,011
Total System Services, Inc., 2.375%, 6–1–18		3,038		2,964
USAA Capital Corporation, 1.050%, 9–30–14 (C)		1,000		1,005
				18,872
Data Processing & Outsourced Services – 0.1%
Fidelity National Financial, Inc., 6.600%, 5–15–17		900		1,004
Department Stores – 0.1%
Macy’s Retail Holdings, Inc., 3.875%, 1–15–22		1,000		992
Distillers & Vintners – 0.6%
Beam Inc.: 1.875%, 5–15–17		800		804
1.750%, 6–15–18		1,000		978

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Distillers & Vintners (Continued)
Brown-Forman Corporation, 1.000%, 1–15–18	$	3,000	$	2,913
Constellation Brands, Inc., 3.750%, 5–1–21		3,170		2,929
				7,624
Distributors – 0.0%
LKQ Corporation, 4.750%, 5–15–23 (C)		680		631
Diversified Banks – 1.9%
Bank of America Corporation: 1.070%, 3–22–16 (D)		4,000		4,015
4.100%, 7-24-23		1,100		1,094
Bank of Montreal, 1.300%, 10–31–14 (C)		1,000		1,010
Bank of New York Mellon Corporation (The): 1.500%, 1–31–14		1,250		1,255
0.700%, 10–23–15		1,000		999
Bank of Nova Scotia (The), 1.450%, 4–25–18		2,500		2,443
Barclays Bank plc, 2.375%, 1–13–14		600		603
BNP Paribas, 2.700%, 8–20–18		2,850		2,883
BNP Paribas S.A., 5.186%, 6–29–49 (C)		2,700		2,727
National Australia Bank Ltd.:
0.900%, 1–20–16		2,000		1,998
2.300%, 7–25–18		2,750		2,773
Societe Generale, 2.625%, 10–1–18		2,800		2,807
U.S. Bancorp, 4.200%, 5–15–14		1,000		1,024
Wells Fargo & Company:
3.676%, 6–15–16 (D)		500		533
1.500%, 1–16–18		1,000		984
				27,148
Diversified Capital Markets – 0.0%
Deutsche Bank AG, 3.450%, 3–30–15		500		520
Diversified Chemicals – 0.1%
Airgas, Inc., 1.650%, 2–15–18		1,250		1,216
Diversified Metals & Mining – 0.2%
Freeport-McMoRan Copper & Gold Inc., 2.375%, 3–15–18 (C)		450		435
Rio Tinto Finance (USA) Limited, 8.950%, 5–1–14		500		524
Teck Resources, 3.000%, 3–1–19		1,700		1,676
				2,635
Drug Retail – 0.0%
CVS Caremark Corporation, 3.250%, 5–18–15		550		572

2013 SEMIANNUAL REPORT 23

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Electric Utilities – 0.2%
Southern Company, (The), 2.450%, 9–1–18	$	2,800	$	2,828
Fertilizers & Agricultural Chemicals – 0.1%
Monsanto Company, 2.750%, 4–15–16		1,000		1,044
Food Distributors – 0.3%
Campbell Soup Company, 2.500%, 8–2–22		2,400		2,184
Cargill, Inc., 4.307%, 5–14–21 (C)		424		449
ConAgra Foods, Inc., 1.300%, 1–25–16		1,000		1,001
General Mills, Inc., 0.564%, 1–29–16 (D)		500		500
				4,134
General Merchandise Stores – 0.1%
Target Corporation, 1.125%, 7–18–14		1,000		1,006
Health Care Equipment – 0.1%
Stryker Corporation, 2.000%, 9–30–16		1,500		1,542
Health Care Services – 0.1%
Quest Diagnostics Incorporated, 3.200%, 4–1–16		2,000		2,083
Health Care Supplies – 0.1%
DENTSPLY International Inc., 2.750%, 8–15–16		1,000		1,030
Mallinckrodt International Finance S.A., 3.500%, 4–15–18 (C)		500		492
				1,522
Home Improvement Retail – 0.0%
Home Depot, Inc. (The), 4.400%, 4–1–21		250		274
Homebuilding – 0.1%
Toll Brothers Finance Corp., 4.375%, 4–15–23		1,500		1,376
Hotels, Resorts & Cruise Lines – 0.0%
Hyatt Hotels Corporation, 3.375%, 7–15–23		500		467
Household Products – 0.1%
Church & Dwight Co., Inc., 2.875%, 10–1–22		500		470
Colgate-Palmolive Company, 1.250%, 5–1–14		500		503
				973
Hypermarkets & Super Centers – 0.2%
Costco Wholesale Corporation, 0.650%, 12–7–15		1,000		1,000

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Hypermarkets & Super Centers (Continued)
Wal-Mart Stores, Inc.:
0.750%, 10–25–13	$	1,500	$	1,500
2.875%, 4–1–15		250		260
				2,760
Independent Finance – 0.1%
Fidelity National Information Services, Inc., 2.000%, 4–15–18		1,250		1,218
Industrial Conglomerates – 0.2%
General Electric Capital Corporation, 0.959%, 4–2–18 (D)		3,000		3,018
General Electric Company, 0.850%, 10–9–15		1,000		1,002
				4,020
Industrial Gases – 0.1%
Praxair, Inc.:
4.375%, 3–31–14		1,000		1,019
3.000%, 9–1–21		1,000		982
				2,001
Industrial Machinery – 0.2%
Eaton Corporation, 0.584%, 6–16–14 (D)		750		750
Illinois Tool Works Inc., 5.150%, 4–1–14		1,000		1,023
Ingersoll-Rand Global Holding Company Limited, 2.875%, 1–15–19 (C)		500		499
				2,272
Integrated Telecommunication Services – 0.5%
Verizon Communications Inc.:
3.650%, 9–14–18		2,300		2,424
5.150%, 9–15–23		3,300		3,538
				5,962
Internet Retail – 0.1%
Amazon.com, Inc., 0.650%, 11–27–15		2,000		1,997
Investment Banking & Brokerage – 0.4%
Goldman Sachs Group, Inc. (The):
1.600%, 11–23–15		1,500		1,511
2.900%, 7–19–18		1,350		1,361
Morgan Stanley, 2.125%, 4–25–18		2,500		2,437
				5,309
IT Consulting & Other Services – 0.2%
Baidu, Inc., 3.250%, 8–6–18		1,100		1,100
International Business Machines Corporation:
1.250%, 5–12–14		2,000		2,012
0.246%, 2–4–15 (D)		1,250		1,250
				4,362

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Leisure Products – 0.1%
Mattel, Inc., 2.500%, 11–1–16	$	750	$	774
Life & Health Insurance – 0.4%
Metropolitan Life Global Funding I:
2.000%, 1–10–14 (C)		1,200		1,205
2.500%, 9–29–15 (C)		2,500		2,583
Prudential Financial, Inc.:
4.750%, 9–17–15		500		537
2.300%, 8–15–18		1,100		1,110
				5,435
Managed Health Care – 0.1%
WellPoint, Inc., 1.875%, 1–15–18		1,500		1,487
Metal & Glass Containers – 0.1%
BlueScope Steel (Finance) Limited and BlueScope Steel Finance (USA) LLC,
7.125%, 5-1-18 (C)		1,281		1,316
Movies & Entertainment – 0.4%
News American Incorporated,
3.000%, 9-15-22		2,000		1,876
Viacom Inc.:
4.375%, 9-15-14		500		516
2.500%, 9-1-18		1,100		1,098
Walt Disney Company (The),
0.450%, 12-1-15		1,000		995
				4,485
Oil & Gas – 0.4%
BP Capital Markets plc (GTD by BP plc),
2.241%, 9-26-18		4,250		4,255
Oil & Gas Drilling – 0.1%
Transocean Inc.,
2.500%, 10-15-17		2,000		2,006
Oil & Gas Equipment & Services – 0.1%
National Oilwell Varco, Inc.,
1.350%, 12-1-17		500		492
Schlumberger Investment S.A. (GTD by Schlumberger Ltd.),
1.250%, 8-1-17 (C)		1,000		980
Schlumberger S.A. (GTD by Schlumberger Ltd.),
2.650%, 1-15-16 (C)		500		519
				1,991
Oil & Gas Exploration & Production – 0.3%
ConocoPhillips (GTD by ConocoPhillips Company),
4.750%, 2-1-14		254		258
EOG Resources, Inc.,
2.500%, 2-1-16		1,000		1,038
ONEOK Partners, L.P.,
3.200%, 9-15-18		1,200		1,222

24 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Exploration & Production (Continued)
Southwestern Energy Company,
4.100%, 3-15-22	$	1,050	$	1,051
				3,569
Oil & Gas Storage & Transportation – 0.1%
Kinder Morgan Energy Partners, L.P.,
2.650%, 2-1-19		1,500		1,490
Other Diversified Financial Services – 1.2%
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton plc and BHP Billiton Limited),
2.050%, 9-30-18		1,200		1,202
Citigroup Inc.,
1.250%, 1-15-16		1,500		1,499
Daimler Finance North America LLC,
2.375%, 8-1-18 (C)		2,600		2,605
JPMorgan Chase & Co.:
4.650%, 6-1-14		1,000		1,027
0.715%, 4-23-15 (D)		2,500		2,503
1.100%, 10-15-15		2,000		2,004
3.450%, 3-1-16		2,000		2,106
3.150%, 7-5-16		750		787
7.900%, 4-29-49 (D)		500		543
Total Capital,
2.125%, 8-10-18		1,500		1,514
				15,790
Other Non-Agency REMIC/CMO – 0.0%
Banco Hipotecario Nacional:
7.916%, 7-25-09 (C)		7		—
8.000%, 3-31-11 (C)		1		—
				—
Packaged Foods & Meats – 0.1%
Kellogg Company,
4.450%, 5-30-16		500		545
Unilever Capital Corporation,
2.750%, 2-10-16		1,000		1,044
				1,589
Personal Products – 0.2%
Estee Lauder Companies, Inc. (The),
2.350%, 8-15-22		1,200		1,099
Kimberly-Clark Corporation,
0.384%, 5-15-16 (D)		1,000		1,001
				2,100
Property & Casualty Insurance – 0.2%
Berkshire Hathaway Finance Corporation,
2.000%, 8-15-18		1,550		1,555

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Property & Casualty Insurance (Continued)
Berkshire Hathaway Inc.,
1.550%, 2-9-18	$	500	$	495
				2,050
Railroads – 0.1%
Burlington Northern Santa Fe, LLC,
3.050%, 3-15-22		700		674
Kansas City Southern de Mexico, S.A. de C.V.,
2.350%, 5-15-20 (C)		900		858
				1,532
Regional Banks – 0.2%
Canadian Imperial Bank of Commerce,
0.900%, 10-1-15		1,000		1,003
PNC Bank, N.A.,
0.800%, 1-28-16		1,500		1,495
				2,498
Restaurants – 0.0%
YUM! Brands, Inc.,
4.250%, 9-15-15		250		266
Retail Stores – 0.1%
Dollar General Corporation:
4.125%, 7-15-17		450		478
1.875%, 4-15-18		1,000		971
				1,449
Semiconductors – 0.1%
Broadcom Corporation,
2.700%, 11-1-18		1,000		1,029
Soft Drinks – 0.7%
PepsiCo, Inc.:
0.700%, 8-13-15		2,500		2,504
2.250%, 1-7-19		6,500		6,517
				9,021
Specialized Finance – 0.1%
PACCAR Financial Corp.,
0.392%, 5-5-15 (D)		1,000		999
Specialty Chemicals – 0.1%
RPM International Inc.,
3.450%, 11-15-22		1,000		936
Sherwin-Williams Company (The),
1.350%, 12-15-17		750		732
				1,668
Systems Software – 0.3%
CA, Inc.,
2.875%, 8-15-18		2,850		2,875
Microsoft Corporation,
2.950%, 6-1-14		500		509
				3,384

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Tobacco – 0.0%
Philip Morris International Inc.,
4.500%, 3-26-20	$	500	$	549
Trucking – 0.1%
Ryder System, Inc.,
2.350%, 2-26-19		1,000		977
Wireless – 0.0%
Virgin Media Finance plc,
4.875%, 2-15-22		284		239
Wireless Telecommunication Service – 0.3%
America Movil, S.A.B. de C.V.,
3.625%, 3-30-15		1,200		1,238
American Tower Corporation:
4.625%, 4-1-15		500		522
4.700%, 3-15-22		1,400		1,362
Crown Castle International Corp.,
5.250%, 1–15–23		1,046		962
				4,084
TOTAL CORPORATE DEBT SECURITIES – 16.6%			$	223,888
(Cost: $221,596)
OTHER GOVERNMENT SECURITIES
Canada – 0.0%
TransCanada PipeLines Ltd, 0.750%, 1–15–16		500		497
Israel – 0.1%
State of Israel, 4.000%, 6–30–22		1,250		1,298
Qatar – 0.2%
State of Qatar:
4.000%, 1–20–15 (C)		750		778
3.125%, 1–20–17 (C)		1,000		1,045
				1,823
Supranational – 0.0%
International Bank for Reconstruction and Development, 2.375%, 5–26–15		450		465
TOTAL OTHER GOVERNMENT SECURITIES – 0.3%			$	4,083
(Cost: $3,933)

2013 SEMIANNUAL REPORT 25

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
Mortgage–Backed Obligations – 0.1%
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 9–1–17	$	76	$	81
5.000%, 1–1–18		47		50
5.500%, 4–1–18		19		19
6.500%, 10–1–28		69		77
6.500%, 2–1–29		10		12
7.000%, 11–1–31		71		84
6.500%, 2–1–32		57		64
7.000%, 2–1–32		93		110
7.000%, 3–1–32		40		48
7.000%, 7–1–32		48		54
6.000%, 9–1–32		224		249
6.500%, 9–1–32		48		53
5.500%, 5–1–33		80		88
5.500%, 6–1–33		48		53
				1,042
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.1%			$	1,042
(Cost: $949)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 3.5%
United States Treasury Notes:
4.250%, 8–15–15		3,000		3,221
0.375%, 1–15–16		14,000		13,992
0.625%, 7–15–16		8,000		8,012
0.875%, 1–31–17		3,000		3,008
0.625%, 5–31–17		8,500		8,406
1.375%, 11–30–18		10,000		9,971
				46,610
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 3.5%			$	46,610
(Cost: $46,333)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 5.3%
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB), 0.180%, 10–18–13 (E)	$	3,000	$	3,000
Automatic Data Processing Inc., 0.050%, 10–2–13 (E)		5,000		5,000
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited), 0.110%, 11–18–13 (E)		5,000		4,999
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.), 0.070%, 11–22–13 (E)		5,000		4,999
Danaher Corporation:
0.090%, 10–1–13 (E)		5,000		5,000
0.090%, 10–25–13 (E)		7,000		7,000
Diageo Capital plc (GTD by Diageo plc), 0.180%, 10–7–13 (E)		7,000		7,000
General Mills, Inc., 0.130%, 10–2–13 (E)		6,000		6,000
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), 0.080%, 10–18–13 (E)		10,000		9,999
Hewlett-Packard Company, 0.360%, 10–21–13 (E)		3,000		2,999
Illinois Tool Works Inc., 0.060%, 10–10–13 (E)		5,500		5,500
Prudential Funding, LLC (GTD by Prudential Financial, Inc.), 0.050%, 10–1–13 (E)		2,314		2,314
St. Jude Medical, Inc., 0.180%, 11–12–13 (E)		3,500		3,499
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (E)		1,500		1,500
Verizon Communications Inc., 0.210%, 10–21–13 (E)		3,000		3,000
				71,809

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (F)	$	562	$	562
Municipal Obligations – Taxable – 0.8%
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), 0.060%, 10–1–13 (F)		2,000		2,000
MA Hlth and Edu Fac Auth, Var Rate Rev Bonds, Dana-Farber Cancer Institute Issue, Ser 2008L-1 (GTD by JPMorgan Chase Bank, N.A.), 0.070%, 10–7–13 (F)		1,400		1,400
MS Business Fin Corp, Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron U.S.A. Inc. Proj), Ser E (GTD by Chevron Corporation), 0.050%, 10–1–13 (F)		1,812		1,812
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America, N.A.), 0.080%, 10–7–13 (F)		4,400		4,400
				9,612
TOTAL SHORT-TERM SECURITIES – 6.1%			$	81,983
(Cost: $81,984)
TOTAL INVESTMENT SECURITIES – 99.4%			$	1,338,443
(Cost: $1,153,502)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%				7,833
NET ASSETS – 100.0%			$	1,346,276

Notes to Schedule of Investments

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

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

(C) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $32,281 or 2.4% of net assets.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(E) Rate shown is the yield to maturity at September 30, 2013.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

26 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Balanced Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	980,837	$	—	$	—
Corporate Debt Securities		—		223,888		—
Other Government Securities		—		4,083		—
United States Government Agency Obligations		—		1,042		—
United States Government Obligations		—		46,610		—
Short-Term Securities		—		81,983		—
Total	$	980,837	$	357,606	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REMIC = Real Estate Mortgage Investment Conduit

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 27

PORTFOLIO HIGHLIGHTS

Ivy Energy Fund

ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	96.8%
Energy	94.1%
Industrials	2.7%
Cash and Cash Equivalents	3.2%

Lipper Rankings

Category: Lipper Natural Resources Funds	Rank	Percentile
1 Year	11/73	15
3 Year	34/66	51
5 Year	20/62	32

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

Country Weightings

North America	87.5%
United States	83.8%
Canada	3.7%
Europe	8.2%
Netherlands	4.4%
Other Europe	3.8%
Pacific Basin	1.1%
Cash and Cash Equivalents	3.2%

Top 10 Equity Holdings

Company	Sector	Industry
Continental Resources, Inc.	Energy	Oil & Gas Exploration & Production
Schlumberger Limited	Energy	Oil & Gas Equipment & Services
National Oilwell Varco, Inc.	Energy	Oil & Gas Equipment & Services
Core Laboratories N.V.	Energy	Oil & Gas Equipment & Services
Anadarko Petroleum Corporation	Energy	Oil & Gas Exploration & Production
EOG Resources, Inc.	Energy	Oil & Gas Exploration & Production
Halliburton Company	Energy	Oil & Gas Equipment & Services
Cabot Oil & Gas Corporation	Energy	Oil & Gas Exploration & Production
Occidental Petroleum Corporation	Energy	Integrated Oil & Gas
Noble Energy, Inc.	Energy	Oil & Gas Exploration & Production

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

28 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Energy Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Coal & Consumable Fuels – 1.3%
Cameco Corporation		63	$	1,133
Peabody Energy Corporation		56		963
				2,096
Construction & Engineering – 2.7%
Fluor Corporation		60		4,279
Integrated Oil & Gas – 6.0%
Chevron Corporation		6		717
Exxon Mobil Corporation		17		1,454
Hess Corporation		10		781
Occidental Petroleum Corporation		51		4,811
Suncor Energy Inc.		54		1,914
				9,677
Oil & Gas Drilling – 4.0%
Ensco plc		23		1,256
Helmerich & Payne, Inc.		34		2,373
Seadrill Limited		35		1,582
Transocean Inc.		27		1,208
				6,419
Oil & Gas Equipment & Services – 32.4%
Baker Hughes Incorporated		63		3,074
Basic Energy Services, Inc. (A)		120		1,511
Cameron International Corporation (A)		66		3,879
Core Laboratories N.V.		37		6,278
Dresser-Rand Group Inc. (A)		46		2,883
Dril-Quip, Inc. (A)		36		4,165
FMC Technologies, Inc. (A)		42		2,322
Forum Energy Technologies, Inc. (A)		104		2,797
Frank’s International N.V.		29		868
Halliburton Company		116		5,561
National Oilwell Varco, Inc.		83		6,507
Schlumberger Limited		79		6,984
Superior Energy Services, Inc. (A)		88		2,210
Weatherford International Ltd. (A)		210		3,213
				52,252
Oil & Gas Exploration & Production – 37.5%
Anadarko Petroleum Corporation		64		5,939
Athlon Energy Inc. (A)		55		1,810

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Exploration & Production (Continued)
Bonanza Creek Energy, Inc. (A)		55	$	2,671
Cabot Oil & Gas Corporation		141		5,255
Canadian Natural Resources Limited		31		959
Cimarex Energy Co.		38		3,673
CNOOC Limited, ADR		8		1,695
Cobalt International Energy, Inc. (A)		67		1,659
Concho Resources Inc. (A)		14		1,529
ConocoPhillips		11		796
Continental Resources, Inc. (A)		69		7,400
EOG Resources, Inc.		33		5,577
Goodrich Petroleum Corporation (A)		32		786
Gulfport Energy Corporation (A)		50		3,198
Laredo Petroleum Holdings, Inc. (A)		31		928
Marathon Oil Corporation		44		1,545
Noble Energy, Inc.		65		4,336
Oasis Petroleum LLC (A)		44		2,164
Petroleum Development Corporation (A)		28		1,640
Pioneer Natural Resources Company		14		2,728
Southwestern Energy Company (A)		109		3,973
				60,261
Oil & Gas Refining & Marketing – 1.7%
Clean Energy Fuels Corp. (A)		69		878
Marathon Petroleum Corporation, LP		52		1,906
				2,784
Oil & Gas Storage & Transportation – 11.2%
El Paso Pipeline Partners, L.P.		62		2,616
Enbridge Inc.		45		1,857
Energy Transfer Equity, L.P.		14		898
Kinder Morgan Management, LLC (A)		17		1,297
Kinder Morgan, Inc.		37		1,312
MarkWest Energy Partners, L.P.		35		2,542
Phillips 66 Partners LP (A)		48		1,483
Regency Energy Partners LP		57		1,637

COMMON STOCKS (Continued)	Shares		Value
Oil & Gas Storage & Transportation (Continued)
Targa Resources Corp.		30	$	2,174
Williams Companies, Inc. (The)		60		2,163
				17,979
TOTAL COMMON STOCKS – 96.8%			$	155,747
(Cost: $102,964)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 5.2%
St. Jude Medical, Inc., 0.180%, 11–12–13 (B)	$	2,000		2,000
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (B)		4,000		4,000
Wisconsin Electric Power Co., 0.100%, 10–1–13 (B)		2,462		2,462
				8,462
Master Note – 2.3%
Toyota Motor Credit Corporation,
0.100%, 10–2–13 (C)		3,693		3,693
TOTAL SHORT-TERM SECURITIES – 7.5%			$	12,155
(Cost: $12,155)
TOTAL INVESTMENT SECURITIES – 104.3%			$	167,902
(Cost: $115,119)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (4.3%)				(6,850	)
NET ASSETS – 100.0%			$	161,052

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

2013 SEMIANNUAL REPORT 29

SCHEDULE OF INVESTMENTS

Ivy Energy Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	155,747	$	—	$	—
Short-Term Securities		—		12,155		—
Total	$	155,747	$	12,155	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

Country Diversification
(as a % of net assets)
United States	83.8%
Netherlands	4.4%
Canada	3.7%
Switzerland	2.0%
China	1.1%
Norway	1.0%
Other Countries	0.8%
Other+	3.2%

+ Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

30 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Global Natural Resources Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	93.8%
Energy	63.9%
Materials	26.5%
Industrials	2.4%
Financials	1.0%
Purchased Options	4.0%
Cash and Cash Equivalents	2.2%

Lipper Rankings

Category: Lipper Global Natural Resources Funds	Rank	Percentile
1 Year	72/151	48
3 Year	91/124	73
5 Year	76/98	77
10 Year	31/34	89

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

Country Weightings

North America	77.0%
United States	70.4%
Canada	6.6%
Europe	14.6%
United Kingdom	7.5%
Netherlands	3.5%
Other Europe	3.6%
Pacific Basin	2.2%
Cash and Cash Equivalents and Options	6.2%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Halliburton Company	United States	Energy	Oil & Gas Equipment & Services
Schlumberger Limited	United States	Energy	Oil & Gas Equipment & Services
Rio Tinto plc	United Kingdom	Materials	Diversified Metals & Mining
Freeport-McMoRan Copper & Gold Inc., Class B	United States	Materials	Diversified Metals & Mining
EOG Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
National Oilwell Varco, Inc.	United States	Energy	Oil & Gas Equipment & Services
Continental Resources, Inc.	United States	Energy	Oil & Gas Exploration & Production
Anadarko Petroleum Corporation	United States	Energy	Oil & Gas Exploration & Production
Pioneer Natural Resources Company	United States	Energy	Oil & Gas Exploration & Production
Noble Energy, Inc.	United States	Energy	Oil & Gas Exploration & Production

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

2013 SEMIANNUAL REPORT 31

SCHEDULE OF INVESTMENTS

Ivy Global Natural Resources Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Canada – 6.6%
Canadian Pacific Railway Limited		168	$	20,764
Goldcorp Inc.		1,489		38,729
Suncor Energy Inc.		1,500		53,633
Yamana Gold Inc.		1,650		17,156
				130,282
China – 0.0%
China Metal Recycling (Holdings) Limited		30,000		—	*
Netherlands – 3.5%
Chicago Bridge & Iron Company N.V., NY Shares		200		13,554
Core Laboratories N.V.		68		11,506
Frank’s International N.V.		395		11,808
LyondellBasell Industries N.V., Class A		425		31,122
				67,990
Norway – 1.2%
Seadrill Limited		523		23,577
South Korea – 2.2%
LG Chem, Ltd.		150		42,920
Switzerland – 2.4%
Weatherford International Ltd. (A)		3,069		47,048
United Kingdom – 7.5%
BHP Billiton plc		1,660		48,915
Randgold Resources Limited, ADR		294		21,055
Rio Tinto plc		1,582		77,422
				147,392
United States – 70.4%
Anadarko Petroleum Corporation		651		60,550
Axiall Corporation		775		29,287
Baker Hughes Incorporated		1,043		51,204
Boise Inc.		1,750		22,050
Cabot Oil & Gas Corporation		941		35,111
Cameron International Corporation (A)		807		47,078
CME Group Inc.		267		19,744
Cobalt International Energy, Inc. (A)		690		17,143
Concho Resources Inc. (A)		226		24,597
ConocoPhillips		155		10,802
Continental Resources, Inc. (A)		586		62,876
Dow Chemical Company (The)		1,249		47,973
Dresser-Rand Group Inc. (A)		334		20,829
Dril-Quip, Inc. (A)		226		25,974
Eastman Chemical Company		250		19,475

COMMON STOCKS (Continued)	Shares		Value
United States (Continued)
EOG Resources, Inc.		409	$	69,252
Fluor Corporation		157		11,119
FMC Technologies, Inc. (A)		759		42,042
Forum Energy Technologies, Inc. (A)		710		19,176
Freeport-McMoRan Copper & Gold Inc., Class B		2,250		74,430
Gulfport Energy Corporation (A)		362		23,275
Halliburton Company		2,185		105,211
Hess Corporation		137		10,576
Laredo Petroleum Holdings, Inc. (A)		466		13,823
MarkWest Energy Partners, L.P.		149		10,788
Monsanto Company		378		39,488
National Oilwell Varco, Inc.		841		65,706
Noble Energy, Inc.		811		54,372
Oasis Petroleum LLC (A)		468		22,976
Occidental Petroleum Corporation		250		23,385
Petroleum Development Corporation (A)		203		12,072
Pioneer Natural Resources Company		318		60,010
PPG Industries, Inc.		64		10,633
Schlumberger Limited		1,150		101,614
Southwestern Energy Company (A)		1,006		36,615
Superior Energy Services, Inc. (A)		1,600		40,064
Williams Companies, Inc. (The)		1,250		45,450
				1,386,770
TOTAL COMMON STOCKS – 93.8%			$	1,845,979
(Cost: $1,592,052)
PREFERRED STOCKS
United States – 0.0%
Konarka Technologies, Inc., 8.000% Cumulative (A)(B)		3,500		—
TOTAL PREFERRED STOCKS – 0.0%			$	—
(Cost: $10,850)

PURCHASED OPTIONS	Number of Contracts (Unrounded)		Value
Cameron International Corporation, Call $50.00, Expires 11–16–13		8,000	$	7,120
Market Vectors Gold Miners ETF, Call $24.00, Expires 12–21–13		25,000		6,575
Occidental Petroleum Corporation, Call $60.00, Expires 11–16–13		9,000		30,128
Schlumberger Limited, Call $55.00, Expires 11–16–13		10,500		35,306
TOTAL PURCHASED OPTIONS – 4.0%			$	79,129
(Cost: $73,237)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 0.7%
Air Products and Chemicals, Inc., 0.070%, 10–3–13 (C)	$	10,000		10,000
St. Jude Medical, Inc.,
0.150%, 10–15–13 (C)		4,000		4,000
				14,000
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (D)		1,467		1,467
TOTAL SHORT-TERM SECURITIES – 0.8%			$	15,467
(Cost: $15,467)
TOTAL INVESTMENT SECURITIES – 98.6%			$	1,940,575
(Cost: $1,691,606)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.4%				26,781
NET ASSETS – 100.0%			$	1,967,356

32 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Natural Resources Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Restricted security. At September 30, 2013, the Fund owned the following restricted security:

Security	Acquisition Date(s)	Shares	Cost		Market Value
Konarka Technologies, Inc., 8.000% Cumulative	8–31–07	3,500	$	10,850	$	—

The total value of this security represented 0.0% of net assets at September 30, 2013.

(C) Rate shown is the yield to maturity at September 30, 2013.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	British Pound	State Street Global Markets		6,950		10–23–13	$	—	$	106
Sell	British Pound	Societe Generale Bank		53,070		10–23–13		—		786
Sell	Canadian Dollar	State Street Global Markets		16,815		10–23–13		83		—
Sell	Canadian Dollar	Societe Generale Bank		70,040		10–23–13		378		—
Sell	South Korean Won	Societe Generale Bank		21,150,000		10–23–13		19		—
							$	480	$	892

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Energy	$	1,260,141	$	—	$	—
Financials		19,744		—		—
Industrials		45,437		—		—
Materials		520,657		—		—	*
Total Common Stocks	$	1,845,979	$	—	$	—	*
Purchased Options		6,575		72,554		—
Short-Term Securities		—		15,467		—
Total	$	1,852,554	$	88,021	$	—	*
Forward Foreign Currency Contracts	$	—	$	480	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	892	$	—

There were no transfers between any levels during the period ended September 30, 2013.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Energy	63.9%
Materials	26.5%
Industrials	2.4%
Financials	1.0%
Other+	6.2%

+ Includes options, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 33

PORTFOLIO HIGHLIGHTS

Ivy Global Real Estate Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	96.9%
Financials	96.5%
Telecommunication Services	0.4%
Cash and Cash Equivalents	3.1%

Country Weightings

North America	49.6%
United States	46.3%
Other North America	3.3%
Pacific Basin	32.0%
Japan	13.8%
Hong Kong	7.1%
Australia	7.1%
Singapore	3.6%
Other Pacific Basin	0.4%
Europe	13.0%
France	4.3%
United Kingdom	3.8%
Other Europe	4.9%
Bahamas/Caribbean	2.3%
Cash and Cash Equivalents	3.1%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Simon Property Group, Inc.	United States	Financials	Retail REITs
Mitsubishi Estate Co., Ltd.	Japan	Financials	Real Estate Management & Development
Mitsui Fudosan Co., Ltd.	Japan	Financials	Real Estate Management & Development
AvalonBay Communities, Inc.	United States	Financials	Residential REITs
Boston Properties, Inc.	United States	Financials	Office REITs
Equity Residential	United States	Financials	Residential REITs
Unibail-Rodamco	France	Financials	Retail REITs
Westfield Group	Australia	Financials	Retail REITs
HCP, Inc.	United States	Financials	Specialized REITs
Public Storage, Inc.	United States	Financials	Specialized REITs

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

34 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Real Estate Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares			Value
Australia – 7.1%
DEXUS Property Group		321		$	302
GPT Group		67			216
Investa Office Fund		38			103
Mirvac Group		147			238
Westfield Group		60			616
					1,475
Belgium – 0.4%
Befimmo NV/SA		1			79
Bermuda – 2.3%
Hongkong Land Holdings Limited		41			270
Kerry Properties Limited		49			209
					479
Canada – 3.3%
Brookfield Canada Office Properties		1			20
Calloway Real Estate Investment Trust		3			80
Canadian Apartments Properties Real Estate Investment Trust		4			161
Canadian Real Estate Investement Trust		3			61
Dundee Real Estate Investment Trust		3			77
First Capital Realty Inc.		7			113
H&R Real Estate Investment Trust		2			40
Northern Property Real Estate Investment Trust		1			20
RioCan Real Estate Investment Trust		5			115
					687
China – 0.4%
China Resources Land Limited (A)		32			91
Finland – 0.4%
Sponda plc		15			77
France – 4.3%
Gecina		1			86
Icade		1			101
Mercialys S.A.		4			82
Unibail-Rodamco		3			630
					899
Germany – 1.4%
alstria office REIT-AG		2			25
Deutsche Annington Immobilien SE (A)		—	*		3
Deutsche EuroShop AG		2			77
Deutsche Wohnen AG		1			21
LEG Immobilien AG		3			157
					283
Hong Kong – 7.1%
China Overseas Land & Investment Limited		13			38

COMMON STOCKS (Continued)	Shares			Value
Hong Kong (Continued)
Great Eagle Holdings Limited		10		$	36
Hysan Development Company Limited		39			174
Sino Land Company Limited		90			133
Sun Hung Kai Properties Limited		17			231
Swire Properties Limited		115			323
Wharf (Holdings) Limited (The)		61			528
					1,463
Japan – 13.8%
GLP J-REIT		—	*		227
Mitsubishi Estate Co., Ltd.		37			1,090
Mitsui Fudosan Co., Ltd.		26			872
Nippon Building Fund Inc.		—	*		298
Nippon Prologis REIT, Inc.		—	*		269
Nomura Real Estate Master Fund, Inc.		—	*		98
					2,854
Jersey – 0.1%
Atrium European Real Estate Limited		5			31
Netherlands – 1.0%
Corio N.V.		2			86
Wereldhave N.V.		2			115
					201
Singapore – 3.6%
CapitaCommercial Trust		84			97
CapitaLand Limited		74			182
CapitaMall Trust		40			62
Global Logistic Properties Limited		79			182
Keppel Land Limited		23			65
Mapletree Investments Pte Ltd		61			66
Suntec Real Estate Investment Trust		77			100
					754
Sweden – 0.5%
Wihlborgs Fastigheter AB		6			97
Switzerland – 1.1%
PSP Swiss Property Ltd, Registered Shares		3			221
United Kingdom – 3.8%
British Land Company plc (The) (A)		24			223
Derwent London plc		3			97
Hammerson plc		17			139
Land Securities Group plc		7			104
Metric Property Investments plc		45			87
SEGRO plc		14			69
Shaftesbury plc		8			75
					794

COMMON STOCKS (Continued)	Shares		Value
United States – 46.3%
Alexandria Real Estate Equities, Inc.		4	$	245
American Tower Corporation, Class A		1		84
AvalonBay Communities, Inc.		6		819
BioMed Realty Trust, Inc.		4		68
Boston Properties, Inc.		7		783
CBL & Associates Properties, Inc.		9		172
Corporate Office Properties Trust		3		69
DDR Corp.		10		159
DiamondRock Hospitality Company		15		160
Duke Realty Corporation		12		178
DuPont Fabros Technology, Inc.		2		51
Equity One, Inc.		3		68
Equity Residential		15		778
Extra Space Storage Inc.		2		75
Federal Realty Investment Trust		3		291
General Growth Properties, Inc.		16		316
HCP, Inc.		15		614
Host Hotels & Resorts, Inc.		20		361
LaSalle Hotel Properties		8		217
ProLogis		6		226
Public Storage, Inc.		3		561
Rexford Industrial Realty, Inc. (A)		1		18
Simon Property Group, Inc.		9		1,339
SL Green Realty Corp.		2		178
Tanger Factory Outlet Centers, Inc.		3		82
Taubman Centers, Inc.		3		198
Terreno Realty Corporation		1		16
UDR, Inc.		18		420
Ventas, Inc.		8		502
Vornado Realty Trust		5		450
Weingarten Realty Investors		3		93
				9,591
TOTAL COMMON STOCKS – 96.9%			$	20,076
(Cost: $20,456)

2013 SEMIANNUAL REPORT 35

SCHEDULE OF INVESTMENTS

Ivy Global Real Estate Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Master Note – 2.2%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (B)	$	448	$	448
TOTAL SHORT-TERM SECURITIES – 2.2%			$	448
(Cost: $448)
TOTAL INVESTMENT SECURITIES – 99.1%			$	20,524
(Cost: $20,904)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9%				195
NET ASSETS – 100.0%			$	20,719

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Financials	$	19,992	$	—	$	—
Telecommunication Services		84		—		—
Total Common Stocks	$	20,076	$	—	$	—
Short-Term Securities		—		448		—
Total	$	20,076	$	448	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trusts

Market Sector Diversification
(as a % of net assets)
Financials	96.5%
Telecommunication Services	0.4%
Other+	3.1%

+ Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

36 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Global Risk-Managed Real Estate Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	98.4%
Financials	98.4%
Cash and Cash Equivalents	1.6%

Country Weightings

North America	49.9%
United States	46.5%
Other North America	3.4%
Pacific Basin	32.9%
Japan	14.3%
Australia	7.2%
Hong Kong	6.5%
Singapore	4.9%
Europe	13.0%
United Kingdom	3.9%
Germany	3.6%
Other Europe	5.5%
Bahamas/Caribbean	2.6%
Cash and Cash Equivalents	1.6%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Simon Property Group, Inc.	United States	Financials	Retail REITs
AvalonBay Communities, Inc.	United States	Financials	Residential REITs
Boston Properties, Inc.	United States	Financials	Office REITs
Public Storage, Inc.	United States	Financials	Specialized REITs
Nippon Building Fund Inc.	Japan	Financials	Office REITs
HCP, Inc.	United States	Financials	Specialized REITs
Equity Residential	United States	Financials	Residential REITs
Nippon Prologis REIT, Inc.	Japan	Financials	Industrial REITs
GLP J-REIT	Japan	Financials	Industrial REITs
Westfield Group	Australia	Financials	Retail REITs

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

2013 SEMIANNUAL REPORT 37

SCHEDULE OF INVESTMENTS

Ivy Global Risk-Managed Real Estate Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares			Value
Australia – 7.2%
DEXUS Property Group		426		$	400
GPT Group		118			384
Investa Office Fund		69			191
Westfield Group		88			903
Westfield Retail Trust		141			391
					2,269
Bermuda – 2.6%
Hongkong Land Holdings Limited		122			802
Canada – 3.4%
Boardwalk Real Estate Investment Trust		1			77
Brookfield Canada Office Properties		5			117
Calloway Real Estate Investment Trust		7			174
Canadian Apartments Properties Real Estate Investment Trust		8			309
Dundee Real Estate Investment Trust		4			110
RioCan Real Estate Investment Trust		12			282
					1,069
France – 1.6%
Unibail-Rodamco		2			505
Germany – 3.6%
alstria office REIT-AG		33			416
Deutsche EuroShop AG		10			424
Deutsche Wohnen AG		16			285
					1,125
Hong Kong – 6.5%
Hysan Development Company Limited		131			584
Link Real Estate Investment Trust (The)		112			547
Swire Properties Limited		321			901
					2,032
Japan – 14.3%
GLP J-REIT		1			931
Japan Real Estate Investment Corporation		—	*		818
MORI TRUST Sogo Reit, Inc.		—	*		382

COMMON STOCKS (Continued)	Shares			Value
Japan (Continued)
Nippon Building Fund Inc.		—	*	$	1,153
Nippon Prologis REIT, Inc.		—	*		938
Nomura Real Estate Master Fund, Inc.		—	*		271
					4,493
Jersey – 0.9%
Atrium European Real Estate Limited		49			279
Netherlands – 1.4%
Wereldhave N.V.		6			440
Singapore – 4.9%
CapitaCommercial Trust		385			446
Fortune Real Estate Investment Trust		401			331
Mapletree Investments Pte Ltd		395			425
Suntec Real Estate Investment Trust		255			332
					1,534
Switzerland – 1.6%
PSP Swiss Property Ltd, Registered Shares		6			510
United Kingdom – 3.9%
Derwent London plc		8			304
Hammerson plc		45			364
Land Securities Group plc		17			246
Shaftesbury plc		32			305
					1,219
United States – 46.5%
Alexandria Real Estate Equities, Inc.		5			298
American Campus Communities, Inc.		11			386
AvalonBay Communities, Inc.		10			1,239
BioMed Realty Trust, Inc.		11			212
Boston Properties, Inc.		12			1,230
Douglas Emmett, Inc.		7			155
EastGroup Properties, Inc.		3			164
Equity One, Inc.		11			245
Equity Residential		19			1,039
Extra Space Storage Inc.		3			134

COMMON STOCKS (Continued)	Shares		Value
United States (Continued)
Federal Realty Investment Trust		8	$	776
HCP, Inc.		26		1,061
Home Properties, Inc.		2		134
Liberty Property Trust		6		222
Macerich Company (The)		5		306
ProLogis		7		262
Public Storage, Inc.		7		1,195
Simon Property Group, Inc.		14		2,137
Tanger Factory Outlet Centers, Inc.		6		202
Taubman Centers, Inc.		13		853
Terreno Realty Corporation		8		135
UDR, Inc.		23		534
Ventas, Inc.		13		825
Vornado Realty Trust		5		417
Washington Real Estate Investment Trust		13		318
Weingarten Realty Investors		4		123
				14,602
TOTAL COMMON STOCKS – 98.4%			$	30,879
(Cost: $32,366)
SHORT-TERM SECURITIES	Principal
Master Note – 0.4%
Toyota Motor Credit Corporation,
0.100%, 10–213 (A)	$	138		138
TOTAL SHORT-TERM SECURITIES – 0.4%			$	138
(Cost: $138)
TOTAL INVESTMENT SECURITIES – 98.8%			$	31,017
(Cost: $32,504)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.2%				385
NET ASSETS – 100.0%			$	31,402

Notes to Schedule of Investments

* Not shown due to rounding.

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

38 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Risk-Managed Real Estate Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Financials	$	30,879	$	—	$	—
Total Common Stocks	$	30,879	$	—	$	—
Short-Term Securities		—		138		—
Total	$	30,879	$	138	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

REIT = Real Estate Investment Trusts

Market Sector Diversification
(as a % of net assets)
Financials	98.4%
Other+	1.6%

+ Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 39

PORTFOLIO HIGHLIGHTS

Ivy Real Estate Securities Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	97.6%
Financials	92.3%
Consumer Discretionary	1.9%
Telecommunication Services	1.9%
Health Care	0.8%
Industrials	0.6%
Transportation	0.1%
Cash and Cash Equivalents	2.4%

Lipper Rankings

Category: Lipper Real Estate Funds	Rank	Percentile
1 Year	167/242	69
3 Year	168/204	82
5 Year	136/178	76
10 Year	75/109	69

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

Top 10 Equity Holdings

Company	Sector	Industry
Simon Property Group, Inc.	Financials	Retail REITs
Public Storage, Inc.	Financials	Specialized REITs
ProLogis	Financials	Industrial REITs
Boston Properties, Inc.	Financials	Office REITs
Equity Residential	Financials	Residential REITs
AvalonBay Communities, Inc.	Financials	Residential REITs
Ventas, Inc.	Financials	Specialized REITs
HCP, Inc.	Financials	Specialized REITs
Host Hotels & Resorts, Inc.	Financials	Specialized REITs
Health Care REIT, Inc.	Financials	Specialized REITs

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

40 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Real Estate Securities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Airport Services – 0.1%
Macquarie Infrastructure Company Trust		8	$	439
Diversified REITs – 2.2%
Spirit Realty Capital, Inc.		263		2,416
Vornado Realty Trust		113		9,466
				11,882
Health Care Facilities – 0.8%
Brookdale Senior Living, Inc. (A)		156		4,103
Homebuilding – 1.3%
Lennar Corporation (B)		50		1,781
Toll Brothers, Inc. (A)		89		2,895
WCI Communities, Inc. (A)		128		2,201
				6,877
Hotels, Resorts & Cruise Lines – 0.6%
Starwood Hotels & Resorts Worldwide, Inc.		50		3,303
Industrial REITs – 5.5%
EastGroup Properties, Inc.		90		5,299
ProLogis		595		22,390
Pure Industrial Real Estate Trust (C)		374		1,606
				29,295
Investment Banking & Brokerage – 0.2%
Direxion Daily Real Estate Bull 3X Shares Fund		30		1,171
Mortgage REITs – 1.2%
Colony Financial, Inc.		180		3,595
Starwood Property Trust, Inc.		110		2,646
				6,241
Office REITs – 12.4%
BioMed Realty Trust, Inc.		379		7,040
Boston Properties, Inc.		204		21,754
Duke Realty Corporation		515		7,950
Hudson Pacific Properties, Inc.		259		5,047
Kilroy Realty Corporation		151		7,557
Parkway Properties, Inc.		343		6,097
SL Green Realty Corp.		114		10,140
				65,585
Office Services & Supplies – 0.6%
CyrusOne Inc.		167		3,172
Real Estate Operating Companies – 1.0%
Forest City Enterprises, Inc., Class A (A)		287		5,430
Residential REITs – 17.8%
American Campus Communities, Inc.		178		6,070
Apartment Investment and Management Company, Class A		201		5,623

COMMON STOCKS (Continued)	Shares		Value
Residential REITs (Continued)
AvalonBay Communities, Inc.		157	$	19,890
Boardwalk Real Estate Investment Trust (C)		59		3,311
Camden Property Trust		171		10,531
Campus Crest Communities, Inc.		180		1,939
Colonial Properties Trust		89		2,003
Equity Residential		390		20,891
Essex Property Trust, Inc.		77		11,310
Mid-America Apartment Communities, Inc.		120		7,478
Post Properties		123		5,548
				94,594
Retail REITs – 26.6%
Acadia Realty Trust		237		5,855
Agree Realty Corporation		126		3,789
AmREIT, Inc., Class B		111		1,928
CBL & Associates Properties, Inc.		320		6,120
DDR Corp.		605		9,506
Equity One, Inc.		126		2,752
Federal Realty Investment Trust		55		5,599
General Growth Properties, Inc.		621		11,980
Kimco Realty Corporation		385		7,768
Kite Realty Group Trust		647		3,838
Macerich Company (The)		190		10,709
RioCan Real Estate Investment Trust (C)		225		5,296
Simon Property Group, Inc.		354		52,500
Tanger Factory Outlet Centers, Inc.		246		8,022
Taubman Centers, Inc.		84		5,674
Weingarten Realty Investors		18		534
				141,870
Specialized REITs – 23.0%
CubeSmart		412		7,358
Extra Space Storage Inc.		99		4,548
HCP, Inc.		381		15,594
Health Care REIT, Inc.		233		14,528
Hersha Hospitality Trust		487		2,720
Host Hotels & Resorts, Inc.		863		15,247
LaSalle Hotel Properties		111		3,173
Plum Creek Timber Company, Inc.		24		1,133
Public Storage, Inc.		148		23,825
Rayonier Inc.		48		2,682
Sovran Self Storage, Inc.		48		3,648
Summit Hotel Properties, Inc.		554		5,094
Sunstone Hotel Investors, Inc.		367		4,669
Ventas, Inc.		288		17,698
				121,917

COMMON STOCKS (Continued)	Shares		Value
Wireless Telecommunication Service – 1.9%
American Tower Corporation, Class A		80	$	5,945
SBA Communications Corporation (A)		50		4,023
				9,968
TOTAL COMMON STOCKS – 95.2%			$	505,847
(Cost: $385,606)
PREFERRED STOCKS
Office REITs – 2.0%
Digital Realty Trust, Inc., Series E, 7.000%		191		10,120
Specialized REITs – 0.4%
Pebblebrook Hotel Trust, Series B, 8.000%		92		2,363
TOTAL PREFERRED STOCKS – 2.4%			$	12,483
(Cost: $11,915)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 0.9%
McCormick & Co. Inc., 0.160%, 10–1–13 (D)	$	3,000		3,000
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (D)		2,000		2,000
				5,000
Master Note – 1.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (E)		5,652		5,652
TOTAL SHORT-TERM SECURITIES – 2.0%			$	10,652
(Cost: $10,652)
TOTAL INVESTMENT SECURITIES – 99.6%			$	528,982
(Cost: $408,173)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.4%				1,916
NET ASSETS – 100.0%			$	530,898

2013 SEMIANNUAL REPORT 41

SCHEDULE OF INVESTMENTS

Ivy Real Estate Securities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) All or a portion of the security position is held in collateralized accounts to cover potential obligations with respect to outstanding written options.

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

(D) Rate shown is the yield to maturity at September 30, 2013.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type		Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Lennar Corporation	N/A		Call		252		October 2013	$	39.00	$	11	$	(5	)
	N/A		Call		111		October 2013		40.00		9		(1	)
										$	20	$	(6	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	505,847	$	—	$	—
Preferred Stocks		12,483		—		—
Short-Term Securities		—		10,652		—
Total	$	518,330	$	10,652	$	—
Liabilities
Written Options	$	6	$	—	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

OTC = Over the Counter

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

42 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Science and Technology Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	90.8%
Information Technology	62.4%
Health Care	17.2%
Industrials	4.8%
Consumer Discretionary	2.3%
Materials	2.1%
Telecommunication Services	1.5%
Consumer Staples	0.5%
Warrants	0.0%
Bonds	0.8%
Corporate Debt Securities	0.8%
Cash and Cash Equivalents	8.4%

Lipper Rankings

Category: Lipper Science & Technology Funds	Rank	Percentile
1 Year	13/152	9
3 Year	9/149	6
5 Year	26/136	19
10 Year	3/103	3

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

Country Weightings

North America	78.4%
United States	78.4%
Pacific Basin	6.1%
Europe	3.8%
Bahamas/Caribbean	1.7%
South America	1.6%
Cash and Cash Equivalents	8.4%

Top 10 Equity Holdings

Company	Sector	Industry
Micron Technology, Inc.	Information Technology	Semiconductors
Cree, Inc.	Information Technology	Semiconductors
Alliance Data Systems Corporation	Information Technology	Data Processing & Outsourced Services
Aspen Technology, Inc.	Information Technology	Application Software
Microsoft Corporation	Information Technology	Systems Software
Acxiom Corporation	Information Technology	IT Consulting & Other Services
Facebook, Inc., Class A	Information Technology	Internet Software & Services
Vertex Pharmaceuticals Incorporated	Health Care	Biotechnology
Google Inc., Class A	Information Technology	Internet Software & Services
UnitedHealth Group Incorporated	Health Care	Managed Health Care

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

2013 SEMIANNUAL REPORT 43

SCHEDULE OF INVESTMENTS

Ivy Science and Technology Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Agricultural Products – 0.5%
Darling International Inc. (A)		812	$	17,180
Application Software – 7.3%
ACI Worldwide, Inc. (A)		1,637		88,513
Aspen Technology, Inc. (A)		4,250		146,853
Silver Spring Networks, Inc. (A)		1,296		22,465
				257,831
Biotechnology – 7.2%
ARIAD Pharmaceuticals, Inc. (A)		2,652		48,797
bluebird bio, Inc. (A)		435		11,730
Isis Pharmaceuticals, Inc. (A)		1,948		73,113
Vertex Pharmaceuticals Incorporated (A)		1,533		116,232
				249,872
Commodity Chemicals – 0.2%
BioAmber Inc. (A)(B)		1,352		6,625
Communications Equipment – 2.0%
Cisco Systems, Inc.		3,016		70,625
Computer Hardware – 1.7%
Apple Inc.		126		60,071
Construction & Engineering – 0.3%
Abengoa, S.A., Class B (C)		3,415		9,932
Consumer Electronics – 1.7%
Harman International Industries, Incorporated		899		59,541
Data Processing & Outsourced Services – 9.8%
Alliance Data Systems Corporation (A)		793		167,716
Euronet Worldwide, Inc. (A)		1,810		72,044
EVERTEC, Inc.		875		19,432
QIWI plc, ADR		836		26,146
WNS (Holdings) Limited, ADR (A)(B)		2,896		61,450
				346,788
Electronic Components – 1.2%
Universal Display Corporation (A)		1,367		43,779
Electronic Equipment & Instruments – 0.9%
Itron, Inc. (A)		709		30,349
Fertilizers & Agricultural Chemicals – 1.9%
Marrone Bio Innovations, Inc. (A)		460		7,758
Monsanto Company		580		60,503
				68,261

COMMON STOCKS (Continued)	Shares		Value
Health Care Equipment – 2.7%
Boston Scientific Corporation (A)		4,382	$	51,439
Volcano Corporation (A)		1,880		44,974
				96,413
Health Care Facilities – 1.1%
Hologic, Inc. (A)		1,895		39,132
Health Care Services – 0.6%
Envision Healthcare Holdings, Inc. (A)		194		5,055
Fleury S.A. (C)		2,165		17,640
				22,695
Health Care Technology – 1.9%
Cerner Corporation (A)		1,288		67,684
Industrial Machinery – 4.0%
ESCO Technologies Inc. (B)		1,411		46,881
Pentair, Inc.		1,481		96,196
				143,077
Integrated Telecommunication Services – 1.5%
China Unicom Limited (C)		22,150		34,556
Windstream Corporation		2,531		20,250
				54,806
Internet Software & Services – 6.8%
21Vianet Group, Inc., ADR (A)		856		14,117
Facebook, Inc., Class A (A)		2,318		116,477
Google Inc., Class A (A)		125		109,401
				239,995
IT Consulting & Other Services – 6.9%
Acxiom Corporation (A)(B)		4,106		116,572
EPAM Systems, Inc. (A)		987		34,055
iGATE Corporation (A)		2,758		76,570
Leidos Holdings, Inc.		14		617
SK C&C Co., Ltd. (C)		165		17,640
				245,454
Managed Health Care – 3.6%
Odontoprev S.A. (C)		5,255		23,214
UnitedHealth Group Incorporated		1,473		105,467
				128,681
Movies & Entertainment – 0.6%
News Corporation Limited, Class A		672		22,525
Office Services & Supplies – 0.1%
CyrusOne Inc.		144		2,733

COMMON STOCKS (Continued)	Shares		Value
Pharmaceuticals – 0.1%
Shire Pharmaceuticals Group plc, ADR		16	$	1,906
Research & Consulting Services – 0.4%
Qualicorp S.A. (A)(C)		1,507		13,705
Semiconductor Equipment – 1.7%
Applied Materials, Inc.		1,509		26,470
Nanometrics Incorporated (A)		1,046		16,861
Photronics, Inc. (A)		1,983		15,529
				58,860
Semiconductors – 20.4%
Cree, Inc. (A)		3,123		187,966
Cypress Semiconductor Corporation		4,194		39,170
Marvell Technology Group Ltd.		3,772		43,378
Micron Technology, Inc. (A)		16,637		290,642
Microsemi Corporation (A)		1,857		45,042
Rambus Inc. (A)		2,381		22,380
Samsung Electronics Co., Ltd. (C)		71		90,694
Spansion Inc. (A)		326		3,293
				722,565
Systems Software – 3.7%
Microsoft Corporation		3,922		130,628
TOTAL COMMON STOCKS – 90.8%			$	3,211,713
(Cost: $2,223,422)
WARRANTS
Commodity Chemicals – 0.0%
BioAmber Inc., Expires 5–9–17 (D)		1,126		901
TOTAL WARRANTS – 0.0%			$	901
(Cost: $132)
CORPORATE DEBT SECURITIES	Principal
Semiconductors – 0.8%
JinkoSolar Holding Co., Ltd., Convertible, 4.000%, 5–15–16 (E)	$	17,880		17,444
Rambus Inc., Convertible, 1.125%, 8–15–18 (E)		11,613		12,012
				29,456
TOTAL CORPORATE DEBT SECURITIES – 0.8%			$	29,456
(Cost: $27,483)

44 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Science and Technology Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 7.4%
Abbott Laboratories, 0.070%, 10–21–13 (F)	$	2,047	$	2,047
American Honda Finance Corp. (GTD by Honda Motor Co.), 0.170%, 11–8–13 (F)		5,000		4,999
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB):
0.170%, 10–15–13 (F)		5,000		5,000
0.180%, 11–4–13 (F)		2,500		2,500
Automatic Data Processing Inc., 0.050%, 10–2–13 (F)		15,000		15,000
Bemis Company, Inc.:
0.240%, 10–1–13 (F)		10,100		10,100
0.250%, 10–15–13 (F)		10,000		9,999
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited):
0.080%, 10–24–13 (F)		10,000		9,999
0.110%, 11–18–13 (F)		5,000		4,999
0.190%, 11–20–13 (F)		8,000		7,998
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.), 0.060%, 10–28–13 (F)		3,000		3,000
Clorox Company (The), 0.240%, 10–11–13 (F)		7,300		7,299
CVS Caremark Corporation:
0.180%, 10–7–13 (F)		5,000		5,000
0.290%, 12–3–13 (F)		5,000		4,997
Danaher Corporation,
0.090%, 10–25–13 (F)		18,129		18,128
Emerson Electric Co.,
0.070%, 11–21–13 (F)		3,000		3,000
Enbridge Inc.,
0.290%, 10–15–13 (F)		20,000		19,997
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), 0.080%, 10–18–13 (F)		10,000		10,000
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.):
0.180%, 10–3–13 (F)		9,000		9,000
0.170%, 10–16–13 (F)		10,000		9,999

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Hewlett-Packard Company:
0.380%, 10–21–13 (F)	$	7,000	$	6,998
0.350%, 10–22–13 (F)		5,000		4,999
John Deere Financial Inc. (GTD by John Deere Capital Corporation),
0.080%, 10–15–13 (F)		12,377		12,377
McCormick & Co. Inc., 0.160%, 10–1–13 (F)		3,000		3,000
Mondelez International, Inc., 0.220%, 10–8–13 (F)		3,562		3,562
Novartis Finance Corp. (GTD by Novartis AG), 0.050%, 10–2–13 (F)		3,000		3,000
St. Jude Medical, Inc.:
0.090%, 10–1–13 (F)		5,190		5,190
0.160%, 10–15–13 (F)		10,000		9,999
Straight–A Funding, LLC (GTD by Federal Financing Bank),
0.070%, 10–7–13 (F)		10,000		10,000
Toronto-Dominion Holdings USA Inc. (GTD by Toronto Dominion Bank), 0.100%, 10–18–13 (F)		5,001		5,001
Verizon Communications Inc., 0.210%, 10–21–13 (F)		9,000		8,999
Virginia Electric and Power Company:
0.250%, 10–8–13 (F)		5,000		5,000
0.260%, 10–11–13 (F)		10,000		9,999
0.260%, 10–16–13 (F)		5,000		4,999
Wal–Mart Stores, Inc., 0.070%, 10–16–13 (F)		7,000		7,000
				263,184
Municipal Obligations – Taxable – 0.5%
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank, N.A.), 0.050%, 10–7–13 (G)		1,000		1,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations – Taxable (Continued)
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007D (GTD by Chevron Corporation), 0.060%, 10–1–13 (G)	$	1,825	$	1,825
MS Business Fin Corp, Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron U.S.A. Inc. Proj), Ser E (GTD by Chevron Corporation), 0.050%, 10–1–13 (G)		1,415		1,415
NY Hsng Fin Agy, Clinton Park Phase II Hsng Rev Bonds, Ser 2011 A-1 (GTD by Wells Fargo Bank, N.A.), 0.050%, 10–7–13 (G)		916		916
NYC GO Bonds, Fiscal 2008 Series L-4, 0.060%, 10–1–13 (G)		11,000		11,000
				16,156
TOTAL SHORT-TERM SECURITIES – 7.9%			$	279,340
(Cost: $279,342)
TOTAL INVESTMENT SECURITIES – 99.5%			$	3,521,410
(Cost: $2,530,379)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.5%				18,244
NET ASSETS – 100.0%			$	3,539,654

Notes to Schedule of Investments

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

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

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

(D) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(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. At September 30, 2013, the total value of these securities amounted to $29,456 or 0.8% of net assets.

(F) Rate shown is the yield to maturity at September 30, 2013.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

2013 SEMIANNUAL REPORT 45

SCHEDULE OF INVESTMENTS

Ivy Science and Technology Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	82,066	$	—	$	—
Consumer Staples		17,180		—		—
Health Care		606,383		—		—
Industrials		169,447		—		—
Information Technology		2,206,945		—		—
Materials		74,886		—		—
Telecommunication Services		54,806		—		—
Total Common Stocks	$	3,211,713	$	—	$	—
Warrants		901		—		—
Corporate Debt Securities		—		29,456		—
Short-Term Securities		—		279,340		—
Total	$	3,212,614	$	308,796	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

Country Diversification
(as a % of net assets)
United States	78.4%
South Korea	3.1%
Switzerland	2.7%
India	1.7%
Brazil	1.6%
China	1.3%
Bermuda	1.2%
Other Countries	1.6%
Other+	8.4%

+ Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

46 SEMIANNUAL REPORT 2013

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Asset Strategy Fund(1)			Ivy Asset Strategy New Opportunities Fund(1)			Ivy Balanced Fund		Ivy Energy Fund			Ivy Global Natural Resources Fund			Ivy Global Real Estate Fund			Ivy Global Risk-Managed Real  Estate Fund
ASSETS
Investments in unaffiliated securities at value+	$	25,774,683		$	221,945		$	1,338,443	$	167,902		$	1,940,575		$	20,524		$	31,017
Investments in affiliated securities at value+		2,480,585			—			—		—			—			—			—
Bullion at value+		2,442,889			18,571			—		—			—			—			—
Investments at Value	��	30,698,157			240,516			1,338,443		167,902			1,940,575			20,524			31,017
Cash		110,467			7,500			1		1			1			1			1
Cash denominated in foreign currencies at value+		1,759			4,351			—		—			—			173			87
Restricted cash+		6,522			6			—		—			—			—			—
Investment securities sold receivable		48,622			834			—		—			63,114			90			211
Dividends and interest receivable		112,833			136			2,336		93			2,697			60			114
Capital shares sold receivable		73,054			475			10,052		1,744			1,304			100			25
Receivable from affiliates		249			252			—		9			29			91			53
Unrealized appreciation on forward foreign currency contracts		—			—			—		—			480			—			—
Prepaid and other assets		639			37			84		39			593			58			58
Total Assets		31,052,302			254,107			1,350,916		169,788			2,008,793			21,097			31,566
LIABILITIES
Investment securities purchased payable		250,674			1,895			2,795		8,257			32,563			364			143
Capital shares redeemed payable		37,647			729			1,498		398			6,033			1			9
Trustees and Chief Compliance Officer fees payable		1,003			5			29		4			589			—	*		—	*
Distribution and service fees payable		332			2			18		1			20			—	*		—	*
Shareholder servicing fee payable		6,888			126			236		59			1,150			5			5
Investment management fee payable		469			7			25		4			47			1			1
Accounting services fee payable		22			8			25		6			23			1			2
Unrealized depreciation on forward foreign currency contracts		34,116			55			—		—			892			—			—
Variation margin payable		15,686			—			—		—			—			—			—
Written options at value+		45,432			27			—		—			—			—			—
Other liabilities		811			30			14		7			120			6			4
Total Liabilities		393,080			2,884			4,640		8,736			41,437			378			164
Total Net Assets	$	30,659,222		$	251,223		$	1,346,276	$	161,052		$	1,967,356		$	20,719		$	31,402
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	24,540,011		$	312,308		$	1,131,249	$	124,601		$	3,888,624		$	21,173		$	32,991
Undistributed (distributions in excess of) net investment income		140,844			(3,243	)		1,037		(475	)		(11,325	)		72			162
Accumulated net realized gain (loss)		(1,203,066	)		(85,935	)		29,049		(15,857	)		(2,158,540	)		(147	)		(264	)
Net unrealized appreciation (depreciation)		7,181,433			28,093			184,941		52,783			248,597			(379	)		(1,487	)
Total Net Assets	$	30,659,222		$	251,223		$	1,346,276	$	161,052		$	1,967,356		$	20,719		$	31,402
CAPITAL SHARES OUTSTANDING:
Class A		286,887			14,957			27,832		7,079			62,199			1,741			1,623
Class B		26,684			461			2,644		338			3,297			24			101
Class C		311,273			3,829			16,854		1,756			21,793			54			216
Class E		2,219			10			7		10			364			N/A			N/A
Class I		375,723			3,620			6,028		598			15,529			208			857
Class R		4,666			57			24		72			2,536			40			200
Class Y		43,606			753			4,730		903			7,879			60			300
NET ASSET VALUE PER SHARE:
Class A		$29.36			$10.65			$23.22		$15.09			$17.80			$9.74			$9.53
Class B		$28.34			$10.35			$23.00		$14.19			$15.63			$9.69			$9.49
Class C		$28.48			$10.39			$23.07		$14.36			$15.23			$9.69			$9.49
Class E		$29.42			$10.64			$23.31		$15.31			$18.05			N/A			N/A
Class I		$29.62			$10.70			$23.20		$15.44			$18.28			$9.73			$9.53
Class R		$29.19			$10.53			$23.20		$15.07			$17.62			$9.70			$9.50
Class Y		$29.41			$10.64			$23.22		$15.23			$18.08			$9.80			$9.54
+COST
Investments in unaffiliated securities at cost	$	20,341,111		$	192,701		$	1,153,502	$	115,119		$	1,691,606		$	20,904		$	32,504
Investments in affiliated securities at cost		881,061			—			—		—			—			—			—
Bullion at cost		2,246,717			20,045			—		—			—			—			—
Cash denominated in foreign currencies at cost		1,699			4,044			—		—			—			173			87
Written options premiums received at cost		38,100			94			—		—			—			—			—

* Not shown due to rounding.

(1) Consolidated Statements of Assets and Liabilities (See Note 6 to Financial Statements).

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 47

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Real Estate Securities Fund			Ivy Science and Technology Fund
ASSETS
Investments in unaffiliated securities at value+	$	528,982		$	3,289,882
Investments in affiliated securities at value+		—			231,528
Investments at Value		528,982			3,521,410
Cash		1			262
Investment securities sold receivable		1,126			24,259
Dividends and interest receivable		1,718			1,601
Capital shares sold receivable		1,175			26,598
Receivable from affiliates		4			16
Prepaid and other assets		55			138
Total Assets		533,061			3,574,284
LIABILITIES
Investment securities purchased payable		1,205			25,770
Capital shares redeemed payable		612			7,894
Trustees and Chief Compliance Officer fees payable		73			100
Distribution and service fees payable		4			30
Shareholder servicing fee payable		219			678
Investment management fee payable		12			79
Accounting services fee payable		12			23
Written options at value+		6			—
Other liabilities		20			56
Total Liabilities		2,163			34,630
Total Net Assets	$	530,898		$	3,539,654
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	439,072		$	2,420,509
Undistributed (distributions in excess of) net investment income		1,053			(12,923	)
Accumulated net realized gain (loss)		(30,050	)		141,036
Net unrealized appreciation		120,823			991,032
Total Net Assets	$	530,898		$	3,539,654
CAPITAL SHARES OUTSTANDING:
Class A		15,592			27,015
Class B		277			1,410
Class C		630			11,225
Class E		87			271
Class I		325			15,767
Class R		66			1,679
Class Y		6,621			16,412
NET ASSET VALUE PER SHARE:
Class A		$22.51			$47.56
Class B		$21.96			$41.58
Class C		$22.21			$42.87
Class E		$22.50			$47.48
Class I		$22.62			$51.15
Class R		$22.50			$47.05
Class Y		$22.52			$49.75
+COST
Investments in unaffiliated securities at cost	$	408,173		$	2,356,381
Investments in affiliated securities at cost		—			173,998
Written options premiums received at cost		20			—

See Accompanying Notes to Financial Statements.

48 SEMIANNUAL REPORT 2013

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Asset Strategy Fund(1)			Ivy Asset Strategy New Opportunities Fund(1)			Ivy Balanced Fund			Ivy Energy Fund			Ivy Global Natural Resources Fund			Ivy Global Real  Estate Fund(2)			Ivy Global Risk-Managed Real Estate Fund(2)
INVESTMENT INCOME
Dividends from unaffiliated securities	$	214,315		$	1,935		$	6,986		$	702		$	16,861		$	194		$	448
Dividends from affiliated securities		16,280			—			—			—			—			—			—
Foreign dividend withholding tax		(12,448	)		(232	)		(81	)		(17	)		(843	)		(10	)		(22	)
Interest and amortization from unaffiliated securities		68,961			55			2,417			3			55			—	*		—	*
Foreign interest withholding tax		(1	)		(1	)		—			—			—			—			—
Total Investment Income		287,107			1,757			9,322			688			16,073			184			426
EXPENSES
Investment management fee		81,153			1,345			3,681			566			9,556			61			138
Distribution and service fees:
Class A		10,039			207			638			114			1,506			12			16
Class B		3,643			26			258			22			285			1			5
Class C		42,482			225			1,543			107			1,782			3			10
Class E		77			—	*		—	*		—	*		8			N/A			N/A
Class R		319			2			1			1			113			1			5
Class Y		1,518			11			121			11			202			1			4
Shareholder servicing fee:
Class A		4,969			309			417			162			2,372			17			12
Class B		518			10			42			9			144			—	*		—	*
Class C		4,819			55			169			18			505			—	*		—	*
Class E		97			—	*		—	*		—	*		33			N/A			N/A
Class I		8,159			35			75			6			318			1			6
Class R		164			1			—	*		—	*		58			1			2
Class Y		955			7			75			7			135			—	*		2
Registration fees		372			43			82			55			70			54			55
Custodian fees		953			47			8			—	*		—	*		15			9
Trustees and Chief Compliance Officer fees		410			4			14			2			65			—	*		—	*
Accounting services fee		136			50			129			35			136			5			15
Professional fees		196			48			15			13			34			11			10
Other		976			25			50			8			116			13			14
Total Expenses		161,955			2,450			7,318			1,136			17,438			196			303
Less:
Expenses in excess of limit		(249	)		(252	)		—			(9	)		(29	)		(91	)		(53	)
Total Net Expenses		161,706			2,198			7,318			1,127			17,409			105			250
Net Investment Income (Loss)		125,401			(441	)		2,004			(439	)		(1,336	)		79			176
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		1,566,507			(3,365	)		20,033			805			120,568			(147	)		(264	)
Investments in affiliated securities		459,843			—			—			—			—			—			—
Futures contracts		(239,556	)		(1,822	)		—			—			(32,221	)		—			—
Written options		99,986			49			—			—			—			—			—
Forward foreign currency contracts		9,658			(450	)		—			—			1,940			—			—
Foreign currency exchange transactions		1,628			(389	)		4			—	*		(464	)		(7	)		(14	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(36,615	)		(3,402	)		55,428			13,163			(119,466	)		(380	)		(1,487	)
Investments in affiliated securities		461,200			—			—			—			—			—			—
Futures contracts		(7,101	)		—			—			—			4,946			—			—
Written options		(19,870	)		67			—			—			—			—			—
Forward foreign currency contracts		(33,774	)		(31	)		—			—			(5,798	)		—			—
Foreign currency exchange transactions		1,535			74			—			—	*		93			1			—	*
Net Realized and Unrealized Gain (Loss)		2,263,441			(9,269	)		75,465			13,968			(30,402	)		(533	)		(1,765	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	2,388,842		$	(9,710	)	$	77,469		$	13,529		$	(31,738	)	$	(454	)	$	(1,589	)

* Not shown due to rounding.

(1) Consolidated Statements of Operations (See Note 6 to Financial Statements).

(2) Period from April 1, 2013 (commencement of operations) to September 30, 2013.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 49

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Real Estate Securities Fund			Ivy Science and Technology Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	6,371		$	7,921
Dividends from affiliated securities		—			201
Foreign dividend withholding tax		(36	)		(102	)
Interest and amortization from unaffiliated securities		5			588
Total Investment Income		6,340			8,608
EXPENSES
Investment management fee		2,506			11,046
Distribution and service fees:
Class A		449			1,237
Class B		34			240
Class C		75			1,814
Class E		3			14
Class R		4			165
Class Y		206			841
Shareholder servicing fee:
Class A		781			905
Class B		25			53
Class C		29			273
Class E		9			33
Class I		6			409
Class R		3			85
Class Y		124			515
Registration fees		59			88
Custodian fees		7			46
Trustees and Chief Compliance Officer fees		11			35
Accounting services fee		79			136
Professional fees		21			24
Other		21			87
Total Expenses		4,452			18,046
Less:
Expenses in excess of limit		(282	)		(16	)
Total Net Expenses		4,170			18,030
Net Investment Income (Loss)		2,170			(9,422	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		7,651			91,289
Written options		5			—
Forward foreign currency contracts		—			2,983
Foreign currency exchange transactions		—	*		(14	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(36,960	)		355,252
Investments in affiliated securities		—			57,529
Written options		11			—
Forward foreign currency contracts		—			(2,238	)
Foreign currency exchange transactions		—	*		6
Net Realized and Unrealized Gain (Loss)		(29,293	)		504,807
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(27,123	)	$	495,385

See Accompanying Notes to Financial Statements.

50 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Asset Strategy Fund					Ivy Asset Strategy New Opportunities Fund						Ivy Balanced Fund
(In thousands)	Six months  ended 9-30-13 (Unaudited)(1)		Year ended 3-31-13			Six months  ended 9-30-13 (Unaudited)(1)			Year ended 3-31-13			Six months  ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	125,401	$	353,839		$	(441	)	$	2		$	2,004		$	4,329
Net realized gain (loss) on investments		1,898,066		2,278,525			(5,977	)		(13,351	)		20,037			14,207
Net change in unrealized appreciation (depreciation)		365,375		(461,326	)		(3,292	)		14,520			55,428			46,320
Net Increase (Decrease) in Net Assets Resulting from Operations		2,388,842		2,171,038			(9,710	)		1,171			77,469			64,856
Distributions to Shareholders From:
Net investment income:
Class A		—		(189,902	)		—			(995	)		(721	)		(2,294	)
Class B		—		(9,774	)		—			—			—			(90	)
Class C		—		(117,197	)		—			(12	)		—			(551	)
Class E		—		(1,329	)		—			(1	)		—	*		(1	)
Class I		—		(245,673	)		—			(417	)		(273	)		(533	)
Class R		—		(2,254	)		—			(2	)		—			—
Class Y		—		(29,096	)		—			(56	)		(131	)		(695	)
Net realized gains:
Class A		—		—			—			—			—			(2,200	)
Class B		—		—			—			—			—			(267	)
Class C		—		—			—			—			—			(1,424	)
Class E		—		—			—			—			—			(1	)
Class I		—		—			—			—			—			(389	)
Class R		—		—			—			—			—			—
Class Y		—		—			—			—			—			(643	)
Total Distributions to Shareholders		—		(595,225	)		—			(1,483	)		(1,125	)		(9,088	)
Capital Share Transactions		351,007		(285,857	)		(30,770	)		(92,102	)		426,162			322,776
Net Increase (Decrease) in Net Assets		2,739,849		1,289,956			(40,480	)		(92,414	)		502,506			378,544
Net Assets, Beginning of Period		27,919,373		26,629,417			291,703			384,117			843,770			465,226
Net Assets, End of Period	$	30,659,222	$	27,919,373		$	251,223		$	291,703		$	1,346,276		$	843,770
Undistributed (distributions in excess of) net investment income	$	140,844	$	13,815		$	(3,243	)	$	(2,413	)	$	1,037		$	154

* Not shown due to rounding.

(1) Consolidated Statements of Changes in Net Assets (See Note 6 to Financial Statements).

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 51

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Energy Fund						Ivy Global Natural Resources Fund						Ivy Global Real Estate Fund(1)			Ivy Global Risk-Managed Real Estate Fund(1)
(In thousands)	Six months  ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months  ended 9-30-13 (Unaudited)			Year ended 3-31-13			Period from 4-1-2013 to 9-30-13 (Unaudited)			Period from 4-1-2013 to 9-30-13 (Unaudited)
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(439	)	$	(721	)	$	(1,336	)	$	(5,028	)	$	79		$	176
Net realized gain (loss) on investments		805			2,820			89,823			(620,212	)		(154	)		(278	)
Net change in unrealized appreciation (depreciation)		13,163			6,123			(120,225	)		542,347			(379	)		(1,487	)
Net Increase (Decrease) in Net Assets Resulting from Operations		13,529			8,222			(31,738	)		(82,893	)		(454	)		(1,589	)
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			(2,542	)		—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			—			(22	)		N/A			N/A
Class I		—			—			—			(3,177	)		—			—
Class R		—			—			—			—			—			—
Class Y		—			—			—			(960	)		—			—
Net realized gains:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		—			—			—			—			N/A			N/A
Class I		—			—			—			—			—			—
Class R		—			—			—			—			—			—
Class Y		—			—			—			—			—			—
Total Distributions to Shareholders		—			—			—			(6,701	)		—			—
Capital Share Transactions		28,229			(9,866	)		(582,243	)		(1,514,653	)		21,173			32,991
Net Increase (Decrease) in Net Assets		41,758			(1,644	)		(613,981	)		(1,604,247	)		20,719			31,402
Net Assets, Beginning of Period		119,294			120,938			2,581,337			4,185,584			—			—
Net Assets, End of Period	$	161,052		$	119,294		$	1,967,356		$	2,581,337		$	20,719		$	31,402
Undistributed (distributions in excess of) net investment income	$	(475	)	$	(36	)	$	(11,325	)	$	(9,525	)	$	72		$	162

* Not shown due to rounding.

(1) Period from April 1, 2013 (commencement of operations) to September 30, 2013.

See Accompanying Notes to Financial Statements.

52 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Real Estate Securities Fund						Ivy Science and Technology Fund
(In thousands)	Six months  ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months  ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	2,170		$	3,823		$	(9,422	)	$	(13,022	)
Net realized gain on investments		7,656			26,898			94,258			51,826
Net change in unrealized appreciation (depreciation)		(36,949	)		26,496			410,549			257,990
Net Increase (Decrease) in Net Assets Resulting from Operations		(27,123	)		57,217			495,385			296,794
Distributions to Shareholders From:
Net investment income:
Class A		(1,710	)		(1,998	)		—			—
Class B		—			—			—			—
Class C		(21	)		(4	)		—			—
Class E		(8	)		(10	)		—			—
Class I		(57	)		(58	)		—			—
Class R		(7	)		(10	)		—			—
Class Y		(1,020	)		(1,500	)		—			—
Net realized gains:
Class A		—			—			—			(3,161	)
Class B		—			—			—			(203	)
Class C		—			—			—			(1,328	)
Class E		—			—			—			(41	)
Class I		—			—			—			(1,087	)
Class R		—			—			—			(252	)
Class Y		—			—			—			(2,190	)
Total Distributions to Shareholders		(2,823	)		(3,580	)		—			(8,262	)
Capital Share Transactions		18,517			39,222			1,027,928			294,440
Net Increase (Decrease) in Net Assets		(11,429	)		92,859			1,523,313			582,972
Net Assets, Beginning of Period		542,327			449,468			2,016,341			1,433,369
Net Assets, End of Period	$	530,898		$	542,327		$	3,539,654		$	2,016,341
Undistributed (distributions in excess of) net investment income	$	1,053		$	1,706		$	(12,923	)	$	(3,487	)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 53

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ASSET STRATEGY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From  Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	27.04	$	0.14		$	2.18		$	2.32		$	—		$	—		$	—		$	—
Year ended 3-31-2013		25.44		0.39			1.88			2.27			(0.67	)		—			—			(0.67	)
Year ended 3-31-2012		25.42		0.20			0.10			0.30			(0.28	)		—			—			(0.28	)
Year ended 3-31-2011		22.42		0.24			2.81			3.05			(0.05	)		—			—			(0.05	)
Year ended 3-31-2010		18.69		0.16			3.66			3.82			(0.09	)		—			—			(0.09	)
Year ended 3-31-2009		27.06		0.24			(6.18	)		(5.94	)		(0.04	)		(2.38	)		(0.01	)		(2.43	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		26.20		0.03			2.11			2.14			—			—			—			—
Year ended 3-31-2013		24.55		0.19			1.82			2.01			(0.36	)		—			—			(0.36	)
Year ended 3-31-2012		24.53		0.00			0.12			0.12			(0.10	)		—			—			(0.10	)
Year ended 3-31-2011		21.77		0.04			2.72			2.76			—			—			—			—
Year ended 3-31-2010		18.23		(0.01	)		3.55			3.54			—			—			—			—
Year ended 3-31-2009		26.57		0.05			(6.05	)		(6.00	)		—			(2.33	)		(0.01	)		(2.34	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		26.33		0.04			2.11			2.15			—			—			—			—
Year ended 3-31-2013		24.67		0.20			1.83			2.03			(0.37	)		—			—			(0.37	)
Year ended 3-31-2012		24.66		0.01			0.11			0.12			(0.11	)		—			—			(0.11	)
Year ended 3-31-2011		21.87		0.05			2.74			2.79			—			—			—			—
Year ended 3-31-2010		18.30		0.01			3.56			3.57			—			—			—			—
Year ended 3-31-2009		26.64		0.06			(6.05	)		(5.99	)		—			(2.34	)		(0.01	)		(2.35	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		27.10		0.14			2.18			2.32			—			—			—			—
Year ended 3-31-2013		25.49		0.38			1.89			2.27			(0.66	)		—			—			(0.66	)
Year ended 3-31-2012		25.48		0.19			0.10			0.29			(0.28	)		—			—			(0.28	)
Year ended 3-31-2011		22.47		0.22			2.84			3.06			(0.05	)		—			—			(0.05	)
Year ended 3-31-2010		18.74		0.17			3.66			3.83			(0.10	)		—			—			(0.10	)
Year ended 3-31-2009		27.05		0.24			(6.19	)		(5.95	)		—			(2.35	)		(0.01	)		(2.36	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		27.25		0.17			2.20			2.37			—			—			—			—
Year ended 3-31-2013		25.67		0.45			1.90			2.35			(0.77	)		—			—			(0.77	)
Year ended 3-31-2012		25.64		0.25			0.11			0.36			(0.33	)		—			—			(0.33	)
Year ended 3-31-2011		22.58		0.26			2.86			3.12			(0.06	)		—			—			(0.06	)
Year ended 3-31-2010		18.81		0.17			3.73			3.90			(0.13	)		—			—			(0.13	)
Year ended 3-31-2009		27.17		0.31			(6.23	)		(5.92	)		(0.05	)		(2.38	)		(0.01	)		(2.44	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		26.94		0.09			2.16			2.25			—			—			—			—
Year ended 3-31-2013		25.29		0.29			1.88			2.17			(0.52	)		—			—			(0.52	)
Year ended 3-31-2012		25.28		0.11			0.11			0.22			(0.21	)		—			—			(0.21	)
Year ended 3-31-2011		22.35		0.13			2.83			2.96			(0.03	)		—			—			(0.03	)
Year ended 3-31-2010		18.65		0.03			3.72			3.75			(0.05	)		—			—			(0.05	)
Year ended 3-31-2009(5)		26.74		0.05			(5.73	)		(5.68	)		(0.02	)		(2.38	)		(0.01	)		(2.41	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		27.09		0.14			2.18			2.32			—			—			—			—
Year ended 3-31-2013		25.49		0.39			1.88			2.27			(0.67	)		—			—			(0.67	)
Year ended 3-31-2012		25.46		0.20			0.11			0.31			(0.28	)		—			—			(0.28	)
Year ended 3-31-2011		22.46		0.23			2.82			3.05			(0.05	)		—			—			(0.05	)
Year ended 3-31-2010		18.72		0.21			3.63			3.84			(0.10	)		—			—			(0.10	)
Year ended 3-31-2009		27.08		0.24			(6.18	)		(5.94	)		(0.03	)		(2.38	)		(0.01	)		(2.42	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from July 31, 2008 (commencement of operations of the class) through March 31, 2009.

(6) For the fiscal year ended March 31, 2009.

54 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average  Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	29.36		8.58	%	$	8,424		0.95	%(4)		1.03	%(4)		—	%		—	%		43	%
Year ended 3-31-2013		27.04		9.09			7,853		0.98			1.55			—			—			39
Year ended 3-31-2012		25.44		1.31			8,019		0.97			0.81			—			—			47
Year ended 3-31-2011		25.42		13.60			9,083		0.99			1.00			—			—			94
Year ended 3-31-2010		22.42		20.46			8,765		1.05			0.79			—			—			96
Year ended 3-31-2009		18.69		-21.41			4,787		1.03			1.05			—			—			279
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		28.34		8.17			756		1.72	(4)		0.26	(4)		—			—			43
Year ended 3-31-2013		26.20		8.27			715		1.73			0.79			—			—			39
Year ended 3-31-2012		24.55		0.54			695		1.76			0.02			—			—			47
Year ended 3-31-2011		24.53		12.68			672		1.80			0.17			—			—			94
Year ended 3-31-2010		21.77		19.42			550		1.88			-0.03			—			—			96
Year ended 3-31-2009		18.23		-22.04			330		1.87			0.22			—			—			279
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		28.48		8.16			8,865		1.69	(4)		0.29	(4)		—			—			43
Year ended 3-31-2013		26.33		8.34			8,321		1.70			0.83			—			—			39
Year ended 3-31-2012		24.67		0.56			8,416		1.71			0.06			—			—			47
Year ended 3-31-2011		24.66		12.76			8,851		1.74			0.24			—			—			94
Year ended 3-31-2010		21.87		19.51			7,733		1.80			0.05			—			—			96
Year ended 3-31-2009		18.30		-21.96			4,644		1.80			0.29			—			—			279
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		29.42		8.56			65		1.00	(4)		0.98	(4)		1.15	(4)		0.83	(4)		43
Year ended 3-31-2013		27.10		9.07			58		1.00			1.50			1.20			1.30			39
Year ended 3-31-2012		25.49		1.26			50		1.00			0.77			1.23			0.55			47
Year ended 3-31-2011		25.48		13.63			44		1.00			0.95			1.39			0.56			94
Year ended 3-31-2010		22.47		20.45			32		1.00			0.84			1.56			0.28			96
Year ended 3-31-2009		18.74		-21.44			17		0.93			1.24			1.18			0.99			279
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		29.62		8.70			11,130		0.74	(4)		1.24	(4)		—			—			43
Year ended 3-31-2013		27.25		9.33			9,681		0.74			1.76			—			—			39
Year ended 3-31-2012		25.67		1.57			8,180		0.75			1.03			—			—			47
Year ended 3-31-2011		25.64		13.84			6,986		0.77			1.14			—			—			94
Year ended 3-31-2010		22.58		20.74			3,973		0.81			0.92			—			—			96
Year ended 3-31-2009		18.81		-21.20			360		0.79			1.35			—			—			279
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		29.19		8.35			136		1.34	(4)		0.63	(4)		—			—			43
Year ended 3-31-2013		26.94		8.71			124		1.34			1.15			—			—			39
Year ended 3-31-2012		25.29		0.96			102		1.33			0.45			—			—			47
Year ended 3-31-2011		25.28		13.24			68		1.31			0.57			—			—			94
Year ended 3-31-2010		22.35		20.12			28		1.33			0.20			—			—			96
Year ended 3-31-2009(5)		18.65		-20.65			1		1.99	(4)		1.36	(4)		—			—			279	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		29.41		8.56			1,283		0.95	(4)		1.03	(4)		0.99	(4)		0.99	(4)		43
Year ended 3-31-2013		27.09		9.08			1,168		0.98			1.55			0.99			1.54			39
Year ended 3-31-2012		25.49		1.35			1,167		0.97			0.80			1.00			0.77			47
Year ended 3-31-2011		25.46		13.59			1,167		0.99			0.99			1.02			0.96			94
Year ended 3-31-2010		22.46		20.51			1,024		1.00			0.93			1.11			0.82			96
Year ended 3-31-2009		18.72		-21.39			1,453		1.03			1.05			1.09			0.99			279

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 55

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ASSET STRATEGY NEW OPPORTUNITIES FUND

	Net  Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	11.01	$	(0.01	)	$	(0.35	)	$	(0.36	)	$	—		$	—	$	—
Year ended 3-31-2013		10.77		0.01			0.29			0.30			(0.06	)		—		(0.06	)
Year ended 3-31-2012		12.63		(0.01	)		(1.85	)		(1.86	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.10	)		2.73			2.63			—			—		—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.76		(0.06	)		(0.35	)		(0.41	)		—			—		—
Year ended 3-31-2013		10.57		(0.09	)		0.28			0.19			—			—		—
Year ended 3-31-2012		12.52		(0.13	)		(1.82	)		(1.95	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.19	)		2.71			2.52			—			—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.80		(0.06	)		(0.35	)		(0.41	)		—			—		—
Year ended 3-31-2013		10.59		(0.07	)		0.28			0.21			—	*		—		—	*
Year ended 3-31-2012		12.53		(0.11	)		(1.83	)		(1.94	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.20	)		2.73			2.53			—			—		—
Class E Shares(7)
Six-month period ended 9-30-2013 (unaudited)		11.01		(0.01	)		(0.36	)		(0.37	)		—			—		—
Year ended 3-31-2013		10.77		0.00			0.30			0.30			(0.06	)		—		(0.06	)
Year ended 3-31-2012		12.63		(0.01	)		(1.85	)		(1.86	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.07	)		2.70			2.63			—			—		—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		11.05		0.01			(0.36	)		(0.35	)		—			—		—
Year ended 3-31-2013		10.80		0.04			0.29			0.33			(0.08	)		—		(0.08	)
Year ended 3-31-2012		12.65		0.02			(1.85	)		(1.83	)		(0.02	)		—		(0.02	)
Year ended 3-31-2011(5)		10.00		(0.08	)		2.73			2.65			—			—		—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.91		(0.04	)		(0.34	)		(0.38	)		—			—		—
Year ended 3-31-2013		10.69		(0.04	)		0.29			0.25			(0.03	)		—		(0.03	)
Year ended 3-31-2012		12.58		(0.06	)		(1.83	)		(1.89	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.12	)		2.70			2.58			—			—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		11.01		(0.01	)		(0.36	)		(0.37	)		—			—		—
Year ended 3-31-2013		10.77		(0.01	)		0.31			0.30			(0.06	)		—		(0.06	)
Year ended 3-31-2012		12.63		(0.01	)		(1.85	)		(1.86	)		—			—		—
Year ended 3-31-2011(5)		10.00		(0.10	)		2.73			2.63			—			—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from May 3, 2010 (commencement of operations of the class) through March 31, 2011.

(6) For the fiscal year ended March 31, 2011.

(7) Class is closed to investment.

56 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average  Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average  Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	10.65		-3.27	%	$	158			1.50	%(4)		-0.22	%(4)		1.78	%(4)		-0.50	%(4)		51	%
Year ended 3-31-2013		11.01		2.84			172			1.50			0.12			1.72			-0.10			31
Year ended 3-31-2012		10.77		-14.73			214			1.50			-0.11			1.68			-0.29			54
Year ended 3-31-2011(5)		12.63		26.30			246			1.50	(4)		-0.97	(4)		1.71	(4)		-1.18	(4)		36	(6)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.35		-3.81			5			2.53	(4)		-1.22	(4)		—			—			51
Year ended 3-31-2013		10.76		1.80			6			2.50			-0.91			—			—			31
Year ended 3-31-2012		10.57		-15.58			7			2.49			-1.16			—			—			54
Year ended 3-31-2011(5)		12.52		25.20			7			2.43	(4)		-1.84	(4)		2.48	(4)		-1.89	(4)		36	(6)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.39		-3.80			40			2.41	(4)		-1.08	(4)		—			—			51
Year ended 3-31-2013		10.80		2.01			51			2.35			-0.71			—			—			31
Year ended 3-31-2012		10.59		-15.48			74			2.37			-0.98			—			—			54
Year ended 3-31-2011(5)		12.53		25.30			86			2.34	(4)		-1.85	(4)		2.39	(4)		-1.90	(4)		36	(6)
Class E Shares(7)
Six-month period ended 9-30-2013 (unaudited)		10.64		-3.36			—	*		1.50	(4)		-0.23	(4)		—			—			51
Year ended 3-31-2013		11.01		2.84			—	*		1.50			0.04			—			—			31
Year ended 3-31-2012		10.77		-14.73			—	*		1.50			-0.11			—			—			54
Year ended 3-31-2011(5)		12.63		26.30			—	*		1.50	(4)		-0.72	(4)		1.58	(4)		-0.80	(4)		36	(6)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.70		-3.17			39			1.25	(4)		0.10	(4)		1.31	(4)		0.04	(4)		51
Year ended 3-31-2013		11.05		3.10			53			1.25			0.42			1.29			0.38			31
Year ended 3-31-2012		10.80		-14.48			81			1.25			0.17			1.31			0.11			54
Year ended 3-31-2011(5)		12.65		26.50			109			1.25	(4)		-0.77	(4)		1.40	(4)		-0.92	(4)		36	(6)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.53		-3.48			1			1.93	(4)		-0.66	(4)		—			—			51
Year ended 3-31-2013		10.91		2.40			1			1.87			-0.35			—			—			31
Year ended 3-31-2012		10.69		-15.02			1			1.89			-0.59			—			—			54
Year ended 3-31-2011(5)		12.58		25.80			1			1.92	(4)		-1.15	(4)		1.97	(4)		-1.20	(4)		36	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.64		-3.36			8			1.50	(4)		-0.20	(4)		1.57	(4)		-0.27	(4)		51
Year ended 3-31-2013		11.01		2.84			9			1.50			-0.08			1.54			-0.12			31
Year ended 3-31-2012		10.77		-14.73			7			1.50			-0.09			1.58			-0.16			54
Year ended 3-31-2011(5)		12.63		26.30			12			1.50	(4)		-0.94	(4)		1.67	(4)		-1.11	(4)		36	(6)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 57

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BALANCED FUND

	Net  Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	21.60	$	0.07	(1)	$	1.58		$	1.65		$	(0.03	)	$	—		$	(0.03	)
Year ended 3-31-2013		20.03		0.19	(1)		1.70			1.89			(0.17	)		(0.15	)		(0.32	)
Year ended 3-31-2012		19.08		0.17	(1)		1.05			1.22	��		(0.18	)		(0.09	)		(0.27	)
Year ended 3-31-2011		16.73		0.18	(1)		2.34			2.52			(0.17	)		—			(0.17	)
Year ended 3-31-2010		13.01		0.21	(1)		3.72			3.93			(0.21	)		—			(0.21	)
Year ended 3-31-2009		16.64		0.16			(3.63	)		(3.47	)		(0.16	)		—			(0.16	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		21.45		(0.02	)(1)		1.57			1.55			—			—			—
Year ended 3-31-2013		19.93		0.03	(1)		1.69			1.72			(0.05	)		(0.15	)		(0.20	)
Year ended 3-31-2012		18.99		0.02	(1)		1.05			1.07			(0.04	)		(0.09	)		(0.13	)
Year ended 3-31-2011		16.67		0.04	(1)		2.33			2.37			(0.05	)		—			(0.05	)
Year ended 3-31-2010		12.97		0.08	(1)		3.71			3.79			(0.09	)		—			(0.09	)
Year ended 3-31-2009		16.60		0.04			(3.64	)		(3.60	)		(0.03	)		—			(0.03	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		21.50		(0.01	)(1)		1.58			1.57			—			—			—
Year ended 3-31-2013		19.98		0.05	(1)		1.68			1.73			(0.06	)		(0.15	)		(0.21	)
Year ended 3-31-2012		19.03		0.04	(1)		1.06			1.10			(0.06	)		(0.09	)		(0.15	)
Year ended 3-31-2011		16.69		0.07	(1)		2.34			2.41			(0.07	)		—			(0.07	)
Year ended 3-31-2010		12.98		0.12	(1)		3.71			3.83			(0.12	)		—			(0.12	)
Year ended 3-31-2009		16.61		0.07	(1)		(3.64	)		(3.57	)		(0.06	)		—			(0.06	)
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		21.68		0.08	(1)		1.59			1.67			(0.04	)		—			(0.04	)
Year ended 3-31-2013		20.02		0.22	(1)		1.78			2.00			(0.19	)		(0.15	)		(0.34	)
Year ended 3-31-2012		19.06		0.21	(1)		1.04			1.25			(0.20	)		(0.09	)		(0.29	)
Year ended 3-31-2011		16.74		0.22	(1)		2.34			2.56			(0.24	)		—			(0.24	)
Year ended 3-31-2010		13.02		0.25	(1)		3.72			3.97			(0.25	)		—			(0.25	)
Year ended 3-31-2009		16.65		0.21			(3.65	)		(3.44	)		(0.19	)		—			(0.19	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		21.58		0.09	(1)		1.59			1.68			(0.06	)		—			(0.06	)
Year ended 3-31-2013		20.01		0.24	(1)		1.69			1.93			(0.21	)		(0.15	)		(0.36	)
Year ended 3-31-2012		19.04		0.22	(1)		1.06			1.28			(0.22	)		(0.09	)		(0.31	)
Year ended 3-31-2011		16.74		0.21	(1)		2.37			2.58			(0.28	)		—			(0.28	)
Year ended 3-31-2010		13.01		0.20	(1)		3.80			4.00			(0.27	)		—			(0.27	)
Year ended 3-31-2009		16.65		0.09			(3.52	)		(3.43	)		(0.21	)		—			(0.21	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		21.59		0.03	(1)		1.58			1.61			—			—			—
Year ended 3-31-2013(5)		20.16		0.00	(1)		1.43			1.43			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		21.60		0.07	(1)		1.58			1.65			(0.03	)		—			(0.03	)
Year ended 3-31-2013		20.03		0.19	(1)		1.70			1.89			(0.17	)		(0.15	)		(0.32	)
Year ended 3-31-2012		19.08		0.18	(1)		1.05			1.23			(0.19	)		(0.09	)		(0.28	)
Year ended 3-31-2011		16.73		0.20	(1)		2.34			2.54			(0.19	)		—			(0.19	)
Year ended 3-31-2010		13.01		0.24	(1)		3.71			3.95			(0.23	)		—			(0.23	)
Year ended 3-31-2009		16.64		0.19			(3.65	)		(3.46	)		(0.17	)		—			(0.17	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) Class is closed to investment.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

58 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average  Net Assets Including Expense Waiver			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	23.22		7.64	%	$	645			1.16	%(3)		0.59	%(3)		15	%
Year ended 3-31-2013		21.60		9.56			399			1.17			0.93			35
Year ended 3-31-2012		20.03		6.52			205			1.23			0.90			37
Year ended 3-31-2011		19.08		15.18			114			1.30			1.03			43
Year ended 3-31-2010		16.73		30.35			81			1.37			1.38			57
Year ended 3-31-2009		13.01		-20.98			68			1.36			1.12			57
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		23.00		7.23			61			1.91	(3)		-0.15	(3)		15
Year ended 3-31-2013		21.45		8.73			44			1.95			0.16			35
Year ended 3-31-2012		19.93		5.72			23			2.02			0.10			37
Year ended 3-31-2011		18.99		14.25			11			2.09			0.24			43
Year ended 3-31-2010		16.67		29.26			7			2.20			0.53			57
Year ended 3-31-2009		12.97		-21.73			4			2.28			0.22			57
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		23.07		7.30			389			1.86	(3)		-0.10	(3)		15
Year ended 3-31-2013		21.50		8.75			246			1.88			0.23			35
Year ended 3-31-2012		19.98		5.84			128			1.92			0.21			37
Year ended 3-31-2011		19.03		14.50			69			1.89			0.43			43
Year ended 3-31-2010		16.69		29.59			42			1.99			0.78			57
Year ended 3-31-2009		12.98		-21.53			49			1.96			0.49			57
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		23.31		7.73			—	*		1.02	(3)		0.75	(3)		15
Year ended 3-31-2013		21.68		10.15			—	*		1.03			1.09			35
Year ended 3-31-2012		20.02		6.71			—	*		1.05			1.11			37
Year ended 3-31-2011		19.06		15.43			—	*		1.10			1.24			43
Year ended 3-31-2010		16.74		30.66			—	*		1.12			1.62			57
Year ended 3-31-2009		13.02		-20.77			—	*		1.12			1.38			57
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		23.20		7.78			140			0.90	(3)		0.84	(3)		15
Year ended 3-31-2013		21.58		9.82			66			0.92			1.19			35
Year ended 3-31-2012		20.01		6.88			39			0.94			1.17			37
Year ended 3-31-2011		19.04		15.58			18			0.97			1.20			43
Year ended 3-31-2010		16.74		30.93			2			1.00			1.67			57
Year ended 3-31-2009		13.01		-20.72			—	*		0.99			1.34			57
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		23.20		7.46			1			1.50	(3)		0.23	(3)		15
Year ended 3-31-2013(5)		21.59		7.09			—	*		1.48	(3)		0.02	(3)		35	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		23.22		7.64			110			1.15	(3)		0.61	(3)		15
Year ended 3-31-2013		21.60		9.57			89			1.16			0.96			35
Year ended 3-31-2012		20.03		6.57			70			1.19			0.96			37
Year ended 3-31-2011		19.08		15.29			48			1.22			1.10			43
Year ended 3-31-2010		16.73		30.51			40			1.24			1.52			57
Year ended 3-31-2009		13.01		-20.89			38			1.24			1.26			57

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 59

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY ENERGY FUND

	Net Asset Value, Beginning of Period		Net Investment Loss(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	13.74	$	(0.04	)	$	1.39		$	1.35		$	—	$	—	$	—
Year ended 3-31-2013		12.68		(0.07	)		1.13			1.06			—		—		—
Year ended 3-31-2012		15.11		(0.09	)		(2.34	)		(2.43	)		—		—		—
Year ended 3-31-2011		11.11		(0.07	)		4.07			4.00			—		—		—
Year ended 3-31-2010		7.27		(0.04	)		3.88			3.84			—		—		—
Year ended 3-31-2009		13.67		(0.05	)		(6.35	)		(6.40	)		—		—		—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		12.98		(0.09	)		1.30			1.21			—		—		—
Year ended 3-31-2013		12.08		(0.17	)		1.07			0.90			—		—		—
Year ended 3-31-2012		14.52		(0.18	)		(2.26	)		(2.44	)		—		—		—
Year ended 3-31-2011		10.77		(0.17	)		3.92			3.75			—		—		—
Year ended 3-31-2010		7.12		(0.14	)		3.79			3.65			—		—		—
Year ended 3-31-2009		13.52		(0.16	)		(6.24	)		(6.40	)		—		—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		13.12		(0.08	)		1.32			1.24			—		—		—
Year ended 3-31-2013		12.19		(0.14	)		1.07			0.93			—		—		—
Year ended 3-31-2012		14.62		(0.16	)		(2.27	)		(2.43	)		—		—		—
Year ended 3-31-2011		10.82		(0.15	)		3.95			3.80			—		—		—
Year ended 3-31-2010		7.14		(0.12	)		3.80			3.68			—		—		—
Year ended 3-31-2009		13.55		(0.12	)		(6.29	)		(6.41	)		—		—		—
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		13.92		(0.02	)		1.41			1.39			—		—		—
Year ended 3-31-2013		12.81		(0.03	)		1.14			1.11			—		—		—
Year ended 3-31-2012		15.22		(0.05	)		(2.36	)		(2.41	)		—		—		—
Year ended 3-31-2011		11.16		(0.04	)		4.10			4.06			—		—		—
Year ended 3-31-2010		7.29		(0.02	)		3.89			3.87			—		—		—
Year ended 3-31-2009		13.69		(0.04	)		(6.36	)		(6.40	)		—		—		—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.03		(0.01	)		1.42			1.41			—		—		—
Year ended 3-31-2013		12.90		(0.02	)		1.15			1.13			—		—		—
Year ended 3-31-2012		15.31		(0.03	)		(2.38	)		(2.41	)		—		—		—
Year ended 3-31-2011		11.21		(0.03	)		4.13			4.10			—		—		—
Year ended 3-31-2010		7.32		(0.01	)		3.90			3.89			—		—		—
Year ended 3-31-2009		13.72		(0.03	)		(6.37	)		(6.40	)		—		—		—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		13.74		(0.05	)		1.38			1.33			—		—		—
Year ended 3-31-2013(6)		12.26		(0.03	)		1.51			1.48			—		—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		13.86		(0.03	)		1.40			1.37			—		—		—
Year ended 3-31-2013		12.77		(0.05	)		1.14			1.09			—		—		—
Year ended 3-31-2012		15.20		(0.07	)		(2.36	)		(2.43	)		—		—		—
Year ended 3-31-2011		11.16		(0.06	)		4.10			4.04			—		—		—
Year ended 3-31-2010		7.30		(0.04	)		3.90			3.86			—		—		—
Year ended 3-31-2009		13.73		(0.07	)		(6.36	)		(6.43	)		—		—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) Class is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the fiscal year ended March 31, 2013.

60 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	15.09		9.75	%	$	107			1.60	%(4)		-0.57	%(4)		1.62	%(4)		-0.59	%(4)		9	%
Year ended 3-31-2013		13.74		8.44			82			1.60			-0.54			1.68			-0.62			30
Year ended 3-31-2012		12.68		-16.08			85			1.60			-0.66			—			—			20
Year ended 3-31-2011		15.11		36.00			101			1.60			-0.59			1.66			-0.65			22
Year ended 3-31-2010		11.11		52.82			63			1.60			-0.42			1.79			-0.61			15
Year ended 3-31-2009		7.27		-46.82			30			1.60			-0.47			1.91			-0.78			48
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		14.19		9.32			5			2.42	(4)		-1.40	(4)		—			—			9
Year ended 3-31-2013		12.98		7.36			4			2.49			-1.43			—			—			30
Year ended 3-31-2012		12.08		-16.74			4			2.41			-1.47			—			—			20
Year ended 3-31-2011		14.52		34.82			5			2.50			-1.49			—			—			22
Year ended 3-31-2010		10.77		51.26			3			2.60			-1.40			2.68			-1.48			15
Year ended 3-31-2009		7.12		-47.34			2			2.60			-1.48			2.78			-1.66			48
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.36		9.37			25			2.19	(4)		-1.15	(4)		—			—			9
Year ended 3-31-2013		13.12		7.71			19			2.26			-1.20			—			—			30
Year ended 3-31-2012		12.19		-16.62			20			2.23			-1.30			—			—			20
Year ended 3-31-2011		14.62		35.12			25			2.29			-1.29			—			—			22
Year ended 3-31-2010		10.82		51.54			13			2.38			-1.19			—			—			15
Year ended 3-31-2009		7.14		-47.31			9			2.50			-1.30			2.50			-1.30			48
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		15.31		9.91			—	*		1.28	(4)		-0.25	(4)		—			—			9
Year ended 3-31-2013		13.92		8.74			—	*		1.31			-0.26			—			—			30
Year ended 3-31-2012		12.81		-15.83			—	*		1.30			-0.36			—			—			20
Year ended 3-31-2011		15.22		36.38			—	*		1.34			-0.33			—			—			22
Year ended 3-31-2010		11.16		53.09			—	*		1.39			-0.19			—			—			15
Year ended 3-31-2009		7.29		-46.75			—	*		1.46			-0.38			1.46			-0.38			48
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		15.44		10.05			9			1.18	(4)		-0.15	(4)		—			—			9
Year ended 3-31-2013		14.03		8.76			6			1.21			-0.14			—			—			30
Year ended 3-31-2012		12.90		-15.74			5			1.19			-0.26			—			—			20
Year ended 3-31-2011		15.31		36.57			10			1.22			-0.23			—			—			22
Year ended 3-31-2010		11.21		53.14			2			1.24			-0.13			—			—			15
Year ended 3-31-2009		7.32		-46.65			—	*		1.39			-0.27			1.39			-0.27			48
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		15.07		9.68			1			1.76	(4)		-0.72	(4)		—			—			9
Year ended 3-31-2013(6)		13.74		12.07			—	*		1.73	(4)		-0.91	(4)		—			—			30	(7)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		15.23		9.88			14			1.42	(4)		-0.41	(4)		—			—			9
Year ended 3-31-2013		13.86		8.54			8			1.45			-0.39			—			—			30
Year ended 3-31-2012		12.77		-15.99			7			1.45			-0.52			—			—			20
Year ended 3-31-2011		15.20		36.20			9			1.49			-0.48			—			—			22
Year ended 3-31-2010		11.16		52.88			5			1.52			-0.36			—			—			15
Year ended 3-31-2009		7.30		-46.83			2			1.60			-0.59			1.65			-0.64			48

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 61

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL NATURAL RESOURCES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.84	$	(0.01	)(1)	$	(0.03	)	$	(0.04	)	$	—		$	—		$	—
Year ended 3-31-2013		17.76		(0.03	)(1)		0.14			0.11			(0.03	)		—			(0.03	)
Year ended 3-31-2012		24.20		(0.01	)(1)		(6.43	)		(6.44	)		—			—			—
Year ended 3-31-2011		18.60		(0.04	)(1)		5.64			5.60			—			—			—
Year ended 3-31-2010		11.08		(0.10	)(1)		7.62			7.52			—			—			—
Year ended 3-31-2009		36.53		0.02			(21.13	)		(21.11	)		(0.03	)		(4.31	)		(4.34	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.73		(0.07	)(1)		(0.03	)		(0.10	)		—			—			—
Year ended 3-31-2013		15.76		(0.14	)(1)		0.11			(0.03	)		—			—			—
Year ended 3-31-2012		21.65		(0.15	)(1)		(5.74	)		(5.89	)		—			—			—
Year ended 3-31-2011		16.77		(0.18	)(1)		5.06			4.88			—			—			—
Year ended 3-31-2010		10.08		(0.21	)(1)		6.90			6.69			—			—			—
Year ended 3-31-2009		34.27		(0.10	)		(19.82	)		(19.92	)		—			(4.27	)		(4.27	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		15.31		(0.05	)(1)		(0.03	)		(0.08	)		—			—			—
Year ended 3-31-2013		15.31		(0.11	)(1)		0.11			0.00			—			—			—
Year ended 3-31-2012		21.00		(0.12	)(1)		(5.57	)		(5.69	)		—			—			—
Year ended 3-31-2011		16.25		(0.15	)(1)		4.90			4.75			—			—			—
Year ended 3-31-2010		9.75		(0.18	)(1)		6.68			6.50			—			—			—
Year ended 3-31-2009		33.47		(0.13	)		(19.32	)		(19.45	)		—			(4.27	)		(4.27	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		18.06		0.02	(1)		(0.03	)		(0.01	)		—			—			—
Year ended 3-31-2013		17.96		0.01	(1)		0.15			0.16			(0.06	)		—			(0.06	)
Year ended 3-31-2012		24.45		0.01	(1)		(6.50	)		(6.49	)		—			—			—
Year ended 3-31-2011		18.76		(0.02	)(1)		5.71			5.69			—			—			—
Year ended 3-31-2010		11.16		(0.07	)(1)		7.67			7.60			—			—			—
Year ended 3-31-2009		36.41		(0.06	)(1)		(20.98	)		(21.04	)		—			(4.21	)		(4.21	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		18.28		0.03	(1)		(0.03	)		0.00			—			—			—
Year ended 3-31-2013		18.19		0.06	(1)		0.14			0.20			(0.11	)		—			(0.11	)
Year ended 3-31-2012		24.69		0.06	(1)		(6.56	)		(6.50	)		—			—			—
Year ended 3-31-2011		18.90		0.02	(1)		5.77			5.79			—			—			—
Year ended 3-31-2010		11.22		(0.04	)(1)		7.72			7.68			—			—			—
Year ended 3-31-2009		36.74		0.03	(1)		(21.19	)		(21.16	)		(0.04	)		(4.32	)		(4.36	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.67		(0.02	)(1)		(0.03	)		(0.05	)		—			—			—
Year ended 3-31-2013		17.58		(0.05	)(1)		0.14			0.09			—			—			—
Year ended 3-31-2012		24.00		(0.05	)(1)		(6.37	)		(6.42	)		—			—			—
Year ended 3-31-2011		18.47		(0.08	)(1)		5.61			5.53			—			—			—
Year ended 3-31-2010		11.02		(0.12	)(1)		7.57			7.45			—			—			—
Year ended 3-31-2009		36.30		(0.05	)(1)		(20.94	)		(20.99	)		—			(4.29	)		(4.29	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		18.10		0.01	(1)		(0.03	)		(0.02	)		—			—			—
Year ended 3-31-2013		18.02		0.02	(1)		0.13			0.15			(0.07	)		—			(0.07	)
Year ended 3-31-2012		24.50		0.03	(1)		(6.51	)		(6.48	)		—			—			—
Year ended 3-31-2011		18.79		(0.01	)(1)		5.72			5.71			—			—			—
Year ended 3-31-2010		11.17		(0.06	)(1)		7.68			7.62			—			—			—
Year ended 3-31-2009		36.62		0.10			(21.21	)		(21.11	)		(0.02	)		(4.32	)		(4.34	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

62 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.80		-0.22	%	$	1,106		1.55	%(4)		-0.09	%(4)		—	%		—	%		68	%
Year ended 3-31-2013		17.84		0.64			1,375		1.52			-0.18			—			—			83
Year ended 3-31-2012		17.76		-26.61			1,770		1.41			-0.07			—			—			84
Year ended 3-31-2011		24.20		30.11			3,095		1.39			-0.22			—			—			105
Year ended 3-31-2010		18.60		67.87			2,822		1.45			-0.58			—			—			112
Year ended 3-31-2009		11.08		-56.82			1,640		1.40			-0.03			—			—			191
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.63		-0.64			51		2.42	(4)		-0.96	(4)		—			—			68
Year ended 3-31-2013		15.73		-0.19			69		2.33			-0.97			—			—			83
Year ended 3-31-2012		15.76		-27.21			112		2.20			-0.86			—			—			84
Year ended 3-31-2011		21.65		29.10			198		2.21			-1.05			—			—			105
Year ended 3-31-2010		16.77		66.37			186		2.28			-1.39			—			—			112
Year ended 3-31-2009		10.08		-57.15			117		2.19			-0.83			—			—			191
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		15.23		-0.52			332		2.20	(4)		-0.73	(4)		—			—			68
Year ended 3-31-2013		15.31		0.00	*		410		2.13			-0.78			—			—			83
Year ended 3-31-2012		15.31		-27.10			603		2.07			-0.73			—			—			84
Year ended 3-31-2011		21.00		29.23			1,072		2.07			-0.91			—			—			105
Year ended 3-31-2010		16.25		66.67			997		2.13			-1.26			—			—			112
Year ended 3-31-2009		9.75		-57.10			539		2.10			-0.74			—			—			191
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		18.05		-0.06			7		1.27	(4)		0.21	(4)		2.18	(4)		-0.70	(4)		68
Year ended 3-31-2013		18.06		0.91			7		1.27			0.05			2.21			-0.89			83
Year ended 3-31-2012		17.96		-26.54			7		1.27			0.06			2.03			-0.69			84
Year ended 3-31-2011		24.45		30.33			9		1.27			-0.12			2.18			-1.03			105
Year ended 3-31-2010		18.76		68.10			6		1.27			-0.40			2.55			-1.68			112
Year ended 3-31-2009		11.16		-56.83			2		1.66			-0.29			2.68			-1.31			191
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		18.28		0.00			284		1.07	(4)		0.37	(4)		—			—			68
Year ended 3-31-2013		18.28		1.14			484		1.05			0.32			—			—			83
Year ended 3-31-2012		18.19		-26.33			1,137		1.02			0.32			—			—			84
Year ended 3-31-2011		24.69		30.64			1,756		1.02			0.12			—			—			105
Year ended 3-31-2010		18.90		68.45			1,074		1.04			-0.21			—			—			112
Year ended 3-31-2009		11.22		-56.60			232		1.05			0.22			—			—			191
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.62		-0.28			45		1.66	(4)		-0.19	(4)		—			—			68
Year ended 3-31-2013		17.67		0.51			50		1.63			-0.30			—			—			83
Year ended 3-31-2012		17.58		-26.75			66		1.60			-0.26			—			—			84
Year ended 3-31-2011		24.00		29.94			90		1.56			-0.41			—			—			105
Year ended 3-31-2010		18.47		67.60			56		1.57			-0.71			—			—			112
Year ended 3-31-2009		11.02		-56.86			22		1.57			-0.22			—			—			191
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		18.08		-0.17			142		1.32	(4)		0.13	(4)		—			—			68
Year ended 3-31-2013		18.10		0.93			186		1.27			0.11			1.29			0.09			83
Year ended 3-31-2012		18.02		-26.45			491		1.20			0.14			1.27			0.07			84
Year ended 3-31-2011		24.50		30.39			799		1.20			-0.04			1.27			-0.11			105
Year ended 3-31-2010		18.79		68.22			667		1.20			-0.36			1.29			-0.45			112
Year ended 3-31-2009		11.17		-56.67			278		1.20			0.16			1.28			0.08			191

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 63

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)			Net Realized and Unrealized Loss on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)(4)	$	10.00	$	0.07		$	(0.33	)	$	(0.26	)	$	—	$	—	$	—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.00	*		(0.31	)		(0.31	)		—		—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.00	*		(0.31	)		(0.31	)		—		—		—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.05			(0.32	)		(0.27	)		—		—		—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.02			(0.32	)		(0.30	)		—		—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.06			(0.26	)		(0.20	)		—		—		—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) For the period from April 1, 2013 (commencement of operations of the class) through September 30, 2013.

(5) Annualized.

64 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)(4)	$	9.74		-2.60	%	$	17			1.50	%(5)		1.39	%(5)		3.08	%(5)		-0.19	%(5)		15	%
Class B Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.69		-3.10			—	*		2.64	(5)		0.07	(5)		3.61	(5)		-0.90	(5)		15
Class C Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.69		-3.10			1			2.63	(5)		0.09	(5)		3.60	(5)		-0.88	(5)		15
Class I Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.73		-2.70			2			1.66	(5)		1.04	(5)		2.62	(5)		0.08	(5)		15
Class R Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.70		-3.00			—	*		2.26	(5)		0.42	(5)		3.23	(5)		-0.55	(5)		15
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.80		-2.00			1			1.51	(5)		1.17	(5)		2.47	(5)		0.21	(5)		15

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 65

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL RISK-MANAGED REAL ESTATE FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Loss on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)(4)	$	10.00	$	0.07	$	(0.54	)	$	(0.47	)	$	—	$	—	$	—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.01		(0.52	)		(0.51	)		—		—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.02		(0.53	)		(0.51	)		—		—		—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.06		(0.53	)		(0.47	)		—		—		—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.03		(0.53	)		(0.50	)		—		—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)(4)		10.00		0.06		(0.52	)		(0.46	)		—		—		—

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) For the period from April 1, 2013 (commencement of operations of the class) through September 30, 2013.

(5) Annualized.

66 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)(4)	$	9.53		-4.70	%	$	15		1.51	%(5)		1.49	%(5)		2.08	%(5)		0.92	%(5)		21	%
Class B Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.49		-5.10			1		2.51	(5)		0.30	(5)		2.64	(5)		0.17	(5)		21
Class C Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.49		-5.10			2		2.50	(5)		0.33	(5)		2.63	(5)		0.20	(5)		21
Class I Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.53		-4.70			8		1.64	(5)		1.17	(5)		1.77	(5)		1.04	(5)		21
Class R Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.50		-5.00			2		2.24	(5)		0.57	(5)		2.36	(5)		0.45	(5)		21
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)(4)		9.54		-4.60			3		1.50	(5)		1.31	(5)		2.02	(5)		0.79	(5)		21

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 67

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY REAL ESTATE SECURITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From  Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	23.73	$	0.09	(1)	$	(1.20	)	$	(1.11	)	$	(0.11	)	$	—		$	(0.11	)
Year ended 3-31-2013		21.27		0.16	(1)		2.45			2.61			(0.15	)		—			(0.15	)
Year ended 3-31-2012		19.42		0.09	(1)		1.82			1.91			(0.06	)		—			(0.06	)
Year ended 3-31-2011		15.95		0.03	(1)		3.62			3.65			(0.18	)		—			(0.18	)
Year ended 3-31-2010		8.31		0.19	(1)		7.64			7.83			(0.19	)		—			(0.19	)
Year ended 3-31-2009		19.34		0.23			(11.00	)		(10.77	)		(0.26	)		—	*		(0.26	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		23.17		(0.04	)(1)		(1.17	)		(1.21	)		—			—			—
Year ended 3-31-2013		20.85		(0.06	)(1)		2.38			2.32			—			—			—
Year ended 3-31-2012		19.20		(0.12	)(1)		1.77			1.65			—			—			—
Year ended 3-31-2011		15.82		(0.17	)(1)		3.57			3.40			(0.02	)		—			(0.02	)
Year ended 3-31-2010		8.24		0.03	(1)		7.56			7.59			(0.01	)		—			(0.01	)
Year ended 3-31-2009		19.15		0.00			(10.85	)		(10.85	)		(0.06	)		—	*		(0.06	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		23.42		0.00	(1)		(1.18	)		(1.18	)		(0.03	)		—			(0.03	)
Year ended 3-31-2013		21.00		0.01	(1)		2.42			2.43			(0.01	)		—			(0.01	)
Year ended 3-31-2012		19.27		(0.05	)(1)		1.78			1.73			—			—			—
Year ended 3-31-2011		15.86		(0.10	)(1)		3.59			3.49			(0.08	)		—			(0.08	)
Year ended 3-31-2010		8.26		0.09	(1)		7.60			7.69			(0.09	)		—			(0.09	)
Year ended 3-31-2009		19.22		0.09			(10.92	)		(10.83	)		(0.12	)		(0.01	)		(0.13	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		23.72		0.07	(1)		(1.20	)		(1.13	)		(0.09	)		—			(0.09	)
Year ended 3-31-2013		21.27		0.14	(1)		2.46			2.60			(0.15	)		—			(0.15	)
Year ended 3-31-2012		19.43		0.10	(1)		1.81			1.91			(0.07	)		—			(0.07	)
Year ended 3-31-2011		15.96		0.03	(1)		3.63			3.66			(0.19	)		—			(0.19	)
Year ended 3-31-2010		8.32		0.19	(1)		7.70			7.89			(0.25	)		—			(0.25	)
Year ended 3-31-2009		19.36		0.18			(11.00	)		(10.82	)		(0.22	)		—	*		(0.22	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		23.85		0.15	(1)		(1.20	)		(1.05	)		(0.18	)		—			(0.18	)
Year ended 3-31-2013		21.37		0.24	(1)		2.51			2.75			(0.27	)		—			(0.27	)
Year ended 3-31-2012		19.52		0.22	(1)		1.80			2.02			(0.17	)		—			(0.17	)
Year ended 3-31-2011		16.00		0.17	(1)		3.61			3.78			(0.26	)		—			(0.26	)
Year ended 3-31-2010		8.34		0.06	(1)		7.90			7.96			(0.30	)		—			(0.30	)
Year ended 3-31-2009		19.43		0.32			(11.03	)		(10.71	)		(0.37	)		(0.01	)		(0.38	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		23.73		0.07	(1)		(1.20	)		(1.13	)		(0.10	)		—			(0.10	)
Year ended 3-31-2013		21.27		0.15	(1)		2.44			2.59			(0.13	)		—			(0.13	)
Year ended 3-31-2012		19.43		0.09	(1)		1.81			1.90			(0.06	)		—			(0.06	)
Year ended 3-31-2011		15.95		(0.01	)(1)		3.68			3.67			(0.19	)		—			(0.19	)
Year ended 3-31-2010		8.31		0.15	(1)		7.73			7.88			(0.24	)		—			(0.24	)
Year ended 3-31-2009		19.35		0.12	(1)		(10.86	)		(10.74	)		(0.29	)		(0.01	)		(0.30	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		23.75		0.12	(1)		(1.20	)		(1.08	)		(0.15	)		—			(0.15	)
Year ended 3-31-2013		21.28		0.23	(1)		2.45			2.68			(0.21	)		—			(0.21	)
Year ended 3-31-2012		19.44		0.16	(1)		1.81			1.97			(0.13	)		—			(0.13	)
Year ended 3-31-2011		15.95		0.10	(1)		3.62			3.72			(0.23	)		—			(0.23	)
Year ended 3-31-2010		8.31		0.26	(1)		7.66			7.92			(0.28	)		—			(0.28	)
Year ended 3-31-2009		19.35		0.26			(10.95	)		(10.69	)		(0.34	)		(0.01	)		(0.35	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

68 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average  Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	22.51		-4.68	%	$	352			1.56	%(4)		0.73	%(4)		1.66	%(4)		0.63	%(4)		16	%
Year ended 3-31-2013		23.73		12.32			341			1.64			0.71			1.68			0.67			43
Year ended 3-31-2012		21.27		9.88			276			1.73			0.45			—			—			55
Year ended 3-31-2011		19.42		23.00			247			1.79			0.16			—			—			65
Year ended 3-31-2010		15.95		94.78			178			2.09			1.51			—			—			72
Year ended 3-31-2009		8.31		-56.07			100			1.93			1.41			—			—			42
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		21.96		-5.22			6			2.63	(4)		-0.38	(4)		2.73	(4)		-0.48	(4)		16
Year ended 3-31-2013		23.17		11.08			7			2.75			-0.29			2.79			-0.33			43
Year ended 3-31-2012		20.85		8.65			7			2.89			-0.62			—			—			55
Year ended 3-31-2011		19.20		21.51			8			3.01			-0.99			—			—			65
Year ended 3-31-2010		15.82		92.14			7			3.53			0.20			—			—			72
Year ended 3-31-2009		8.24		-56.69			4			3.18			0.29			—			—			42
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		22.21		-5.03			14			2.26	(4)		0.00	(4)		2.36	(4)		-0.10	(4)		16
Year ended 3-31-2013		23.42		11.50			15			2.35			0.03			2.39			-0.01			43
Year ended 3-31-2012		21.00		9.03			12			2.49			-0.28			—			—			55
Year ended 3-31-2011		19.27		22.07			12			2.56			-0.52			—			—			65
Year ended 3-31-2010		15.86		93.33			9			2.88			0.72			—			—			72
Year ended 3-31-2009		8.26		-56.47			5			2.79			0.57			—			—			42
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		22.50		-4.76			2			1.67	(4)		0.61	(4)		2.15	(4)		0.13	(4)		16
Year ended 3-31-2013		23.72		12.27			2			1.67			0.61			2.27			0.01			43
Year ended 3-31-2012		21.27		9.90			1			1.67			0.50			2.36			-0.19			55
Year ended 3-31-2011		19.43		23.12			1			1.67			0.16			2.52			-0.69			65
Year ended 3-31-2010		15.96		95.63			1			1.67			1.57			3.45			-0.21			72
Year ended 3-31-2009		8.32		-56.07			—	*		2.12			1.01			3.33			-0.20			42
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		22.62		-4.43			7			1.02	(4)		1.27	(4)		1.12	(4)		1.17	(4)		16
Year ended 3-31-2013		23.85		12.95			7			1.09			1.06			1.12			1.03			43
Year ended 3-31-2012		21.37		10.46			3			1.15			1.15			—			—			55
Year ended 3-31-2011		19.52		23.84			5			1.16			0.97			—			—			65
Year ended 3-31-2010		16.00		96.35			4			1.27			0.34			—			—			72
Year ended 3-31-2009		8.34		-55.70			1			1.16			2.13			—			—			42
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		22.50		-4.76			1			1.66	(4)		0.57	(4)		1.76	(4)		-0.47	(4)		16
Year ended 3-31-2013		23.73		12.23			2			1.71			0.69			1.75			0.65			43
Year ended 3-31-2012		21.27		9.84			1			1.73			0.49			—			—			55
Year ended 3-31-2011		19.43		23.17			1			1.70			-0.05			—			—			65
Year ended 3-31-2010		15.95		95.59			—	*		1.73			1.27			—			—			72
Year ended 3-31-2009		8.31		-55.94			—	*		1.70			1.04			—			—			42
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		22.52		-4.57			149			1.27	(4)		0.98	(4)		1.37	(4)		0.88	(4)		16
Year ended 3-31-2013		23.75		12.63			168			1.34			1.06			1.37			1.03			43
Year ended 3-31-2012		21.28		10.24			149			1.39			0.82			—			—			55
Year ended 3-31-2011		19.44		23.51			150			1.39			0.57			—			—			65
Year ended 3-31-2010		15.95	��	96.18			109			1.41			2.09			—			—			72
Year ended 3-31-2009		8.31		-55.78			54			1.39			1.77			—			—			42

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 69

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SCIENCE AND TECHNOLOGY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	39.79	$	(0.14	)(1)	$	7.91		$	7.77		$	—	$	—		$	—		$	—
Year ended 3-31-2013		33.54		(0.27	)(1)		6.71			6.44			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		35.09		(0.32	)(1)		0.93			0.61			—		(2.16	)		—			(2.16	)
Year ended 3-31-2011		29.35		(0.25	)(1)		6.39			6.14			—		(0.40	)		—			(0.40	)
Year ended 3-31-2010		21.07		(0.07	)(1)		8.52			8.45			—		(0.17	)		—			(0.17	)
Year ended 3-31-2009		27.87		(0.10	)		(5.54	)		(5.64	)		—		(1.15	)		(0.01	)		(1.16	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		34.92		(0.27	)(1)		6.93			6.66			—		—			—			—
Year ended 3-31-2013		29.69		(0.48	)(1)		5.90			5.42			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		31.58		(0.53	)(1)		0.77			0.24			—		(2.13	)		—			(2.13	)
Year ended 3-31-2011		26.62		(0.47	)(1)		5.75			5.28			—		(0.32	)		—			(0.32	)
Year ended 3-31-2010		19.19		(0.31	)(1)		7.74			7.43			—		—			—			—
Year ended 3-31-2009		25.68		(0.29	)		(5.13	)		(5.42	)		—		(1.07	)		—	*		(1.07	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		35.99		(0.27	)(1)		7.15			6.88			—		—			—			—
Year ended 3-31-2013		30.57		(0.47	)(1)		6.08			5.61			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		32.41		(0.51	)(1)		0.80			0.29			—		(2.13	)		—			(2.13	)
Year ended 3-31-2011		27.29		(0.44	)(1)		5.91			5.47			—		(0.35	)		—			(0.35	)
Year ended 3-31-2010		19.65		(0.26	)(1)		7.93			7.67			—		(0.03	)		—			(0.03	)
Year ended 3-31-2009		26.21		(0.19	)		(5.28	)		(5.47	)		—		(1.08	)		(0.01	)		(1.09	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		39.74		(0.17	)(1)		7.91			7.74			—		—			—			—
Year ended 3-31-2013		33.48		(0.29	)(1)		6.74			6.45			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		35.04		(0.33	)(1)		0.92			0.59			—		(2.15	)		—			(2.15	)
Year ended 3-31-2011		29.33		(0.26	)(1)		6.38			6.12			—		(0.41	)		—			(0.41	)
Year ended 3-31-2010		21.05		(0.06	)(1)		8.52			8.46			—		(0.18	)		—			(0.18	)
Year ended 3-31-2009		27.76		(0.10	)(1)		(5.56	)		(5.66	)		—		(1.04	)		(0.01	)		(1.05	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		42.72		(0.09	)(1)		8.52			8.43			—		—			—			—
Year ended 3-31-2013		35.88		(0.17	)(1)		7.20			7.03			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		37.36		(0.23	)(1)		1.01			0.78			—		(2.26	)		—			(2.26	)
Year ended 3-31-2011		31.16		(0.16	)(1)		6.80			6.64			—		(0.44	)		—			(0.44	)
Year ended 3-31-2010		22.33		0.01	(1)		9.05			9.06			—		(0.23	)		—			(0.23	)
Year ended 3-31-2009		29.35		0.08	(1)		(5.92	)		(5.84	)		—		(1.17	)		(0.01	)		(1.18	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		39.42		(0.21	)(1)		7.84			7.63			—		—			—			—
Year ended 3-31-2013		33.32		(0.36	)(1)		6.65			6.29			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		34.93		(0.40	)(1)		0.92			0.52			—		(2.13	)		—			(2.13	)
Year ended 3-31-2011		29.27		(0.32	)(1)		6.37			6.05			—		(0.39	)		—			(0.39	)
Year ended 3-31-2010		21.02		(0.13	)(1)		8.52			8.39			—		(0.14	)		—			(0.14	)
Year ended 3-31-2009		27.81		(0.05	)(1)		(5.60	)		(5.65	)		—		(1.13	)		(0.01	)		(1.14	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		41.60		(0.14	)(1)		8.29			8.15			—		—			—			—
Year ended 3-31-2013		35.03		(0.26	)(1)		7.02			6.76			—		(0.19	)		—			(0.19	)
Year ended 3-31-2012		36.54		(0.31	)(1)		0.98			0.67			—		(2.18	)		—			(2.18	)
Year ended 3-31-2011		30.54		(0.23	)(1)		6.65			6.42			—		(0.42	)		—			(0.42	)
Year ended 3-31-2010		21.90		(0.04	)(1)		8.87			8.83			—		(0.19	)		—			(0.19	)
Year ended 3-31-2009		28.87		(0.10	)		(5.71	)		(5.81	)		—		(1.15	)		(0.01	)		(1.16	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

70 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	47.56		19.53	%	$	1,286		1.29	%(4)		-0.65	%(4)		—	%		—	%		20	%
Year ended 3-31-2013		39.79		19.28			759		1.37			-0.79			—			—			43
Year ended 3-31-2012		33.54		3.01			549		1.39			-1.02			—			—			51
Year ended 3-31-2011		35.09		21.09			568		1.40			-0.83			—			—			47
Year ended 3-31-2010		29.35		40.13			437		1.50			-0.28			—			—			59
Year ended 3-31-2009		21.07		-19.86			245		1.50			-0.21			—			—			46
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		41.58		19.04			59		2.08	(4)		-1.44	(4)		—			—			20
Year ended 3-31-2013		34.92		18.37			40		2.17			-1.59			—			—			43
Year ended 3-31-2012		29.69		2.15			32		2.24			-1.86			—			—			51
Year ended 3-31-2011		31.58		19.98			31		2.29			-1.72			—			—			47
Year ended 3-31-2010		26.62		38.72			24		2.51			-1.29			—			—			59
Year ended 3-31-2009		19.19		-20.71			15		2.56			-1.30			—			—			46
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		42.87		19.08			481		2.01	(4)		-1.36	(4)		—			—			20
Year ended 3-31-2013		35.99		18.47			278		2.07			-1.50			—			—			43
Year ended 3-31-2012		30.57		2.25			219		2.13			-1.76			—			—			51
Year ended 3-31-2011		32.41		20.17			230		2.15			-1.58			—			—			47
Year ended 3-31-2010		27.29		39.05			183		2.28			-1.07			—			—			59
Year ended 3-31-2009		19.65		-20.51			98		2.30			-1.04			—			—			46
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		47.48		19.48			13		1.43	(4)		-0.79	(4)		1.71	(4)		-1.07	(4)		20
Year ended 3-31-2013		39.74		19.31			9		1.43			-0.85			1.91			-1.33			43
Year ended 3-31-2012		33.48		3.00			6		1.43			-1.06			2.01			-1.64			51
Year ended 3-31-2011		35.04		21.03			6		1.43			-0.87			2.08			-1.52			47
Year ended 3-31-2010		29.33		40.21			4		1.43			-0.24			2.56			-1.37			59
Year ended 3-31-2009		21.05		-20.05			2		1.76			-0.43			2.69			-1.36			46
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		51.15		19.71			806		1.01	(4)		-0.36	(4)		—			—			20
Year ended 3-31-2013		42.72		19.70			322		1.04			-0.46			—			—			43
Year ended 3-31-2012		35.88		3.37			186		1.06			-0.69			—			—			51
Year ended 3-31-2011		37.36		21.48			182		1.07			-0.50			—			—			47
Year ended 3-31-2010		31.16		40.65			122		1.11			0.02			—			—			59
Year ended 3-31-2009		22.33		-19.50			19		1.07			0.34			—			—			46
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		47.05		19.36			79		1.61	(4)		-0.97	(4)		—			—			20
Year ended 3-31-2013		39.42		18.96			56		1.64			-1.07			—			—			43
Year ended 3-31-2012		33.32		2.76			42		1.64			-1.27			—			—			51
Year ended 3-31-2011		34.93		20.83			35		1.61			-1.06			—			—			47
Year ended 3-31-2010		29.27		39.95			19		1.64			-0.48			—			—			59
Year ended 3-31-2009		21.02		-19.95			6		1.62			-0.22			—			—			46
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		49.75		19.56			816		1.26	(4)		-0.62	(4)		—			—			20
Year ended 3-31-2013		41.60		19.40			552		1.29			-0.71			—			—			43
Year ended 3-31-2012		35.03		3.10			399		1.30			-0.93			—			—			51
Year ended 3-31-2011		36.54		21.18			445		1.31			-0.74			—			—			47
Year ended 3-31-2010		30.54		40.36			352		1.35			-0.13			—			—			59
Year ended 3-31-2009		21.90		-19.74			193		1.33			-0.03			—			—			46

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 71

NOTES TO FINANCIAL STATEMENTS

Ivy Funds

SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Ivy Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Ivy Asset Strategy Fund, Ivy Asset Strategy New Opportunities Fund, Ivy Balanced Fund, Ivy Energy Fund, Ivy Global Natural Resources Fund, Ivy Global Real Estate Fund, Ivy Global Risk-Managed Real Estate Fund, Ivy Real Estate Securities Fund and Ivy Science and Technology Fund (each, a “Fund”) are nine series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information. Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

Each Fund offers Class A, Class B, Class C, Class I, Class Y, and Class R shares. Certain Funds may also offer Class E shares. Class A and Class E shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a contingent deferred sales charge (“CDSC”). Class I, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer agent and shareholder servicing fees, directly attributable to that class. Class A, B, C, E, R and Y have a distribution and service plan. Class I shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

Foreign Currency Translation. Each Fund’s accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service authorized by the Board of Trustees of the Trust (the “Board”). Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of and for the period ended September 30, 2013, management believes that no liability for unrecognized tax positions is required. The Funds are subject to examination by U.S. federal and state authorities for returns filed for tax years after 2008.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America (“U.S. GAAP”). If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax return of capital.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that a Fund either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, financial futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods and swaps), the Fund will segregate collateral or designate on its books and records cash or other liquid securities having a value at least equal to the amount that is required to be physically segregated for the benefit of the counterparty. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit cash or securities as collateral for certain investments. Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the Statement of Assets and Liabilities as “Restricted cash.” Securities collateral pledged for the same purpose, if any, is noted on the Schedule of Investments.

72 SEMIANNUAL REPORT 2013

Concentration of Market and Credit Risk. In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded on the Funds’ Statement of Assets and Liabilities, less any collateral held by the Funds.

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

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

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in financial derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad.

Inflation-Indexed Bonds. Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.

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

Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statement of Assets and Liabilities.

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

Loans. Certain Funds may invest in loans. Loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Loans are generally readily marketable, but some loans may be illiquid or may be subject to some restrictions on resale.

Certain loans contain provisions that obligate a Fund to fund future commitments at the borrower’s discretion. At September 30, 2013, there were no such unfunded commitments.

Custodian Fees. “Custodian fees” on the Statement of Operations may include interest expense incurred by a Fund on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. A Fund pays interest to its custodian on such cash overdrafts, to the extent they are not

2013 SEMIANNUAL REPORT 73

offset by positive cash balances maintained by that Fund. The “Earnings credit” line item, if shown, represents earnings on cash balances maintained by that Fund during the period. Such interest expense and other custodian fees may be paid with these earnings.

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

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

Estimates. The preparation of financial statements in accordance with U.S. GAAP 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.

Subsequent Events. Management has performed a review for subsequent events through the date this report was issued.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Each Fund calculates the Net Asset Value (“NAV”) of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

For purposes of calculating the NAV, the portfolio securities and other assets are valued on each business day using pricing and valuation methods as adopted by the Board. Where market quotes are readily available, fair value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.

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

Short-term securities with maturities of 60 days or less are valued on the basis of amortized cost (which approximates value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium.

Because many foreign markets close before the NYSE, events may occur between the close of the foreign market and the close of the NYSE that could have a material impact on the valuation of foreign securities. Waddell & Reed Services Company (“WRSCO”), pursuant to procedures adopted by the Board, evaluates the impact of these events and may adjust the valuation of foreign securities to reflect the fair value as of the close of the NYSE. In addition, all securities for which values are not readily available or are deemed unreliable are appraised at fair value as determined in good faith under the supervision of the Board.

Where market quotes are not readily available, portfolio securities or assets are valued at fair value, as determined in good faith by the Board or WRSCO pursuant to instructions from the Board.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE close, that materially affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available.

The Board has delegated to WRSCO, the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events. WRSCO has established a Valuation Committee to administer and oversee the valuation process, including the use of third party pricing vendors.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board, with reference to other securities or indices. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or asset will be determined in good faith by the Valuation Committee and appropriate consultation with the Board.

When a Fund uses these fair valuation methods applied by WRSCO that use significant unobservable inputs to determine its NAV, securities will be priced by a method that the Board or persons acting at their direction believe accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. The prices used by a Fund may differ from the value that will ultimately be realized at the time the securities were sold.

WRSCO is responsible for monitoring the implementation of the pricing and valuation policies through a series of activities to provide reasonable comfort of the accuracy of prices including: 1) periodic vendor due diligence meetings to review methodologies, new developments, and process at

74 SEMIANNUAL REPORT 2013

vendors, 2) daily and monthly multi-source pricing comparisons reviewed and submitted to the Valuation Committee, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by management and the Valuation Committee.

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized as follows:

Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

A description of the valuation techniques applied to the Funds’ major classes of assets and liabilities measured at fair value on a recurring basis follows:

Asset-Backed Securities and Mortgage-Backed Securities. The fair value of asset-backed securities and mortgage-backed securities are estimated using recently executed transactions and based on models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral. To the extent the inputs are observable and timely, the values would be categorized in Level 2 of the fair value hierarchy, and otherwise they would be categorized as Level 3.

Loans. Loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3.

Bullion. The fair value of bullion is at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded and are categorized in Level 1 of the fair value hierarchy.

Corporate Bonds. The fair value of corporate bonds is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3 of the fair value hierarchy.

Derivative Instruments. Forward foreign currency contracts are valued based upon the closing prices of the forward currency rates determined at the close of the NYSE. Swaps are valued by an independent pricing service unless the price is unavailable, in which case they are valued at the price provided by a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Listed options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service unless the price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. Over-the-counter (“OTC”) options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service for a comparable listed option unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. If no comparable listed option exists from which to obtain a price from an independent pricing service and a quotation cannot be obtained from a broker-dealer, the OTC option will be valued using a model reasonably designed to provide a current market price.

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward foreign currency contracts, swap agreements, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. A substantial majority of OTC derivative products valued using pricing models fall into this category and are categorized within Level 2 of the fair value hierarchy.

2013 SEMIANNUAL REPORT 75

Equity Securities. Equity securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. OTC equity securities and listed securities for which no price is readily available are valued at the average of the last bid and asked prices.

Mutual funds, including investment funds, typically are valued at the NAV reported as of the valuation date.

Securities that are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded and to the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Foreign securities, for which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intra-day trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.

Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.

Municipal Bonds. Municipal bonds are fair valued based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.

Restricted Securities. Restricted securities that are deemed to be both Rule 144A securities and illiquid, as well as restricted securities held in non-public entities are included in Level 3 of the fair value hierarchy because they trade infrequently, and, therefore, the inputs are unobservable. Restricted securities that are valued at a discount to similar publicly traded securities may be categorized as Level 2 of the fair value hierarchy to the extent that the discount is considered to be insignificant to the fair value measurement in its entirety; otherwise they may be categorized as Level 3.

U.S. Government and Agency Securities. U.S. government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, U.S. government and agency securities are normally categorized in Level 1 or 2 of the fair value hierarchy depending on the liquidity and transparency of the market.

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. Transfers between levels represent the values as of the beginning of the reporting period.

For fair valuations using unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The beginning of period timing recognition is used for the transfers between Levels of the Funds’ assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments if applicable, are included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities, respectively. Additionally, the net change in unrealized appreciation for all Level 3 investments still held as of September 30, 2013, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities.

The Funds may own different types of assets that are classified as Level 2 or Level 3. Assets classified as Level 2 can have a variety of observable inputs, including, but not limited to, benchmark yields, reported trades, broker quotes, benchmark securities, and bid/offer quotations. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value.

4. DERIVATIVE INSTRUMENTS ($ amounts in thousands unless indicated otherwise)

The following disclosures contain information on why and how the Funds use derivative instruments, the associated risks of investing in derivative instruments, and how derivative instruments affect the Funds’ financial positions and results of operations when presented by primary underlying risk exposure.

Forward Foreign Currency Contracts. Certain Funds may enter into forward foreign currency contracts (“forward contracts”) for the purchase or sale of a foreign currency at a negotiated rate at a future date. Forward contracts are reported on a schedule following the Schedule of Investments. Forward contracts will be valued daily based upon the closing prices of the forward currency rates determined at the close of the NYSE as provided by a bank, dealer or independent pricing service. The resulting unrealized appreciation and depreciation is reported on the Statement of Assets and

76 SEMIANNUAL REPORT 2013

Liabilities as a receivable or payable and on the Statement of Operations within the change in unrealized appreciation (depreciation). At contract close, the difference between the original cost of the contract and the value at the close date is recorded as a realized gain (loss) on the Statement of Operations.

Risks to a Fund related to the use of such contracts include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund’s maximum loss will consist of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Futures Contracts. Certain Funds may engage in buying and selling futures contracts. Upon entering into a futures contract, the Fund is required to deposit, in a segregated account, an amount equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying debt security or index.

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

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

Option Contracts. Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.

When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current value of the option written. 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 securities purchased by a Fund is reduced by the amount of the premium received.

Investments in options, whether purchased or written, involve certain risks. Writing put options and purchasing call options may increase a Fund’s exposure to the underlying security (or basket of securities). With written options, there may be times when a Fund will be required to purchase or sell securities to meet its obligation under the option contract where the required action is not beneficial to the Fund, due to unfavorable movement of the market price of the underlying security (or basket of securities). Additionally, to the extent a Fund enters into OTC option transactions with counterparties, the Fund will be exposed to the risk that counterparties to these OTC transactions will be unable to meet their obligations under the terms of the transaction.

Swap Agreements. Certain Funds may invest in swap agreements.

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.

The creditworthiness of the counterparty 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. The maximum loss a Fund may incur consists of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Collateral and Rights of Offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties through credit support annexes (“CSA”) included with an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments’ payables and/or receivables against each other and/or with collateral, which is generally held by the Fund’s custodian. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

Offsetting of Assets and Liabilities. Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities, requires an entity that has financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.

2013 SEMIANNUAL REPORT 77

The following tables present the offsetting of assets and liabilities as of September 30, 2013:

Assets
							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Statement of Assets  and Liabilities		Net Amounts of Assets Presented on the Statement of Assets  and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Received		Cash Collateral Received			Net Amount
Asset Strategy Fund
Investments in unaffiliated securities at value*	$	14,603	$	—	$	14,603	$	(2,501	)	$	—	$	(11,580	)	$	522
Asset Strategy New Opportunities Fund
Investments in unaffiliated securities at value*	$	1,132	$	—	$	1,132	$	(27	)	$	—	$	—		$	1,105
Global Natural Resources Fund
Unrealized appreciation on forward foreign currency	$	480	$	—	$	480	$	(397	)	$	—	$	—		$	83

*Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities.

Liabilities
							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets  and Liabilities		Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged			Cash Collateral Pledged			Net Amount
Asset Strategy Fund
Written options at value	$	3,220	$	—	$	3,220	$	(2,501	)	$	(719	)	$	—		$	—
Unrealized depreciation on forward foreign currency		34,116		—		34,116		—			(24,455	)		(9,661	)		—
Total	$	37,336	$	—	$	37,336	$	(2,501	)	$	(25,174	)	$	(9,661	)	$	—
Asset Strategy New Opportunities Fund
Written options at value	$	27	$	—	$	27	$	(27	)	$	—		$	—		$	—
Unrealized depreciation on forward foreign currency		55		—		55		—			—			—			55
Total	$	82	$	—	$	82	$	(27	)	$	—		$	—		$	55
Global Natural Resources Fund
Unrealized depreciation on forward foreign currency	$	892	$	—	$	892	$	(397	)	$	—		$	(389	)	$	106

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of September 30, 2013:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Asset Strategy Fund	Equity	Investments in unaffiliated securities at value*		$36,378	Unrealized depreciation on futures contracts**		$  9,828
		Unrealized appreciation on futures contracts**		2,727	Written options at value		45,432
	Foreign currency				Unrealized depreciation on forward foreign currency contracts		34,116
Ivy Asset Strategy New Opportunities Fund	Equity	Investments in unaffiliated securities at value*		1,132	Written options at value		27
	Foreign currency				Unrealized depreciation on forward foreign currency contracts		55
Ivy Global Natural Resources Fund	Commodity	Investments in unaffiliated securities at value*		6,575
	Equity	Investments in unaffiliated securities at value*		72,554

78 SEMIANNUAL REPORT 2013

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
	Foreign currency	Unrealized appreciation on forward foreign currency contracts		$     480	Unrealized depreciation on forward foreign currency contracts		$     892
Ivy Real Estate Securities Fund	Equity				Written options at value		6

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

**The value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of September 30, 2013.

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2013:

		Net realized gain (loss) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements		Futures contracts			Written options		Forward foreign currency contracts			Total
Ivy Asset Strategy Fund	Commodity	$	—		$	—	$	(112,324	)	$	—	$	—		$	(112,324	)
	Equity		114,677			—		(127,232	)		99,986		—			87,431
	Foreign currency		—			—		—			—		9,658			9,658
Ivy Asset Strategy New Opportunities Fund	Commodity		—			—		(1,822	)		—		—			(1,822	)
	Equity		158			—		—			49		—			207
	Foreign currency		—			—		—			—		(450	)		(450	)
Ivy Global Natural Resources Fund	Commodity		(12,236	)		—		—			—		—			(12,236	)
	Equity		7,942			—		(32,221	)		—		—			(24,279	)
	Foreign currency		—			—		—			—		1,940			1,940
Ivy Real Estate Securities Fund	Equity		—			—		—			5		—			5
Ivy Science and Technology Fund	Foreign currency		—			—		—			—		2,983			2,983

*Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 2013:

		Net change in unrealized appreciation (depreciation) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements		Futures contracts			Written options			Forward foreign currency contracts			Total
Ivy Asset Strategy Fund	Equity	$	(67,115	)	$	—	$	(7,101	)	$	(19,870	)	$	—		$	(94,086	)
	Foreign currency		—			—		—			—			(33,774	)		(33,774	)
Ivy Asset Strategy New Opportunities Fund	Equity		(588	)		—		—			67			—			(521	)
	Foreign currency		—			—		—			—			(31	)		(31	)
Ivy Global Natural Resources Fund	Equity		—			—		4,946			—			—			4,946
	Foreign currency		—			—		—			—			(5,798	)		(5,798	)
Ivy Real Estate Securities Fund	Equity		—			—		—			11			—			11
Ivy Science and Technology Fund	Foreign currency		—			—		—			—			(2,238	)		(2,238	)

*Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

During the period ended September 30, 2013, the average derivative volume was as follows:

Fund	Long  forward contracts(1)		Short  forward contracts(1)		Long  futures contracts(1)		Short  futures contracts(1)		Swap agreements(2)		Purchased options(1)		Written options(1)
Ivy Asset Strategy Fund	$	1,522,947	$	1,526,762	$	228,463	$	366,211	$	—	$	85,218	$	32,839
Ivy Asset Strategy New Opportunities Fund		16,344		16,371		—		—		—		708		9
Ivy Global Natural Resources Fund		290,069		288,564		—		349,828		—		104,848		—
Ivy Real Estate Securities Fund		—		—		—		—		—		—		2
Ivy Science and Technology Fund		4,750		4,040		—		—		—		—		—

(1) Average value outstanding during the period.

(2) Average notional amount outstanding during the period.

2013 SEMIANNUAL REPORT 79

Objectives and Strategies

Ivy Asset Strategy Fund. The Fund’s objectives in using derivatives during the period included hedging market risk on equity securities, increasing exposure to various equity markets, managing exposure to various foreign currencies, and hedging certain event risks on positions held by the Fund. To achieve the objective of hedging market risk and increasing exposure to equity markets, the Fund utilized futures, and option contracts on foreign and domestic equity indices. To manage foreign currency exposure, the Fund utilized forward contracts and option contracts to either increase or decrease exposure to a given currency. To manage event risks, the Fund utilized short futures on commodities, as well as on foreign and domestic equity indices and option contracts, both written and purchased, on individual equity securities owned by the Fund.

Ivy Asset Strategy New Opportunities Fund. The Fund’s objectives in using derivatives during the period included hedging market risk on equity securities and managing the exposure to various foreign currencies. To achieve the objective of hedging market risk, the Fund utilized option contracts, both written and purchased, on individual equity securities and foreign equity indices. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

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

Ivy Real Estate Securities Fund. The Fund’s objective in using derivatives during the period was to hedge market risk on securities in its portfolio. To achieve this objective, the Fund utilized written options on individual equity securities owned by the Fund.

Ivy Science and Technology Fund. The Fund’s objective in using derivatives during the period was to hedge the exposure to foreign currencies of securities held in the Fund. To achieve this objective, the Fund utilized forward contracts.

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-13		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-13
Ivy Asset Strategy Fund
Number of Contracts		179,579		4,187,307		(295,057	)		(3,725,368	)		(198,397	)		148,064
Premium Received	$	49,783	$	204,045	$	(143,539	)	$	(647	)	$	(71,542	)	$	38,100
Ivy Asset Strategy New Opportunities Fund
Number of Contracts		—		1,611		(889	)		—			(572	)		150
Premium Received	$	—	$	571	$	(445	)	$	—		$	(32	)	$	94
Ivy Real Estate Securities Fund
Number of Contracts		112		363		—			(67	)		(45	)		363
Premium Received	$	11	$	21	$	—		$	(7	)	$	(5	)	$	20

6. BASIS FOR CONSOLIDATION

Ivy ASF II, Ltd. and Ivy ASNO II, Ltd. (each a “Subsidiary”), Cayman Islands exempted companies, were incorporated as wholly owned subsidiaries acting as investment vehicles for the Ivy Asset Strategy Fund and Ivy Asset Strategy New Opportunities Fund (referred to as “the Fund” in this sub-section, respectively). Ivy ASF III (SBP), LLC and Ivy ASF, LLC (each a “Company”), Delaware limited liability companies, were incorporated as wholly owned companies acting as investment vehicles for the Ivy Asset Strategy Fund. Each Subsidiary and Company acts as an investment vehicle for a Fund, as applicable, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in their prospectus and statement of additional information.

The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund and its respective Subsidiary and Company, if applicable. The consolidated financial statements include the accounts of each Fund and its respective Subsidiary and Company. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between each Fund and its respective Subsidiary and/or Company comprising the entire issued share capital of the Subsidiary and Company with the intent that the Fund will remain the sole shareholder and retain all rights. Under the Articles of Association, shares issued by the Subsidiary and Company confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and Company and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary and Company.

See the table below for details regarding the structure, incorporation and relationship as of September 30, 2013 of each Subsidiary and Company to each Fund (amounts in thousands).

Subsidiary/Company	Fund	Date of Incorporation	Subscription Agreement	Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy ASF II, Ltd.	Ivy Asset Strategy Fund	1-31-13	4-10-13	$	30,659,222	$	1,584,820		5.17	%
Ivy ASF III (SBP), LLC	Ivy Asset Strategy Fund	4-9-13	4-23-13		30,659,222		258,795		0.84

80 SEMIANNUAL REPORT 2013

Subsidiary/Company	Fund	Date of Incorporation	Subscription Agreement	Fund Net Assets		Subsidiary Net Assets		Percentage of Fund Net Assets
Ivy ASF, LLC	Ivy Asset Strategy Fund	12-10-12	12-18-12	$	30,659,222	$	295,823		0.96	%
Ivy ASNO II, Ltd.	Ivy Asset Strategy New Opportunities Fund	1-31-13	4-10-13		251,223		26,070		10.38

7. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

Management Fees. IICO, a wholly owned subsidiary of Waddell & Reed Financial, Inc. (“WDR”), serves as each Fund’s investment manager. The management fee is accrued daily by each Fund at the following annual rates as a percentage of average daily net assets:

Fund (M - Millions)	$0 to $500M	$500 to $1,000M		$1,000 to $2,000M		$2,000 to $3,000M		Over $3,000M
Ivy Asset Strategy Fund	0.700%		0.700%		0.650%		0.600%		0.550%
Ivy Asset Strategy New Opportunities Fund	1.000		0.850		0.830		0.800		0.760
Ivy Balanced Fund	0.700		0.700		0.650		0.600		0.550
Ivy Energy Fund	0.850		0.850		0.830		0.800		0.760
Ivy Global Natural Resources Fund	1.000		0.850		0.830		0.800		0.760
Ivy Global Real Estate Fund	0.950		0.950		0.920		0.870		0.840
Ivy Global Risk-Managed Real Estate Fund	0.950		0.950		0.920		0.870		0.840
Ivy Real Estate Securities Fund	0.900		0.900		0.870		0.840		0.800
Ivy Science and Technology Fund	0.850		0.850		0.830		0.800		0.760

For Funds managed solely by IICO, 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. See Expense Reimbursements and/or Waivers below for amounts waived during the period ended September 30, 2013.

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

Under an agreement between IICO and Mackenzie Financial Corporation (“Mackenzie”), Mackenzie served as subadviser to Ivy Global Natural Resources Fund through July 1, 2013. As a result of the planned retirement of Frederick Sturm as portfolio manager of the subadvised Ivy Global Natural Resources Fund, IICO internalized the management of the Fund effective July 2, 2013. Under an agreement between IICO and Advantus Capital Management, Inc. (“Advantus”), Advantus serves as subadviser to Ivy Real Estate Securities Fund. Under an agreement between IICO and LaSalle Investment Management Securities, LLC (“LaSalle US”), LaSalle US serves as subadviser to Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund. Each subadviser makes investment decisions in accordance with the Fund’s investment objectives, policies and restrictions under the supervision of IICO and the oversight of the Board. IICO pays all costs applicable of the subadvisers.

Accounting Services Fees. The Trust has an Accounting Services Agreement with WRSCO, doing business as WI Services Company (“WISC”), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund pays WISC a monthly fee of one-twelfth of the annual fee based on the average net asset levels shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.00	$	11.50	$	23.10	$	35.50	$	48.40	$	63.20	$	82.50	$	96.30	$	121.60	$	148.50

In addition, for each class of shares in excess of one, each Fund pays WISC a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.

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

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, 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, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958 per account; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, InvestEd Portfolios and Ivy Funds) reaches certain levels. Effective June 6, 2011 for Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.25 of 1% of the average daily net assets of the class for the preceding month. Prior to June 6, 2011 the fee was 0.20 of 1%. For Class I and Class Y shares, each Fund pays a monthly fee equal to one-twelfth of 0.15 of 1% of the average daily net assets of the class for the preceding month. Each Fund also reimburses WISC for certain out-of-pocket costs for all classes.

Networked accounts. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WISC has agreed to reduce its per account fees charged to the Funds to $0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. If the aggregate annual rate of the WISC transfer agent fee and the costs charged by the financial services companies exceeds $18.00 per account for a Fund, WISC will reimburse the Fund the amount in excess of $18.00.

2013 SEMIANNUAL REPORT 81

Broker accounts. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WISC if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. Each Fund may pay such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Distribution and Service Plan. Class A and Class E Shares. Under a Distribution and Service Plan adopted by the Trust pursuant to Rule 12b-1 under the 1940 Act (the “Distribution and Service Plan”), each Fund may pay a distribution and/or service fee to Ivy Funds Distributors, Inc. (“IFDI”) for Class A and Class E shares 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 and Class E shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts of that class.

Class B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund’s average annual net assets for Class B and Class C shares 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.

Class R Shares. Under the Distribution and Service 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 Fund, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.

Class Y Shares. Under the Distribution and Service 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.

Sales Charges. As principal underwriter for the Trust’s shares, IFDI receives sales commissions (which are not an expense of the Trust) for sales of Class A and Class E shares. A 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 period ended September 30, 2013, IFDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC									Commissions Paid(1)
			Class A			Class B		Class C		Class E
Ivy Asset Strategy Fund	$	1,640	$	38		$	580	$	229	$	—	$	6,459
Ivy Asset Strategy New Opportunities Fund		69		—	*		14		2		—		88
Ivy Balanced Fund		589		2			32		24		—		1,778
Ivy Energy Fund		52		—	*		2		1		—		94
Ivy Global Natural Resources Fund		373		4			54		12		—		416
Ivy Global Real Estate Fund		27		—	*		—		—		—		27
Ivy Global Risk-Managed Real Estate Fund		15		—	*		—		—		—		14
Ivy Real Estate Securities Fund		252		—	*		4		1		—		262
Ivy Science and Technology Fund		763		10			27		28		—		1,945

* Not shown due to rounding.

(1) IFDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers.

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2013 were as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement		Expense Reduced
Ivy Asset Strategy Fund	Class E	Contractual	8-1-2008	7-31-2014	1.00%	$	46	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	203	12b-1 Fees and/or Shareholder Servicing
Ivy Asset Strategy New Opportunities Fund	Class A	Contractual	5-3-2010	7-31-2014	1.50%	$	234	12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	5-3-2010	7-31-2013	1.50%	$	—	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	5-3-2010	7-31-2014	1.25%	$	15	Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	3	12b-1 Fees and/or Shareholder Servicing
Ivy Balanced Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A

82 SEMIANNUAL REPORT 2013

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Reduced
Ivy Energy Fund	Class A	Contractual	8-1-2008	7-31-2014	1.60%	$	9		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Global Natural Resources Fund	Class E	Contractual	8-1-2008	7-31-2014	1.27%	$	29		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		12b-1 Fees and/or Shareholder Servicing
Ivy Global Real Estate Fund	All Classes	Contractual	4-1-2013	7-31-2014	N/A	$	62	(1)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2014	1.51%	$	29		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2014	Not to exceed Class A	$	—		12b-1 Fees and/or Shareholder Servicing
Ivy Global Risk-Managed Real Estate Fund	All Classes	Contractual	4-1-2013	7-31-2014	N/A	$	18	(1)	Investment Management Fee
	Class A	Contractual	4-1-2013	7-31-2014	1.51%	$	29		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	4-1-2013	7-31-2014	Not to exceed Class A	$	6		12b-1 Fees and/or Shareholder Servicing
Ivy Real Estate Securities Fund	All Classes	Contractual	12-3-2012	7-31-2014	N/A	$	278	(2)	Investment Management Fee
	Class E	Contractual	8-1-2008	7-31-2014	1.67%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Science and Technology Fund	Class E	Contractual	8-1-2008	7-31-2014	1.43%	$	16		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A

(1) Due to Class A and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

(2) The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2014.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2013 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

8. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2013 follows:

	3-31-13 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received		9-30-13 Share Balance		9-30-13 Value
Ivy Asset Strategy Fund
Apollo Global Management, LLC		7,863	$	—	$	24,012	$	18,875	$	—		6,204	$	175,312
Carlyle Group L.P. (The)(1)		4,846		—		101,176		48,795		—		N/A		N/A
Galaxy Entertainment Group Limited, ADR		255,009		3,705		103,705		79,474		—		228,611		1,603,481
Wynn Resorts, Limited		9,492		—		230,770		312,699		16,280		5,551		877,104
							$	459,843	$	16,280			$	2,655,897

2013 SEMIANNUAL REPORT 83

	3-31-13 Share Balance	Purchases at Cost		Sales at Cost		Realized Gain/(Loss)		Distributions Received		9-30-13 Share Balance		9-30-13 Value
Ivy Science and Technology Fund
Acxiom Corporation(1)	N/A	$	21,335	$	—	$	—	$	—		4,106	$	116,572
BioAmber Inc.(1)	N/A		1,487		—		—		—		1,352		6,625
ESCO Technologies Inc.	N/A		10,274		—		—		201		1,411		46,881
WNS (Holdings) Limited, ADR(1)	N/A		16,228		—		—		—		2,896		61,450
						$	—	$	201			$	231,528

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

9. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2013, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Asset Strategy Fund	$	—	$	9,079,797	$	823	$	9,283,171
Ivy Asset Strategy New Opportunities Fund		—		104,267		—		174,074
Ivy Balanced Fund		33,338		519,692		2,427		146,856
Ivy Energy Fund		—		37,896		—		12,149
Ivy Global Natural Resources Fund		—		1,383,384		—		1,932,587
Ivy Global Real Estate Fund		—		22,631		—		1,998
Ivy Global Risk-Managed Real Estate Fund		—		38,752		—		6,048
Ivy Real Estate Securities Fund		—		108,042		—		88,663
Ivy Science and Technology Fund		—		1,380,624		—		493,725

10. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund.

Transactions in shares of beneficial interest were as follows:

	Ivy Asset Strategy Fund												Ivy Asset Strategy New Opportunities Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		31,908		$	890,476			59,356		$	1,511,047			3,406		$	36,622			4,374		$	45,604
Class B		1,271			34,229			2,986			72,878			27			286			61			616
Class C		19,636			532,373			37,463			927,770			166			1,741			648			6,616
Class E		185			5,158			395			10,060			10			115			—			—
Class I		62,422			1,749,331			115,146			2,970,410			441			4,827			1,256			13,036
Class R		859			23,812			1,688			42,599			38			430			41			448
Class Y		5,963			166,614			12,220			310,190			18			198			599			6,254
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			6,676			169,910			—			—			91			957
Class B		—			—			312			7,728			—			—			—			—
Class C		—			—			3,445			85,567			—			—			1			11
Class E		—			—			52			1,329			—			—			—			—
Class I		—			—			5,979			153,252			—			—			25			259
Class R		—			—			75			1,900			—			—			—	*		1
Class Y		—			—			1,002			25,557			—			—			5			56
Shares redeemed:
Class A		(35,435	)		(984,771	)		(90,813	)		(2,277,463	)		(4,105	)		(44,105	)		(8,685	)		(88,776	)
Class B		(1,867	)		(50,186	)		(4,355	)		(105,681	)		(91	)		(951	)		(204	)		(2,056	)
Class C		(24,435	)		(659,916	)		(65,934	)		(1,605,676	)		(1,036	)		(10,903	)		(2,942	)		(29,515	)
Class E		(117	)		(3,275	)		(262	)		(6,593	)		(10	)		(114	)		—			—
Class I		(41,933	)		(1,178,899	)		(84,570	)		(2,145,764	)		(1,619	)		(17,446	)		(3,952	)		(40,433	)
Class R		(791	)		(21,824	)		(1,199	)		(30,092	)		(38	)		(430	)		(38	)		(415	)
Class Y		(5,451	)		(152,115	)		(15,908	)		(404,785	)		(97	)		(1,040	)		(467	)		(4,765	)
Net increase (decrease)		12,215		$	351,007			(16,246	)	$	(285,857	)		(2,890	)	$	(30,770	)		(9,187	)	$	(92,102	)

* Not shown due to rounding.

84 SEMIANNUAL REPORT 2013

	Ivy Balanced Fund												Ivy Energy Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		11,711		$	262,965			10,750		$	219,142			2,141		$	29,870			1,987		$	24,343
Class B		732			16,292			1,115			22,410			35			475			66			764
Class C		6,234			139,249			6,169			124,947			526			7,050			316			3,749
Class E		—			—			7			134			—			—			10			123
Class I		3,263			73,516			2,191			44,569			253			3,683			339			4,284
Class R		24			546			12			250			75			1,050			41			529
Class Y		1,214			27,371			2,158			43,417			445			6,534			412			5,112
Shares issued in reinvestment of distributions to shareholders:
Class A		29			664			204			4,088			—			—			—			—
Class B		—			—			15			304			—			—			—			—
Class C		—			—			73			1,460			—			—			—			—
Class E		—	*		—	*		—			—			—			—			—			—
Class I		8			190			26			529			—			—			—			—
Class R		—			—			—			—			—			—			—			—
Class Y		5			122			58			1,154			—			—			—			—
Shares redeemed:
Class A		(2,328	)		(52,245	)		(2,749	)		(55,865	)		(954	)		(13,389	)		(2,762	)		(33,587	)
Class B		(139	)		(3,096	)		(256	)		(5,141	)		(25	)		(328	)		(91	)		(1,052	)
Class C		(820	)		(18,284	)		(1,227	)		(24,685	)		(217	)		(2,869	)		(542	)		(6,257	)
Class E		—			—			(7	)		(131	)		—			—			(10	)		(115	)
Class I		(327	)		(7,305	)		(1,082	)		(21,804	)		(99	)		(1,402	)		(279	)		(3,452	)
Class R		(13	)		(290	)		—	*		—	*		(21	)		(294	)		(20	)		(278	)
Class Y		(605	)		(13,533	)		(1,575	)		(32,002	)		(152	)		(2,151	)		(324	)		(4,029	)
Net increase (decrease)		18,988		$	426,162			15,882		$	322,776			2,007		$	28,229			(857	)	$	(9,866	)

* Not shown due to rounding.

	Ivy Global Natural Resources Fund												Ivy Global Real Estate Fund(1)						Ivy Global Risk- Managed Real Estate Fund(1)
	Six months ended 9-30-13						Year ended 3-31-13						Period from 4-1-2013 to 9-30-13						Period from 4-1-2013 to 9-30-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,903		$	66,916			12,987		$	216,722			1,977		$	19,745			2,652		$	26,941
Class B		53			802			239			3,520			44			453			201			2,067
Class C		450			6,616			1,662			23,909			101			1,048			416			4,276
Class E		23			400			64			1,089			N/A			N/A			N/A			N/A
Class I		1,840			32,301			9,794			170,918			381			3,926			1,709			17,567
Class R		258			4,375			724			11,953			80			828			400			4,111
Class Y		583			10,107			3,441			57,913			120			1,246			599			6,166
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			146			2,402			—			—			—			—
Class B		—			—			—			—			—			—			—			—
Class C		—			—			—			—			—			—			—			—
Class E		—			—			1			22			N/A			N/A			N/A			N/A
Class I		—			—			122			2,059			—			—			—			—
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			55			913			—			—			—			—
Shares redeemed:
Class A		(18,796	)		(322,674	)		(35,684	)		(595,908	)		(236	)		(2,447	)		(1,028	)		(10,685	)
Class B		(1,127	)		(16,886	)		(2,937	)		(43,628	)		(20	)		(217	)		(100	)		(1,056	)
Class C		(5,444	)		(80,048	)		(14,246	)		(204,042	)		(47	)		(494	)		(201	)		(2,121	)
Class E		(36	)		(629	)		(79	)		(1,355	)		N/A			N/A			N/A			N/A
Class I		(12,780	)		(221,897	)		(45,904	)		(786,039	)		(173	)		(1,846	)		(851	)		(8,995	)
Class R		(555	)		(9,413	)		(1,662	)		(27,485	)		(40	)		(428	)		(200	)		(2,112	)
Class Y		(2,994	)		(52,213	)		(20,519	)		(347,616	)		(60	)		(641	)		(300	)		(3,168	)
Net increase (decrease)		(34,622	)	$	(582,243	)		(91,796	)	$	(1,514,653	)		2,127		$	21,173			3,297		$	32,991

(1) Period from April 1, 2013 (commencement of operations) to September 30, 2013.

2013 SEMIANNUAL REPORT 85

	Ivy Real Estate Securities Fund												Ivy Science and Technology Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		3,509		$	83,377			4,703		$	104,809			10,571		$	456,683			7,564		$	266,910
Class B		37			861			85			1,845			391			14,829			285			8,774
Class C		102			2,427			225			4,908			4,070			159,786			1,852			59,917
Class E		13			301			26			574			45			1,888			66			2,289
Class I		103			2,464			195			4,393			9,381			436,690			4,241			160,625
Class R		13			311			52			1,159			473			20,092			656			22,480
Class Y		400			9,678			1,239			27,593			4,837			218,244			5,598			204,761
Shares issued in reinvestment of distributions to shareholders:
Class A		73			1,677			89			1,951			—	*		—	*		84			2,913
Class B		—			—			—			—			—	*		—	*		6			172
Class C		1			20			—	*		4			—			—			34			1,068
Class E		—	*		8			—	*		9			—	*		—	*		1			41
Class I		2			53			2			56			—			—			24			912
Class R		—	*		5			—	*		8			—			—			7			227
Class Y		44			1,018			68			1,497			—			—			57			2,088
Shares redeemed:
Class A		(2,420	)		(56,902	)		(3,277	)		(72,501	)		(2,637	)		(113,503	)		(4,933	)		(168,755	)
Class B		(57	)		(1,324	)		(135	)		(2,898	)		(120	)		(4,554	)		(226	)		(6,780	)
Class C		(98	)		(2,267	)		(165	)		(3,584	)		(570	)		(22,042	)		(1,322	)		(41,084	)
Class E		(5	)		(120	)		(8	)		(176	)		(10	)		(451	)		(25	)		(850	)
Class I		(70	)		(1,615	)		(71	)		(1,609	)		(1,151	)		(54,133	)		(1,910	)		(69,844	)
Class R		(23	)		(562	)		(41	)		(916	)		(208	)		(8,820	)		(503	)		(16,977	)
Class Y		(887	)		(20,893	)		(1,266	)		(27,900	)		(1,698	)		(76,781	)		(3,786	)		(134,447	)
Net increase		737		$	18,517			1,721		$	39,222			23,374		$	1,027,928			7,770		$	294,440

* Not shown due to rounding.

11. FEDERAL INCOME TAX MATTERS ($ amounts in thousands)

For Federal income tax purposes, cost of investments owned at September 30, 2013 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Asset Strategy Fund	$	23,604,287	$	7,652,447	$	558,577	$	7,093,870
Ivy Asset Strategy New Opportunities Fund		216,179		36,397		12,060		24,337
Ivy Balanced Fund		1,154,608		186,099		2,264		183,835
Ivy Energy Fund		117,131		52,277		1,506		50,771
Ivy Global Natural Resources Fund		1,713,604		327,034		100,063		226,971
Ivy Global Real Estate Fund		21,018		384		878		(494	)
Ivy Global Risk-Managed Real Estate Fund		32,750		509		2,242		(1,733	)
Ivy Real Estate Securities Fund		418,264		116,796		6,078		110,718
Ivy Science and Technology Fund		2,534,239		1,028,612		41,441		987,171

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2013 and the post-October and late-year ordinary activity updated with information available through the date of this report were as follows:

Fund	Distributed Ordinary Income		Undistributed Ordinary Income		Distributed Long-Term Capital Gains		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late- Year Ordinary Losses Deferred
Ivy Asset Strategy Fund	$	595,225	$	—	$	—	$	—	$	—	$	—	$	—
Ivy Asset Strategy New Opportunities Fund		1,483		—		—		—		—		2,654		1,728
Ivy Balanced Fund		5,229		1,427		3,858		8,830		—		—		—
Ivy Energy Fund		—		—		—		—		—		—		205
Ivy Global Natural Resources Fund		6,701		—		—		—		—		210,183		7,176
Ivy Real Estate Securities Fund		3,580		1,778		—		—		—		—		—
Ivy Science and Technology Fund		—		—		8,262		52,919		—		—		3,398

86 SEMIANNUAL REPORT 2013

Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal year late-year ordinary losses that arise from the netting of activity generated between each November 1 and the end of its fiscal year on certain specified ordinary items.

Accumulated capital losses represent net capital loss carryovers as of March 31, 2013 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act is March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a RIC during the year ended March 31, 2013:

	Pre-Enactment													Post-Enactment
Fund	2014		2015		2016			2017		2018		2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Asset Strategy Fund	$	—	$	—	$	—	��	$	317,748	$	1,651,528	$	959,230	$	—	$	—
Ivy Asset Strategy New Opportunities Fund		—		—		—			—		—		606		48,200		28,017
Ivy Balanced Fund		—		—		—			—		—		—		—		—
Ivy Energy Fund		—		—		—			2,319		9,795		—		2,347		—
Ivy Global Natural Resources Fund		—		—		—			—		1,529,206		—		188,072		267,093
Ivy Real Estate Securities Fund		—		—		—			—		27,830		—		—		—
Ivy Science and Technology Fund		—		—		—			—		—		—		—		—

2013 SEMIANNUAL REPORT 87

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT

Ivy Funds

At a meeting of the Board of Trustees of Ivy Funds (the “Trust”) held on August 12^th and 13^th, 2013, the Trustees, including all of the Trustees who are not “interested persons,” as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the Investment Management Agreement between Ivy Investment Management Company (“IICO”) and the Trust and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Bond Fund and Ivy Real Estate Securities Fund)

• Mackenzie Financial Corporation (with respect to Ivy Cundill Global Value Fund)

• Wall Street Associates (with respect to Ivy Micro Cap Growth Fund)

• LaSalle Securities (Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund)

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

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a “Fund,” and together, the “Funds”), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at an executive session of the Independent Trustees on August 12^th, as well as the August 13^th Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request lists submitted on their behalf by counsel. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as, managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered the benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing, administrative and fund accounting services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of an investment advisory agreement with IICO or any investment subadvisory agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. In that context, the Board discussed the current level of the Funds’ advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. The Board concluded that the Funds’ asset sizes and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. Specifically, the Board examined the investment performance of each Fund, including quintile ranking for short- and long-term time periods and each Fund’s performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the

88 SEMIANNUAL REPORT 2013

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

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund’s expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to other accounts in the same asset class for certain Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to those other accounts. The Board also took into account the information on IICO’s profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund’s average account size and how those factors affect the Funds’ expense ratios, noting that, as the Funds’ assets have increased over time, the expense ratios of the Funds generally have fallen. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

During August of 2013, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds (collectively, the “Ivy Funds” and any separate series thereof an “Ivy Fund”) reviewed a substantial amount of information in connection with considering the continuation of the existing investment management agreement currently in effect between Ivy Investment Management Company (“IICO”) and the Ivy Funds. The Disinterested Trustees of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Ivy Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent 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 agreement, and profit margins of IICO and its affiliates from supplying such services

5. Possible economies of scale as an Ivy Fund grows larger

The following summarizes the findings of the independent fee consultant retained by the Disinterested Trustees.¹

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the three-year period ended March 31, 2013, when compared to their respective peer groups established by Lipper, Inc. (“Lipper”), approximately 21% of the Ivy Funds were in the top quintile of performance and 39% of the Ivy Funds were in the top two quintiles of performance. The independent fee consultant noted that the Ivy Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, economic analysis, ability to serve small account sizes and an effective trading infrastructure, and that these factors offer the Ivy Funds a reasonable expectation of strong investment and service performance over the long term.

The report stated that for the 12 months ended March 31, 2013, the total expense ratios of the Ivy Funds were 3% below the mean total expense ratios of comparable Lipper Expense Group peers and 14% below the mean total expense ratios of funds in the comparable Lipper Expense Universes. The management fees for the Ivy Funds on average were approximately 7% below the mean management fees for their Lipper Expense Groups and Lipper Expense Universes. The independent fee consultant noted that the Ivy Funds’ small average account size introduces certain biases in the Lipper analyses that generally work against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

The report also stated that the management fees IICO charges to the Ivy Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, based on industry data, the average spread between management fees charged to the Ivy Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.

The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds appears to be reasonable. The report noted that IICO’s overall profitability from managing the Ivy Funds and its other operations is at the median of most similarly-sized, publicly traded mutual fund managers and appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.

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 to IICO, as a percentage of 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 average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2013. Lipper report data reflects Class A shares.

2013 SEMIANNUAL REPORT 89

The report stated that the independent fee consultant found the Ivy Funds’ fees and expenses reasonable in light of any possible economies of scale that may exist. The report went on to state that the Ivy Funds’ shareholders are generally benefiting from lower expense ratios resulting from lower management fees through growth in assets and savings generated in non-management expenses.

Conclusions

The independent fee consultant believes that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds in the previous twelve months are reasonable and provide adequate justification for renewal of the Ivy Funds’ existing advisory agreements.

90 SEMIANNUAL REPORT 2013

PROXY VOTING INFORMATION

Ivy Funds

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission’s (SEC) website at www.sec.gov.

Proxy Voting Records

Information regarding how the Trust 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

Ivy Funds

Portfolio holdings can be found on the Trust’s website at www.ivyfunds.com. Alternatively, a complete schedule of portfolio holdings of each Fund for the first and third quarters of each fiscal year is filed with the SEC and can be found on the Trust’s Form N-Q. These holdings may be viewed 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.

TO ALL TRADITIONAL IRA PLANHOLDERS:

Ivy Funds

As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed representative or by submitting Internal Revenue Service Form W–4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.

2013 SEMIANNUAL REPORT 91

This page intentionally left blank.

92 SEMIANNUAL REPORT 2013

This page intentionally left blank.

2013 SEMIANNUAL REPORT 93

This page intentionally left blank.

94 SEMIANNUAL REPORT 2013

The Ivy Funds Family

Domestic Equity Funds

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Global/International Funds

Ivy Cundill Global Value Fund

Ivy European Opportunities Fund

Ivy Global Equity Income Fund

Ivy Global Income Allocation Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Managed European/Pacific Fund

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund

Specialty Funds

Ivy Asset Strategy Fund

Ivy Asset Strategy New Opportunities Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Global Real Estate Fund

Ivy Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

1.800.777.6472

Visit us online at www.ivyfunds.com

The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus, or summary prospectus, carefully before investing.

2013 SEMIANNUAL REPORT 95

SEMIANN-IVYSPEC (9-13)

Semiannual Report

September 30, 2013

Ivy Funds

Ivy Bond Fund

Ivy Core Equity Fund

Ivy Cundill Global Value Fund

Ivy Dividend Opportunities Fund

Ivy European Opportunities Fund

Ivy Global Bond Fund

Ivy Global Equity Income Fund

Ivy Global Income Allocation Fund

Ivy High Income Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Large Cap Growth Fund

Ivy Limited-Term Bond Fund

Ivy Managed European/Pacific Fund

Ivy Managed International Opportunities Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Money Market Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

Ivy Pacific Opportunities Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

 

CONTENTS

Ivy Funds

President’s Letter	3
Illustration of Fund Expenses	4
Portfolio Highlights and Schedule of Investments:
Ivy Bond Fund	10
Ivy Core Equity Fund	19
Ivy Cundill Global Value Fund	22
Ivy Dividend Opportunities Fund	26
Ivy European Opportunities Fund	29
Ivy Global Bond Fund	32
Ivy Global Equity Income Fund	38
Ivy Global Income Allocation Fund	41
Ivy High Income Fund	47
Ivy International Core Equity Fund	56
Ivy International Growth Fund	60
Ivy Large Cap Growth Fund	63
Ivy Limited-Term Bond Fund	66
Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund	71
Ivy Micro Cap Growth Fund	73
Ivy Mid Cap Growth Fund	77
Ivy Money Market Fund	81
Ivy Municipal Bond Fund	85
Ivy Municipal High Income Fund	94
Ivy Pacific Opportunities Fund	105
Ivy Small Cap Growth Fund	109
Ivy Small Cap Value Fund	112
Ivy Tax-Managed Equity Fund	115
Ivy Value Fund	118
Statements of Assets and Liabilities	121
Statements of Operations	125
Statements of Changes in Net Assets	129
Financial Highlights	138
Notes to Financial Statements	188
Renewal of Investment Management Agreement	214
Proxy Voting Information	217
Quarterly Portfolio Schedule Information	217
IRA Disclosure	217

This report is submitted for the general information of the shareholders of Ivy Funds. It is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by a current Ivy Funds prospectus, or summary prospectus, and current performance information, including current Lipper ranking information.

2 SEMIANNUAL REPORT 2013

PRESIDENT’S LETTER

Ivy Funds SEPTEMBER 30, 2013 (UNAUDITED)

Henry J. Herrmann, CFA

Dear Shareholder,

The year since our last report to you continued the volatility trend that seems to have become the norm. Again this year, the key culprits were politics, geopolitical concerns and confusing policy communication by central bankers.

Markets became increasingly volatile over the summer as bond yields rose and stocks fell amid speculation that the Federal Reserve (Fed) was preparing to taper its quantitative easing program. Yields reversed course and stocks moved higher when the Fed did nothing in September. The Fed’s decision provided only a brief respite before concerns began to swell around Congress’ failure to reach a budget agreement. Lack of a budget prompted fears that there would be a similar impasse on the October debate about increasing the debt ceiling, which could lead to a downgrade of U.S. debt or even default.

At the end of September, the benchmark 10-year Treasury was yielding 2.64%, compared with 1.65% a year earlier and 1.78% at the start of the calendar year. Amid the turmoil, the S&P 500 Index reached a new record high in late September of 1,725.52 before moving slightly lower by the end of the fiscal year.

Despite these issues, and the occasional market swings they can cause, the U.S. economy continued its steady growth, although at a slow pace. We’ve seen improvement in several key indicators, including gross domestic product, jobs growth, retail sales and the housing market. Internationally, a spike in China’s overnight interbank lending rates and violent unrest in Syria, Turkey, Brazil and Egypt unsettled investors during the year and hurt currencies, fixed-income and equity markets in developing countries broadly.

Economic Snapshot

	9/30/13		3/31/13
S&P 500 Index		1,681.55		1,569.19
MSCI EAFE Index		1,818.23		1,674.30
10-Year Treasury Yield		2.64%		1.87%
U.S. unemployment rate		7.3%		7.6%
30-year fixed mortgage rate		4.28%		3.68%
Oil price per barrel	$	102.33	$	97.23

Sources: Bloomberg, U.S. Department of Labor, Bankrate, CME

All government statistics shown are subject to periodic revision. The S&P 500 Index is an unmanaged index that tracks the stocks of 500 primarily large-cap U.S. companies. MSCI EAFE Index is an unmanaged index comprised of securities that represent the securities markets in Europe, Australasia and the Far East. Annualized yield to maturity is the rate of return anticipated on a bond if it is held until the maturity date. It is not possible to invest directly in any of these indexes. Mortgage rates are from BankRate and reflect the overnight national average rate on a conventional 30-year fixed loan. Oil prices reflect the market price of West Texas intermediate grade crude.

As always, we thank you for your continued trust and partnership.

Respectfully,

Henry J. Herrmann, CFA

President

The opinions expressed in this letter are those of the President of the Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.

2013 SEMIANNUAL REPORT 3

ILLUSTRATION OF FUND EXPENSES

Ivy Funds (UNAUDITED)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, redemption fees and exchange fees; and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. The following table is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the six-month period ended September 30, 2013.

Actual Expenses

The first section in the following table provides information about actual account values and actual expenses for each share class. You may use the information in this section, 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 section 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 table. 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 table, a customer is charged an annual fee of $18 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 following table. Additional fees have the effect of reducing investment returns.

Hypothetical Example for Comparison Purposes

The second section in the following table provides information about hypothetical account values and hypothetical expenses for each share class based on the Fund’s actual expense ratio and an assumed rate of return of five percent per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this five percent hypothetical example with the five percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table 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 section in the table 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.

Expenses paid may be impacted by expense reduction arrangements. If those arrangements had not been in place, expenses paid would have been higher. See Note 6 to the Financial Statements for further information.

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Bond Fund
Class A	$	1,000	$	979.60	$	5.15	$	1,000	$	1,019.83	$	5.25		1.05%
Class B	$	1,000	$	975.10	$	9.78	$	1,000	$	1,015.16	$	9.98		1.98%
Class C	$	1,000	$	975.80	$	8.89	$	1,000	$	1,016.04	$	9.07		1.80%
Class E	$	1,000	$	979.10	$	5.64	$	1,000	$	1,019.34	$	5.76		1.14%
Class I	$	1,000	$	980.90	$	3.86	$	1,000	$	1,021.12	$	3.94		0.79%
Class R	$	1,000	$	978.10	$	6.73	$	1,000	$	1,018.29	$	6.86		1.35%
Class Y	$	1,000	$	979.60	$	4.95	$	1,000	$	1,020.03	$	5.05		1.00%
Ivy Core Equity Fund
Class A	$	1,000	$	1,107.00	$	6.11	$	1,000	$	1,019.30	$	5.86		1.15%
Class B	$	1,000	$	1,102.00	$	11.14	$	1,000	$	1,014.47	$	10.68		2.11%
Class C	$	1,000	$	1,102.50	$	10.30	$	1,000	$	1,015.28	$	9.87		1.95%
Class E	$	1,000	$	1,106.40	$	7.16	$	1,000	$	1,018.30	$	6.86		1.35%
Class I	$	1,000	$	1,108.80	$	4.43	$	1,000	$	1,020.85	$	4.24		0.84%
Class R	$	1,000	$	1,105.50	$	8.00	$	1,000	$	1,017.44	$	7.67		1.52%
Class Y	$	1,000	$	1,108.80	$	4.43	$	1,000	$	1,020.85	$	4.24		0.84%

See footnotes on page 9.

4 SEMIANNUAL REPORT 2013

ILLUSTRATION OF FUND EXPENSES

Ivy Funds

     (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Cundill Global Value Fund
Class A	$	1,000	$	1,153.30	$	8.83	$	1,000	$	1,016.89	$	8.27		1.63%
Class B	$	1,000	$	1,147.00	$	14.92	$	1,000	$	1,011.18	$	13.98		2.79%
Class C	$	1,000	$	1,150.10	$	12.15	$	1,000	$	1,013.79	$	11.38		2.26%
Class E	$	1,000	$	1,153.60	$	8.61	$	1,000	$	1,017.10	$	8.07		1.59%
Class I	$	1,000	$	1,156.20	$	6.25	$	1,000	$	1,019.22	$	5.86		1.17%
Class R	$	1,000	$	1,152.60	$	9.26	$	1,000	$	1,016.43	$	8.67		1.73%
Class Y	$	1,000	$	1,154.80	$	7.33	$	1,000	$	1,018.26	$	6.86		1.32%
Ivy Dividend Opportunities Fund
Class A	$	1,000	$	1,079.70	$	6.66	$	1,000	$	1,018.68	$	6.46		1.27%
Class B	$	1,000	$	1,074.80	$	10.79	$	1,000	$	1,014.64	$	10.48		2.08%
Class C	$	1,000	$	1,075.70	$	10.17	$	1,000	$	1,015.30	$	9.87		1.95%
Class E	$	1,000	$	1,078.90	$	7.17	$	1,000	$	1,018.20	$	6.96		1.37%
Class I	$	1,000	$	1,081.00	$	4.89	$	1,000	$	1,020.32	$	4.75		0.95%
Class R	$	1,000	$	1,077.40	$	8.10	$	1,000	$	1,017.31	$	7.87		1.55%
Class Y	$	1,000	$	1,080.00	$	6.24	$	1,000	$	1,019.08	$	6.06		1.19%
Ivy European Opportunities Fund
Class A	$	1,000	$	1,087.50	$	9.39	$	1,000	$	1,016.06	$	9.07		1.80%
Class B	$	1,000	$	1,081.20	$	15.40	$	1,000	$	1,010.24	$	14.88		2.95%
Class C	$	1,000	$	1,084.20	$	12.61	$	1,000	$	1,012.93	$	12.18		2.42%
Class E**	$	1,000	$	1,090.20	$	7.00	$	1,000	$	1,018.34	$	6.76		1.34%
Class I	$	1,000	$	1,090.90	$	6.27	$	1,000	$	1,019.03	$	6.06		1.21%
Class R	$	1,000	$	1,087.40	$	9.39	$	1,000	$	1,016.02	$	9.07		1.81%
Class Y	$	1,000	$	1,089.70	$	7.63	$	1,000	$	1,017.74	$	7.36		1.46%
Ivy Global Bond Fund
Class A	$	1,000	$	991.30	$	4.98	$	1,000	$	1,020.10	$	5.05		0.99%
Class B	$	1,000	$	986.70	$	8.64	$	1,000	$	1,016.34	$	8.77		1.74%
Class C	$	1,000	$	987.70	$	8.65	$	1,000	$	1,016.34	$	8.77		1.74%
Class I	$	1,000	$	992.60	$	3.69	$	1,000	$	1,021.36	$	3.74		0.74%
Class R	$	1,000	$	987.90	$	7.45	$	1,000	$	1,017.61	$	7.57		1.49%
Class Y	$	1,000	$	990.40	$	4.98	$	1,000	$	1,020.11	$	5.05		0.99%
Ivy Global Equity Income Fund
Class A	$	1,000	$	1,085.60	$	6.78	$	1,000	$	1,018.55	$	6.56		1.30%
Class B	$	1,000	$	1,082.10	$	10.72	$	1,000	$	1,014.74	$	10.38		2.06%
Class C	$	1,000	$	1,083.00	$	10.42	$	1,000	$	1,015.05	$	10.08		2.00%
Class I	$	1,000	$	1,088.50	$	4.91	$	1,000	$	1,020.36	$	4.75		0.94%
Class R	$	1,000	$	1,084.40	$	8.86	$	1,000	$	1,016.60	$	8.57		1.69%
Class Y	$	1,000	$	1,087.10	$	6.26	$	1,000	$	1,019.10	$	6.06		1.19%

See footnotes on page 9.

2013 SEMIANNUAL REPORT 5

ILLUSTRATION OF FUND EXPENSES

Ivy Funds

     (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Global Income Allocation Fund
Class A	$	1,000	$	1,025.50	$	6.99	$	1,000	$	1,018.19	$	6.96		1.37%
Class B	$	1,000	$	1,020.40	$	11.72	$	1,000	$	1,013.47	$	11.68		2.31%
Class C	$	1,000	$	1,021.70	$	10.21	$	1,000	$	1,014.97	$	10.18		2.02%
Class E	$	1,000	$	1,025.60	$	6.79	$	1,000	$	1,018.40	$	6.76		1.33%
Class I	$	1,000	$	1,028.30	$	4.67	$	1,000	$	1,020.43	$	4.65		0.93%
Class R	$	1,000	$	1,024.50	$	7.90	$	1,000	$	1,017.26	$	7.87		1.56%
Class Y	$	1,000	$	1,026.40	$	6.08	$	1,000	$	1,019.02	$	6.06		1.17%
Ivy High Income Fund
Class A	$	1,000	$	1,026.90	$	4.76	$	1,000	$	1,020.40	$	4.75		0.93%
Class B	$	1,000	$	1,023.00	$	8.50	$	1,000	$	1,016.63	$	8.47		1.68%
Class C	$	1,000	$	1,023.20	$	8.30	$	1,000	$	1,016.82	$	8.27		1.65%
Class E	$	1,000	$	1,024.60	$	6.88	$	1,000	$	1,018.25	$	6.86		1.36%
Class I	$	1,000	$	1,028.10	$	3.55	$	1,000	$	1,021.57	$	3.54		0.70%
Class R	$	1,000	$	1,025.10	$	6.58	$	1,000	$	1,018.58	$	6.56		1.29%
Class Y	$	1,000	$	1,026.90	$	4.76	$	1,000	$	1,020.40	$	4.75		0.93%
Ivy International Core Equity Fund
Class A	$	1,000	$	1,115.70	$	7.51	$	1,000	$	1,017.94	$	7.16		1.42%
Class B	$	1,000	$	1,110.40	$	11.92	$	1,000	$	1,013.77	$	11.38		2.25%
Class C	$	1,000	$	1,111.60	$	11.09	$	1,000	$	1,014.55	$	10.58		2.10%
Class E	$	1,000	$	1,115.10	$	8.14	$	1,000	$	1,017.40	$	7.77		1.53%
Class I	$	1,000	$	1,117.60	$	5.51	$	1,000	$	1,019.84	$	5.25		1.04%
Class R	$	1,000	$	1,114.50	$	8.67	$	1,000	$	1,016.82	$	8.27		1.64%
Class Y	$	1,000	$	1,116.30	$	6.88	$	1,000	$	1,018.55	$	6.56		1.30%
Ivy International Growth Fund
Class A	$	1,000	$	1,079.10	$	7.80	$	1,000	$	1,017.53	$	7.57		1.50%
Class B	$	1,000	$	1,074.00	$	13.17	$	1,000	$	1,012.41	$	12.78		2.53%
Class C	$	1,000	$	1,074.70	$	12.24	$	1,000	$	1,013.25	$	11.88		2.36%
Class E**	$	1,000	$	1,080.80	$	6.45	$	1,000	$	1,018.84	$	6.26		1.25%
Class I	$	1,000	$	1,081.50	$	5.83	$	1,000	$	1,019.48	$	5.65		1.12%
Class R	$	1,000	$	1,078.10	$	8.94	$	1,000	$	1,016.48	$	8.67		1.72%
Class Y	$	1,000	$	1,079.80	$	7.18	$	1,000	$	1,018.15	$	6.96		1.39%
Ivy Large Cap Growth Fund
Class A	$	1,000	$	1,118.50	$	6.14	$	1,000	$	1,019.30	$	5.86		1.15%
Class B	$	1,000	$	1,112.90	$	11.20	$	1,000	$	1,014.51	$	10.68		2.11%
Class C	$	1,000	$	1,113.40	$	10.14	$	1,000	$	1,015.45	$	9.67		1.92%
Class E	$	1,000	$	1,118.50	$	6.14	$	1,000	$	1,019.30	$	5.86		1.15%
Class I	$	1,000	$	1,119.60	$	4.66	$	1,000	$	1,020.66	$	4.45		0.88%
Class R	$	1,000	$	1,116.50	$	7.83	$	1,000	$	1,017.68	$	7.47		1.47%
Class Y	$	1,000	$	1,119.20	$	5.62	$	1,000	$	1,019.75	$	5.35		1.06%

See footnotes on page 9.

6 SEMIANNUAL REPORT 2013

ILLUSTRATION OF FUND EXPENSES

Ivy Funds

     (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Limited-Term Bond Fund
Class A	$	1,000	$	984.00	$	4.46	$	1,000	$	1,020.61	$	4.55		0.89%
Class B	$	1,000	$	979.90	$	8.61	$	1,000	$	1,016.37	$	8.77		1.74%
Class C	$	1,000	$	980.40	$	8.02	$	1,000	$	1,016.92	$	8.17		1.62%
Class E	$	1,000	$	983.50	$	4.96	$	1,000	$	1,020.05	$	5.05		1.00%
Class I	$	1,000	$	985.20	$	3.18	$	1,000	$	1,021.84	$	3.23		0.64%
Class R	$	1,000	$	982.30	$	6.15	$	1,000	$	1,018.85	$	6.26		1.24%
Class Y	$	1,000	$	984.00	$	4.46	$	1,000	$	1,020.61	$	4.55		0.89%
Ivy Managed European/Pacific Fund
Class A	$	1,000	$	1,019.00	$	3.33	$	1,000	$	1,021.79	$	3.34		0.65%
Class B	$	1,000	$	1,014.30	$	7.96	$	1,000	$	1,017.18	$	7.97		1.58%
Class C	$	1,000	$	1,015.60	$	7.36	$	1,000	$	1,017.80	$	7.36		1.46%
Class E**	$	1,000	$	1,018.90	$	2.73	$	1,000	$	1,022.42	$	2.73		0.53%
Class I	$	1,000	$	1,018.80	$	1.51	$	1,000	$	1,023.59	$	1.52		0.29%
Class R	$	1,000	$	1,017.80	$	3.93	$	1,000	$	1,021.18	$	3.94		0.78%
Class Y	$	1,000	$	1,019.00	$	2.73	$	1,000	$	1,022.37	$	2.73		0.54%
Ivy Managed International Opportunities Fund
Class A	$	1,000	$	1,051.20	$	2.56	$	1,000	$	1,022.57	$	2.53		0.50%
Class B	$	1,000	$	1,047.50	$	7.17	$	1,000	$	1,018.08	$	7.06		1.40%
Class C	$	1,000	$	1,047.30	$	6.45	$	1,000	$	1,018.78	$	6.36		1.26%
Class E**	$	1,000	$	1,051.20	$	2.05	$	1,000	$	1,023.03	$	2.02		0.41%
Class I	$	1,000	$	1,053.30	$	0.92	$	1,000	$	1,024.19	$	0.91		0.17%
Class R	$	1,000	$	1,051.30	$	3.38	$	1,000	$	1,021.79	$	3.34		0.66%
Class Y	$	1,000	$	1,051.30	$	2.05	$	1,000	$	1,023.04	$	2.02		0.41%
Ivy Micro Cap Growth Fund
Class A	$	1,000	$	1,213.20	$	9.52	$	1,000	$	1,016.50	$	8.67		1.71%
Class B	$	1,000	$	1,206.30	$	15.11	$	1,000	$	1,011.33	$	13.78		2.74%
Class C	$	1,000	$	1,208.40	$	13.47	$	1,000	$	1,012.89	$	12.28		2.43%
Class I	$	1,000	$	1,215.90	$	7.09	$	1,000	$	1,018.62	$	6.46		1.28%
Class R	$	1,000	$	1,212.20	$	10.40	$	1,000	$	1,015.67	$	9.47		1.88%
Class Y	$	1,000	$	1,253.50	$	8.90	$	1,000	$	1,017.18	$	7.97		1.57%
Ivy Mid Cap Growth Fund
Class A	$	1,000	$	1,108.80	$	7.38	$	1,000	$	1,018.07	$	7.06		1.40%
Class B	$	1,000	$	1,104.80	$	11.26	$	1,000	$	1,014.35	$	10.78		2.14%
Class C	$	1,000	$	1,105.20	$	10.84	$	1,000	$	1,014.80	$	10.38		2.05%
Class E	$	1,000	$	1,107.50	$	8.43	$	1,000	$	1,017.05	$	8.07		1.60%
Class I	$	1,000	$	1,111.00	$	5.28	$	1,000	$	1,020.10	$	5.05		0.99%
Class R	$	1,000	$	1,107.90	$	8.43	$	1,000	$	1,017.05	$	8.07		1.60%
Class Y	$	1,000	$	1,109.40	$	6.54	$	1,000	$	1,018.84	$	6.26		1.24%

See footnotes on page 9.

2013 SEMIANNUAL REPORT 7

ILLUSTRATION OF FUND EXPENSES

Ivy Funds

     (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Money Market Fund
Class A	$	1,000	$	1,000.10	$	1.10	$	1,000	$	1,023.99	$	1.11		0.22%
Class B***	$	1,000	$	1,000.10	$	1.10	$	1,000	$	1,023.98	$	1.11		0.22%
Class C***	$	1,000	$	1,000.10	$	1.10	$	1,000	$	1,023.99	$	1.11		0.22%
Class E	$	1,000	$	1,000.10	$	1.10	$	1,000	$	1,023.97	$	1.11		0.22%
Ivy Municipal Bond Fund
Class A	$	1,000	$	961.40	$	5.00	$	1,000	$	1,019.98	$	5.15		1.01%
Class B	$	1,000	$	957.80	$	8.71	$	1,000	$	1,016.19	$	8.97		1.77%
Class C	$	1,000	$	957.80	$	8.71	$	1,000	$	1,016.19	$	8.97		1.77%
Class I	$	1,000	$	962.40	$	4.02	$	1,000	$	1,021.02	$	4.14		0.81%
Class Y	$	1,000	$	961.30	$	5.00	$	1,000	$	1,019.98	$	5.15		1.01%
Ivy Municipal High Income Fund
Class A	$	1,000	$	928.60	$	4.15	$	1,000	$	1,020.80	$	4.34		0.85%
Class B	$	1,000	$	924.80	$	8.18	$	1,000	$	1,016.61	$	8.57		1.69%
Class C	$	1,000	$	925.20	$	7.70	$	1,000	$	1,017.11	$	8.07		1.59%
Class I	$	1,000	$	929.50	$	3.28	$	1,000	$	1,021.66	$	3.44		0.68%
Class Y	$	1,000	$	928.60	$	4.15	$	1,000	$	1,020.79	$	4.34		0.85%
Ivy Pacific Opportunities Fund
Class A	$	1,000	$	1,002.90	$	8.71	$	1,000	$	1,016.42	$	8.77		1.73%
Class B	$	1,000	$	995.80	$	14.97	$	1,000	$	1,010.03	$	15.08		3.00%
Class C	$	1,000	$	998.40	$	12.89	$	1,000	$	1,012.18	$	12.98		2.57%
Class E**	$	1,000	$	1,004.30	$	6.71	$	1,000	$	1,018.41	$	6.76		1.33%
Class I	$	1,000	$	1,004.90	$	6.11	$	1,000	$	1,019.01	$	6.16		1.21%
Class R	$	1,000	$	1,001.40	$	9.11	$	1,000	$	1,015.97	$	9.17		1.82%
Class Y	$	1,000	$	1,003.50	$	7.31	$	1,000	$	1,017.75	$	7.36		1.46%
Ivy Small Cap Growth Fund
Class A	$	1,000	$	1,143.30	$	7.72	$	1,000	$	1,017.85	$	7.26		1.44%
Class B	$	1,000	$	1,137.60	$	12.72	$	1,000	$	1,013.14	$	11.98		2.38%
Class C	$	1,000	$	1,139.40	$	11.23	$	1,000	$	1,014.55	$	10.58		2.10%
Class E	$	1,000	$	1,142.60	$	8.36	$	1,000	$	1,017.25	$	7.87		1.56%
Class I	$	1,000	$	1,145.40	$	5.69	$	1,000	$	1,019.74	$	5.35		1.06%
Class R	$	1,000	$	1,142.10	$	9.00	$	1,000	$	1,016.71	$	8.47		1.67%
Class Y	$	1,000	$	1,144.20	$	7.08	$	1,000	$	1,018.51	$	6.66		1.31%
Ivy Small Cap Value Fund
Class A	$	1,000	$	1,087.10	$	8.24	$	1,000	$	1,017.16	$	7.97		1.58%
Class B	$	1,000	$	1,081.20	$	13.63	$	1,000	$	1,011.98	$	13.18		2.61%
Class C	$	1,000	$	1,082.80	$	11.87	$	1,000	$	1,013.62	$	11.48		2.28%
Class E**	$	1,000	$	1,089.30	$	6.37	$	1,000	$	1,018.98	$	6.16		1.22%
Class I	$	1,000	$	1,089.90	$	5.75	$	1,000	$	1,019.53	$	5.55		1.11%
Class R	$	1,000	$	1,086.50	$	8.87	$	1,000	$	1,016.53	$	8.57		1.70%
Class Y	$	1,000	$	1,088.50	$	6.89	$	1,000	$	1,018.47	$	6.66		1.32%

See footnotes on page 9.

8 SEMIANNUAL REPORT 2013

ILLUSTRATION OF FUND EXPENSES

Ivy Funds

     (UNAUDITED)

	Actual(1)						Hypothetical(2)
Fund	Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Beginning Account Value 3-31-13		Ending Account Value 9-30-13		Expenses Paid During Period*		Annualized Expense Ratio Based on the Six-Month Period
Ivy Tax-Managed Equity Fund
Class A	$	1,000	$	1,104.70	$	8.10	$	1,000	$	1,017.41	$	7.77		1.53%
Class B	$	1,000	$	1,100.90	$	11.24	$	1,000	$	1,014.39	$	10.78		2.14%
Class C	$	1,000	$	1,101.10	$	11.45	$	1,000	$	1,014.19	$	10.98		2.16%
Class I	$	1,000	$	1,105.80	$	6.53	$	1,000	$	1,018.88	$	6.26		1.24%
Class Y	$	1,000	$	1,103.80	$	7.78	$	1,000	$	1,017.63	$	7.47		1.49%
Ivy Value Fund
Class A	$	1,000	$	1,081.80	$	6.97	$	1,000	$	1,018.41	$	6.76		1.33%
Class B	$	1,000	$	1,076.70	$	11.42	$	1,000	$	1,014.08	$	11.08		2.19%
Class C	$	1,000	$	1,078.30	$	10.50	$	1,000	$	1,014.95	$	10.18		2.02%
Class E**	$	1,000	$	1,083.00	$	5.83	$	1,000	$	1,019.48	$	5.65		1.12%
Class I	$	1,000	$	1,083.50	$	5.21	$	1,000	$	1,020.02	$	5.05		1.01%
Class R	$	1,000	$	1,080.40	$	8.32	$	1,000	$	1,017.08	$	8.07		1.59%
Class Y	$	1,000	$	1,082.60	$	6.46	$	1,000	$	1,018.85	$	6.26		1.24%

* 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, 2013, and divided by 365.

** Class is closed to investment.

***These shares are not available for direct investment. However, they are available by exchange from Class B or Class C shares of another lvy Fund.

(1) This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column of this section.

(2) This section uses a hypothetical five percent annual return and actual Fund expenses. It helps to compare the Fund’s ongoing costs with other mutual funds. A shareholder can compare the Fund’s ongoing costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds.

The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, redemption fees or exchange fees.

2013 SEMIANNUAL REPORT 9

PORTFOLIO HIGHLIGHTS

Ivy Bond Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	1.6%
Financials	1.6%
Bonds	96.4%
Corporate Debt Securities	42.1%
United States Government and Government Agency Obligations	36.0%
Mortgage-Backed Securities	8.5%
Asset-Backed Securities	8.3%
Municipal Bonds – Taxable	1.5%
Cash and Cash Equivalents	2.0%

Lipper Rankings

Category: Lipper Corporate Debt Funds A Rated	Rank	Percentile
1 Year	24/72	33
3 Year	29/64	45
5 Year	30/54	55
10 Year	35/41	84

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

Quality Weightings

Investment Grade	85.4%
AAA	6.8%
AA	43.4%
A	10.6%
BBB	24.6%
Non-Investment Grade	11.0%
BB	9.3%
B	1.1%
CCC	0.1%
Below CCC	0.1%
Non-rated	0.4%
Cash and Cash Equivalents and Equities	3.6%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

10 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

PREFERRED STOCKS	Shares		Value
Diversified Banks – 0.7%
Wells Fargo & Company, 5.850%		173	$	4,134
Property & Casualty Insurance – 0.5%
Allstate Corporation (NTe), 5.100%		130		3,016
Specialized REITs – 0.4%
Ventas, Inc., 5.450%		100		2,155
TOTAL PREFERRED STOCKS – 1.6%			$	9,305
(Cost: $10,080)
ASSET-BACKED SECURITIES	Principal
Ally Auto Receivable Trust 2010-1B, 3.290%, 3–15–15 (A)	$	4,000		4,026
America West Airlines, Inc., Pass Through Certificates, Series 1999-1, 7.930%, 1–2–19		971		1,039
America West Airlines, Inc., Pass Through Certificates, Series 2000-1, 8.057%, 7–2–20		1,309		1,420
American Airlines, Inc. Class A Pass Through Certificates, Series 2013-2, 4.950%, 1–15–23 (A)		3,000		3,015
American Airlines, Inc. Class Pass Through Certificates, Series 2011-1, 5.250%, 1–31–21		1,481		1,548
American Express Credit Account Master Trust Series 2012-2, 0.990%, 3–15–18		1,855		1,858
AmeriCredit Automobile Receivables Trust 2010-4, Series E, 4.200%, 11–8–16		2,000		2,071
AmeriCredit Automobile Receivables Trust 2011-1, Series C, 2.850%, 8–8–16		1,380		1,408
Continental Airlines 2001-1 A-1, 8.048%, 11–1–20		1,036		1,176
Continental Airlines Pass Through Certificates, Series 2009-2, 7.250%, 11–10–19		647		731
Continental Airlines Pass Through Certificates, Series 2010-1B, 6.000%, 1–12–19		744		763
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B, 6.250%, 4–11–20		1,000		1,030

ASSET-BACKED SECURITIES (Continued)	Principal		Value
CountryPlace Manufactured Housing Contract Trust 2005-1:
4.800%, 12–15–35 (A)(B)	$	596	$	609
5.200%, 12–15–35 (A)(B)		300		325
CVS Caremark Corporation Pass-Through Trust:
6.036%, 12–10–28		4,100		4,520
6.943%, 1–10–30		1,187		1,381
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A, 4.750%, 5–7–20		1,254		1,316
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B, 6.875%, 5–7–19 (A)		2,059		2,152
Extended Stay America Trust Commercial Mortgage Pass-Through Certificates, Series 2013-ESH MZ, 2.295%, 12–5–31 (A)		2,000		1,968
Green Tree Financial Corporation, Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3 A7, 6.400%, 10–15–18		23		23
Green Tree Financial Corporation, Manufactured Housing Contract, Pass-Through Certificates, Series 1994-5 A5, 8.300%, 11–15–19		17		17
Green Tree Financial Corporation, Manufactured Housing Contract, Pass-Through Certificates, Series 1996-4 A6, 7.400%, 6–15–27		387		395
Hawaiian Airlines Pass Through Certificates, Series 2013-1, 4.950%, 1–15–22		2,500		2,294
Origen Manufactured Housing Contract Trust 2004-A, 5.700%, 1–15–35		557		595
Origen Manufactured Housing Contract Trust 2004-B, 5.730%, 11–15–35 (B)		646		680
Origen Manufactured Housing Contract Trust 2005-A, 5.860%, 6–15–36 (B)		71		75
Origen Manufactured Housing Contract Trust 2005-B, 5.910%, 1–15–37		700		733
Prestige Auto Receivables Trust 2012-1, Class A-2, 1.230%, 12–15–15 (A)		871		872

ASSET-BACKED SECURITIES (Continued)	Principal			Value
Santander Consumer Acquired Receivables Trust 2011-S1, 3.150%, 8–15–16 (A)	$	2,397		$	2,407
Santander Drive Auto Receivables Trust 2011-4, 1.370%, 3–16–15		—	*		—	*
Tal Advantage V LLC, 2.830%, 2–22–38 (A)		2,279			2,204
US Airways, Inc. Class A Pass-Through Certificates, Series 2012-1, 5.900%, 10–1–24		1,008			1,054
US Airways, Inc. Class C Pass-Through Certificates, Series 2012-2, 5.450%, 6–3–18		2,000			1,880
US Airways, Inc., Series 2012-2, Class A, 6.750%, 6–3–21		2,250			2,301
TOTAL ASSET-BACKED SECURITIES – 8.3%				$	47,886
(Cost: $47,792)
CORPORATE DEBT SECURITIES
Aerospace & Defense – 0.2%
Textron Inc., 5.600%, 12–1–17		1,000			1,104
Airlines – 0.7%
British Airways plc, 5.625%, 6–20–20 (A)		1,475			1,516
United Air Lines, Inc., 10.400%, 11–1–16		625			700
US Airways Group, Inc. Class A, 6.250%, 4–22–23		1,176			1,234
US Airways Group, Inc. Class B, 8.500%, 4–22–17		759			797
					4,247
Application Software – 0.3%
Intuit Inc., 5.750%, 3–15–17		1,780			1,983
Auto Parts & Equipment – 0.7%
Dana Holding Corporation:
6.500%, 2–15–19		1,500			1,593
6.750%, 2–15–21		1,500			1,594
Delphi Corporation, 6.125%, 5–15–21		300			328
Tenneco Inc., 6.875%, 12–15–20		850			922
					4,437
Automobile Manufacturers – 0.4%
TRW Automotive Inc., 4.500%, 3–1–21 (A)		2,030			2,040

2013 SEMIANNUAL REPORT 11

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Automobile Mfg./Vehicle Parts – 0.5%
General Motors Co., 6.250%, 10–2–43 (A)	$	3,100	$	3,054
Banking – 0.5%
Ally Financial Inc., 5.500%, 2–15–17		2,500		2,624
Cable & Satellite – 0.4%
LYNX I Corp., 5.375%, 4–15–21 (A)		2,300		2,243
Computer Hardware – 0.6%
Hewlett-Packard Company:
3.000%, 9–15–16		2,600		2,684
3.300%, 12–9–16		900		937
				3,621
Consumer Finance – 2.3%
AmeriGas Partners, L.P. and AmeriGas Finance Corp., 6.500%, 5–20–21		477		491
Discover Bank, 8.700%, 11–18–19		458		579
Discover Financial Services, 6.450%, 6–12–17		660		750
Ford Motor Credit Company LLC:
5.625%, 9–15–15		1,500		1,621
3.000%, 6–12–17		1,375		1,414
General Motors Financial Company, Inc.:
4.750%, 8–15–17 (A)		4,100		4,244
4.250%, 5–15–23 (A)		860		786
Hyundai Capital Services, Inc., 4.375%, 7–27–16 (A)		2,000		2,136
Union 13 Leasing LLC, 1.870%, 6–28–24		1,044		1,014
				13,035
Data Processing & Outsourced Services – 0.2%
Western Union Company (The), 2.375%, 12–10–15		970		992
Diversified Banks – 1.2%
Bank of America Corporation:
5.750%, 12–1–17		2,405		2,713
5.875%, 1–5–21		1,030		1,168
Bank of America, N.A., 5.300%, 3–15–17		2,039		2,248
Wells Fargo Bank, N.A., 4.750%, 2–9–15		785		825
				6,954
Electric Utilities – 1.6%
FirstEnergy Corp., 2.750%, 3–15–18		2,855		2,777
Narragansett Electric Company (The), 4.170%, 12–10–42 (A)		4,450		3,965

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Electric Utilities (Continued)
Southwestern Electric Power Company, 5.550%, 1–15–17	$	2,395	$	2,629
				9,371
Gold – 0.3%
Barrick Gold Corporation, 2.500%, 5–1–18		1,670		1,593
Health Care Facilities – 0.3%
NYU Hospitals Center, 4.428%, 7–1–42		2,210		1,822
Health Care Supplies – 2.0%
Bio-Rad Laboratories, Inc., 4.875%, 12–15–20		4,300		4,453
Mallinckrodt International Finance S.A.:
3.500%, 4–15–18 (A)		3,420		3,366
4.750%, 4–15–23 (A)		2,090		1,988
Sinai Health System, 3.034%, 1–20–36		1,960		1,802
				11,609
Industrial Conglomerates – 1.6%
CNH Capital LLC, 3.625%, 4–15–18		2,485		2,473
General Electric Capital Corporation, 1.500%, 7–12–16		6,080		6,121
				8,594
Integrated Telecommunication Services – 1.6%
British Telecommunications plc, 1.625%, 6–28–16		735		739
Qwest Communications International Inc., 7.125%, 4–1–18		1,500		1,556
Verizon Communications Inc.:
4.500%, 9–15–20		1,655		1,760
5.150%, 9–15–23		1,620		1,737
6.550%, 9–15–43		3,730		4,211
				10,003
Investment Banking & Brokerage – 2.2%
Goldman Sachs Group, Inc. (The):
6.250%, 9–1–17		2,230		2,545
6.150%, 4–1–18		2,211		2,529
5.250%, 7–27–21		1,000		1,080
Morgan Stanley:
6.250%, 8–28–17		3,200		3,641
5.500%, 1–26–20		1,552		1,718
5.500%, 7–28–21		1,090		1,193
				12,706
Life & Health Insurance – 1.4%
Prudential Financial, Inc., 5.200%, 3–15–44		3,015		2,735
Prudential Holdings LLC, 7.245%, 12–18–23		1,295		1,569

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Life & Health Insurance (Continued)
Symetra Financial Corporation, 6.125%, 4–1–16 (A)	$	3,350	$	3,597
				7,901
Life Insurance – 0.6%
Pacific LifeCorp, 5.125%, 1–30–43 (A)		4,025		3,711
Managed Health Care – 0.1%
Coventry Health Care, Inc., 6.125%, 1–15–15		415		442
Metal & Glass Containers – 0.6%
Ball Corporation:
7.375%, 9–1–19		500		541
6.750%, 9–15–20		2,720		2,941
				3,482
Multi-Utilities – 0.4%
CMS Energy Corporation, 8.750%, 6–15–19		1,825		2,345
Oil & Gas – 0.3%
BP Capital Markets plc (GTD by BP plc), 3.994%, 9–26–23		1,680		1,694
Oil & Gas Exploration & Production – 0.5%
Tesoro Corporation, 4.250%, 10–1–17		2,645		2,711
Oil & Gas Refining & Marketing – 0.8%
NuStar Logistics, L.P., 7.900%, 4–15–18		4,000		4,470
Oil & Gas Storage & Transportation – 5.1%
DCP Midstream Operating, LP (GTD by DCP Midstream Partners, LP), 2.500%, 12–1–17		2,700		2,675
El Paso Natural Gas Company, 7.500%, 11–15–26		3,290		4,123
El Paso Pipeline Partners Operating Company, LLC, 5.000%, 10–1–21		690		733
Energy Transfer Partners, L.P.: 9.000%, 4–15–19		2,770		3,499
4.150%, 10–1–20		2,680		2,755
Enterprise Products Operating L.P., 5.750%, 3–1–35		3,226		3,418
Regency Energy Partners LP and Regency Energy Finance Corp., 6.500%, 7–15–21		3,000		3,150
Spectra Energy Partners, LP:
2.950%, 9–25–18		1,065		1,083
4.600%, 6–15–21		795		821
5.950%, 9–25–43		765		806
Sunoco Logistics Partners Operations L.P., 6.850%, 2–15–40		1,265		1,411

12 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation (Continued)
Western Gas Partners, LP, 5.375%, 6–1–21	$	1,890	$	2,022
Williams Companies, Inc. (The), 3.700%, 1–15–23		2,420		2,187
Williams Partners L.P., 7.250%, 2–1–17		770		897
				29,580
Oil Services – 0.5%
Whiting Petroleum Corporation, 5.000%, 3–15–19		2,790		2,797
Other Diversified Financial Services – 2.7%
Citigroup Funding Inc., 4.450%, 1–10–17		5,000		5,414
Citigroup Inc.: 6.010%, 1–15–15		1,080		1,149
6.675%, 9–13–43		1,000		1,077
JPMorgan Chase Bank N.A.:
5.875%, 6–13–16		1,170		1,305
6.000%, 7–5–17		215		244
6.000%, 10–1–17		2,368		2,710
ULANI MSN 37894, 2.184%, 12–20–24		3,654		3,609
				15,508
Pharmaceuticals – 0.2%
Hospira, Inc., 5.200%, 8–12–20		1,110		1,130
Property & Casualty Insurance – 2.2%
American International Group, Inc., Medium-Term Notes, Series G, 5.850%, 1–16–18		1,700		1,933
Assurant, Inc., 2.500%, 3–15–18		1,990		1,954
Liberty Mutual Group, Inc.:
7.300%, 6–15–14 (A)		1,000		1,036
5.000%, 6–1–21 (A)		5,280		5,603
XL Capital Ltd., 6.250%, 5–15–27		2,075		2,335
				12,861
Railroads – 1.0%
BNSF Funding Trust I, 6.613%, 12–15–55		5,195		5,792
Real Estate Operating Companies – 0.3%
Colonial Realty Limited Partnership, 5.500%, 10–1–15		1,830		1,974
Regional Banks – 2.2%
AmSouth Bancorporation, 5.200%, 4–1–15		1,000		1,053
HSBC Bank USA, N.A., 6.000%, 8–9–17		4,235		4,803
PNC Financial Services Group, Inc. (The), 4.850%, 5–29–49		1,875		1,613

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Regional Banks (Continued)
Santander Holdings USA, Inc., 3.000%, 9–24–15	$	865	$	890
SunTrust Banks, Inc., 0.552%, 8–24–15 (B)		4,225		4,181
				12,540
REITs – 1.1%
American Tower Trust I, 1.551%, 3–15–18 (A)		6,365		6,207
Specialized Finance – 0.2%
International Lease Finance Corporation, 6.500%, 9–1–14 (A)		1,300		1,349
Specialized REITs – 1.4%
Health Care REIT, Inc., 4.125%, 4–1–19		2,830		2,981
Nationwide Health Properties, Inc., 6.000%, 5–20–15		1,000		1,081
Ventas Realty, Limited Partnership (GTD by Ventas, Inc.), 5.700%, 9–30–43		2,000		2,022
Ventas Realty, LP and Ventas Capital Corp., 4.000%, 4–30–19		1,850		1,941
				8,025
Specialty Chemicals – 0.7%
Ashland Inc.:
3.000%, 3–15–16		2,225		2,259
3.875%, 4–15–18		2,225		2,197
				4,456
Telecommunications – 0.6%
SBA Tower Trust, 2.240%, 4–16–18 (A)		3,300		3,255
Trading Companies & Distributors – 0.3%
AmeriGas Finance Corp. and AmeriGas Finance LLC, 6.750%, 5–20–20		1,500		1,594
Trucking – 0.2%
Tagua Leasing, LLC, 1.900%, 7–12–24		1,193		1,164
Wireless Telecommunication Service – 1.1%
Crown Castle International Corp., 6.113%, 1–15–20 (A)		4,050		4,582
MetroPCS Communications, Inc., 6.625%, 4–1–23 (A)		1,500		1,504
				6,086
TOTAL CORPORATE DEBT SECURITIES – 42.1%			$	243,106
(Cost: $239,963)

MORTGAGE-BACKED SECURITIES	Principal			Value
Commercial Mortgage-Backed Securities – 6.7%
7 WTC Depositor, LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC, 4.082%, 3–13–31 (A)	$	2,463		$	2,571
Banco Hipotecario Nacional:
7.916%, 7–25–09 (A)(C)		31			—	*
1.629%, 3–25–12 (A)(C)		10			—	*
7.540%, 5–31–17 (A)(C)		—	*		—
BB-UBS Trust 2012-SHOW, Commercial Mortgage Pass-Through Certificates, Series 2012 Class A, 3.430%, 11–5–36 (A)		2,850			2,671
BB-UBS Trust 2012-SHOW, Commercial Mortgage Pass-Through Certificates, Series 2012 Class D, 4.026%, 11–5–36 (A)(B)		1,425			1,268
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4, 5.468%, 6–11–41 (B)		1,021			1,042
Bear Stearns Mortgage Securities Inc., 8.000%, 11–25–29		175			160
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPA, 2.110%, 1–12–18 (A)		1,300			1,306
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD, 3.008%, 1–12–18 (A)(B)		1,240			1,210
Commercial Mortgage Asset Trust, 7.800%, 11–17–32 (B)		314			318
GS Mortgage Securities Corporation Trust Commercial Mortgage Pass-Through Certificates Series 2012-BWTR, 3.328%, 11–5–34 (A)(B)		1,000			907
Hometown Commercial Capital, LLC Hometown Commercial Mortgage Pass-Through Notes 2006-1, 5.506%, 11–11–38 (A)		944			723
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed Notes, Series 2007-1, 6.057%, 6–11–39 (A)		238			141

2013 SEMIANNUAL REPORT 13

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Commercial Mortgage-Backed Securities (Continued)
J.P. Morgan Chase Commercial Mortgage Securities Trust 2009-IWST, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST:
2.208%, 12–5–27 (A)(B)	$	5,964	$	613
7.151%, 12–5–27 (A)		1,425		1,699
7.693%, 12–5–27 (A)(B)		2,600		3,103
Mellon Residential Funding, 6.750%, 6–25–28		7		7
Morgan Stanley Capital I Trust 2012-C4, 3.773%, 3–15–45		945		944
Multi Security Asset Trust LP, Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4:
5.000%, 11–28–35 (A)		784		776
5.880%, 11–28–35 (A)(B)		1,280		1,236
OBP Depositor LLC Trust, Commercial Mortgage Pass-Through Certificates, Series 2010-OBP, 2.710%, 2–17–26 (A)		800		757
Queens Center Mortgage Trust 2013-QC, 3.275%, 1–11–37 (A)		3,010		2,784
UBS-Barclays Commerical Mortgage Trust, Ser 2012-C3 A4, 3.091%, 8–10–49		2,885		2,767
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO, 5.280%, 9–13–28 (A)		1,200		1,295
Wachovia Bank Commerical Mortgage Trust, Commerical Mortgage Pass-Through Certificates, Ser 2004-C15, 4.803%, 10–15–41		1,565		1,613
Wells Fargo Commerical Mortgage Trust, Ser 2012-LC5 A3, 2.918%, 10–15–45		3,173		3,009
WFRBS Commercial Mortgage Trust 2001-C2 A-2, 3.791%, 2–15–44 (A)		1,485		1,562
WFRBS Commercial Mortgage Trust 2011-C5, 3.667%, 11–15–44 (B)		1,135		1,155
WFRBS Commercial Mortgage Trust 2012-C10, Class A-3, 2.870%, 11–15–45		3,539		3,334
				38,971

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Other Mortgage-Backed Securities – 1.8%					��
ABFS Mortgage Loan Trust 2001-2, 7.490%, 12–25–31 (B)	$	475	$	400
Asset Securitization Corporation, 7.560%, 2–14–43 (B)		30		30
Banc of America Alternative Loan Trust 2003-05, 5.500%, 7–25–33		343		5
Banc of America Alternative Loan Trust 2005-06, 6.000%, 7–25–35		461		39
Banc of America Mortgage Trust 2003-09, 5.500%, 12–25–33		479		224
Banc of America Mortgage Trust 2004-03, 4.875%, 4–25–19		98		95
Bank of America Mortgage Securities, Inc., Mortgage Pass-Through Certificates, Series 2003-3, 5.500%, 5–25–33		690		710
C-Bass 2006-MH1 Trust:
5.963%, 10–25–36 (A)(B)		88		91
5.970%, 10–25–36 (A)(B)		568		573
CHL Mortgage Pass-Through Trust 2004-J4, 5.250%, 5–25–34		208		190
Collateralized Mortgage Obligation Trust, 5.000%, 7–1–18		9		9
CWHEQ Home Equity Loan Trust, Series 2007-S2, 5.934%, 5–25–37 (B)		321		265
First Horizon Mortgage Pass-Through Trust 2003-8, 5.149%, 10–25–33 (B)		140		35
First Horizon Mortgage Pass-Through Trust 2007-4, 5.500%, 8–25–22		76		72
GMACM Home Equity Loan Trust 2007-HE1, 5.952%, 8–25–37 (B)		570		478
Helios Leasing I LLC, 2.018%, 5–29–24		1,292		1,268
J.P. Morgan Mortgage Trust 2004-A3, 2.754%, 7–25–34 (B)		213		212
Merrill Lynch Mortgage Investors, Inc. Mortgage Pass-Through Certificates Series 1997-C2, 6.250%, 12–10–29		894		892
Morgan Stanley Capital I Trust 2012-STAR Class A-2, 3.201%, 8–5–34 (A)		1,350		1,297
Morgan Stanley Capital I Trust 2012-STAR Class B, 3.451%, 8–5–34 (A)		930		879
Morgan Stanley Capital I Trust, Series 2012-C4, 1.085%, 3–15–45		359		359

MORTGAGE-BACKED SECURITIES (Continued)	Principal		Value
Other Mortgage-Backed Securities (Continued)
Prudential Home Mortgage Securities:
6.730%, 4–28–24 (A)(B)	$	1	$	1
7.883%, 9–28–24 (A)(B)		3		2
RASC Series 2003-KS10 Trust, 6.410%, 12–25–33		189		67
RFMSI Series 2004-S5 Trust: 4.500%, 5–25–19		148		140
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, 7.750%, 12–25–30 (B)		742		475
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21, 5.197%, 11–25–35 (B)		1,043		46
Structured Asset Mortgage Investments, Inc., 2.568%, 5–2–30 (B)		7		2
TimberStar Trust I, 6.208%, 10–15–36 (A)		1,560		1,643
				10,499
TOTAL MORTGAGE-BACKED SECURITIES – 8.5%			$	49,470
(Cost: $56,186)
MUNICIPAL BONDS – TAXABLE
Florida – 0.1%
Sarasota Cnty, FL, Cap Impvt Rev Bonds, Ser 2010A, 7.016%, 10–1–40		520		581
New Jersey – 0.1%
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2010C, 5.754%, 12–15–28		760		829
New York – 1.1%
Port Auth of NY & NJ Consolidated Bonds, Ser 174, 4.458%, 10–1–62		3,110		2,635
Port Auth of NY and NJ Consolidated Bonds, 168th Ser, 4.926%, 10–1–51		3,550		3,406
				6,041

14 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS – TAXABLE (Continued)	Principal		Value
Washington – 0.2%
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A, 5.450%, 9–1–40	$	1,205	$	1,170
TOTAL MUNICIPAL BONDS –TAXABLE – 1.5%			$	8,621
(Cost: $9,028)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations – 0.0%
Federal National Mortgage Association, 5.500%, 2–1–35		168		184
Mortgage-Backed Obligations – 25.7%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO, 5.300%, 1–15–33		163		176
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.500%, 12–1–17		128		136
5.500%, 9–1–19		170		182
5.000%, 4–1–23		574		620
3.500%, 8–1–26		1,152		1,213
2.500%, 3–1–28		955		962
2.500%, 4–1–28		961		968
5.000%, 5–1–29		110		117
3.500%, 5–1–32		1,917		1,990
6.500%, 9–1–32		77		87
6.000%, 11–1–33		116		128
5.500%, 5–1–34		817		901
6.500%, 5–1–34		222		247
5.500%, 6–1–34		296		322
5.000%, 9–1–34		5		5
5.500%, 9–1–34		14		16
5.500%, 10–1–34		322		351
5.500%, 7–1–35		137		149
5.000%, 8–1–35		147		159
5.500%, 10–1–35		116		125
5.000%, 11–1–35		305		328
5.000%, 12–1–35		103		111
6.500%, 7–1–36		121		134
7.000%, 12–1–37		201		223
5.500%, 2–1–39		764		827
5.000%, 11–1–39		266		291
5.000%, 1–1–40		1,607		1,752
5.000%, 3–1–40		2,337		2,558
5.000%, 4–1–40		619		667
5.000%, 8–1–40		556		605
4.000%, 10–1–40		1,432		1,500
4.000%, 11–1–40		1,187		1,250
4.500%, 1–1–41		1,506		1,609
4.000%, 2–1–41		2,338		2,450
4.000%, 3–1–41		729		766
4.500%, 3–1–41		676		723
4.500%, 4–1–41		1,751		1,879
4.000%, 6–1–41		793		833

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
4.000%, 8–1–41	$	664	$	695
4.000%, 10–1–41 TBA		1,400		1,463
4.000%, 11–1–41		6,638		6,952
3.500%, 1–1–42		2,652		2,700
3.500%, 3–1–42		2,659		2,704
3.000%, 8–1–42		1,870		1,823
3.500%, 8–1–42		4,617		4,704
3.000%, 1–1–43		1,923		1,875
3.000%, 2–1–43		2,404		2,345
Federal National Mortgage Association Agency REMIC/CMO, 4.500%, 7–25–24		1,649		1,776
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
6.000%, 9–1–17		20		21
6.000%, 1–1–18		67		71
5.500%, 2–1–18		75		79
5.500%, 3–1–18		14		15
5.000%, 5–1–18		269		286
5.000%, 6–1–18		62		67
5.000%, 7–1–18		28		29
5.000%, 10–1–18		175		186
5.500%, 9–1–19		61		66
3.000%, 9–1–22		1,641		1,718
5.000%, 7–1–23		287		311
6.000%, 8–1–23		343		371
5.500%, 2–1–24		111		122
4.500%, 4–1–25		516		547
3.500%, 11–1–25		671		709
3.500%, 6–1–26		1,224		1,293
3.500%, 10–1–26 TBA		125		132
2.500%, 11–1–27		1,863		1,849
2.500%, 10–1–28		1,185		1,192
6.000%, 8–1–29		104		115
7.500%, 5–1–31		36		41
7.000%, 9–1–31		13		15
7.000%, 11–1–31		138		162
6.500%, 12–1–31		15		17
6.500%, 2–1–32		160		181
7.000%, 2–1–32		111		130
7.000%, 3–1–32		181		215
6.500%, 4–1–32		30		35
6.500%, 5–1–32		62		69
6.500%, 7–1–32		22		25
6.500%, 8–1–32		32		36
6.000%, 9–1–32		35		39
6.500%, 9–1–32		78		88
6.000%, 10–1–32		678		756
6.500%, 10–1–32		70		79
6.000%, 11–1–32		494		552
3.500%, 12–1–32		2,783		2,889
6.000%, 3–1–33		748		834
5.500%, 4–1–33		531		587
6.000%, 4–1–33		48		53
5.500%, 5–1–33		74		81
6.000%, 6–1–33		312		342
6.500%, 8–1–33		21		23
6.000%, 10–1–33		69		75
6.000%, 12–1–33		139		154
5.500%, 1–1–34		161		176
5.500%, 1–1–34		154		168
6.000%, 1–1–34		103		114
5.000%, 3–1–34		580		631
5.000%, 3–1–34		70		76

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
5.500%, 3–1–34	$	62	$	69
5.500%, 4–1–34		67		73
5.000%, 5–1–34		37		41
6.000%, 8–1–34		171		189
5.500%, 9–1–34		360		392
6.000%, 9–1–34		182		201
6.500%, 9–1–34		209		236
5.500%, 11–1–34		672		734
6.000%, 11–1–34		221		244
6.500%, 11–1–34		17		20
5.000%, 12–1–34		937		1,018
5.500%, 1–1–35		455		497
5.500%, 1–1–35		144		159
5.500%, 2–1–35		1,023		1,131
6.500%, 3–1–35		312		352
5.000%, 4–1–35		177		193
5.500%, 4–1–35		344		377
4.500%, 5–1–35		638		683
5.500%, 6–1–35		16		18
4.500%, 7–1–35		477		512
5.000%, 7–1–35		1,079		1,171
5.000%, 7–1–35		239		260
5.500%, 7–1–35		144		157
5.500%, 8–1–35		21		23
5.500%, 10–1–35		639		710
5.500%, 11–1–35		432		471
5.500%, 12–1–35		418		457
5.000%, 2–1–36		103		112
5.500%, 2–1–36		428		452
6.500%, 2–1–36		163		180
5.500%, 9–1–36		464		507
5.500%, 11–1–36		235		256
6.000%, 11–1–36		144		157
6.000%, 1–1–37		116		128
6.000%, 5–1–37		251		278
5.500%, 6–1–37		109		121
6.000%, 8–1–37		185		202
6.000%, 9–1–37		156		173
7.000%, 10–1–37		17		19
5.500%, 3–1–38		384		423
5.000%, 4–1–38		477		525
5.500%, 5–1–38		278		302
6.000%, 10–1–38		558		611
6.000%, 12–1–38		331		363
4.500%, 6–1–39		282		303
5.000%, 12–1–39		619		683
5.500%, 12–1–39		519		569
5.000%, 3–1–40		1,597		1,746
6.000%, 6–1–40		353		385
4.500%, 10–1–40		1,363		1,456
4.000%, 12–1–40		1,899		1,994
3.500%, 4–1–41		2,607		2,659
4.000%, 4–1–41		1,671		1,758
4.500%, 4–1–41		3,448		3,711
5.000%, 4–1–41		386		424
4.500%, 7–1–41		1,911		2,045
4.000%, 8–1–41		1,393		1,461
4.000%, 9–1–41		2,265		2,382
3.500%, 10–1–41 TBA		2,090		2,129
4.000%, 10–1–41		2,183		2,295
3.500%, 11–1–41		4,639		4,735
3.500%, 1–1–42		1,270		1,295
3.000%, 3–1–42		1,682		1,646
3.000%, 9–1–42		2,830		2,769
3.500%, 2–1–43		1,930		1,972

2013 SEMIANNUAL REPORT 15

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
3.500%, 3–1–43	$	2,841	$	2,900
3.500%, 7–1–43		3,117		3,151
3.000%, 8–1–43		998		964
Government National Mortgage Association Agency REMIC/CMO:
0.277%, 3–16–34 (B)(D)		1,739		6
0.643%, 7–16–40 (B)(D)		727		14
0.000%, 3–16–42 (B)(D)(E)		711		—	*
0.488%, 6–17–45 (B)(D)		5,477		72
Government National Mortgage Association Fixed Rate Pass-Through Certificates:
6.250%, 7–15–24		88		98
4.000%, 8–20–31		934		973
5.000%, 7–15–33		307		337
5.000%, 7–15–34		227		249
5.500%, 12–15–34		316		349
5.000%, 1–15–35		356		391
5.000%, 12–15–35		554		607
4.000%, 6–20–36		1,297		1,373
5.500%, 7–15–38		335		370
5.500%, 10–15–38		342		387
5.500%, 2–15–39		228		251
5.000%, 12–15–39		217		243
5.000%, 1–15–40		1,784		1,965
4.500%, 6–15–40		758		827
5.000%, 7–15–40		604		659
4.000%, 12–20–40		814		866
4.000%, 1–15–41		1,308		1,392
4.000%, 10–15–41		807		858
3.000%, 10–1–43		365		360
3.500%, 10–1–43		3,000		3,083
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 1, 7.224%, 2–15–25 (B)		103		119

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
United States Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust, 1995-1 Class 2, 7.793%, 2–15–25	$	31	$	35
				148,732
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 25.7%			$	148,916
(Cost: $150,578)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 10.3%
United States Treasury Bonds, 5.375%, 2–15–31 (F)		4,940		6,301
United States Treasury Notes:
0.375%, 8–31–15		6,315		6,323
0.625%, 9–30–17		7,300		7,177
1.500%, 8–31–18		21,878		22,028
2.125%, 8–31–20		1,975		1,993
2.500%, 8–15–23		8,635		8,551
2.875%, 5–15–43		8,720		7,400
				59,773
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 10.3%			$	59,773
(Cost: $58,566)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 2.7%
Automatic Data Processing Inc., 0.050%, 10–2–13 (G)	$	5,000	$	4,999
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.), 0.060%, 10–28–13 (G)		3,000		3,000
St. Jude Medical, Inc., 0.090%, 10–1–13 (G)		4,597		4,597
Verizon Communications Inc., 0.210%, 10–21–13 (G)		3,000		3,000
				15,596
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (H)		426		426
TOTAL SHORT-TERM SECURITIES – 2.8%			$	16,022
(Cost: $16,023)
TOTAL INVESTMENT SECURITIES – 100.8%			$	583,099
(Cost: $588,216)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.8%)				(4,357	)
NET ASSETS – 100.0%			$	578,742

Notes to Schedule of Investments

* Not shown due to rounding.

(A) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $102,890 or 17.8% of net assets.

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(C) Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(D) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(E) Zero coupon bond.

(F) All or a portion of the security position has been pledged as collateral on open futures contracts.

(G) Rate shown is the yield to maturity at September 30, 2013.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

16 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

The following futures contracts were outstanding at September 30, 2013 (contracts unrounded):

Description	Type	Expiration Date		Number of Contracts		Market Value			Unrealized Appreciation (Depreciation)
U.S. Treasury Long Bond	Short		12–31–13		63	$	(8,403	)	$	(101	)
U.S. 10-Year Treasury Note	Short		1–6–14		164		(20,727	)		(301	)
U.S. 5-Year Treasury Note	Long		1–6–14		114		13,799			141
						$	(15,331	)	$	(261	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Preferred Stocks	$	9,305	$	—	$	—
Asset-Backed Securities		—		24,199		23,687
Corporate Debt Securities		—		233,067		10,039
Mortgage-Backed Securities		—		46,842		2,628
Municipal Bonds		—		8,621		—
United States Government Agency Obligations		—		148,916		—	*
United States Government Obligations		—		59,773		—
Short-Term Securities		—		16,022		—
Total	$	9,305	$	537,440	$	36,354
Futures Contracts	$	141	$	—	$	—
Liabilities
Futures Contracts	$	402	$	—	$	—

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

	Asset-Backed Securities			Corporate Debt Securities			Mortgage- Backed Securities			United States Government Agency Obligations
Beginning Balance 4–1–13	$	28,308		$	3,065		$	2,743		$	—	*
Net realized gain (loss)		73			—			4			—
Net change in unrealized appreciation (depreciation)		(974	)		(250	)		1			—	*
Purchases		12,585			1,491			32			—
Sales		(16,271	)		(204	)		(153	)		—
Amortization/Accretion of premium/discount		(34	)		(11	)		1			—
Transfers into Level 3 during the period		—			5,948			—			—
Transfers out of Level 3 during the period		—			—			—			—
Ending Balance 9–30–13	$	23,687		$	10,039		$	2,628		$	—	*
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–13	$	(948	)	$	(250	)	$	1		$	—	*

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

2013 SEMIANNUAL REPORT 17

SCHEDULE OF INVESTMENTS

Ivy Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9–30–13	Valuation Technique(s)	Unobservable Input(s)
Assets
Asset-Backed Securities	$23,687	Third-party valuation service	Broker quotes
Corporate Debt Securities	$10,039	Third-party valuation service	Broker quotes
Mortgage-Backed Securities	$2,628	Third-party valuation service	Broker quotes
United State Government Agency Obligations	$—*	Broker	Broker quotes

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REIT = Real Estate Investment Trust

REMIC = Real Estate Mortgage Investment Conduit

TBA = To Be Announced

See Accompanying Notes to Financial Statements.

18 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Core Equity Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Consumer Discretionary	20.7%
Information Technology	19.4%
Industrials	15.7%
Financials	10.7%
Health Care	10.6%
Consumer Staples	8.6%
Energy	6.6%
Materials	5.2%
Cash and Cash Equivalents	2.5%

Lipper Rankings

Category: Lipper Large-Cap Core Funds	Rank	Percentile
1 Year	343/931	37
3 Year	80/857	10
5 Year	77/785	10
10 Year	46/516	9

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

Top 10 Equity Holdings

Company	Sector
American International Group, Inc.	Financials
Anheuser-Busch InBev S.A., ADR	Consumer Staples
Pentair, Inc.	Industrials
Harley-Davidson, Inc.	Consumer Discretionary
Cummins Inc.	Industrials
Applied Materials, Inc.	Information Technology
Pall Corporation	Industrials
Twenty-First Century Fox, Inc.	Consumer Discretionary
Union Pacific Corporation	Industrials
Cisco Systems, Inc.	Information Technology

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

2013 SEMIANNUAL REPORT 19

SCHEDULE OF INVESTMENTS

Ivy Core Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Apparel, Accessories & Luxury Goods – 1.8%
Polo Ralph Lauren Corporation		76	$	12,503
Biotechnology – 2.7%
Alexion Pharmaceuticals, Inc. (A)		89		10,291
Biogen Idec Inc. (A)		36		8,716
				19,007
Brewers – 3.2%
Anheuser-Busch InBev S.A., ADR		224		22,241
Broadcasting – 2.5%
CBS Corporation, Class B		324		17,885
Cable & Satellite – 3.8%
Comcast Corporation, Class A		298		13,432
Time Warner Cable Inc.		118		13,180
				26,612
Communications Equipment – 4.6%
Cisco Systems, Inc.		812		19,016
F5 Networks, Inc. (A)	��	67		5,712
Nokia Corporation, Series A, ADR		1,107		7,206
				31,934
Computer Hardware – 1.5%
Apple Inc.		22		10,632
Construction & Farm Machinery & Heavy Trucks – 2.8%
Cummins Inc.		150		19,931
Consumer Electronics – 1.1%
Harman International Industries, Incorporated		122		8,100
Consumer Finance – 1.7%
Capital One Financial Corporation		179		12,274
Data Processing & Outsourced Services – 2.6%
MasterCard Incorporated, Class A		28		18,569
Diversified Banks – 2.0%
Bank of America Corporation		1,013		13,981
Diversified Chemicals – 2.3%
Dow Chemical Company (The)		430		16,527
Fertilizers & Agricultural Chemicals – 1.8%
Monsanto Company		125		13,015
Home Improvement Retail – 1.8%
Home Depot, Inc. (The)		171		12,978

COMMON STOCKS (Continued)	Shares		Value
Hypermarkets & Super Centers – 1.7%
Costco Wholesale Corporation		106	$	12,226
Industrial Machinery – 5.9%
Pall Corporation		258		19,838
Pentair, Inc.		329		21,397
				41,235
Integrated Oil & Gas – 1.2%
Occidental Petroleum Corporation		88		8,185
Internet Software & Services – 2.5%
Facebook, Inc., Class A (A)		281		14,098
LinkedIn Corp (A)		14		3,420
				17,518
IT Consulting & Other Services – 2.2%
Teradata Corporation (A)		283		15,695
Managed Health Care – 1.3%
UnitedHealth Group Incorporated		126		9,023
Motorcycle Manufacturers – 3.0%
Harley-Davidson, Inc.		332		21,359
Movies & Entertainment – 2.8%
Twenty-First Century Fox, Inc.		586		19,579
Multi-Line Insurance – 3.4%
American International Group, Inc.		490		23,824
Oil & Gas Equipment & Services – 1.8%
National Oilwell Varco, Inc.		159		12,432
Oil & Gas Exploration & Production – 2.0%
Noble Energy, Inc.		218		14,601
Oil & Gas Refining & Marketing – 1.6%
Phillips 66		192		11,107
Other Diversified Financial Services – 3.6%
Citigroup Inc.		384		18,603
JPMorgan Chase & Co.		134		6,906
				25,509
Packaged Foods & Meats – 1.4%
Mead Johnson Nutrition Company		136		10,077
Pharmaceuticals – 6.6%
Bristol-Myers Squibb Company		347		16,073
Pfizer Inc.		549		15,774
Shire Pharmaceuticals Group plc, ADR		123		14,722
				46,569

COMMON STOCKS (Continued)	Shares		Value
Railroads – 7.0%
Canadian Pacific Railway Limited		149	$	18,384
Kansas City Southern		106		11,625
Union Pacific Corporation		124		19,203
				49,212
Restaurants – 3.9%
Chipotle Mexican Grill, Inc., Class A (A)		26		11,319
Panera Bread Company, Class A (A)		44		6,959
YUM! Brands, Inc.		117		8,367
				26,645
Semiconductor Equipment – 2.8%
Applied Materials, Inc.		1,135		19,913
Semiconductors – 3.2%
Altera Corporation		186		6,923
Texas Instruments Incorporated		388		15,612
				22,535
Specialty Chemicals – 1.1%
LyondellBasell Industries N.V., Class A		101		7,400
Tobacco – 2.3%
Philip Morris International Inc.		185		16,034
TOTAL COMMON STOCKS – 97.5%			$	686,867
(Cost: $543,752)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 1.9%
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.), 0.060%, 10–28–13 (B)	$	3,000		3,000
CVS Caremark Corporation, 0.180%, 10–4–13 (B)		1,500		1,500
Diageo Capital plc (GTD by Diageo plc), 0.200%, 10–9–13 (B)		2,000		2,000
John Deere Financial Limited (GTD by John Deere Capital Corporation), 0.070%, 10–24–13 (B)		2,500		2,500
St. Jude Medical, Inc., 0.090%, 10–1–13 (B)		4,029		4,029
				13,029

20 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Core Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.3%
Toyota Motor Credit Corporation, 0.100%, 10-2-13 (C)	$	2,246	$	2,246
TOTAL SHORT-TERM SECURITIES – 2.2%			$	15,275
(Cost: $15,275)
TOTAL INVESTMENT SECURITIES – 99.7%			$	702,142
(Cost: $559,027)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3%				2,311
NET ASSETS – 100.0%			$	704,453

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	145,661	$	—	$	—
Consumer Staples		60,578		—		—
Energy		46,325		—		—
Financials		75,588		—		—
Health Care		74,599		—		—
Industrials		110,378		—		—
Information Technology		136,796		—		—
Materials		36,942		—		—
Total Common Stocks	$	686,867	$	—	$	—
Short-Term Securities		—		15,275		—
Total	$	686,867	$	15,275	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 21

PORTFOLIO HIGHLIGHTS

Ivy Cundill Global Value Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	76.5%
Financials	28.0%
Consumer Discretionary	19.9%
Industrials	12.5%
Energy	11.1%
Materials	3.7%
Information Technology	1.3%
Warrants	1.4%
Bonds	0.1%
Other Government Securities	0.1%
Cash and Cash Equivalents	22.0%

Lipper Rankings

Category: Lipper Global Multi-Cap Value Funds	Rank	Percentile
1 Year	4/77	6
3 Year	27/59	45
5 Year	27/47	57
10 Year	14/22	61

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

Country Weightings

North America	35.1%
United States	31.1%
Canada	4.0%
Europe	24.1%
Germany	6.5%
France	6.4%
Italy	4.9%
Other Europe	6.3%
Pacific Basin	18.8%
Japan	8.6%
South Korea	5.7%
Hong Kong	4.5%
South America	0.0%
Cash and Cash Equivalents	22.0%

Top 10 Equity Holdings

Company	Country	Sector	Industry
American International Group, Inc.	United States	Financials	Multi-Line Insurance
Citigroup Inc.	United States	Financials	Other Diversified Financial Services
Bank of America Corporation	United States	Financials	Diversified Banks
EnCana Corporation	Canada	Energy	Oil & Gas Exploration & Production
Posco	South Korea	Materials	Steel
News Corporation, Class A	United States	Consumer Discretionary	Publishing
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares	Germany	Financials	Reinsurance
SANKYO Co., Ltd.	Japan	Consumer Discretionary	Leisure Products
Deutsche Lufthansa AG	Germany	Industrials	Airlines
Chesapeake Energy Corporation, 5.75% Cumulative	United States	Energy	Oil & Gas Exploration & Production

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

22 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Cundill Global Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Brazil – 0.0%
HRT Participacoes Em Petroleo S.A. (A)		284	$	150
Canada – 4.0%
EnCana Corporation		724		12,552
France – 6.4%
Compagnie de Saint-Gobain		160		7,938
Renault S.A.		72		5,737
Vinci		111		6,435
				20,110
Germany – 6.5%
Deutsche Lufthansa AG		508		9,916
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares		53		10,415
				20,331
Greece – 0.4%
Intralot S.A. Integrated Lottery Systems and Services		626		1,390
Hong Kong – 4.5%
First Pacific Company Limited		6,167		6,814
Henderson Land Development Company Limited		1,182		7,301
				14,115
Italy – 4.9%
EXOR S.p.A.		174		6,536
Mediaset S.p.A.		2,186		8,872
				15,408
Japan – 8.6%
Honda Motor Co., Ltd.		242		9,207
SANKYO Co., Ltd.		212		10,361
Sega Sammy Holdings Inc.		253		7,284
				26,852
Netherlands – 2.7%
TNT N.V.		1,928		8,338
South Korea – 5.7%
LG Corp.		100		6,162
Posco		39		11,734
				17,896
Spain – 0.9%
Gestevision Telecinco, S.A.		242		2,786
United Kingdom – 2.2%
BP plc, ADR		160		6,745
United States – 26.7%
American International Group, Inc.		400		19,470
Bank of America Corporation		926		12,773

COMMON STOCKS (Continued)	Shares			Value
United States (Continued)
Berkshire Hathaway Inc., Class A (A)		—	*	$	8,521
Chesapeake Energy Corporation		233			6,038
Citigroup Inc.		318			15,435
GameStop Corp, Class A		129			6,390
Microsoft Corporation		121			4,014
News Corporation, Class A (A)		660			10,595
					83,236
TOTAL COMMON STOCKS – 73.5%				$	229,909
(Cost: $177,472)
PREFERRED STOCKS
United States – 3.0%
Chesapeake Energy Corporation, 5.75% Cumulative (B)		8			9,350
TOTAL PREFERRED STOCKS – 3.0%				$	9,350
(Cost: $8,476)
WARRANTS
United States – 1.4%
JPMorgan Chase & Co., Expires 10–28–18 (C)		252			4,232
TOTAL WARRANTS – 1.4%				$	4,232
(Cost: $3,035)
OTHER GOVERNMENT SECURITIES	Principal
Greece – 0.1%
Hellenic Republic:
2.000%, 2–24–23 (D)		EUR18			16
2.000%, 2–24–24 (D)		18			14
2.000%, 2–24–25 (D)		18			14
2.000%, 2–24–26 (D)		18			13
2.000%, 2–24–27 (D)		18			13
2.000%, 2–24–28 (D)		19			13
2.000%, 2–24–29 (D)		19			13
2.000%, 2–24–30 (D)		19			13
2.000%, 2–24–31 (D)		19			13
2.000%, 2–24–32 (D)		19			13
2.000%, 2–24–33 (D)		19			12
2.000%, 2–24–34 (D)		19			12
2.000%, 2–24–35 (D)		19			12
2.000%, 2–24–36 (D)		19			12
2.000%, 2–24–37 (D)		19			12
2.000%, 2–24–38 (D)		19			12
2.000%, 2–24–39 (D)		19			12
2.000%, 2–24–40 (D)		19			12
2.000%, 2–24–41 (D)		19			12

OTHER GOVERNMENT SECURITIES (Continued)	Principal		Value
Greece (Continued)
2.000%, 2–24–42 (D)		EUR19	$	12
0.000%, 10–15–42 (D)(E)		378		6
				261
TOTAL OTHER GOVERNMENT SECURITIES – 0.1%			$	261
(Cost: $87)
SHORT-TERM SECURITIES
Commercial Paper – 17.2%
Fannie Mae Discount Notes, 0.020%, 11–27–13 (F)	$	2,500		2,500
Federal Home Loan Bank,
0.020%, 11–6–13 (F)		1,000		1,000
Federal Home Loan Mortgage Corporation,
0.020%, 11–22–13 (F)		6,500		6,500
Freddie Mac Discount Notes,
0.020%, 11–12–13 (F)		1,000		1,000
Straight-A Funding, LLC (GTD by Federal Financing Bank):
0.070%, 10–7–13 (F)		40,553		40,552
0.070%, 10–7–13 (F)		2,000		2,000
				53,552
United States Government Agency Obligations – 4.1%
Overseas Private Investment Corporation (GTD by United States Government):
0.130%, 10–2–13 (G)		3,327		3,327
0.130%, 10–7–13 (G)		4,038		4,076
0.130%, 10–7–13 (G)		3,500		3,500
0.130%, 10–7–13 (G)		1,297		1,297
0.130%, 10–7–13 (G)		621		621
				12,821
TOTAL SHORT-TERM SECURITIES – 21.3%			$	66,373
(Cost: $66,336)
TOTAL INVESTMENT SECURITIES – 99.3%			$	310,125
(Cost: $255,406)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				2,151
NET ASSETS – 100.0%			$	312,276

2013 SEMIANNUAL REPORT 23

SCHEDULE OF INVESTMENTS

Ivy Cundill Global Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $9,350 or 3.0% of net assets.

(C) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(D) Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro).

(E) Zero coupon bond.

(F) Rate shown is the yield to maturity at September 30, 2013.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Japanese Yen	Toronto-Dominion Bank (The)		800,000		10–30–13	$	—	$	278
Sell	Japanese Yen	Canadian Imperial Bank of Commerce		53,820		12–4–13		—		8
Sell	Japanese Yen	Scotia Capital (USA), Inc.		174,820		12–4–13		66		—
Sell	Japanese Yen	Royal Bank of Canada		933,600		1–8–14		—		263
Sell	Japanese Yen	Citibank N.A.		196,000		3–12–14		12		—
Sell	Japanese Yen	Citibank N.A.		220,000		3–12–14		—		27
							$	78	$	576

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	62,621	$	—	$	—
Energy		25,485		—		—
Financials		87,266		—		—
Industrials		38,789		—		—
Information Technology		4,014		—		—
Materials		11,734		—		—
Total Common Stocks	$	229,909	$	—	$	—
Preferred Stocks		—		9,350		—
Warrants		4,232		—		—
Other Government Securities		—		255		6
Short-Term Securities		—		66,373		—
Total	$	234,141	$	75,978	$	6
Forward Foreign Currency Contracts	$	—	$	78	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	576	$	—

During the period ended September 30, 2013, securities totaling $4 were transferred from Level 2 to Level 3 due to the lack of observable market data due to decreased market activity or information for these securities. Securities totaling $4,660 were transferred from Level 3 to Level 2 due to the increased availability of observable market data due to increased market activity or information for these securities. There were no transfers between Levels 1 and 2 during the period ended.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

24 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Cundill Global Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Financials	29.4%
Consumer Discretionary	19.9%
Industrials	12.5%
Energy	11.1%
Materials	3.7%
Information Technology	1.3%
Other Government Securities	0.1%
Other+	22.0%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 25

PORTFOLIO HIGHLIGHTS

Ivy Dividend Opportunities Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	96.6%
Information Technology	14.9%
Industrials	14.6%
Financials	13.4%
Energy	13.3%
Consumer Discretionary	13.0%
Consumer Staples	11.4%
Health Care	10.6%
Materials	5.4%
Cash and Cash Equivalents	3.4%

Lipper Rankings

Category: Lipper Equity Income Funds	Rank	Percentile
1 Year	221/379	59
3 Year	236/292	81
5 Year	236/259	91
10 Year	83/138	60

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

Top 10 Equity Holdings

Company	Sector
JPMorgan Chase & Co.	Financials
Microchip Technology Incorporated	Information Technology
Anheuser-Busch InBev S.A., ADR	Consumer Staples
Union Pacific Corporation	Industrials
Schlumberger Limited	Energy
Boeing Company (The)	Industrials
Philip Morris International Inc.	Consumer Staples
Bristol-Myers Squibb Company	Health Care
Home Depot, Inc. (The)	Consumer Discretionary
Pfizer Inc.	Health Care

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

26 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Dividend Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising – 1.5%
Omnicom Group Inc. (A)		81	$	5,135
Aerospace & Defense – 6.1%
Boeing Company (The)		81		9,500
Honeywell International Inc.		87		7,191
Lockheed Martin Corporation		35		4,458
				21,149
Apparel Retail – 2.0%
Limited Brands, Inc.		117		7,152
Asset Management & Custody Banks – 1.1%
Northern Trust Corporation		73		3,992
Brewers – 3.5%
Anheuser-Busch InBev S.A., ADR		123		12,167
Cable & Satellite – 3.2%
Comcast Corporation, Class A		161		7,263
Time Warner Cable Inc.		37		4,157
				11,420
Casinos & Gaming – 2.4%
Wynn Resorts, Limited		53		8,332
Communications Equipment – 2.1%
Cisco Systems, Inc.		307		7,200
Computer Hardware – 1.4%
Apple Inc.		10		4,863
Construction & Farm Machinery & Heavy Trucks – 0.9%
Caterpillar Inc.		40		3,301
Consumer Finance – 2.3%
Capital One Financial Corporation		115		7,891
Data Processing & Outsourced Services – 2.7%
Paychex, Inc.		92		3,741
Visa Inc., Class A		30		5,781
				9,522
Distillers & Vintners – 2.2%
Diageo plc, ADR		60		7,638
Diversified Banks – 2.3%
Wells Fargo & Company		191		7,886
Diversified Chemicals – 3.3%
Dow Chemical Company (The)		133		5,098
PPG Industries, Inc.		38		6,289
				11,387

COMMON STOCKS (Continued)	Shares		Value
Fertilizers & Agricultural Chemicals – 2.1%
Monsanto Company		71	$	7,442
Home Improvement Retail – 2.6%
Home Depot, Inc. (The)		119		9,026
Household Products – 1.5%
Colgate-Palmolive Company		89		5,295
Industrial Machinery – 2.9%
Eaton Corporation		58		3,986
Pentair, Inc.		95		6,176
				10,162
Integrated Oil & Gas – 1.5%
Occidental Petroleum Corporation		57		5,299
Investment Banking & Brokerage – 2.0%
Goldman Sachs Group, Inc. (The)		44		6,898
Oil & Gas Drilling – 2.0%
Seadrill Limited		155		6,992
Oil & Gas Equipment & Services – 6.7%
Halliburton Company		118		5,660
National Oilwell Varco, Inc.		99		7,713
Schlumberger Limited		112		9,932
				23,305
Oil & Gas Storage & Transportation – 3.1%
Energy Transfer Equity, L.P.		56		3,710
MarkWest Energy Partners, L.P.		86		6,179
Phillips 66 Partners LP (A)		34		1,046
				10,935
Other Diversified Financial Services – 3.7%
JPMorgan Chase & Co.		259		13,388
Packaged Foods & Meats – 1.5%
Mead Johnson Nutrition Company		73		5,388
Pharmaceuticals – 10.6%
Bristol-Myers Squibb Company		198		9,146
GlaxoSmithKline plc, ADR		111		5,579
Johnson & Johnson		94		8,149
Merck & Co., Inc.		109		5,204
Pfizer Inc.		314		9,011
				37,089
Property & Casualty Insurance – 2.0%
ACE Limited		75		7,008

COMMON STOCKS (Continued)	Shares		Value
Railroads – 4.7%
Kansas City Southern		44	$	4,850
Union Pacific Corporation		75		11,721
				16,571
Restaurants – 1.3%
Starbucks Corporation		59		4,576
Semiconductor Equipment – 2.0%
Applied Materials, Inc.		398		6,979
Semiconductors – 6.7%
Analog Devices, Inc.		116		5,453
Microchip Technology Incorporated		304		12,246
Texas Instruments Incorporated		146		5,877
				23,576
Tobacco – 2.7%
Philip Morris International Inc.		107		9,282
TOTAL COMMON STOCKS – 96.6%			$	338,246
(Cost: $242,168)
SHORT-TERM SECURITIES	Principal
Master Note – 2.3%
Toyota Motor Credit Corporation,
0.100%, 10–2–13 (B)	$	8,031		8,031
TOTAL SHORT-TERM SECURITIES – 2.3%			$	8,031
(Cost: $8,031)
TOTAL INVESTMENT SECURITIES – 98.9%			$	346,277
(Cost: $250,199)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1%				3,801
NET ASSETS – 100.0%			$	350,078

2013 SEMIANNUAL REPORT 27

SCHEDULE OF INVESTMENTS

Ivy Dividend Opportunities Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	338,246	$	—	$	—
Short-Term Securities		—		8,031		—
Total	$	338,246	$	8,031	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

See Accompanying Notes to Financial Statements.

28 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy European Opportunities Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	93.1%
Industrials	15.9%
Financials	14.4%
Information Technology	13.2%
Consumer Discretionary	11.6%
Health Care	11.1%
Consumer Staples	10.7%
Materials	6.9%
Energy	4.1%
Telecommunication Services	3.7%
Utilities	1.5%
Rights	0.2%
Cash and Cash Equivalents	6.7%

Lipper Rankings

Category: Lipper European Region Funds	Rank	Percentile
1 Year	106/117	90
3 Year	84/99	84
5 Year	68/85	80
10 Year	41/72	57

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

Country Weightings

Europe	93.3%
United Kingdom	33.2%
Germany	23.2%
Switzerland	15.0%
France	11.7%
Other Europe	10.2%
Cash and Cash Equivalents	6.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Wirecard AG	Germany	Information Technology	Data Processing & Outsourced Services
Linde AG	Germany	Materials	Industrial Gases
Ingenico S.A.	France	Information Technology	Electronic Equipment & Instruments
Prudential plc	United Kingdom	Financials	Life & Health Insurance
Compass Group plc	United Kingdom	Consumer Discretionary	Restaurants
Bayer AG	Germany	Health Care	Pharmaceuticals
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
Sanofi-Aventis	France	Health Care	Pharmaceuticals
ARYZTA AG	Switzerland	Consumer Staples	Packaged Foods & Meats
Experian plc	United Kingdom	Industrials	Research & Consulting Services

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

2013 SEMIANNUAL REPORT 29

SCHEDULE OF INVESTMENTS

Ivy European Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
France – 11.7%
Altran Technologies S.A.		275	$	2,262
BNP Paribas		60		4,059
Gemalto N.V.		35		3,758
Iliad S.A.		5		1,167
Ingenico S.A.		92		6,599
Sanofi-Aventis		45		4,564
Societe Generale		40		1,993
				24,402
Germany – 21.3%
Bayer AG		45		5,306
Brenntag AG		20		3,329
DaimlerChrysler AG, Registered Shares		40		3,118
Deutsche Lufthansa AG		120		2,340
Duerr AG		15		1,102
Fresenius SE & Co. KGaA		20		2,484
HeidelbergCement AG		25		1,928
Linde AG		40		7,922
NORMA Group AG		70		3,372
TOM TAILOR Holding AG (A)		60		1,369
United Internet AG		50		1,894
Wirecard AG		300		10,263
				44,427
Ireland – 2.4%
Glanbia plc		200		2,620
Paddy Power plc		30		2,425
				5,045
Italy – 2.0%
Fiat Industrial S.p.A. (A)		100		1,283
Moleskine S.p.A. (A)		1,190		2,962
				4,245
Luxembourg – 1.7%
Acergy S.A.		138		2,870
GAGFAH S.A. (A)		50		652
				3,522
Netherlands – 1.5%
Unilever N.V., Certicaaten Van Aandelen		80		3,112
Norway – 0.5%
DNB ASA		70		1,063
Portugal – 0.6%
Galp Energia, SGPS, S.A., Class B		75		1,247
Spain – 1.5%
Gas Natural SDG, S.A.		150		3,131
Switzerland – 15.0%
ARYZTA AG		66		4,417
BELIMO Holding AG, Registered Shares		1		1,748
Compagnie Financiere Richemont S.A.		30		3,006
Credit Suisse Group AG, Registered Shares		101		3,091

COMMON STOCKS (Continued)	Shares		Value
Switzerland (Continued)
Dufry AG (A)		10	$	1,504
Nestle S.A., Registered Shares		40		2,798
Roche Holdings AG, Genusscheine		17		4,585
Swatch Group Ltd (The), Bearer Shares		2		1,287
Swiss Re Ltd		50		4,136
Syngenta AG		5		2,042
Unaxis Holding AG, Registered Shares		200		2,676
				31,290
United Kingdom – 33.0%
Ashtead Group plc		425		4,235
ASOS plc (A)		40		3,329
Aurora Russia Limited (A)		283		139
Babcock International Group plc		225		4,356
Barclays plc		1,000		4,299
BG Group plc		60		1,147
BT Group plc		500		2,772
Compass Group plc		400		5,504
Countrywide plc		300		2,550
Diageo plc		100		3,181
Essentra plc		100		1,212
Experian plc		230		4,383
GlaxoSmithKline plc		100		2,521
HSBC Holdings plc		201		2,177
IMI plc		70		1,649
Imperial Tobacco Group plc		60		2,223
Prudential plc		300		5,590
Rio Tinto plc		25		1,223
Royal Dutch Shell plc, Class A		100		3,302
SABMiller plc		25		1,272
Shire plc		65		2,608
Telecity Group plc		200		2,687
Vodafone Group plc		1,100		3,847
WPP Group plc		125		2,570
				68,776
TOTAL COMMON STOCKS – 91.2%			$	190,260
(Cost: $132,605)
PREFERRED STOCKS
Germany – 1.9%
Dragerwerk AG & Co. KGaA		8		956
Henkel AG & Co. KGaA		30		3,092
				4,048
TOTAL PREFERRED STOCKS – 1.9%			$	4,048
(Cost: $3,615)

RIGHTS	Shares		Value
United Kingdom – 0.2%
Barclays plc		250	$	327
TOTAL RIGHTS – 0.2%			$	327
(Cost: $240)
SHORT-TERM SECURITIES		Principal
Commercial Paper – 5.2%
Novartis Finance Corp. (GTD by Novartis AG), 0.050%, 10–2–13 (B)	$	3,000		3,000
Prudential Funding, LLC (GTD by Prudential Financial, Inc.), 0.050%, 10–1–13 (B)		4,871		4,871
Roche Holdings, Inc., 0.050%, 10–1–13 (B)		3,000		3,000
				10,871
Master Note – 1.3%
Toyota Motor Credit Corporation,
0.100%, 10–2–13 (C)		2,672		2,672
TOTAL SHORT-TERM SECURITIES – 6.5%			$	13,543
(Cost: $13,543)
TOTAL INVESTMENT SECURITIES – 99.8%			$	208,178
(Cost: $150,003)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				359
NET ASSETS – 100.0%			$	208,537

30 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy European Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	24,113	$	—	$	—
Consumer Staples		19,623		—		—
Energy		8,567		—		—
Financials		29,747		—		—
Health Care		22,068		—		—
Industrials		33,435		—		—
Information Technology		27,463		—		—
Materials		14,328		—		—
Telecommunication Services		7,785		—		—
Utilities		3,131		—		—
Total Common Stocks	$	190,260	$	—	$	—
Preferred Stocks		4,048		—		—
Rights		327		—		—
Short-Term Securities		—		13,543		—
Total	$	194,635	$	13,543	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

GTD = Guaranteed

Market Sector Diversification
(as a % of net assets)
Industrials	15.9%
Financials	14.6%
Information Technology	13.2%
Consumer Discretionary	11.6%
Health Care	11.1%
Consumer Staples	10.7%
Materials	6.9%
Energy	4.1%
Telecommunication Services	3.7%
Utilities	1.5%
Other+	6.7%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 31

PORTFOLIO HIGHLIGHTS

Ivy Global Bond Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	7.4%
Utilities	2.3%
Health Care	1.6%
Energy	1.3%
Information Technology	0.8%
Financials	0.8%
Materials	0.6%
Bonds	90.7%
Corporate Debt Securities	62.1%
United States Government and Government Agency Obligations	24.0%
Other Government Securities	4.6%
Cash and Cash Equivalents	1.9%

Quality Weightings

Investment Grade	60.0%
AA	25.6%
A	3.6%
BBB	30.8%
Non-Investment Grade	30.7%
BB	18.6%
B	6.0%
CCC	1.9%
Non-rated	4.2%
Cash and Cash Equivalents and Equities	9.3%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

Lipper Rankings

Category: Lipper Global Income Funds	Rank	Percentile
1 Year	25/200	13
3 Year	67/145	46
5 Year	85/113	75

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

Country Weightings

North America	39.2%
United States	32.0%
Other North America	7.2%
South America	22.4%
Brazil	11.8%
Columbia	3.5%
Other South America	7.1%
Europe	21.3%
United Kingdom	4.6%
Russia	4.6%
Luxembourg	4.1%
Other Europe	8.0%
Pacific Basin	13.5%
India	4.8%
Other Pacific Basin	8.7%
Bahamas/Caribbean	0.8%
Other	0.7%
Middle East	0.2%
Cash and Cash Equivalents	1.9%

32 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Consumer Finance – 0.8%
Banco Latinoamericano de Comercio Exterior, S.A.		87	$	2,156
Diversified Chemicals – 0.6%
Dow Chemical Company (The)		42		1,621
Electric Utilities – 2.0%
Alupar Investimento S.A. (A)(B)		171		1,355
PPL Corporation		88		2,672
Transmissora Alianca de Energia Eletrica S.A. (B)		132		1,307
				5,334
Integrated Oil & Gas – 0.8%
Royal Dutch Shell plc, Class A (B)		69		2,273
Oil & Gas Drilling – 0.5%
Seadrill Partners LLC		44		1,440
Pharmaceuticals – 1.6%
Bristol-Myers Squibb Company		38		1,740
GlaxoSmithKline plc (B)		111		2,804
				4,544
Semiconductors – 0.8%
Intel Corporation		101		2,308
Water Utilities – 0.3%
Aguas Andinas S.A. (B)		1,051		724
TOTAL COMMON STOCKS – 7.4%			$	20,400
(Cost: $18,355)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense – 1.1%
Bombardier Inc.,
7.500%, 3–15–18 (C)	$	1,200		1,347
Embraer Overseas Limited, 6.375%, 1–24–17		1,700		1,819
				3,166
Agricultural Products – 2.3%
CCL Finance Limited:
9.500%, 8–15–14		1,650		1,754
9.500%, 8–15–14 (C)		500		532
Corporacion Pesquera Inca S.A.C.:
9.000%, 2–10–17		2,022		2,021
9.000%, 2–10–17 (C)		1,575		1,575
Virgolino de Oliveira Finance Limited,
10.500%, 1–28–18 (C)		445		335
				6,217

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Air Freight & Logistics – 0.2%
FedEx Corporation,
7.375%, 1–15–14	$	500	$	510
Airlines – 0.6%
Aeropuertos Argentina 2000 S.A.,
10.750%, 12–1–20 (C)		1,239		1,187
TAM Capital 2 Inc.:
9.500%, 1–29–20 (C)		425		439
9.500%, 1–29–20		100		103
				1,729
Asset Management & Custody Banks – 1.0%
Bhira Investments Limited,
8.500%, 4–27–71		2,800		2,746
Auto Parts & Equipment – 0.8%
Schaeffler Finance B.V.,
7.750%, 2–15–17 (C)		750		840
Schaeffler Holding Finance B.V.,
6.875%, 8–15–18 (C)(I)		1,317		1,380
				2,220
Automotive Manufacturers – 0.5%
Tenedora Nemak, S.A. de C.V.,
5.500%, 2–28–23 (C)		1,500		1,418
Banking – 0.4%
OJSC Russian Agricultural Bank,
5.100%, 7–25–18 (C)		1,150		1,166
Broadcasting – 2.0%
Globo Comunicacoe e Participacoes S.A.:
5.307%, 5–11–17 (C)(D)		850		850
6.250%, 12–20–49 (D)		3,587		3,730
6.250%, 12–20–49 (C)(D)		1,000		1,040
				5,620
Coal & Consumable Fuels – 3.5%
Indo Energy Finance B.V.,
7.000%, 5–7–18 (C)		1,800		1,733
Indo Integrated Energy II B.V., 9.750%, 11–5–16		3,025		3,169
PT Adaro Indonesia:
7.625%, 10–22–19 (C)		2,700		2,813
7.625%, 10–22–19		1,845		1,922
				9,637
Communications Equipment – 0.2%
BC Luxco 1 S.A.,
7.375%, 1–29–20 (C)		500		475
Construction & Engineering – 2.6%
Larsen & Toubro Limited, Convertible,
3.500%, 10–22–14		2,100		2,089
OAS Financial Ltd.,
8.875%, 4–29–49 (D)		1,250		1,138

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Construction & Engineering (Continued)
Odebrecht Drilling Norbe VII/IX Ltd.,
6.350%, 6–30–21 (C)	$	2,613	$	2,658
Odebrecht Offshore Drilling Finance,
6.750%, 10–1–22 (C)		1,000		1,025
				6,910
Construction Materials – 1.2%
CEMEX S.A.B. de C.V.:
9.000%, 1–11–18 (C)		2,000		2,155
7.250%, 1–15–21 (C)		1,200		1,202
				3,357
Consumer Finance – 1.8%
Banco BMG S.A.,
9.150%, 1–15–16		594		615
Banco Latinoamericano de Comercio Exterior, S.A.,
3.750%, 4–4–17 (C)		3,700		3,718
VEB Finance Limited,
5.375%, 2–13–17 (C)		600		635
				4,968
Distillers & Vintners – 0.1%
Diageo Capital plc,
7.375%, 1–15–14		250		255
Diversified Banks – 7.6%
Banco Bradesco S.A.,
4.125%, 5–16–16 (C)		1,850		1,924
Banco Cruzeiro do Sul S.A., 8.500%, 2–20–15 (C)(E)		1,500		370
Banco de Bogota S.A.,
5.000%, 1–15–17 (C)		400		414
Banco de Credito del Peru,
4.750%, 3–16–16 (C)		2,300		2,404
Banco Santander Brasil, S.A.,
4.500%, 4–6–15 (C)		750		767
Banco Santander Chile, S.A., 6.500%, 9–22–20 (F)	CLP	1,297,000		2,537
Bancolombia S.A., 4.250%, 1–12–16	$	1,700		1,755
ICICI Bank Limited, 4.750%, 11–25–16 (C)		1,250		1,273
SB Capital S.A., 5.499%, 7–7–15		550		583
State Bank of India:
4.500%, 10–23–14		1,000		1,022
4.125%, 8–1–17 (C)		1,200		1,191
3.250%, 4–18–18 (C)		1,500		1,433
VTB Capital S.A., 6.000%, 4–12–17 (C)		4,710		4,958
				20,631

2013 SEMIANNUAL REPORT 33

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Metals & Mining – 3.2%
Anglo American Capital plc, 9.375%, 4–8–14	$	500	$	521
Glencore Funding LLC, 6.000%, 4–15–14 (C)		1,640		1,680
Rio Tinto Finance (USA) Limited, 8.950%, 5–1–14		750		786
Southern Peru Copper Corporation, 6.375%, 7–27–15		275		298
Suzano Trading Ltd, 5.875%, 1–23–21 (C)		2,300		2,190
Uralkali Finance Limited, 3.723%, 4–30–18 (C)		1,100		1,045
Vedanta Resources plc:
8.750%, 1–15–14		800		812
6.000%, 1–31–19 (C)		1,350		1,283
				8,615
Electric Utilities – 5.4%
Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A., 9.750%, 8–15–21 (C)		1,450		711
Emgesa S.A. E.S.P., 8.750%, 1–25–21 (F)		COP 6,930,000		3,860
ENEL Finance International S.A., 3.875%, 10–7–14 (C)	$	500		512
Listrindo Capital B.V., 6.950%, 2–21–19 (C)		2,550		2,601
Majapahit Holding B.V., 7.750%, 10–17–16		1,200		1,323
Monongahela Power Company, 7.950%, 12–15–13 (C)		1,000		1,014
Rural Electrification Corporation Limited, 4.250%, 1–25–16		1,675		1,693
RusHydro Finance Limited, 7.875%, 10–28–15 (F)		RUB 90,000		2,748
Tata Electric Companies, 8.500%, 8–19–17	$	250		266
				14,728
Food Distributors – 1.4%
Olam International Limited:
6.000% 10–15–16		700		671
5.750%, 9–20–17		1,150		1,070
7.500%, 8–12–20		2,500		2,312
				4,053
Gas Utilities – 0.2%
Transportadora de Gas del Sur S.A., 7.875%, 5–14–17		752		681

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Household Appliances – 0.8%
Controladora Mabe, S.A. de C.V., 6.500%, 12–15–15	$	2,150	$	2,241
Independent Power Producers & Energy Traders – 1.3%
China Resources Power Holdings Company Limited, 3.750%, 8–3–15		2,500		2,571
TransAlta Corporation, 5.750%, 12–15–13		1,000		1,009
				3,580
Integrated Telecommunication Services – 1.0%
Mobile TeleSystems OJSC, 5.000%, 5–30–23		700		642
TBG Global Pte. Ltd., 4.625%, 4–3–18 (C)		1,500		1,418
Verizon Communications Inc., 3.650%, 9–14–18		650		685
				2,745
Investment Banking & Brokerage – 0.4%
Morgan Stanley, 1.000%, 2–11–14 (D)(F)	CNY	7,600		1,171
Machinery – 0.6%
Rearden G Holdings EINS GmbH, 7.875%, 3–30–20 (C)	$	1,600		1,640
Marine – 1.3%
PB Issuer (No. 2) Limited, Convertible, 1.750%, 4–12–16		1,470		1,554
SCF Capital Limited:
5.375%, 10–27–17		1,150		1,163
5.375%, 10–27–17 (C)		1,000		1,011
				3,728
Multi–Utilities – 0.5%
Black Hills Corporation, 9.000%, 5–15–14		1,400		1,465
Oil & Gas Drilling – 2.2%
Lancer Finance Company (SPV) Limited, 5.850%, 12–12–16 (C)		857		861
Noble Group Limited, 4.875%, 8–5–15		1,400		1,456
QGOG Atlantic/Alaskan Rigs Ltd.:
5.250%, 7–30–18 (C)		2,409		2,466
5.250%, 7–30–18		263		270
Schahin II Finance Company (SPV) Limited, 5.875%, 9–25–22 (C)		1,178		1,125
				6,178

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Exploration & Production – 3.5%
Anadarko Petroleum Corporation, 5.750%, 6–15–14	$	500	$	517
Essar Energy Investment Limited, Convertible, 4.250%, 2–1–16		3,700		3,009
Novatek Finance Limited: 5.326%, 2–3–16 (C)		2,200		2,329
7.750%, 2–21–17 (C)(F)	RUB	55,000		1,689
Pan American Energy LLC:
7.875%, 5–7–21 (C)	$	1,000		1,000
7.875%, 5–7–21		500		500
Ras Laffan Liquefied Natural Gas Co. Ltd., 5.832%, 9–30–16		517		548
				9,592
Oil & Gas Refining & Marketing – 0.4%
Offshore Drilling Holding S.A., 8.375%, 9–20–20 (C)		1,100		1,112
Oil & Gas Storage & Transportation – 2.9%
DCP Midstream, LLC, 9.700%, 12–1–13 (C)		500		507
Empresas Publicas de Medellin E.S.P., 8.375%, 2–1–21 (F)	COP	6,300,000		3,442
Maritimes & Northeast Pipeline, L.L.C.:
7.500%, 5–31–14	$	840		869
7.500%, 5–31–14 (C)		420		435
Midcontinent Express Pipeline LLC, 5.450%, 9–15–14		560		574
Sunoco Logistics Partners Operations L.P., 8.750%, 2–15–14		500		514
TransCapital Limited, 5.670%, 3–5–14 (C)		1,700		1,734
				8,075
Other Diversified Financial Services – 0.2%
MTS International Funding Limited, 5.000%, 5–30–23 (C)		750		688
Packaged Foods & Meats – 2.4%
BFF International Limited, 7.250%, 1–28–20 (C)		2,000		2,200
Bunge Limited Finance Corp., 5.350%, 4–15–14		925		947
Cadbury Schweppes US Finance LLC, 5.125%, 10–1–13 (C)		1,000		1,000
Cosan Finance Limited, 7.000%, 2–1–17		128		142
JBS Finance II Ltd., 8.250%, 1–29–18 (C)		2,400		2,437
				6,726

34 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Paper Products – 1.8%
Fibria Overseas Finance Ltd.:
7.500%, 5–4–20 (C)	$	1,196	$	1,286
6.750%, 3–3–21 (C)		160		171
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.):
4.750%, 1–19–18 (C)		1,925		2,020
4.375%, 5–15–23 (C)		1,000		930
IRSA Inversiones y Representaciones S.A., 8.500%, 2–2–17		625		570
				4,977
Pharmaceuticals – 0.2%
Novartis Capital Corporation, 4.125%, 2–10–14		500		507
Precious Metals & Minerals – 0.3%
ALROSA Finance S.A., 8.875%, 11–17–14		850		915
Restaurants – 0.9%
Arcos Dorados B.V., 7.500%, 10–1–19 (C)		525		562
Arcos Dorados Holdings, Inc., 10.250%, 7–13–16 (F)	BRL	4,070		1,790
				2,352
Service – Other – 1.0%
Net Servicos de Comunicacao S.A., 7.500%, 1–27–20	$	2,570		2,753
Steel – 1.4%
ArcelorMittal:
9.500%, 2–15–15		500		548
4.250%, 2–25–15		500		513
Evraz Group S.A., 7.400%, 4–24–17		1,200		1,227
Steel Capital S.A., 6.250%, 7–26–16 (C)		1,500		1,590
				3,878
Tobacco – 0.2%
B.A.T. International Finance plc, 8.125%, 11–15–13		500		504
Trading Companies & Distributors – 0.5%
CITIC Resources Finance (2007) Limited, 6.750%, 5–15–14 (C)		700		716
CITIC Resources Holdings Limited: 6.750%, 5–15–14		700		714
				1,430
Wireless Telecommunication Service – 2.2%
America Movil, S.A.B. de C.V.:
5.500%, 3–1–14		500		509
3.625%, 3–30–15		800		825

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Wireless Telecommunication Service (Continued)
American Tower Corporation, 3.400%, 2–15–19	$	1,400	$	1,384
Indosat Palapa Company B.V., 7.375%, 7–29–20 (C)		650		679
Vimpel– Communications, 6.493%, 2–2–16 (C)		1,775		1,878
VimpleCom Holdings B.V., 9.000%, 2–13–18 (C)(F)	RUB	25,000		772
				6,047
TOTAL CORPORATE DEBT SECURITIES – 62.1%			$	171,406
(Cost: $172,956)
OTHER GOVERNMENT SECURITIES
Argentina – 0.8%
Aeropuertos Argentina 2000 S.A., 10.750%, 12–1–20	$	89		85
Compania Latinoamericana de Infraestructura & Servicios S.A., 9.500%, 12–15–16		815		538
Province of Buenos Aires (The), 11.750%, 10–5–15		1,700		1,606
				2,229
Brazil – 0.7%
OI S.A., 9.750%, 9–15–16 (F)	BRL	4,800		1,897
Columbia – 0.2%
Pacific Rubiales Energy Corp., 7.250%, 12–12–21 (C)	$	650		683
Ireland – 0.2%
Russian Railways via RZD Capital Ltd, 8.300%, 4–2–19 (F)	RUB	19,000		590
Luxembourg – 0.2%
BC Luxco 1 S.A., 7.375%, 1–29–20	$	550		523
Russia – 0.4%
Russian Federation, 3.500%, 1–16–19 (C)		1,200		1,209
Supranational – 0.7%
Central American Bank for Economic Integration:
5.375%, 9–24–14		1,000		1,038
3.875%, 2–9–17 (C)		800		823
				1,861

OTHER GOVERNMENT SECURITIES (Continued)	Principal		Value
Venezuela – 1.4%
Corporacion Andina de Fomento, 3.750%, 1–15–16	$	3,625	$	3,786
TOTAL OTHER GOVERNMENT SECURITIES – 4.6%			$	12,778
(Cost: $13,496)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Mortgage-Backed Obligations – 0.1%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
4.000%, 7–15–23 (G)		1,155		65
4.000%, 2–15–24 (G)		370		28
4.000%, 4–15–24 (G)		373		41
5.500%, 1–15–38 (G)		703		116
Federal National Mortgage Association Agency REMIC/CMO,
5.000%, 6–25–22 (G)		107		3
Federal National Mortgage Association Fixed Rate Pass-Through Certificates,
5.000%, 3–1–22		85		90
Government National Mortgage Association Agency REMIC/CMO, 4.500%, 11–20–36 (G)		904		64
				407
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.1%			$	407
(Cost: $1,845)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 23.9%
United States Treasury Notes:
1.750%, 7–31–15		17,980		18,456
0.500%, 6–15–16		2,800		2,798
0.875%, 2–28–17		27,000		27,043
2.375%, 7–31–17		1,980		2,083
3.500%, 5–15–20		1,980		2,184
2.625%, 11–15–20		4,500		4,681
2.125%, 8–15–21		3,500		3,472
1.750%, 5–15–22		5,475		5,187
				65,904
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 23.9%			$	65,904
(Cost: $65,774)

2013 SEMIANNUAL REPORT 35

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT–TERM SECURITIES	Principal		Value
Master Note – 0.8%
Toyota Motor Credit Corporation,
0.100%, 10–2–13 (H)	$	2,303	$	2,303
TOTAL SHORT-TERM SECURITIES – 0.8%			$	2,303
(Cost: $2,303)
TOTAL INVESTMENT SECURITIES – 98.9%			$	273,198
(Cost: $274,729)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1%				3,088
NET ASSETS – 100.0%			$	276,286

Notes to Schedule of Investments

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

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

(C) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $91,256 or 33.1% of net assets.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(E) Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(F) Principal amounts are denominated in the indicated foreign currency, where applicable (BRL-Brazilian Real, CLP-Chilean Peso, CNY-Chinese Yuan Renminbi, COP-Columbian Peso and RUB-Russian Ruble).

(G) Interest-only security. Amount shown as principal represents notional amount for computation of interest.

(H) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

(I) Payment-in-kind bonds.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	British Pound	Barclays Capital, Inc.		3,240		10–23–13	$	—	$	39

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	20,400	$	—	$	—
Corporate Debt Securities		—		167,285		4,121
Other Government Securities		—		12,240		538
United States Government Agency Obligations		—		407		—
United States Government Obligations		—		65,904		—
Short-Term Securities		—		2,303		—
Total	$	20,400	$	248,139	$	4,659
Liabilities
Forward Foreign Currency Contracts	$	—	$	39	$	—

36 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

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

	Corporate Debt Securities			Other Government Securities
Beginning Balance 4-1-13	$	2,205		$	—
Net realized gain (loss)		—	*		—
Net change in unrealized appreciation (depreciation)		(114	)		(8	)
Purchases		—			—
Sales		(138	)		—
Amortization/Accretion of premium/discount		8			2
Transfers into Level 3 during the period		2,160			544
Transfers out of Level 3 during the period		—			—
Ending Balance 9-30-13	$	4,121		$	538
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-13	$	(114	)	$	(8	)

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9-30-13	Valuation Technique(s)	Unobservable Input(s)
Assets
Corporate Debt Securities	$4,121	Broker	Broker quotes
Other Government Securities	$538	Third-party valuation service	Broker quotes

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REMIC = Real Estate Mortgage Investment Conduit

Country Diversification
(as a % of net assets)
United States	32.0%
Brazil	11.8%
India	4.8%
United Kingdom	4.6%
Russia	4.6%
Luxembourg	4.1%
Columbia	3.5%
Argentina	3.4%
Panama	3.1%
Indonesia	3.0%

Mexico	3.0%
Netherlands	2.9%
Singapore	2.5%
Ireland	2.4%
Chile	2.3%
Norway	1.4%
Venezuela	1.4%
China	1.4%
Canada	1.1%
American Samoa	1.0%
Other Countries	3.8%
Other+	1.9%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 37

PORTFOLIO HIGHLIGHTS

Ivy Global Equity Income Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	97.5%
Health Care	19.1%
Financials	14.6%
Energy	13.0%
Consumer Discretionary	12.4%
Telecommunication Services	9.7%
Industrials	8.5%
Utilities	8.2%
Materials	5.2%
Consumer Staples	3.6%
Information Technology	3.2%
Cash and Cash Equivalents	2.5%

Lipper Rankings

Category: Lipper Global Equity Income Funds	Rank	Percentile
1 Year	21/109	20

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

Country Weightings

Europe	50.5%
France	14.1%
United Kingdom	13.9%
Switzerland	5.9%
Netherlands	3.5%
Other Europe	13.1%
North America	26.2%
United States	22.5%
Canada	3.7%
Pacific Basin	17.4%
Japan	9.5%
Australia	4.6%
Other Pacific Basin	3.3%
Other	2.1%
Bahamas/Caribbean	1.3%
Cash and Cash Equivalents	2.5%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Seadrill Limited	Norway	Energy	Oil & Gas Drilling
Merck & Co., Inc.	United States	Health Care	Pharmaceuticals
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Pfizer Inc.	United States	Health Care	Pharmaceuticals
Roche Holdings AG, Genusscheine	Switzerland	Health Care	Pharmaceuticals
Vodafone Group plc	United Kingdom	Telecommunication Services	Wireless Telecommunication Service
Novartis AG, Registered Shares	Switzerland	Health Care	Pharmaceuticals
Bezeq-Israel Telecommunication Corp., Ltd. (The)	Israel	Telecommunication Services	Integrated Telecommunication Services
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Vinci	France	Industrials	Construction & Engineering

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

38 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Equity Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia – 4.6%
Mirvac Group		983	$	1,595
National Australia Bank Limited		52		1,658
Sonic Healthcare Limited		104		1,574
Telstra Corporation Limited, ADR		486		2,252
				7,079
Belgium – 1.2%
bpost S.A. de droit public / bpost NV van publiekrecht (A)		94		1,797
Bermuda – 1.3%
Catlin Group Limited		262		2,053
Canada – 3.7%
Bank of Nova Scotia Berhad (The)		31		1,771
Crescent Point Energy Corp.		56		2,129
TransCanada Corporation		38		1,683
				5,583
Denmark – 1.2%
TDC A/S		220		1,864
France – 14.1%
Bouygues SA		46		1,687
EDF S.A.		79		2,505
Gaz de France		120		3,004
Rexel S.A.		90		2,284
Sanofi-Aventis		30		3,049
Societe Generale		36		1,777
Total S.A.		48		2,776
Vinci		52		3,038
Vivendi Universal		65		1,501
				21,621
Germany – 1.1%
DaimlerChrysler AG, Registered Shares		22		1,724
Israel – 2.1%
Bezeq-Israel Telecommunication Corp., Ltd. (The)		1,729		3,179
Italy – 2.4%
Snam S.p.A.		390		1,975
Terna Rete Elettrica Nazionale S.p.A.		360		1,623
				3,598
Japan – 9.5%
Aozora Bank, Ltd.		711		2,105
Daito Trust Construction Co., Ltd		16		1,627
Fuji Media Holdings, Inc.		88		1,934
ITOCHU Corporation		114		1,388
Japan Airlines Corporation		47		2,846
Mizuho Financial Group, Inc.		728		1,578

COMMON STOCKS (Continued)	Shares		Value
Japan (Continued)
Nissan Motor Co., Ltd.		150	$	1,505
Toyota Motor Corporation		25		1,575
				14,558
Luxembourg – 1.4%
RTL Group S.A.		21		2,165
Netherlands – 3.5%
ING Groep N.V., Certicaaten Van Aandelen (A)		133		1,501
Koninklijke Philips Electronics N.V., Ordinary Shares		47		1,513
LyondellBasell Industries N.V., Class A		31		2,273
				5,287
Norway – 3.1%
Seadrill Limited		106		4,760
Singapore – 1.0%
Asian Pay Television Trust		2,257		1,466
Spain – 1.1%
Repsol YPF, S.A.		67		1,670
Switzerland – 5.9%
Nestle S.A., Registered Shares		26		1,830
Novartis AG, Registered Shares		44		3,419
Roche Holdings AG, Genusscheine		14		3,820
				9,069
Taiwan – 1.2%
Radiant Opto-Electronics Corporation		529		1,887
Thailand – 1.1%
Krung Thai Bank Public Company Limited		2,694		1,653
United Kingdom – 13.9%
BHP Billiton plc		53		1,576
BP plc		206		1,446
British American Tobacco plc		40		2,120
GlaxoSmithKline plc		64		1,616
Legal & General Group plc		638		2,026
National Grid plc		161		1,907
Petrofac Limited		86		1,962
RSA Insurance Group plc		843		1,651
SOCO International plc		265		1,690
Vodafone Group plc		1,018		3,560
WPP Group plc		81		1,660
				21,214
United States – 22.5%
Altria Group, Inc.		44		1,512
AT&T Inc.		66		2,238
Bristol-Myers Squibb Company		35		1,616

COMMON STOCKS (Continued)	Shares		Value
United States (Continued)
Cisco Systems, Inc.		62	$	1,449
Comcast Corporation, Class A		35		1,565
ConocoPhillips		27		1,905
Dow Chemical Company (The)		43		1,666
Eli Lilly and Company		34		1,722
Ford Motor Company		99		1,664
Johnson & Johnson		49		4,216
Merck & Co., Inc.		92		4,397
Microchip Technology Incorporated		40		1,621
Pfizer Inc.		140		4,029
PPL Corporation		49		1,486
Two Harbors Investment Corp.		141		1,371
Wynn Resorts, Limited		13		2,068
				34,525
TOTAL COMMON STOCKS – 95.9%			$	146,752
(Cost: $134,204)
PREFERRED STOCKS
Luxembourg – 1.6%
ArcelorMittal, 6.000% Convertible		113		2,440
TOTAL PREFERRED STOCKS –1.6%			$	2,440
(Cost: $2,512)
SHORT-TERM SECURITIES	Principal
Master Note – 0.4%
Toyota Motor Credit Corporation,
0.100%, 10–2–13 (B)	$	581		581
TOTAL SHORT-TERM SECURITIES – 0.4%			$	581
(Cost: $581)
TOTAL INVESTMENT SECURITIES – 97.9%			$	149,773
(Cost: $137,297)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 2.1%				3,162
NET ASSETS – 100.0%			$	152,935

2013 SEMIANNUAL REPORT 39

SCHEDULE OF INVESTMENTS

Ivy Global Equity Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Australian Dollar	Barclays Capital, Inc.		6,400		10–23–13	$	80	$	—
Sell	British Pound	State Street Global Markets		6,530		10–23–13		—		100
Sell	Canadian Dollar	Societe Generale Bank		5,430		10–23–13		29		—
Sell	Euro	State Street Global Markets		5,700		10–23–13		7		—
Sell	Japanese Yen	Barclays Capital, Inc.		1,277,210		10–23–13		—		152
Sell	Thai Baht	Barclays Capital, Inc.		45,400		10–24–13		12		—
							$	128	$	252

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	18,840	$	—	$	—
Consumer Staples		5,462		—		—
Energy		20,021		—		—
Financials		22,367		—		—
Health Care		29,458		—		—
Industrials		13,039		—		—
Information Technology		4,956		—		—
Materials		5,516		—		—
Telecommunication Services		14,593		—		—
Utilities		12,500		—		—
Total Common Stocks	$	146,752	$	—	$	—
Preferred Stocks		2,440		—		—
Short-Term Securities		—		581		—
Total	$	149,192	$	581	$	—
Forward Foreign Currency Contracts	$	—	$	128	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	252	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

Market Sector Diversification
(as a % of net assets)
Health Care	19.1	%
Financials	14.6	%
Energy	13.0	%
Consumer Discretionary	12.4	%
Telecommunication Services	9.7	%

Industrials	8.5	%
Utilities	8.2	%
Materials	5.2	%
Consumer Staples	3.6	%
Information Technology	3.2	%
Other+	2.5	%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

40 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Global Income Allocation Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	69.2%
Health Care	13.4%
Financials	11.8%
Consumer Discretionary	8.7%
Energy	7.9%
Telecommunication Services	7.7%
Industrials	5.7%
Utilities	5.5%
Materials	3.6%
Consumer Staples	2.5%
Information Technology	2.4%
Bonds	28.0%
Corporate Debt Securities	21.4%
Other Government Securities	5.8%
Loans	0.8%
Cash and Cash Equivalents	2.8%

Lipper Rankings

Category: Lipper Mixed-Asset Target Allocation Growth Funds	Rank	Percentile
1 Year	527/561	94
3 Year	498/508	98
5 Year	419/470	89
10 Year	51/265	20

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

Country Weightings

Europe	40.0%
France	9.5%
United Kingdom	8.8%
Netherlands	4.0%
Switzerland	3.5%
Other Europe	14.2%
North America	30.1%
United States	22.9%
Canada	4.3%
Other North America	2.9%
Pacific Basin	17.5%
Japan	6.8%
Australia	5.6%
Other Pacific Basin	5.1%
South America	5.4%
Bahamas/Caribbean	2.7%
Other	1.5%
Cash and Cash Equivalents	2.8%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Johnson & Johnson	United States	Health Care	Pharmaceuticals
Merck & Co., Inc.	United States	Health Care	Pharmaceuticals
Pfizer Inc.	United States	Health Care	Pharmaceuticals
Telstra Corporation Limited, ADR	Australia	Telecommunication Services	Integrated Telecommunication Services
Novartis AG, Registered Shares	Switzerland	Health Care	Pharmaceuticals
Bezeq-Israel Telecommunication Corp., Ltd. (The)	Israel	Telecommunication Services	Integrated Telecommunication Services
Seadrill Limited	Norway	Energy	Oil & Gas Drilling
Japan Airlines Corporation	Japan	Industrials	Airlines
Sanofi-Aventis	France	Health Care	Pharmaceuticals
Vodafone Group plc	United Kingdom	Telecommunication Services	Wireless Telecommunication Service

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

2013 SEMIANNUAL REPORT 41

SCHEDULE OF INVESTMENTS

Ivy Global Income Allocation Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia – 4.1%
Mirvac Group		2,146	$	3,483
National Australia Bank Limited		137		4,393
Sonic Healthcare Limited		236		3,568
Telstra Corporation Limited, ADR		1,667		7,730
				19,174
Belgium – 0.9%
bpost S.A. de droit public / bpost NV van publiekrecht (A)		215		4,103
Bermuda – 1.0%
Catlin Group Limited		568		4,455
Canada – 2.8%
Bank of Nova Scotia Berhad (The)		72		4,135
Crescent Point Energy Corp.		130		4,925
TransCanada Corporation		90		3,941
				13,001
Denmark – 1.1%
TDC A/S		606		5,128
France – 8.6%
Bouygues S.A.		48		1,752
EDF S.A.		171		5,424
Gaz de France		224		5,634
Rexel S.A.		173		4,405
Sanofi-Aventis		62		6,276
Societe Generale		81		4,056
Total S.A.		83		4,845
Vinci		101		5,869
Vivendi Universal		103		2,363
				40,624
Germany – 0.9%
DaimlerChrysler AG, Registered Shares		53		4,114
Israel – 1.5%
Bezeq - Israel Telecommunication Corp., Ltd. (The)		3,901		7,173
Italy – 1.6%
Snam S.p.A.		719		3,643
Terna Rete Elettrica Nazionale S.p.A.		837		3,776
				7,419
Japan – 6.8%
Aozora Bank, Ltd.		1,320		3,907
Daito Trust Construction Co., Ltd		33		3,333
Fuji Media Holdings, Inc.		183		4,018
ITOCHU Corporation		310		3,795
Japan Airlines Corporation		115		6,925
Mizuho Financial Group, Inc.		1,505		3,262
Nissan Motor Co., Ltd.		330		3,307
Toyota Motor Corporation		51		3,272
				31,819

COMMON STOCKS (Continued)	Shares		Value
Luxembourg – 0.9%
RTL Group S.A.		40	$	4,030
Netherlands – 2.2%
ING Groep N.V., Certicaaten Van Aandelen (A)		158		1,785
Koninklijke Philips Electronics N.V., Ordinary Shares		102		3,286
LyondellBasell Industries N.V., Class A		71		5,177
				10,248
Norway – 1.5%
Seadrill Limited		159		7,154
Singapore – 0.7%
Asian Pay Television Trust		4,778		3,104
Spain – 0.9%
Repsol YPF, S.A.		161		3,984
Switzerland – 3.5%
Nestle S.A., Registered Shares		54		3,763
Novartis AG, Registered Shares		100		7,668
Roche Holdings AG, Genusscheine		19		4,992
				16,423
Taiwan – 0.8%
Radiant Opto-Electronics Corporation		1,011		3,609
Thailand – 0.7%
Krung Thai Bank Public Company Limited		5,540		3,401
United Kingdom – 8.6%
BHP Billiton plc		90		2,660
BP plc		553		3,876
British American Tobacco plc		88		4,669
GlaxoSmithKline plc		148		3,737
Legal & General Group plc		1,473		4,679
National Grid plc		320		3,783
Petrofac Limited		153		3,491
RSA Insurance Group plc		1,911		3,741
Vodafone Group plc		1,784		6,238
WPP Group plc		172		3,529
				40,403
United States – 17.7%
Altria Group, Inc.		99		3,402
American Capital Mortgage Investment Corp. (A)		107		2,114
AT&T Inc.		160		5,410
Bristol-Myers Squibb Company		79		3,634
Cisco Systems, Inc.		141		3,302
Comcast Corporation, Class A		73		3,312
ConocoPhillips		73		5,101
Dow Chemical Company (The)		118		4,522
Eli Lilly and Company		73		3,693

COMMON STOCKS (Continued)	Shares		Value
United States (Continued)
Ford Motor Company		205	$	3,450
Johnson & Johnson		119		10,282
Merck & Co., Inc.		208		9,919
Microchip Technology Incorporated		102		4,116
Pfizer Inc.		324		9,304
PPL Corporation		111		3,368
Two Harbors Investment Corp.		390		3,787
Wynn Resorts, Limited		30		4,711
				83,427
TOTAL COMMON STOCKS – 66.8%			$	312,793
(Cost: $278,402)
INVESTMENT FUNDS
United States – 0.9%
Ares Capital Corporation		250		4,323
TOTAL INVESTMENT FUNDS – 0.9%			$	4,323
(Cost: $4,475)
PREFERRED STOCKS
Luxembourg – 0.9%
ArcelorMittal, 6.000% Convertible		194		4,166
United States – 0.6%
Allstate Corporation (The), 5.100%		40		928
Qwest Corporation, 6.125%		100		2,116
				3,044
TOTAL PREFERRED STOCKS – 1.5%			$	7,210
(Cost: $7,929)
CORPORATE DEBT SECURITIES	Principal
Argentina – 0.7%
Aeropuertos Argentina 2000 S.A., 10.1m750%, 12–1–20(B)	$	890		852
Arcos Dorados Holdings, Inc., 10.250%, 7–13–16 (B)(C)		BRL5,000		2,200
				3,052
Australia – 0.6%
BlueScope Steel (Finance) Limited and BlueScope Steel Finance (USA) LLC,
7.125%, 5–1–18 (B)	$	1,000		1,028

42 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Income Allocation Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Australia (Continued)
FMG Resources Pty Ltd., 6.875%, 4–1–22 (B)	$	1,750	$	1,750
				2,778
Brazil – 2.7%
AmBev International Finance Co. Ltd., 9.500%, 7–24–17 (C)		BRL7,500		3,298
Cosan Overseas Ltd, 8.250%, 11–29–49	$	500		500
Fibria Overseas Finance Ltd., 6.750%, 3–3–21 (B)		500		534
Globo Comunicacoe e Participacoes S.A., 6.250%, 12–20–49 (B)(D)		2,000		2,080
Odebrecht Drilling Norbe VII/IX Ltd., 6.350%, 6–30–21 (B)		1,388		1,412
QGOG Constellation S.A., 6.250%, 11–9–19 (B)		1,500		1,425
Sadia Overseas Ltd., 6.875%, 5–24–17		600		654
Suzano Trading Ltd, 5.875%, 1–23–21 (B)		500		476
Tonon Bioenergia S.A., 9.250%, 1–24–20 (B)		1,000		882
U.S.J. Acucar E Alcool S.A., 9.875%, 11–9–19 (B)		1,000		974
Virgolino de Oliveira Finance Limited, 10.500%, 1–28–18 (B)		500		376
				12,611
British Virgin Islands – 0.2%
OAS Financial Ltd., 8.875%, 4–29–49 (D)		1,000		910
Canada – 0.2%
Bombardier Inc., 6.125%, 1–15–23 (B)		1,000		1,000
Cayman Islands – 1.5%
Braskem Finance Limited (GTD by Braskem S.A.):
7.000%, 5–7–20 (B)		500		528
5.750%, 4–15–21 (B)		2,000		1,960
Hutchinson Whampoa Limited, 6.000%, 5–29–49 (B)		1,000		1,051
Odebrecht Finance Ltd., 7.500%, 9–29–49 (B)		500		485
Odebrecht Offshore Drilling Finance, 6.750%, 10–1–22 (B)		1,150		1,179
Petrobras International Finance Company, 5.375%, 1–27–21		1,700		1,708
				6,911

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Chile – 1.3%
Automotores Gildemeister S.A.:
8.250%, 5–24–21	$	1,250	$	1,069
6.750%, 1–15–23 (B)		250		194
Banco Santander Chile, S.A., 6.500%, 9–22–20 (C)		CLP1,682,000		3,290
GeoPark Latin America Limited Agencia en Chile:
7.500%, 2–11–20	$	1,000		997
7.500%, 2–11–20 (B)		500		499
				6,049
Columbia – 0.6%
Empresas Publicas de Medellin E.S.P., 8.375%, 2–1–21 (C)		COP3,888,000		2,125
Pacific Rubiales Energy Corp., 5.125%, 3–28–23 (B)	$	1,000		896
				3,021
France – 0.9%
Societe Generale, 8.250%, 11–29–49 (D)		1,000		990
Societe Generale N.A., 5.922%, 4–29–49 (B)		3,350		3,418
				4,408
Germany – 0.3%
Orion Engineered Carbons Holdings GmbH, 9.250%, 8–1–19 (B)(G)		1,000		1,020
Rearden G Holdings EINS GmbH, 7.875%, 3–30–20 (B)		200		205
				1,225
Hong Kong – 0.7%
China Resources Power Holdings Company Limited, 7.250%, 5–9–49 (D)		2,000		2,050
Noble Group Limited, 6.750%, 1–29–20 (B)		1,250		1,288
				3,338
India – 0.2%
Bhira Investments Limited, 8.500%, 4–27–71		895		878
Indonesia – 1.0%
Indo Energy Finance B.V., 7.000%, 5–7–18 (B)		1,000		963
PT Adaro Indonesia, 7.625%, 10–22–19 (B)		2,000		2,084
Theta Capital Ptd. Ltd., 7.000%, 5–16–19		1,550		1,527
				4,574

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Ireland – 0.4%
MTS International Funding Limited, 5.000%, 5–30–23 (B)	$	1,000	$	917
Novatek Finance Limited, 7.750%, 2–21–17 (B)(C)		RUB25,000		768
				1,685
Jersey – 0.6%
HBOS Capital Funding No. 2 L.P., 6.071%, 6–29–49 (B)	$	2,000		1,957
UBS AG, 7.250%, 2–22-22		1,000		1,073
				3,030
Luxembourg – 1.6%
Aguila 3 S.A., 7.875%, 1-31–18 (B)		1,500		1,568
BC Luxco 1 S.A., 7.375%, 1–29–20 (B)		2,000		1,900
Evraz Group S.A.:
7.400%, 4–24–17		1,000		1,022
9.500%, 4–24–18 (B)		850		920
Offshore Drilling Holding S.A., 8.375%, 9–20–20 (B)		1,500		1,517
Wind Acquisition Finance S.A., 11.750%, 7–15–17 (B)		750		797
				7,724
Mexico – 1.8%
America Movil, S.A.B. de C.V., 6.450%, 12–5–22 (C)		MXN22,000		1,573
BBVA Bancomer S.A., 6.750%, 9–30–22 (B)	$	1,750		1,811
CEMEX S.A.B. de C.V.:
9.500%, 6–15–18 (B)		1,500		1,662
7.250%, 1–15–21 (B)		1,600		1,603
Financiera Independencia, S.A.B. de C.V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada, 10.000%, 3–30–15		982		1,002
Tenedora Nemak, S.A. de C.V., 5.500%, 2–28–23 (B)		750		709
				8,360
Netherlands – 1.8%
Aerospace Satellite Corporation Holding B.V., 12.750%, 11–16–15		1,500		1,586
Listrindo Capital B.V., 6.950%, 2–21–19 (B)		750		765

2013 SEMIANNUAL REPORT 43

SCHEDULE OF INVESTMENTS

Ivy Global Income Allocation Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Netherlands (Continued)
Listrindo Capital B.V. (GTD by PT Cikarang Listrindo), 6.950%, 2–21–19	$	1,000	$	1,020
Marfrig Holdings (Europe) BV, 8.375%, 5–9–18 (B)		2,000		1,820
Schaeffler Holding Finance B.V., 6.875%, 8–15–18 (B)(G)		1,472		1,542
VimpleCom Holdings B.V., 9.000%, 2–13–18 (B)(C)		RUB50,000		1,545
				8,278
Norway – 0.4%
Corporacion Pesquera Inca S.A.C., 9.000%, 2–10–17 (B)	$	1,650		1,650
Russia – 0.2%
SCF Capital Limited, 5.375%, 10–27–17		750		758
Singapore – 0.2%
Olam International Limited:
5.750%, 9–20–17		250		233
6.000%, 8–10–18 (C)		SGD250		193
TBG Global Pte. Ltd., 4.625%, 4–3–18 (B)		500		472
				898
Turkey – 0.4%
Arcelik A.S., 5.000%, 4–3–23 (B)		250		215
Turkiye Garanti Bankasi A.S., 6.250%, 4–20–21 (B)		500		502
Türkiye Is Bankasi A.S., 6.000%, 10–24–22 (B)		1,500		1,368
				2,085
United Kingdom – 0.2%
Vedanta Resources plc, 7.125%, 5–31–23 (B)		1,000		930
United States – 2.9%
Bank of America Corporation, 8.000%, 12–29–49		1,000		1,088
B-Corp Merger Sub, Inc., 8.250%, 6–1–19		1,000		995
JBS USA LLC and JBS USA Finance, Inc., 8.250%, 2–1–20 (B)		1,500		1,579
JPMorgan Chase & Co., 6.000%, 12–29–49 (D)		3,000		2,812
Petrohawk Energy Corporation, 7.250%, 8–15–18		1,500		1,627
ServiceMaster Company (The), 8.000%, 2–15–20		1,500		1,485
TRAC Intermodal LLC and TRAC Intermodal Corp., 11.000%, 8–15–19		400		448

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
United States (Continued)
Verizon Communications Inc., 5.150%, 9–15–23	$	1,000	$	1,072
Xerox Corporation, 8.250%, 5–15–14		2,685		2,806
				13,912
TOTAL CORPORATE DEBT SECURITIES – 21.4%			$	100,065
(Cost: $103,760)
OTHER GOVERNMENT SECURITIES
Argentina – 0.1%
Aeropuertos Argentina 2000 S.A.,
10.750%, 12–1–20		445		426
Australia – 0.9%
New South Wales Treasury Corporation,
5.500%, 3–1–17 (C)		AUD4,000		4,011
Canada – 1.3%
City of Toronto,
3.500%, 12–6–21 (C)		CAD2,000		1,953
Province of Ontario,
4.400%, 6–2–19 (C)		2,000		2,125
Regional Municipality of York,
4.000%, 6–30–21 (C)		2,000		2,032
				6,110
Germany – 1.7%
KfW, Frankfurt/Main, Federal Republic of Germany:
3.250%, 5–5–14 (C)		SEK22,000		3,461
2.875%, 10–12–16 (C)		NOK26,000		4,398
				7,859
Ireland – 0.3%
Russian Railways via RZD Capital Ltd,
8.300%, 4–2–19 (C)		RUB50,000		1,552
Malaysia – 0.2%
Malaysian Government Bonds,
3.314%, 10–31–17 (C)	��	MYR3,000		913
Mexico – 1.1%
United Mexican States Government Bonds,
8.000%, 12–19–13 (C)		MXN69,000		5,318
South Korea – 0.2%
South Korea Treasury Bonds,
5.000%, 9–10–14 (C)		KRW 1,100,000		1,045
TOTAL OTHER GOVERNMENT SECURITIES – 5.8%			$	27,234
(Cost: $28,441)

LOANS	Principal		Value
United States – 0.8%
Continental Building Products, LLC, 8.500%, 2–15–21 (D)	$	1,544	$	1,540
Focus Brands, Inc.:
10.250%, 8–21–18 (D)		697		707
10.250%, 8–21–18 (D)		303		308
Misys plc and Magic Newco, LLC, 12.000%, 6–12–19 (D)		1,000		1,147
Quickrete Holdings, Inc., 0.000%, 3–19–21 (D)		187		190
				3,892
TOTAL LOANS – 0.8%			$	3,892
(Cost: $3,832)
SHORT-TERM SECURITIES
Commercial Paper – 1.1%
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (E)		5,000		5,000
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (F)		465		465
TOTAL SHORT-TERM SECURITIES – 1.2%			$	5,465
(Cost: $5,465)
TOTAL INVESTMENT SECURITIES – 98.4%			$	460,982
(Cost: $432,304)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.6%				7,328
NET ASSETS – 100.0%			$	468,310

44 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Global Income Allocation Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $58,791 or 12.6% of net assets.

(C) Principal amounts are denominated in the indicated foreign currency, where applicable (AUD - Australian Dollar, BRL - Brazilian Real, CAD - Canadian Dollar, CLP - Chilean Peso, COP - Columbian Peso, KRW - South Korean Won, MXN - Mexican Peso, MYR - Malaysian Ringgit, NOK - Norwegian Krone, RUB - Russian Ruble, SEK - Swedish Krona and SGD - Singapore Dollar).

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(E) Rate shown is the yield to maturity at September 30, 2013.

(F) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

(G) Payment-in-kind bonds.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty		Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	British Pound	Societe Generale Bank	��		14,900		10–23–13	$	—	$	220
Sell	Canadian Dollar	Societe Generale Bank			6,100		10–23–13		33		—
Sell	Euro	Societe Generale Bank			27,300		10–23–13		—		9
Sell	Israeli Shekel	Societe Generale Bank			18,300		10–23–13		42		—
Sell	Japanese Yen	Societe Generale Bank			1,471,150		10–23–13		—		174
Sell	Swedish Krona	Societe Generale Bank			26,600		10–23–13		53		—
								$	128	$	403

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	40,134	$	—	$	—
Consumer Staples		11,835		—		—
Energy		37,318		—		—
Financials		50,531		—		—
Health Care		63,070		—		—
Industrials		26,849		—		—
Information Technology		11,027		—		—
Materials		12,358		—		—
Telecommunication Services		34,043		—		—
Utilities		25,628		—		—
Total Common Stocks	$	312,793	$	—	$	—
Investment Funds		4,323		—		—
Preferred Stocks		7,210		—		—
Corporate Debt Securities		—		100,065		—
Other Government Securities		—		27,234		—
Loans		—		1,337		2,555
Short-Term Securities		—		5,465		—
Total	$	324,326	$	134,101	$	2,555
Forward Foreign Currency Contracts	$	—	$	128	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	403	$	—

There were no transfers between any levels during the period ended September 30, 2013.

2013 SEMIANNUAL REPORT 45

SCHEDULE OF INVESTMENTS

Ivy Global Income Allocation Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

Market Sector Diversification
(as a % of net assets)
Financials	16.6%
Health Care	13.4%
Energy	11.3%
Consumer Discretionary	11.2%
Telecommunication Services	8.8%

Industrials	8.1%
Utilities	6.6%
Materials	6.3%
Other Government Securities	5.8%
Consumer Staples	5.5%
Information Technology	3.6%
Other+	2.8%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

46 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy High Income Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	0.4%
Financials	0.4%
Warrants	0.0%
Bonds	97.9%
Corporate Debt Securities	67.8%
Loans	29.7%
Municipal Bonds	0.3%
Municipal Bonds – Taxable	0.1%
Cash and Cash Equivalents	1.7%

Lipper Rankings

Category: Lipper High Current Yield Funds	Rank	Percentile
1 Year	28/540	6
3 Year	6/457	2
5 Year	15/392	4
10 Year	16/263	7

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

Quality Weightings

Investment Grade	3.0%
AA	0.1%
A	0.4%
BBB	2.5%
Non-Investment Grade	94.9%
BB	16.2%
B	44.0%
CCC	28.6%
Below CCC	0.2%
Non-rated	5.9%
Cash and Cash Equivalents and Equities	2.1%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

2013 SEMIANNUAL REPORT 47

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares			Value
Casinos & Gaming – 0.0%
New Cotai Participation Corp, Class B (A)		—	*	$	509
Housewares & Specialties – 0.0%
Provo Craft & Novelty, Inc. (A)(B)		5			—
Specialized Finance – 0.4%
Maritime Finance Company Ltd. (A)(B)(C)		1,750			35,087
TOTAL COMMON STOCKS – 0.4%				$	35,596
(Cost: $35,649)
WARRANTS
Agricultural Products – 0.0%
ASG Consolidated LLC, Expires 5–15–18 (D)		13			1,612
Apparel Retail – 0.0%
St. John Knits International, Incorporated, Expires 12–31–29 (D)		48			595
TOTAL WARRANTS – 0.0%				$	2,207
(Cost: $798)
CORPORATE DEBT SECURITIES	Principal
Aerospace & Defense – 1.0%
Colt Defense LLC and Colt Finance Corp., 8.750%, 11–15–17	$	3,892			3,172
Ducommun Incorporated, 9.750%, 7–15–18		14,927			16,569
Silver II Borrower SCA and Silver II US Holdings, 7.750%, 12–15–20 (E)		31,978			32,857
TransDigm Group Incorporated, 7.500%, 7–15–21 (E)		34,783			37,392
					89,990
Agricultural Products – 0.5%
American Seafoods Group LLC, 10.750%, 5–15–16 (E)		14,876			15,471
ASG Consolidated LLC, 15.000%, 5–15–17 (E)(F)		26,696			27,029
					42,500
Air Freight & Logistics – 0.4%
TRAC Intermodal LLC and TRAC Intermodal Corp., 11.000%, 8–15–19		34,640			38,797

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Airlines – 0.9%
Air Lease Corporation:
5.625%, 4–1–17 (G)	$	74,883	$	79,750
4.750%, 3–1–20		2,485		2,442
				82,192
Alternative Carriers – 0.7%
Level 3 Communications, Inc., 8.875%, 6–1–19		10,899		11,662
Level 3 Communications, Inc. and Level 3 Financing, Inc., 7.000%, 6–1–20		24,986		25,235
Level 3 Financing, Inc.:
8.125%, 7–1–19		20,767		22,221
8.625%, 7–15–20		4,591		5,016
				64,134
Application Software – 0.2%
ACI Worldwide, Inc., 6.375%, 8–15–20 (E)		17,717		18,027
Auto Parts & Equipment – 3.2%
IDQ Acquisition Corp., 14.000%, 10–1–17 (E)(F)		29,483		30,810
IDQ Holdings, Inc., 11.500%, 4–1–17 (E)		52,733		56,820
Schaeffler Finance B.V.:
7.750%, 2–15–17 (E)		29,302		32,818
7.750%, 2–15–17 (E)(H)		EUR20,600		31,283
4.750%, 5–15–21 (E)	$	11,382		11,041
Schaeffler Holding Finance B.V.:
6.875%, 8–15–18 (E)(F)(H)		EUR49,435		70,055
6.875%, 8–15–18 (E)(F)	$	57,290		60,011
				292,838
Automotive Retail – 0.7%
Sonic Automotive, Inc.:
7.000%, 7–15–22		27,940		29,896
5.000%, 5–15–23		39,552		36,190
				66,086
Broadcasting – 1.6%
Clear Channel Outdoor Holdings, Inc.:
6.500%, 11–15–22		56,726		57,792
Spanish Broadcasting System, Inc., 12.500%, 4–15–17 (E)		5,090		5,599
WideOpenWest Finance, LLC and WideOpenWest CapitalCorp.:
10.250%, 7–15–19		47,661		51,712
13.375%, 10–15–19		24,730		28,007
				143,110

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Building Products – 2.6%
CPG Merger Sub LLC, 8.000%, 10–1–21 (E)	$	19,810	$	20,132
HD Supply, Inc.:
11.000%, 4–15–20		35,358		42,341
7.500%, 7–15–20 (E)		14,663		15,195
11.500%, 7–15–20		110,370		131,616
Ply Gem Holdings, Inc., 8.250%, 2–15–18		893		956
Ply Gem Industries, Inc., 8.250%, 2–15–18 (E)		27,085		28,575
				238,815
Cable & Satellite – 1.4%
Cablevision Systems Corporation, 5.875%, 9–15–22		41,503		40,672
CCO Holdings, LLC and CCO Holdings Capital Corp., 5.750%, 1–15–24		32,467		30,681
DISH DBS Corporation:
5.125%, 5–1–20		3,737		3,700
6.750%, 6–1–21		19,335		20,326
5.875%, 7–15–22		14,000		13,790
5.000%, 3–15–23		5,000		4,638
Univision Communications Inc., 6.750%, 9–15–22 (E)		2,829		2,985
WaveDivision Escrow LLC and WaveDivision Escrow Corp., 8.125%, 9–1–20 (E)		11,032		11,528
				128,320
Casinos & Gaming – 1.0%
Codere Finance (Luxembourg) S.A., 9.250%, 2–15–19 (E)		33,829		16,238
MCE Finance Limited, 5.000%, 2–15–21 (E)		45,217		43,409
ROC Finance LLC and ROC Finance 1 Corp., 12.125%, 9–1–18 (E)		24,627		27,274
				86,921
Coal & Consumable Fuels – 0.1%
Arch Coal, Inc., 9.875%, 6–15–19 (E)		9,507		8,461
Commodity Chemicals – 0.6%
Orion Engineered Carbons Holdings GmbH, 9.250%, 8–1–19 (E)(F)		50,667		51,680
Communications Equipment – 0.8%
Eagle Midco, Inc., 9.000%, 6–15–18 (E)(F)		71,588		71,946
Construction & Engineering – 0.2%
J.M. Huber Corporation, 9.875%, 11–1–19 (E)		12,535		14,227

48 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Construction Materials – 0.2%
Headwaters Incorporated, 7.625%, 4–1–19	$	1,333	$	1,400
Headwaters Incorporated, Convertible, 8.750%, 2–1–16		5,250		5,749
Hillman Group, Inc. (The), 10.875%, 6–1–18		11,777		12,719
				19,868
Consumer Finance – 2.0%
Creditcorp, 12.000%, 7–15–18 (E)		35,260		34,555
MISA Investments Limited, 8.625%, 8–15–18 (E)		45,809		46,152
Speedy Cash Intermediate Holdings Corp., 10.750%, 5–15–18 (E)		43,114		45,377
Speedy Group Holdings Corp., 12.000%, 11–15–17 (E)		14,715		15,304
TransUnion LLC and TransUnion Financing Corporation, 9.625%, 6–15–18 (F)		34,952		37,836
				179,224
Data Processing & Outsourced Services – 1.8%
Alliance Data Systems Corporation:
5.250%, 12–1–17 (E)		63,631		65,222
6.375%, 4–1–20 (E)		34,888		36,109
CoreLogic, Inc., 7.250%, 6–1–21		52,112		55,499
CyrusOne LP and CyrusOne Finance Corp., 6.375%, 11–15–22		10,306		10,229
				167,059
Distillers & Vintners – 0.3%
Constellation Brands, Inc.:
3.750%, 5–1–21		12,642		11,678
4.250%, 5–1–23		18,771		17,222
				28,900
Diversified Capital Markets – 0.9%
Patriot Merger Corp., 9.000%, 7–15–21 (E)		77,980		80,319
Diversified Chemicals – 0.2%
Celanese US Holdings LLC, 4.625%, 11–15–22		3,173		3,038
Kinove German Bondco GmbH,
10.000%, 6–15–18 (E)(H)		EUR 8,822		13,249
				16,287

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Metals & Mining – 2.5%
American Gilsonite Holding Company, 11.500%, 9–1–17 (E)	$	20,241	$	20,696
FMG Resources Pty Ltd.:
6.375%, 2–1–16 (E)		2,000		2,045
6.000%, 4–1–17 (E)		9,871		10,118
6.875%, 2–1–18 (E)		2,485		2,597
8.250%, 11–1–19 (E)		52,522		56,592
6.875%, 4–1–22 (E)		55,155		55,155
Magnetation LLC and Mag Finance Corp., 11.000%, 5–15–18 (E)		73,879		71,663
				218,866
Diversified Support Services – 0.4%
Algeco Scotsman Global Finance plc, 10.750%, 10–15–19 (E)		11,100		11,156
Nexeo Solutions, LLC, 8.375%, 3–1–18		28,849		28,704
				39,860
Education Services – 2.8%
Laureate Education, Inc., 9.250%, 9–1–19 (E)		235,206		254,022
Electric Utilities – 0.2%
Alliant Holdings, 7.875%, 12–15–20 (E)		19,189		19,573
Electronic Manufacturing Services – 0.2%
KEMET Corporation, 10.500%, 5–1–18		16,772		14,927
Finance – 2.4%
Mobile Challenger Intermediate Group S.A.:
8.750%, 3–15–19 (E)(F)(H)		EUR 67,200		82,391
Stearns Holdings Inc., 9.375%, 8–15–20 (E)	$	22,590		23,042
TMX Finance LLC and TitleMax Finance Corporation, 8.500%, 9–15–18 (E)		94,061		98,293
TransUnion Holding Company, Inc., 8.125%, 6–15–18 (F)		20,348		21,569
				225,295
Food Distributors – 3.4%
Hawk Acquisition Sub, Inc., 4.250%, 10–15–20 (E)		14,942		14,251
Michael Foods Holding, Inc., 8.500%, 7–15–18 (E)(F)		32,455		33,672
Simmons Foods, Inc., 10.500%, 11–1–17 (E)		14,755		15,456
Sun Merger Sub, Inc.:
5.250%, 8–1–18 (E)		13,064		13,391
5.875%, 8–1–21 (E)		13,064		13,244
U.S. Foodservice, Inc., 8.500%, 6–30–19		214,113		225,621
				315,635

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Gaming – 0.6%
New Cotai, LLC and New Cotai Capital Corp., 10.625%, 5–1–19 (E)(F)	$	40,000	$	40,000
Pinnacle Entertainment, Inc. and PNK Finance Corp., 6.375%, 8–1–21 (E)		15,223		15,527
				55,527
Health Care Equipment – 0.4%
Immucor, Inc., 11.125%, 8–15–19		29,809		32,790
Health Care Facilities – 2.0%
ConvaTec Finance International S.A., 8.250%, 1–15–19 (E)(F)		21,958		21,958
Physio-Control International, Inc., 9.875%, 1–15–19 (E)		16,108		18,041
Tenet Healthcare Corporation:
6.000%, 10–1–20 (E)		29,304		29,963
8.125%, 4–1–22 (E)		79,864		83,359
6.875%, 11–15–31		38,869		32,942
				186,263
Health Care Services – 0.8%
MedImpact Holdings, Inc., 10.500%, 2–1–18 (E)		42,039		45,612
Truven Health Analytics, 10.625%, 6–1–20		23,101		25,180
				70,792
Health Care Technology – 0.8%
MedAssets, Inc., 8.000%, 11–15–18		65,759		70,855
Home Furnishings – 0.1%
Empire Today, LLC and Empire Today Finance Corp., 11.375%, 2–1–17 (E)		6,846		5,554
Hotels & Gaming – 0.6%
Hilton Worldwide Finance, LLC, 5.625%, 10–15–21 (E)		53,430		53,564
Independent Power Producers & Energy Traders – 0.3%
Texas Competitive Electric Holdings Company, LLC and TCEH Finance, Inc., 11.500%, 10–1–20 (E)		2,150		1,486
Trionista HoldCo GmbH, 5.000%, 4–30–20 (E)(H)		EUR 2,000		2,733
Trionista TopCo GmbH, 6.875%, 4–30–21 (E)(H)		15,000		20,851
				25,070

2013 SEMIANNUAL REPORT 49

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Industrial Machinery – 0.6%
Dynacast International LLC and Dynacast Finance Inc., 9.250%, 7–15–19	$	12,424	$	13,604
Gardner Denver, Inc. and Renaissance AcquisitionCorp., 6.875%, 8–15–21 (E)		37,106		36,642
				50,246
Integrated Telecommunication Services – 1.1%
CenturyLink, Inc., 5.625%, 4–1–20		17,159		16,751
Verizon Communications Inc.:
3.650%, 9–14–18		9,431		9,940
4.500%, 9–15–20		18,862		20,062
5.150%, 9–15–23		47,155		50,562
				97,315
Investment Banking & Brokerage – 0.7%
GFI Group Inc., 10.375%, 7–19–18		22,863		22,920
Isabelle Acquisition Sub Inc., 10.000%, 11–15–18 (F)		37,274		40,722
				63,642
IT Consulting & Other Services – 0.2%
SRA International, Inc. and Sterling Merger, Inc., 11.000%, 10–1–19		18,725		19,474
Leasing – 0.3%
Flexi-Van Leasing, Inc., 7.875%, 8–15–18 (E)		25,687		26,586
Leisure Facilities – 0.5%
Palace Entertainment Holdings, LLC, 8.875%, 4–15–17 (E)		16,302		16,587
Regal Entertainment Group, 5.750%, 2–1–25		21,184		19,542
Viking Cruises, Ltd., 8.500%, 10–15–22 (E)		8,604		9,529
				45,658
Life Sciences Tools & Services – 0.5%
VWR Funding, Inc., 7.250%, 9–15–17		38,621		40,745
Metal & Glass Containers – 1.0%
Ball Corporation, 4.000%, 11–15–23		8,000		7,180
BlueScope Steel (Finance) Limited and BlueScope Steel Finance (USA) LLC, 7.125%, 5–1–18 (E)		25,837		26,548
Consolidated Container Company LLC and Consolidated Container Capital, Inc., 10.125%, 7–15–20 (E)		54,537		58,354
				92,082

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Movies & Entertainment – 0.4%
Cinemark USA, Inc.:
5.125%, 12–15–22	$	9,662	$	9,058
4.875%, 6–1–23		28,235		25,976
				35,034
Oil & Gas Equipment & Services – 0.3%
Global Geophysical Services, Inc.: 10.500%, 5–1–17		31,841		26,115
Oil & Gas Exploration & Production – 0.2%
Sabine Pass Liquefaction, LLC:
5.625%, 2–1–21 (E)		15,639		15,307
5.625%, 4–15–23 (E)		5,302		5,083
				20,390
Oil & Gas Refining & Marketing – 2.5%
Energy Partners Ltd., 8.250%, 2–15–18		31,514		33,247
Offshore Drilling Holding S.A., 8.375%, 9–20–20 (E)		56,526		57,162
Offshore Group Investment Limited:
7.500%, 11–1–19		33,650		35,417
7.125%, 4–1–23		26,084		25,432
Samson Investment Company, 10.250%, 2–15–20 (E)(G)		32,564		34,518
Shelf Drilling Holdings, Ltd., 8.625%, 11–1–18 (E)		36,993		39,305
				225,081
Oil Services – 1.5%
Foresight Energy LLC and Foresight Energy FinanceCorporation, 7.875%, 8–15–21 (E)		37,707		37,707
SESI, LLC, 7.125%, 12–15–21		45,000		49,162
Sidewinder Drilling Inc, 9.750%, 11–15–19 (E)		9,651		9,361
Whiting Petroleum Corporation:
5.000%, 3–15–19		18,282		18,328
5.750%, 3–15–21		16,972		17,439
				131,997
Packaged Foods & Meats – 0.3%
Bumble Bee Foods, LLC, 9.625%, 3–15–18 (E)(F)		22,038		22,920
Paper Packaging – 0.1%
Reynolds Group Holdings Limited, 9.000%, 4–15–19		12,000		12,600
Pharmaceuticals – 0.5%
Jaguar Holding Co I, 9.375%, 10–15–17 (E)(F)		47,043		49,748

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Precious Metals & Minerals – 0.3%
Prince Mineral Holding Corp, 11.500%, 12–15–19 (E)	$	28,016	$	29,837
Property & Casualty Insurance – 0.8%
Hub International Limited, 8.125%, 10–15–18 (E)		4,969		5,547
Onex USI Acquisition Corp., 7.750%, 1–15–21 (E)		68,771		68,771
				74,318
Restaurants – 0.2%
Dave & Buster’s, Inc., 0.000%, 2–15–16 (E)(I)		27,855		22,423
Retail Stores – 2.9%
Central Garden & Pet Company, 8.250%, 3–1–18		32,016		31,616
Jo-Ann Stores Holdings, Inc., 9.750%, 10–15–19 (E)(F)		58,720		60,335
Jo-Ann Stores, Inc., 8.125%, 3–15–19 (E)		1,476		1,506
Michaels FinCo Holdings, LLC, 7.500%, 8–1–18 (E)(F)		67,889		68,738
PC Nextco Holdings, LLC and PC Nextco Finance, Inc., 8.750%, 8–15–19 (E)(F)		14,610		14,610
Pinnacle Operating Corporation, 9.000%, 11–15–20 (E)		80,363		82,271
				259,076
Satellite – 1.4%
Sirius XM Radio Inc.:
4.250%, 5–15–20 (E)		7,511		7,023
5.875%, 10–1–20 (E)		19,863		20,037
5.750%, 8–1–21 (E)		42,475		42,263
4.625%, 5–15–23 (E)		67,613		61,696
				131,019
Service – Other – 2.5%
AA Bond Co Limited, 9.500%, 7–31–19 (E)(H)		GBP 59,536		103,612
Bankrate, Inc., 6.125%, 8–15–18 (E)	$	24,256		24,195
B-Corp Merger Sub, Inc., 8.250%, 6–1–19		70,406		70,054
Nielsen Finance, 5.500%, 10–1–21 (E)		25,651		25,683
				223,544
Specialized Consumer Services – 2.3%
Carlson Wagonlit B.V.:
6.875%, 6–15–19 (E)		28,185		28,467
7.500%, 6–15–19 (E)(H)		EUR7, 963		11,258
ServiceMaster Company (The):
8.000%, 2–15–20	$	112,165		111,043
7.000%, 8–15–20		63,543		60,048
				210,816

50 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Specialized Finance – 0.2%
CNG Holdings, Inc., 9.375%, 5–15–20 (E)	$	5,626	$	5,204
Consolidated Communications Finance Co., 10.875%, 6–1–20		7,590		8,691
				13,895
Specialized REITs – 0.8%
CNL Lifestyles Properties, Inc. , 7.250%, 4–15–19		74,508		76,371
Specialty Stores – 1.1%
New Academy Finance Co LLC, 8.000%, 6–15–18 (E)(F)		27,931		28,629
Spencer Spirit Holdings, Inc., 9.000%, 5–1–18 (E)(F)		15,006		14,631
Takko Luxembourg 2 S.C.A., 9.875%, 4–15–19 (E)(H)		EUR 44,062		58,119
				101,379
Technology – 1.7%
Artesyn Escrow, Inc., 9.750%, 10–15–20 (E)	$	22,027		22,027
Atlantis Merger Sub, Inc. and SoftBrands, Inc., 11.500%, 7–15–18		39,900		46,085
Epicor Software Corporation, 8.625%, 5–1–19		27,397		29,246
J2 Global, Inc., 8.000%, 8–1–20		46,682		50,183
VeriSign, Inc., 4.625%, 5–1–23 (E)		11,230		10,556
				158,097
Technology Distributors – 0.6%
Sophia, L.P. and Sophia Finance, Inc., 9.750%, 1–15–19 (E)		48,442		52,560
Textiles – 0.3%
Quiksilver, Inc. and QS Wholesale, Inc.:
7.875%, 8–1–18 (E)		10,412		10,855
10.000%, 8–1–20 (E)		12,522		13,179
				24,034
Thrifts & Mortgage Finance – 0.6%
Provident Funding Associates, L.P. and PFG Finance Corp.:
10.125%, 2–15–19 (E)		10,379		11,469
6.750%, 6–15–21 (E)		38,210		38,401
				49,870
Wireless – 2.6%
DigitalGlobe, Inc., 5.250%, 2–1–21 (E)		17,331		16,551

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Wireless (Continued)
Sprint Corporation:
7.250%, 9–15–21 (E)	$	112,706	$	113,833
7.875%, 9–15–23 (E)		98,967		100,946
				231,330
TOTAL CORPORATE DEBT SECURITIES – 67.8%			$	6,136,496
(Cost: $5,944,917)
MUNICIPAL BONDS
Puerto Rico – 0.3%
PR Aqueduct and Sewer Auth Rev Bonds, Ser 2012A (Sr Lien):
5.750%, 7–1–37		9,485		7,008
5.250%, 7–1–42		9,485		6,541
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX, 5.750%, 7–1–36		2,845		2,124
PR Elec Power Auth, Power Rev Bonds, Ser 2013A, 7.000%, 7–1–33		3,795		3,166
PR Elec Power Auth, Power Rev Bonds, Ser WW, 5.500%, 7–1–38		11,380		8,162
				27,001
TOTAL MUNICIPAL BONDS – 0.3%			$	27,001
(Cost: $26,310)
MUNICIPAL BONDS – TAXABLE
Arizona – 0.1%
AZ Hlth Fac Auth, Rev Bonds (Banner Hlth), Ser 2007B, 0.994%, 1–1–37 (G)		4,875		3,690
New York – 0.0%
NYC Indl Dev Agy, Rental Rev Bonds (Yankee Stadium Proj), Ser 2009, 11.000%, 3–1–29 (E)		1,875		2,636
TOTAL MUNICIPAL BONDS – TAXABLE – 0.1%			$	6,326
(Cost: $5,096)
LOANS
Apparel Retail – 1.0%
True Religion Apparel, Inc.:
5.875%, 7-29-19 (G)		79,730		75,012
11.000%, 1-29-20 (G)		16,838		15,996
				91,008

LOANS (Continued)	Principal		Value
Application Software – 2.5%
Misys plc and Magic Newco, LLC:
0.000%, 6–12–19 (G)	$	18,827	$	21,588
12.000%, 6–12–19 (G)		182,348		209,093
				230,681
Auto Parts & Equipment – 0.4%
Alliance Tire Group:
11.375%, 6–25–21 (B)(F)(G)		35,000		35,007
Broadcasting – 0.8%
PAW LUXCO II S.A.R.L., 5.128%, 7-29-17 (G)(H)		EUR 56,675		70,971
Cable & Satellite – 0.2%
Wilton Brands LLC, 7.500%, 8–7–19 (G)	$	17,927		17,568
Casinos & Gaming – 0.1%
Centaur Acquisition, LLC, 8.750%, 1–31–20 (G)		5,163		5,189
ROC Finance, L.L.C., 5.000%, 3–27–19 (G)		3,782		3,778
				8,967
Chemicals – 0.1%
Al Chem & Cy S.C.A., 4.750%, 9–12–19 (G)(H)		EUR 3,441		4,656
Construction Materials – 0.5%
Continental Building Products, LLC:
0.000%, 2–15–21 (G)	$	6,235		6,219
8.500%, 2–15–21 (G)		24,058		23,998
Quickrete Holdings, Inc.:
0.000%, 9–19–20 (G)		7,094		7,088
0.000%, 3–19–21 (G)		7,924		8,049
				45,354
Diversified Capital Markets – 0.5%
Intrawest U.S. Holdings, Inc., 10.750%, 12–3–18 (G)		43,000		44,111
Diversified Chemicals – 0.3%
Arysta LifeScience SPC, LLC, 8.250%, 11–22–20 (G)		22,000		21,936
Oxea GmbH, 8.250%, 6–6–20 (G)		1,830		1,820
				23,756
Diversified Metals & Mining – 1.9%
FMG Resources Pty Ltd., 5.250%, 10–18–17 (G)		177,009		177,420
Diversified Real Estate Activities – 4.9%
HLT Property Acquisition, LLC:
3.555%, 11–12–16 (G)		47,306		47,424
3.683%, 11–12–16 (G)		60,927		60,623
3.933%, 11–12–16 (G)		78,335		78,041

2013 SEMIANNUAL REPORT 51

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

LOANS (Continued)	Principal		Value
Diversified Real Estate Activities (Continued)
4.183%, 11–12–16 (G)	$	121,931	$	121,474
4.433%, 11–12–16 (G)		70,540		70,275
4.683%, 11–12–16 (G)		67,134		66,798
				444,635
Diversified Support Services – 1.0%
Advantage Sales & Marketing, Inc.: 8.250%, 6–18–18 (G)		33,483		33,797
Sprint Industrial Holdings, LLC:
7.000%, 4–23–19 (G)		36,215		36,352
11.250%, 4–23–19 (G)		10,642		10,615
				80,764
Food Distributors – 1.6%
U.S. Foods, Inc., 4.500%, 3–31–19 (G)		143,883		142,895
Food Retail – 0.4%
Focus Brands, Inc.: 10.250%, 8–21–18 (G)		36,399		36,945
Health Care Facilities – 0.8%
Surgery Center Holdings, Inc.:
6.000%, 4–11–19 (G)		28,710		28,710
0.000%, 4–11–20 (G)		5,000		4,975
9.750%, 4–11–20 (G)		39,000		38,805
				72,490
Health Care Supplies – 0.3%
Sage Products Holdings III, LLC, 9.250%, 6-13-20 (G)		30,299		30,981
Health Care Technology – 0.3%
Merge Healthcare, Inc., 6.000%, 4–1–19 (G)		24,387		23,046
Hotels & Gaming – 1.5%
Hilton Worldwide Finance, LLC, 0.000%, 9–23–20 (G)		136,000		135,752
Hotels, Resorts & Cruise Lines – 0.2%
Four Seasons Hotels Limited, 6.250%, 12–13–20 (G)		20,273		20,678
Housewares & Specialties – 0.0%
Provo Craft & Novelty, Inc.: 15.000%, 3–2–16 (F)(G)		9,519		190
Independent Power Producers & Energy Traders – 1.0%
Alinta Energy Finance PTY Limited:
0.000%, 8–7–19 (G)		4,640		4,445
6.375%, 8–7–19 (G)		70,923		67,939
Texas Competitive Electric Holdings Company, LLC:
4.682%, 10–10–17 (G)		14,045		9,443
4.766%, 10–10–17 (G)		6,869		4,618
				86,445

LOANS (Continued)	Principal		Value
Industrial Machinery – 0.8%
Gardner Denver, Inc.:
4.250%, 7–23–20 (G)	$	36,470	$	36,080
4.750%, 7–23–20 (G)(H)		EUR11,121		15,094
United Central Industrial Supply Company, LLC, 7.500%, 10–12–18 (G)	$	28,908		25,728
				76,902
Internet Software & Services – 0.2%
W3 Co.:
0.000%, 8–21–20 (G)		2,993		3,045
9.250%, 8–21–20 (G)		10,729		10,917
				13,962
IT Consulting & Other Services – 0.8%
Infor Global Solutions European Finance, S.a.R.L., 13.375%, 4–5–17 (F)(G)		5,251		5,645
SRA International, Inc., 6.500%, 7–20–18 (G)		5,720		5,649
Triple Point Group Holdings, Inc.:
5.250%, 7–11–20 (G)		36,356		35,265
9.250%, 7–11–21 (G)		26,516		25,058
				71,617
Leisure Facilities – 0.3%
Northfield Park Associates LLC, 9.000%, 11–9–18 (G)		26,003		26,783
Metal & Glass Containers – 0.3%
Evergreen Tank Solution, Inc., 9.500%, 9–11–18 (G)		28,602		28,459
Movies & Entertainment – 3.6%
Formula One Holdings Ltd. and Alpha Topco Limited, 9.250%, 10–16–19 (G)		160,000		166,601
Formula One Holdings Ltd. and Delta Two S.a.r.l., 4.500%, 4–30–19 (G)		163,369		163,880
Yonkers Racing Corporation, 8.750%, 7–22–20 (G)		5,000		4,950
				335,431
Oil & Gas Exploration & Production – 0.5%
Fieldwood Energy, LLC, 0.000%, 9–30–20 (G)		33,098		32,964
Sabine Oil & Gas LLC, 8.750%, 12–31–18 (G)		13,548		13,573
				46,537
Oil & Gas Storage & Transportation – 0.8%
Bowie Resources Holdings, LLC:
6.750%, 8–9–20 (G)		47,385		47,622
11.750%, 2–15–21 (G)		28,431		27,720
				75,342

LOANS (Continued)	Principal		Value
Other Diversified Financial Services – 0.2%
Cetera Financial Group, Inc., 6.500%, 7–15–19 (G)	$	20,000	$	19,817
Paper Packaging – 0.3%
FPC Holdings, Inc., 9.250%, 5–16–20 (G)		29,897		27,561
Research & Consulting Services – 0.5%
Larchmont Resources, LLC: 8.250%, 8–1–19 (G)		49,886		49,730
Restaurants – 0.3%
Brasa Holdings, Inc., 11.000%, 12–18–19 (G)		24,429		24,551
Specialized Consumer Services – 0.2%
ServiceMaster Company (The), 4.250%, 2–28–17 (G)		14,295		13,911
Specialized Finance – 0.6%
Orchard Acquisition Company, LLC, 9.000%, 2–4–19 (G)		36,578		36,715
Precision Capital PTE. LTD., 7.250%, 10–22–18 (G)		19,500		18,720
				55,435
TOTAL LOANS – 29.7%			$	2,690,358
(Cost: $2,636,970)
SHORT-TERM SECURITIES
Commercial Paper – 0.2%
CVS Caremark Corporation, 0.290%, 12–3–13 (J)		5,000		4,997
Diageo Capital plc (GTD by Diageo plc), 0.210%, 10–10–13 (J)		5,000		5,000
Hewlett-Packard Company, 0.360%, 10–28–13 (J)		3,500		3,499
Verizon Communications Inc., 0.210%, 10–21–13 (J)		6,000		5,999
				19,495
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (K)		33		33
Municipal Obligations – Taxable – 0.0%
NJ Hlth Care Fac Fin Auth, Rev Bonds, AHS Hosp Corp Issue, Ser 2008C (GTD by JPMorgan Chase & Co.), 0.070%, 10–7–13 (K)		1,200		1,200

52 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
United States Government Agency Obligations – 0.1%
Overseas Private Investment Corporation (GTD by United States Government), 0.130%, 10–7–13 (K)	$	5,331	$	5,331
TOTAL SHORT-TERM SECURITIES – 0.3%			$	26,059
(Cost: $26,060)
TOTAL INVESTMENT SECURITIES – 98.6%			$	8,924,043
(Cost: $8,675,800)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.4%				127,798
NET ASSETS – 100.0%			$	9,051,841

Notes to Schedule of Investments

* Not shown due to rounding.

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

(B) Restricted securities. At September 30, 2013, the Fund owned the following restricted securities:

Security	Acquisition Date(s)	Shares		Cost		Market Value
Maritime Finance Company Ltd.	9–19–13		1,750	$	35,000	$	35,087
Provo Craft & Novelty, Inc.	9–15–11		5		1		—
		Principal
Alliance Tire Group	6–25–13		$35,000		34,255		35,007
				$	69,256	$	70,094

The total value of these securities represented 0.8% of net assets at September 30, 2013.

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

(D) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(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. At September 30, 2013, the total value of these securities amounted to $3,836,380 or 42.4% of net assets.

(F) Payment-in-kind bonds.

(G) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(H) Principal amounts are denominated in the indicated foreign currency, where applicable (EUR - Euro and GBP - British Pound).

(I) Zero coupon bond.

(J) Rate shown is the yield to maturity at September 30, 2013.

(K) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	British Pound	Morgan Stanley International		84,400		10–23–13	$	—	$	1,308
Sell	Euro	Morgan Stanley International		217,438		10–23–13		—		295
Sell	Euro	Morgan Stanley International		720		11–15–13		41		—
Sell	Euro	Deutsche Bank AG		676		12–16–13		25		—

2013 SEMIANNUAL REPORT 53

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Euro	Deutsche Bank AG		932		2–3–14	$	47	$	—
Sell	Euro	Morgan Stanley International		720		5–15–14		36		—
Sell	Euro	Deutsche Bank AG		676		6–16–14		22		—
Sell	Euro	Deutsche Bank AG		932		8–1–14		44		—
Sell	Euro	Morgan Stanley International		720		11–14–14		35		—
Sell	Euro	Deutsche Bank AG		676		12–15–14		22		—
Sell	Euro	Deutsche Bank AG		932		2–2–15		40		—
Sell	Euro	Morgan Stanley International		729		5–15–15		—		32
Sell	Euro	Deutsche Bank AG		676		6–15–15		19		—
Sell	Euro	Deutsche Bank AG		932		8–3–15		36		—
Sell	Euro	Morgan Stanley International		729		11–16–15		—		34
Sell	Euro	Deutsche Bank AG		676		12–15–15		19		—
Sell	Euro	Deutsche Bank AG		932		2–1–16		35		—
Sell	Euro	Morgan Stanley International		5,980		5–16–16		—		310
Sell	Euro	Deutsche Bank AG		676		6–15–16		18		—
Sell	Euro	Deutsche Bank AG		932		8–1–16		32		—
Sell	Euro	Deutsche Bank AG		676		12–15–16		17		—
Sell	Euro	Deutsche Bank AG		932		2–1–17		29		—
Sell	Euro	Deutsche Bank AG		676		6–15–17		15		—
Sell	Euro	Morgan Stanley International		58,615		7–31–17		—		4,240
Sell	Euro	Deutsche Bank AG		932		8–1–17		25		—
Sell	Euro	Deutsche Bank AG		676		12–15–17		13		—
Sell	Euro	Deutsche Bank AG		932		2–1–18		22		—
Sell	Euro	Deutsche Bank AG		8,887		6–15–18		171		—
Sell	Euro	Deutsche Bank AG		2,346		6–15–18		—		1
Sell	Euro	Deutsche Bank AG		932		8–1–18		18		—
Sell	Euro	Deutsche Bank AG		932		2–1–19		13		—
Sell	Euro	Deutsche Bank AG		19,799		8–1–19		135		—
Sell	Swiss Franc	Deutsche Bank AG		26,100		10–23–13		—		228
							$	929	$	6,448

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	—	$	35,087	$	509
Warrants		—		1,612		595
Corporate Debt Securities		—		6,010,204		126,292
Municipal Bonds		—		33,327		—
Loans		—		2,036,235		654,123
Short-Term Securities		—		26,059		—
Total	$	—	$	8,142,524	$	781,519
Forward Foreign Currency Contracts	$	—	$	929	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	6,448	$	—

54 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

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

	Common Stocks			Warrants			Corporate Debt Securities			Loans			Short-Term Securities
Beginning Balance 4–1–13	$	—		$	3,143		$	93,646		$	503,760		$	5,475
Net realized gain (loss)		—			—			—			2,858			—
Net change in unrealized appreciation (depreciation)		(139	)		(2,548	)		(972	)		(11,934	)		—
Purchases		648			—			40,013			357,425			—
Sales		—			—			—			(241,872	)		—
Amortization/Accretion of premium/discount		—			—			(57	)		736			—
Transfers into Level 3 during the period		—			—			87,308			144,760			—
Transfers out of Level 3 during the period		—			—			(93,646	)		(101,610	)		(5,475	)
Ending Balance 9–30–13	$	509		$	595		$	126,292		$	654,123		$	—
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–13	($	139	)	($	2,548	)	($	972	)	($	8,197	)	$	—

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9–30–13	Valuation Technique(s)	Unobservable Input(s)
Assets
Common Stocks	$509	Broker	Broker quotes
Warrants	$595	Broker	Broker quotes
Corporate Debt Securities	$126,292	Third-party vendor pricing service	Broker quotes
Loans	$654,123	Third-party vendor pricing service	Broker quotes

The following acronyms are used throughout this schedule:

GTD = Guaranteed

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 55

PORTFOLIO HIGHLIGHTS

Ivy International Core Equity Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	98.3%
Financials	18.5%
Consumer Discretionary	14.3%
Health Care	11.7%
Consumer Staples	11.2%
Information Technology	9.7%
Energy	9.2%
Telecommunication Services	8.9%
Industrials	8.0%
Materials	5.3%
Utilities	1.5%
Cash and Cash Equivalents	1.7%

Lipper Rankings

Category: Lipper International Large-Cap Core Funds	Rank	Percentile
1 Year	98/173	57
3 Year	108/146	74
5 Year	7/132	6
10 Year	5/91	6

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

Country Weightings

Europe	58.6%
United Kingdom	20.6%
France	12.5%
Germany	8.0%
Switzerland	4.2%
Sweden	3.7%
Netherlands	3.6%
Other Europe	6.0%
Pacific Basin	32.2%
Japan	18.3%
Australia	4.2%
China	4.0%
Other Pacific Basin	5.7%
North America	2.8%
South America	2.8%
Other	1.9%
Cash and Cash Equivalents	1.7%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Shire plc	United Kingdom	Health Care	Pharmaceuticals
Total S.A.	France	Energy	Integrated Oil & Gas
Royal Dutch Shell plc, Class A	United Kingdom	Energy	Integrated Oil & Gas
DaimlerChrysler AG, Registered Shares	Germany	Consumer Discretionary	Automobile Manufacturers
ING Groep N.V., Certicaaten Van Aandelen	Netherlands	Financials	Other Diversified Financial Services
GlaxoSmithKline plc	United Kingdom	Health Care	Pharmaceuticals
Cheung Kong (Holdings) Limited	Hong Kong	Financials	Real Estate Development
Sumitomo Mitsui Trust Holdings, Inc.	Japan	Financials	Diversified Banks
Rio Tinto plc	United Kingdom	Materials	Diversified Metals & Mining
Teva Pharmaceutical Industries Limited, ADR	Israel	Health Care	Pharmaceuticals

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

56 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy International Core Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia – 4.2%
Amcor Limited		2,071	$	20,205
Incitec Pivot Limited		6,542		16,416
Stockland Corporation Limited		5,367		19,376
Telstra Corporation Limited, ADR		3,931		18,227
				74,224
Belgium – 1.1%
Anheuser-Busch InBev S.A., ADR		201		19,958
Brazil – 2.8%
BRMalls Participacoes S.A.		1,024		9,339
Hypermarcas S.A.		2,692		21,623
TIM Participacoes S.A.		3,112		14,461
TIM Participacoes S.A., ADR		198		4,669
				50,092
China – 4.0%
Baidu.com, Inc., ADR (A)		137		21,298
China Construction Bank Corporation		34,665		26,683
China Unicom Limited		14,890		23,230
				71,211
Denmark – 1.1%
TDC A/S		2,315		19,590
Finland – 1.0%
Nokia OYJ		2,798		18,391
France – 12.5%
Cap Gemini S.A.		428		25,436
Casino, Guichard-Perrachon		189		19,460
European Aeronautic Defence and Space Company		448		28,538
Gaz de France		1,090		27,388
Publicis Groupe S.A. (A)		305		24,246
Sanofi-Aventis		226		22,964
Total S.A.		841		48,821
Vinci		447		25,975
				222,828
Germany – 8.0%
Bayer AG		215		25,409
DaimlerChrysler AG, Registered Shares		572		44,559
Deutsche Bank AG		450		20,668
Deutsche Lufthansa AG		877		17,109
Dialog Semiconductor plc (A)		750		14,344
Siemens AG		173		20,876
				142,965
Hong Kong – 2.0%
Cheung Kong (Holdings) Limited		2,388		36,362
Israel – 1.9%
Teva Pharmaceutical Industries Limited, ADR		875		33,056
Japan – 18.3%
Aisin Seiki Co., Ltd.		604		25,707
Aozora Bank, Ltd.		1,773		5,249

COMMON STOCKS (Continued)	Shares		Value
Japan (Continued)
Asahi Breweries, Ltd.		828	$	21,711
Chiyoda Corporation		2,413		28,967
Daito Trust Construction Co., Ltd		224		22,366
Fuji Media Holdings, Inc.		1,059		23,250
Honda Motor Co., Ltd.		727		27,636
Inpex Corp		1,640		19,321
Isuzu Motors Limited		3,042		19,992
Komatsu Ltd.		824		20,448
Nissin Kogyo Co., Ltd.		1,455		27,565
Shin-Etsu Chemical Co., Ltd.		368		22,432
Softbank Corp.		424		29,268
Sumitomo Mitsui Trust Holdings, Inc.		6,789		33,498
				327,410
Luxembourg – 1.6%
Acergy S.A.		1,359		28,246
Netherlands – 3.6%
ING Groep N.V., Certicaaten Van Aandelen (A)		3,774		42,642
Koninklijke Ahold N.V.		1,223		21,191
				63,833
Singapore – 1.2%
United Overseas Bank Limited		1,335		21,995
South Korea – 2.5%
Hyundai Mobis		80		21,238
Samsung Electronics Co., Ltd.		18		22,909
				44,147
Spain – 1.2%
Amadeus IT Holding, S.A.		600		21,264
Sweden – 3.7%
Investor AB, B Shares		904		27,444
Swedish Match AB		487		17,202
TeliaSonera AB		2,752		21,086
				65,732
Switzerland – 4.2%
Credit Suisse Group AG, Registered Shares		538		16,421
Credit Suisse Group, ADR		96		2,948
Nestle S.A., Registered Shares		425		29,716
Novartis AG, Registered Shares		338		25,991
				75,076
United Kingdom – 20.6%
Burberry Group plc		853		22,560
GlaxoSmithKline plc		1,620		40,846
Kingfisher plc		3,170		19,807
Petrofac Limited		1,127		25,645
Prudential plc		1,132		21,084
Reckitt Benckiser Group plc		293		21,440

COMMON STOCKS (Continued)	Shares		Value
United Kingdom (Continued)
Rio Tinto plc		681	$	33,341
Royal Dutch Shell plc, Class A		1,375		45,352
Shire plc		1,499		60,123
Standard Chartered plc		934		22,386
Unilever plc		714		28,201
Vodafone Group plc		8,202		28,680
				369,465
United States – 2.8%
Cognizant Technology Solutions Corporation, Class A (A)		258		21,183
Yahoo! Inc. (A)		862		28,588
				49,771
TOTAL COMMON STOCKS – 98.3%			$	1,755,616
(Cost: $1,513,421)
SHORT-TERM SECURITIES	Principal
Certificate Of Deposit – 0.3%
Toronto-Dominion Bank,
0.110%, 10–17–13	$	5,000		5,000
Commercial Paper – 1.2%
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB), 0.180%, 10–18–13 (B)		1,800		1,800
Danaher Corporation, 0.090%, 10–24–13 (B)		6,000		5,999
John Deere Canada ULC (GTD by Deere & Company), 0.080%, 10–16–13 (B)		4,000		4,000
L Air Liquide S.A., 0.200%, 11–22–13 (B)		4,000		3,999
Novartis Finance Corp. (GTD by Novartis AG), 0.050%, 10–2–13 (B)		3,000		3,000
Prudential Funding, LLC (GTD by Prudential Financial, Inc.), 0.050%, 10–1–13 (B)		3,182		3,182
				21,980
TOTAL SHORT-TERM SECURITIES – 1.5%			$	26,980
(Cost: $26,981)
TOTAL INVESTMENT SECURITIES – 99.8%			$	1,782,596
(Cost: $1,540,402)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				3,295
NET ASSETS – 100.0%			$	1,785,891

2013 SEMIANNUAL REPORT 57

SCHEDULE OF INVESTMENTS

Ivy International Core Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Euro	Barclays Capital, Inc.		87,600		10–23–13	$	68	$	—
Sell	Japanese Yen	Barclays Capital, Inc.		7,415,000		10–23–13		—		885
							$	68	$	885

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Dialog Semiconductor plc	Morgan Stanley & Co., Inc.	Call		65,080		October 2013		EUR15.14	$	24	$	(14	)
	JPMorgan Chase Bank N.A.	Call		65,079		October 2013		15.39		30		(12	)
	JPMorgan Chase Bank N.A.	Call		43,532		October 2013		15.49		22		(7	)
	Morgan Stanley & Co., Inc.	Call		43,423		October 2013		15.78		15		(5	)
	Morgan Stanley & Co., Inc.	Call		16,757		October 2013		15.91		6		(2	)
Nissin Kogyo Co., Ltd.	JPMorgan Chase Bank N.A.	Call		214,750		October 2013		JPY2,035.03		66		(14	)
	JPMorgan Chase Bank N.A.	Call		76,270		October 2013		2,088.91		21		(3	)
									$	184	$	(57	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	256,561	$	—	$	—
Consumer Staples		200,502		—		—
Energy		167,382		—		—
Financials		328,462		—		—
Health Care		208,389		—		—
Industrials		141,914		—		—
Information Technology		173,413		—		—
Materials		92,394		—		—
Telecommunication Services		159,211		—		—
Utilities		27,388		—		—
Total Common Stocks	$	1,755,616	$	—	$	—
Short-Term Securities		—		26,980		—
Total	$	1,755,616	$	26,980	$	—
Forward Foreign Currency Contracts	$	—	$	68	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	885	$	—
Written Options	$	—	$	57	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

OTC = Over the Counter

58 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy International Core Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Market Sector Diversification
(as a % of net assets)
Financials	18.5%
Consumer Discretionary	14.3%
Health Care	11.7%
Consumer Staples	11.2%
Information Technology	9.7%

Energy	9.2%
Telecommunication Services	8.9%
Industrials	8.0%
Materials	5.3%
Utilities	1.5%
Other+	1.7%

+ Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 59

PORTFOLIO HIGHLIGHTS

Ivy International Growth Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	94.6%
Consumer Discretionary	23.2%
Industrials	20.1%
Health Care	15.0%
Information Technology	10.6%
Financials	9.8%
Consumer Staples	5.8%
Materials	5.1%
Energy	2.9%
Telecommunication Services	2.1%
Cash and Cash Equivalents	5.4%

Lipper Rankings

Category: Lipper International Large-Cap Growth Funds	Rank	Percentile
1 Year	131/150	87
3 Year	16/136	12
5 Year	36/126	29
10 Year	47/91	52

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

Country Weightings

Europe	56.6%
France	15.4%
United Kingdom	14.1%
Germany	12.6%
Switzerland	4.3%
Other Europe	10.2%
Pacific Basin	30.9%
Japan	16.6%
Hong Kong	4.2%
Australia	4.0%
South Korea	3.6%
Other Pacific Basin	2.5%
North America	5.1%
United States	3.7%
Other North America	1.4%
Other	2.0%
Cash and Cash Equivalents	5.4%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Galaxy Entertainment Group Limited, ADR	Hong Kong	Consumer Discretionary	Casinos & Gaming
Safran	France	Industrials	Aerospace & Defense
Shire plc	United Kingdom	Health Care	Pharmaceuticals
Vinci	France	Industrials	Construction & Engineering
Bayer AG	Germany	Health Care	Pharmaceuticals
DaimlerChrysler AG, Registered Shares	Germany	Consumer Discretionary	Automobile Manufacturers
Diageo plc	United Kingdom	Consumer Staples	Distillers & Vintners
InBev NV	United States	Consumer Staples	Brewers
Telstra Corporation Limited, ADR	Australia	Telecommunication Services	Integrated Telecommunication Services
ASML Holding N.V., Ordinary Shares	Netherlands	Information Technology	Semiconductor Equipment

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

60 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy International Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Australia – 4.0%
Coca-Cola Amatil Limited		281	$	3,213
David Jones Limited		1,280		3,450
Telstra Corporation Limited, ADR		1,624		7,530
				14,193
Canada – 0.8%
Agrium Inc.		33		2,740
China – 0.7%
Ping An Insurance (Group) Company of China, Ltd., A Shares		451		2,628
Finland – 1.0%
Nokia OYJ		549		3,608
France – 15.4%
Alstom		85		3,011
Cap Gemini S.A.		108		6,420
Compagnie Generale des Etablissements Michelin, Class B		54		5,949
European Aeronautic Defence and Space Company		97		6,167
LVMH Moet Hennessy–Louis Vuitton		28		5,602
Safran		172		10,594
Sanofi-Aventis		64		6,476
Vinci		162		9,421
				53,640
Germany – 11.0%
adidas AG		37		3,992
Bayer AG		76		9,000
DaimlerChrysler AG, Registered Shares		114		8,875
Deutsche Lufthansa AG		216		4,204
Fresenius SE & Co. KGaA		57		7,125
Linde AG		19		3,686
SAP AG		23		1,721
				38,603
Hong Kong – 4.2%
Galaxy Entertainment Group Limited, ADR		1,524		10,689
Yue Yuen Industrial (Holdings) Limited		1,504		4,197
				14,886
India – 0.7%
NMDC Limited		1,251		2,399
Ireland – 1.4%
Smurfit Kappa Group plc		223		5,027
Israel – 2.0%
Teva Pharmaceutical Industries Limited, ADR		188		7,105
Japan – 16.6%
Bridgestone Corporation		195		7,085
Daihatsu Motor Co., Ltd.		162		3,131
Fuji Heavy Industries Ltd.		130		3,584
JGC Corporation		118		4,250

COMMON STOCKS (Continued)	Shares		Value
Japan (Continued)
Komatsu Ltd.		158	$	3,930
Mitsubishi Corporation		246		4,975
Mitsubishi Electric Corporation		345		3,615
Mitsui & Co., Ltd.		166		2,405
Mizuho Financial Group, Inc.		1,891		4,097
Nissin Kogyo Co., Ltd.		260		4,919
ORIX Corporation		448		7,275
Sumitomo Corporation		255		3,429
Sumitomo Mitsui Trust Holdings, Inc.		296		1,461
Tokyo Electron Limited		72		3,837
				57,993
Mexico – 0.6%
Grupo Financiero Banorte, S.A.B. de C.V.		313		1,948
Netherlands – 2.1%
ASML Holding N.V., Ordinary Shares		76		7,509
Norway – 2.8%
Seadrill Limited		133		5,951
Yara International ASA		98		4,064
				10,015
South Korea – 3.6%
Hyundai Motor Company		30		7,018
Samsung Electronics Co., Ltd.		4		5,610
				12,628
Sweden – 2.9%
AB Volvo, Class B		357		5,342
Telefonaktiebolaget LM Ericsson, B Shares		365		4,850
				10,192
Switzerland – 4.3%
Credit Suisse Group AG, Registered Shares		155		4,724
Novartis AG, Registered Shares		80		6,169
Swatch Group Ltd (The), Bearer Shares		7		4,331
				15,224
Taiwan – 1.1%
MediaTek Incorporation		300		3,709
United Kingdom – 14.1%
Capita Group plc (The)		151		2,441
Diageo plc		272		8,644
Experian plc		316		6,017
GlaxoSmithKline plc		282		7,122
Lloyds Banking Group Plc (A)		4,963		5,912
Pearson plc		169		3,429
Prudential plc		339		6,311
Shire plc		244		9,807
				49,683

COMMON STOCKS (Continued)	Shares		Value
United States – 3.7%
InBev NV		85	$	8,485
Schlumberger Limited		53		4,685
				13,170
TOTAL COMMON STOCKS – 93.0%			$	326,900
(Cost: $272,816)
PREFERRED STOCKS
Germany – 1.6%
Volkswagen AG, 2.260%		24		5,561
TOTAL PREFERRED STOCKS – 1.6%			$	5,561
(Cost: $4,860)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 4.8%
CVS Caremark Corporation, 0.180%, 10–4–13 (B)	$	3,000		3,000
Danaher Corporation, 0.090%, 10–25–13 (B)		5,000		4,999
Diageo Capital plc (GTD by Diageo plc), 0.180%, 10–7–13 (B)		5,000		5,000
Wal-Mart Stores, Inc., 0.060%, 10–8–13 (B)		4,000		4,000
				16,999
Master Note – 1.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)		3,419		3,419
Municipal Obligations – Taxable – 0.3%
MS Business Fin Corp, Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007D (GTD by Chevron Corporation), 0.050%, 10–1–13 (C)		1,000		1,000
TOTAL SHORT-TERM SECURITIES – 6.1%			$	21,418
(Cost: $21,418)
TOTAL INVESTMENT SECURITIES – 100.7%			$353,879
(Cost: $299,094)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.7%)			(2,374)
NET ASSETS – 100.0%			$	351,505

2013 SEMIANNUAL REPORT 61

SCHEDULE OF INVESTMENTS

Ivy International Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following forward foreign currency contracts were outstanding at September 30, 2013:

Type	Currency	Counterparty	Principal Amount of Contract (Denominated in Indicated Currency)		Settlement Date		Unrealized Appreciation		Unrealized Depreciation
Sell	Euro	Societe Generale Bank		46,900		10–23–13	$	—	$	15
Sell	Japanese Yen	Goldman Sachs International		2,066,800		10–23–13		—		213
							$	—	$	228

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	76,253	$	—	$	—
Consumer Staples		20,342		—		—
Energy		10,636		—		—
Financials		34,355		—		—
Health Care		52,805		—		—
Industrials		69,801		—		—
Information Technology		37,263		—		—
Materials		17,916		—		—
Telecommunication Services		7,529		—		—
Total Common Stocks	$	326,900	$	—	$	—
Preferred Stocks		5,561		—		—
Short-Term Securities		—		21,418		—
Total	$	332,461	$	21,418	$	—
Liabilities
Forward Foreign Currency Contracts	$	—	$	228	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

Market Sector Diversification
(as a % of net assets)
Consumer Discretionary	23.2%
Industrials	20.1%
Health Care	15.0%
Information Technology	10.6%

Financials	9.8%
Consumer Staples	5.8%
Materials	5.1%
Energy	2.9%
Telecommunication Services	2.1%
Other+	5.4%

+Includes cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

62 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Large Cap Growth Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	99.2%
Consumer Discretionary	30.2%
Information Technology	27.0%
Industrials	14.7%
Health Care	12.3%
Materials	3.9%
Consumer Staples	3.9%
Energy	2.8%
Telecommunication Services	2.5%
Financials	1.5%
Retailing	0.4%
Cash and Cash Equivalents	0.8%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	271/705	39
3 Year	286/606	48
5 Year	402/538	75
10 Year	88/365	25

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

Top 10 Equity Holdings

Company	Sector
MasterCard Incorporated, Class A	Information Technology
Gilead Sciences, Inc.	Health Care
Las Vegas Sands, Inc.	Consumer Discretionary
Visa Inc., Class A	Information Technology
Monsanto Company	Materials
Wynn Resorts, Limited	Consumer Discretionary
CBS Corporation, Class B	Consumer Discretionary
Applied Materials, Inc.	Information Technology
Apple Inc.	Information Technology
Harley-Davidson, Inc.	Consumer Discretionary

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

2013 SEMIANNUAL REPORT 63

SCHEDULE OF INVESTMENTS

Ivy Large Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 4.0%
Boeing Company (The)		265	$	31,125
Precision Castparts Corp.		109		24,656
				55,781
Apparel Retail – 0.8%
Limited Brands, Inc.		173		10,595
Apparel, Accessories & Luxury Goods – 1.3%
lululemon athletica inc. (A)		116		8,471
Under Armour, Inc., Class A (A)		118		9,359
				17,830
Automotive Retail – 1.9%
AutoZone, Inc. (A)		37		15,768
O’Reilly Automotive, Inc. (A)		81		10,309
				26,077
Biotechnology – 6.9%
Biogen Idec Inc. (A)		150		36,069
Gilead Sciences, Inc. (A)		957		60,138
				96,207
Brewers – 2.3%
Anheuser-Busch InBev S.A., ADR		322		31,963
Broadcasting – 2.8%
CBS Corporation, Class B		717		39,566
Cable & Satellite – 2.2%
Comcast Corporation, Class A		449		20,290
Time Warner Cable Inc.		97		10,849
				31,139
Casinos & Gaming – 7.1%
Las Vegas Sands, Inc.		870		57,798
Wynn Resorts, Limited		272		42,931
				100,729
Commercial Serv-Finance – 1.0%
FleetCor Technologies, Inc. (A)		126		13,924
Communications Equipment – 2.1%
Cisco Systems, Inc.		1,248		29,235
Computer Hardware – 2.6%
Apple Inc.		77		36,710
Construction & Farm Machinery & Heavy Trucks – 0.2%
Caterpillar Inc.		32		2,634
Consulting Services – 0.3%
Towers Watson & Co., Class A		42		4,503
Consumer Electronics – 1.3%
Harman International Industries, Incorporated		281		18,591

COMMON STOCKS (Continued)	Shares		Value
Data Processing & Outsourced Services – 7.6%
MasterCard Incorporated, Class A		92	$	61,896
Visa Inc., Class A		235		44,928
				106,824
Diversified Chemicals – 0.8%
PPG Industries, Inc.		64		10,625
Electronic Compo-Semicon – 1.4%
Xilinx, Inc.		418		19,569
Fertilizers & Agricultural Chemicals – 3.1%
Monsanto Company		424		44,211
Footwear – 2.0%
NIKE, Inc., Class B		392		28,489
Health Care Facilities – 1.5%
HCA Holdings, Inc.		507		21,657
Home Improvement Retail – 2.5%
Home Depot, Inc. (The)		454		34,406
Human Resources – 0.4%
Robert Half International Inc.		158		6,171
Industrial Machinery – 2.8%
Pall Corporation		195		15,046
Pentair, Inc.		381		24,736
				39,782
Internet Retail – 1.8%
Amazon.com, Inc. (A)		82		25,574
Internet Software & Services – 6.2%
Facebook, Inc., Class A (A)		592		29,762
Google Inc., Class A (A)		38		32,847
LinkedIn Corp (A)		98		24,138
				86,747
Medical-Biomedical/Gene – 2.2%
Celgene Corporation (A)		197		30,309
Motorcycle Manufacturers – 2.6%
Harley-Davidson, Inc.		565		36,296
Movies & Entertainment – 1.0%
News Corporation Limited, Class A		418		14,006
Multi-Line Insurance – 1.5%
American International Group, Inc.		431		20,964
Oil & Gas Equipment & Services – 2.8%
National Oilwell Varco, Inc.		137		10,732
Schlumberger Limited		321		28,382
				39,114

COMMON STOCKS (Continued)	Shares		Value
Pharmaceuticals – 1.7%
Bristol-Myers Squibb Company		379	$	17,522
Shire Pharmaceuticals Group plc, ADR		55		6,618
				24,140
Railroads – 6.6%
Canadian Pacific Railway Limited		241		29,740
Kansas City Southern		242		26,410
Union Pacific Corporation		223		34,657
				90,807
Research & Consulting Services – 0.4%
Verisk Analytics, Inc., Class A (A)		84		5,463
Restaurants – 1.8%
Starbucks Corporation		327		25,200
Retail-Consumer Electron – 0.4%
Best Buy Co., Inc.		144		5,400
Semiconductor Equipment – 3.8%
Applied Materials, Inc.		2,163		37,944
ASML Holding N.V., NY Registry Shares		149		14,721
				52,665
Semiconductors – 1.9%
Altera Corporation		518		19,234
Microchip Technology Incorporated		168		6,785
				26,019
Specialty Stores – 1.1%
Ulta Salon, Cosmetics & Fragrance, Inc. (A)		130		15,542
Systems Software – 0.4%
VMware, Inc., Class A (A)		73		5,938
Tobacco – 1.6%
Philip Morris International Inc.		266		22,998
Wireless Telecommunication Service – 2.5%
American Tower Corporation, Class A		141		10,452
Crown Castle International Corp. (A)		329		24,035
				34,487
TOTAL COMMON STOCKS – 99.2%			$	1,388,887
(Cost: $982,231)

64 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Large Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 0.9%
CVS Caremark Corporation, 0.180%, 10–4–13 (B)	$	4,000	$	4,000
McCormick & Co. Inc., 0.160%, 10–1–13 (B)		3,280		3,280
Target Corporation, 0.060%, 10–17–13 (B)		5,000		5,000
				12,280
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)		608		608
TOTAL SHORT-TERM SECURITIES – 0.9%			$	12,888
(Cost: $12,888)
TOTAL INVESTMENT SECURITIES – 100.1%			$	1,401,775
(Cost: $995,119)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%)				(1,982	)
NET ASSETS – 100.0%			$	1,399,793

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	1,388,887	$	—	$	—
Short-Term Securities		—		12,888		—
Total	$	1,388,887	$	12,888	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 65

PORTFOLIO HIGHLIGHTS

Ivy Limited-Term Bond Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Bonds	90.5%
Corporate Debt Securities	71.6%
United States Government and Government Agency Obligations	18.0%
Municipal Bonds – Taxable	0.9%
Cash and Cash Equivalents	9.5%

Lipper Rankings

Category: Lipper Short-Intermediate Investment Grade Debt Funds	Rank	Percentile
1 Year	113/159	71
3 Year	98/118	83
5 Year	77/104	74
10 Year	50/86	58

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

Quality Weightings

Investment Grade	87.1%
AAA	0.4%
AA	22.1%
A	30.0%
BBB	34.6%
Non-Investment Grade	3.4%
BB	2.8%
B	0.6%
Cash and Cash Equivalents	9.5%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

66 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Limited-Term Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
Aerospace & Defense – 0.9%
Bombardier Inc., 7.500%, 3–15–18 (A)	$	12,875	$	14,452
Apparel Retail – 1.0%
Limited Brands, Inc., 8.500%, 6–15–19		13,000		15,503
Apparel, Accessories & Luxury Goods – 0.9%
LVMH Moet Hennessy – Louis Vuitton, 1.625%, 6–29–17 (A)		15,000		14,964
Automobile Manufacturers – 2.7%
Nissan Motor Acceptance Corporation, 1.950%, 9–12–17 (A)		15,000		14,918
Toyota Motor Credit Corporation, 2.000%, 9–15–16		13,250		13,616
Volkswagen International Finance N.V.: 1.625%, 3–22–15 (A)		10,606		10,743
2.375%, 3–22–17 (A)		5,500		5,637
				44,914
Automobile Mfg. / Vehicle Parts – 0.4%
General Motors Co., 3.500%, 10–2–18 (A)		6,500		6,484
Automotive Manufacturers – 0.3%
Hyundai Capital America, 1.875%, 8–9–16 (A)		4,000		4,018
Automotive Retail – 0.4%
Johnson Controls, Inc., 1.750%, 3–1–14		6,619		6,651
Banking – 0.3%
Commonwealth Bank of Australia New York, 1.950%, 3–16–15		5,000		5,097
Biotechnology – 0.7%
Amgen Inc., 2.125%, 5–15–17		10,500		10,658
Brewers – 1.1%
Anheuser-Busch InBev SA/NV, 1.250%, 1–17–18		1,000		980
Anheuser-Busch InBev Worldwide Inc., 1.375%, 7–15–17		16,692		16,625
				17,605
Broadcasting – 1.1%
CBS Corporation, 7.625%, 1–15–16		15,000		17,103

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Cable & Satellite – 1.8%
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.:
5.875%, 10–1–19	$	9,000	$	10,051
5.200%, 3–15–20		6,000		6,346
5.000%, 3–1–21		3,850		3,943
TCI Communications, Inc.,
8.750%, 8–1–15		7,000		7,982
				28,322
Coal & Consumable Fuels – 1.0%
Joy Global Inc., 6.000%, 11–15–16		14,900		16,708
Consumer Finance – 5.8%
American Express Company, 7.000%, 3–19–18		10,000		12,050
American Express Credit Corporation, 1.300%, 7–29–16		5,320		5,353
American Honda Finance Corporation:
1.450%, 2–27–15 (A)		10,995		11,102
1.500%, 9–11–17 (A)		6,000		5,931
Capital One Financial Corporation:
7.375%, 5–23–14		2,000		2,085
2.150%, 3–23–15		5,500		5,589
6.750%, 9–15–17		9,000		10,580
Ford Motor Company LLC, 5.000%, 5–15–18		17,500		19,177
Penske Truck Leasing Co., LP and PTL Finance Corp.:
2.500%, 7–11–14 (A)		6,000		6,067
3.750%, 5–11–17 (A)		10,350		10,835
USAA Capital Corporation, 1.050%, 9–30–14 (A)		4,000		4,022
				92,791
Data Processing & Outsourced Services – 1.3%
Alliance Data Systems Corporation, 5.250%, 12–1–17 (A)		6,600		6,765
Fidelity National Financial, Inc., 6.600%, 5–15–17		12,215		13,629
				20,394
Department Stores – 0.9%
Macy’s Retail Holdings, Inc., 7.450%, 7–15–17		12,100		14,343
Distillers & Vintners – 1.0%
Diageo Capital plc, 5.750%, 10–23–17		13,500		15,522
Diversified Banks – 3.7%
Bank of America Corporation:
5.650%, 5–1–18		6,000		6,772
7.625%, 6–1–19		9,000		11,039

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Diversified Banks (Continued)
Bank of Nova Scotia (The), 1.375%, 7–15–16	$	5,050	$	5,086
Barclays Bank plc, 2.375%, 1–13–14		4,000		4,022
HSBC Bank plc, 3.100%, 5–24–16 (A)		6,000		6,311
U.S. Bancorp, 2.200%, 11–15–16		10,000		10,304
Wachovia Corporation, 5.750%, 2–1–18		13,500		15,597
				59,131
Diversified Chemicals – 1.7%
Dow Chemical Company (The), 4.250%, 11–15–20		14,382		15,026
E.I. du Pont de Nemours and Company, 2.750%, 4–1–16		11,500		11,999
				27,025
Diversified Metals & Mining – 1.1%
Rio Tinto Finance (USA) Limited:
8.950%, 5–1–14		5,000		5,241
2.250%, 9–20–16		12,500		12,805
				18,046
Drug Retail – 0.4%
Walgreen Co., 1.800%, 9–15–17		6,500		6,524
Electric – 0.6%
Dayton Power & Light Company (The), 1.875%, 9–15–16 (A)		4,000		4,032
Mississippi Power Company, 2.350%, 10–15–16		5,425		5,588
				9,620
Electronic Manufacturing Services – 0.8%
Jabil Circuit, Inc., 7.750%, 7–15–16		11,290		12,786
Environmental & Facilities Services – 1.7%
Republic Services, Inc., 3.800%, 5–15–18		13,690		14,582
Waste Management, Inc., 6.100%, 3–15–18		10,000		11,642
				26,224
Food Distributors – 2.2%
Campbell Soup Company, 3.375%, 8–15–14		13,283		13,626
ConAgra Foods, Inc.:
1.300%, 1–25–16		7,940		7,950
7.000%, 4–15–19		10,742		12,896
				34,472
Forest Products – 1.0%
Georgia-Pacific, LLC, 5.400%, 11–1–20 (A)		14,000		15,671

2013 SEMIANNUAL REPORT 67

SCHEDULE OF INVESTMENTS

Ivy Limited-Term Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Health Care Equipment – 0.7%
Stryker Corporation, 2.000%, 9–30–16	$	11,575	$	11,899
Health Care Services – 1.9%
Medco Health Solutions, Inc., 2.750%, 9–15–15		15,375		15,887
Quest Diagnostics Incorporated, 3.200%, 4–1–16		14,000		14,575
				30,462
Health Care Supplies – 0.3%
DENTSPLY International Inc., 2.750%, 8–15–16		4,000		4,121
Home Improvement Retail – 1.3%
Lowe’s Companies, Inc.:
5.000%, 10–15–15		8,000		8,681
2.125%, 4–15–16		11,366		11,710
				20,391
Independent Finance – 0.9%
John Deere Capital Corporation, 1.200%, 10–10–17		15,000		14,770
Industrial Conglomerates – 1.1%
General Electric Capital Corporation, 5.625%, 5–1–18		15,500		17,789
Integrated Oil & Gas – 1.1%
Petro-Canada, 6.050%, 5–15–18		14,700		17,140
Integrated Telecommunication Services – 2.0%
AT&T Inc., 2.950%, 5–15–16		6,715		7,023
CC Holdings GS V LLC, 2.381%, 12–15–17		8,335		8,219
Verizon Communications Inc., 6.350%, 4–1–19		14,000		16,433
				31,675
Internet Software & Services – 0.3%
eBay Inc., 1.350%, 7–15–17		5,000		4,966
Investment Banking & Brokerage – 1.9%
Goldman Sachs Group, Inc. (The):
3.700%, 8–1–15		6,460		6,740
7.500%, 2–15–19		9,000		10,877
Morgan Stanley, 4.100%, 1–26–15		12,000		12,433
				30,050
Leisure Products – 0.2%
Mattel, Inc., 2.500%, 11–1–16		2,500		2,581
Life & Health Insurance – 0.8%
MetLife, Inc., 6.817%, 8–15–18		11,000		13,312

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Metal & Glass Containers – 0.7%
FBG Finance Ltd., 7.875%, 6–1–16 (A)	$	9,000	$	10,526
Multi-Utilities – 0.9%
Dominion Resources, Inc., Ser A, 1.400%, 9–15–17		14,850		14,644
Office Electronics – 1.0%
Xerox Corporation, 6.350%, 5–15–18		14,000		16,082
Oil & Gas – 0.8%
BP Capital Markets plc (GTD by BP plc), 2.241%, 9–26–18		12,000		12,015
Oil & Gas Equipment & Services – 1.7%
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.), 6.500%, 1–31–19		13,000		15,418
Schlumberger Investment S.A. (GTD by Schlumberger Ltd.):
1.950%, 9–14–16 (A)		3,000		3,065
1.250%, 8–1–17 (A)		5,000		4,901
Schlumberger Norge A.S. (GTD by Schlumberger Ltd.), 1.950%, 9–14–16 (A)		3,000		3,065
				26,449
Oil & Gas Exploration & Production – 4.0%
Anadarko Petroleum Corporation, 5.750%, 6–15–14		3,500		3,617
EOG Resources, Inc., 2.500%, 2–1–16		6,000		6,225
EQT Corporation, 8.125%, 6–1–19		4,000		4,854
Marathon Oil Corporation, 0.900%, 11–1–15		11,240		11,240
Petrohawk Energy Corporation: 7.250%, 8–15–18		16,000		17,361
6.250%, 6–1–19		5,000		5,481
Plains Exploration & Production Company, 8.625%, 10–15–19		14,814		16,370
				65,148
Oil & Gas Storage & Transportation – 1.3%
Copano Energy, L.L.C. and Copano Energy Finance Corporation, 7.125%, 4–1–21		4,566		5,229
DCP Midstream Operating, LP (GTD by DCP Midstream Partners, LP), 3.250%, 10–1–15		5,500		5,684

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Oil & Gas Storage & Transportation (Continued)
DCP Midstream, LLC, 9.700%, 12–1–13 (A)	$	4,500	$	4,562
Maritimes & Northeast Pipeline, L.L.C., 7.500%, 5–31–14 (A)		5,042		5,217
				20,692
Other Diversified Financial Services – 4.2%
Citigroup Inc.:
1.250%, 1–15–16		7,000		6,996
1.700%, 7–25–16		11,000		11,052
Daimler Finance North America LLC, 1.300%, 7–31–15 (A)		16,600		16,675
ING Bank N.V., 2.375%, 6–9–14 (A)		12,500		12,632
JPMorgan Chase & Co., 6.000%, 1–15–18		16,500		18,951
				66,306
Packaged Foods & Meats – 0.8%
Kraft Foods Inc., 4.125%, 2–9–16		12,000		12,815
Pharmaceuticals – 2.3%
AbbVie Inc., 1.200%, 11–6–15		15,000		15,056
GlaxoSmithKline Capital Inc., 5.650%, 5–15–18		6,500		7,568
Merck & Co., Inc., 1.100%, 1–31–18		4,925		4,815
Mylan Inc., 7.875%, 7–15–20 (A)		8,500		9,699
				37,138
Property & Casualty Insurance – 0.4%
Berkshire Hathaway Inc.:
2.200%, 8–15–16		2,650		2,748
1.900%, 1–31–17		4,000		4,079
				6,827
Regional Banks – 1.3%
PNC Bank N.A., 1.300%, 10–3–16		7,500		7,529
PNC Funding Corp, 4.250%, 9–21–15		11,775		12,537
				20,066
Restaurants – 1.1%
YUM! Brands, Inc., 6.250%, 3–15–18		14,500		16,786
Retail Stores – 1.0%
Dollar General Corporation:
4.125%, 7–15–17		12,500		13,287
1.875%, 4–15–18		3,000		2,912
				16,199
Systems Software – 0.8%
CA, Inc., 6.125%, 12–1–14		12,267		12,951

68 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Limited-Term Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES (Continued)	Principal		Value
Wireless Telecommunication Service – 2.0%
America Movil, S.A.B. de C.V., 5.000%, 3–30–20	$	12,475	$	13,417
American Tower Corporation, 5.900%, 11–1–21		14,500		15,297
Crown Castle International Corp., 5.250%, 1–15–23		2,745		2,525
				31,239
TOTAL CORPORATE DEBT SECURITIES – 71.6%			$	1,140,067
(Cost: $1,136,316)
MUNICIPAL BONDS – TAXABLE
Hawaii – 0.2%
Cnty of Kauai, Taxable GO Bonds, Ser 2010A, 3.335%, 8–1–16		2,600		2,734
Nebraska – 0.4%
NE Pub Power Dist, Gen Rev Bonds, Ser 2008A, 5.140%, 1–1–14		6,150		6,226
Rhode Island – 0.3%
Providence Hlth & Svc Oblig Group, Direct Oblig Notes, Ser 2009A, 5.050%, 10–1–14		5,185		5,398
TOTAL MUNICIPAL BONDS – TAXABLE – 0.9%			$	14,358
(Cost: $13,947)
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS
Agency Obligations – 2.6%
Federal Home Loan Bank, 4.780%, 1–25–17		1,435		1,505
Federal National Mortgage Association:
2.000%, 12–30–15		10,000		10,334
0.875%, 10–26–17		15,000		14,791
3.000%, 11–14–18		15,000		15,047
				41,677
Mortgage-Backed Obligations – 9.2%
Federal Home Loan Mortgage Corporation Agency REMIC/CMO:
4.000%, 2–15–23		707		719

UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued)	Principal		Value
Mortgage-Backed Obligations (Continued)
4.500%, 6–15–27	$	1,296	$	1,340
4.500%, 5–15–32		3,166		3,280
5.000%, 12–15–34		1,489		1,611
2.500%, 12–15–41		14,017		14,150
Federal Home Loan Mortgage Corporation Fixed Rate Participation Certificates:
5.500%, 4–1–20		1,164		1,245
3.000%, 1–1–33		9,598		9,562
6.000%, 11–1–36		376		409
Federal National Mortgage Association Agency REMIC/CMO:
5.500%, 12–25–17		3,512		3,732
5.500%, 4–25–37		2,026		2,199
4.000%, 3–25–39		1,196		1,258
2.000%, 4–25–39		13,898		13,548
4.000%, 5–25–39		3,899		4,078
3.000%, 11–25–39		3,590		3,702
4.500%, 6–25–40		3,101		3,357
Federal National Mortgage Association Fixed Rate Pass-Through Certificates:
5.500%, 9–1–17		3,490		3,677
4.500%, 9–1–19		2,565		2,723
4.530%, 12–1–19		11,987		13,239
4.375%, 6–1–21		15,609		17,068
5.500%, 10–1–21		4,526		4,894
5.500%, 2–1–22		2,412		2,609
6.000%, 6–1–22		1,605		1,762
3.500%, 8–1–26		9,800		10,358
Government National Mortgage Association Agency REMIC/CMO:
5.000%, 4–16–39		1,123		1,219
2.500%, 9–20–40		10,984		11,074
2.000%, 3–16–42		14,058		13,709
				146,522
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 11.8%			$	188,199
(Cost: $189,973)
UNITED STATES GOVERNMENT OBLIGATIONS
Treasury Obligations – 6.2%
United States Treasury Notes:
2.375%, 8–31–14 (B)		10,000		10,206
2.375%, 2–28–15		10,000		10,306
2.500%, 4–30–15		35,000		36,248
2.125%, 5–31–15		12,500		12,887
1.750%, 5–31–16		13,000		13,419
1.500%, 7–31–16		15,000		15,381
				98,447
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 6.2%			$	98,447
(Cost: $95,901)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 8.8%
Automatic Data Processing Inc., 0.050%, 10–2–13 (C)	$	5,000	$	5,000
Becton Dickinson & Co., 0.140%, 10–10–13 (C)		10,000		10,000
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited), 0.190%, 11–20–13 (C)		3,000		2,999
Caterpillar Financial Services Corporation (GTD by Caterpillar Inc.), 0.070%, 11–22–13 (C)		15,000		14,997
CVS Caremark Corporation: 0.180%, 10–4–13 (C)		2,000		2,000
0.180%, 10–7–13 (C)		5,000		5,000
Danaher Corporation, 0.090%, 10–25–13 (C)		5,000		5,000
Diageo Capital plc (GTD by Diageo plc), 0.200%, 10–9–13 (C)		3,000		3,000
E.I. du Pont de Nemours and Company, 0.070%, 10–15–13 (C)		20,000		19,998
Exxon Mobil Corporation: 0.170%, 10–10–13 (C)		5,000		5,000
0.160%, 10–15–13 (C)		10,000		9,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), 0.170%, 10–16–13 (C)		5,000		5,000
Hewlett-Packard Company, 0.360%, 10–21–13 (C)		4,000		3,999
John Deere Financial Inc. (GTD by John Deere Capital Corporation), 0.080%, 10–15–13 (C)		6,000		6,000
L Air Liquide S.A.: 0.130%, 10–11–13 (C)		4,000		4,000
0.200%, 10–23–13 (C)		3,725		3,725
McCormick & Co. Inc., 0.160%, 10–1–13 (C)		5,000		5,000
PACCAR Financial Corp. (GTD by PACCAR Inc.), 0.050%, 10–1–13 (C)		6,000		6,000
St. Jude Medical, Inc., 0.090%, 10–1–13 (C)		5,143		5,143
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (C)		10,400		10,400

2013 SEMIANNUAL REPORT 69

SCHEDULE OF INVESTMENTS

Ivy Limited-Term Bond Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper (Continued)
Virginia Electric and Power Company: 0.260%, 10–11–13 (C)	$	5,000	$	5,000
0.260%, 10–16–13 (C)		3,000		3,000
				140,260
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (D)	$	1,717	$	1,717
TOTAL SHORT-TERM SECURITIES – 8.9%			$	141,977
(Cost: $141,978)
TOTAL INVESTMENT SECURITIES – 99.4%			$	1,583,048
(Cost: $1,578,115)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%				9,113
NET ASSETS – 100.0%			$	1,592,161

Notes To Schedule Of Investments

(A) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $212,294 or 13.3% of net assets.

(B) All or a portion of the security position has been pledged as collateral on open futures contracts.

(C) Rate shown is the yield to maturity at September 30, 2013.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following futures contracts were outstanding at September 30, 2013 (contracts unrounded):

Description	Type	Expiration Date	Number of Contracts		Market Value			Unrealized Depreciation
U.S. Treasury Long Bond	Short	12–31–13		450	$	(60,019	)	$	(1,820	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Corporate Debt Securities	$	—	$	1,134,586	$	5,481
Municipal Bonds		—		14,358		—
United States Government Agency Obligations		—		188,199		—
United States Government Obligations		—		98,447		—
Short-Term Securities		—		141,977		—
Total	$	—	$	1,577,567	$	5,481
Liabilities
Futures Contracts	$	1,820	$	—	$	—

During the period ended September 30, 2013, securities totaling $5,681 were transferred from Level 2 to Level 3 due to the lack of observable market data due to decreased market activity or information for these securities.

The following acronyms are used throughout this schedule:

CMO = Collateralized Mortgage Obligation

GTD = Guaranteed

REMIC = Real Estate Mortgage Investment Conduit

See Accompanying Notes to Financial Statements.

70 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Managed Funds ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Ivy Managed European/Pacific Fund

Ivy Pacific Opportunities Fund, Class I	78.6%
Ivy European Opportunities Fund, Class I	21.1%
Cash and Cash Equivalents	0.3%

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund, Class I	38.2	%
Ivy International Core Equity Fund, Class I	21.4	%
Ivy International Growth Fund, Class I	20.4	%
Ivy European Opportunities Fund, Class I	10.3	%
Ivy Global Income Allocation Fund, Class I	9.6	%
Cash and Cash Equivalents	0.1	%

2013 SEMIANNUAL REPORT 71

SCHEDULE OF INVESTMENTS

Ivy Managed Funds (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Ivy Managed European/Pacific Fund

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I (A)		551	$	14,961
Ivy Pacific Opportunities Fund, Class I (A)		3,892		55,655
TOTAL AFFILIATED MUTUAL FUNDS – 99.7%			$	70,616
(Cost: $54,169)
SHORT-TERM SECURITIES – 0.4%	Principal
Master Note
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (B)	$	293	$	293
(Cost: $293)
TOTAL INVESTMENT SECURITIES – 100.1%			$	70,909
(Cost: $54,462)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%)				(56	)
NET ASSETS – 100.0%			$	70,853

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Affiliated Mutual Funds	$	70,616	$	—	$	—
Short-Term Securities		—		293		—
Total	$	70,616	$	293	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

Ivy Managed International Opportunities Fund

AFFILIATED MUTUAL FUNDS	Shares		Value
Ivy European Opportunities Fund, Class I (A)		724	$	19,650
Ivy Global Income Allocation Fund, Class I		1,229		18,427
Ivy International Core Equity Fund, Class I (A)		2,284		41,029
Ivy International Growth Fund, Class I (A)		1,006		38,992
Ivy Pacific Opportunities Fund, Class I (A)		5,122		73,250
TOTAL AFFILIATED MUTUAL FUNDS – 99.9%			$	191,348
(Cost: $153,591)
SHORT-TERM SECURITIES – 0.1%	Principal
Master Note
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (B)	$	285	$	285
(Cost: $285)
TOTAL INVESTMENT SECURITIES – 100.0%			$	191,633
(Cost: $153,876)
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0%				(114	)
NET ASSETS – 100.0%			$	191,519

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Affiliated Mutual Funds	$	191,348	$	—	$	—
Short-Term Securities		—		285		—
Total	$	191,348	$	285	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

See Accompanying Notes to Financial Statements.

72 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Micro Cap Growth Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	94.0%
Information Technology	25.1%
Health Care	20.3%
Consumer Discretionary	19.0%
Industrials	12.7%
Energy	5.6%
Financials	4.9%
Consumer Staples	4.2%
Telecommunication Services	1.7%
Materials	0.5%
Cash and Cash Equivalents	6.0%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	160/502	32
3 Year	186/446	42

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

Top 10 Equity Holdings

Company	Sector
Quidel Corporation	Health Care
Natural Grocers by Vitamin Cottage, Inc.	Consumer Staples
SPS Commerce, Inc.	Information Technology
Arctic Cat Inc.	Consumer Discretionary
Multimedia Games Holding Company, Inc.	Consumer Discretionary
HealthStream, Inc.	Health Care
DXP Enterprises, Inc.	Industrials
Move, Inc.	Information Technology
Movado Group, Inc.	Consumer Discretionary
Spectranetics Corporation (The)	Health Care

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

2013 SEMIANNUAL REPORT 73

SCHEDULE OF INVESTMENTS

Ivy Micro Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Air Freight & Logistics – 0.7%
Pacer International, Inc. (A)		195	$	1,204
Alternative Carriers – 1.5%
inContact, Inc. (A)		175		1,442
Lumos Networks Corp.		47		1,023
				2,465
Apparel, Accessories & Luxury Goods – 1.6%
Movado Group, Inc.		62		2,691
Application Software – 1.4%
Callidus Software Inc. (A)		258		2,367
Asset Management & Custody Banks – 0.7%
Internet Capital Group, Inc. (A)		84		1,192
Auto Parts & Equipment – 1.2%
Amerigon Incorporated (A)		107		2,040
Automotive Retail – 0.4%
America’s Car-Mart, Inc. (A)		14		641
Biotechnology – 7.5%
Acceleron Pharma Inc. (A)		35		787
Achillion Pharmaceuticals, Inc. (A)		182		551
BIND Therapeutics, Inc. (A)		25		357
Clovis Oncology, Inc. (A)		23		1,422
Enanta Pharmaceuticals, Inc. (A)		104		2,387
KaloBios Pharmaceuticals, Inc. (A)		127		574
LipoScience, Inc. (A)		117		587
NewLink Genetics Corporation (A)		72		1,348
Repligen Corporation (A)		68		749
Synergy Pharmaceuticals Inc. (A)		190		868
Vanda Pharmaceuticals Inc. (A)		122		1,336
Verastem, Inc. (A)		127		1,578
				12,544
Broadcasting – 0.4%
Entravision Communications Corporation		121		714
Building Products – 3.4%
American Woodmark Corporation (A)		49		1,698
Builders FirstSource, Inc. (A)		286		1,679
NCI Building Systems, Inc. (A)		81		1,036
PGT, Inc. (A)		109		1,075
				5,488
Casinos & Gaming – 1.7%
Multimedia Games Holding Company, Inc. (A)		82		2,837

COMMON STOCKS (Continued)	Shares		Value
Commercial Printing – 0.6%
InnerWorkings, Inc. (A)		101	$	987
Communications Equipment – 4.1%
Applied Optoelectronics, Inc. (A)		69		694
Ixia (A)		65		1,014
Procera Networks, Inc. (A)		87		1,344
Ruckus Wireless, Inc (A)		59		988
ShoreTel, Inc. (A)		162		981
Ubiquiti Networks, Inc.		56		1,867
				6,888
Computer Storage & Peripherals – 1.6%
Datalink Corporation (A)		124		1,675
Immersion Corporation (A)		72		947
				2,622
Construction & Farm Machinery & Heavy Trucks – 2.2%
Commercial Vehicle Group, Inc. (A)		70		560
Greenbrier Companies, Inc. (The) (A)		54		1,335
Wabash National Corporation (A)		159		1,857
				3,752
Consumer Finance – 1.5%
Regional Management Corp. (A)		81		2,569
Electrical Components & Equipment – 0.1%
LSI Industries Inc.		29		241
Electronic Equipment & Instruments – 1.0%
Control4 Corporation (A)		37		643
CUI Global, Inc. (A)		166		955
				1,598
Electronic Manufacturing Services – 0.2%
Uni-Pixel, Inc. (A)		21		378
Food Distributors – 0.8%
Chefs’ Warehouse Holdings, LLC (The) (A)		58		1,335
Food Retail – 2.0%
Natural Grocers by Vitamin Cottage, Inc. (A)		85		3,383
Health Care Equipment – 4.0%
Cardiovascular Systems Inc. (A)		55		1,095
Cynosure, Inc., Class A (A)		70		1,585
Rockwell Medical, Inc. (A)		168		1,918
Sunshine Heart, Inc. (A)		141		1,636
Syneron Medical Ltd. (A)		54		469
				6,703
Health Care Supplies – 4.5%
Quidel Corporation (A)		120		3,413

COMMON STOCKS (Continued)	Shares		Value
Health Care Supplies (Continued)
Spectranetics Corporation (The) (A)		160	$	2,685
TearLab Corp. (A)		131		1,449
				7,547
Health Care Technology – 2.2%
HealthStream, Inc. (A)		74		2,792
Streamline Health Solutions, Inc. (A)		110		835
				3,627
Heavy Electrical Equipment – 0.8%
Power Solutions International, Inc. (A)		3		195
PowerSecure International, Inc. (A)		74		1,193
				1,388
Home Improvement Retail – 0.7%
Tile Shop Holdings, Inc. (A)		38		1,121
Homebuilding – 1.1%
M/I Homes, Inc. (A)		61		1,266
Wiliam Lyon Homes, Class A (A)		28		571
				1,837
Homefurnishing Retail – 0.8%
Kirkland’s, Inc. (A)		73		1,337
Internet Software & Services – 7.4%
Boingo Wireless, Inc. (A)		94		658
Envestnet, Inc. (A)		83		2,564
Gogo Inc. (A)		62		1,100
Move, Inc. (A)		159		2,695
Responsys, Inc. (A)		97		1,604
SciQuest, Inc. (A)		27		615
SPS Commerce, Inc. (A)		46		3,077
Tremor Video, Inc. (A)		43		400
				12,713
IT Consulting & Other Services – 2.1%
InterXion Holding N.V. (A)		58		1,299
Official Payments Holdings, Inc. (A)		85		703
Virtusa Corporation (A)		50		1,462
				3,464
Leisure Facilities – 0.6%
Town Sports International Holdings, Inc.		78		1,018
Leisure Products – 3.1%
Arctic Cat Inc.		51		2,886
Black Diamond, Inc. (A)		85		1,034
Nautilus Group, Inc. (The) (A)		168		1,212
				5,132

74 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Micro Cap Growth Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Managed Health Care – 0.8%
Molina Healthcare, Inc. (A)		39	$	1,374
Movies & Entertainment – 1.3%
Rentrak Corporation (A)		64		2,101
Oil & Gas Drilling – 0.6%
Pioneer Drilling Company (A)		141		1,062
Oil & Gas Equipment & Services – 3.4%
Basic Energy Services, Inc. (A)		152		1,924
RigNet, Inc. (A)		65		2,347
Willbros Group, Inc. (A)		138		1,268
				5,539
Oil & Gas Exploration & Production – 1.6%
Emerald Oil, Inc. (A)		239		1,720
Triangle Petroleum Corporation (A)		107		1,046
				2,766
Packaged Foods & Meats – 0.5%
Inventure Foods, Inc. (A)		79		832
Personal Products – 0.9%
Inter Parfums, Inc.		51		1,526
Pharmaceuticals – 1.3%
NuPathe Inc. (A)		60		144
Pacira Pharmaceuticals, Inc. (A)		43		2,082
				2,226
Regional Banks – 0.9%
TriState Capital Holdings, Inc. (A)		111		1,435
Restaurants – 5.9%
Chuy’s Holdings, Inc. (A)		58		2,066
Del Frisco’s Restaurant Group, Inc. (A)		68		1,368
Diversified Restaurant Holdings, Inc. (A)		75		493
Fiesta Restaurant Group, Inc. (A)		67		2,507
Noodles & Company, Class A (A)		18		772
Red Robin Gourmet Burgers, Inc. (A)		24		1,714
Ruth’s Hospitality Group, Inc.		101		1,197
				10,117
Security & Alarm Services – 0.5%
MiX Telematics Limited ADR (A)		58		851

COMMON STOCKS (Continued)	Shares		Value
Semiconductor Equipment – 1.7%
FormFactor, Inc. (A)		122	$	833
Nanometrics Incorporated (A)		64		1,027
Nova Measuring Instruments Ltd. (A)		117		1,037
				2,897
Semiconductors – 2.3%
Exar Corporation (A)		92		1,233
MagnaChip Semiconductor Corporation (A)		58		1,244
RDA Microelectronics, Inc., ADR		93		1,422
				3,899
Steel – 0.5%
Universal Stainless & Alloy Products, Inc. (A)		24		781
Systems Software – 3.5%
Covisint Corporation (A)		21		265
Gigamon Inc. (A)		46		1,770
Imperva, Inc. (A)		30		1,277
Proofpoint, Inc. (A)		79		2,528
				5,840
Thrifts & Mortgage Finance – 0.6%
PennyMac Financial Services, Inc., Class A (A)		55		1,030
Trading Companies & Distributors – 1.6%
DXP Enterprises, Inc. (A)		35		2,724
Trucking – 2.8%
Celadon Group, Inc.		79		1,469
Marten Transport, Ltd.		69		1,188
Roadrunner Transportation Systems, Inc. (A)		75		2,119
				4,776
Wireless Telecommunication Service – 0.2%
RingCentral, Inc., Class A (A)		17		314
TOTAL COMMON STOCKS – 92.8%			$	155,913
(Cost: $116,728)
INVESTMENT FUNDS
Registered Investment Companies – 1.2%
iShares Russell 2000 Growth Index Fund		16		1,988
TOTAL INVESTMENT FUNDS – 1.2%			$	1,988
(Cost: $1,784)

SHORT–TERM SECURITIES	Principal		Value
Commercial Paper – 5.2%
Abbott Laboratories, 0.070%, 10–21–13 (B)	$	2,884	$	2,884
CVS Caremark Corporation, 0.180%, 10–4–13 (B)		3,000		3,000
St. Jude Medical, Inc., 0.090%, 10–1–13 (B)		2,881		2,881
				8,765
Master Note – 2.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)		3,353		3,353
TOTAL SHORT-TERM SECURITIES – 7.2%			$	12,118
(Cost: $12,118)
TOTAL INVESTMENT SECURITIES – 101.2%			$	170,019
(Cost: $130,630)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.2%)				(2,031	)
NET ASSETS – 100.0%			$	167,988

2013 SEMIANNUAL REPORT 75

SCHEDULE OF INVESTMENTS

Ivy Micro Cap Growth Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	155,913	$	—	$	—
Investment Funds		1,988		—		—
Short-Term Securities		—		12,118		—
Total	$	157,901	$	12,118	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

See Accompanying Notes to Financial Statements.

76 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Mid Cap Growth Fund

ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	94.9%
Consumer Discretionary	24.1%
Information Technology	20.7%
Industrials	16.3%
Health Care	12.1%
Financials	8.1%
Energy	7.3%
Consumer Staples	5.2%
Materials	1.1%
Purchased Options	0.2%
Cash and Cash Equivalents	4.9%

Lipper Rankings

Category: Lipper Mid-Cap Growth Funds	Rank	Percentile
1 Year	227/380	60
3 Year	172/347	50
5 Year	40/305	14
10 Year	24/215	12

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

Top 10 Equity Holdings

Company	Sector
Microchip Technology Incorporated	Information Technology
CarMax, Inc.	Consumer Discretionary
Fastenal Company	Industrials
Ulta Salon, Cosmetics & Fragrance, Inc.	Consumer Discretionary
Pall Corporation	Industrials
Varian Medical Systems, Inc.	Health Care
First Republic Bank	Financials
Northern Trust Corporation	Financials
Expeditors International of Washington, Inc.	Industrials
Dunkin’ Brands Group, Inc.	Consumer Discretionary

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

2013 SEMIANNUAL REPORT 77

SCHEDULE OF INVESTMENTS

Ivy Mid Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Air Freight & Logistics – 2.1%
Expeditors International of Washington, Inc.		1,974	$	86,955
Apparel Retail – 1.1%
DSW Inc., Class A		543		46,320
Apparel, Accessories & Luxury Goods – 6.0%
Burberry Group plc (A)		1,733		45,835
Michael Kors Holdings Limited (B)		619		46,094
Tumi Holdings, Inc. (B)		1,014		20,429
Under Armour, Inc., Class A (B)		1,070		85,027
V.F. Corporation		250		49,832
				247,217
Application Software – 3.7%
ANSYS, Inc. (B)		736		63,661
Solera Holdings, Inc.		961		50,796
Ultimate Software Group, Inc. (The) (B)		251		36,943
				151,400
Asset Management & Custody Banks – 3.0%
Northern Trust Corporation		1,622		88,202
Oaktree Capital Group, LLC		646		33,821
				122,023
Auto Parts & Equipment – 1.4%
Gentex Corporation		2,194		56,133
Automotive Retail – 2.5%
CarMax, Inc. (B)		2,083		100,980
Biotechnology – 1.0%
Medivation, Inc. (B)		681		40,835
Building Products – 1.9%
Fortune Brands Home & Security, Inc.		1,871		77,881
Coal & Consumable Fuels – 1.0%
Joy Global Inc.		805		41,067
Communications Equipment – 2.4%
Aruba Networks, Inc. (B)		2,332		38,803
F5 Networks, Inc. (B)		608		52,140
Palo Alto Networks, Inc. (B)		165		7,551
				98,494
Computer Storage & Peripherals – 1.9%
Fusion-io, Inc. (B)		2,126		28,461
NetApp, Inc.		1,182		50,366
				78,827
Consumer Electronics – 2.0%
Harman International Industries, Incorporated		1,227		81,284
Data Processing & Outsourced Services – 2.0%
Vantiv, Inc., Class A (B)		2,911		81,326

COMMON STOCKS (Continued)	Shares		Value
Department Stores – 1.2%
Nordstrom, Inc.		889	$	49,945
Distillers & Vintners – 1.0%
Brown-Forman Corporation, Class B		610		41,542
Distributors – 2.1%
LKQ Corporation (B)		2,689		85,673
Electrical Components & Equipment – 2.7%
Polypore International, Inc. (B)		1,709		70,001
Roper Industries, Inc.		313		41,548
			��
				111,549
Electronic Manufacturing Services – 1.4%
Trimble Navigation Limited (B)		1,925		57,203
Environmental & Facilities Services – 1.3%
Stericycle, Inc. (B)		477		55,000
Fertilizers & Agricultural Chemicals – 1.1%
Scotts Miracle-Gro Company (The)		818		45,020
Health Care Distributors – 1.7%
Henry Schein, Inc. (B)		673		69,738
Health Care Equipment – 4.9%
Intuitive Surgical, Inc. (B)		138		52,057
Varian Medical Systems, Inc. (B)		1,222		91,320
Zimmer Holdings, Inc.		748		61,435
				204,812
Health Care Facilities – 2.1%
Acadia Healthcare Company, Inc. (B)		644		25,383
Hologic, Inc. (B)		2,849		58,828
				84,211
Health Care Services – 0.4%
Premier Inc. (B)		514		16,303
Health Care Supplies – 0.5%
DENTSPLY International Inc.		464		20,147
Homefurnishing Retail – 1.1%
Williams-Sonoma, Inc.		802		45,055
Hotels, Resorts & Cruise Lines – 1.3%
Norwegian Cruise Line Holdings Ltd. (B)		1,713		52,851
Industrial Machinery – 4.9%
Graco Inc.		452		33,492
IDEX Corporation		1,085		70,798
Pall Corporation		1,210		93,196
				197,486

COMMON STOCKS (Continued)	Shares		Value
Internet Software & Services – 2.1%
OpenTable, Inc. (B)		563	$	39,389
Zillow, Inc. (B)		554		46,780
				86,169
IT Consulting & Other Services – 2.0%
Teradata Corporation (B)		1,461		81,001
Leisure Products – 1.0%
Mattel, Inc.		1,009		42,216
Life Sciences Tools & Services – 1.5%
Agilent Technologies, Inc.		1,186		60,807
Oil & Gas Drilling – 1.1%
Patterson-UTI Energy, Inc.		2,134		45,626
Oil & Gas Equipment & Services – 1.2%
Dril-Quip, Inc. (B)		415		47,598
Oil & Gas Exploration & Production – 4.0%
Cabot Oil & Gas Corporation		1,228		45,816
Continental Resources, Inc. (B)		556		59,663
Southwestern Energy Company (B)		1,647		59,916
				165,395
Packaged Foods & Meats – 3.2%
Hain Celestial Group, Inc. (The) (B)		869		67,040
Mead Johnson Nutrition Company		843		62,575
				129,615
Personal Products – 1.0%
Coty Inc., Class A		2,464		39,940
Regional Banks – 5.1%
First Republic Bank		1,928		89,896
Signature Bank (B)		906		82,890
UMB Financial Corporation		716		38,913
				211,699
Research & Consulting Services – 1.0%
Verisk Analytics, Inc., Class A (B)		635		41,259
Restaurants – 2.1%
Dunkin’ Brands Group, Inc.		1,904		86,158
Semiconductors – 4.2%
Cavium Inc. (B)		805		33,177
Microchip Technology Incorporated		2,673		107,679
Skyworks Solutions, Inc. (B)		1,373		34,100
				174,956

78 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Mid Cap Growth Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Specialty Stores – 2.3%
Ulta Salon, Cosmetics & Fragrance, Inc. (B)	$	784	$	93,631
Systems Software – 1.0%
ServiceNow, Inc. (B)		759		39,446
Trading Companies & Distributors – 2.4%
Fastenal Company		1,947		97,860
TOTAL COMMON STOCKS – 94.9%			$	3,890,653
(Cost: $3,081,195)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
NASDAQ 100 Index, Put $3,140.00, Expires 10–19–13		800		1,364
Russell 2000 Index, Put $1,045.00, Expires 10–19–13		3,372		2,782
SPDR S&P MidCap 400 ETF Trust:
Put $220.00, Expires 10–19–13		9,951		1,567
Put $225.00, Expires 10–19–13		8,142		2,382
TOTAL PURCHASED OPTIONS – 0.2%			$	8,095
(Cost: $8,390)
SHORT-TERM SECURITIES	Principal
Certificate Of Deposit – 0.2%
Citibank, N.A., 0.260%, 11–25–13		5,000		5,000
Toronto- Dominion Bank, 0.110%, 10–17–13		5,000		5,000
				10,000

SHORT-TERM SECURITIES (Continued)	Principal		Value
Commercial Paper – 3.7%
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB), 0.250%, 12–4–13 (C)	$	2,000	$	1,999
Automatic Data Processing Inc., 0.050%, 10–2–13 (C)		3,000		3,000
CVS Caremark Corporation:
0.180%, 10–4–13 (C)		2,000		2,000
0.290%, 12–3–13 (C)		5,000		4,997
Danaher Corporation:
0.090%, 10–24–13 (C)		5,000		5,000
0.090%, 10–25–13 (C)		10,000		9,999
Diageo Capital plc (GTD by Diageo plc), 0.200%, 10–8–13 (C)		8,000		8,000
Enbridge Inc., 0.280%, 10–16–13 (C)		7,400		7,399
Exxon Mobil Corporation, 0.170%, 10–10–13 (C)		10,000		10,000
John Deere Financial Inc. (GTD by John Deere Capital Corporation), 0.060%, 10–10–13 (C)		7,000		7,000
John Deere Financial Limited (GTD by John Deere Capital Corporation), 0.060%, 10–3–13 (C)		7,000		7,000
Kellogg Co., 0.160%, 10–1–13 (C)		5,000		5,000
L Air Liquide S.A., 0.200%, 11–22–13 (C)		9,268		9,265
McCormick & Co. Inc., 0.160%, 10–1–13 (C)		13,617		13,617
National Oilwell Varco, Inc., 0.200%, 10–30–13 (C)		5,000		4,999
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (C)		22,953		22,954
Target Corporation, 0.060%, 10–17–13 (C)		19,500		19,499
Verizon Communications Inc., 0.210%, 10–21–13 (C)		6,000		5,999
				147,727

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (D)	$	313	$	313
United States Government Agency Obligations – 0.3%
Overseas Private Investment Corporation (GTD by United States Government):
0.130%, 10–7–13 (D)		7,692		7,762
0.130%, 10–7–13 (D)		5,270		5,270
				13,032
TOTAL SHORT-TERM SECURITIES – 4.2%			$	171,072
(Cost: $171,004)
TOTAL INVESTMENT SECURITIES – 99.3%			$	4,069,820
(Cost: $3,260,589)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7%				27,680
NET ASSETS – 100.0%			$	4,097,500

2013 SEMIANNUAL REPORT 79

SCHEDULE OF INVESTMENTS

Ivy Mid Cap Growth Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

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

(C) Rate shown is the yield to maturity at September 30, 2013.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 2 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	3,890,653	$	—	$	—
Purchased Options		8,095		—		—
Short-Term Securities		—		171,072		—
Total	$	3,898,748	$	171,072	$	—

During the period ended September 30, 2013, securities totaling $12,962 were transferred from Level 3 to Level 2 due to the increased availability of observable market data due to increased market activity or information for these securities.

The following acronym is used throughout this schedule:

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

80 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Money Market Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Corporate Obligations	71.7%
Notes	32.0%
Commercial Paper	30.2%
Certificate Of Deposit	8.6%
Master Note	0.9%
Municipal Obligations	26.3%
United States Government and Government Agency Obligations	1.4%
Cash and Other Assets, Net of Liabilities	0.6%

Lipper Rankings

Category: Lipper Money Market Funds	Rank	Percentile
1 Year	39/228	18
3 Year	32/218	15
5 Year	11/202	6
10 Year	87/173	50

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

2013 SEMIANNUAL REPORT 81

SCHEDULE OF INVESTMENTS

Ivy Money Market Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE OBLIGATIONS	Principal		Value
Certificate Of Deposit
Banco del Estado de Chile:
0.225%, 10–9–13	$	700	$	700
0.410%, 10–22–13 (A)		2,700		2,700
0.220%, 1–10–14		1,500		1,500
Bank of America, N.A.:
0.260%, 11–21–13		3,200		3,200
0.210%, 11–25–13		2,300		2,300
Citibank, N.A.:
0.170%, 11–25–13		4,000		4,000
0.170%, 11–26–13		4,000		4,000
Total Certificate Of Deposit – 8.6%				18,400
Commercial Paper
Anheuser -Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB):
0.170%, 10–18–13 (B)		700		700
0.190%, 11–4–13 (B)		1,400		1,400
0.200%, 11–12–13 (B)		1,600		1,599
0.230%, 11–18–13 (B)		2,150		2,149
0.190%, 11–22–13 (B)		4,600		4,599
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited):
0.120%, 11–20–13 (B)		1,000		1,000
0.130%, 12–18–13 (B)		1,000		1,000
COFCO Capital Corp. (GTD by Rabobank Nederland),
0.190%, 10–18–13 (B)		3,500		3,500
Corporacion Andina de Fomento:
0.431%, 10–8–13 (B)		2,100		2,100
0.380%, 10–28–13 (B)		1,750		1,749
0.180%, 11–18–13 (B)		1,500		1,500
0.300%, 11–26–13 (B)		4,000		3,998
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), 0.100%, 10–2–13 (B)		2,500		2,500
ICICI Bank Limited (GTD by Bank of America, N.A.), 0.260%, 12–6–13 (B)		8,100		8,096
ICICI Bank Limited (GTD by Wells Fargo Bank, N.A.), 0.290%, 12–17–13 (B)		2,750		2,748
J.P. Morgan Chase & Co., 0.350%, 10–22–13 (A)(B)		1,573		1,573
L Air Liquide S.A.:
0.170%, 10–28–13 (B)		2,100		2,099
0.140%, 11–22–13 (B)		732		732
0.150%, 11–27–13 (B)		3,250		3,249
0.170%, 12–2–13 (B)		900		900
National Oilwell Varco, Inc., 0.120%, 11–26–13 (B)		1,000		1,000
PACCAR Financial Corp. (GTD by PACCAR Inc.), 0.050%, 10–1–13 (B)		1,000		1,000
River Fuel Company #2, Inc. (GTD by Bank of Nova Scotia), 0.160%, 10–31–13 (B)		1,561		1,561

CORPORATE OBLIGATIONS (Continued)	Principal		Value
Commercial Paper (Continued)
River Fuel Funding Company #3, Inc. (GTD by Bank of Nova Scotia), 0.120%, 10–3–13 (B)	$	2,300	$	2,300
River Fuel Trust #1 (GTD by Bank of Nova Scotia), 0.230%, 10–31–13 (B)		1,381		1,381
St. Jude Medical, Inc.:
0.140%, 10–15–13 (B)		4,000		4,000
0.170%, 10–25–13 (B)		5,129		5,128
Wisconsin Electric Power Co., 0.100%, 10–1–13 (B)		845		845
Total Commercial Paper – 30.2%				64,406
Master Note
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)		1,995		1,995
Total Master Note – 0.9%				1,995
Notes
American Honda Finance Corp., 1.850%, 9–19–14		900		913
American Honda Finance Corp. (GTD by Honda Motor Co.):
0.288%, 10–17–13 (C)		1,200		1,200
0.300%, 11–8–13 (C)		4,600		4,600
0.280%, 12–5–13 (C)		4,050		4,050
Banco del Estado de Chile, 0.390%, 10–22–13 (C)		5,200		5,200
Bank of Nova Scotia:
0.240%, 10–1–13 (C)		1,700		1,700
0.520%, 10–3–13 (C)		1,500		1,501
CA GO Bonds, Ser 2005A3 (GTD by Bank of America, N.A.), 0.060%, 10–7–13 (C)		1,570		1,570
Caterpillar Financial Services Corporation, 6.125%, 2–17–14		2,171		2,219
Coca-Cola Company (The), 0.750%, 11–15–13		1,000		1,001
Danaher Corporation, 1.300%, 6–23–14		1,750		1,762
General Electric Capital Corporation:
0.900%, 10–7–13 (C)		1,592		1,597
2.100%, 1–7–14		3,000		3,014
IBM International Group Capital LLC (GTD by International Business Machines Corporation), 0.560%, 11–26–13 (C)		1,500		1,500
J.P. Morgan Chase & Co.:
0.350%, 10–22–13 (C)		1,250		1,250
1.060%, 10–24–13 (C)		1,800		1,805
0.340%, 12–14–13 (C)		3,550		3,550
2.050%, 1–24–14		600		603
4.650%, 6–1–14		2,352		2,416

CORPORATE OBLIGATIONS (Continued)	Principal		Value
Notes (Continued)
John Deere Capital Corporation, 0.370%, 10–12–13 (C)	$	300	$	300
Johnson City, TN Hlth and Edu Fac, Hosp Rev Bonds(Mountain States Hlth Alliance), Ser 2013A (GTD by U.S. Bank, N.A.), 0.070%, 10–7–13 (C)		760		760
Kimberly-Clark Corporation, 4.215%, 12–19–13		3,200		3,227
PACCAR Financial Corp., 0.500%, 12–8–13 (C)		1,500		1,502
PepsiCo, Inc., 0.875%, 10–25–13		3,100		3,101
Target Corporation, 0.430%, 10–18–13 (C)		1,035		1,037
Toyota Motor Credit Corporation:
0.260%, 10–1–13 (C)		2,000		2,000
0.260%, 11–22–13 (C)		6,000		6,000
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank, N.A.), 0.190%, 10–7–13 (C)		1,135		1,135
Wells Fargo & Company,
3.750%, 10–1–14		2,200		2,272
Wells Fargo Bank, N.A.:
0.320%, 10–20–13 (C)		2,000		2,000
0.310%, 12–11–13 (C)		1,500		1,500
0.300%, 12–17–13 (C)		1,800		1,800
Total Notes – 32.0%				68,085
TOTAL CORPORATE OBLIGATIONS – 71.7%			$	152,886
(Cost: $152,886)
MUNICIPAL OBLIGATIONS
California – 1.7%
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (U.S. Bank, N.A.), 0.060%, 10–7–13 (C)		795		795
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank, N.A.), 0.040%, 10–1–13 (C)		1,250		1,250
Muni Impvt Corp of Los Angeles, Lease Rev, Ser B-1 (Taxable), (GTD by Wells Fargo Bank, N.A.), 0.150%, 12–9–13		1,500		1,500
				3,545

82 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Money Market Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
Colorado – 3.0%
Castle Rock, CO, Cert of Part, Ser 2008 (GTD by Wells Fargo Bank, N.A.), 0.110%, 10–7–13 (C)	$	3,000	$	3,000
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank, N.A.), 0.080%, 10–7–13 (C)		2,700		2,700
Exempla Gen Impvt Dist of Lafayette, CO, Spl Impvt Dist No. 02-01, Spl Assmt Rev Rfdg and Impvt Bonds, Ser 2002 (GTD by Wells Fargo Bank, N.A.), 0.070%, 10–7–13 (C)		475		475
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ-Ser A-1 (GTD by JPMorgan Chase & Co.), 0.300%, 10–7–13 (C)		250		250
				6,425
Georgia – 2.3%
Dev Auth of Monroe Cty, Pollutn Ctl Rev Bonds (GA Power Co Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Company), 0.080%, 10–1–13 (C)		1,618		1,618
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser B (Taxable), (GTD by Wells Fargo Bank, N.A.), 0.150%, 10–8–13		3,379		3,379
				4,997
Kansas – 1.8%
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004, 0.080%, 10–1–13 (C)		3,760		3,760
Louisiana – 1.6%
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), 0.060%, 10–1–13 (C)		2,411		2,411
Parish of St. Bernard, LA, Exempt Fac Rev Bonds (Mobil Oil Corp Proj), Ser 1996 (GTD by Exxon Mobil Corporation), 0.060%, 10–1–13 (C)		1,000		1,000
				3,411

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
Maryland – 0.9%
MD Hlth and Higher Edu Fac Auth Rev Bonds, Anne Arundel Hlth Sys Issue, Ser 2009A (GTD by Toronto Dominion Bank), 0.140%, 10–7–13 (C)	$	1,915	$	1,915
Michigan – 0.7%
MI Strategic Fund, Var Rate Demand Ltd Oblig Rev Bonds (Air Products and Chemicals, Inc. Proj), Ser 2007 (GTD by Bank of New York (The)), 0.060%, 10–1–13 (C)		1,500		1,500
Minnesota – 0.3%
Minneapolis, MN, Var Rate Demand Rev Bonds (People Serving People Proj), Ser 2000A, 0.080%, 10–1–13 (C)		630		630
Mississippi – 2.5%
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007B (GTD by Chevron Corporation), 0.060%, 10–1–13 (C)		2,783		2,783
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007D (GTD by Chevron Corporation), 0.060%, 10–1–13 (C)		1,210		1,210
MS Business Fin Corp, Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007D (GTD by Chevron Corporation), 0.050%, 10–1–13 (C)		1,300		1,300
				5,293
Missouri – 0.4%
Kansas City, MO, Var Rate Demand Taxable Spl Oblig Rfdg Bonds (President Hotel Redev Proj), Ser 2009B (GTD by JPMorgan Chase & Co.), 0.170%, 10–7–13 (C)		950		950
New York – 1.3%
NY Hsng Fin Agy, Related West 30th Street Hsng Rev Bonds, Ser 2012 A-1 (GTD by Wells Fargo Bank, N.A.), 0.050%, 10–7–13 (C)		500		500

MUNICIPAL OBLIGATIONS (Continued)	Principal		Value
New York (Continued)
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by Federal Home Loan Mortgage Corporation), 0.090%, 10–7–13 (C)	$	2,000	$	2,000
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America, N.A.), 0.080%, 10–7–13 (C)		361		361
				2,861
Texas – 7.2%
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), 0.070%, 10–7–13 (C)		10,035		10,035
Port Arthur Nav Dist Indl Dev Corp, Exempt Fac Var Rate Rev Bnds (Air Prdts Proj), Ser 2005 (GTD by Air Products and Chemicals, Inc.), 0.060%, 10–1–13 (C)		2,925		2,925
Port Arthur Nav Dist Indl Dev Corp, Exempt Fac Var Rate Rev Bnds (Air Prdts Proj), Ser 2006 (GTD by Air Products and Chemicals, Inc.), 0.060%, 10–1–13 (C)		2,300		2,300
				15,260
Wisconsin – 1.3%
Ladysmith, WI, Var Rate Demand Indl Dev Rev Bonds (Indeck Ladysmith, LLC Proj), Ser 2009A (GTD by Wells Fargo Bank, N.A.), 0.240%, 10–7–13 (C)		1,465		1,465
WI Hlth and Edu Fac Auth, Wheaton Franciscan Svc, Inc., Sys Var Rate Rev Bonds, Ser 2003B (GTD by U.S. Bank, N.A.), 0.070%, 10–7–13 (C)		1,375		1,375
				2,840
Wyoming – 1.3%
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 1992 (GTD by Chevron Corporation), 0.050%, 10–1–13 (C)		2,783		2,783
TOTAL MUNICIPAL OBLIGATIONS – 26.3%			$	56,170
(Cost: $56,170)

2013 SEMIANNUAL REPORT 83

SCHEDULE OF INVESTMENTS

Ivy Money Market Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS	Principal		Value
United States Government Agency Obligations
Overseas Private Investment Corporation (GTD by United States Government):
0.130%, 10–2–13 (C)	$	1,474	$	1,474
0.130%, 10–7–13 (C)		750		750
Totem Ocean Trailer Express, Inc. (GTD by United States Government), 0.510%, 10–30–13 (C)		823		822
Total United States Government Agency Obligations – 1.4%				3,046
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS – 1.4%			$	3,046
(Cost: $3,046)
TOTAL INVESTMENT SECURITIES – 99.4%			$	212,102
(Cost: $212,102)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6%				1,128
NET ASSETS – 100.0%			$	213,230

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets or the next demand date.

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

The following table is a summary of the valua tion of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Corporate Obligations	$	—	$	152,886	$	—
Municipal Obligations		—		56,170		—
United States Government Agency Obligations		—		3,046		—
Total	$	—	$	212,102	$	—

There were no transfers between any levels during the period ended September 30, 2013.

The following acronym is used throughout this schedule:

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

84 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Municipal Bond Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Bonds	94.8%
Municipal Bonds	94.8%
Cash and Cash Equivalents	5.2%

Lipper Rankings

Category: Lipper General Municipal Debt Funds	Rank	Percentile
1 Year	69/257	27
3 Year	111/225	50
5 Year	57/207	28
10 Year	52/161	33

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

Quality Weightings

Investment Grade	86.0%
AAA	2.5%
AA	28.0%
A	34.9%
BBB	20.6%
Non-Investment Grade	8.8%
BB	1.6%
Non-rated	7.2%
Cash and Cash Equivalents	5.2%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

2013 SEMIANNUAL REPORT 85

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS	Principal		Value
Alabama – 1.5%
The Pub Edu Bldg Auth of Tuscaloosa, Student Hsng Rev Bonds (Univ of AL Ridgecrest Residential Proj), Ser 2008, 6.750%, 7–1–33	$	500	$	563
The Spl Care Fac Fin Auth of Birmingham – Children’s Hosp, Hlth Care Fac Rev Bonds, Children’s Hosp, Ser 2009, 6.000%, 6–1–39		750		842
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A, 5.125%, 1–1–34		750		773
				2,178
Arizona – 1.5%
AZ Cert of Part, Ser 2010A (Insured by AGM), 5.250%, 10–1–26		1,000		1,084
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008, 6.625%, 7–15–25		500		596
Univ Med Ctr Corp (Tucson, AZ), Hosp Rev Bonds, Ser 2009, 6.500%, 7–1–39		500		539
				2,219
California – 14.8%
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 D-1 Index Rate Bonds, 0.966%, 4–1–45 (A)		1,000		999
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1, 1.170%, 4–1–45 (A)		1,500		1,489
CA Hlth Fac Fin Auth, Rev Bonds (Adventist Hlth Sys/West), Ser 2009A, 5.750%, 9–1–39		750		805
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part, 5.500%, 2–1–39		460		460
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj) Ser 2002B, 5.250%, 6–1–23		415		446
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, 5.000%, 10–1–22		375		376

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A, 5.000%, 10–1–37	$	500	$	496
CA Statewide Cmnty Dev Auth, Student Hsng Rev Bonds (Univ of CA, Irvine East Campus Apt, Phase I Rfdg-CHF-Irvine, L.L.C.), Ser 2011, 5.000%, 5–15–21		1,195		1,309
CA Various Purp GO Bonds:
5.000%, 2–1–22		495		503
5.250%, 9–1–26		1,500		1,689
5.250%, 10–1–29		500		534
6.500%, 4–1–33		1,000		1,182
5.000%, 4–1–37		700		724
6.000%, 11–1–39		500		576
CA Various Purp GO Rfdg Bonds, 5.000%, 2–1–33		2,000		2,096
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009, 5.125%, 7–1–25		500		537
Contra Costa Trans Auth, Sales Tax Rev Bonds (Ltd Tax Bonds), Ltd Tax Rfdg Bonds, Ser 2012A, 0.492%, 3–1–34 (A)		1,000		997
Golden State Tob Securitization Corp, Enhanced Tob Stlmt Asset–Bkd Bonds, Ser 2013A, 5.000%, 6–1–30		1,000		1,025
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F, 5.000%, 1–1–34		500		516
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A, 5.000%, 8–1–21		250		272
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part, 6.750%, 11–1–39		250		258
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E, 5.250%, 10–1–20		570		621
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, Ser 2010E, 6.000%, 10–1–25		445		473

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Riverside Cmnty College Dist, Riverside Cnty, CA, Election of 2004, GO Bonds, Ser 2004A (Insured by NPFGC), 5.500%, 8–1–29	$	200	$	209
San Jose, CA Arpt Rev Bonds, Ser 2011A-1, 5.250%, 3–1–21		500		567
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B, 6.000%, 7–1–27		500		584
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A:
5.250%, 10–1–24		500		565
5.000%, 12–1–24		500		557
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A, 0.000%, 8–1–31(B)		150		58
Vernon Elec Sys Rev Bonds, Ser 2012A, 5.500%, 8–1–41		315		319
				21,242
Colorado – 3.2%
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008, 5.000%, 12–1–25		500		555
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010, 5.000%, 12–1–23		500		559
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010, 6.125%, 5–1–40		475		480
CO Hsng and Fin Auth, Sngl Fam Mtg Class I Bonds, Ser 2009A (Insured by FHA/VA), 5.500%, 11–1–29		355		368
Denver Hlth and Hosp Auth, Hlthcare Recovery Zone, Fac Rev Bds, Ser 2010, 5.625%, 12–1–40		500		506
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008, 6.000%, 12–1–28		500		615

86 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, 6.125%, 12–1–30	$	500	$	510
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012, 5.000%, 12–1–36		300		283
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, 6.500%, 1–15–30		750		804
				4,680
Connecticut – 1.0%
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D, 5.000%, 6–15–22		370		416
CT GO Bonds, Series 2012D, 0.990%, 9–15–19 (A)		1,000		995
				1,411
District Of Columbia – 1.7%
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC), 5.000%, 6–1–19		1,000		1,139
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009, 6.375%, 10–1–39		750		808
Metro Washington Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C, 0.000%, 10–1–16 (B)		500		462
				2,409
Florida – 6.5%
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B, 7.000%, 4–1–39		500		543
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009, 6.750%, 11–1–39		500		504
Citizens Ppty Ins Corp, Sr Secured Rev Bonds, Ser 2010A-1, 5.250%, 6–1–17		400		451
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A, 5.625%, 8–15–29		555		666
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B, 8.000%, 8–15–32		600		816

MUNICIPAL BONDS (Continued)	Principal		Value
Florida (Continued)
Jacksonville, FL Better Jacksonville Sales Tax Rev Bonds, Ser 2003 (Insured by NPFGC), 5.250%, 10–1–19	$	250	$	250
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A, 5.500%, 10–1–36		500		526
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010A, 5.500%, 10–1–41		385		401
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B, 5.000%, 10–1–23		500		557
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B, 6.250%, 7–1–26		500		587
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM), 5.250%, 10–1–22		500		587
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC), 5.000%, 10–1–17		500		574
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, 7.250%, 10–1–34		500		553
Pinellas Cnty Edu Fac Auth, Rev Rfdg Prog Bonds (Barry Univ Proj), Ser 2012, 5.250%, 10–1–30		750		753
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A, 5.750%, 7–1–20		500		568
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A, 5.875%, 8–1–40		500		514
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj.) Ser 2011, 5.250%, 10–15–22		500		565
				9,415
Georgia – 0.8%
Atlanta, GA, Water and Wastewater Rev Bonds, Ser 2009B, 5.375%, 11–1–39		500		519

MUNICIPAL BONDS (Continued)	Principal		Value
Georgia (Continued)
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D, 5.750%, 1–1–20	$	500	$	577
				1,096
Hawaii – 0.8%
HI Arpt Sys Rev Bond, Rfdg Ser 2011, 5.000%, 7–1–21		1,000		1,132
Illinois – 4.2%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A:
5.000%, 5–1–26		200		180
5.700%, 5–1–36		250		225
Build IL Sales Tax Rev Bonds, Ser 2011, 5.000%, 6–15–27		500		537
Chicago GO Bonds, Proj and Rfdg, Ser 2004A (Insured by AGM):
5.250%, 1–1–14		175		178
5.250%, 1–1–21		75		75
Chicago GO Bonds, Proj Ser 2011A, 5.250%, 1–1–35		200		195
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, 6.500%, 4–1–39		500		531
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B, 5.500%, 7–1–19		500		579
IL Fin Auth, Student Hsng Rev Bonds (CHF-DeKalb, L.L.C. – Northn IL Univ Proj), Ser 2011, 5.750%, 10–1–21		395		415
IL GO Bonds, Ser 2012A, 4.000%, 1–1–23		1,250		1,226
IL Sales Tax Rev Bonds (Jr Oblig), Series 2013, 5.000%, 6–15–26		300		328
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, 2013 Ser A, 5.000%, 1–1–35		1,100		1,115
State of IL GO Bonds, 5.500%, 7–1–26		500		526
				6,110
Indiana – 1.1%
East Chicago Elem Sch Bldg Corp (Lake Cnty, IN), First Mtg Bonds, Ser 1993A, 5.500%, 1–15–16		125		126
Hammond IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, 6.000%, 1–15–17		425		426

2013 SEMIANNUAL REPORT 87

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Indiana (Continued)
IN Fin Auth, Fac Rev Rfdg Bonds (Miami Correctional Fac – Phase II), Ser 2008C, 5.000%, 7–1–17	$	500	$	571
Mt. Vernon Sch Bldg Corp of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM):
5.250%, 1–15–18		130		152
5.250%, 1–15–32		370		381
				1,656
Iowa – 1.2%
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008, 6.000%, 6–1–34		1,000		1,032
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012, 5.000%, 9–1–33		750		710
				1,742
Kansas – 1.2%
Arkansas City, KS Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, 7.000%, 9–1–38		500		556
Sedgwick Cnty, KS and Shawnee Cnty, KS, Sngl Fam Mtg Rev Bonds (Mtg-Bkd Sec Prog), Ser 2003A-2 (Insured by GNMA/FNMA), 5.650%, 6–1–35		90		94
Shawnee Cnty, KS Cert of Part (First Responders Comm Proj), Ser 2012, 5.000%, 9–1–24		1,050		1,143
				1,793
Kentucky – 1.9%
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90, 5.750%, 11–1–19		500		594
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A:
5.500%, 6–1–21		500		564
6.500%, 3–1–45		675		717
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A, 5.250%, 7–1–28		500		526
Tpk Auth of KY, Econ Dev Road Rev Bonds (Revitalization Proj), Ser 2008A, 5.000%, 7–1–16		330		368
				2,769

MUNICIPAL BONDS (Continued)	Principal		Value
Louisiana – 3.2%
LA Citizens Prop Ins Corp, Assmt Rev Rfdg Bonds, Ser 2012, 5.000%, 6–1–24	$	500	$	540
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Hosp Rev Bonds (Women’s Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B, 6.000%, 10–1–44		750		798
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A-1, 6.000%, 1–1–23		500		570
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM), 5.000%, 12–1–26		1,500		1,618
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM), 5.000%, 12–1–22		1,000		1,129
				4,655
Maryland – 1.1%
MD Econ Dev Corp, Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006, 6.200%, 9–1–22		500		591
MD Hlth and Higher Edu Fac Auth Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D, 0.952%, 5–15–38 (A)		1,000		999
				1,590
Massachusetts – 1.0%
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010, 6.375%, 7–1–30		500		529
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009, 6.000%, 1–1–28		315		336
MA Port Auth, PFC Rev Rfdg Bonds, Ser 2010-E, 5.000%, 7–1–15		500		536
				1,401
Michigan – 2.7%
Detroit, MI, Water Supply Sys Rev, Sr Lien Bonds, Ser 2011-A, 5.750%, 7–1–37 (C)		500		481
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A, 5.000%, 5–15–26		500		523

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
MI Fin Auth Rev Bonds (Detroit Sch Dist), Ser 2011, 5.500%, 6–1–21	$	1,000	$	1,106
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009, 5.750%, 11–15–39		750		766
State Bldg Auth, MI, 2006 Rev Rfdg Bonds (Fac Prog), Ser IA (Insured by FGIC), 0.000%, 10–15–22 (B)		1,000		679
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I, 5.000%, 10–15–18		305		344
				3,899
Minnesota – 0.4%
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D, 5.000%, 1–1–20		500		561
Mississippi – 0.5%
The Univ of Southn MS, S.M. Edu Bldg Corp, Rev Bonds (Campus Fac Impvt Proj), Ser 2009, 5.375%, 9–1–36		750		789
Missouri – 3.9%
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2004, 6.250%, 3–1–24		200		199
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, 6.125%, 12–1–36		175		133
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009, 5.625%, 5–15–39		750		773
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011, 5.500%, 2–15–31		750		766
Indl Dev Auth of Kansas City, MO, Rev Bonds (Plaza Library Proj), Ser 2004, 5.900%, 3–1–24		200		201
MO Dev Fin Board, Infra Fac Rev Bonds (Branson Landing Proj), Ser 2004A, 5.250%, 6–1–14		65		67
MO Dev Fin Board, Infra Fac Rev Bonds (Independence, MO – Events Ctr Proj), Ser 2009A, 6.625%, 4–1–14		580		599

88 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
Platte Cnty R-III Sch Dist Bldg Corp, Leasehold Rfdg and Impvt Rev Bonds, Ser 2008, 5.000%, 3–1–28	$	340	$	353
Pub Water Supply Dist No. 1 of Lincoln Cnty, MO, Cert of Part, Ser 2009, 6.750%, 6–15–35		500		519
St. Louis Cnty, MO Indl Dev Auth, Sr Living Fac Rev Bonds (Friendship Vlg Sunset Hills), Ser 2012, 5.000%, 9–1–32		1,120		1,116
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery Zone Fac Bonds (Proj Sugar), Ser 2010-C, 6.000%, 9–1–24 (C)		500		35
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, 6.850%, 4–1–29		230		234
The Indl Dev Auth of St. Joseph, MO, Spl Oblig Rev Bonds (St. Joseph Sewage Sys Impvt Proj), Ser 2007, 4.375%, 4–1–18		100		107
The Indl Dev Auth of St. Louis, MO, Sr Living Fac Rev Bonds (Friendship Vlg of West Cnty), Ser 2007A, 5.500%, 9–1–28		500		500
				5,602
Nevada – 0.9%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, 8.000%, 6–15–30		500		539
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008:
6.000%, 12–1–16		75		85
6.250%, 12–1–17		270		312
6.500%, 12–1–18		290		343
				1,279
New Hampshire – 0.7%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, 6.875%, 7–1–41		150		155
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA), 7.000%, 4–1–38		500		568
NH Hsng Fin Auth, Sngl Fam Mtg Acquisition Rev Bonds, Ser 2008, 6.000%, 7–1–38		345		350
				1,073

MUNICIPAL BONDS (Continued)	Principal		Value
New Jersey – 6.3%
Casino Reinvestment Dev Auth, Hotel Room Fee Rev Bonds, Ser 2004 (Insured by AMBAC), 5.250%, 1–1–19	$	640	$	671
Newark, NJ, Tax Appeal Rfdg Notes, Ser 2012E, 2.000%, 12–11–13		1,477		1,479
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty L.L.C. – Montclair St Univ Student Hsng Proj), Ser 2010A, 5.750%, 6–1–31		850		907
NJ Econ Dev Auth, Sch Fac Constr Bonds, Ser 2005O, 5.125%, 3–1–30		250		267
NJ Econ Dev Auth, Sch Fac Constr Notes, Ser 2012H, 0.970%, 2–1–17 (A)		2,000		2,001
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE, 5.250%, 9–1–24		500		563
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1, 5.000%, 12–1–19		500		552
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A, 5.625%, 7–1–37		500		511
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A, 5.500%, 7–1–38		500		515
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR), 5.500%, 12–15–22		500		596
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2003B-2, 5.000%, 12–15–16		500		564
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G, 5.750%, 12–1–21		435		514
				9,140
New Mexico – 0.1%
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2006D (Insured by GNMA/FNMA/FHLMC), 6.000%, 1–1–37		35		38
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2 (Insured by GNMA/FNMA/FHLMC), 5.250%, 7–1–30		70		72
				110

MUNICIPAL BONDS (Continued)	Principal		Value
New York – 4.5%
Battery Park City Auth, Jr Rev Bonds (Auction Rate Sec) Ser 2003C-1 (Insured by AGM), 0.360%, 11–1–33 (A)	$	1,300	$	1,199
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowak Power Corp Proj), Ser 1985A (Insured by AMBAC), 0.448%, 12–1–23 (A)		1,380		1,294
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co of NY, Inc. Proj) Sub Ser 1999A-1 (Insured by AMBAC), 0.105%, 5–1–34 (A)		2,000		1,691
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A:
0.000%, 3–1–25 (B)		500		314
0.000%, 3–1–26 (B)		500		289
0.000%, 3–1–27 (B)		500		271
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Series 2013I, 5.000%, 5–1–29		400		441
Port Auth of NY and NJ, Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC), 5.750%, 11–1–30		500		537
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp Assoc Civic Fac), Ser 1999A, 7.250%, 1–1–20		80		80
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp Assoc Civic Fac), Ser 1999B, 7.625%, 1–1–30		455		449
				6,565
North Carolina – 1.0%
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C, 6.000%, 1–1–19		250		274
NC Med Care Comsn, Hlth Care Fac Rev Rfdg Bonds (Univ Hlth Sys of Eastn Carolina), Ser 2008E-2, 6.000%, 12–1–36		500		531
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A, 0.000%, 1–1–37 (B)		500		150
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009, 6.000%, 6–1–34		500		541
				1,496

2013 SEMIANNUAL REPORT 89

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Ohio – 1.0%
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010, 5.750%, 12–1–30	$	500	$	530
OH Major New State Infra Proj Rev Bonds, Ser 2008-I, 6.000%, 6–15–17		395		464
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund), (Midwest Terminals Proj) Ser 2007C, 6.000%, 11–15–27		430		450
				1,444
Oklahoma – 0.9%
Cleveland Cnty Justice Auth, Sales Tax Rev Bonds (Cleveland Cnty Detention Fac Proj), Ser 2009B, 5.750%, 3–1–29		230		237
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC), 5.000%, 6–1–18		905		1,048
Tulsa Pub Fac Auth, Assembly Ctr Lease Payment Rev Bonds, Rfdg Ser 1985, 6.600%, 7–1–14		50		52
				1,337
Oregon – 0.2%
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A, 5.500%, 7–15–35		250		258
Pennsylvania – 4.1%
Allegheny Cnty Arpt Auth, Arpt Rev Rfdg Bonds (Pittsburg Intl Arpt), Ser 2010A, 5.000%, 1–1–17		250		279
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2012, 3.000%, 1–1–17		895		860
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A, 6.000%, 6–1–36		600		638
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A, 5.750%, 7–1–39		500		510
PA Higher Edu Fac Auth, Rev Bonds (Shippensburg Univ Student Svc, Inc. Student Hsng Proj at Shippensburg Univ of PA), Ser 2011, 6.000%, 10–1–26		500		540

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania (Continued)
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D, 5.500%, 12–1–41	$	750	$	769
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010B-2, 0.000%, 12–1–15 (B)		1,500		1,434
Philadelphia Auth Indl Dev Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011, 7.250%, 12–15–31		400		411
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM), 5.250%, 12–15–24		445		479
				5,920
Puerto Rico – 3.3%
Cmnwlth of PR, Pub Impvt Rfdg Bonds (GO Bonds), Ser 2007A, 5.500%, 7–1–21		500		420
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2012A, 5.500%, 7–1–39		1,250		847
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A, 6.000%, 7–1–44		700		523
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A (Sr Lien), 6.000%, 7–1–38		500		381
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX, 5.750%, 7–1–36		750		560
PR Elec Power Auth, Power Rev Bonds, Ser ZZ, 5.250%, 7–1–24		1,000		783
PR Elec Power Auth, Power Rev Rfdg Bonds, Ser DDD, 5.000%, 7–1–21		1,000		815
PR Pub Fin Corp (Cmnwlth Approp Bonds), 2011 Ser B, 5.500%, 8–1–31		250		179
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2010A, 0.000%, 8–1–19 (B)		500		283
				4,791
Rhode Island – 0.4%
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A, 5.250%, 12–1–18		565		622
Tennessee – 0.4%
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C, 5.250%, 6–1–18		500		575

MUNICIPAL BONDS (Continued)	Principal		Value
Texas – 10.6%
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC), 5.000%, 8–15–18	$	300	$	340
Bexar Cnty Hlth Fac Dev Corp, Rev Bonds (Army Ret Residence Fndtn Proj), Ser 2010, 6.200%, 7–1–45		250		262
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008, 5.250%, 3–15–19		355		411
Cass Cnty Indl Dev Corp, Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A, 9.250%, 3–1–24		500		599
Clifton Higher Edu Fin Corp, Edu Rev Bonds (IDEA Pub Sch), Ser 2011, 5.750%, 8–15–41		500		507
El Paso, TX (El Paso Cnty), Water and Sewer Rev Rfdg Bonds, Ser 2008C, 5.000%, 3–1–17		500		567
Harris Cnty Cultural Edu Fac Fin Corp, Med Fac Rev Rfdg Bonds (Baylor College of Medicine), Ser 2008D, 5.000%, 11–15–16		200		223
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008, 6.000%, 2–15–33		500		445
Houston Higher Edu Fin Corp, Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, 6.500%, 5–15–31		1,000		1,083
Houston, TX Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A, 5.000%, 7–1–32		500		496
Houston, TX, Combined Util Sys, First Lien Rev Rfdg Bonds (SIFMA Index Floating Rate Bonds), Ser 2012C, 0.670%, 5–15–34 (A)		500		500
Howard Cnty, TX GO Bonds, Ser 2008, 4.650%, 2–15–24		505		520
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A, 5.750%, 5–15–23		500		578
Lufkin Hlth Fac Dev Corp, Rev Rfdg and Impvt Bonds (Mem Hlth Sys of East TX), Ser 2009, 6.250%, 2–15–37		500		522

90 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Mission Econ Dev Corp, Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff, LLC Proj), Ser 2011, 5.625%, 12–1–17	$	505	$	517
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008A, 6.000%, 1–1–25		500		566
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D, 0.000%, 1–1–30 (B)		1,000		431
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008, 5.500%, 2–15–20		500		567
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (NW Sr Hsng Corp – Edgemere Proj), Ser 2006A, 6.000%, 11–15–36		500		499
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007, 5.625%, 11–15–27		250		248
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008, 5.750%, 2–1–26		325		371
TX Muni Gas Acquisition and Supply Corp III, Gas Supply Rev Bonds, Ser 2012, 5.000%, 12–15–16		1,000		1,082
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009, 6.875%, 12–31–39		500		545
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010, 7.500%, 6–30–33		750		860
TX Trans Comsn Cent TX Tpk Sys, First Tier Rev Rfdg Bonds, Ser 2012-B, 1.250%, 8–15–42 (A)		2,500		2,508
				15,247
Utah – 0.5%
Midvale, UT Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012:
2.000%, 10–15–16		195		199
2.000%, 10–15–17		465		474
				673

MUNICIPAL BONDS (Continued)	Principal		Value
Vermont – 0.0%
VT Hsng Fin Agy, Sngl Fam Hsng Bonds, Ser 27 (Insured by AGM), 5.500%, 11–1–37	$	50	$	51
Virgin Islands – 1.1%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Cruzan Proj), Ser 2009A, 6.000%, 10–1–39		500		512
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A, 5.000%, 10–1–25		1,000		1,047
				1,559
Virginia – 0.9%
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C, 7.500%, 7–1–29		500		567
VA Hsng Dev Auth, Cmnwlth Mtg Bonds, Ser 2008E, 5.500%, 7–1–20		415		446
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B, 5.250%, 8–1–22		250		286
				1,299
Washington – 1.3%
Pub Util Dist No. 1, Pend Oreille Cnty, WA, Box Canyon Production Sys Rev Bonds, Ser 2010, 5.750%, 1–1–41		750		791
WA Hlth Care Fac Auth, Rev Bonds (Swedish Hlth Svc), Ser 2009A, 6.500%, 11–15–33		500		534
WA Hlth Care Fac Auth, Rev Bonds (Virginia Mason Med Ctr), Ser 2007C, 5.500%, 8–15–36		500		504
				1,829
West Virginia – 0.6%
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, 6.500%, 10–1–31		300		317
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C, 5.500%, 6–1–39		500		517
				834

MUNICIPAL BONDS (Continued)	Principal		Value
Wisconsin – 1.2%
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B, 5.000%, 12–1–19	$	1,000	$	1,142
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009, 6.625%, 2–15–39		500		543
				1,685
Wyoming – 0.6%
Hsng Auth of Cheyenne, Hsng Rev Bonds (Foxcrest II Proj), Ser 2004, 5.750%, 6–1–34		300		287
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A, 5.250%, 1–1–23		500		562
				849
TOTAL MUNICIPAL BONDS – 94.8%			$	136,985
(Cost: $133,028)
SHORT-TERM SECURITIES
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (D)		112		112
Municipal Obligations – 4.0%
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by Bank of America, N.A.), 0.040%, 10–1–13 (D)		1,500		1,500
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank, N.A.), 0.060%, 10–7–13 (D)		2,500		2,500
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank, N.A.), 0.040%, 10–1–13 (D)		1,500		1,500

2013 SEMIANNUAL REPORT 91

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

SHORT-TERM SECURITIES (Continued)	Principal		Value
Municipal Obligations (Continued)
MS Business Fin Corp, Gulf Opp Zone Indl Dev Rev Bonds (Chevron U.S.A. Inc. Proj), Ser 2007B (GTD by Chevron Corporation), 0.060%, 10–1–13 (D)	$	300	$	300
				5,800
TOTAL SHORT-TERM SECURITIES – 4.1%			$	5,912
(Cost: $5,912)
TOTAL INVESTMENT SECURITIES – 98.9%			$	142,897
(Cost: $138,940)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1%				1,556
NET ASSETS – 100.0%			$	144,453

Notes to Schedule of Investments

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(B) Zero coupon bond.

(C) Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(D) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Municipal Bonds	$	—	$	134,096	$	2,889
Short-Term Securities		—		5,912		—
Total	$	—	$	140,008	$	2,889

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

	Municipal Bonds
Beginning Balance 4-1-13	$	4,291
Net realized gain (loss)		—
Net change in unrealized appreciation (depreciation)		(62	)
Purchases		—
Sales		—
Amortization/Accretion of premium/discount		—
Transfers into Level 3 during the period		—
Transfers out of Level 3 during the period		(1,340	)
Ending Balance 9-30-13	$	2,889
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-13	$	(62	)

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

92 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal Bond Fund (in thousands)

SEPTEMBER 30, 2013 (UNAUDITED)

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9-30-13	Valuation Technique(s)	Unobservable Input(s)
Assets
Municipal Bonds	$2,889	Broker	Broker quotes

The following acronyms are used throughout this schedule:

AGM = Assured Guaranty Municipal

AMBAC = American Municipal Bond Assurance Corp.

BHAC = Berkshire Hathaway Assurance Corporation

CR = Custodial Receipts

FGIC = Financial Guaranty Insurance Co.

FHA = Federal Housing Administration

FHLMC = Federal Home Loan Mortgage Corp.

FNMA = Federal National Mortgage Association

GNMA = Government National Mortgage Association

GTD = Guaranteed

NPFGC = National Public Finance Guarantee Corp.

VA = Department of Veterans Affairs

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 93

PORTFOLIO HIGHLIGHTS

Ivy Municipal High Income Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Bonds	96.7%
Municipal Bonds	96.7%
Cash and Cash Equivalents	3.3%

Lipper Rankings

Category: Lipper High Yield Municipal Debt Funds	Rank	Percentile
1 Year	62/121	51
3 Year	51/114	45

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

Quality Weightings

Investment Grade	39.4%
AA	3.3%
A	8.1%
BBB	28.0%
Non-Investment Grade	57.3%
BB	8.7%
B	6.0%
CCC	1.8%
Below CCC	0.1%
Non-rated	40.7%
Cash and Cash Equivalents	3.3%

Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s.

94 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS	Principal		Value
Alabama – 0.8%
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012-A, 5.000%, 6–1–21	$	1,000	$	1,126
Fairfield, AL GO Warrants, Ser 2012, 6.000%, 6–1–37		8,485		8,301
				9,427
Alaska – 0.6%
Northn Tob Securitzation Corp, Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds, 5.000%, 6–1–46		11,000		7,663
Arizona – 4.9%
AZ Hlth Fac Auth, Rev Bonds (Banner Hlth), Ser 2007B, 0.994%, 1–1–37 (A)		20,000		15,140
Indl Dev Auth of Mohave Cnty, Correctional Fac Contract Rev Bonds (Mohave Prison, LLC Expansion Proj), Ser 2008: 7.500%, 5–1–19		1,825		2,090
8.000%, 5–1–25		7,500		8,876
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Basic Sch Proj), Ser 2004A, 6.125%, 12–15–34		1,315		1,296
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A: 6.000%, 12–1–27		2,390		2,437
6.250%, 12–1–42		2,150		2,145
6.250%, 12–1–46		1,000		986
Indl Dev Auth of Tucson, Edu Rev Bonds (Agribusiness and Equine Ctr Proj), Ser 2004A, 6.125%, 9–1–34		500		490
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011, 7.875%, 3–1–42		3,500		3,821
La Paz Cnty, AZ, Indl Dev Auth, Indl Dev Rev Sr Lien, Imperial Rgnl Detention Fac Proj, 7.800%, 10–1–39		25,000		24,917
				62,198
California – 9.1%
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A, 6.750%, 7–1–39		4,000		4,153

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Anaheim Cmnty Facs Dist No. 08-1 (Platinum Triangle), Spl Tax Bonds, Ser 2010, 6.250%, 9–1–40	$	5,275	$	5,345
Arpt Comsn of San Francisco, San Francisco Intl Arpt, Second Ser Rev Rfdg Bonds, Ser 2012A: 5.000%, 5–1–28		2,500		2,674
5.000%, 5–1–29		1,750		1,831
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B, 6.000%, 9–1–30		2,170		2,199
CA Muni Fin Auth, Edu Fac Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2006A, 5.250%, 6–1–36		1,150		937
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Ser 2009A, 8.750%, 10–1–39		1,505		1,698
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B, 8.000%, 10–1–22		400		449
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, 5.000%, 10–1–42		1,200		1,030
CA Statewide Cmnty Dev Auth Rev Bonds (Lancer Plaza Proj), Ser 2013: 5.625%, 11–1–33		1,400		1,248
5.875%, 11–1–43		1,890		1,643
CA Statewide Cmnty Dev Auth Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009, 6.625%, 11–15–24		2,490		2,750
CA Statewide Cmnty Dev Auth, Rev Bonds (Thomas Jefferson Sch of Law), Ser 2008 A: 7.250%, 10–1–32		3,400		3,340
7.250%, 10–1–38		5,000		4,878
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch), Ser 2010: 6.000%, 7–1–40		7,365		7,192
6.350%, 7–1–46		250		251
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southrn CA Presbyterian Homes), Ser 2009, 7.000%, 11–15–29		2,000		2,192

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009, 7.250%, 11–15–41	$	6,000	$	6,531
CA Various Purp GO Bonds, 6.000%, 4–1–35		500		570
Cert of Part, Oro Grande Elementary Sch Dist, Ser 2013, 5.125%, 9–15–42		2,130		1,908
Golden State Tob Securitization Corp, Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1, 5.125%, 6–1–47		1,000		701
Inland Empire Tob Securitization Auth, Tob Stlmt Asset-Bkd Bonds (Inland Empire Tob Securitization Corp), Ser 2007, 4.625%, 6–1–21		4,260		3,898
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part: 6.750%, 11–1–39		4,935		5,086
6.000%, 11–1–41		3,000		2,920
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds, 8.000%, 8–1–38		100		108
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011: 7.000%, 12–1–26		5,000		5,562
8.000%, 12–1–26		1,400		1,653
8.000%, 12–1–31		9,400		10,760
San Jose, CA Arpt Rev Bonds, Ser 2011A-1, 5.250%, 3–1–34		2,500		2,560
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012, 6.000%, 9–1–42		8,000		8,330
State Pub Works Board of CA, Lease Rev Bonds (Var Cap Proj), 2012 Ser G, 5.000%, 11–1–37		5,000		5,062
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.), Ser 2006A, 4.750%, 6–1–25		6,060		5,707

2013 SEMIANNUAL REPORT 95

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
California (Continued)
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp), Ser 2006A Sr Current Int Bonds, 5.000%, 6–1–37	$	12,500	$	9,453
				114,619
Colorado – 4.1%
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008, 6.000%, 10–1–40		9,005		9,046
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010, 6.125%, 10–1–40		5,000		5,116
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A, 7.400%, 12–1–38		85		93
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks Charter Academy Proj), Ser 2008, 7.000%, 11–15–38		230		250
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010, 6.125%, 5–1–40		1,000		1,010
CO Hlth Fac Auth Rev Bonds (CO Sr Residences Proj), Ser 2012: 6.750%, 6–1–32		2,610		2,526
7.125%, 6–1–47		3,000		2,953
CO Hlth Fac Auth, Rev Bonds (Christian Living Cmnty – Clermont Park Proj), Ser 2006A, 5.750%, 1–1–37		1,460		1,428
CO Hlth Fac Auth, Rev Bonds (Christian Living Cmnty – Clermont Park Proj), Ser 2009A, 7.250%, 1–1–14		100		103
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A, 6.250%, 11–15–40		1,250		1,295
Kremmling Mem Hosp Dist Proj, Ser 2010, 7.125%, 12–1–45		4,345		4,455

MUNICIPAL BONDS (Continued)	Principal		Value
Colorado (Continued)
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, 6.200%, 12–1–37	$	3,500	$	3,548
North Range Metro Dist No. 2, Adams Cnty, CO, Ltd Tax GO Bonds, Ser 2007, 5.500%, 12–15–27		4,660		4,401
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010: 6.500%, 1–15–30		3,000		3,213
6.000%, 1–15–41		2,990		3,014
Sorrel Ranch Metro Dist, Arapahoe Cnty, CO, GO Ltd Tax Bonds, Ser 2006, 5.750%, 12–1–36		4,269		3,840
Tallgrass Metro Dist, Arapahoe Cnty, CO, GO Ltd Tax Rfdg and Impvt Bonds, Ser 2007, 5.250%, 12–1–37		3,774		3,259
Wildgrass Metro Dist, Broomfield Cnty, CO, GO Ltd Tax Rfdg Bonds, Ser 2007, 6.200%, 12–1–34		2,524		2,432
				51,982
Connecticut – 0.6%
Eastn CT Res Recovery Auth, Solid Waste Rev Bonds (Wheelabrator Lisbon Proj), Ser 1993A, 5.500%, 1–1–14		45		45
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds, Ser 2010A, 7.875%, 4–1–39		2,000		2,172
Stamford, CT Spl Oblig Rev Bonds (Mill River Corridor Proj), Ser 2011A, 7.000%, 4–1–41		5,000		5,046
				7,263
Delaware – 0.5%
DE Econ Dev Auth, Exempt Fac Rev Bonds (Indian River Power LLC Proj), Ser 2010, 5.375%, 10–1–45		7,000		6,618
District Of Columbia – 0.1%
Metro WA Arpts Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2010B, 0.000%, 10–1–18 (B)		1,000		793

MUNICIPAL BONDS (Continued)	Principal		Value
Florida – 3.3%
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009: 6.500%, 11–1–29	$	710	$	718
6.750%, 11–1–39		1,490		1,503
Cap Trust Agy, Rev Bonds (Million Air One LLC Gen Aviation Fac Proj), Ser 2011, 7.750%, 1–1–41		5,685		6,039
FL Dev Fin Corp, Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A, 6.000%, 9–15–40		4,000		3,620
FL Dev Fin Corp, Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012A, 6.125%, 6–15–43		6,500		5,647
FL Dev Fin Corp, Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B, 7.500%, 6–15–18		1,700		1,696
FL Hurricane Catastrophe Fund Fin Corp, Rev Bonds, Ser 2010A, 5.000%, 7–1–15		1,000		1,076
Lee Cnty Indl Dev Auth, Hlthcare Fac Rfdg Rev Bonds (Cypress Cove at HealthPark FL, Inc. Proj), Ser 2012, 6.500%, 10–1–47		6,000		6,058
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B, 5.000%, 10–1–25		1,000		1,089
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser2011A, 7.250%, 10–1–40		4,800		5,270
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, 7.250%, 10–1–34		5,200		5,751
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A, 6.000%, 8–1–45		3,000		3,101
				41,568
Georgia – 0.3%
DeKalb Cnty, GA, Hosp Auth, Rev Anticipation Cert (DeKalb Med Ctr, Inc. Proj), Ser 2010, 6.125%, 9–1–40		2,500		2,522

96 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Georgia (Continued)
Savannah Econ Dev Auth, First Mtg Rev Bonds (The Marshes of Skidaway Island Proj), Ser 2003A: 7.400%, 1–1–24	$	250	$	253
7.400%, 1–1–34		815		821
				3,596
Guam – 1.0%
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, 6.625%, 12–1–30		1,400		1,444
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A, 6.875%, 12–1–40		3,500		3,628
Govt of GU, GO Bonds, Ser 2009A: 5.750%, 11–15–14		65		66
7.000%, 11–15–39		7,000		7,394
				12,532
Hawaii – 0.6%
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside Proj), Ser 2009A: 8.750%, 11–15–29		1,450		1,623
9.000%, 11–15–44		4,200		4,681
Kaua’I Cmnty Fac Dist No. 2008-1 (Kukul’ula Dev Proj), Spl Tax Rev Bonds, Ser 2012, 5.750%, 5–15–42		2,000		1,857
				8,161
Idaho – 0.1%
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A: 6.250%, 7–1–40		1,000		1,009
6.250%, 7–1–45		550		552
				1,561
Illinois – 10.3%
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A: 5.000%, 5–1–26		1,275		1,147
5.700%, 5–1–36		4,160		3,745
Cert of Part, Metra Market of Chicago, L.L.C. Redev Proj, Ser A, 6.870%, 2–15–24		1,400		1,458
Chicago Midway Arpt, Second Lien Rev Bonds, Ser 2010B, 5.000%, 1–1–34		1,500		1,577

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Chicago Multi-Fam Hsng Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013, 6.125%, 12–1–43	$	6,000	$	5,164
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A, 5.750%, 1–1–39		1,000		1,036
Cook Cnty, IL Recovery Zone Fac Rev Bonds (Navistar Intl Corp Proj), Ser 2010, 6.500%, 10–15–40		11,000		11,143
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A, 8.000%, 12–1–28		370		381
IL Fin Auth Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012, 5.625%, 5–15–42		4,500		4,169
IL Fin Auth, Rev Bonds (Navistar Intl Corp Proj), Ser 2010, 6.500%, 10–15–40		10,500		10,635
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, 6.500%, 4–1–44		10,000		10,589
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A, 8.000%, 5–15–40		15,000		15,832
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj),Ser 2010A, 8.000%, 5–15–46		6,500		6,842
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010D-3, 6.000%, 5–15–17		835		835
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009, 7.000%, 8–15–44		7,000		7,570
IL Fin Auth, Rev Bonds (Three Crowns Park Proj), Ser 2006A: 5.875%, 2–15–26		1,000		1,001
5.875%, 2–15–38		2,500		2,349
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, 2013 Ser A, 5.000%, 1–1–38		5,000		5,007
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009, 7.875%, 3–1–32		500		517

MUNICIPAL BONDS (Continued)	Principal		Value
Illinois (Continued)
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010, 7.500%, 3–1–32	$	1,500	$	1,526
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A, 7.000%, 7–1–41		6,000		6,024
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008, 7.000%, 12–1–18		1,750		2,137
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009, 8.000%, 1–15–22		490		520
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012, 5.250%, 3–1–23		5,775		5,745
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010: 7.250%, 11–15–40		1,100		1,110
7.375%, 11–15–45		1,500		1,512
Upper IL River Vly Dev Auth Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012, 6.500%, 12–1–32		4,935		4,554
Vlg of East Dundee, Kane and Cook Cnty, IL, Ltd Oblig Tax Incr Rev Bonds (Route 25 South Redev Proj), Ser 2012, 5.625%, 12–1–31		1,525		1,332
Vlg of Matteson, Cook Cnty, IL, GO Cap Apprec Debt Cert, Ser 2010, 0.000%, 12–1–16 (B)		1,840		1,386
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011, 8.000%, 10–1–36		10,255		10,721
				127,564
Indiana – 2.9%
City of Carmel, IN, Rev Bonds, Ser 2012A: 7.000%, 11–15–27		1,550		1,575
7.000%, 11–15–32		2,000		2,002
7.125%, 11–15–42		7,500		7,457
Hammond IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, 6.000%, 1–15–17		10		10

2013 SEMIANNUAL REPORT 97

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Indiana (Continued)
Hendricks Cnty Redev Dist, Tax Incr Rev Rfdg Bonds, Ser 2010B, 6.450%, 1–1–23	$	205	$	211
IN Fin Auth, Rev Bonds (Irvington Cmnty Sch Proj), Ser 2009A, 9.000%, 7–1–39		1,075		1,218
IN Fin Auth, Midwestrn Disaster Relief Rev Bonds (OH Vly Elec Corp Proj), Ser 2012A, 5.000%, 6–1–39		10,000		9,123
Lake Station 2008 Bldg Corp, Lake Station, IN, First Mtg Bonds, Ser 2010, 6.000%, 7–15–27		3,170		3,406
Terre Haute, IN Rev Bonds (Westminister Vlg Proj),Ser 2012, 6.000%, 8–1–39		5,000		4,425
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A, 7.000%, 2–1–30		1,880		1,939
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006, 5.350%, 1–15–27		3,925		3,742
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Lakefront Dev Proj), Ser 2010, 6.750%, 1–15–32		1,400		1,430
				36,538
Iowa – 0.2%
IA Fin Auth, Ret Cmnty Rev Bonds (Edgewater LLC Proj), Ser 2007A, 6.750%, 11–15–37		3,000		3,028
Kansas – 0.5%
Arkansas City, KS Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, 7.000%, 9–1–38		500		556
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009, 6.000%, 9–1–30 (A)		1,000		1,002
Lawrence, KS (The Bowersock Mills & Power Co Hydroelec Proj) Indl Rev Bonds (Recovery Zone Fac Bonds), Ser 2010A, 7.625%, 8–1–37		4,000		3,823

MUNICIPAL BONDS (Continued)	Principal		Value
Kansas (Continued)
Olathe, KS, Sr Living Fac Rev Bonds (Catholic Care Campus, Inc.), Ser 2006A, 6.000%, 11–15–38	$	1,000	$	961
				6,342
Kentucky – 1.7%
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: 6.375%, 6–1–40		12,000		12,712
6.500%, 3–1–45		6,000		6,363
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp Proj), Ser 2010, 6.375%, 8–1–40		2,000		2,095
				21,170
Louisiana – 0.5%
LA Local Govt Envirnmt, Fac and Comm Dev Auth, Rev Bonds (Westlake Chemical Corp Projs) (Ike Zone), Ser 2010A-2, 6.500%, 11–1–35		3,975		4,232
LA Tob Stlmt Fin Corp, Tob Stlmt Asset-Bkd Rfdg Bonds, Ser 2013A, 5.250%, 5–15–35		1,000		981
New Orleans Aviation Board, Gulf Opp Zone CFC Rev Bonds (Consolidated Rental Car Proj), Ser 2009A, 6.500%, 1–1–40		745		824
				6,037
Maine – 0.2%
ME Hlth and Higher Edu Fac Auth, Rev Bonds (EastnME Med Ctr Oblig Group Issue) Ser 2013, 5.000%, 7–1–43		2,000		1,980
Portland, ME, Gen Arpt Rev Bonds, Ser 2010, 5.000%, 1–1–30		500		522
				2,502
Maryland – 0.4%
MD Econ Dev Corp, Econ Dev Rev Bonds (Terminal Proj), Ser B, 5.750%, 6–1–35		500		505
MD Econ Dev Corp, Port Fac Rfdg Rev Bonds (CNX Marine Terminals Inc. Port of Baltimore Fac), Ser 2010, 5.750%, 9–1–25		4,350		4,514
				5,019

MUNICIPAL BONDS (Continued)	Principal		Value
Massachusetts – 2.2%
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines,Inc., Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC), 0.258%, 1–1–31 (A)	$	35,000	$	27,825
Michigan – 6.5%
Detroit, MI, GO Bonds, Ser 2004-A(1) (Insured by AMBAC), 5.250%, 4–1–23 (C)		1,420		1,169
Econ Dev Corp of Oakland Cnty, Ltd Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011, 6.500%, 12–1–20		6,425		6,617
Flint Hosp Bldg Auth, Bldg Auth Rev Rental Bonds (Hurley Med Ctr), Ser 2010: 7.375%, 7–1–35		1,600		1,735
7.500%, 7–1–39		2,500		2,720
Kent Hosp Fin Auth Rev Bonds (Metro Hosp Proj), Ser 2005A: 6.000%, 7–1–35		2,785		2,839
6.250%, 7–1–40		15,500		15,840
MI Fin Auth, Pub Sch Academy Ltd Oblig Rev and Rev Rfdg Bonds (MI Technical Academy Proj), Ser 2012: 7.100%, 10–1–31		1,000		983
7.450%, 10–1–41		2,000		1,967
MI Fin Auth, Pub Sch Academy Ltd Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A, 6.125%, 9–1–40		4,535		4,238
MI Fin Auth, Rev Bonds (Sch Dist of Detroit), Ser 2012, 5.000%, 6–1–20		1,425		1,548
MI Fin Auth, Sr Edu Fac Rev Bonds (St. Catherine of Siena Academy Proj), Ser 2010A, 8.500%, 10–1–45		13,000		13,923
MI Fin Auth, State Aid Rev Notes (Sch Dist of Detroit), Ser 2001A-1, 8.000%, 10–1–30		2,480		2,621
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Backed Bonds, Ser 2008A, 6.875%, 6–1–42		17,500		16,313
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds,Sr Current Int Bonds, Ser 2007A, 5.125%, 6–1–22		4,430		3,755

98 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Michigan (Continued)
Royal Oak Hosp Fin Auth, Hosp Rev and Rfdg Bonds (William Beaumont Hosp Oblig Group), Ser 2009V: 8.000%, 9–1–29	$	55	$	66
8.250%, 9–1–39		4,750		5,710
Royal Oak Hosp Fin Auth, Hosp Rev and Rfdg Bonds (William Beaumont Hosp Oblig Group), Ser 2009W, 6.000%, 8–1–39		150		159
				82,203
Minnesota – 0.4%
Minneapolis Hlth Care Sys Rev Bonds (Fairview Hlth Svc), Ser 2008B, 6.500%, 11–15–38		4,350		4,978
Missouri – 3.7%
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A, 7.750%, 5–1–28		575		610
Belton, MO Tax Incr Rev Bonds (Belton MarketplaceRedev Proj), Ser 2012, 6.375%, 12–1–29		2,035		1,864
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2004: 6.000%, 3–1–19		2,610		2,620
6.250%, 3–1–24		1,100		1,093
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2006, 5.625%, 3–1–25		520		486
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, 6.125%, 12–1–36		200		152
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A: 5.250%, 10–1–21		250		224
5.400%, 10–1–26		385		310
5.500%, 10–1–31		425		323
5.550%, 10–1–36		325		237
Hlth and Edu Fac Auth of MO, Edu Fac Rfdg Rev Bonds, Rockhurst Univ, Ser 2011A, 6.500%, 10–1–30		1,000		1,101

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
Indl Dev Auth of Kirkwood, MO, Ret Cmnty Rev Bonds (Aberdeen Heights Proj), Ser 2010A, 8.250%, 5–15–45	$	1,000	$	1,111
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006, 5.000%, 11–1–23		2,360		2,305
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008: 6.000%, 4–1–18 (C)		1,170		812
7.000%, 4–1–28 (C)		535		371
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B, 7.000%, 9–1–35		1,000		971
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj) Ser 2011, 7.250%, 4–1–30		5,000		4,990
Liberty, MO, Tax Incr Rev Bonds (Liberty Triangle Proj), Ser 2007, 5.500%, 10–1–22		205		203
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010, 5.400%, 5–1–35		1,230		1,245
MO Dev Fin Board, Research Fac Rev Bonds (Midwest Research Institute Proj), Ser 2007, 4.500%, 11–1–27		225		203
St. Louis Cnty, MO, Rev Notes (Lambert Arpt Eastn Perimeter Redev Proj-RPA1), Sr Ser B, 9.000%, 11–1–31		8,975		8,826
St. Louis Muni Fin Corp, Compound Int Leasehold Rev Bonds (Convention Ctr Cap Impvt Proj), Ser 2010A (Insured by AGM): 0.000%, 7–15–36 (B)		750		214
0.000%, 7–15–37 (B)		1,500		402
Tax Incr Fin Comsn of Kansas City, MO, Tax Incr Rev Bonds (Brywood Ctr Proj), Ser 2010A, 8.000%, 4–1–33 (C)		3,950		2,296
The Elm Point Commons Cmnty Impvt Dist (St. Charles, MO), Spl Assmt Bonds, Ser 2007, 5.750%, 3–1–27		105		97

MUNICIPAL BONDS (Continued)	Principal		Value
Missouri (Continued)
The Indl Dev Auth of Bridgeton, MO, Sales Tax Rev Bonds (Hilltop Cmnty Impvt Dist Proj), Ser 2008A, 5.875%, 11–1–35	$	250	$	189
The Indl Dev Auth of Kansas City, MO, Hlth Care Fac First Mtg Rev Bonds (The Bishop Spencer Place Proj), Ser 1994: 6.250%, 1–1–24		1,365		1,375
6.500%, 1–1–35		7,000		7,016
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007, 5.750%, 3–1–29		1,000		878
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery Zone Fac Bonds (Proj Sugar), Ser 2010-C, 6.000%, 9–1–24 (C)		2,000		140
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, 6.850%, 4–1–29		220		224
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002, 7.000%, 8–15–32		4,000		3,995
				46,883
Nebraska – 1.0%
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012: 5.250%, 9–1–37		10,000		10,022
5.000%, 9–1–42		3,000		2,874
				12,896
Nevada – 0.2%
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, 8.000%, 6–15–30		1,500		1,617
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008, 8.000%, 12–1–38		265		307
				1,924

2013 SEMIANNUAL REPORT 99

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
New Hampshire – 0.2%
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, 6.875%, 7–1–41	$	2,300	$	2,377
New Jersey – 1.4%
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012: 5.000%, 6–15–26		1,000		1,030
5.000%, 6–15–28		1,000		1,009
5.000%, 6–15–29		500		497
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 1999, 5.250%, 9–15–29		5,000		4,594
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 2000, 7.000%, 11–15–30		2,000		2,000
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of NJ Issue, Ser 2009B: 7.125%, 12–1–23		850		1,100
7.500%, 12–1–32		450		591
Tob Stlmt Fin Corp, Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A, 5.000%, 6–1–41		10,000		7,190
				18,011
New York – 2.2%
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM), 5.000%, 10–1–22		1,000		1,125
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2007A: 6.500%, 1–1–27		6,750		3,744
6.700%, 1–1–43		13,000		7,209
NYC Indl Dev Agy, Spl Fac Rev Bonds (American Airlines, Inc. JFK Intl Arpt Proj), Ser 2005, 7.750%, 8–1–31		5,295		5,883
The Orange Co Funding Corp (NY), Assisted Living Residence Rev Bonds (The Hamlet at Wallkill Assisted Living Proj), Ser 2012, 6.500%, 1–1–46		11,500		9,851
				27,812

MUNICIPAL BONDS (Continued)	Principal		Value
North Carolina – 0.1%
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A, 6.000%, 1–1–39	$	1,520	$	1,506
Ohio – 2.1%
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Garfield Heights Proj), Ser 2004D, 5.250%, 5–15–23		1,145		1,061
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B, 7.000%, 5–15–40		2,600		2,750
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis HlthCare Sys Oblig Group Proj), Ser 2013, 5.000%, 2–15–48		8,000		6,272
Columbus-Franklin Cnty Fin Auth, Dev Rev Bonds (Cent OH Rgnl Bond Fund), (One Neighborhood Proj), Ser 2010A, 6.500%, 11–15–39		1,225		1,181
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009, 7.500%, 12–1–33		500		559
OH Higher Edu Fac Rev Bonds (Ashland Univ 2010 Proj), 6.250%, 9–1–24		890		906
OH Hosp Fac Rev Bonds (Summa Hlth Sys 2010 Proj), 5.750%, 11–15–40		500		520
SE OH Port Auth, Hosp Fac Rev Rfdg and Impvt Bonds(Mem Hlth Sys of OH), 6.000%, 12–1–42		3,750		3,595
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B, 5.500%, 5–15–28		840		873
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Express Arpt Proj), Ser 2004C, 6.375%, 11–15–32		310		314
Toledo-Lucas Cnty Port Auth, Spl Assmt Rev Bonds (Crocker Park Pub Impvt Proj), Ser 2003, 5.375%, 12–1–35		9,000		8,723
				26,754

MUNICIPAL BONDS (Continued)	Principal		Value
Oklahoma – 0.7%
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005: 6.125%, 11–15–25	$	2,000	$	2,007
6.000%, 11–15–38		7,495		6,981
				8,988
Oregon – 1.0%
Hosp Fac Auth of Deschutes Cnty, OR, Hosp Rev Rfdg Bonds (Cascade Hlthcare Cmnty, Inc.), Ser 2008, 8.250%, 1–1–38		1,240		1,468
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012, 6.000%, 5–15–42		2,900		2,857
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A: 6.125%, 9–1–30		1,040		1,056
6.375%, 9–1–40		1,750		1,791
Port of Portland, OR, Portland Intl Arpt, Passenger Fac Charge Rev Bonds, Ser 2011A, 5.500%, 7–1–30		5,180		5,639
				12,811
Pennsylvania – 5.0%
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B, 7.250%, 7–1–39		200		226
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010, 6.125%, 1–1–45		5,000		5,086
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A, 6.125%, 8–15–40		18,500		15,972
Hosp and Higher Edu Fac Auth of Philadelphia, Hosp Rev Bonds (Temple Univ Hlth Sys Oblig Grp), Ser 2012A, 5.625%, 7–1–42		3,000		2,574
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng Proj at Edinboro Univ of PA), Ser 2010, 6.000%, 7–1–43		2,530		2,475
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Ppty, Inc. Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010, 6.000%, 7–1–21		1,000		1,104

100 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Pennsylvania (Continued)
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E, 0.000%, 12–1–17 (A)	$	20,000	$	17,499
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010, 6.375%, 11–15–40		1,000		1,024
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011: 7.150%, 12–15–36		6,000		6,036
7.625%, 12–15–41		6,925		7,133
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012, 6.625%, 12–15–41		2,000		2,024
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser, 5.250%, 8–1–40		1,250		1,229
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992, 7.300%, 7–1–12 (C)		70		19
				62,401
Puerto Rico – 4.9%
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2011C, 6.500%, 7–1–40		3,000		2,311
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2012A: 5.750%, 7–1–28		3,000		2,349
5.500%, 7–1–39		5,000		3,389
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A, 6.000%, 7–1–47		12,000		8,907
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX: 5.750%, 7–1–36		2,415		1,803
5.250%, 7–1–40		5,270		3,667
PR Elec Power Auth, Power Rev Bonds, Ser 2012A, 5.000%, 7–1–42		10,000		6,866
PR Elec Power Auth, Power Rev Bonds, Ser 2013A, 7.000%, 7–1–43		14,000		11,380
PR Pub Bldg Auth, Govt Fac Rev Rfdg Bonds, Ser U, 5.250%, 7–1–42		8,755		5,896

MUNICIPAL BONDS (Continued)	Principal		Value
Puerto Rico (Continued)
PR Pub Fin Corp (Cmnwlth Approp Bonds), 2011 Ser B: 6.000%, 8–1–25	$	5,025	$	4,140
6.000%, 8–1–26		1,000		825
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2009A, 6.375%, 8–1–39		5,500		4,753
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, FirstSub Ser 2010A, 5.375%, 8–1–39		5,000		3,897
PR Sales Tax Fin Corp, Sales Tax Rev Bonds, First Sub Ser 2010C, 6.500%, 8–1–35		1,000		885
				61,068
South Carolina – 0.7%
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C, 5.750%, 1–1–34		1,550		1,694
SC Jobs – Econ Dev Auth, Student Hsng Rev Bonds (Coastal Hsng Fndtn, LLC Proj), Ser 2009A: 6.000%, 4–1–30		1,510		1,652
6.500%, 4–1–42		750		827
SC Pub Svc Auth, Rev Oblig, 2013 Tax-Exempt Ser E, 5.000%, 12–1–48		5,000		4,938
				9,111
Tennessee – 0.7%
The Hlth and Edu Fac Board of Johnson City, TN, Hosp Rfdg Rev Bonds (Mountain States Hlth Alliance), Ser 2006A, 5.500%, 7–1–36		8,515		8,696
The Hlth and Edu Fac Board of Johnson City, TN, Hosp Rfdg Rev Bonds (Mountain States Hlth Alliance), Ser 2010A, 6.500%, 7–1–38		500		549
				9,245
Texas – 15.8%
Bexar Cnty Hlth Fac Dev Corp, Rev Bonds (Army Ret Residence Fndtn Proj), Ser 2010, 6.200%, 7–1–45		3,250		3,404

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Cap Area Cultural Ed Fac Fin Corp, Rev Bds (The Roman Catholic Diocese of Austin), Ser 2005B, 6.125%, 4–1–45	$	3,150	$	3,330
Cass Cnty Indl Dev Corp, Envirnmt Impvt Rev Bonds, Ser 2009A, 9.500%, 3–1–33		500		600
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010: 0.000%, 1–1–36 (B)		500		125
0.000%, 1–1–40 (B)		500		95
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2011, 6.250%, 1–1–46		3,000		3,070
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013, 5.000%, 1–1–42		3,000		2,485
Dallas and Fort Worth, TX, Dallas/Fort Worth Intl Arpt, Joint Rev Rfdg Bonds, Ser 2012B, 5.000%, 11–1–32		5,000		5,107
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A, 5.000%, 11–1–45		8,000		7,584
Grand Prkwy Trans Corp, First Tier Toll Rev Bonds,Ser 2013A, 5.500%, 4–1–53		10,000		9,984
Hackberry, TX, Combination Spl Assmt and Contract Rev Road Bonds (Hackberry Hidden Cove Pub Impvt Dist No. 2 Proj), Ser 2009A: 8.625%, 9–1–29		125		128
9.000%, 9–1–38		1,250		1,288
Harris Cnty Cultural Edu Fac Fin Corp, Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009, 7.000%, 8–15–28		500		517
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008: 6.000%, 2–15–33		2,000		1,780
6.000%, 2–15–38		250		217
Houston Higher Edu Fin Corp, Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, 6.875%, 5–15–41		3,800		4,180
Houston, TX Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B: 5.000%, 7–1–25		1,000		1,104
5.000%, 7–1–26		2,680		2,919

2013 SEMIANNUAL REPORT 101

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
La Vernia Higher Edu Fin Corp (KIPP, Inc.), Ser 2009A, 6.375%, 8–15–44	$	2,000	$	2,091
La Vernia Higher Edu Fin Corp (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009, 9.000%, 8–15–38		2,520		2,898
Lubbock Hlth Fac Dev Corp, First Mtg Rev and RfdgBonds (Carillon Sr LifeCare Cmnty Proj), Ser 2005A, 6.500%, 7–1–26		1,500		1,537
Lubbock Hlth Fac Dev Corp, First Mtg Rev and Rfdg Bonds (Carillon Sr LifeCare Cmnty Proj), Ser 2005A, 6.625%, 7–1–36		7,000		7,083
Lufkin Hlth Fac Dev Corp, Rev Rfdg and Impvt Bonds (Mem Hlth Sys of East TX), Ser 2007, 5.500%, 2–15–37		6,025		5,904
Lufkin Hlth Fac Dev Corp, Rev Rfdg and Impvt Bonds (Mem Hlth Sys of East TX), Ser 2009, 6.250%, 2–15–37		5,000		5,216
Mission Econ Dev Corp, Solid Waste Disp Rev Bonds(Dallas Clean Enrg McCommas Bluff, LLC Proj), Ser 2011, 6.875%, 12–1–24		2,540		2,600
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C, 0.000%, 9–1–23 (B)		8,500		5,799
Pharr, TX Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A: 6.250%, 8–15–29		350		370
6.500%, 8–15–39		200		211
Red River Hlth Fac Dev Corp, First Mtg Rev Bonds (Eden Home, Inc. Proj), Ser 2012: 7.000%, 12–15–32		6,200		6,014
7.250%, 12–15–42		3,800		3,664
Sanger, TX, Indl Dev Corp, Indl Dev Rev Bonds (TXPellets Proj), Ser 2012B, 8.000%, 7–1–38		5,000		5,016
Tarrant Cnty Cultural Edu Fac Fin Corp, Charter Sch Rev Bonds (Trinity Basin Preparatory Proj), Ser 2009A, 7.750%, 6–1–39		155		165

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (NW Sr Hsng Corp – Edgemere Proj), Ser 2006A: 6.000%, 11–15–26	$	2,035	$	2,049
6.000%, 11–15–36		6,615		6,598
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007: 5.500%, 11–15–22		3,000		3,040
5.625%, 11–15–27		250		248
5.750%, 11–15–37		11,840		11,234
Tarrant Cnty Cultural Edu Fac Fin Corp, Ret Fac Rev Bonds (Mirador Proj), Ser 2010A: 8.000%, 11–15–29		2,500		2,622
8.125%, 11–15–39		5,000		5,220
Travis Cnty Hlth Fac Dev Corp, Ret Fac Rev Bonds (Querencia at Barton Creek Proj), Ser 2005A, 5.100%, 11–15–15		400		411
TX Muni Gas Acquisition and Supply Corp III, Gas Supply Rev Bonds, Ser 2012, 5.000%, 12–15–32		3,000		2,847
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009, 6.875%, 12–31–39		12,975		14,150
TX Private Activity Bond Surface Trans Corp, Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010: 7.500%, 6–30–32		2,000		2,301
7.500%, 6–30–33		2,700		3,097
7.000%, 6–30–40		16,930		18,736
TX Pub Fin Auth Charter Sch Fin Corp, Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2010A, 6.200%, 2–15–40		10,000		10,476	��
TX Pub Fin Auth Charter Sch Fin Corp, Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A, 7.125%, 2–15–40		2,000		2,124
TX Trans Comsn Cent TX Tpk Sys, First Tier Rev Rfdg Bonds, Ser 2012-A, 5.000%, 8–15–41		10,000		9,793

MUNICIPAL BONDS (Continued)	Principal		Value
Texas (Continued)
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011, 8.000%, 8–15–34	$	5,000	$	5,563
				196,994
Utah – 0.5%
Muni Bldg Auth of Uintah Cnty, UT, Lease Rev Bonds, Ser 2008A, 5.300%, 6–1–28		350		369
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010, 6.375%, 7–15–40		2,160		2,174
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010, 6.250%, 7–15–30		1,015		1,034
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B, 7.000%, 7–15–45		2,100		2,185
				5,762
Virgin Islands – 0.1%
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A, 6.625%, 10–1–29		935		1,024
Virginia – 2.3%
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2007A: 6.000%, 6–1–43		3,039		2,505
2.000%, 10–1–48		983		–
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A, 8.000%, 7–1–38		470		550
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C: 7.250%, 7–1–19		740		825
7.500%, 7–1–29		25		28

102 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

MUNICIPAL BONDS (Continued)	Principal		Value
Virginia (Continued)
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds Ser 2011A, 6.875%, 3–1–36	$	4,300	$	4,749
Norfolk Redev and Hsng Auth, First Mtg Rev Bonds (Fort Norfolk Ret Cmnty, Inc. – Harbor’s Edge Proj), Ser 2004A, 6.125%, 1–1–35		1,000		936
Norfolk Redev and Hsng Auth, Multifam Rental Hsng Fac Rev Bonds (1016 Ltd Partnership – Sussex Apt Proj), Ser 1996, 8.000%, 9–1–26		435		433
VA Small Business Fin Auth Sr Lien Rev Bonds (95 Express Lanes LLC Proj), Ser 2012, 5.000%, 7–1–34		4,400		3,958
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco, LLC Proj), Ser 2012: 6.000%, 1–1–37		8,000		8,027
5.500%, 1–1–42		7,500		7,040
				29,051
Washington – 1.1%
Indl Dev Corp of the Port of Seattle, spl Fac Rev Rfdg Bonds (Delta Air Lines, Inc. Proj), Ser 2012, 5.000%, 4–1–30		4,000		3,449
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008, 6.625%, 12–1–21		2,250		2,455
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009: 6.250%, 7–1–24		795		862
7.000%, 7–1–31		1,680		1,828
7.000%, 7–1–39		2,000		2,152

MUNICIPAL BONDS (Continued)	Principal		Value
Washington (Continued)
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008, 7.375%, 3–1–38	$	250	$	298
WA Hsng Fin Comsn, Nonprofit Hsng Rev And Rfdg Rev Bonds (Mirabella Proj), Ser 2012 C, 5.000%, 10–1–17		2,250		2,250
				13,294
West Virginia – 0.3%
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, 6.750%, 10–1–37		4,000		4,240
Wisconsin – 0.9%
Pub Fin Auth Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B, 5.000%, 7–1–42		2,500		2,076
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A: 6.125%, 6–1–35		1,220		1,295
6.125%, 6–1–39		250		264
WI Hlth and Edu Fac Auth, Rev Bonds (Saint John’s Cmnty, Inc.), Ser 2009: 7.250%, 9–15–29		2,180		2,333
7.625%, 9–15–39		5,500		5,915
				11,883
TOTAL MUNICIPAL BONDS – 96.7%			$	1,215,222
(Cost: $1,251,553)

SHORT-TERM SECURITIES	Principal		Value
Commercial Paper – 2.1%
Automatic Data Processing Inc., 0.050%, 10–2–13 (D)	$	3,000	$	3,000
CVS Caremark Corporation, 0.180%, 10–4–13 (D)		14,000		13,999
Diageo Capital plc (GTD by Diageo plc), 0.210%, 10–10–13 (D)		5,000		5,000
Wisconsin Electric Power Co., 0.100%, 10–1–13 (D)		3,172		3,172
				25,171
Master Note – 0.0%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (A)		580		580
TOTAL SHORT-TERM SECURITIES – 2.1%			$	25,751
(Cost: $25,752)
TOTAL INVESTMENT SECURITIES – 98.8%			$	1,240,973
(Cost: $1,277,305)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.2%				15,006
NET ASSETS – 100.0%			$	1,255,979

Notes to Schedule of Investments

* Not shown due to rounding.

(A) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

(B) Zero coupon bond.

(C) Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy.

(D) Rate shown is the yield to maturity at September 30, 2013.

2013 SEMIANNUAL REPORT 103

SCHEDULE OF INVESTMENTS

Ivy Municipal High Income Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Municipal Bonds	$	—	$	1,187,397	$	27,825
Short-Term Securities		—		25,751		—
Total	$	—	$	1,213,148	$	27,825

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

	Municipal Bonds
Beginning Balance 4-1-13	$	97,173
Net realized gain (loss)		(2	)
Net unrealized appreciation (depreciation)		(2,952	)
Purchases		—
Sales		(66,394	)
Amortization/Accretion of premium/discount		—	*
Transfers into Level 3 during the period		—
Transfers out of Level 3 during the period		—
Ending Balance 9-30-13	$	27,825
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-13	($	1,931	)

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. As shown above, transfers in and out of Level 3 represent the values as of the beginning of the reporting period. There were no transfers between Levels 1 and 2 during the period ended September 30, 2013.

Quantitative Information about Level 3 fair value measurements:

	Fair Value at 9-30-13	Valuation Technique(s)	Unobservable Input(s)
Assets
Municipal Bonds	$27,825	Broker	Broker quotes

The following acronyms are used throughout this schedule:

AMBAC = American Municipal Bond Assurance Corp.

AGM = Assured Guaranty Municipal

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

104 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Pacific Opportunities Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	99.7%
Information Technology	29.0%
Financials	26.2%
Consumer Discretionary	13.8%
Industrials	9.1%
Telecommunication Services	7.6%
Consumer Staples	6.5%
Utilities	3.6%
Energy	3.3%
Health Care	0.6%
Real Estate	0.0%
Purchased Options	0.0%
Bonds	0.0%
Corporate Debt Securities	0.0%
Cash and Cash Equivalents	0.3%

Lipper Rankings

Category: Lipper Pacific Ex Japan Funds	Rank	Percentile
1 Year	63/98	64
3 Year	64/71	89
5 Year	29/40	71
10 Year	19/28	66

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

Country Weightings

Pacific Basin	96.7%
China	33.8%
South Korea	20.5%
Taiwan	13.3%
Hong Kong	10.7%
Singapore	7.4%
India	5.8%
Other Pacific Basin	5.2%
North America	3.0%
Cash and Cash Equivalents and Options	0.3%

Top 10 Equity Holdings

Company	Country	Sector	Industry
Galaxy Entertainment Group Limited, ADR	Hong Kong	Consumer Discretionary	Casinos & Gaming
Tencent Holdings Limited	China	Information Technology	Internet Software & Services
China Minsheng Banking Corp., Ltd., H Shares	China	Financials	Diversified Banks
Baidu.com, Inc., ADR	China	Information Technology	Internet Software & Services
Haitong Securities Co., Ltd., H Shares	China	Financials	Investment Banking & Brokerage
Hyundai Motor Company	South Korea	Consumer Discretionary	Automobile Manufacturers
Samsung Electronics Co., Ltd.	South Korea	Information Technology	Semiconductors
DBS Group Holdings Ltd	Singapore	Financials	Diversified Banks
China Overseas Land & Investment Limited	Hong Kong	Financials	Real Estate Development
Industrial and Commercial Bank of China Limited, H Shares	China	Financials	Diversified Banks

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

2013 SEMIANNUAL REPORT 105

SCHEDULE OF INVESTMENTS

Ivy Pacific Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
China – 33.8%
Baidu.com, Inc., ADR (A)		103	$	15,929
Biostime International Holdings Limited		755		5,709
Bona Film Group Limited, ADR (A)		601		3,155
BYD Electronic (International) Company Limited		10,572		4,730
China Communications Services Corporation Limited, H Shares		18,076		10,558
China Foods Limited		11,712		4,213
China Merchants Bank Co., Limited, H Shares		6,085		11,062
China Merchants Holdings (International) Company Limited		2,362		8,588
China Minsheng Banking Corp., Ltd., H Shares		16,700		19,960
China Oilfield Services Limited		2,574		6,452
China Unicom Limited		6,654		10,381
CNOOC Limited		3,348		6,812
Forgame Holdings Limited (A)(B)		625		4,110
Guodian Technology & Environment Group Corporation Limited		20,881		4,227
Haitong Securities Co., Ltd., H Shares		9,994		14,921
HC International, Inc. (A)(B)		4,000		4,704
Huaneng Power International, Inc., H Shares		5,408		5,397
Industrial and Commercial Bank of China Limited, H Shares		19,338		13,489
Ping An Insurance (Group) Company of China, Ltd., A Shares		1,410		8,219
Shimao Property Holdings Limited		2,796		6,430
Tencent Holdings Limited		403		21,137
Youku.com Inc., ADR (A)		152		4,153
				194,336
Hong Kong – 10.7%
AAC Technologies Holdings Inc.		1,976		8,981
China Modern Dairy Holdings Ltd., H Shares (A)		22,464		8,776
China Overseas Land & Investment Limited		4,664		13,741
Galaxy Entertainment Group Limited, ADR		3,423		24,008
SmarTone Telecommunications Holdings Limited		4,329		5,738
				61,244

COMMON STOCKS (Continued)	Shares		Value
India – 5.8%
Bajaj Auto Ltd.		186	$	5,915
HCL Technologies Limited (A)		594		10,307
Indiabulls Real Estate Limited		2,743		2,366
Just Dial Limited (A)(B)		400		5,394
Lupin Limited		265		3,628
Reliance Industries Limited		423		5,551
				33,161
Malaysia – 1.6%
Tenaga Nasional Berhad		3,233		8,958
Philippines – 2.2%
GT Capital Holdings Incorporated		258		4,504
LT Group, Inc.		19,186		7,932
				12,436
Singapore – 7.4%
DBS Group Holdings Ltd		1,054		13,795
Golden Agri-Resources Ltd.		13,067		5,416
Keppel Corporation Limited		1,621		13,463
K-REIT Asia		130		127
Singapore Telecommunications Limited		3,280		9,752
				42,553
South Korea – 20.5%
Daelim Industrial Co., Ltd.		113		10,223
Duksan Hi-Metal Co., LTD. (A)		158		3,195
GLOVIS Co., Ltd.		34		6,697
Hana Financial Group, Inc.		375		12,871
Hyundai Heavy Industries Co., Ltd.		29		7,070
Hyundai Mobis		29		7,744
Hyundai Motor Company		63		14,724
Korea Electric Power Corporation (A)		226		6,326
Naver Corporation		17		8,977
Samsung Electronics Co., Ltd.		11		14,438
Samsung Fire & Marine Insurance Co., Ltd		26		5,975
Samsung SDI Co., Ltd.		55		9,603
SK hynix Inc.		340		9,570
				117,413
Taiwan – 13.3%
Cathay Financial Holding Co., Ltd.		8,682		12,362
Cheng Shin Rubber Industry Co., Ltd.		2,616		6,849
Chinatrust Financial Holding Company, Ltd.		11,539		7,532
Delta Electronics, Inc.		1,318		6,397
MediaTek Incorporation		924		11,422

COMMON STOCKS (Continued)	Shares		Value
Taiwan (Continued)
Novatek Microelectronics Corp.		1,578	$	6,538
Taiwan Mobile Co., Ltd.		1,997		7,092
Taiwan Semiconductor Manufacturing Company Ltd.		2,222		7,553
TPK Holding Co., Ltd.		380		3,451
Zhen Ding Technology Holding Limited		2,864		6,809
				76,005
Thailand – 1.4%
BTS Rail Mass Transit Growth Infrastructure Fund		8,000		2,481
Thai Beverage Public Company Limited		13,180		5,778
				8,259
United States – 3.0%
Cognizant Technology Solutions Corporation, Class A (A)		82		6,754
Samsonite International S.A.		2,667		7,445
WisdomTree India Earnings Fund, ETF		185		2,828
				17,027
TOTAL COMMON STOCKS –99.7%			$	571,392
(Cost: $485,729)
PURCHASED OPTIONS	Number of Contracts (Unrounded)
iShares FTSE China 25 Index Fund, Call $38.00, Expires 11–16–13		1,605		122
TOTAL PURCHASED OPTIONS – 0.0%			$	122
(Cost: $143)

106 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Pacific Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

CORPORATE DEBT SECURITIES	Principal		Value
India – 0.0%
Dr. Reddy’s Laboratories Ltd.,
9.250%, 3–24–14 (C)		INR1,480	$	122
TOTAL CORPORATE DEBT SECURITIES – 0.0%			$	122
(Cost: $–)
SHORT-TERM SECURITIES
Certificate Of Deposit – 0.9%
Toronto-Dominion Bank, 0.110%, 10–17–13	$	5,000		5,000
Commercial Paper – 1.4%
L Air Liquide S.A., 0.200%, 11–22–13 (D)		4,000		3,999
Verizon Communications Inc., 0.210%, 10–21–13 (D)		4,000		3,999
				7,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (E)	$	603	$	603
TOTAL SHORT-TERM SECURITIES – 2.4%			$	13,601
(Cost: $13,602)
TOTAL INVESTMENT SECURITIES – 102.1%			$	585,237
(Cost: $499,474)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.1%)				(12,138	)
NET ASSETS – 100.0%			$	573,099

Notes to Schedule of Investments

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

(B) Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the total value of these securities amounted to $14,208 or 2.5% of net assets.

(C) Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (HKD—Hong Kong Dollar and INR—Indian Rupee).

(D) Rate shown is the yield to maturity at September 30, 2013.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date the variable rate resets.

The following total return swap agreements were outstanding at September 30, 2013:

Counterparty	Notional Amount	Underlying Security	Termination Date		Financing Fee#		Unrealized Depreciation
UBS AG, London	$5,588	China Vanke Company Ltd.		6–17–14		USD LIBOR + 0.700%	$	(471	)

# The Fund pays the financing fee multiplied by the notional amount each month. On the termination date of the swap contracts, the Fund will pay/receive the return of the underlying security.

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Baidu.com, Inc., ADR	N/A	Put		1,026		December 2013	$	90.00	$	339	$	(36	)
	N/A	Call		1,026		December 2013		125.00		495		(3,357	)
ICICI Bank Limited, ADR	N/A	Put		1,265		January 2015		20.00		250		(211	)
	N/A	Put		835		January 2015		28.00		236		(382	)
iShares FTSE China 25 Index Fund	N/A	Put		1,605		November 2013		33.50		104		(41	)
	N/A	Call		1,605		November 2013		41.00		40		(24	)
Tencent Holdings Limited	Morgan Stanley & Co., Inc.	Call		4,030		December 2013		HKD370.00		726		(2,738	)
									$	2,190	$	(6,789	)

2013 SEMIANNUAL REPORT 107

SCHEDULE OF INVESTMENTS

Ivy Pacific Opportunities Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks
Consumer Discretionary	$	78,653	$	—	$	—
Consumer Staples		37,824		—		—
Energy		18,815		—		—
Financials		150,056		—		—
Health Care		3,628		—		—
Industrials		52,748		—		—
Information Technology		165,340		—		—
Real Estate		127		—		—
Telecommunication Services		43,520		—		—
Utilities		20,681		—		—
Total Common Stocks	$	571,392	$	—	$	—
Purchased Options		122		—		—
Corporate Debt Securities		—		122		—
Short-Term Securities		—		13,601		—
Total	$	571,514	$	13,723	$	—
Liabilities
Written Options	$	4,051	$	2,738	$	—
Swap Agreements	$	—	$	471	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

OTC = Over the Counter

Market Sector Diversification
(as a % of net assets)
Information Technology	29.0%
Financials	26.2%
Consumer Discretionary	13.8%
Industrials	9.1%
Telecommunication Services	7.6%

Consumer Staples	6.5%
Utilities	3.6%
Energy	3.3%
Health Care	0.6%
Real Estate	0.0%
Other+	0.3%

+Includes options, cash and cash equivalents and other assets and liabilities

See Accompanying Notes to Financial Statements.

108 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Small Cap Growth Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	94.0%
Information Technology	28.1%
Industrials	22.7%
Consumer Discretionary	15.1%
Financials	10.6%
Health Care	9.3%
Consumer Staples	4.8%
Energy	3.2%
Materials	0.2%
Cash and Cash Equivalents	6.0%

Lipper Rankings

Category: Lipper Small-Cap Growth Funds	Rank	Percentile
1 Year	360/502	72
3 Year	348/446	78
5 Year	63/396	16
10 Year	39/261	15

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

Top 10 Equity Holdings

Company	Sector
Ultimate Software Group, Inc. (The)	Information Technology
SVB Financial Group	Financials
Westinghouse Air Brake Technologies Corporation	Industrials
Portfolio Recovery Associates, Inc.	Industrials
Affiliated Managers Group, Inc.	Financials
Demandware, Inc.	Information Technology
Incyte Corporation	Health Care
Jack Henry & Associates, Inc.	Information Technology
Lithia Motors, Inc.	Consumer Discretionary
Watsco, Inc.	Industrials

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

2013 SEMIANNUAL REPORT 109

SCHEDULE OF INVESTMENTS

Ivy Small Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 0.5%
KEYW Holding Corporation (A)		416	$	5,591
Air Freight & Logistics – 1.5%
Hub Group, Inc. (A)		426		16,700
Apparel Retail – 2.5%
AnnTaylor Stores Corporation (A)		212		7,690
Stage Stores, Inc.		404		7,763
Zumiez Inc. (A)		447		12,318
				27,771
Apparel, Accessories & Luxury Goods – 0.9%
Fifth & Pacific Companies, Inc. (A)		412		10,356
Application Software – 6.6%
Qlik Technologies Inc. (A)		493		16,881
SS&C Technologies Holdings, Inc. (A)		329		12,550
Tyler Technologies, Inc. (A)		109		9,534
Ultimate Software Group, Inc. (The) (A)		224		32,967
				71,932
Asset Management & Custody Banks – 3.8%
Affiliated Managers Group, Inc. (A)		149		27,140
Financial Engines, Inc.		151		8,974
WisdomTree Investment, Inc. (A)		504		5,847
				41,961
Automotive Retail – 3.6%
Asbury Automotive Group, Inc. (A)		320		16,997
Lithia Motors, Inc.		295		21,545
				38,542
Biotechnology – 4.6%
Cepheid (A)		479		18,694
Incyte Corporation (A)		594		22,661
Ironwood Pharmaceuticals, Inc., Class A (A)		460		5,453
KYTHERA Biopharmaceuticals, Inc. (A)		77		3,533
				50,341
Brewers – 1.3%
Boston Beer Company, Inc. (The), Class A (A)		56		13,725
Communications Equipment – 3.9%
Aruba Networks, Inc. (A)		265		4,411
Ciena Corporation (A)		400		9,985
Finisar Corporation (A)		371		8,387
Ixia (A)		570		8,932
JDS Uniphase Corporation (A)		712		10,473
				42,188

COMMON STOCKS (Continued)	Shares		Value
Construction & Engineering – 1.6%
Primoris Services Corporation		670	$	17,073
Construction & Farm Machinery & Heavy Trucks – 3.6%
Wabash National Corporation (A)		991		11,556
Westinghouse Air Brake Technologies Corporation		454		28,512
				40,068
Consumer Finance – 1.5%
First Cash Financial Services, Inc. (A)		277		16,071
Data Processing & Outsourced Services –2.0%
Jack Henry & Associates, Inc.		418		21,547
Distributors – 1.3%
Pool Corporation		261		14,639
Diversified Support Services – 2.6%
Portfolio Recovery Associates, Inc. (A)		470		28,176
Education Services – 0.2%
Bright Horizons Family Solutions Inc. (A)		74		2,655
Electrical Components & Equipment – 1.1%
II-VI Incorporated (A)		431		8,116
Powell Industries, Inc. (A)		59		3,585
				11,701
Electronic Equipment & Instruments – 0.5%
OSI Systems, Inc. (A)		75		5,566
Electronic Manufacturing Services – 1.1%
IPG Photonics Corporation		216		12,174
Environmental & Facilities Services – 2.6%
Team, Inc. (A)		384		15,260
Waste Connections, Inc.		288		13,096
				28,356
Food Distributors – 1.2%
United Natural Foods, Inc. (A)		192		12,926
Health Care Equipment – 3.8%
DexCom, Inc. (A)		607		17,136
Heartware International, Inc. (A)		192		14,056
Thoratec Corporation (A)		184		6,850
Volcano Corporation (A)		156		3,726
				41,768
Health Care Supplies – 0.9%
Endologix, Inc. (A)		588		9,483

COMMON STOCKS (Continued)	Shares		Value
Homebuilding – 0.6%
Taylor Morrison Home Corporation, Class A (A)		305	$	6,901
Human Resource & Employment Services –1.4%
Kforce Inc.		583		10,305
WageWorks, Inc. (A)		94		4,747
				15,052
Industrial Machinery – 0.5%
Graham Corporation		156		5,647
Internet Software & Services – 3.2%
Benefitfocus, Inc. (A)		32		1,578
ChannelAdvisor Corporation (A)		84		3,060
Demandware, Inc. (A)		523		24,217
Rocket Fuel Inc. (A)		57		3,044
YuMe, Inc. (A)		254		2,691
				34,590
IT Consulting & Other Services – 2.4%
EPAM Systems, Inc. (A)		389		13,423
Luxoft Holding, Inc., Class A (A)		137		3,634
ServiceSource International, LLC (A)		726		8,769
				25,826
Leisure Facilities – 1.9%
Vail Resorts, Inc.		302		20,960
Office Services & Supplies – 1.5%
HNI Corporation		194		7,023
United Stationers Inc.		215		9,365
				16,388
Oil & Gas Equipment & Services – 2.4%
Dril-Quip, Inc. (A)		100		11,521
Matrix Service Company (A)		764		14,998
				26,519
Oil & Gas Exploration & Production – 0.8%
Athlon Energy Inc. (A)		92		3,002
Bonanza Creek Energy, Inc. (A)		124		5,991
				8,993
Packaged Foods & Meats – 2.3%
B&G Foods, Inc.		305		10,524
Hain Celestial Group, Inc. (The) (A)		54		4,164
Lance, Inc.		399		11,522
				26,210
Regional Banks – 5.3%
Bank of the Ozarks, Inc.		390		18,702
Signature Bank (A)		115		10,534
SVB Financial Group (A)		336		29,046
				58,282

110 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Small Cap Growth Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS (Continued)	Shares		Value
Restaurants – 3.2%
Brinker International, Inc.		251	$	10,185
Chuy’s Holdings, Inc. (A)		364		13,078
Panera Bread Company, Class A (A)		16		2,600
Sonic Corp. (A)		477		8,469
				34,332
Security & Alarm Services – 0.1%
MiX Telematics Limited ADR (A)		39		584
Semiconductor Equipment – 1.1%
Rubicon Technology, Inc. (A)		655		7,937
Teradyne, Inc. (A)		276		4,556
				12,493
Semiconductors – 4.6%
Atmel Corporation (A)		1,041		7,741
Diodes Incorporated (A)		364		8,920
Microsemi Corporation (A)		385		9,346
Power Integrations, Inc.		292		15,796
Semtech Corporation (A)		295		8,853
				50,656
Specialty Stores – 0.9%
Cabela’s Incorporated, Class A (A)		148		9,335
Steel – 0.2%
Synalloy Corporation		111		1,810
Systems Software – 2.7%
Cyan, Inc. (A)		282		2,831
Infolox Inc. (A)		381		15,913
MICROS Systems, Inc. (A)		217		10,837
				29,581

COMMON STOCKS (Continued)	Shares		Value
Trading Companies & Distributors – 3.8%
Beacon Roofing Supply, Inc. (A)		267		9,841
Rush Enterprises, Inc. (A)		424		11,251
Watsco, Inc.		224		21,106
				42,198
Trucking – 1.9%
Landstar System, Inc.		376	$	21,060
TOTAL COMMON STOCKS – 94.0%			$	1,028,727
(Cost: $700,336)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 4.9%
Becton Dickinson & Co., 0.140%, 10–10–13 (B)	$	4,000		4,000
Bemis Company, Inc., 0.240%, 10–3–13 (B)		4,193		4,193
BHP Billiton Finance (USA) Limited (GTD by BHP Billiton Limited), 0.190%, 11–20–13 (B)		4,000		3,999
Diageo Capital plc (GTD by Diageo plc), 0.180%, 10–15–13 (B)		5,000		5,000
Exxon Mobil Corporation, 0.060%, 10–10–13 (B)		7,000		6,999
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), 0.160%, 10–7–13 (B)		4,000		4,000

SHORT-TERM SECURITIES (Continued)		Principal		Value
Commercial Paper (Continued)
PACCAR Financial Corp. (GTD by PACCAR Inc.):
0.050% 10–1–13 (B)	$	6,000	$	6,000
0.060%, 10–9–13 (B)		10,000		9,999
St. Jude Medical, Inc., 0.150%, 10–15–13 (B)		5,000		5,000
Virginia Electric and Power Company, 0.260%, 10–16–13 (B)		4,000		4,000
				53,190
Master Note – 0.1%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)		1,602		1,602
TOTAL SHORT-TERM SECURITIES – 5.0%			$	54,792
(Cost: $54,793)
TOTAL INVESTMENT SECURITIES – 99.0%			$	1,083,519
(Cost: $755,129)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.0%				11,272
NET ASSETS – 100.0%			$	1,094,791

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	1,028,727	$	—	$	—
Short-Term Securities		—		54,792		—
Total	$	1,028,727	$	54,792	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

GTD = Guaranteed

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 111

PORTFOLIO HIGHLIGHTS

Ivy Small Cap Value Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	90.6%
Consumer Discretionary	23.4%
Financials	21.8%
Industrials	12.8%
Energy	10.1%
Information Technology	7.5%
Materials	6.7%
Health Care	5.2%
Utilities	2.7%
Consumer Staples	0.4%
Cash and Cash Equivalents	9.4%

Lipper Rankings

Category: Lipper Small-Cap Value Funds	Rank	Percentile
1 Year	231/302	77
3 Year	212/243	87
5 Year	112/201	56
10 Year	89/116	77

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

Top 10 Equity Holdings

Company	Sector
Nexstar Broadcasting Group, Inc.	Consumer Discretionary
Sinclair Broadcast Group, Inc.	Consumer Discretionary
Foster Wheeler Ltd.	Industrials
Dana Holding Corporation	Consumer Discretionary
Argo Group International Holdings, Ltd.	Financials
HealthSouth Corporation	Health Care
Teradyne, Inc.	Information Technology
First Horizon National Corporation	Financials
Endurance Specialty Holdings Ltd.	Financials
Visteon Corporation	Consumer Discretionary

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

112 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Small Cap Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 1.5%
Triumph Group, Inc.		61	$	4,255
Apparel Retail – 3.4%
AnnTaylor Stores Corporation (A)		86		3,100
Express, Inc. (A)		102		2,399
Stage Stores, Inc.		237		4,553
				10,052
Apparel, Accessories & Luxury Goods – 0.7%
Jones Apparel Group, Inc.		143		2,143
Application Software – 1.1%
Synchronoss Technologies, Inc. (A)		84		3,197
Auto Parts & Equipment – 4.5%
Dana Holding Corporation		312		7,123
Visteon Corporation (A)		79		5,991
				13,114
Broadcasting – 6.1%
Entercom Communications Corp. (A)		292		2,564
Nexstar Broadcasting Group, Inc.		171		7,611
Sinclair Broadcast Group, Inc.		225		7,542
				17,717
Casinos & Gaming – 1.8%
Pinnacle Entertainment, Inc. (A)		206		5,158
Construction & Engineering – 2.5%
Foster Wheeler Ltd. (A)		275		7,246
Construction & Farm Machinery & Heavy Trucks – 3.8%
Manitowoc Company, Inc. (The)		257		5,035
Terex Corporation (A)		150		5,023
Titan International, Inc.		70		1,020
				11,078
Data Processing & Outsourced Services – 0.7%
CoreLogic, Inc. (A)		76		2,045
Electric Utilities – 1.2%
Great Plains Energy Incorporated		159		3,519
Forest Products – 1.1%
Boise Cascade Company (A)		116		3,129
Gas Utilities – 1.5%
Southwest Gas Corporation		89		4,438

COMMON STOCKS (Continued)	Shares		Value
Health Care Facilities – 5.2%
Community Health Systems, Inc.		62	$	2,552
HealthSouth Corporation		192		6,627
LifePoint Hospitals, Inc. (A)		127		5,941
				15,120
Homebuilding – 1.8%
M.D.C. Holdings, Inc.		91		2,737
Tri Pointe Homes, LLC (A)		172		2,522
				5,259
Metal & Glass Containers – 1.0%
Owens-Illinois, Inc. (A)		95		2,849
Movies & Entertainment – 3.5%
Carmike Cinemas, Inc. (A)		231		5,109
Cinemark Holdings, Inc.		159		5,031
				10,140
Office REITs – 2.9%
Corporate Office Properties Trust		166		3,839
Lexington Corporation Properties Trust		422		4,735
				8,574
Oil & Gas Equipment & Services – 5.6%
Basic Energy Services, Inc. (A)		308		3,896
GulfMark Offshore, Inc.		88		4,452
Key Energy Services, Inc. (A)		513		3,738
McDermott International, Inc. (A)		570		4,232
				16,318
Oil & Gas Exploration & Production – 1.0%
Petroleum Development Corporation (A)		48		2,846
Oil & Gas Storage & Transportation – 3.5%
Atlas Energy, L.P.		87		4,775
Atlas Pipeline Partners, L.P.		140		5,432
Phillips 66 Partners LP (A)		5		163
				10,370
Personal Products – 0.4%
Inter Parfums, Inc.		40		1,197
Property & Casualty Insurance – 2.4%
Argo Group International Holdings, Ltd.		165		7,071
Publishing – 1.6%
E. W. Scripps Company (The) (A)		91		1,667
Valassis Communications, Inc.		104		3,010
				4,677

COMMON STOCKS (Continued)	Shares		Value
Real Estate Operating Companies – 1.5%
Forest City Enterprises, Inc., Class A (A)		229	$	4,339
Regional Banks – 7.3%
Bank of Marin Bancorp		42		1,756
First Horizon National Corporation		583		6,405
First Niagara Financial Group, Inc.		355		3,684
Synovus Financial Corp.		1,667		5,500
Webster Financial Corporation		46		1,173
Zions Bancorporation		106		2,903
				21,421
Reinsurance – 3.8%
Endurance Specialty Holdings Ltd.		113		6,076
Reinsurance Group of America, Incorporated		75		5,051
				11,127
Semiconductor Equipment – 2.2%
Teradyne, Inc. (A)		397		6,555
Semiconductors – 2.4%
Freescale Semiconductor, Inc. (A)		263		4,384
Spansion Inc. (A)		245		2,471
				6,855
Specialized REITs – 1.1%
Strategic Hotels & Resorts, Inc. (A)		357		3,096
Specialty Chemicals – 2.9%
Cytec Industries Inc.		58		4,727
Kraton Performance Polymers, Inc. (A)		195		3,822
				8,549
Steel – 1.7%
SunCoke Energy Partners, L.P.		213		5,069
Technology Distributors – 1.1%
Insight Enterprises, Inc. (A)		173		3,264
Thrifts & Mortgage Finance – 1.5%
Capitol Federal Financial		352		4,374
Trucking – 5.0%
Con-way Inc.		106		4,563
Marten Transport, Ltd.		267		4,574
Saia, Inc. (A)		181		5,653
				14,790
TOTAL COMMON STOCKS – 89.3%			$	260,951
(Cost: $206,967)

2013 SEMIANNUAL REPORT 113

SCHEDULE OF INVESTMENTS

Ivy Small Cap Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

INVESTMENT FUNDS	Shares		Value
Asset Management & Custody Banks – 1.3%
THL Credit, Inc.		245	$	3,827
TOTAL INVESTMENT FUNDS – 1.3%			$	3,827
(Cost: $3,150)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 7.5%
Anheuser-Busch InBev Worldwide Inc. (GTD by AB INBEV/BBR/COB), 0.200%, 11–12–13 (B)	$	5,000		4,999
CVS Caremark Corporation, 0.180%, 10–4–13 (B)		2,000		2,000
L Air Liquide S.A., 0.130%, 10–11–13 (B)		2,000		2,000
Straight-A Funding, LLC (GTD by Federal Financing Bank), 0.070%, 10–7–13 (B)		10,000		9,999
Verizon Communications Inc., 0.210%, 10–21–13 (B)		3,000		3,000
				21,998

SHORT-TERM SECURITIES (Continued)	Principal		Value
Master Note – 1.3%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (C)	$	3,931	$	3,931
Municipal Obligations – Taxable – 0.9%
MI Strategic Fund, Var Rate Demand Ltd Oblig Rev Bonds (Air Products and Chemicals, Inc. Proj), Ser 2007 (GTD by Bank of New York (The)), 0.060%, 10–1–13 (C)		2,493		2,493
TOTAL SHORT-TERM SECURITIES – 9.7%			$	28,422
(Cost: $28,422)
TOTAL INVESTMENT SECURITIES – 100.3%			$	293,200
(Cost: $238,539)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.3%)				(737	)
NET ASSETS – 100.0%			$	292,463

Notes to Schedule of Investments

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

(B) Rate shown is the yield to maturity at September 30, 2013.

(C) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	260,951	$	—	$	—
Investment Funds		3,827		—		—
Short-Term Securities		—		28,422		—
Total	$	264,778	$	28,422	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

GTD = Guaranteed

REIT = Real Estate Investment Trust

See Accompanying Notes to Financial Statements.

114 SEMIANNUAL REPORT 2013

PORTFOLIO HIGHLIGHTS

Ivy Tax-Managed Equity Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	98.9%
Consumer Discretionary	28.7%
Information Technology	22.9%
Industrials	13.5%
Health Care	12.5%
Consumer Staples	9.2%
Energy	5.5%
Materials	3.9%
Telecommunication Services	2.7%
Cash and Cash Equivalents	1.1%

Lipper Rankings

Category: Lipper Large-Cap Growth Funds	Rank	Percentile
1 Year	310/705	44
3 Year	380/606	63

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

Top 10 Equity Holdings

Company	Sector
Apple Inc.	Information Technology
Gilead Sciences, Inc.	Health Care
Las Vegas Sands, Inc.	Consumer Discretionary
MasterCard Incorporated, Class A	Information Technology
CBS Corporation, Class B	Consumer Discretionary
Visa Inc., Class A	Information Technology
NIKE, Inc., Class B	Consumer Discretionary
Google Inc., Class A	Information Technology
Monsanto Company	Materials
Schlumberger Limited	Energy

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

2013 SEMIANNUAL REPORT 115

SCHEDULE OF INVESTMENTS

Ivy Tax-Managed Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Aerospace & Defense – 3.3%
Boeing Company (The)		5	$	592
Precision Castparts Corp.		3		607
				1,199
Automotive Retail – 1.1%
AutoZone, Inc. (A)		1		393
Biotechnology – 6.0%
Biogen Idec Inc. (A)		3		795
Gilead Sciences, Inc. (A)		22		1,412
				2,207
Brewers – 1.9%
Anheuser-Busch InBev S.A., ADR		7		686
Broadcasting – 4.4%
CBS Corporation, Class B		23		1,272
Discovery Holding Company, Class A (A)		4		343
				1,615
Cable & Satellite – 4.0%
Comcast Corporation, Class A		16		704
Time Warner Cable Inc.		7		748
				1,452
Casinos & Gaming – 5.9%
Las Vegas Sands, Inc.		21		1,374
Wynn Resorts, Limited		5		831
				2,205
Communications Equipment – 3.4%
Cisco Systems, Inc.		29		677
F5 Networks, Inc. (A)		6		549
				1,226
Computer Hardware – 4.0%
Apple Inc.		3		1,473
Construction & Farm Machinery & Heavy Trucks – 1.1%
Caterpillar Inc.		5		384
Consumer Electronics – 1.4%
Harman International Industries, Incorporated		8		510
Data Processing & Outsourced Services – 7.0%
MasterCard Incorporated, Class A		2		1,359
Visa Inc., Class A		6		1,219
				2,578
Diversified Chemicals – 1.4%
PPG Industries, Inc.		3		518
Fertilizers & Agricultural Chemicals – 2.5%
Monsanto Company		9		893
Food Retail – 1.7%
Casey’s General Stores, Inc.		9		625

COMMON STOCKS (Continued)	Shares		Value
Footwear – 2.7%
NIKE, Inc., Class B		13	$	978
Health Care Facilities – 4.1%
HCA Holdings, Inc.		19		825
Universal Health Services, Inc., Class B		9		660
				1,485
Hotels, Resorts & Cruise Lines – 0.9%
Starwood Hotels & Resorts Worldwide, Inc.		5		334
Hypermarkets & Super Centers – 1.3%
Costco Wholesale Corporation		4		467
Industrial Machinery – 3.6%
Pall Corporation		8		582
Pentair, Inc.		11		747
				1,329
Internet Retail – 3.9%
Amazon.com, Inc. (A)		3		812
priceline.com Incorporated (A)		1		607
				1,419
Internet Software & Services – 4.0%
Facebook, Inc., Class A (A)		11		536
Google Inc., Class A (A)		1		963
				1,499
Movies & Entertainment – 1.5%
News Corporation Limited, Class A		16		546
Oil & Gas Equipment & Services – 5.5%
Halliburton Company		12		562
National Oilwell Varco, Inc.		7		555
Schlumberger Limited		10		894
				2,011
Packaged Foods & Meats – 0.8%
Mead Johnson Nutrition Company		4		285
Personal Products – 1.6%
Estee Lauder Companies, Inc. (The), Class A		8		573
Pharmaceuticals – 2.4%
Allergan, Inc.		4		372
Bristol-Myers Squibb Company		11		490
				862
Railroads – 5.5%
Canadian Pacific Railway Limited		5		665
Kansas City Southern		7		755
Union Pacific Corporation		4		586
				2,006

COMMON STOCKS (Continued)	Shares		Value
Restaurants – 2.9%
Starbucks Corporation		10	$	757
YUM! Brands, Inc.		4		317
				1,074
Semiconductor Equipment – 0.8%
ASML Holding N.V., NY Registry Shares		3		277
Semiconductors – 1.3%
Altera Corporation		13		479
Systems Software – 2.4%
Oracle Corporation		11		366
VMware, Inc., Class A (A)		6		495
				861
Tobacco – 1.9%
Philip Morris International Inc.		8		735
Wireless Telecommunication Service – 2.7%
Crown Castle International Corp. (A)		5		375
SBA Communications Corporation (A)		7		596
				971
TOTAL COMMON STOCKS – 98.9%			$	36,155
(Cost: $28,206)
SHORT-TERM SECURITIES	Principal
Master Note – 2.7%
Toyota Motor Credit Corporation, 0.100%, 10–2–13 (B)	$	983		983
TOTAL SHORT-TERM SECURITIES – 2.7%			$	983
(Cost: $983)
TOTAL INVESTMENT SECURITIES – 101.6%			$	37,138
(Cost: $29,189)
LIABILITIES, NET OF CASH AND OTHER ASSETS – (1.6%)				(602	)
NET ASSETS – 100.0%			$	36,536

116 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Tax-Managed Equity Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

Notes to Schedule of Investments

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

(B) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	36,155	$	—	$	—
Short-Term Securities		—		983		—
Total	$	36,155	$	983	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronym is used throughout this schedule:

ADR = American Depositary Receipts

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 117

PORTFOLIO HIGHLIGHTS

Ivy Value Fund ALL DATA IS AS OF SEPTEMBER 30, 2013 (UNAUDITED)

Asset Allocation

Stocks	94.7%
Financials	25.3%
Energy	22.1%
Health Care	18.0%
Consumer Discretionary	12.2%
Information Technology	8.7%
Materials	3.5%
Consumer Staples	2.8%
Industrials	2.1%
Cash and Cash Equivalents	5.3%

Lipper Rankings

Category: Lipper Large-Cap Value Funds	Rank	Percentile
1 Year	87/471	19
3 Year	233/417	56
5 Year	62/363	18
10 Year	96/233	42

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

Top 10 Equity Holdings

Company	Sector
Citigroup Inc.	Financials
JPMorgan Chase & Co.	Financials
Xerox Corporation	Information Technology
Time Warner Cable Inc.	Consumer Discretionary
ACE Limited	Financials
Atlas Pipeline Partners, L.P.	Energy
Dow Chemical Company (The)	Materials
Target Corporation	Consumer Discretionary
Occidental Petroleum Corporation	Energy
Capital One Financial Corporation	Financials

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

118 SEMIANNUAL REPORT 2013

SCHEDULE OF INVESTMENTS

Ivy Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

COMMON STOCKS	Shares		Value
Advertising – 0.7%
Omnicom Group Inc. (A)		25	$	1,599
Biotechnology – 2.1%
Amgen Inc.		41		4,590
Cable & Satellite – 5.4%
Comcast Corporation, Class A		101		4,556
Time Warner Cable Inc.		64		7,153
				11,709
Communications Equipment – 0.5%
Nokia Corporation, Series A, ADR		179		1,162
Consumer Finance – 2.9%
Capital One Financial Corporation		93		6,407
Department Stores – 1.6%
Macy’s Inc.		84		3,622
Diversified Chemicals – 3.2%
Dow Chemical Company (The) (B)		180		6,912
Drug Retail – 2.6%
CVS Caremark Corporation		100		5,658
General Merchandise Stores – 3.0%
Target Corporation		104		6,660
Health Care Distributors – 2.0%
McKesson Corporation		35		4,465
Health Care Facilities – 2.7%
HCA Holdings, Inc.		140		6,002
Home Improvement Retail – 1.5%
Lowe’s Companies, Inc.		70		3,337
Industrial Machinery – 2.1%
Parker Hannifin Corporation		43		4,697
Integrated Oil & Gas – 2.9%
Occidental Petroleum Corporation		69		6,417
Investment Banking & Brokerage – 2.7%
Goldman Sachs Group, Inc. (The)		37		5,854

COMMON STOCKS (Continued)	Shares		Value
Life & Health Insurance – 2.4%
MetLife, Inc.		111	$	5,207
Managed Health Care – 7.6%
Aetna Inc.		96		6,171
UnitedHealth Group Incorporated		83		5,915
WellPoint, Inc.		54		4,532
				16,618
Office Electronics – 4.2%
Xerox Corporation		890		9,154
Oil & Gas Exploration & Production – 0.5%
Berry Petroleum Company		26		1,113
Oil & Gas Refining & Marketing – 4.5%
Marathon Petroleum Corporation		80		5,168
Phillips 66		82		4,759
				9,927
Oil & Gas Storage & Transportation – 14.2%
Access Midstream Partners, L.P.		103		4,995
Atlas Energy, L.P.		101		5,490
Atlas Pipeline Partners, L.P.		178		6,923
Energy Transfer Equity, L.P.		49		3,190
MarkWest Energy Partners, L.P.		67		4,825
Phillips 66 Partners LP (A)(B)		7		221
Regency Energy Partners LP		194		5,557
				31,201
Other Diversified Financial Services – 8.8%
Citigroup Inc.		201		9,730
JPMorgan Chase & Co.		188		9,697
				19,427
Pharmaceuticals – 3.6%
Shire Pharmaceuticals Group plc, ADR (C)		16		1,894
Teva Pharmaceutical Industries Limited, ADR		160		6,056
				7,950
Property & Casualty Insurance – 3.2%
ACE Limited		76		7,064
Regional Banks – 1.4%
PNC Financial Services Group, Inc. (The)		41		2,985

COMMON STOCKS (Continued)	Shares		Value
Reinsurance – 3.9%
Reinsurance Group of America, Incorporated		65	$	4,361
RenaissanceRe Holdings Ltd.		46		4,182
				8,543
Semiconductor Equipment – 2.1%
Lam Research Corporation (A)		92		4,692
Soft Drinks – 0.2%
Coca-Cola Enterprises Inc.		14		543
Specialty Chemicals – 0.3%
LyondellBasell Industries N.V., Class A		10		710
Systems Software – 1.9%
Oracle Corporation		126		4,193
TOTAL COMMON STOCKS – 94.7%			$	208,418
(Cost: $162,417)
SHORT-TERM SECURITIES	Principal
Commercial Paper – 2.2%
CVS Caremark Corporation, 0.180%, 10-4-13 (D)	$	2,000		2,000
McCormick & Co. Inc., 0.160%, 10-1-13 (D)		2,810		2,810
				4,810
Master Note – 2.9%
Toyota Motor Credit Corporation, 0.100%, 10-2-13 (E)		6,382		6,382
TOTAL SHORT-TERM SECURITIES – 5.1%			$	11,192
(Cost: $11,192)
TOTAL INVESTMENT SECURITIES – 99.8%			$	219,610
(Cost: $173,609)
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2%				457
NET ASSETS – 100.0%			$	220,067

Notes to Schedule of Investments

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

(B) All or a portion of the security position is held in collateralized accounts to cover potential obligations with respect to outstanding written options.

(C) All or a portion of the security position is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements.

(D) Rate shown is the yield to maturity at September 30, 2013.

(E) Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2013. Date shown represents the date that the variable rate resets.

2013 SEMIANNUAL REPORT 119

SCHEDULE OF INVESTMENTS

Ivy Value Fund (in thousands) SEPTEMBER 30, 2013 (UNAUDITED)

The following written options were outstanding at September 30, 2013 (contracts and exercise prices unrounded):

Underlying Security	Counterparty, if OTC	Type	Number of Contracts		Expiration Month		Exercise Price		Premium Received		Value
Atlas Pipeline Partners, L.P.	Deutsche Bank AG	Put		208		November 2013	$	35.00	$	19	$	(8	)
Dow Chemical Company (The)	N/A	Call		163		October 2013		41.00		9		(2	)
HollyFrontier Corp	N/A	Put		110		December 2013		39.00		20		(15	)
Phillips 66 Partners LP	N/A	Call		72		October 2013		35.00		2		(1	)
Shire PLC	N/A	Put		83		October 2013		90.00		11		(1	)
	Barclays Bank plc	Call		158		October 2013		120.00		48		(47	)
Teva Pharmaceutical Industries Limited, ADR	N/A	Put		130		December 2013		37.50		15		(17	)
									$	124	$	(91	)

The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2013. See Note 3 to the Financial Statements for further information regarding fair value measurement.

	Level 1		Level 2		Level 3
Assets
Investments in Securities
Common Stocks	$	208,418	$	—	$	—
Short-Term Securities		—		11,192		—
Total	$	208,418	$	11,192	$	—
Liabilities
Written Options	$	36	$	55	$	—

As of September 30, 2013, there were no transfers between Level 1 and 2 during the period.

The following acronyms are used throughout this schedule:

ADR = American Depositary Receipts

OTC = Over the Counter

See Accompanying Notes to Financial Statements.

120 SEMIANNUAL REPORT 2013

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Bond Fund			Ivy Core Equity Fund		Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy European Opportunities Fund			Ivy Global Bond Fund			Ivy Global Equity Income Fund
ASSETS
Investments in unaffiliated securities at value+	$	583,099		$	702,142	$	310,125		$	346,277		$	208,178		$	273,198		$	149,773
Investments at Value		583,099			702,142		310,125			346,277			208,178			273,198			149,773
Cash		10			1		333			1			1			1			1
Cash denominated in foreign currencies at value+		—			—		—			—			—			—			—
Restricted cash+		—			—		—			—			—			—			10
Investment securities sold receivable		1,932			5,113		1,485			3,289			—			65			2,803
Dividends and interest receivable		4,329			891		886			665			756			3,598			744
Capital shares sold receivable		994			2,576		997			584			464			850			421
Receivable from affiliates		5			221		1			7			—			305			119
Unrealized appreciation on forward foreign currency contracts		—			—		78			—			—			—			128
Variation margin receivable		12			—		—			—			—			—			—
Prepaid and other assets		58			60		47			55			43			42			50
Total Assets		590,439			711,004		313,952			350,878			209,442			278,059			154,049
LIABILITIES
Investment securities purchased payable		9,686			5,494		441			—			—			1,200			704
Capital shares redeemed payable		1,654			761		384			636			700			411			88
Distributions payable		42			—		—			—			—			—			—
Trustees and Chief Compliance Officer fees payable		62			89		103			23			65			6			—	*
Distribution and service fees payable		5			7		3			4			1			2			1
Shareholder servicing fees payable		161			155		137			105			104			90			38
Investment management fee payable		8			13		8			7			5			5			3
Accounting services fee payable		14			15		9			9			8			8			6
Unrealized depreciation on forward foreign currency contracts		—			—		576			—			—			39			252
Variation margin payable		8			—		—			—			—			—			—
Other liabilities		57			17		15			16			22			12			22
Total Liabilities		11,697			6,551		1,676			800			905			1,773			1,114
Total Net Assets	$	578,742		$	704,453	$	312,276		$	350,078		$	208,537		$	276,286		$	152,935
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	610,766		$	522,311	$	290,359		$	254,081		$	325,697		$	279,087		$	139,215
Undistributed (distributions in excess of) net investment income		(1,119	)		951		(32	)		1,245			1,054			770			559
Accumulated net realized gain (loss)		(25,527	)		38,076		(32,253	)		(1,326	)		(176,390	)		(1,996	)		803
Net unrealized appreciation (depreciation)		(5,378	)		143,115		54,202			96,078			58,176			(1,575	)		12,358
Total Net Assets	$	578,742		$	704,453	$	312,276		$	350,078		$	208,537		$	276,286		$	152,935
CAPITAL SHARES OUTSTANDING:
Class A		51,613			30,160		15,651			14,166			5,846			17,446			10,268
Class B		746			839		335			673			101			630			133
Class C		2,590			10,944		1,450			2,365			371			3,909			415
Class E		386			407		58			219			3			N/A			N/A
Class I		451			6,790		352			902			1,376			5,112			1,030
Class R		24			23		19			16			10			25			22
Class Y		224			3,564		659			591			67			508			304
NET ASSET VALUE PER SHARE:
Class A		$10.33			$13.45		$16.93			$18.52			$26.86			$10.00			$12.56
Class B		$10.33			$11.88		$15.84			$18.26			$25.04			$9.99			$12.56
Class C		$10.33			$12.16		$16.09			$18.34			$25.51			$10.00			$12.56
Class E		$10.33			$13.41		$17.05			$18.47			$27.08			N/A			N/A
Class I		$10.33			$14.58		$17.32			$18.57			$27.13			$10.00			$12.57
Class R		$10.33			$13.41		$16.92			$18.50			$26.87			$9.98			$12.57
Class Y		$10.33			$14.27		$17.16			$18.55			$27.09			$10.00			$12.57
+COST
Investments in unaffiliated securities at cost	$	588,216		$	559,027	$	255,406		$	250,199		$	150,003		$	274,729		$	137,297
Cash denominated in foreign currencies at cost		—			—		—			—			—			—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 121

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Global Income Allocation Fund			Ivy High Income Fund		Ivy International Core Equity Fund			Ivy International Growth Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund			Ivy Managed European/Pacific Fund
ASSETS
Investments in unaffiliated securities at value+	$	460,982		$	8,888,955	$	1,782,596		$	353,879		$	1,401,775		$	1,583,048		$	293
Investments in affiliated securities at value+		—			35,088		—			—			—			—			70,616
Investments at Value		460,982			8,924,043		1,782,596			353,879			1,401,775			1,583,048			70,909
Cash		1			16,884		1			1			1			1			1
Cash denominated in foreign currencies at value+		—			59,987		31			213			—			—			—
Restricted cash+		—			4,730		290			4			—			—			—
Investment securities sold receivable		6,263			317,780		98			5			—			8,277			15
Dividends and interest receivable		4,118			143,109		5,604			1,225			1,045			13,581			—	*
Capital shares sold receivable		1,447			59,388		3,428			829			1,383			4,803			75
Receivable from affiliates		5			75		7			—			331			4			—
Unrealized appreciation on forward foreign currency contracts		128			929		68			—			—			—			—
Variation margin receivable		—			—		—			—			—			28			—
Prepaid and other assets		52			345		81			48			76			140			37
Total Assets		472,996			9,527,270		1,792,204			356,204			1,404,611			1,609,882			71,037
LIABILITIES
Investment securities purchased payable		3,488			445,834		—			3,905			—			10,433			—
Capital shares redeemed payable		522			19,097		4,503			338			4,148			6,594			152
Distributions payable		—			1,863		—			—			—			47			—
Trustees and Chief Compliance Officer fees payable		34			104		52			76			104			55			3
Distribution and service fees payable		4			78		10			3			11			14			1
Shareholder servicing fees payable		155			1,708		486			112			461			327			18
Investment management fee payable		9			127		41			8			26			19			—	*
Accounting services fee payable		12			23		22			9			23			23			2
Unrealized depreciation on forward foreign currency contracts		403			6,448		885			228			—			—			—
Written options at value+		—			—		57			—			—			—			—
Other liabilities		59			147		257			20			45			209			8
Total Liabilities		4,686			475,429		6,313			4,699			4,818			17,721			184
Total Net Assets	$	468,310		$	9,051,841	$	1,785,891		$	351,505		$	1,399,793		$	1,592,161		$	70,853
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	486,405		$	8,660,125	$	1,534,786		$	316,910		$	932,215		$	1,587,611		$	85,781
Undistributed (distributions in excess of) net investment income		3,212			1,678		22,839			2,124			(361	)		(751	)		(375	)
Accumulated net realized gain (loss)		(49,725	)		145,842		(13,308	)		(22,121	)		61,283			2,188			(31,000	)
Net unrealized appreciation		28,418			244,196		241,574			54,592			406,656			3,113			16,447
Total Net Assets	$	468,310		$	9,051,841	$	1,785,891		$	351,505		$	1,399,793		$	1,592,161		$	70,853
CAPITAL SHARES OUTSTANDING:
Class A		26,633			387,680		47,646			6,899			57,669			118,455			8,342
Class B		454			18,526		784			149			736			1,975			148
Class C		1,853			186,808		6,396			731			4,727			15,088			157
Class E		157			1,047		214			3			359			319			24
Class I		1,962			349,790		37,646			1,186			6,713			6,624			46
Class R		18			531		45			9			1,701			23			32
Class Y		421			102,844		7,764			281			7,249			2,945			83
NET ASSET VALUE PER SHARE:
Class A		$14.87			$8.64		$17.84			$38.32			$17.75			$10.95			$8.03
Class B		$14.63			$8.64		$16.10			$33.97			$15.28			$10.95			$7.79
Class C		$14.71			$8.64		$16.14			$33.97			$16.00			$10.95			$7.83
Class E		$14.88			$8.64		$17.92			$38.40			$17.74			$10.95			$8.07
Class I		$14.99			$8.64		$17.96			$38.77			$18.26			$10.95			$8.13
Class R		$14.87			$8.64		$17.81			$38.25			$17.44			$10.95			$8.02
Class Y		$14.93			$8.64		$17.95			$38.42			$18.03			$10.95			$8.06
+COST
Investments in unaffiliated securities at cost	$	432,304		$	8,640,800	$	1,540,402		$	299,094		$	995,119		$	1,578,115		$	293
Investments in affiliated securities at cost		—			35,000		—			—			—			—			54,169
Cash denominated in foreign currencies at cost		—			59,264		31			199			—			—			—
Written options premiums received at cost		—			—		184			—			—			—			—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

122 SEMIANNUAL REPORT 2013

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Money Market Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund			Ivy Pacific Opportunities Fund
ASSETS
Investments in unaffiliated securities at value+	$	285		$	170,019		$	4,069,820		$	212,102		$	142,897		$	1,240,973		$	585,237
Investments in affiliated securities at value+		191,348			—			—			—			—			—			—
Investments at Value		191,633			170,019			4,069,820			212,102			142,897			1,240,973			585,237
Cash		1			86			1			23			1			1			1
Cash denominated in foreign currencies at value+		—			—			—			—			—			—			1,791
Restricted cash+		—			—			—			—			—			—			2,068
Investment securities sold receivable		218			491			40,727			—			—			—			5,990
Dividends and interest receivable		—	*		12			1,383			271			1,856			23,113			677
Capital shares sold receivable		367			716			15,827			1,062			312			6,071			626
Receivable from affiliates		—			—			4			712			—	*		12			—
Prepaid and other assets		40			32			113			46			41			90			56
Total Assets		192,259			171,356			4,127,875			214,216			145,107			1,270,260			596,446
LIABILITIES
Investment securities purchased payable		—			3,140			20,484			—			—			7,592			13,804
Capital shares redeemed payable		680			157			8,420			892			596			6,173			1,858
Distributions payable		—			—			—			1			10			160			—
Trustees and Chief Compliance Officer fees payable		7			2			57			23			11			16			56
Distribution and service fees payable		2			1			22			2			1			10			3
Shareholder servicing fee payable		35			49			1,192			50			24			194			257
Investment management fee payable		—	*		4			91			2			2			17			15
Accounting services fee payable		4			6			23			7			6			24			14
Unrealized depreciation on swap agreements		—			—			—			—			—			—			471
Written options at value+		—			—			—			—			—			—			6,789
Other liabilities		12			9			86			9			4			95			80
Total Liabilities		740			3,368			30,375			986			654			14,281			23,347
Total Net Assets	$	191,519		$	167,988		$	4,097,500		$	213,230		$	144,453		$	1,255,979		$	573,099
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	194,528		$	121,052		$	3,155,678		$	213,267		$	141,080		$	1,297,750		$	567,841
Undistributed (distributions in excess of) net investment income		(250	)		(1,362	)		(14,931	)		—			57			1,895			3,582
Accumulated net realized gain (loss)		(40,516	)		8,909			147,522			(37	)		(641	)		(7,334	)		(79,033	)
Net unrealized appreciation (depreciation)		37,757			39,389			809,231			—			3,957			(36,332	)		80,709
Total Net Assets	$	191,519		$	167,988		$	4,097,500		$	213,230		$	144,453		$	1,255,979		$	573,099
CAPITAL SHARES OUTSTANDING:
Class A		19,338			5,697			61,745			154,782			10,121			80,955			29,742
Class B		237			99			1,248			9,061			253			3,089			513
Class C		521			336			11,605			44,524			1,941			48,487			1,067
Class E		22			N/A			234			4,900			N/A			N/A			8
Class I		58			559			74,448			N/A			129			116,092			9,477
Class R		28			15			3,985			N/A			N/A			N/A			18
Class Y		93			67			26,264			N/A			47			4,096			303
NET ASSET VALUE PER SHARE:
Class A		$9.44			$24.81			$22.43			$1.00			$11.56			$4.97			$13.92
Class B		$9.27			$23.97			$19.51			$1.00			$11.56			$4.97			$11.73
Class C		$9.30			$24.24			$20.38			$1.00			$11.56			$4.97			$12.21
Class E		$9.45			N/A			$22.04			$1.00			N/A			N/A			$14.10
Class I		$9.49			$25.12			$23.52			N/A			$11.56			$4.97			$14.30
Class R		$9.43			$24.79			$22.18			N/A			N/A			N/A			$13.90
Class Y		$9.43			$25.71			$23.12			N/A			$11.56			$4.97			$14.19
+COST
Investments in unaffiliated securities at cost	$	285		$	130,630		$	3,260,589		$	212,102		$	138,940		$	1,277,305		$	499,474
Investments in affiliated securities at cost		153,591			—			—			—			—			—			—
Cash denominated in foreign currencies at cost		—			—			—			—			—			—			1,699
Written options premiums received at cost		—			—			—			—			—			—			2,190

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 123

STATEMENTS OF ASSETS AND LIABILITIES

Ivy Funds AS OF SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands, except per share amounts)	Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund		Ivy Tax- Managed Equity Fund			Ivy Value Fund
ASSETS
Investments in unaffiliated securities at value+	$	1,083,519		$	293,200	$	37,138		$	219,610
Investments at Value		1,083,519			293,200		37,138			219,610
Cash		—			1		1			1
Investment securities sold receivable		9,236			4,247		—			338
Dividends and interest receivable		169			213		28			249
Capital shares sold receivable		4,610			388		123			405
Receivable from affiliates		6			—		—			—
Prepaid and other assets		66			45		31			45
Total Assets		1,097,606			298,094		37,321			220,648
LIABILITIES
Investment securities purchased payable		669			4,950		750			119
Capital shares redeemed payable		1,628			492		22			264
Trustees and Chief Compliance Officer fees payable		156			28		—	*		16
Overdraft due to custodian		5			—		—			—
Distribution and service fees payable		11			2		—	*		2
Shareholder servicing fee payable		265			126		7			66
Investment management fee payable		25			7		1			4
Accounting services fee payable		23			9		2			8
Written options at value+		—			—		—			91
Other liabilities		33			17		3			11
Total Liabilities		2,815			5,631		785			581
Total Net Assets	$	1,094,791		$	292,463	$	36,536		$	220,067
NET ASSETS
Capital paid in (shares authorized – unlimited)	$	680,838		$	205,617	$	27,764		$	169,040
Undistributed (distributions in excess of) net investment income		(7,596	)		1,322		(99	)		1,233
Accumulated net realized gain		93,159			30,863		922			3,760
Net unrealized appreciation		328,390			54,661		7,949			46,034
Total Net Assets	$	1,094,791		$	292,463	$	36,536		$	220,067
CAPITAL SHARES OUTSTANDING:
Class A		18,777			12,674		2,081			8,900
Class B		773			225		55			270
Class C		12,721			1,049		90			576
Class E		214			7		N/A			6
Class I		9,974			1,231		77			207
Class R		1,764			24		N/A			14
Class Y		12,328			437		41			79
NET ASSET VALUE PER SHARE:
Class A		$18.67			$18.73		$15.61			$21.96
Class B		$15.87			$16.65		$15.27			$20.77
Class C		$16.67			$17.27		$15.25			$21.35
Class E		$18.59			$19.16		N/A			$22.05
Class I		$22.06			$19.65		$15.70			$22.06
Class R		$18.57			$18.72		N/A			$21.91
Class Y		$21.35			$19.31		$15.63			$22.01
+COST
Investments in unaffiliated securities at cost	$	755,129		$	238,539	$	29,189		$	173,609
Written options premiums received at cost		—			—		—			124

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

124 SEMIANNUAL REPORT 2013

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Bond Fund			Ivy Core Equity Fund			Ivy Cundill Global Value Fund			Ivy Dividend Opportunities Fund			Ivy European Opportunities Fund			Ivy Global Bond Fund			Ivy Global Equity Income Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	191		$	5,130		$	2,673		$	4,069		$	3,371		$	453		$	3,872
Foreign dividend withholding tax		—			(104	)		(233	)		(26	)		(561	)		(20	)		(378	)
Interest and amortization from unaffiliated securities		11,346			10			35			8			6			5,887			1
Total Investment Income		11,537			5,036			2,475			4,051			2,816			6,320			3,495
EXPENSES
Investment management fee		1,590			2,199			1,359			1,187			934			901			406
Distribution and service fees:
Class A		694			461			287			319			196			218			117
Class B		49			51			28			59			14			33			8
Class C		167			620			112			205			45			213			23
Class E		5			6			1			5			—	*		N/A			N/A
Class R		1			1			1			1			1			1			1
Class Y		4			51			10			14			2			7			5
Shareholder servicing fees:
Class A		551			358			471			295			382			229			158
Class B		19			19			22			17			13			12			1
Class C		35			120			30			32			16			31			2
Class E		11			13			3			13			—	*		N/A			N/A
Class I		5			63			5			12			28			46			9
Class R		—	*		—	*		—	*		—	*		—	*		—	*		—	*
Class Y		2			32			6			9			1			4			3
Registration fees		71			64			57			62			55			56			91
Custodian fees		12			9			14			13			11			5			11
Trustees and Chief Compliance Officer fees		12			12			10			6			7			4			1
Accounting services fee		86			86			50			54			47			50			32
Professional fees		31			17			21			14			21			30			23
Other		23			26			3			12			25			7			—
Total Expenses		3,368			4,208			2,490			2,329			1,798			1,847			891
Less:
Expenses in excess of limit		(5	)		(221	)		(192	)		(6	)		—			(305	)		(136	)
Total Net Expenses		3,363			3,987			2,298			2,323			1,798			1,542			755
Net Investment Income		8,174			1,049			177			1,728			1,018			4,778			2,740
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		(4,765	)		31,897			14,846			19,987			7,145			(2,196	)		(352	)
Futures contracts		1,136			—			—			—			—			—			—
Forward foreign currency contracts		—			—			3,872			—			(348	)		(143	)		(110	)
Foreign currency exchange transactions		—			—			(28	)		—			(44	)		(32	)		(13	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		(17,840	)		31,312			20,880			4,088			9,575			(5,457	)		7,791
Futures contracts		(157	)		—			—			—			—			—			—
Forward foreign currency contracts		—			—			(2,939	)		—			72			(155	)		(64	)
Foreign currency exchange transactions		—			1			38			—			69			(4	)		5
Net Realized and Unrealized Gain (Loss)		(21,626	)		63,210			36,669			24,075			16,469			(7,987	)		7,257
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(13,452	)	$	64,259		$	36,846		$	25,803		$	17,487		$	(3,209	)	$	9,997

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 125

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Global Income Allocation Fund			Ivy High Income Fund			Ivy International Core Equity Fund			Ivy International Growth Fund			Ivy Large Cap Growth Fund			Ivy Limited- Term Bond Fund			Ivy Managed European/Pacific Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	9,789		$	334		$	29,989		$	4,843		$	8,825		$	—		$	—
Foreign dividend withholding tax		(901	)		—			(2,955	)		(513	)		(157	)		—			—
Interest and amortization from unaffiliated securities		3,555			337,823			39			19			10			16,753			—	*
Foreign interest withholding tax		(3	)		—			—			—	*		—			—			—
Total Investment Income		12,440			338,157			27,073			4,349			8,678			16,753			—	*
EXPENSES
Investment management fee		1,483			21,831			6,829			1,322			4,705			3,551			18
Distribution and service fees:
Class A		440			4,034			955			260			1,247			1,543			88
Class B		33			788			61			21			54			117			6
Class C		131			7,778			495			120			361			980			6
Class E		3			10			4			—	*		7			5			—	*
Class R		1			3			1			1			70			1			1
Class Y		7			1,054			161			14			161			56			1
Shareholder servicing fees:
Class A		567			2,293			1,068			343			1,115			945			40
Class B		16			113			22			12			20			30			2
Class C		28			824			102			46			68			136			1
Class E		8			21			13			—	*		16			5			—	*
Class I		23			2,126			475			35			102			78			—	*
Class R		—	*		1			1			—	*		35			—	*		—	*
Class Y		4			677			103			9			99			38			—	*
Registration fees		67			208			74			58			63			100			53
Custodian fees		21			41			66			11			14			11			3
Trustees and Chief Compliance Officer fees		7			101			22			8			23			24			1
Accounting services fee		69			136			136			52			136			136			13
Professional fees		24			91			22			19			19			18			9
Other		39			500			83			36			44			60			9
Total Expenses		2,971			42,630			10,693			2,367			8,359			7,834			251
Less:
Expenses in excess of limit		(21	)		(75	)		(7	)		—			(331	)		(4	)		—
Total Net Expenses		2,950			42,555			10,686			2,367			8,028			7,830			251
Net Investment Income (Loss)		9,490			295,602			16,387			1,982			650			8,923			(251	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		1,657			100,835			72,378			(2,262	)		120,419			(8,098	)		—
Investments in affiliated securities		—			—			—			—			—			—			(419	)
Futures contracts		—			—			—			—			—			741			—
Written options		—			—			229			—			—			—			—
Swap agreements		—			7			—			—			—			—			—
Forward foreign currency contracts		(4,678	)		(19,463	)		(440	)		(2,072	)		—			—			—
Foreign currency exchange transactions		(104	)		3,265			176			131			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		5,034			(147,161	)		93,419			27,026			32,265			(26,294	)		—	*
Investments in affiliated securities		—			87			—			—			—			—			1,916
Futures contracts		—			—			—			—			—			(1,820	)		—
Written options		—			—			128			—			—			—			—
Forward foreign currency contracts		(275	)		(12,910	)		(817	)		(103	)		—			—			—
Foreign currency exchange transactions		26			1,294			72			(4	)		—			—			—
Net Realized and Unrealized Gain (Loss)		1,660			(74,046	)		165,145			22,716			152,684			(35,471	)		1,497
Net Increase (Decrease) in Net Assets Resulting from Operations	$	11,150		$	221,556		$	181,532		$	24,698		$	153,334		$	(26,548	)	$	1,246

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

126 SEMIANNUAL REPORT 2013

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Managed International Opportunities Fund			Ivy Micro Cap Growth Fund			Ivy Mid Cap Growth Fund			Ivy Money Market Fund			Ivy Municipal Bond Fund			Ivy Municipal High Income Fund			Ivy Pacific Opportunities Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	—		$	61		$	15,269		$	—		$	—		$	—		$	10,521
Dividends from affiliated securities		398			—			—			—			—			—			—
Foreign dividend withholding tax		—			—			(62	)		—			—			—			(1,130	)
Interest and amortization from unaffiliated securities		—	*		5			102			241			3,057			37,981			35
Foreign interest withholding tax		—			—			—			—			—			—			(4	)
Total Investment Income		398			66			15,309			241			3,057			37,981			9,422
EXPENSES
Investment management fee		47			576			15,084			410			427			3,622			3,003
Distribution and service fees:
Class A		227			132			1,586			—			163			603			565
Class B		11			10			111			40			16			87			34
Class C		24			30			1,037			208			134			1,447			71
Class E		—	*		N/A			6			—			N/A			N/A			—	*
Class R		1			1			202			N/A			N/A			N/A			1
Class Y		1			1			700			N/A			1			36			6
Shareholder servicing fee:
Class A		81			173			1,932			118			70			173			930
Class B		3			5			33			7			2			9			32
Class C		2			9			217			24			15			89			35
Class E		—	*		N/A			15			5			N/A			N/A			—	*
Class I		—	*		6			1,218			N/A			1			517			106
Class R		—	*		—	*		107			N/A			N/A			N/A			—	*
Class Y		—	*		1			435			N/A			—	*		23			3
Registration fees		56			50			81			45			42			77			58
Custodian fees		3			8			22			5			3			13			49
Trustees and Chief Compliance Officer fees		3			1			47			4			3			21			11
Accounting services fee		23			31			136			42			35			129			87
Professional fees		9			12			26			11			18			57			20
Other		9			11			177			14			8			87			59
Total Expenses		500			1,057			23,172			933			938			6,990			5,070
Less:
Expenses in excess of limit		—			—			(4	)		(712	)		—	*		(112	)		—
Total Net Expenses		500			1,057			23,168			221			938			6,878			5,070
Net Investment Income (Loss)		(102	)		(991	)		(7,859	)		20			2,119			31,103			4,352
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		—			9,283			135,434			—	*		(273	)		(11,246	)		(17,059	)
Investments in affiliated securities		(181	)		—			—			—			—			—			—
Written options		—			—			4,035			—			—			—			(66	)
Swap agreements		—			—			—			—			—			—			(591	)
Forward foreign currency contracts		—			—			—			—			—			—			(2,948	)
Foreign currency exchange transactions		—			—			(2	)		—			—			—			(984	)
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		—	*		15,678			270,471			—			(8,616	)		(132,986	)		21,521
Investments in affiliated securities		9,720			—			—			—			—			—			—
Written options		—			—			(1,975	)		—			—			—			(4,644	)
Swap agreements		—			—			—			—			—			—			(388	)
Foreign currency exchange transactions		—			—			(3	)		—			—			—			24
Net Realized and Unrealized Gain (Loss)		9,539			24,961			407,960			—			(8,889	)		(144,232	)		(5,135	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	9,437		$	23,970		$	400,101		$	20		$	(6,770	)	$	(113,129	)	$	(783	)

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 127

STATEMENTS OF OPERATIONS

Ivy Funds FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2013 (UNAUDITED)

(In thousands)	Ivy Small Cap Growth Fund			Ivy Small Cap Value Fund			Ivy Tax- Managed Equity Fund			Ivy Value Fund
INVESTMENT INCOME
Dividends from unaffiliated securities	$	1,331		$	1,475		$	184		$	1,600
Foreign dividend withholding tax		—			—			(3	)		(13	)
Interest and amortization from unaffiliated securities		36			16			1			6
Total Investment Income		1,367			1,491			182			1,593
EXPENSES
Investment management fee		4,128			1,191			105			699
Interest expense for borrowing		—			—			—			—
Distribution and service fees:
Class A		383			288			36			222
Class B		56			18			4			28
Class C		980			83			6			55
Class E		4			—	*		N/A			—	*
Class R		67			1			N/A			1
Class Y		293			9			1			2
Shareholder servicing fees:
Class A		433			438			27			216
Class B		26			12			—	*		10
Class C		185			27			—	*		10
Class E		13			—	*		N/A			—	*
Class I		153			17			1			3
Class R		36			1			N/A			1
Class Y		181			4			—	*		1
Registration fees		61			57			39			59
Custodian fees		14			4			3			4
Trustees and Chief Compliance Officer fees		21			5			—	*		3
Accounting services fee		124			51			14			42
Professional fees		21			19			12			16
Other		39			3			3			12
Total Expenses		7,218			2,228			251			1,384
Less:
Expenses in excess of limit		(6	)		—			—			—
Total Net Expenses		7,212			2,228			251			1,384
Net Investment Income (Loss)		(5,845	)		(737	)		(69	)		209
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investments in unaffiliated securities		57,668			22,811			1,082			5,228
Written options		—			—			—			(331	)
Swap agreements		4,971			—			—			—
Net change in unrealized appreciation (depreciation) on:
Investments in unaffiliated securities		77,471			1,388			2,337			9,797
Written options		—			—			—			137
Swap agreements		(557	)		—			—			—
Net Realized and Unrealized Gain		139,553			24,199			3,419			14,831
Net Increase in Net Assets Resulting from Operations	$	133,708		$	23,462		$	3,350		$	15,040

* Not shown due to rounding.

See Accompanying Notes to Financial Statements.

128 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Bond Fund						Ivy Core Equity Fund					Ivy Cundill Global Value Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)		Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	8,174		$	13,360		$	1,049	$	686		$	177		$	16
Net realized gain (loss) on investments		(3,629	)		8,392			31,897		18,411			18,690			(107	)
Net change in unrealized appreciation (depreciation)		(17,997	)		11,404			31,313		31,959			17,979			16,335
Net Increase (Decrease) in Net Assets Resulting from Operations		(13,452	)		33,156			64,259		51,056			36,846			16,244
Distributions to Shareholders From:
Net investment income:
Class A		(8,592	)		(14,721	)		—		(899	)		—			—
Class B		(106	)		(219	)		—		—			—			—
Class C		(390	)		(934	)		—		—			—			—
Class E		(66	)		(125	)		—		(13	)		—			—
Class I		(88	)		(225	)		—		(250	)		—			—
Class R		(3	)		(2	)		—		—			—			—
Class Y		(48	)		(186	)		—		(82	)		—			—
Net realized gains:
Class A		—			(3,397	)		—		(1,593	)		—			—
Class B		—			(76	)		—		(43	)		—			—
Class C		—			(289	)		—		(792	)		—			—
Class E		—			(29	)		—		(26	)		—			—
Class I		—			(59	)		—		(280	)		—			—
Class R		—			—			—		—			—			—
Class Y		—			(35	)		—		(126	)		—			—
Total Distributions to Shareholders		(9,293	)		(20,297	)		—		(4,104	)		—			—
Capital Share Transactions		(18,455	)		104,197			103,716		140,225			43,747			(39,926	)
Net Increase (Decrease) in Net Assets		(41,200	)		117,056			167,975		187,177			80,593			(23,682	)
Net Assets, Beginning of Period		619,942			502,886			536,478		349,301			231,683			255,365
Net Assets, End of Period	$	578,742		$	619,942		$	704,453	$	536,478		$	312,276		$	231,683
Undistributed (distributions in excess of) net investment income	$	(1,119	)	$	—		$	951	$	(98	)	$	(32	)	$	(181	)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 129

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Dividend Opportunities Fund						Ivy European Opportunities Fund						Ivy Global Bond Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	1,728		$	4,485		$	1,018		$	953		$	4,778		$	9,428
Net realized gain (loss) on investments		19,987			20,705			6,753			6,553			(2,371	)		1,210
Net change in unrealized appreciation (depreciation)		4,088			9,133			9,716			9,872			(5,616	)		1,343
Net Increase (Decrease) in Net Assets Resulting from Operations		25,803			34,323			17,487			17,378			(3,209	)		11,981
Distributions to Shareholders From:
Net investment income:
Class A		(711	)		(3,535	)		—			(613	)		(2,780	)		(6,522	)
Class B		—			(102	)		—			—			(81	)		(208	)
Class C		—			(336	)		—			—			(522	)		(1,356	)
Class E		(9	)		(44	)		—			(1	)		N/A			N/A
Class I		(66	)		(216	)		—			(353	)		(1,033	)		(1,488	)
Class R		(1	)		—			—			—			(4	)		(2	)
Class Y		(34	)		(177	)		—			(14	)		(91	)		(223	)
Net realized gains:
Class A		—			—			—			—			—			(502	)
Class B		—			—			—			—			—			(21	)
Class C		—			—			—			—			—			(131	)
Class E		—			—			—			—			N/A			N/A
Class I		—			—			—			—			—			(122	)
Class R		—			—			—			—			—			—
Class Y		—			—			—			—			—			(17	)
Total Distributions to Shareholders		(821	)		(4,410	)		—			(981	)		(4,511	)		(10,592	)
Capital Share Transactions		(1,821	)		(53,633	)		(21,013	)		(42,521	)		(5,256	)		48,348
Net Increase (Decrease) in Net Assets		23,161			(23,720	)		(3,526	)		(26,124	)		(12,976	)		49,737
Net Assets, Beginning of Period		326,917			350,637			212,063			238,187			289,262			239,525
Net Assets, End of Period	$	350,078		$	326,917		$	208,537		$	212,063		$	276,286		$	289,262
Undistributed net investment income	$	1,245		$	338		$	1,054		$	80		$	770		$	535

See Accompanying Notes to Financial Statements.

130 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Global Equity Income Fund						Ivy Global Income Allocation Fund						Ivy High Income Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended  9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	2,740		$	1,378		$	9,490		$	13,904		$	295,602		$	464,167
Net realized gain (loss) on investments		(475	)		1,837			(3,125	)		(4,962	)		84,644			137,051
Net change in unrealized appreciation (depreciation)		7,732			4,626			4,785			13,574			(158,690	)		270,566
Net Increase in Net Assets Resulting from Operations		9,997			7,841			11,150			22,516			221,556			871,784
Distributions to Shareholders From:
Net investment income:
Class A		(2,129	)		(697	)		(7,089	)		(11,802	)		(114,893	)		(184,587	)
Class B		(26	)		(24	)		(100	)		(251	)		(5,018	)		(8,113	)
Class C		(86	)		(75	)		(434	)		(822	)		(49,835	)		(79,917	)
Class E		N/A			N/A			(45	)		(93	)		(281	)		(444	)
Class I		(287	)		(292	)		(658	)		(1,571	)		(99,315	)		(141,954	)
Class R		(5	)		—	*		(5	)		(1	)		(35	)		(05	)
Class Y		(81	)		(88	)		(120	)		(269	)		(29,979	)		(47,042	)
Net realized gains:
Class A		—			(236	)		—			—			—			(33,153	)
Class B		—			(10	)		—			—			—			(1,657	)
Class C		—			(31	)		—			—			—			(16,254	)
Class E		N/A			N/A			—			—			—			(85	)
Class I		—			(86	)		—			—			—			(25,949	)
Class R		—			—			—			—			—			—
Class Y		—			(28	)		—			—			—			(8,547	)
Total Distributions to Shareholders		(2,614	)		(1,567	)		(8,451	)		(14,809	)		(299,356	)		(547,707	)
Capital Share Transactions		65,487			73,791			88,169			66,372			1,040,669			3,254,265
Net Increase in Net Assets		72,870			80,065			90,868			74,079			962,869			3,578,342
Net Assets, Beginning of Period		80,065			—			377,442			303,363			8,088,972			4,510,630
Net Assets, End of Period	$	152,935		$	80,065		$	468,310		$	377,442		$	9,051,841		$	8,088,972
Undistributed net investment income	$	559		$	446		$	3,212		$	2,277		$	1,678		$	94

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 131

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy International Core Equity Fund						Ivy International Growth Fund						Ivy Large Cap Growth Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)		Year ended 3-31-13				Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	16,387	$	22,517			$	1,982		$	1,693		$	650		$	2,839
Net realized gain (loss) on investments		72,343		(38,750	)			(4,203	)		9,487			120,419			130,024
Net change in unrealized appreciation (depreciation)		92,802		105,123				26,919			5,630			32,265			(68,591	)
Net Increase in Net Assets Resulting from Operations		181,532		88,890				24,698			16,810			153,334			64,272
Distributions to Shareholders From:
Net investment income:
Class A		—		(9,435	)			—			(1,339	)		—			(1,907	)
Class B		—		(96	)			—			(3	)		—			—
Class C		—		(932	)			—			(37	)		—			—
Class E		—		(41	)			—			(1	)		—			(10	)
Class I		—		(9,862	)			—			(635	)		—			(632	)
Class R		—		—				—			—			—			—
Class Y		—		(2,246	)			—			(149	)		—			(304	)
Net realized gains:
Class A		—		—				—			—			—			—
Class B		—		—				—			—			—			—
Class C		—		—		��		—			—			—			—
Class E		—		—				—			—			—			—
Class I		—		—				—			—			—			—
Class R		—		—				—			—			—			—
Class Y		—		—				—			—			—			—
Total Distributions to Shareholders		—		(22,612	)			—			(2,164	)		—			(2,853	)
Capital Share Transactions		77,240		(56,991	)			40,258			57,940			(131,235	)		(166,982	)
Net Increase (Decrease) in Net Assets		258,772		9,287				64,956			72,586			22,099			(105,563	)
Net Assets, Beginning of Period		1,527,119		1,517,832				286,549			213,963			1,377,694			1,483,257
Net Assets, End of Period	$	1,785,891	$	1,527,119			$	351,505		$	286,549		$	1,399,793		$	1,377,694
Undistributed (distributions in excess of) net investment income	$	22,839	$	6,276			$	2,124		$	11		$	(361	)	$	(1,011	)

See Accompanying Notes to Financial Statements.

132 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Limited-Term Bond Fund						Ivy Managed European/Pacific Fund						Ivy Managed International Opportunities Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	8,923		$	21,808		$	(251	)	$	318		$	(102	)	$	2,422
Net realized gain (loss) on investments		(7,357	)		16,824			(419	)		(2,546	)		(181	)		(6,654	)
Net change in unrealized appreciation (depreciation)		(28,114	)		(5,630	)		1,916			3,845			9,720			12,794
Net Increase (Decrease) in Net Assets Resulting from Operations		(26,548	)		33,002			1,246			1,617			9,437			8,562
Distributions to Shareholders From:
Net investment income:
Class A		(7,977	)		(18,490	)		—			(385	)		—			(2,517	)
Class B		(53	)		(217	)		—			—			—			(19	)
Class C		(555	)		(2,138	)		—			—	*		—			(42	)
Class E		(23	)		(52	)		—			(1	)		—			(3	)
Class I		(771	)		(2,280	)		—			(3	)		—			(7	)
Class R		(1	)		(1	)		—			—			—			—
Class Y		(294	)		(1,071	)		—			(4	)		—			(10	)
Net realized gains:
Class A		—			(3,078	)		—			—			—			—
Class B		—			(72	)		—			—			—			—
Class C		—			(615	)		—			—			—			—
Class E		—			(10	)		—			—			—			—
Class I		—			(350	)		—			—			—			—
Class R		—			—			—			—			—			—
Class Y		—			(182	)		—			—			—			—
Total Distributions to Shareholders		(9,674	)		(28,556	)		—			(393	)		—			(2,598	)
Capital Share Transactions		(5,094	)		158,866			(8,185	)		(5,745	)		(9,647	)		(8,902	)
Net Increase (Decrease) in Net Assets		(41,316	)		163,312			(6,939	)		(4,521	)		(210	)		(2,938	)
Net Assets, Beginning of Period		1,633,477			1,470,165			77,792			82,313			191,729			194,667
Net Assets, End of Period	$	1,592,161		$	1,633,477		$	70,853		$	77,792		$	191,519		$	191,729
Distributions in excess of net investment income	$	(751	)	$	—		$	(375	)	$	(124	)	$	(250	)	$	(148	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 133

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Micro Cap Growth Fund						Ivy Mid Cap Growth Fund						Ivy Money Market Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(991	)	$	(1,086	)	$	(7,859	)	$	(11,750	)	$	20		$	40
Net realized gain on investments		9,283			2,740			139,467			10,878			—	*		2
Net change in unrealized appreciation		15,678			3,306			268,493			311,289			—			—
Net Increase in Net Assets Resulting from Operations		23,970			4,960			400,101			310,417			20			42
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			—			(15	)		(30	)
Class B		—			—			—			—			(1	)		(1	)
Class C		—			—			—			—			(4	)		(8	)
Class E		N/A			N/A			—			—			—	*		(1	)
Class I		—			—			—			—			N/A			N/A
Class R		—			—			—			—			N/A			N/A
Class Y		—			—			—			—			N/A			N/A
Net realized gains:
Class A		—			—			—			(5,679	)		—			—
Class B		—			—			—			(123	)		—			—
Class C		—			—			—			(968	)		—			—
Class E		N/A			N/A			—			(22	)		—			—
Class I		—			—			—			(5,893	)		N/A			N/A
Class R		—			—			—			(393	)		N/A			N/A
Class Y		—			—			—			(2,452	)		N/A			N/A
Total Distributions to Shareholders		—			—			—			(15,530	)		(20	)		(40	)
Capital Share Transactions		52,333			5,355			415,200			919,688			37,073			(47,762	)
Net Increase (Decrease) in Net Assets		76,303			10,315			815,301			1,214,575			37,073			(47,760	)
Net Assets, Beginning of Period		91,685			81,370			3,282,199			2,067,624			176,157			223,917
Net Assets, End of Period	$	167,988		$	91,685		$	4,097,500		$	3,282,199		$	213,230		$	176,157
Distributions in excess of net investment income	$	(1,362	)	$	(371	)	$	(14,931	)	$	(7,070	)	$	—		$	—

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

134 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Municipal Bond Fund						Ivy Municipal High Income Fund						Ivy Pacific Opportunities Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	2,119		$	3,991		$	31,103		$	55,223		$	4,352		$	2,043
Net realized gain (loss) on investments		(273	)		158			(11,246	)		4,618			(21,648	)		(35,372	)
Net change in unrealized appreciation (depreciation)		(8,616	)		3,310			(132,986	)		52,388			16,513			34,605
Net Increase (Decrease) in Net Assets Resulting from Operations		(6,770	)		7,459			(113,129	)		112,229			(783	)		1,276
Distributions to Shareholders From:
Net investment income:
Class A		(1,773	)		(3,232	)		(10,306	)		(19,012	)		—			(3,447	)
Class B		(31	)		(73	)		(301	)		(497	)		—			(3	)
Class C		(263	)		(610	)		(5,121	)		(8,585	)		—			(47	)
Class E		N/A			N/A			N/A			N/A			—			—
Class I		(27	)		(39	)		(14,722	)		(24,756	)		—			(1,567	)
Class R		N/A			N/A			N/A			N/A			—			—
Class Y		(9	)		(20	)		(620	)		(1,210	)		—			(50	)
Net realized gains:
Class A		—			—			—			—			—			—
Class B		—			—			—			—			—			—
Class C		—			—			—			—			—			—
Class E		N/A			N/A			N/A			N/A			—			—
Class I		—			—			—			—			—			—
Class R		N/A			N/A			N/A			N/A			—			—
Class Y		—			—			—			—			—			—
Total Distributions to Shareholders		(2,103	)		(3,974	)		(31,070	)		(54,060	)		—			(5,114	)
Capital Share Transactions		(17,594	)		37,100			(269,998	)		575,845			(93,580	)		(6,971	)
Net Increase (Decrease) in Net Assets		(26,467	)		40,585			(414,197	)		634,014			(94,363	)		(10,809	)
Net Assets, Beginning of Period		170,920			130,335			1,670,176			1,036,162			667,462			678,271
Net Assets, End of Period	$	144,453		$	170,920		$	1,255,979		$	1,670,176		$	573,099		$	667,462
Undistributed net investment income	$	57		$	41		$	1,895		$	1,862		$	3,582		$	214

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 135

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Small Cap Growth Fund						Ivy Small Cap Value Fund						Ivy Tax-Managed Equity Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13			Six months ended 9-30-13 (Unaudited)			Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)	$	(5,845	)	$	(7,819	)	$	(737	)	$	316		$	(69	)	$	68
Net realized gain on investments		62,639			57,359			22,811			19,659			1,082			204
Net change in unrealized appreciation		76,914			69,566			1,388			24,707			2,337			1,814
Net Increase in Net Assets Resulting from Operations		133,708			119,106			23,462			44,682			3,350			2,086
Distributions to Shareholders From:
Net investment income:
Class A		—			—			—			—			—			(81	)
Class B		—			—			—			—			—			—	*
Class C		—			—			—			—			—			—
Class E		—			—			—			—			N/A			N/A
Class I		—			—			—			—			—			(6	)
Class R		—			—			—			—			N/A			N/A
Class Y		—			—			—			—			—			(3	)
Net realized gains:
Class A		—			(6,368	)		—			(7,227	)		—			—
Class B		—			(293	)		—			(120	)		—			—
Class C		—			(4,938	)		—			(488	)		—			—
Class E		—			(73	)		—			(4	)		N/A			N/A
Class I		—			(3,155	)		—			(639	)		—			—
Class R		—			(478	)		—			—			N/A			N/A
Class Y		—			(4,398	)		—			(225	)		—			—
Total Distributions to Shareholders		—			(19,703	)		—			(8,703	)		—			(90	)
Capital Share Transactions		59,104			24,546			(2,530	)		(31,407	)		4,838			7,719
Net Increase in Net Assets		192,812			123,949			20,932			4,572			8,188			9,715
Net Assets, Beginning of Period		901,979			778,030			271,531			266,959			28,348			18,633
Net Assets, End of Period	$	1,094,791		$	901,979		$	292,463		$	271,531		$	36,536		$	28,348
Undistributed (distributions in excess of) net investment income	$	(7,596	)	$	(1,751	)	$	1,322		$	2,059		$	(99	)	$	(30	)

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

136 SEMIANNUAL REPORT 2013

STATEMENTS OF CHANGES IN NET ASSETS

Ivy Funds

	Ivy Value Fund
(In thousands)	Six months ended 9-30-13 (Unaudited)		Year ended 3-31-13
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income	$	209	$	997
Net realized gain on investments		4,897		4,144
Net change in unrealized appreciation		9,934		17,345
Net Increase in Net Assets Resulting from Operations		15,040		22,486
Distributions to Shareholders From:
Net investment income:
Class A		—		(941	)
Class B		—		—
Class C		—		(23	)
Class E		—		(1	)
Class I		—		(29	)
Class R		—		—
Class Y		—		(16	)
Net realized gains:
Class A		—		(22	)
Class B		—		(1	)
Class C		—		(2	)
Class E		—		—	*
Class I		—		—	*
Class R		—		—
Class Y		—		—	*
Total Distributions to Shareholders		—		(1,035	)
Capital Share Transactions		28,915		32,873
Net Increase in Net Assets		43,955		54,324
Net Assets, Beginning of Period		176,112		121,788
Net Assets, End of Period	$	220,067	$	176,112
Undistributed net investment income	$	1,233	$	1,024

*Not shown due to rounding.

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 137

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	10.71	$	0.14	(1)	$	(0.36	)	$	(0.22	)	$	(0.16	)	$	—		$	(0.16	)
Year ended 3-31-2013		10.44		0.26	(1)		0.39			0.65			(0.31	)		(0.07	)		(0.38	)
Year ended 3-31-2012		10.10		0.17	(1)		0.51			0.68			(0.34	)		—			(0.34	)
Year ended 3-31-2011		9.82		0.29	(1)		0.40			0.69			(0.32	)		(0.09	)		(0.41	)
Year ended 3-31-2010		8.76		0.33	(1)		1.07			1.40			(0.34	)		—			(0.34	)
Year ended 3-31-2009		9.84		0.36			(1.06	)		(0.70	)		(0.38	)		—			(0.38	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.09	(1)		(0.36	)		(0.27	)		(0.11	)		—			(0.11	)
Year ended 3-31-2013		10.44		0.15	(1)		0.40			0.55			(0.21	)		(0.07	)		(0.28	)
Year ended 3-31-2012		10.10		0.06	(1)		0.51			0.57			(0.23	)		—			(0.23	)
Year ended 3-31-2011		9.82		0.18	(1)		0.40			0.58			(0.21	)		(0.09	)		(0.30	)
Year ended 3-31-2010		8.76		0.22	(1)		1.07			1.29			(0.23	)		—			(0.23	)
Year ended 3-31-2009		9.84		0.24			(1.06	)		(0.82	)		(0.26	)		—			(0.26	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.10	(1)		(0.36	)		(0.26	)		(0.12	)		—			(0.12	)
Year ended 3-31-2013		10.44		0.18	(1)		0.40			0.58			(0.24	)		(0.07	)		(0.31	)
Year ended 3-31-2012		10.10		0.09	(1)		0.51			0.60			(0.26	)		—			(0.26	)
Year ended 3-31-2011		9.82		0.21	(1)		0.40			0.61			(0.24	)		(0.09	)		(0.33	)
Year ended 3-31-2010		8.76		0.28	(1)		1.06			1.34			(0.28	)		—			(0.28	)
Year ended 3-31-2009		9.84		0.27	(1)		(1.05	)		(0.78	)		(0.30	)		—			(0.30	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.14	(1)		(0.36	)		(0.22	)		(0.16	)		—			(0.16	)
Year ended 3-31-2013		10.44		0.25	(1)		0.40			0.65			(0.31	)		(0.07	)		(0.38	)
Year ended 3-31-2012		10.10		0.17	(1)		0.51			0.68			(0.34	)		—			(0.34	)
Year ended 3-31-2011		9.82		0.28	(1)		0.40			0.68			(0.31	)		(0.09	)		(0.40	)
Year ended 3-31-2010		8.76		0.34	(1)		1.07			1.41			(0.35	)		—			(0.35	)
Year ended 3-31-2009		9.84		0.34			(1.06	)		(0.72	)		(0.36	)		—			(0.36	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.16	(1)		(0.36	)		(0.20	)		(0.18	)		—			(0.18	)
Year ended 3-31-2013		10.44		0.29	(1)		0.40			0.69			(0.35	)		(0.07	)		(0.42	)
Year ended 3-31-2012		10.10		0.20	(1)		0.51			0.71			(0.37	)		—			(0.37	)
Year ended 3-31-2011		9.82		0.32	(1)		0.40			0.72			(0.35	)		(0.09	)		(0.44	)
Year ended 3-31-2010		8.76		0.38	(1)		1.06			1.44			(0.38	)		—			(0.38	)
Year ended 3-31-2009		9.84		0.39			(1.06	)		(0.67	)		(0.41	)		—			(0.41	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.13	(1)		(0.36	)		(0.23	)		(0.15	)		—			(0.15	)
Year ended 3-31-2013(5)		10.69		0.02	(1)		0.08			0.10			(0.08	)		—			(0.08	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.71		0.14	(1)		(0.36	)		(0.22	)		(0.16	)		—			(0.16	)
Year ended 3-31-2013		10.44		0.26	(1)		0.40			0.66			(0.32	)		(0.07	)		(0.39	)
Year ended 3-31-2012		10.10		0.18	(1)		0.51			0.69			(0.35	)		—			(0.35	)
Year ended 3-31-2011		9.82		0.30	(1)		0.40			0.70			(0.33	)		(0.09	)		(0.42	)
Year ended 3-31-2010		8.76		0.35	(1)		1.07			1.42			(0.36	)		—			(0.36	)
Year ended 3-31-2009		9.84		0.33	(1)		(1.03	)		(0.70	)		(0.38	)		—			(0.38	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

138 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	10.33		-2.04	%	$	533			1.05	%(4)		2.73	%(4)		—	%		—	%		116	%
Year ended 3-31-2013		10.71		6.33			554			1.06			2.42			—			—			269
Year ended 3-31-2012		10.44		6.83			437			1.11			1.68			—			—			309
Year ended 3-31-2011		10.10		7.08			333			1.14			2.97			—			—			432
Year ended 3-31-2010		9.82		16.27			168			1.21			3.58			—			—			410
Year ended 3-31-2009		8.76		-7.22			98			1.25			3.89			—			—			441
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-2.49			8			1.98	(4)		1.79	(4)		—			—			116
Year ended 3-31-2013		10.71		5.28			11			2.05			1.41			—			—			269
Year ended 3-31-2012		10.44		5.68			10			2.19			0.61			—			—			309
Year ended 3-31-2011		10.10		5.94			9			2.22			1.87			2.23			1.86			432
Year ended 3-31-2010		9.82		14.84			6			2.41			2.36			—			—			410
Year ended 3-31-2009		8.76		-8.45			3			2.60			2.51			—			—			441
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-2.42			27			1.80	(4)		1.97	(4)		—			—			116
Year ended 3-31-2013		10.71		5.55			39			1.79			1.67			—			—			269
Year ended 3-31-2012		10.44		6.03			40			1.84			0.92			—			—			309
Year ended 3-31-2011		10.10		6.31			26			1.85			2.16			—			—			432
Year ended 3-31-2010		9.82		15.44			19			1.95			2.87			—			—			410
Year ended 3-31-2009		8.76		-7.99			13			2.06			2.92			—			—			441
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-2.09			4			1.14	(4)		2.63	(4)		1.35	(4)		2.42	(4)		116
Year ended 3-31-2013		10.71		6.25			5			1.14			2.33			1.35			2.12			269
Year ended 3-31-2012		10.44		6.79			4			1.14			1.66			1.42			1.38			309
Year ended 3-31-2011		10.10		7.01			3			1.19			2.87			1.47			2.59			432
Year ended 3-31-2010		9.82		16.30			2			1.21			3.56			1.68			3.09			410
Year ended 3-31-2009		8.76		-7.37			1			1.37			3.73			1.77			3.33			441
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-1.91			5			0.79	(4)		2.98	(4)		—			—			116
Year ended 3-31-2013		10.71		6.67			6			0.76			2.68			—			—			269
Year ended 3-31-2012		10.44		7.19			4			0.77			1.96			—			—			309
Year ended 3-31-2011		10.10		7.43			1			0.80			3.34			—			—			432
Year ended 3-31-2010		9.82		16.73			1			0.84			3.84			—			—			410
Year ended 3-31-2009		8.76		-6.88			—	*		0.88			4.26			—			—			441
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-2.19			—	*		1.35	(4)		2.42	(4)		—			—			116
Year ended 3-31-2013(5)		10.71		0.96			—	*		1.30	(4)		0.82	(4)		—			—			269	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.33		-2.04			2			1.00	(4)		2.76	(4)		—			—			116
Year ended 3-31-2013		10.71		6.39			5			1.00			2.49			—			—			269
Year ended 3-31-2012		10.44		6.91			8			1.03			1.78			—			—			309
Year ended 3-31-2011		10.10		7.17			7			1.05			3.00			—			—			432
Year ended 3-31-2010		9.82		16.41			6			1.09			3.58			—			—			410
Year ended 3-31-2009		8.76		-7.23			1			1.19			3.61			1.21			3.59			441

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 139

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CORE EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	12.15	$	0.03	(1)	$	1.27		$	1.30		$	—		$	—		$	—		$	—
Year ended 3-31-2013		10.91		0.04	(1)		1.33			1.37			(0.05	)		(0.08	)		—			(0.13	)
Year ended 3-31-2012		10.68		0.02	(1)		0.58			0.60			—			(0.37	)		—			(0.37	)
Year ended 3-31-2011		8.91		(0.01	)(1)		1.95			1.94			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		6.04		0.00	(1)		2.89			2.89			—			—			(0.02	)		(0.02	)
Year ended 3-31-2009		9.33		0.00			(3.27	)		(3.27	)		—			—			(0.02	)		(0.02	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.78		(0.03	)(1)		1.13			1.10			—			—			—			—
Year ended 3-31-2013		9.75		(0.07	)(1)		1.18			1.11			—			(0.08	)		—			(0.08	)
Year ended 3-31-2012		9.59		(0.08	)(1)		0.52			0.44			—			(0.28	)		—			(0.28	)
Year ended 3-31-2011		8.10		(0.10	)(1)		1.76			1.66			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		5.54		(0.06	)(1)		2.62			2.56			—			—			—			—
Year ended 3-31-2009		8.64		(0.11	)		(2.98	)		(3.09	)		—			—			(0.01	)		(0.01	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		11.03		(0.02	)(1)		1.15			1.13			—			—			—			—
Year ended 3-31-2013		9.95		(0.04	)(1)		1.20			1.16			—			(0.08	)		—			(0.08	)
Year ended 3-31-2012		9.77		(0.06	)(1)		0.55			0.49			—			(0.31	)		—			(0.31	)
Year ended 3-31-2011		8.23		(0.07	)(1)		1.78			1.71			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		5.61		(0.04	)(1)		2.66			2.62			—			—			—			—
Year ended 3-31-2009		8.74		(0.06	)		(3.05	)		(3.11	)		—			—			(0.02	)		(0.02	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		12.12		0.02	(1)		1.27			1.29			—			—			—			—
Year ended 3-31-2013		10.89		0.03	(1)		1.32			1.35			(0.04	)		(0.08	)		—			(0.12	)
Year ended 3-31-2012		10.67		0.01	(1)		0.59			0.60			—			(0.38	)		—			(0.38	)
Year ended 3-31-2011		8.90		0.00	(1)		1.94			1.94			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		6.03		0.00	(1)		2.89			2.89			—			—			(0.02	)		(0.02	)
Year ended 3-31-2009		9.33		0.02	(1)		(3.30	)		(3.28	)		—			—			(0.02	)		(0.02	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		13.15		0.05	(1)		1.38			1.43			—			—			—			—
Year ended 3-31-2013		11.78		0.08	(1)		1.44			1.52			(0.07	)		(0.08	)		—			(0.15	)
Year ended 3-31-2012		11.50		0.05	(1)		0.64			0.69			—			(0.41	)		—			(0.41	)
Year ended 3-31-2011		9.55		0.03	(1)		2.09			2.12			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		6.47		(0.01	)(1)		3.13			3.12			—			—			(0.04	)		(0.04	)
Year ended 3-31-2009		9.93		0.08	(1)		(3.52	)		(3.44	)		—			—			(0.02	)		(0.02	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		12.13		0.01	(1)		1.27			1.28			—			—			—			—
Year ended 3-31-2013(5)		11.15		0.00	(1)		0.98			0.98			—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		12.87		0.05	(1)		1.35			1.40			—			—			—			—
Year ended 3-31-2013		11.54		0.06	(1)		1.40			1.46			(0.05	)		(0.08	)		—			(0.13	)
Year ended 3-31-2012		11.27		0.03	(1)		0.63			0.66			—			(0.39	)		—			(0.39	)
Year ended 3-31-2011		9.39		0.01	(1)		2.04			2.05			—			(0.17	)		—			(0.17	)
Year ended 3-31-2010		6.36		0.00	(1)		3.06			3.06			—			—			(0.03	)		(0.03	)
Year ended 3-31-2009		9.80		0.06	(1)		(3.48	)		(3.42	)		—			—			(0.02	)		(0.02	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

140 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period			Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	13.45			10.70	%	$	406			1.15	%(4)		0.45	%(4)		1.21	%(4)		0.39	%(4)		34	%
Year ended 3-31-2013		12.15			12.66			320			1.23			0.35			1.26			0.32			60
Year ended 3-31-2012		10.91			6.16			196			1.30			0.15			—			—			65
Year ended 3-31-2011		10.68			21.99			139			1.40			-0.10			—			—			107
Year ended 3-31-2010		8.91			47.83			97			1.44			0.19			—			—			101
Year ended 3-31-2009		6.04			-35.09			65			1.46			0.38			—			—			115
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.88			10.20			10			2.11	(4)		-0.51	(4)		—			—			34
Year ended 3-31-2013		10.78			11.49			10			2.24			-0.68			—			—			60
Year ended 3-31-2012		9.75			5.05			5			2.36			-0.89			—			—			65
Year ended 3-31-2011		9.59			20.73			5			2.46			-1.19			—			—			107
Year ended 3-31-2010		8.10			46.21			5			2.51			-0.87			—			—			101
Year ended 3-31-2009		5.54			-35.75			4			2.48			-0.68			—			—			115
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		12.16			10.25			133			1.95	(4)		-0.35	(4)		—			—			34
Year ended 3-31-2013		11.03			11.76			115			2.02			-0.43			—			—			60
Year ended 3-31-2012		9.95			5.46			99			2.08			-0.61			—			—			65
Year ended 3-31-2011		9.77			21.01			105			2.15			-0.87			—			—			107
Year ended 3-31-2010		8.23			46.70			96			2.20			-0.57			—			—			101
Year ended 3-31-2009		5.61			-35.63			75			2.21			-0.42			—			—			115
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		13.41			10.64			5			1.35	(4)		0.25	(4)		1.55	(4)		0.05	(4)		34
Year ended 3-31-2013		12.12			12.53			4			1.35			0.25			1.61			-0.01			60
Year ended 3-31-2012		10.89			6.13			3			1.35			0.10			1.72			-0.27			65
Year ended 3-31-2011		10.67			22.02			2			1.35			-0.05			1.92			-0.62			107
Year ended 3-31-2010		8.90			48.03			1			1.35			0.26			2.16			-0.55			101
Year ended 3-31-2009		6.03	��		-35.20			1			1.56			0.31			2.12			-0.25			115
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.58			10.88			99			0.84	(4)		0.75	(4)		0.92	(4)		0.67	(4)		34
Year ended 3-31-2013		13.15			13.08			60			0.91			0.69			0.93			0.67			60
Year ended 3-31-2012		11.78			6.57			28			0.94			0.47			—			—			65
Year ended 3-31-2011		11.50			22.41			5			0.99			0.33			—			—			107
Year ended 3-31-2010		9.55			48.34			3			0.99			0.55			—			—			101
Year ended 3-31-2009		6.47			-34.68			—	*		0.97			1.03			—			—			115
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		13.41			10.55			—	*		1.52	(4)		0.08	(4)		—			—			34
Year ended 3-31-2013(5)		12.13			8.79			—	*		1.50	(4)		-0.13	(4)		—			—			60	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.27			10.88			51			0.84	(4)		0.73	(4)		1.17	(4)		0.40	(4)		34
Year ended 3-31-2013		12.87			12.82			27			1.09			0.48			1.18			0.40			60
Year ended 3-31-2012		11.54			6.35			18			1.20			0.27			—			—			65
Year ended 3-31-2011		11.27			22.04			11			1.24			0.06			—			—			107
Year ended 3-31-2010		9.39			48.15			5			1.24			0.39			—			—			101
Year ended 3-31-2009		6.36			-34.94			4			1.23			0.71			—			—			115

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 141

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY CUNDILL GLOBAL VALUE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	14.68	$	0.02	(1)	$	2.23		$	2.25		$	—		$	—		$	—		$	—
Year ended 3-31-2013		13.44		0.01	(1)		1.23			1.24			—			—			—			—
Year ended 3-31-2012		14.00		0.02	(1)		(0.57	)		(0.55	)		(0.01	)		—			—			(0.01	)
Year ended 3-31-2011		12.63		0.03	(1)		1.34			1.37			—			—			—			—
Year ended 3-31-2010		8.55		0.04	(1)		4.15			4.19			(0.08	)		—			(0.03	)		(0.11	)
Year ended 3-31-2009		12.97		0.16			(4.55	)		(4.39	)		(0.03	)		—	*		—			(0.03	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		13.81		(0.07	)(1)		2.10			2.03			—			—			—			—
Year ended 3-31-2013		12.78		(0.11	)(1)		1.14			1.03			—			—			—			—
Year ended 3-31-2012		13.43		(0.09	)(1)		(0.56	)		(0.65	)		—			—			—			—
Year ended 3-31-2011		12.22		(0.07	)(1)		1.28			1.21			—			—			—			—
Year ended 3-31-2010		8.31		(0.04	)(1)		3.99			3.95			(0.03	)		—			(0.01	)		(0.04	)
Year ended 3-31-2009		12.68		0.01			(4.38	)		(4.37	)		—			—			—			—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		13.99		(0.03	)(1)		2.13			2.10			—			—			—			—
Year ended 3-31-2013		12.88		(0.05	)(1)		1.16			1.11			—			—			—			—
Year ended 3-31-2012		13.48		(0.05	)(1)		(0.55	)		(0.60	)		—			—			—			—
Year ended 3-31-2011		12.23		(0.03	)(1)		1.28			1.25			—			—			—			—
Year ended 3-31-2010		8.30		0.00	(1)		3.99			3.99			(0.05	)		—			(0.01	)		(0.06	)
Year ended 3-31-2009		12.62		0.06			(4.38	)		(4.32	)		—			—			—			—
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		14.78		0.02	(1)		2.25			2.27			—			—			—			—
Year ended 3-31-2013		13.49		0.04	(1)		1.25			1.29			—			—			—			—
Year ended 3-31-2012		14.04		0.05	(1)		(0.57	)		(0.52	)		(0.03	)		—			—			(0.03	)
Year ended 3-31-2011		12.64		0.06	(1)		1.34			1.40			—			—			—			—
Year ended 3-31-2010		8.55		0.06	(1)		4.16			4.22			(0.10	)		—			(0.03	)		(0.13	)
Year ended 3-31-2009		12.93		0.10			(4.48	)		(4.38	)		—			—			—			—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.98		0.05	(1)		2.29			2.34			—			—			—			—
Year ended 3-31-2013		13.64		0.09	(1)		1.25			1.34			—			—			—			—
Year ended 3-31-2012		14.23		0.10	(1)		(0.59	)		(0.49	)		(0.10	)		—			—			(0.10	)
Year ended 3-31-2011		12.76		0.11	(1)		1.36			1.47			—			—			—			—
Year ended 3-31-2010		8.64		0.07	(1)		4.22			4.29			(0.13	)		—			(0.04	)		(0.17	)
Year ended 3-31-2009		13.11		0.05	(1)		(4.43	)		(4.38	)		(0.09	)		—	*		—			(0.09	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		14.68		0.01	(1)		2.23			2.24			—			—			—			—
Year ended 3-31-2013(5)		13.62		(0.01	)(1)		1.07			1.06			—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.86		0.03	(1)		2.27			2.30			—			—			—			—
Year ended 3-31-2013		13.56		0.09	(1)		1.21			1.30			—			—			—			—
Year ended 3-31-2012		14.15		0.11	(1)		(0.59	)		(0.48	)		(0.11	)		—			—			(0.11	)
Year ended 3-31-2011		12.69		0.11	(1)		1.35			1.46			—			—			—			—
Year ended 3-31-2010		8.58		0.07	(1)		4.22			4.29			(0.14	)		—			(0.04	)		(0.18	)
Year ended 3-31-2009		13.02		0.14	(1)		(4.49	)		(4.35	)		(0.09	)		—	*		—			(0.09	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

142 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	16.93		15.33	%	$	266			1.63	%(4)		0.19	%(4)		1.77	%(4)		0.05	%(4)		26	%
Year ended 3-31-2013		14.68		9.23			196			1.86			0.05			1.91			—			26
Year ended 3-31-2012		13.44		-3.93			200			1.86			0.16			—			—			38
Year ended 3-31-2011		14.00		10.85			250			1.83			0.27			—			—			46
Year ended 3-31-2010		12.63		49.03			255			1.90			0.57			1.92			0.55			35
Year ended 3-31-2009		8.55		-33.87			207			1.81			1.26			—			—			43
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.84		14.70			5			2.79	(4)		-0.92	(4)		2.93	(4)		-1.06	(4)		26
Year ended 3-31-2013		13.81		8.06			6			2.94			-0.92			2.99			-0.97			26
Year ended 3-31-2012		12.78		-4.84			10			2.81			-0.76			—			—			38
Year ended 3-31-2011		13.43		9.90			16			2.74			-0.61			—			—			46
Year ended 3-31-2010		12.22		47.51			20			2.81			-0.29			—			—			35
Year ended 3-31-2009		8.31		-34.46			17			2.71			0.35			—			—			43
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		16.09		15.01			23			2.26	(4)		-0.42	(4)		2.40	(4)		-0.56	(4)		26
Year ended 3-31-2013		13.99		8.62			21			2.39			-0.44			2.44			-0.49			26
Year ended 3-31-2012		12.88		-4.45			26			2.42			-0.39			—			—			38
Year ended 3-31-2011		13.48		10.22			36			2.41			-0.28			—			—			46
Year ended 3-31-2010		12.23		48.10			43			2.46			0.08			—			—			35
Year ended 3-31-2009		8.30		-34.23			40			2.42			0.72			—			—			43
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		17.05		15.36			1			1.59	(4)		0.24	(4)		2.07	(4)		-0.24	(4)		26
Year ended 3-31-2013		14.78		9.56			1			1.59			0.28			2.35			-0.48			26
Year ended 3-31-2012		13.49		-3.66			1			1.59			0.42			2.36			-0.35			38
Year ended 3-31-2011		14.04		11.08			1			1.59			0.46			2.37			-0.32			46
Year ended 3-31-2010		12.64		49.41			—	*		1.59			0.75			2.63			-0.29			35
Year ended 3-31-2009		8.55		-33.87			—	*		1.93			0.98			2.72			0.19			43
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		17.32		15.62			6			1.17	(4)		0.66	(4)		1.31	(4)		0.52	(4)		26
Year ended 3-31-2013		14.98		9.82			4			1.24			0.70			1.29			0.65			26
Year ended 3-31-2012		13.64		-3.32			5			1.27			0.75			—			—			38
Year ended 3-31-2011		14.23		11.52			6			1.28			0.85			—			—			46
Year ended 3-31-2010		12.76		49.77			6			1.31			0.93			—			—			35
Year ended 3-31-2009		8.64		-33.46			4			1.25			1.25			—			—			43
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		16.92		15.26			—	*		1.73	(4)		0.11	(4)		1.87	(4)		-0.03	(4)		26
Year ended 3-31-2013(5)		14.68		7.78			—	*		1.66	(4)		-0.37	(4)		1.71	(4)		-0.42	(4)		26	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		17.16		15.48			11			1.32	(4)		0.32	(4)		1.46	(4)		0.18	(4)		26
Year ended 3-31-2013		14.86		9.59			4			1.47			0.74			1.63			0.58			26
Year ended 3-31-2012		13.56		-3.24			13			1.20			0.85			1.54			0.51			38
Year ended 3-31-2011		14.15		11.51			20			1.20			0.85			1.54			0.51			46
Year ended 3-31-2010		12.69		50.14			17			1.20			1.12			1.55			0.77			35
Year ended 3-31-2009		8.58		-33.44			9			1.19			1.59			1.50			1.28			43

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 143

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY DIVIDEND OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.20	$	0.10	(1)	$	1.27		$	1.37		$	(0.05	)	$	—	$	(0.05	)
Year ended 3-31-2013		15.70		0.23	(1)		1.48			1.71			(0.21	)		—		(0.21	)
Year ended 3-31-2012		16.14		0.18	(1)		(0.44	)		(0.26	)		(0.18	)		—		(0.18	)
Year ended 3-31-2011		13.61		0.13	(1)		2.55			2.68			(0.15	)		—		(0.15	)
Year ended 3-31-2010		9.86		0.12	(1)		3.74			3.86			(0.11	)		—		(0.11	)
Year ended 3-31-2009		16.05		0.12	(1)		(6.19	)		(6.07	)		(0.12	)		—		(0.12	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		16.99		0.03	(1)		1.24			1.27			—			—		—
Year ended 3-31-2013		15.54		0.09	(1)		1.48			1.57			(0.12	)		—		(0.12	)
Year ended 3-31-2012		15.98		0.04	(1)		(0.43	)		(0.39	)		(0.05	)		—		(0.05	)
Year ended 3-31-2011		13.49		0.00	(1)		2.52			2.52			(0.03	)		—		(0.03	)
Year ended 3-31-2010		9.79		0.00	(1)		3.71			3.71			(0.01	)		—		(0.01	)
Year ended 3-31-2009		15.93		0.00			(6.14	)		(6.14	)		—			—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		17.05		0.04	(1)		1.25			1.29			—			—		—
Year ended 3-31-2013		15.59		0.11	(1)		1.49			1.60			(0.14	)		—		(0.14	)
Year ended 3-31-2012		16.03		0.07	(1)		(0.43	)		(0.36	)		(0.08	)		—		(0.08	)
Year ended 3-31-2011		13.53		0.03	(1)		2.54			2.57			(0.07	)		—		(0.07	)
Year ended 3-31-2010		9.81		0.04	(1)		3.71			3.75			(0.03	)		—		(0.03	)
Year ended 3-31-2009		15.95		0.03	(1)		(6.14	)		(6.11	)		(0.03	)		—		(0.03	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		17.16		0.09	(1)		1.26			1.35			(0.04	)		—		(0.04	)
Year ended 3-31-2013		15.66		0.21	(1)		1.49			1.70			(0.20	)		—		(0.20	)
Year ended 3-31-2012		16.10		0.17	(1)		(0.44	)		(0.27	)		(0.17	)		—		(0.17	)
Year ended 3-31-2011		13.58		0.13	(1)		2.54			2.67			(0.15	)		—		(0.15	)
Year ended 3-31-2010		9.84		0.13	(1)		3.73			3.86			(0.12	)		—		(0.12	)
Year ended 3-31-2009		16.01		0.10			(6.17	)		(6.07	)		(0.10	)		—		(0.10	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		17.25		0.13	(1)		1.27			1.40			(0.08	)		—		(0.08	)
Year ended 3-31-2013		15.73		0.28	(1)		1.49			1.77			(0.25	)		—		(0.25	)
Year ended 3-31-2012		16.17		0.24	(1)		(0.45	)		(0.21	)		(0.23	)		—		(0.23	)
Year ended 3-31-2011		13.63		0.18	(1)		2.56			2.74			(0.20	)		—		(0.20	)
Year ended 3-31-2010		9.88		0.17	(1)		3.75			3.92			(0.17	)		—		(0.17	)
Year ended 3-31-2009		16.07		0.08	(1)		(6.10	)		(6.02	)		(0.17	)		—		(0.17	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.19		0.08	(1)		1.26			1.34			(0.03	)		—		(0.03	)
Year ended 3-31-2013(5)		15.79		0.01	(1)		1.39			1.40			—			—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		17.23		0.11	(1)		1.27			1.38			(0.06	)		—		(0.06	)
Year ended 3-31-2013		15.72		0.24	(1)		1.50			1.74			(0.23	)		—		(0.23	)
Year ended 3-31-2012		16.16		0.19	(1)		(0.44	)		(0.25	)		(0.19	)		—		(0.19	)
Year ended 3-31-2011		13.63		0.15	(1)		2.55			2.70			(0.17	)		—		(0.17	)
Year ended 3-31-2010		9.87		0.14	(1)		3.75			3.89			(0.13	)		—		(0.13	)
Year ended 3-31-2009		16.06		0.14	(1)		(6.19	)		(6.05	)		(0.14	)		—		(0.14	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

144 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average  Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	18.52		7.97	%	$	263			1.27	%(4)		1.11	%(4)		—	%		—	%		27	%
Year ended 3-31-2013		17.20		11.06			246			1.28			1.43			—			—			45
Year ended 3-31-2012		15.70		-1.54			261			1.29			1.21			—			—			37
Year ended 3-31-2011		16.14		19.85			252			1.33			0.94			—			—			45
Year ended 3-31-2010		13.61		39.29			182			1.40			1.02			—			—			46
Year ended 3-31-2009		9.86		-37.92			133			1.40			1.00			—			—			30
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		18.26		7.48			12			2.08	(4)		0.30	(4)		—			—			27
Year ended 3-31-2013		16.99		10.10			11			2.13			0.60			—			—			45
Year ended 3-31-2012		15.54		-2.35			15			2.18			0.30			—			—			37
Year ended 3-31-2011		15.98		18.69			16			2.25			0.02			—			—			45
Year ended 3-31-2010		13.49		37.88			10			2.44			-0.01			—			—			46
Year ended 3-31-2009		9.79		-38.54			9			2.43			-0.04			—			—			30
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		18.34		7.57			43			1.95	(4)		0.44	(4)		—			—			27
Year ended 3-31-2013		17.05		10.32			39			1.97			0.73			—			—			45
Year ended 3-31-2012		15.59		-2.23			43			2.00			0.48			—			—			37
Year ended 3-31-2011		16.03		19.07			50			2.02			0.24			—			—			45
Year ended 3-31-2010		13.53		38.30			43			2.09			0.35			—			—			46
Year ended 3-31-2009		9.81		-38.33			37			2.11			0.39			—			—			30
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		18.47		7.89			4			1.37	(4)		1.01	(4)		1.70	(4)		0.68	(4)		27
Year ended 3-31-2013		17.16		11.00			4			1.36			1.31			1.80			0.87			45
Year ended 3-31-2012		15.66		-1.61			3			1.37			1.14			1.92			0.59			37
Year ended 3-31-2011		16.10		19.80			3			1.37			0.89			2.03			0.23			45
Year ended 3-31-2010		13.58		39.33			2			1.37			1.06			2.35			0.08			46
Year ended 3-31-2009		9.84		-37.98			2			1.60			0.78			2.27			0.11			30
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		18.57		8.10			17			0.95	(4)		1.44	(4)		—			—			27
Year ended 3-31-2013		17.25		11.45			15			0.93			1.74			—			—			45
Year ended 3-31-2012		15.73		-1.18			14			0.94			1.60			—			—			37
Year ended 3-31-2011		16.17		20.32			7			0.97			1.31			—			—			45
Year ended 3-31-2010		13.63		39.80			6			0.98			1.51			—			—			46
Year ended 3-31-2009		9.88		-37.60			2			0.99			1.75			—			—			30
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		18.50		7.74			—	*		1.55	(4)		0.84	(4)		—			—			27
Year ended 3-31-2013(5)		17.19		8.93			—	*		1.51	(4)		0.23	(4)		—			—			45	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		18.55		8.00			11			1.19	(4)		1.18	(4)		—			—			27
Year ended 3-31-2013		17.23		11.19			12			1.18			1.51			—			—			45
Year ended 3-31-2012		15.72		-1.43			15			1.19			1.27			—			—			37
Year ended 3-31-2011		16.16		19.99			18			1.21			1.05			—			—			45
Year ended 3-31-2010		13.63		39.58			16			1.23			1.19			—			—			46
Year ended 3-31-2009		9.87		-37.79			15			1.24			1.08			—			—			30

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 145

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY EUROPEAN OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain  (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	24.70	$	0.12	(1)	$	2.04		$	2.16		$	—		$	—		$	—		$	—
Year ended 3-31-2013		22.89		0.07	(1)		1.83			1.90			(0.09	)		—			—			(0.09	)
Year ended 3-31-2012		24.61		0.07	(1)		(1.72	)		(1.65	)		(0.07	)		—			—			(0.07	)
Year ended 3-31-2011		21.44		(0.01	)(1)		3.24			3.23			(0.06	)		—			—			(0.06	)
Year ended 3-31-2010		15.08		0.27	(1)		6.43			6.70			(0.34	)		—			—			(0.34	)
Year ended 3-31-2009		34.70		1.18			(18.18	)		(17.00	)		(1.16	)		(1.44	)		(0.02	)		(2.62	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		23.16		(0.01	)(1)		1.89			1.88			—			—			—			—
Year ended 3-31-2013		21.62		(0.15	)(1)		1.69			1.54			—			—			—			—
Year ended 3-31-2012		23.40		(0.13	)(1)		(1.65	)		(1.78	)		—			—			—			—
Year ended 3-31-2011		20.53		(0.21	)(1)		3.08			2.87			—	*		—			—			—	*
Year ended 3-31-2010		14.50		0.10	(1)		6.14			6.24			(0.21	)		—			—			(0.21	)
Year ended 3-31-2009		33.35		1.06			(17.56	)		(16.50	)		(0.89	)		(1.44	)		(0.02	)		(2.35	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		23.53		0.03	(1)		1.95			1.98			—			—			—			—
Year ended 3-31-2013		21.86		(0.06	)(1)		1.73			1.67			—			—			—			—
Year ended 3-31-2012		23.58		(0.06	)(1)		(1.66	)		(1.72	)		—			—			—			—
Year ended 3-31-2011		20.63		(0.14	)(1)		3.11			2.97			(0.02	)		—			—			(0.02	)
Year ended 3-31-2010		14.55		0.18	(1)		6.17			6.35			(0.27	)		—			—			(0.27	)
Year ended 3-31-2009		33.49		1.02			(17.54	)		(16.52	)		(0.96	)		(1.44	)		(0.02	)		(2.42	)
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		24.84		0.17	(1)		2.07			2.24			—			—			—			—
Year ended 3-31-2013		23.02		0.18	(1)		1.84			2.02			(0.20	)		—			—			(0.20	)
Year ended 3-31-2012		24.76		0.18	(1)		(1.74	)		(1.56	)		(0.18	)		—			—			(0.18	)
Year ended 3-31-2011		21.48		0.09	(1)		3.28			3.37			(0.09	)		—			—			(0.09	)
Year ended 3-31-2010		15.08		0.39	(1)		6.44			6.83			(0.43	)		—			—			(0.43	)
Year ended 3-31-2009		34.73		1.09			(18.00	)		(16.91	)		(1.28	)		(1.44	)		(0.02	)		(2.74	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		24.87		0.19	(1)		2.07			2.26			—			—			—			—
Year ended 3-31-2013		23.04		0.26	(1)		1.81			2.07			(0.24	)		—			—			(0.24	)
Year ended 3-31-2012		24.82		0.21	(1)		(1.75	)		(1.54	)		(0.24	)		—			—			(0.24	)
Year ended 3-31-2011		21.51		0.12	(1)		3.29			3.41			(0.10	)		—			—			(0.10	)
Year ended 3-31-2010		15.09		0.44	(1)		6.43			6.87			(0.45	)		—			—			(0.45	)
Year ended 3-31-2009		34.80		0.95			(17.87	)		(16.92	)		(1.33	)		(1.44	)		(0.02	)		(2.79	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		24.70		0.11	(1)		2.06			2.17			—			—			—			—
Year ended 3-31-2013(5)		24.16		0.00	(1)		0.54			0.54			—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		24.86		0.15	(1)		2.08			2.23			—			—			—			—
Year ended 3-31-2013		23.04		0.15	(1)		1.85			2.00			(0.18	)		—			—			(0.18	)
Year ended 3-31-2012		24.75		0.17	(1)		(1.75	)		(1.58	)		(0.13	)		—			—			(0.13	)
Year ended 3-31-2011		21.50		0.09	(1)		3.24			3.33			(0.08	)		—			—			(0.08	)
Year ended 3-31-2010		15.10		0.33	(1)		6.48			6.81			(0.41	)		—			—			(0.41	)
Year ended 3-31-2009		34.75		1.20			(18.14	)		(16.94	)		(1.25	)		(1.44	)		(0.02	)		(2.71	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) Class is closed to investment.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

146 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	26.86		8.75	%	$	158			1.80	%(3)		0.92	%(3)		19	%
Year ended 3-31-2013		24.70		8.31			162			1.81			0.32			71
Year ended 3-31-2012		22.89		-6.67			167			1.84			0.33			49
Year ended 3-31-2011		24.61		15.07			197			1.82			-0.07			66
Year ended 3-31-2010		21.44		44.42			189			1.98			1.35			100
Year ended 3-31-2009		15.08		-49.74			136			1.84			4.03			88
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		25.04		8.12			3			2.95	(3)		-0.11	(3)		19
Year ended 3-31-2013		23.16		7.12			3			2.89			-0.68			71
Year ended 3-31-2012		21.62		-7.61			5			2.84			-0.63			49
Year ended 3-31-2011		23.40		13.99			8			2.81			-1.01			66
Year ended 3-31-2010		20.53		43.02			9			2.96			0.47			100
Year ended 3-31-2009		14.50		-50.19			8			2.73			3.59			88
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		25.51		8.42			9			2.42	(3)		0.27	(3)		19
Year ended 3-31-2013		23.53		7.64			9			2.43			-0.26			71
Year ended 3-31-2012		21.86		-7.29			11			2.47			-0.26			49
Year ended 3-31-2011		23.58		14.41			15			2.46			-0.65			66
Year ended 3-31-2010		20.63		43.62			19			2.55			0.87			100
Year ended 3-31-2009		14.55		-50.07			16			2.47			3.55			88
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		27.08		9.02			—	*		1.34	(3)		1.33	(3)		19
Year ended 3-31-2013		24.84		8.83			—	*		1.31			0.79			71
Year ended 3-31-2012		23.02		-6.18			—	*		1.32			0.80			49
Year ended 3-31-2011		24.76		15.71			—	*		1.32			0.40			66
Year ended 3-31-2010		21.48		45.28			—	*		1.37			1.92			100
Year ended 3-31-2009		15.08		-49.46			—	*		1.36			4.14			88
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		27.13		9.09			37			1.21	(3)		1.49	(3)		19
Year ended 3-31-2013		24.87		8.96			37			1.18			1.13			71
Year ended 3-31-2012		23.04		-6.06			53			1.19			0.94			49
Year ended 3-31-2011		24.82		15.87			43			1.18			0.52			66
Year ended 3-31-2010		21.51		45.52			34			1.23			2.15			100
Year ended 3-31-2009		15.09		-49.39			23			1.22			4.08			88
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		26.87		8.74			—	*		1.81	(3)		0.86	(3)		19
Year ended 3-31-2013(5)		24.70		2.28			—	*		1.74	(3)		0.02	(3)		71	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		27.09		8.97			2			1.46	(3)		1.14	(3)		19
Year ended 3-31-2013		24.86		8.71			1			1.42			0.66			71
Year ended 3-31-2012		23.04		-6.30			2			1.45			0.75			49
Year ended 3-31-2011		24.75		15.52			2			1.45			0.38			66
Year ended 3-31-2010		21.50		45.09			3			1.51			1.74			100
Year ended 3-31-2009		15.10		-49.52			2			1.49			4.27			88

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 147

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	10.26	$	0.17	$	(0.27	)	$	(0.10	)	$	(0.16	)	$	—		$	(0.16	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)
Year ended 3-31-2012		10.35		0.39		(0.11	)		0.28			(0.39	)		(0.04	)		(0.43	)
Year ended 3-31-2011		10.30		0.36		0.08			0.44			(0.33	)		(0.06	)		(0.39	)
Year ended 3-31-2010		9.39		0.37		0.82			1.19			(0.28	)		—			(0.28	)
Year ended 3-31-2009(5)		10.00		0.19		(0.53	)		(0.34	)		(0.15	)		(0.12	)		(0.27	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.25		0.13		(0.27	)		(0.14	)		(0.12	)		—			(0.12	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Year ended 3-31-2012		10.35		0.31		(0.12	)		0.19			(0.31	)		(0.04	)		(0.35	)
Year ended 3-31-2011		10.29		0.28		0.09			0.37			(0.25	)		(0.06	)		(0.31	)
Year ended 3-31-2010		9.38		0.32		0.80			1.12			(0.21	)		—			(0.21	)
Year ended 3-31-2009(5)		10.00		0.16		(0.58	)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.25		0.13		(0.26	)		(0.13	)		(0.12	)		—			(0.12	)
Year ended 3-31-2013		10.19		0.32		0.11			0.43			(0.34	)		(0.03	)		(0.37	)
Year ended 3-31-2012		10.35		0.31		(0.12	)		0.19			(0.31	)		(0.04	)		(0.35	)
Year ended 3-31-2011		10.29		0.28		0.09			0.37			(0.25	)		(0.06	)		(0.31	)
Year ended 3-31-2010		9.38		0.30		0.82			1.12			(0.21	)		—			(0.21	)
Year ended 3-31-2009(5)		10.00		0.16		(0.58	)		(0.42	)		(0.08	)		(0.12	)		(0.20	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.25		0.18		(0.26	)		(0.08	)		(0.17	)		—			(0.17	)
Year ended 3-31-2013		10.19		0.42		0.11			0.53			(0.44	)		(0.03	)		(0.47	)
Year ended 3-31-2012		10.35		0.41		(0.11	)		0.30			(0.42	)		(0.04	)		(0.46	)
Year ended 3-31-2011		10.30		0.39		0.08			0.47			(0.36	)		(0.06	)		(0.42	)
Year ended 3-31-2010		9.39		0.40		0.82			1.22			(0.31	)		—			(0.31	)
Year ended 3-31-2009(5)		10.00		0.25		(0.57	)		(0.32	)		(0.17	)		(0.12	)		(0.29	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.24		0.15		(0.27	)		(0.12	)		(0.14	)		—			(0.14	)
Year ended 3-31-2013(7)		10.17		0.09		0.04			0.13			(0.06	)		—			(0.06	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.26		0.17		(0.27	)		(0.10	)		(0.16	)		—			(0.16	)
Year ended 3-31-2013		10.20		0.40		0.11			0.51			(0.42	)		(0.03	)		(0.45	)
Year ended 3-31-2012		10.36		0.39		(0.12	)		0.27			(0.39	)		(0.04	)		(0.43	)
Year ended 3-31-2011		10.30		0.36		0.09			0.45			(0.33	)		(0.06	)		(0.39	)
Year ended 3-31-2010		9.39		0.37		0.82			1.19			(0.28	)		—			(0.28	)
Year ended 3-31-2009(5)		10.00		0.23		(0.57	)		(0.34	)		(0.15	)		(0.12	)		(0.27	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

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

(6) For the fiscal year ended March 31, 2009.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the fiscal year ended March 31, 2013.

148 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income  to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013  (unaudited)	$	10.00		-0.87	%	$	175			0.99	%(4)		3.38	%(4)		1.24	%(4)		3.13	%(4)		9	%
Year ended 3-31-2013		10.26		5.12			174			0.99			3.92			1.24			3.67			26
Year ended 3-31-2012		10.20		2.74			158			0.99			3.81			1.25			3.55			26
Year ended 3-31-2011		10.35		4.34			141			0.99			3.50			1.25			3.24			26
Year ended 3-31-2010		10.30		12.84			89			0.99			3.95			1.32			3.62			19
Year ended 3-31-2009(5)		9.39		-3.35			32			1.01	(4)		2.87	(4)		1.56	(4)		2.32	(4)		18	(6)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		9.99		-1.33			6			1.74	(4)		2.63	(4)		2.08	(4)		2.29	(4)		9
Year ended 3-31-2013		10.25		4.34			7			1.74			3.17			2.15			2.76			26
Year ended 3-31-2012		10.19		1.96			6			1.74			3.05			2.26			2.53			26
Year ended 3-31-2011		10.35		3.66			7			1.74			2.76			2.06			2.44			26
Year ended 3-31-2010		10.29		12.01			6			1.74			3.22			2.00			2.96			19
Year ended 3-31-2009(5)		9.38		-4.11			6			1.76	(4)		1.85	(4)		2.16	(4)		1.45	(4)		18	(6)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.00		-1.23			39			1.74	(4)		2.63	(4)		1.87	(4)		2.50	(4)		9
Year ended 3-31-2013		10.25		4.34			44			1.74			3.18			1.90			3.02			26
Year ended 3-31-2012		10.19		1.96			41			1.74			3.06			1.93			2.87			26
Year ended 3-31-2011		10.35		3.66			44			1.74			2.76			1.92			2.58			26
Year ended 3-31-2010		10.29		12.01			33			1.74			3.20			1.97			2.97			19
Year ended 3-31-2009(5)		9.38		-4.10			13			1.74	(4)		2.03	(4)		2.17	(4)		1.61	(4)		18	(6)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.00		-0.74			51			0.74	(4)		3.63	(4)		0.88	(4)		3.49	(4)		9
Year ended 3-31-2013		10.25		5.39			59			0.74			4.13			0.89			3.97			26
Year ended 3-31-2012		10.19		3.00			28			0.74			4.07			0.91			3.90			26
Year ended 3-31-2011		10.35		4.61			25			0.74			3.76			0.92			3.58			26
Year ended 3-31-2010		10.30		13.13			14			0.74			4.20			0.96			3.98			19
Year ended 3-31-2009(5)		9.39		-3.11			5			0.76	(4)		2.80	(4)		1.21	(4)		2.35	(4)		18	(6)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		9.98		-1.21			—	*		1.49	(4)		2.89	(4)		—			—			9
Year ended 3-31-2013(7)		10.24		1.30			—	*		1.45	(4)		3.10	(4)		—			—			26	(8)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.00		-0.96			5			0.99	(4)		3.38	(4)		1.13	(4)		3.24	(4)		9
Year ended 3-31-2013		10.26		5.12			5			0.99			3.94			1.14			3.78			26
Year ended 3-31-2012		10.20		2.74			7			0.99			3.78			1.16			3.61			26
Year ended 3-31-2011		10.36		4.44			15			0.99			3.51			1.17			3.33			26
Year ended 3-31-2010		10.30		12.84			14			0.99			3.96			1.22			3.73			19
Year ended 3-31-2009(5)		9.39		-3.34			8			1.01	(4)		2.65	(4)		1.47	(4)		2.19	(4)		18	(6)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 149

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL EQUITY INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net  Realized and Unrealized Gain on Investments		Total from Investment Operations		Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	11.82	$	0.29	$	0.71	$	1.00	$	(0.26	)	$	—		$	(0.26	)
Year ended 3-31-2013(5)		10.00		0.35		1.84		2.19		(0.28	)		(0.09	)		(0.37	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.81		0.25		0.71		0.96		(0.21	)		—			(0.21	)
Year ended 3-31-2013(5)		10.00		0.27		1.85		2.12		(0.22	)		(0.09	)		(0.31	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		11.81		0.25		0.72		0.97		(0.22	)		—			(0.22	)
Year ended 3-31-2013(5)		10.00		0.27		1.85		2.12		(0.22	)		(0.09	)		(0.31	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		11.82		0.31		0.72		1.03		(0.28	)		—			(0.28	)
Year ended 3-31-2013(5)		10.00		0.37		1.85		2.22		(0.31	)		(0.09	)		(0.40	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		11.82		0.27		0.72		0.99		(0.24	)		—			(0.24	)
Year ended 3-31-2013(6)		11.28		0.11		0.46		0.57		(0.03	)		—			(0.03	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		11.82		0.30		0.72		1.02		(0.27	)		—			(0.27	)
Year ended 3-31-2013(5)		10.00		0.34		1.86		2.20		(0.29	)		(0.09	)		(0.38	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from June 4, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

150 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	12.56		8.56	%	$	129			1.30	%(4)		4.68	%(4)		1.55	%(4)		4.43	%(4)		47	%
Year ended 3-31-2013(5)		11.82		22.15			59			1.29	(4)		3.82	(4)		1.68	(4)		3.43	(4)		73
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		12.56		8.21			2			2.06	(4)		4.03	(4)		2.09	(4)		4.00	(4)		47
Year ended 3-31-2013(5)		11.81		21.41			1			2.01	(4)		2.89	(4)		2.21	(4)		2.69	(4)		73
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		12.56		8.30			5			2.00	(4)		4.09	(4)		2.12	(4)		3.97	(4)		47
Year ended 3-31-2013(5)		11.81		21.46			4			1.95	(4)		2.95	(4)		2.15	(4)		2.75	(4)		73
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		12.57		8.85			13			0.94	(4)		5.18	(4)		1.12	(4)		5.00	(4)		47
Year ended 3-31-2013(5)		11.82		22.47			12			0.94	(4)		3.95	(4)		1.29	(4)		3.60	(4)		73
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		12.57		8.44			—	*		1.69	(4)		4.42	(4)		1.72	(4)		4.39	(4)		47
Year ended 3-31-2013(6)		11.82		5.05			—	*		1.67	(4)		3.36	(4)		1.87	(4)		3.16	(4)		73
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		12.57		8.71			4			1.19	(4)		4.92	(4)		1.37	(4)		4.74	(4)		47
Year ended 3-31-2013(5)		11.82		22.25			4			1.18	(4)		3.70	(4)		1.54	(4)		3.34	(4)		73

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 151

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY GLOBAL INCOME ALLOCATION FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	14.79	$	0.33	(1)	$	0.04		$	0.37		$	(0.29	)	$	—		$	(0.29	)
Year ended 3-31-2013		14.52		0.62	(1)		0.33			0.95			(0.68	)		—			(0.68	)
Year ended 3-31-2012		15.19		0.57	(1)		(0.57	)		0.00			(0.67	)		—			(0.67	)
Year ended 3-31-2011		13.59		0.36	(1)		1.54			1.90			(0.30	)		—			(0.30	)
Year ended 3-31-2010		9.56		0.26	(1)		3.79			4.05			(0.02	)		—			(0.02	)
Year ended 3-31-2009		16.36		0.33			(6.08	)		(5.75	)		(0.57	)		(0.48	)		(1.05	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		14.55		0.26	(1)		0.04			0.30			(0.22	)		—			(0.22	)
Year ended 3-31-2013		14.29		0.48	(1)		0.32			0.80			(0.54	)		—			(0.54	)
Year ended 3-31-2012		14.93		0.43	(1)		(0.57	)		(0.14	)		(0.50	)		—			(0.50	)
Year ended 3-31-2011		13.40		0.23	(1)		1.51			1.74			(0.21	)		—			(0.21	)
Year ended 3-31-2010		9.52		0.12	(1)		3.76			3.88			—	*		—			—	*
Year ended 3-31-2009		16.31		0.16			(6.01	)		(5.85	)		(0.46	)		(0.48	)		(0.94	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.64		0.28	(1)		0.03			0.31			(0.24	)		—			(0.24	)
Year ended 3-31-2013		14.38		0.52	(1)		0.32			0.84			(0.58	)		—			(0.58	)
Year ended 3-31-2012		15.02		0.49	(1)		(0.58	)		(0.09	)		(0.55	)		—			(0.55	)
Year ended 3-31-2011		13.46		0.28	(1)		1.52			1.80			(0.24	)		—			(0.24	)
Year ended 3-31-2010		9.53		0.18	(1)		3.77			3.95			(0.02	)		—			(0.02	)
Year ended 3-31-2009		16.33		0.20			(6.03	)		(5.83	)		(0.49	)		(0.48	)		(0.97	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		14.79		0.34	(1)		0.04			0.38			(0.29	)		—			(0.29	)
Year ended 3-31-2013		14.52		0.62	(1)		0.33			0.95			(0.68	)		—			(0.68	)
Year ended 3-31-2012		15.20		0.59	(1)		(0.58	)		0.01			(0.69	)		—			(0.69	)
Year ended 3-31-2011		13.59		0.38	(1)		1.54			1.92			(0.31	)		—			(0.31	)
Year ended 3-31-2010		9.54		0.27	(1)		3.80			4.07			(0.02	)		—			(0.02	)
Year ended 3-31-2009		16.33		0.28	(1)		(6.05	)		(5.77	)		(0.54	)		(0.48	)		(1.02	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.90		0.37	(1)		0.04			0.41			(0.32	)		—			(0.32	)
Year ended 3-31-2013		14.62		0.70	(1)		0.32			1.02			(0.74	)		—			(0.74	)
Year ended 3-31-2012		15.31		0.64	(1)		(0.58	)		0.06			(0.75	)		—			(0.75	)
Year ended 3-31-2011		13.67		0.45	(1)		1.53			1.98			(0.34	)		—			(0.34	)
Year ended 3-31-2010		9.57		0.33	(1)		3.80			4.13			(0.03	)		—			(0.03	)
Year ended 3-31-2009		16.38		0.35	(1)��		(6.05	)		(5.70	)		(0.63	)		(0.48	)		(1.11	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		14.79		0.32	(1)		0.04			0.36			(0.28	)		—			(0.28	)
Year ended 3-31-2013(5)		14.37		0.15	(1)		0.32			0.47			(0.05	)		—			(0.05	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.85		0.35	(1)		0.03			0.38			(0.30	)		—			(0.30	)
Year ended 3-31-2013		14.57		0.62	(1)		0.36			0.98			(0.70	)		—			(0.70	)
Year ended 3-31-2012		15.25		0.59	(1)		(0.57	)		0.02			(0.70	)		—			(0.70	)
Year ended 3-31-2011		13.63		0.41	(1)		1.53			1.94			(0.32	)		—			(0.32	)
Year ended 3-31-2010		9.57		0.28	(1)		3.80			4.08			(0.02	)		—			(0.02	)
Year ended 3-31-2009		16.38		0.45			(6.19	)		(5.74	)		(0.59	)		(0.48	)		(1.07	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

152 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	14.87		2.55	%	$	397			1.37	%(4)		4.49	%(4)		1.38	%(4)		4.48	%(4)		43	%
Year ended 3-31-2013		14.79		6.84			308			1.35			4.38			1.51			4.22			109
Year ended 3-31-2012		14.52		0.23			228			1.44			3.94			—			—			61
Year ended 3-31-2011		15.19		14.08			213			1.44			2.56			—			—			71
Year ended 3-31-2010		13.59		42.40			183			1.51			2.05			—			—			131
Year ended 3-31-2009		9.56		-36.02			128			1.46			2.45			—			—			22
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		14.63		2.04			7			2.31	(4)		3.58	(4)		—			—			43
Year ended 3-31-2013		14.55		5.90			7			2.31			3.48			2.54			3.25			109
Year ended 3-31-2012		14.29		-0.75			7			2.41			3.05			—			—			61
Year ended 3-31-2011		14.93		13.04			8			2.41			1.62			—			—			71
Year ended 3-31-2010		13.40		40.79			8			2.56			1.04			—			—			131
Year ended 3-31-2009		9.52		-36.62			6			2.44			1.48			—			—			22
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.71		2.17			27			2.02	(4)		3.85	(4)		—			—			43
Year ended 3-31-2013		14.64		6.13			25			2.02			3.70			2.12			3.60			109
Year ended 3-31-2012		14.38		-0.41			19			2.10			3.41			—			—			61
Year ended 3-31-2011		15.02		13.42			23			2.10			1.93			—			—			71
Year ended 3-31-2010		13.46		41.42			24			2.15			1.44			—			—			131
Year ended 3-31-2009		9.53		-36.50			20			2.13			1.76			—			—			22
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		14.88		2.56			2			1.33	(4)		4.55	(4)		1.74	(4)		4.14	(4)		43
Year ended 3-31-2013		14.79		6.94			2			1.33			4.42			2.03			3.72			109
Year ended 3-31-2012		14.52		0.30			2			1.33			4.07			1.90			3.50			61
Year ended 3-31-2011		15.20		14.25			2			1.33			2.65			2.05			1.93			71
Year ended 3-31-2010		13.59		42.72			1			1.33			2.19			2.35			1.17			131
Year ended 3-31-2009		9.54		-36.11			1			1.63			2.10			1.84			1.90			22
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.99		2.83			29			0.93	(4)		4.96	(4)		0.95	(4)		4.94	(4)		43
Year ended 3-31-2013		14.90		7.33			30			0.91			4.98			1.03			4.86			109
Year ended 3-31-2012		14.62		0.67			43			0.99			4.39			—			—			61
Year ended 3-31-2011		15.31		14.63			42			0.99			3.08			—			—			71
Year ended 3-31-2010		13.67		43.15			45			1.00			2.63			—			—			131
Year ended 3-31-2009		9.57		-35.72			34			0.99			2.72			—			—			22
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		14.87		2.45			—	*		1.56	(4)		4.33	(4)		—			—			43
Year ended 3-31-2013(5)		14.79		3.30			—	*		1.52	(4)		3.73	(4)		1.53	(4)		3.72	(4)		109	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.93		2.64			6			1.17	(4)		4.72	(4)		—			—			43
Year ended 3-31-2013		14.85		7.08			5			1.17			4.40			1.29			4.28			109
Year ended 3-31-2012		14.57		0.38			4			1.26			4.12			—			—			61
Year ended 3-31-2011		15.25		14.33			6			1.25			2.80			—			—			71
Year ended 3-31-2010		13.63		42.69			6			1.26			2.10			—			—			131
Year ended 3-31-2009		9.57		-35.95			1			1.33			2.75			—			—			22

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 153

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY HIGH INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	8.72	$	0.31	(1)	$	(0.08	)	$	0.23		$	(0.31	)	$	—		$	(0.31	)
Year ended 3-31-2013		8.30		0.63	(1)		0.52			1.15			(0.63	)		(0.10	)		(0.73	)
Year ended 3-31-2012		8.46		0.64	(1)		0.02			0.66			(0.65	)		(0.17	)		(0.82	)
Year ended 3-31-2011		8.32		0.69	(1)		0.50			1.19			(0.69	)		(0.36	)		(1.05	)
Year ended 3-31-2010		6.58		0.64	(1)		1.93			2.57			(0.66	)		(0.17	)		(0.83	)
Year ended 3-31-2009		8.01		0.65			(1.46	)		(0.81	)		(0.62	)		—			(0.62	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.27	(1)		(0.07	)		0.20			(0.28	)		—			(0.28	)
Year ended 3-31-2013		8.30		0.57	(1)		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Year ended 3-31-2012		8.46		0.58	(1)		0.02			0.60			(0.59	)		(0.17	)		(0.76	)
Year ended 3-31-2011		8.32		0.62	(1)		0.50			1.12			(0.62	)		(0.36	)		(0.98	)
Year ended 3-31-2010		6.57		0.57	(1)		1.94			2.51			(0.59	)		(0.17	)		(0.76	)
Year ended 3-31-2009		8.01		0.59			(1.48	)		(0.89	)		(0.55	)		—			(0.55	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.27	(1)		(0.07	)		0.20			(0.28	)		—			(0.28	)
Year ended 3-31-2013		8.30		0.57	(1)		0.52			1.09			(0.57	)		(0.10	)		(0.67	)
Year ended 3-31-2012		8.46		0.58	(1)		0.03			0.61			(0.60	)		(0.17	)		(0.77	)
Year ended 3-31-2011		8.32		0.63	(1)		0.50			1.13			(0.63	)		(0.36	)		(0.99	)
Year ended 3-31-2010		6.58		0.60	(1)		1.92			2.52			(0.61	)		(0.17	)		(0.78	)
Year ended 3-31-2009		8.01		0.58			(1.44	)		(0.86	)		(0.57	)		—			(0.57	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.29	(1)		(0.08	)		0.21			(0.29	)		—			(0.29	)
Year ended 3-31-2013		8.30		0.59	(1)		0.52			1.11			(0.59	)		(0.10	)		(0.69	)
Year ended 3-31-2012		8.46		0.62	(1)		0.01			0.63			(0.62	)		(0.17	)		(0.79	)
Year ended 3-31-2011		8.32		0.67	(1)		0.50			1.17			(0.67	)		(0.36	)		(1.03	)
Year ended 3-31-2010		6.57		0.61	(1)		1.95			2.56			(0.64	)		(0.17	)		(0.81	)
Year ended 3-31-2009		8.00		0.63			(1.46	)		(0.83	)		(0.60	)		—			(0.60	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.32	(1)		(0.08	)		0.24			(0.32	)		—			(0.32	)
Year ended 3-31-2013		8.30		0.65	(1)		0.52			1.17			(0.65	)		(0.10	)		(0.75	)
Year ended 3-31-2012		8.46		0.66	(1)		0.03			0.69			(0.68	)		(0.17	)		(0.85	)
Year ended 3-31-2011		8.32		0.72	(1)		0.50			1.22			(0.72	)		(0.36	)		(1.08	)
Year ended 3-31-2010		6.58		0.69	(1)		1.91			2.60			(0.69	)		(0.17	)		(0.86	)
Year ended 3-31-2009		8.01		0.68			(1.45	)		(0.77	)		(0.66	)		—			(0.66	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.28	(1)		(0.07	)		0.21			(0.29	)		—			(0.29	)
Year ended 3-31-2013(5)		8.54		0.16	(1)		0.17			0.33			(0.15	)		—			(0.15	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		8.72		0.31	(1)		(0.08	)		0.23			(0.31	)		—			(0.31	)
Year ended 3-31-2013		8.30		0.63	(1)		0.52			1.15			(0.63	)		(0.10	)		(0.73	)
Year ended 3-31-2012		8.46		0.64	(1)		0.03			0.67			(0.66	)		(0.17	)		(0.83	)
Year ended 3-31-2011		8.32		0.69	(1)		0.50			1.19			(0.69	)		(0.36	)		(1.05	)
Year ended 3-31-2010		6.58		0.66	(1)		1.92			2.58			(0.67	)		(0.17	)		(0.84	)
Year ended 3-31-2009		8.02		0.73	(1)		(1.53	)		(0.80	)		(0.64	)		—			(0.64	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

154 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	8.64		2.69	%	$	3,351			0.93	%(4)		7.03	%(4)		—	%		—	%		46	%
Year ended 3-31-2013		8.72		14.50			3,080			0.93			7.42			—			—			68
Year ended 3-31-2012		8.30		8.47			1,847			1.00			7.87			—			—			80
Year ended 3-31-2011		8.46		15.21			1,027			1.08			8.22			—			—			89
Year ended 3-31-2010		8.32		40.44			649			1.13			8.24			—			—			84
Year ended 3-31-2009		6.58		-10.29			231			1.34			9.33			—			—			77
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.30			161			1.68	(4)		6.28	(4)		—			—			46
Year ended 3-31-2013		8.72		13.64			152			1.69			6.65			—			—			68
Year ended 3-31-2012		8.30		7.63			90			1.79			7.10			—			—			80
Year ended 3-31-2011		8.46		14.31			50			1.88			7.43			—			—			89
Year ended 3-31-2010		8.32		39.36			31			2.00			7.36			—			—			84
Year ended 3-31-2009		6.57		-11.37			10			2.46			8.16			—			—			77
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.32			1,614			1.65	(4)		6.32	(4)		—			—			46
Year ended 3-31-2013		8.72		13.71			1,501			1.64			6.70			—			—			68
Year ended 3-31-2012		8.30		7.73			850			1.70			7.16			—			—			80
Year ended 3-31-2011		8.46		14.42			416			1.77			7.52			—			—			89
Year ended 3-31-2010		8.32		39.45			249			1.83			7.50			—			—			84
Year ended 3-31-2009		6.58		-10.99			54			2.10			8.72			—			—			77
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.46			9			1.36	(4)		6.61	(4)		—			—			46
Year ended 3-31-2013		8.72		13.96			8			1.36			6.99			1.38			6.97			68
Year ended 3-31-2012		8.30		8.08			5			1.36			7.55			1.45			7.47			80
Year ended 3-31-2011		8.46		14.86			4			1.36			7.95			1.59			7.72			89
Year ended 3-31-2010		8.32		40.29			2			1.36			8.02			1.83			7.55			84
Year ended 3-31-2009		6.57		-10.52			1			1.60			9.12			1.81			8.91			77
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.81			3,023			0.70	(4)		7.27	(4)		—			—			46
Year ended 3-31-2013		8.72		14.77			2,513			0.70			7.64			—			—			68
Year ended 3-31-2012		8.30		8.78			1,255			0.73			8.07			—			—			80
Year ended 3-31-2011		8.46		15.56			384			0.79			8.49			—			—			89
Year ended 3-31-2010		8.32		40.89			199			0.82			8.48			—			—			84
Year ended 3-31-2009		6.58		-9.89			9			0.90			10.28			—			—			77
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.51			5			1.29	(4)		6.63	(4)		—			—			46
Year ended 3-31-2013(5)		8.72		3.94			—	*		1.27	(4)		6.61	(4)		—			—			68	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		8.64		2.69			889			0.93	(4)		7.03	(4)		0.95	(4)		7.01	(4)		46
Year ended 3-31-2013		8.72		14.50			835			0.93			7.41			0.95			7.39			68
Year ended 3-31-2012		8.30		8.51			464			0.99			7.84			—			—			80
Year ended 3-31-2011		8.46		15.25			192			1.05			8.22			—			—			89
Year ended 3-31-2010		8.32		40.49			103			1.09			8.28			—			—			84
Year ended 3-31-2009		6.58		-10.23			38			1.14			9.69			—			—			77

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 155

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL CORE EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	15.98	$	0.16	(1)	$	1.70		$	1.86		$	—		$	—		$	—
Year ended 3-31-2013		15.26		0.21	(1)		0.73			0.94			(0.22	)		—			(0.22	)
Year ended 3-31-2012		17.14		0.27	(1)		(1.66	)		(1.39	)		(0.27	)		(0.22	)		(0.49	)
Year ended 3-31-2011		14.84		0.18	(1)		2.27			2.45			(0.15	)		—			(0.15	)
Year ended 3-31-2010		9.54		0.13	(1)		5.27			5.40			(0.10	)		—			(0.10	)
Year ended 3-31-2009		17.11		0.17			(7.22	)		(7.05	)		(0.19	)		(0.33	)		(0.52	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		14.49		0.09	(1)		1.52			1.61			—			—			—
Year ended 3-31-2013		13.86		0.07	(1)		0.66			0.73			(0.10	)		—			(0.10	)
Year ended 3-31-2012		15.64		0.14	(1)		(1.53	)		(1.39	)		(0.17	)		(0.22	)		(0.39	)
Year ended 3-31-2011		13.59		0.05	(1)		2.06			2.11			(0.06	)		—			(0.06	)
Year ended 3-31-2010		8.77		0.02	(1)		4.82			4.84			(0.02	)		—			(0.02	)
Year ended 3-31-2009		15.74		0.05			(6.62	)		(6.57	)		(0.07	)		(0.33	)		(0.40	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.51		0.10	(1)		1.53			1.63			—			—			—
Year ended 3-31-2013		13.88		0.11	(1)		0.65			0.76			(0.13	)		—			(0.13	)
Year ended 3-31-2012		15.65		0.17	(1)		(1.53	)		(1.36	)		(0.19	)		(0.22	)		(0.41	)
Year ended 3-31-2011		13.58		0.07	(1)		2.08			2.15			(0.08	)		—			(0.08	)
Year ended 3-31-2010		8.76		0.05	(1)		4.82			4.87			(0.05	)		—			(0.05	)
Year ended 3-31-2009		15.72		0.10			(6.63	)		(6.53	)		(0.10	)		(0.33	)		(0.43	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		16.07		0.15	(1)		1.70			1.85			—			—			—
Year ended 3-31-2013		15.33		0.20	(1)		0.75			0.95			(0.21	)		—			(0.21	)
Year ended 3-31-2012		17.21		0.27	(1)		(1.67	)		(1.40	)		(0.26	)		(0.22	)		(0.48	)
Year ended 3-31-2011		14.90		0.17	(1)		2.29			2.46			(0.15	)		—			(0.15	)
Year ended 3-31-2010		9.59		0.16	(1)		5.27			5.43			(0.12	)		—			(0.12	)
Year ended 3-31-2009		17.05		0.16			(7.20	)		(7.04	)		(0.09	)		(0.33	)		(0.42	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		16.07		0.19	(1)		1.70			1.89			—			—			—
Year ended 3-31-2013		15.33		0.27	(1)		0.75			1.02			(0.28	)		—			(0.28	)
Year ended 3-31-2012		17.22		0.32	(1)		(1.66	)		(1.34	)		(0.33	)		(0.22	)		(0.55	)
Year ended 3-31-2011		14.90		0.23	(1)		2.30			2.53			(0.21	)		—			(0.21	)
Year ended 3-31-2010		9.58		0.20	(1)		5.30			5.50			(0.18	)		—			(0.18	)
Year ended 3-31-2009		17.20		0.20			(7.23	)		(7.03	)		(0.26	)		(0.33	)		(0.59	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		15.98		0.14	(1)		1.69			1.83			—			—			—
Year ended 3-31-2013(5)		15.40		0.04	(1)		0.54			0.58			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		16.08		0.18	(1)		1.69			1.87			—			—			—
Year ended 3-31-2013		15.35		0.24	(1)		0.73			0.97			(0.24	)		—			(0.24	)
Year ended 3-31-2012		17.23		0.29	(1)		(1.66	)		(1.37	)		(0.29	)		(0.22	)		(0.51	)
Year ended 3-31-2011		14.92		0.20	(1)		2.28			2.48			(0.17	)		—			(0.17	)
Year ended 3-31-2010		9.59		0.04	(1)		5.43			5.47			(0.14	)		—			(0.14	)
Year ended 3-31-2009		17.19		0.19			(7.24	)		(7.05	)		(0.22	)		(0.33	)		(0.55	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

156 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.84		11.57	%	$	850			1.42	%(4)		1.89	%(4)		—	%		—	%		45	%
Year ended 3-31-2013		15.98		6.30			694			1.46			1.43			—			—			81
Year ended 3-31-2012		15.26		-7.86			717			1.49			1.75			—			—			88
Year ended 3-31-2011		17.14		16.60			673			1.46			1.21			—			—			101
Year ended 3-31-2010		14.84		56.68			430			1.59			1.09			—			—			94
Year ended 3-31-2009		9.54		-41.28			152			1.64			1.44			—			—			108
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		16.10		11.04			13			2.25	(4)		1.13	(4)		—			—			45
Year ended 3-31-2013		14.49		5.37			12			2.35			0.56			—			—			81
Year ended 3-31-2012		13.86		-8.68			15			2.36			1.02			—			—			88
Year ended 3-31-2011		15.64		15.56			20			2.35			0.40			—			—			101
Year ended 3-31-2010		13.59		55.20			17			2.54			0.19			—			—			94
Year ended 3-31-2009		8.77		-41.84			8			2.55			0.59			—			—			108
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		16.14		11.16			103			2.10	(4)		1.27	(4)		—			—			45
Year ended 3-31-2013		14.51		5.61			98			2.10			0.81			—			—			81
Year ended 3-31-2012		13.88		-8.45			113			2.13			1.18			—			—			88
Year ended 3-31-2011		15.65		15.88			132			2.13			0.55			—			—			101
Year ended 3-31-2010		13.58		55.61			85			2.21			0.47			—			—			94
Year ended 3-31-2009		8.76		-41.64			30			2.29			0.81			—			—			108
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		17.92		11.51			4			1.53	(4)		1.80	(4)		1.90	(4)		1.43	(4)		45
Year ended 3-31-2013		16.07		6.27			3			1.52			1.36			2.05			0.83			81
Year ended 3-31-2012		15.33		-7.88			3			1.53			1.74			2.09			1.18			88
Year ended 3-31-2011		17.21		16.56			3			1.53			1.13			2.16			0.50			101
Year ended 3-31-2010		14.90		56.68			2			1.53			1.23			2.53			0.23			94
Year ended 3-31-2009		9.59		-41.34			1			1.87			1.22			2.74			0.35			108
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		17.96		11.76			676			1.04	(4)		2.29	(4)		—			—			45
Year ended 3-31-2013		16.07		6.75			572			1.05			1.80			—			—			81
Year ended 3-31-2012		15.33		-7.47			505			1.07			2.07			—			—			88
Year ended 3-31-2011		17.22		17.03			307			1.08			1.51			—			—			101
Year ended 3-31-2010		14.90		57.44			93			1.12			1.55			—			—			94
Year ended 3-31-2009		9.58		-40.98			33			1.12			1.86			—			—			108
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.81		11.45			1			1.64	(4)		1.67	(4)		—			—			45
Year ended 3-31-2013(5)		15.98		3.77			—	*		1.62	(4)		0.96	(4)		—			—			81	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		17.95		11.63			139			1.30	(4)		2.17	(4)		—			—			45
Year ended 3-31-2013		16.08		6.42			148			1.31			1.62			—			—			81
Year ended 3-31-2012		15.35		-7.67			165			1.33			1.88			—			—			88
Year ended 3-31-2011		17.23		16.72			120			1.34			1.36			—			—			101
Year ended 3-31-2010		14.92		57.10			88			1.36			0.82			—			—			94
Year ended 3-31-2009		9.59		-41.12			11			1.38			1.64			—			—			108

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 157

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY INTERNATIONAL GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	35.50	$	0.23	(1)	$	2.59		$	2.82		$	—		$	—	$	—
Year ended 3-31-2013		33.45		0.27	(1)		2.07			2.34			(0.29	)		—		(0.29	)
Year ended 3-31-2012		33.23		0.26	(1)		(0.04	)		0.22			—			—		—
Year ended 3-31-2011		29.04		0.39	(1)		4.42			4.81			(0.62	)		—		(0.62	)
Year ended 3-31-2010		19.83		0.27	(1)		9.18			9.45			(0.24	)		—		(0.24	)
Year ended 3-31-2009		36.27		0.34			(16.52	)		(16.18	)		(0.26	)		—		(0.26	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		31.63		0.05	(1)		2.29			2.34			—			—		—
Year ended 3-31-2013		29.88		(0.05	)(1)		1.84			1.79			(0.04	)		—		(0.04	)
Year ended 3-31-2012		29.99		(0.04	)(1)		(0.07	)		(0.11	)		—			—		—
Year ended 3-31-2011		26.32		0.08	(1)		3.99			4.07			(0.40	)		—		(0.40	)
Year ended 3-31-2010		18.06		0.02	(1)		8.29			8.31			(0.05	)		—		(0.05	)
Year ended 3-31-2009		33.04		0.03	(1)		(14.98	)		(14.95	)		(0.03	)		—		(0.03	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		31.61		0.08	(1)		2.28			2.36			—			—		—
Year ended 3-31-2013		29.85		(0.02	)(1)		1.83			1.81			(0.05	)		—		(0.05	)
Year ended 3-31-2012		29.93		(0.02	)(1)		(0.06	)		(0.08	)		—			—		—
Year ended 3-31-2011		26.27		0.10	(1)		3.97			4.07			(0.41	)		—		(0.41	)
Year ended 3-31-2010		18.02		0.01	(1)		8.30			8.31			(0.06	)		—		(0.06	)
Year ended 3-31-2009		32.97		0.05	(1)		(14.94	)		(14.89	)		(0.06	)		—		(0.06	)
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		35.53		0.29	(1)		2.58			2.87			—			—		—
Year ended 3-31-2013		33.52		0.35	(1)		2.07			2.42			(0.41	)		—		(0.41	)
Year ended 3-31-2012		33.22		0.33	(1)		(0.03	)		0.30			—			—		—
Year ended 3-31-2011		29.04		0.45	(1)		4.42			4.87			(0.69	)		—		(0.69	)
Year ended 3-31-2010		19.83		0.35	(1)		9.18			9.53			(0.32	)		—		(0.32	)
Year ended 3-31-2009		36.28		0.37			(16.50	)		(16.13	)		(0.32	)		—		(0.32	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		35.85		0.32	(1)		2.60			2.92			—			—		—
Year ended 3-31-2013		33.84		0.33	(1)		2.16			2.49			(0.48	)		—		(0.48	)
Year ended 3-31-2012		33.50		0.37	(1)		(0.03	)		0.34			—			—		—
Year ended 3-31-2011		29.26		0.69	(1)		4.28			4.97			(0.73	)		—		(0.73	)
Year ended 3-31-2010		19.98		0.28	(1)		9.35			9.63			(0.35	)		—		(0.35	)
Year ended 3-31-2009		36.57		0.38			(16.60	)		(16.22	)		(0.37	)		—		(0.37	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		35.48		0.20	(1)		2.57			2.77			—			—		—
Year ended 3-31-2013(6)		34.77		0.01	(1)		0.70			0.71			—			—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		35.57		0.28	(1)		2.57			2.85			—			—		—
Year ended 3-31-2013		33.54		0.27	(1)		2.10			2.37			(0.34	)		—		(0.34	)
Year ended 3-31-2012		33.28		0.29	(1)		(0.03	)		0.26			—			—		—
Year ended 3-31-2011		29.06		0.58	(1)		4.31			4.89			(0.67	)		—		(0.67	)
Year ended 3-31-2010		19.86		0.28	(1)		9.23			9.51			(0.31	)		—		(0.31	)
Year ended 3-31-2009		36.27		0.35			(16.49	)		(16.14	)		(0.27	)		—		(0.27	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) Class is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the fiscal year ended March 31, 2013.

158 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	38.32		7.91	%	$	265			1.50	%(4)		1.27	%(4)		—	%		—	%		21	%
Year ended 3-31-2013		35.50		7.04			198			1.48			0.80			—			—			40
Year ended 3-31-2012		33.45		0.66			151			1.52			0.81			—			—			49
Year ended 3-31-2011		33.23		16.67			142			1.62			1.28			—			—			74
Year ended 3-31-2010		29.04		47.70			120			1.61			1.04			—			—			80
Year ended 3-31-2009		19.83		-44.65			83			1.57			1.09			—			—			93
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		33.97		7.40			5			2.53	(4)		0.30	(4)		—			—			21
Year ended 3-31-2013		31.63		5.95			4			2.47			-0.16			—			—			40
Year ended 3-31-2012		29.88		-0.34			3			2.55			-0.16			—			—			49
Year ended 3-31-2011		29.99		15.53			4			2.61			0.29			—			—			74
Year ended 3-31-2010		26.32		46.03			4			2.69			0.06			—			—			80
Year ended 3-31-2009		18.06		-45.25			4			2.62			0.11			—			—			93
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		33.97		7.47			25			2.36	(4)		0.47	(4)		—			—			21
Year ended 3-31-2013		31.61		6.03			24			2.39			-0.07			—			—			40
Year ended 3-31-2012		29.85		-0.24			25			2.46			-0.09			—			—			49
Year ended 3-31-2011		29.93		15.55			31			2.59			0.31			—			—			74
Year ended 3-31-2010		26.27		46.15			31			2.62			0.07			—			—			80
Year ended 3-31-2009		18.02		-45.19			24			2.54			0.16			—			—			93
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		38.40		8.08			—	*		1.25	(4)		1.58	(4)		—			—			21
Year ended 3-31-2013		35.53		7.27			—	*		1.25			1.04			—			—			40
Year ended 3-31-2012		33.52		0.90			—	*		1.29			1.04			—			—			49
Year ended 3-31-2011		33.22		16.88			—	*		1.40			1.49			—			—			74
Year ended 3-31-2010		29.04		48.11			—	*		1.32			1.31			—			—			80
Year ended 3-31-2009		19.83		-44.52			—	*		1.34			1.31			—			—			93
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		38.77		8.15			46			1.12	(4)		1.74	(4)		—			—			21
Year ended 3-31-2013		35.85		7.38			48			1.13			0.96			—			—			40
Year ended 3-31-2012		33.84		1.05			24			1.17			1.14			—			—			49
Year ended 3-31-2011		33.50		17.09			23			1.25			1.85			—			—			74
Year ended 3-31-2010		29.26		48.28			36			1.18			1.22			—			—			80
Year ended 3-31-2009		19.98		-44.42			15			1.18			1.37			—			—			93
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		38.25		7.81			—	*		1.72	(4)		1.11	(4)		—			—			21
Year ended 3-31-2013(6)		35.48		2.04			—	*		1.70	(4)		0.15	(4)		—			—			40	(7)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		38.42		7.98			11			1.39	(4)		1.56	(4)		—			—			21
Year ended 3-31-2013		35.57		7.14			13			1.39			0.81			—			—			40
Year ended 3-31-2012		33.54		0.78			11			1.40			0.93			1.42			0.91			49
Year ended 3-31-2011		33.28		16.93			9			1.42			1.62			1.58			1.46			74
Year ended 3-31-2010		29.06		47.95			3			1.42			1.16			1.48			1.10			80
Year ended 3-31-2009		19.86		-44.55			2			1.43			1.21			1.50			1.14			93

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 159

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LARGE CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)(1)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	15.87	$	0.01		$	1.87		$	1.88		$	—		$	—	$	—
Year ended 3-31-2013		15.14		0.03			0.73			0.76			(0.03	)		—		(0.03	)
Year ended 3-31-2012		13.61		(0.01	)		1.54			1.53			—			—		—
Year ended 3-31-2011		11.85		0.00			1.77			1.77			(0.01	)		—		(0.01	)
Year ended 3-31-2010		8.71		0.04			3.15			3.19			(0.05	)		—		(0.05	)
Year ended 3-31-2009		13.17		0.04			(4.49	)		(4.45	)		(0.01	)		—		(0.01	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		13.73		(0.06	)		1.61			1.55			—			—		—
Year ended 3-31-2013		13.20		(0.10	)		0.63			0.53			—			—		—
Year ended 3-31-2012		11.99		(0.13	)		1.34			1.21			—			—		—
Year ended 3-31-2011		10.55		(0.13	)		1.57			1.44			—			—		—
Year ended 3-31-2010		7.82		(0.09	)		2.82			2.73			—			—		—
Year ended 3-31-2009		11.98		(0.10	)		(4.06	)		(4.16	)		—			—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.36		(0.05	)		1.69			1.64			—			—		—
Year ended 3-31-2013		13.78		(0.08	)		0.66			0.58			—			—		—
Year ended 3-31-2012		12.49		(0.11	)		1.40			1.29			—			—		—
Year ended 3-31-2011		10.95		(0.09	)		1.63			1.54			—			—		—
Year ended 3-31-2010		8.09		(0.05	)		2.91			2.86			—			—		—
Year ended 3-31-2009		12.33		(0.05	)		(4.19	)		(4.24	)		—			—		—
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		15.86		0.01			1.87			1.88			—			—		—
Year ended 3-31-2013		15.13		0.03			0.73			0.76			(0.03	)		—		(0.03	)
Year ended 3-31-2012		13.60		(0.01	)		1.54			1.53			—			—		—
Year ended 3-31-2011		11.84		(0.01	)		1.78			1.77			(0.01	)		—		(0.01	)
Year ended 3-31-2010		8.70		0.03			3.16			3.19			(0.05	)		—		(0.05	)
Year ended 3-31-2009		13.16		0.04			(4.49	)		(4.45	)		(0.01	)		—		(0.01	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		16.31		0.03			1.92			1.95			—			—		—
Year ended 3-31-2013		15.54		0.07			0.76			0.83			(0.06	)		—		(0.06	)
Year ended 3-31-2012		13.93		0.02			1.59			1.61			—			—		—
Year ended 3-31-2011		12.12		0.03			1.81			1.84			(0.03	)		—		(0.03	)
Year ended 3-31-2010		8.91		0.06			3.22			3.28			(0.07	)		—		(0.07	)
Year ended 3-31-2009		13.46		0.06			(4.58	)		(4.52	)		(0.03	)		—		(0.03	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		15.62		(0.02	)		1.84			1.82			—			—		—
Year ended 3-31-2013		14.92		(0.02	)		0.72			0.70			—			—		—
Year ended 3-31-2012		13.46		(0.05	)		1.51			1.46			—			—		—
Year ended 3-31-2011		11.74		(0.03	)		1.75			1.72			—			—		—
Year ended 3-31-2010		8.63		0.00			3.12			3.12			(0.01	)		—		(0.01	)
Year ended 3-31-2009		13.08		0.02			(4.47	)		(4.45	)		—			—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		16.11		0.02			1.90			1.92			—			—		—
Year ended 3-31-2013		15.36		0.05			0.74			0.79			(0.04	)		—		(0.04	)
Year ended 3-31-2012		13.80		0.01			1.55			1.56			—			—		—
Year ended 3-31-2011		12.01		0.01			1.80			1.81			(0.02	)		—		(0.02	)
Year ended 3-31-2010		8.83		0.05			3.19			3.24			(0.06	)		—		(0.06	)
Year ended 3-31-2009		13.35		0.05			(4.55	)		(4.50	)		(0.02	)		—		(0.02	)

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

160 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.75		11.85	%	$	1,023		1.15	%(4)		0.12	%(4)		1.21	%(4)		0.06	%(4)		33	%
Year ended 3-31-2013		15.87		5.03			994		1.15			0.22			1.22			0.15			73
Year ended 3-31-2012		15.14		11.24			995		1.15			-0.06			1.22			-0.13			57
Year ended 3-31-2011		13.61		14.98			550		1.15			0.01			1.25			-0.09			91
Year ended 3-31-2010		11.85		36.63			464		1.15			0.33			1.30			0.18			60
Year ended 3-31-2009		8.71		-33.80			335		1.15			0.40			1.34			0.21			76
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.28		11.29			11		2.11	(4)		-0.84	(4)		—			—			33
Year ended 3-31-2013		13.73		4.02			11		2.15			-0.78			2.18			-0.81			73
Year ended 3-31-2012		13.20		10.09			15		2.18			-1.10			2.22			-1.14			57
Year ended 3-31-2011		11.99		13.65			10		2.32			-1.17			—			—			91
Year ended 3-31-2010		10.55		34.91			9		2.41			-0.94			—			—			60
Year ended 3-31-2009		7.82		-34.73			7		2.49			-1.01			—			—			76
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		16.00		11.34			76		1.92	(4)		-0.65	(4)		—			—			33
Year ended 3-31-2013		14.36		4.28			71		1.93			-0.57			—			—			73
Year ended 3-31-2012		13.78		10.33			81		1.95			-0.86			—			—			57
Year ended 3-31-2011		12.49		14.06			53		1.98			-0.83			—			—			91
Year ended 3-31-2010		10.95		35.35			50		2.02			-0.54			—			—			60
Year ended 3-31-2009		8.09		-34.39			33		2.08			-0.54			—			—			76
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		17.74		11.85			6		1.15	(4)		0.12	(4)		1.51	(4)		-0.24	(4)		33
Year ended 3-31-2013		15.86		5.03			6		1.15			0.21			1.59			-0.24			73
Year ended 3-31-2012		15.13		11.25			5		1.15			-0.06			1.62			-0.53			57
Year ended 3-31-2011		13.60		14.99			2		1.15			-0.02			1.83			-0.70			91
Year ended 3-31-2010		11.84		36.67			1		1.15			0.31			2.05			-0.59			60
Year ended 3-31-2009		8.70		-33.83			1		1.15			0.38			2.27			-0.74			76
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		18.26		11.96			123		0.88	(4)		0.39	(4)		0.89	(4)		0.38	(4)		33
Year ended 3-31-2013		16.31		5.36			142		0.88			0.45			0.89			0.45			73
Year ended 3-31-2012		15.54		11.56			242		0.89			0.18			—			—			57
Year ended 3-31-2011		13.93		15.22			173		0.92			0.22			—			—			91
Year ended 3-31-2010		12.12		36.86			270		0.92			0.56			—			—			60
Year ended 3-31-2009		8.91		-33.61			102		0.92			0.87			—			—			76
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.44		11.65			30		1.47	(4)		-0.21	(4)		—			—			33
Year ended 3-31-2013		15.62		4.69			28		1.48			-0.11			—			—			73
Year ended 3-31-2012		14.92		10.85			24		1.48			-0.39			—			—			57
Year ended 3-31-2011		13.46		14.65			20		1.46			-0.29			—			—			91
Year ended 3-31-2010		11.74		36.18			13		1.46			0.00			—			—			60
Year ended 3-31-2009		8.63		-34.02			4		1.47			0.15			—			—			76
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		18.03		11.92			131		1.06	(4)		0.21	(4)		1.13	(4)		0.14	(4)		33
Year ended 3-31-2013		16.11		5.09			126		1.06			0.31			1.13			0.23			73
Year ended 3-31-2012		15.36		11.38			121		1.06			0.04			1.14			-0.04			57
Year ended 3-31-2011		13.80		15.09			142		1.06			0.10			1.16			0.00			91
Year ended 3-31-2010		12.01		36.69			112		1.06			0.41			1.17			0.30			60
Year ended 3-31-2009		8.83		-33.74			79		1.06			0.42			1.19			0.29			76

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 161

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY LIMITED-TERM BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	11.20	$	0.07	(1)	$	(0.25	)	$	(0.18	)	$	(0.07	)	$	—		$	(0.07	)
Year ended 3-31-2013		11.16		0.17	(1)		0.08			0.25			(0.18	)		(0.03	)		(0.21	)
Year ended 3-31-2012		11.04		0.20	(1)		0.20			0.40			(0.23	)		(0.05	)		(0.28	)
Year ended 3-31-2011		11.06		0.25	(1)		0.02			0.27			(0.27	)		(0.02	)		(0.29	)
Year ended 3-31-2010		10.77		0.31	(1)		0.33			0.64			(0.32	)		(0.03	)		(0.35	)
Year ended 3-31-2009		10.48		0.31			0.29			0.60			(0.31	)		—			(0.31	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.02	(1)		(0.25	)		(0.23	)		(0.02	)		—			(0.02	)
Year ended 3-31-2013		11.16		0.07	(1)		0.09			0.16			(0.09	)		(0.03	)		(0.12	)
Year ended 3-31-2012		11.04		0.11	(1)		0.20			0.31			(0.14	)		(0.05	)		(0.19	)
Year ended 3-31-2011		11.06		0.16	(1)		0.02			0.18			(0.18	)		(0.02	)		(0.20	)
Year ended 3-31-2010		10.77		0.22	(1)		0.33			0.55			(0.23	)		(0.03	)		(0.26	)
Year ended 3-31-2009		10.48		0.23			0.29			0.52			(0.23	)		—			(0.23	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.03	(1)		(0.25	)		(0.22	)		(0.03	)		—			(0.03	)
Year ended 3-31-2013		11.16		0.08	(1)		0.09			0.17			(0.10	)		(0.03	)		(0.13	)
Year ended 3-31-2012		11.04		0.12	(1)		0.20			0.32			(0.15	)		(0.05	)		(0.20	)
Year ended 3-31-2011		11.06		0.17	(1)		0.02			0.19			(0.19	)		(0.02	)		(0.21	)
Year ended 3-31-2010		10.77		0.24	(1)		0.33			0.57			(0.25	)		(0.03	)		(0.28	)
Year ended 3-31-2009		10.48		0.24			0.29			0.53			(0.24	)		—			(0.24	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.06	(1)		(0.24	)		(0.18	)		(0.07	)		—			(0.07	)
Year ended 3-31-2013		11.16		0.15	(1)		0.09			0.24			(0.17	)		(0.03	)		(0.20	)
Year ended 3-31-2012		11.04		0.19	(1)		0.20			0.39			(0.22	)		(0.05	)		(0.27	)
Year ended 3-31-2011		11.06		0.24	(1)		0.02			0.26			(0.26	)		(0.02	)		(0.28	)
Year ended 3-31-2010		10.77		0.31	(1)		0.34			0.65			(0.33	)		(0.03	)		(0.36	)
Year ended 3-31-2009		10.48		0.34			0.29			0.63			(0.34	)		—			(0.34	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.08	(1)		(0.24	)		(0.16	)		(0.09	)		—			(0.09	)
Year ended 3-31-2013		11.16		0.19	(1)		0.09			0.28			(0.21	)		(0.03	)		(0.24	)
Year ended 3-31-2012		11.04		0.23	(1)		0.20			0.43			(0.26	)		(0.05	)		(0.31	)
Year ended 3-31-2011		11.06		0.28	(1)		0.02			0.30			(0.30	)		(0.02	)		(0.32	)
Year ended 3-31-2010		10.77		0.35	(1)		0.33			0.68			(0.36	)		(0.03	)		(0.39	)
Year ended 3-31-2009		10.48		0.35			0.29			0.64			(0.35	)		—			(0.35	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.05	(1)		(0.25	)		(0.20	)		(0.05	)		—			(0.05	)
Year ended 3-31-2013(5)		11.19		0.02	(1)		0.02			0.04			(0.03	)		—			(0.03	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		11.20		0.07	(1)		(0.25	)		(0.18	)		(0.07	)		—			(0.07	)
Year ended 3-31-2013		11.16		0.17	(1)		0.08			0.25			(0.18	)		(0.03	)		(0.21	)
Year ended 3-31-2012		11.04		0.21	(1)		0.19			0.40			(0.23	)		(0.05	)		(0.28	)
Year ended 3-31-2011		11.06		0.25	(1)		0.02			0.27			(0.27	)		(0.02	)		(0.29	)
Year ended 3-31-2010		10.77		0.32	(1)		0.33			0.65			(0.33	)		(0.03	)		(0.36	)
Year ended 3-31-2009		10.48		0.32			0.29			0.61			(0.32	)		—			(0.32	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

162 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	10.95		-1.60	%	$	1,297			0.89	%(4)		1.20	%(4)		—	%		—	%		24	%
Year ended 3-31-2013		11.20		2.29			1,211			0.88			1.48			—			—			55
Year ended 3-31-2012		11.16		3.66			1,046			0.90			1.84			—			—			40
Year ended 3-31-2011		11.04		2.45			794			0.93			2.18			—			—			54
Year ended 3-31-2010		11.06		6.03			570			1.00			2.84			—			—			33
Year ended 3-31-2009		10.77		5.89			289			0.91			2.89			1.06			2.74			20
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-2.01			22			1.74	(4)		0.36	(4)		—			—			24
Year ended 3-31-2013		11.20		1.45			25			1.71			0.66			—			—			55
Year ended 3-31-2012		11.16		2.80			26			1.74			1.00			—			—			40
Year ended 3-31-2011		11.04		1.61			24			1.75			1.36			—			—			54
Year ended 3-31-2010		11.06		5.16			21			1.82			2.06			—			—			33
Year ended 3-31-2009		10.77		5.04			20			1.73			2.08			1.88			1.93			20
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-1.96			165			1.62	(4)		0.47	(4)		—			—			24
Year ended 3-31-2013		11.20		1.54			218			1.61			0.76			—			—			55
Year ended 3-31-2012		11.16		2.89			242			1.65			1.10			—			—			40
Year ended 3-31-2011		11.04		1.72			216			1.65			1.47			—			—			54
Year ended 3-31-2010		11.06		5.27			213			1.71			2.14			—			—			33
Year ended 3-31-2009		10.77		5.11			157			1.59			2.12			1.74			1.97			20
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-1.65			3			1.00	(4)		1.09	(4)		—			—			24
Year ended 3-31-2013		11.20		2.17			4			1.00			1.35			—			—			55
Year ended 3-31-2012		11.16		3.58			3			1.00			1.72			1.09			1.63			40
Year ended 3-31-2011		11.04		2.35			1			1.00			2.08			1.19			1.89			54
Year ended 3-31-2010		11.06		6.07			—	*		0.98			2.78			—			—			33
Year ended 3-31-2009		10.77		6.15			—	*		0.73			3.21			0.88			3.06			20
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-1.48			73			0.64	(4)		1.46	(4)		—			—			24
Year ended 3-31-2013		11.20		2.54			117			0.64			1.72			—			—			55
Year ended 3-31-2012		11.16		3.92			102			0.66			2.07			—			—			40
Year ended 3-31-2011		11.04		2.71			51			0.68			2.43			—			—			54
Year ended 3-31-2010		11.06		6.35			37			0.73			3.09			—			—			33
Year ended 3-31-2009		10.77		6.26			6			0.57			3.22			0.72			3.07			20
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-1.77			—	*		1.24	(4)		0.85	(4)		—			—			24
Year ended 3-31-2013(5)		11.20		0.41			—	*		1.21	(4)		0.59	(4)		—			—			55	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		10.95		-1.60			32			0.89	(4)		1.22	(4)		0.91	(4)		1.20	(4)		24
Year ended 3-31-2013		11.20		2.29			58			0.88			1.48			0.89			1.47			55
Year ended 3-31-2012		11.16		3.66			51			0.90			1.85			0.92			1.84			40
Year ended 3-31-2011		11.04		2.45			54			0.93			2.19			0.94			2.18			54
Year ended 3-31-2010		11.06		6.07			57			0.98			2.87			—			—			33
Year ended 3-31-2009		10.77		5.95			37			0.86			2.89			1.01			2.74			20

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 163

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED EUROPEAN/PACIFIC FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013  (unaudited)	$	7.88	$	(0.03	)(1)	$	0.18		$	0.15		$	—		$	—		$	—		$	—
Year ended 3-31-2013		7.76		0.03	(1)		0.13			0.16			(0.04	)		—			—			(0.04	)
Year ended 3-31-2012		8.90		0.05	(1)		(1.14	)		(1.09	)		(0.05	)		—			—			(0.05	)
Year ended 3-31-2011		7.80		(0.04	)(1)		1.14			1.10			—			—			—			—
Year ended 3-31-2010		4.90		(0.03	)(1)		2.94			2.91			—	*		—			(0.01	)		(0.01	)
Year ended 3-31-2009		9.81		0.19			(4.46	)		(4.27	)		(0.31	)		(0.33	)		—			(0.64	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		7.67		(0.06	)(1)		0.18			0.12			—			—			—			—
Year ended 3-31-2013		7.58		(0.03	)(1)		0.12			0.09			—			—			—			—
Year ended 3-31-2012		8.74		(0.03	)(1)		(1.13	)		(1.16	)		—	*		—			—			—	*
Year ended 3-31-2011		7.71		(0.11	)(1)		1.14			1.03			—			—			—			—
Year ended 3-31-2010		4.86		(0.08	)(1)		2.93			2.85			—			—			—			—
Year ended 3-31-2009		9.78		0.12			(4.46	)		(4.34	)		(0.25	)		(0.33	)		—			(0.58	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		7.71		(0.06	)(1)		0.18			0.12			—			—			—			—
Year ended 3-31-2013		7.60		(0.03	)(1)		0.14			0.11			—	*		—			—			—	*
Year ended 3-31-2012		8.77		(0.02	)(1)		(1.14	)		(1.16	)		(0.01	)		—			—			(0.01	)
Year ended 3-31-2011		7.73		(0.10	)(1)		1.14			1.04			—			—			—			—
Year ended 3-31-2010		4.87		(0.07	)(1)		2.93			2.86			—	*		—			—	*		—	*
Year ended 3-31-2009		9.79		0.13			(4.46	)		(4.33	)		(0.26	)		(0.33	)		—			(0.59	)
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		7.92		(0.02	)(1)		0.17			0.15			—			—			—			—
Year ended 3-31-2013		7.79		0.04	(1)		0.14			0.18			(0.05	)		—			—			(0.05	)
Year ended 3-31-2012		8.93		0.06	(1)		(1.14	)		(1.08	)		(0.06	)		—			—			(0.06	)
Year ended 3-31-2011		7.81		(0.03	)(1)		1.15			1.12			—			—			—			—
Year ended 3-31-2010		4.91		(0.01	)(1)		2.93			2.92			(0.01	)		—			(0.01	)		(0.02	)
Year ended 3-31-2009		9.81		0.20			(4.45	)		(4.25	)		(0.32	)		(0.33	)		—			(0.65	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		7.98		(0.01	)(1)		0.16			0.15			—			—			—			—
Year ended 3-31-2013		7.84		0.06	(1)		0.14			0.20			(0.06	)		—			—			(0.06	)
Year ended 3-31-2012		8.98		0.08	(1)		(1.15	)		(1.07	)		(0.07	)		—			—			(0.07	)
Year ended 3-31-2011		7.84		(0.01	)(1)		1.15			1.14			—			—			—			—
Year ended 3-31-2010		4.92		(0.01	)(1)		2.95			2.94			—	*		—			(0.02	)		(0.02	)
Year ended 3-31-2009		9.82		0.21			(4.45	)		(4.24	)		(0.33	)		(0.33	)		—			(0.66	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		7.88		(0.03	)(1)		0.17			0.14			—			—			—			—
Year ended 3-31-2013(5)		7.94		(0.02	)(1)		(0.04	)		(0.06	)		—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		7.91		(0.02	)(1)		0.17			0.15			—			—			—			—
Year ended 3-31-2013		7.78		0.04	(1)		0.14			0.18			(0.05	)		—			—			(0.05	)
Year ended 3-31-2012		8.92		0.07	(1)		(1.16	)		(1.09	)		(0.05	)		—			—			(0.05	)
Year ended 3-31-2011		7.81		(0.04	)(1)		1.15			1.11			—			—			—			—
Year ended 3-31-2010		4.91		(0.01	)(1)		2.92			2.91			—	*		—			(0.01	)		(0.01	)
Year ended 3-31-2009		9.81		0.19			(4.45	)		(4.26	)		(0.31	)		(0.33	)		—			(0.64	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) Class is closed to investment.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

164 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	8.03		1.90	%	$	68			0.65	%(3)		-0.65	%(3)		1	%
Year ended 3-31-2013		7.88		2.06			75			0.61			0.43			12
Year ended 3-31-2012		7.76		-12.18			78			0.60			0.59			11
Year ended 3-31-2011		8.90		14.10			88			0.60			-0.51			7
Year ended 3-31-2010		7.80		59.43			75			0.66			-0.21			13
Year ended 3-31-2009		4.90		-43.93			39			0.72			2.51			25
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		7.79		1.43			1			1.58	(3)		-1.58	(3)		1
Year ended 3-31-2013		7.67		1.32			1			1.53			-0.47			12
Year ended 3-31-2012		7.58		-13.25			1			1.51			-0.34			11
Year ended 3-31-2011		8.74		13.36			2			1.49			-1.41			7
Year ended 3-31-2010		7.71		58.64			2			1.60			-1.14			13
Year ended 3-31-2009		4.86		-44.75			1			1.70			1.53			25
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		7.83		1.56			1			1.46	(3)		-1.46	(3)		1
Year ended 3-31-2013		7.71		1.46			1			1.38			-0.36			12
Year ended 3-31-2012		7.60		-13.25			2			1.42			-0.24			11
Year ended 3-31-2011		8.77		13.45			2			1.39			-1.30			7
Year ended 3-31-2010		7.73		58.76			2			1.43			-0.97			13
Year ended 3-31-2009		4.87		-44.59			1			1.52			1.53			25
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		8.07		1.89			—	*		0.53	(3)		-0.53	(3)		1
Year ended 3-31-2013		7.92		2.27			—	*		0.48			0.57			12
Year ended 3-31-2012		7.79		-12.05			—	*		0.48			0.70			11
Year ended 3-31-2011		8.93		14.34			—	*		0.48			-0.39			7
Year ended 3-31-2010		7.81		59.40			—	*		0.49			-0.06			13
Year ended 3-31-2009		4.91		-43.74			—	*		0.53			2.49			25
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		8.13		1.88			—	*		0.29	(3)		-0.29	(3)		1
Year ended 3-31-2013		7.98		2.55			—	*		0.24			0.79			12
Year ended 3-31-2012		7.84		-11.80			—	*		0.24			1.00			11
Year ended 3-31-2011		8.98		14.54			—	*		0.23			-0.16			7
Year ended 3-31-2010		7.84		59.76			—	*		0.23			0.20			13
Year ended 3-31-2009		4.92		-43.56			—	*		0.27			2.73			25
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		8.02		1.78			—	*		0.78	(3)		-0.78	(3)		1
Year ended 3-31-2013(5)		7.88		-0.76			—	*		0.82	(3)		-0.82	(3)		12	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		8.06		1.90			1			0.54	(3)		-0.54	(3)		1
Year ended 3-31-2013		7.91		2.29			1			0.46			0.49			12
Year ended 3-31-2012		7.78		-12.11			1			0.53			0.91			11
Year ended 3-31-2011		8.92		14.21			1			0.59			-0.50			7
Year ended 3-31-2010		7.81		59.32			—	*		0.55			0.05			13
Year ended 3-31-2009		4.91		-43.84			—	*		0.73			2.45			25

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 165

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	8.98	$	0.00	(1)	$	0.46		$	0.46		$	—		$	—		$	—		$	—
Year ended 3-31-2013		8.70		0.11	(1)		0.29			0.40			(0.12	)		—			—			(0.12	)
Year ended 3-31-2012		9.56		0.14	(1)		(0.86	)		(0.72	)		(0.14	)		—			—			(0.14	)
Year ended 3-31-2011		8.44		0.03	(1)		1.14			1.17			(0.03	)		—			(0.02	)		(0.05	)
Year ended 3-31-2010		5.62		0.01	(1)		2.85			2.86			(0.02	)		—			(0.02	)		(0.04	)
Year ended 3-31-2009		10.06		0.21			(4.21	)		(4.00	)		(0.27	)		(0.15	)		(0.02	)		(0.44	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		8.85		(0.04	)(1)		0.46			0.42			—			—			—			—
Year ended 3-31-2013		8.59		0.04	(1)		0.29			0.33			(0.07	)		—			—			(0.07	)
Year ended 3-31-2012		9.48		0.06	(1)		(0.87	)		(0.81	)		(0.08	)		—			—			(0.08	)
Year ended 3-31-2011		8.38		(0.04	)(1)		1.14			1.10			—	*		—			—	*		—	*
Year ended 3-31-2010		5.59		(0.04	)(1)		2.83			2.79			—			—			—			—
Year ended 3-31-2009		10.04		0.16	(1)		(4.23	)		(4.07	)		(0.21	)		(0.15	)		(0.02	)		(0.38	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		8.87		(0.04	)(1)		0.47			0.43			—			—			—			—
Year ended 3-31-2013		8.61		0.04	(1)		0.29			0.33			(0.07	)		—			—			(0.07	)
Year ended 3-31-2012		9.49		0.07	(1)		(0.86	)		(0.79	)		(0.09	)		—			—			(0.09	)
Year ended 3-31-2011		8.40		(0.03	)(1)		1.13			1.10			(0.01	)		—			—	*		(0.01	)
Year ended 3-31-2010		5.59		(0.03	)(1)		2.84			2.81			—			—			—			—
Year ended 3-31-2009		10.04		0.15	(1)		(4.22	)		(4.07	)		(0.21	)		(0.15	)		(0.02	)		(0.38	)
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		8.99		0.00	(1)		0.46			0.46			—			—			—			—
Year ended 3-31-2013		8.70		0.12	(1)		0.30			0.42			(0.13	)		—			—			(0.13	)
Year ended 3-31-2012		9.57		0.15	(1)		(0.88	)		(0.73	)		(0.14	)		—			—			(0.14	)
Year ended 3-31-2011		8.45		0.05	(1)		1.13			1.18			(0.04	)		—			(0.02	)		(0.06	)
Year ended 3-31-2010		5.62		0.01	(1)		2.86			2.87			(0.02	)		—			(0.02	)		(0.04	)
Year ended 3-31-2009		10.06		0.23			(4.23	)		(4.00	)		(0.28	)		(0.14	)		(0.02	)		(0.44	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		9.01		0.01	(1)		0.47			0.48			—			—			—			—
Year ended 3-31-2013		8.73		0.13	(1)		0.30			0.43			(0.15	)		—			—			(0.15	)
Year ended 3-31-2012		9.58		0.16	(1)		(0.85	)		(0.69	)		(0.16	)		—			—			(0.16	)
Year ended 3-31-2011		8.46		0.05	(1)		1.14			1.19			(0.04	)		—			(0.03	)		(0.07	)
Year ended 3-31-2010		5.63		0.02	(1)		2.87			2.89			(0.03	)		—			(0.03	)		(0.06	)
Year ended 3-31-2009		10.07		0.24			(4.21	)		(3.97	)		(0.30	)		(0.15	)		(0.02	)		(0.47	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		8.97		(0.01	)(1)		0.47			0.46			—			—			—			—
Year ended 3-31-2013(6)		8.88		(0.01	)(1)		0.10			0.09			—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		8.97		0.00	(1)		0.46			0.46			—			—			—			—
Year ended 3-31-2013		8.69		0.12	(1)		0.29			0.41			(0.13	)		—			—			(0.13	)
Year ended 3-31-2012		9.55		0.16	(1)		(0.88	)		(0.72	)		(0.14	)		—			—			(0.14	)
Year ended 3-31-2011		8.43		0.03	(1)		1.14			1.17			(0.03	)		—			(0.02	)		(0.05	)
Year ended 3-31-2010		5.61		0.01	(1)		2.85			2.86			(0.02	)		—			(0.02	)		(0.04	)
Year ended 3-31-2009		10.06		0.22			(4.22	)		(4.00	)		(0.28	)		(0.15	)		(0.02	)		(0.45	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) Class is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the fiscal year ended March 31, 2013.

166 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	9.44		5.12	%	$	183			0.50	%(4)		-0.08	%(4)		—	%		—	%		1	%
Year ended 3-31-2013		8.98		4.65			183			0.49			1.32			—			—			21
Year ended 3-31-2012		8.70		-7.42			185			0.50			1.58			—			—			8
Year ended 3-31-2011		9.56		13.88			188			0.50			0.38			—			—			22
Year ended 3-31-2010		8.44		50.82			152			0.55			0.30			—			—			9
Year ended 3-31-2009		5.62		-40.20			84			0.57			2.85			—			—			16
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		9.27		4.75			2			1.40	(4)		-0.97	(4)		—			—			1
Year ended 3-31-2013		8.85		3.83			2			1.40			0.44			—			—			21
Year ended 3-31-2012		8.59		-8.42			3			1.39			0.66			—			—			8
Year ended 3-31-2011		9.48		13.14			3			1.36			-0.47			—			—			22
Year ended 3-31-2010		8.38		49.91			4			1.43			-0.58			—			—			9
Year ended 3-31-2009		5.59		-40.93			3			1.41			1.92			—			—			16
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		9.30		4.73			5			1.26	(4)		-0.83	(4)		—			—			1
Year ended 3-31-2013		8.87		4.01			5			1.29			0.53			—			—			21
Year ended 3-31-2012		8.61		-8.25			5			1.30			0.79			—			—			8
Year ended 3-31-2011		9.49		13.05			5			1.26			-0.38			—			—			22
Year ended 3-31-2010		8.40		50.27			5			1.32			-0.46			—			—			9
Year ended 3-31-2009		5.59		-40.91			3			1.35			2.19			—			—			16
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		9.45		5.12			—	*		0.41	(4)		0.01	(4)		—			—			1
Year ended 3-31-2013		8.99		4.86			—	*		0.39			1.44			—			—			21
Year ended 3-31-2012		8.70		-7.45			—	*		0.40			1.66			—			—			8
Year ended 3-31-2011		9.57		13.94			—	*		0.41			0.48			—			—			22
Year ended 3-31-2010		8.45		51.16			—	*		0.42			0.41			—			—			9
Year ended 3-31-2009		5.62		-40.12			—	*		0.45			2.83			—			—			16
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		9.49		5.33			1			0.17	(4)		0.25	(4)		—			—			1
Year ended 3-31-2013		9.01		4.97			1			0.16			1.46			—			—			21
Year ended 3-31-2012		8.73		-7.04			1			0.15			1.89			—			—			8
Year ended 3-31-2011		9.58		14.09			—	*		0.16			0.54			—			—			22
Year ended 3-31-2010		8.46		51.31			—	*		0.16			0.66			—			—			9
Year ended 3-31-2009		5.63		-39.86			—	*		0.18			3.08			—			—			16
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		9.43		5.13			—	*		0.66	(4)		-0.23	(4)		—			—			1
Year ended 3-31-2013(6)		8.97		1.01			—	*		0.72	(4)		-0.55	(4)		—			—			21	(7)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		9.43		5.13			1			0.41	(4)		0.02	(4)		—			—			1
Year ended 3-31-2013		8.97		4.77			1			0.38			1.42			—			—			21
Year ended 3-31-2012		8.69		-7.42			1			0.46			1.85			—			—			8
Year ended 3-31-2011		9.55		13.90			1			0.50			0.40			0.52			0.38			22
Year ended 3-31-2010		8.43		50.91			—	*		0.55			0.28			0.58			0.25			9
Year ended 3-31-2009		5.61		-40.21			—	*		0.59			2.56			0.60			2.55			16

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 167

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MICRO CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Loss			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	20.45	$	(0.18	)(1)	$	4.54		$	4.36		$	—		$	—		$	—
Year ended 3-31-2013		19.27		(0.25	)(1)		1.43			1.18			—			—			—
Year ended 3-31-2012		19.63		(0.29	)(1)		1.27			0.98			—			(1.34	)		(1.34	)
Year ended 3-31-2011		15.78		(0.30	)(1)		4.80			4.50			(0.05	)		(0.60	)		(0.65	)
Year ended 3-31-2010		9.77		(0.29	)(1)		6.69			6.40			—			(0.39	)		(0.39	)
Year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		—			—			—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		19.86		(0.29	)(1)		4.40			4.11			—			—			—
Year ended 3-31-2013		18.93		(0.44	)(1)		1.37			0.93			—			—			—
Year ended 3-31-2012		19.27		(0.49	)(1)		1.26			0.77			—			(1.11	)		(1.11	)
Year ended 3-31-2011		15.63		(0.52	)(1)		4.71			4.19			—			(0.55	)		(0.55	)
Year ended 3-31-2010		9.76		(0.51	)(1)		6.66			6.15			—			(0.28	)		(0.28	)
Year ended 3-31-2009(5)		10.00		(0.04	)		(0.20	)		(0.24	)		—			—			—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		20.05		(0.26	)(1)		4.45			4.19			—			—			—
Year ended 3-31-2013		19.04		(0.38	)(1)		1.39			1.01			—			—			—
Year ended 3-31-2012		19.42		(0.43	)(1)		1.25			0.82			—			(1.20	)		(1.20	)
Year ended 3-31-2011		15.69		(0.43	)(1)		4.75			4.32			—			(0.59	)		(0.59	)
Year ended 3-31-2010		9.76		(0.44	)(1)		6.68			6.24			—			(0.31	)		(0.31	)
Year ended 3-31-2009(5)		10.00		(0.03	)		(0.21	)		(0.24	)		—			—			—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		20.65		(0.13	)(1)		4.60			4.47			—			—			—
Year ended 3-31-2013		19.37		(0.17	)(1)		1.45			1.28			—			—			—
Year ended 3-31-2012		19.73		(0.21	)(1)		1.26			1.05			—			(1.41	)		(1.41	)
Year ended 3-31-2011		15.79		(0.22	)(1)		4.82			4.60			(0.06	)		(0.60	)		(0.66	)
Year ended 3-31-2010		9.77		(0.24	)(1)		6.68			6.44			—			(0.42	)		(0.42	)
Year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		—			—			—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		20.45		(0.20	)(1)		4.54			4.34			—			—			—
Year ended 3-31-2013(7)		17.77		(0.10	)(1)		2.78			2.68			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		20.51		(0.17	)(1)		5.37			5.20			—			—			—
Year ended 3-31-2013		19.29		(0.22	)(1)		1.44			1.22			—			—			—
Year ended 3-31-2012		19.64		(0.26	)(1)		1.28			1.02			—			(1.37	)		(1.37	)
Year ended 3-31-2011		15.70		(0.26	)(1)		4.78			4.52			—			(0.58	)		(0.58	)
Year ended 3-31-2010		9.77		(0.31	)(1)		6.63			6.32			—			(0.39	)		(0.39	)
Year ended 3-31-2009(5)		10.00		(0.02	)		(0.21	)		(0.23	)		—			—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

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

(6) For the fiscal year ended March 31, 2009.

(7) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(8) For the fiscal year ended March 31, 2013.

168 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	24.81		21.32	%	$	142			1.71	%(4)		-1.60	%(4)		—	%		—	%		33	%
Year ended 3-31-2013		20.45		6.12			80			1.78			-1.36			—			—			51
Year ended 3-31-2012		19.27		6.56			72			1.78			-1.63			—			—			78
Year ended 3-31-2011		19.63		28.73			78			1.88			-1.69			—			—			78
Year ended 3-31-2010		15.78		66.16			28			2.17			-2.08			2.79			-2.70			94
Year ended 3-31-2009(5)		9.77		-2.30			3			2.55	(4)		-2.38	(4)		—			—			5	(6)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		23.97		20.63			2			2.74	(4)		-2.64	(4)		—			—			33
Year ended 3-31-2013		19.86		4.97			2			2.90			-2.48			—			—			51
Year ended 3-31-2012		18.93		5.28			1			2.99			-2.84			—			—			78
Year ended 3-31-2011		19.27		27.00			1			3.20			-3.02			—			—			78
Year ended 3-31-2010		15.63		63.49			—	*		3.91			-3.82			4.13			-4.04			94
Year ended 3-31-2009(5)		9.76		-2.40			—	*		3.49	(4)		-3.32	(4)		—			—			5	(6)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		24.24		20.84			8			2.43	(4)		-2.32	(4)		—			—			33
Year ended 3-31-2013		20.05		5.36			5			2.55			-2.14			—			—			51
Year ended 3-31-2012		19.04		5.65			4			2.62			-2.47			—		��	—			78
Year ended 3-31-2011		19.42		27.72			4			2.66			-2.48			—			—			78
Year ended 3-31-2010		15.69		64.45			1			3.29			-3.19			3.51			-3.41			94
Year ended 3-31-2009(5)		9.76		-2.40			—	*		3.24	(4)		-3.07	(4)		—			—			5	(6)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		25.12		21.59			14			1.28	(4)		-1.16	(4)		—			—			33
Year ended 3-31-2013		20.65		6.66			4			1.31			-0.93			—			—			51
Year ended 3-31-2012		19.37		7.00			3			1.34			-1.19			—			—			78
Year ended 3-31-2011		19.73		29.36			3			1.41			-1.24			—			—			78
Year ended 3-31-2010		15.79		66.68			—	*		1.89			-1.79			2.23			-2.13			94
Year ended 3-31-2009(5)		9.77		-2.30			—	*		1.97	(4)		-1.80	(4)		—			—			5	(6)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		24.79		21.22			—	*		1.88	(4)		-1.78	(4)		—			—			33
Year ended 3-31-2013(7)		20.45		15.08			—	*		1.89	(4)		-1.84	(4)		—			—			51	(8)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		25.71		25.35			2			1.57	(4)		-1.46	(4)		—			—			33
Year ended 3-31-2013		20.51		6.32			1			1.60			-1.21			—			—			51
Year ended 3-31-2012		19.29		6.79			1			1.59			-1.45			—			—			78
Year ended 3-31-2011		19.64		29.00			1			1.67			-1.45			—			—			78
Year ended 3-31-2010		15.70		65.38			—	*		2.35			-2.27			2.57			-2.49			94
Year ended 3-31-2009(5)		9.77		-2.30			—	*		2.21	(4)		-2.03	(4)		—			—			5	(6)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 169

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MID CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	20.22	$	(0.06	)(1)	$	2.27		$	2.21		$	—	$	—		$	—
Year ended 3-31-2013		18.62		(0.09	)(1)		1.80			1.71			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.36		(0.12	)(1)		0.85			0.73			—		(0.47	)		(0.47	)
Year ended 3-31-2011		13.95		(0.05	)(1)		4.46			4.41			—		—			—
Year ended 3-31-2010		8.57		(0.06	)(1)		5.44			5.38			—		—			—
Year ended 3-31-2009		12.77		(0.05	)		(4.15	)		(4.20	)		—		—			—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		17.66		(0.12	)(1)		1.97			1.85			—		—			—
Year ended 3-31-2013		16.42		(0.23	)(1)		1.58			1.35			—		(0.11	)		(0.11	)
Year ended 3-31-2012		16.40		(0.25	)(1)		0.74			0.49			—		(0.47	)		(0.47	)
Year ended 3-31-2011		12.58		(0.18	)(1)		4.00			3.82			—		—			—
Year ended 3-31-2010		7.81		(0.16	)(1)		4.93			4.77			—		—			—
Year ended 3-31-2009		11.79		(0.17	)(1)		(3.81	)		(3.98	)		—		—			—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		18.44		(0.12	)(1)		2.06			1.94			—		—			—
Year ended 3-31-2013		17.11		(0.21	)(1)		1.65			1.44			—		(0.11	)		(0.11	)
Year ended 3-31-2012		17.04		(0.23	)(1)		0.77			0.54			—		(0.47	)		(0.47	)
Year ended 3-31-2011		13.04		(0.15	)(1)		4.15			4.00			—		—			—
Year ended 3-31-2010		8.06		(0.14	)(1)		5.12			4.98			—		—			—
Year ended 3-31-2009		12.09		(0.19	)		(3.84	)		(4.03	)		—		—			—
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		19.90		(0.08	)(1)		2.22			2.14			—		—			—
Year ended 3-31-2013		18.37		(0.14	)(1)		1.78			1.64			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.17		(0.15	)(1)		0.82			0.67			—		(0.47	)		(0.47	)
Year ended 3-31-2011		13.81		(0.07	)(1)		4.43			4.36			—		—			—
Year ended 3-31-2010		8.48		(0.05	)(1)		5.38			5.33			—		—			—
Year ended 3-31-2009		12.68		(0.06	)		(4.14	)		(4.20	)		—		—			—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		21.17		(0.02	)(1)		2.37			2.35			—		—			—
Year ended 3-31-2013		19.43		(0.04	)(1)		1.89			1.85			—		(0.11	)		(0.11	)
Year ended 3-31-2012		19.07		(0.07	)(1)		0.90			0.83			—		(0.47	)		(0.47	)
Year ended 3-31-2011		14.42		0.01	(1)		4.64			4.65			—		—			—
Year ended 3-31-2010		8.81		0.00	(1)		5.61			5.61			—		—			—
Year ended 3-31-2009		13.07		0.00			(4.26	)		(4.26	)		—		—			—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		20.02		(0.08	)(1)		2.24			2.16			—		—			—
Year ended 3-31-2013		18.49		(0.15	)(1)		1.79			1.64			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.27		(0.16	)(1)		0.85			0.69			—		(0.47	)		(0.47	)
Year ended 3-31-2011		13.90		(0.08	)(1)		4.45			4.37			—		—			—
Year ended 3-31-2010		8.54		(0.07	)(1)		5.43			5.36			—		—			—
Year ended 3-31-2009		12.73		(0.06	)		(4.13	)		(4.19	)		—		—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		20.83		(0.05	)(1)		2.34			2.29			—		—			—
Year ended 3-31-2013		19.17		(0.09	)(1)		1.86			1.77			—		(0.11	)		(0.11	)
Year ended 3-31-2012		18.86		(0.10	)(1)		0.88			0.78			—		(0.47	)		(0.47	)
Year ended 3-31-2011		14.29		(0.02	)(1)		4.59			4.57			—		—			—
Year ended 3-31-2010		8.74		(0.01	)(1)		5.56			5.55			—		—			—
Year ended 3-31-2009		12.97		(0.01	)		(4.22	)		(4.23	)		—		—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

170 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	22.43		10.88	%	$	1,386			1.40	%(4)		-0.57	%(4)		—	%		—	%		16	%
Year ended 3-31-2013		20.22		9.28			1,160			1.31			-0.52			—			—			32
Year ended 3-31-2012		18.62		4.29			636			1.40			-0.69			—			—			29
Year ended 3-31-2011		18.36		31.61			369			1.49			-0.34			—			—			39
Year ended 3-31-2010		13.95		62.78			162			1.65			-0.51			1.67			-0.53			40
Year ended 3-31-2009		8.57		-32.89			75			1.65			-0.39			1.78			-0.52			49
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		19.51		10.48			24			2.14	(4)		-1.32	(4)		—			—			16
Year ended 3-31-2013		17.66		8.27			21			2.21			-1.42			—			—			32
Year ended 3-31-2012		16.42		3.33			17			2.35			-1.63			—			—			29
Year ended 3-31-2011		16.40		30.37			12			2.47			-1.32			—			—			39
Year ended 3-31-2010		12.58		61.08			7			2.68			-1.53			—			—			40
Year ended 3-31-2009		7.81		-33.76			4			2.92			-1.69			—			—			49
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		20.38		10.52			236			2.05	(4)		-1.23	(4)		—			—			16
Year ended 3-31-2013		18.44		8.46			183			2.07			-1.28			—			—			32
Year ended 3-31-2012		17.11		3.50			135			2.14			-1.44			—			—			29
Year ended 3-31-2011		17.04		30.68			69			2.16			-1.02			—			—			39
Year ended 3-31-2010		13.04		61.79			17			2.35			-1.21			2.38			-1.24			40
Year ended 3-31-2009		8.06		-33.33			6			2.35			-1.10			2.59			-1.34			49
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		22.04		10.75			5			1.60	(4)		-0.78	(4)		1.75	(4)		-0.93	(4)		16
Year ended 3-31-2013		19.90		8.97			4			1.60			-0.81			1.90			-1.11			32
Year ended 3-31-2012		18.37		4.00			3			1.60			-0.88			1.97			-1.25			29
Year ended 3-31-2011		18.17		31.57			3			1.60			-0.44			2.09			-0.93			39
Year ended 3-31-2010		13.81		62.85			1			1.60			-0.46			2.60			-1.46			40
Year ended 3-31-2009		8.48		-33.12			—	*		1.99			-0.71			3.12			-1.84			49
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		23.52		11.10			1,752			0.99	(4)		-0.17	(4)		—			—			16
Year ended 3-31-2013		21.17		9.57			1,316			1.02			-0.24			—			—			32
Year ended 3-31-2012		19.43		4.65			788			1.05			-0.38			—			—			29
Year ended 3-31-2011		19.07		32.25			116			1.08			0.04			—			—			39
Year ended 3-31-2010		14.42		63.68			6			1.14			-0.03			—			—			40
Year ended 3-31-2009		8.81		-32.59			—	*		1.17			0.09			—			—			49
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		22.18		10.79			88			1.60	(4)		-0.78	(4)		—			—			16
Year ended 3-31-2013		20.02		8.92			77			1.62			-0.82			—			—			32
Year ended 3-31-2012		18.49		4.09			50			1.63			-0.93			—			—			29
Year ended 3-31-2011		18.27		31.44			21			1.63			-0.48			—			—			39
Year ended 3-31-2010		13.90		62.76			4			1.67			-0.57			—			—			40
Year ended 3-31-2009		8.54		-32.91			—	*		1.72			-0.45			—			—			49
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		23.12		10.94			607			1.24	(4)		-0.42	(4)		—			—			16
Year ended 3-31-2013		20.83		9.33			521			1.27			-0.48			—			—			32
Year ended 3-31-2012		19.17		4.44			439			1.25			-0.55			1.30			-0.60			29
Year ended 3-31-2011		18.86		31.98			207			1.25			-0.10			1.34			-0.19			39
Year ended 3-31-2010		14.29		63.50			54			1.25			-0.11			1.38			-0.24			40
Year ended 3-31-2009		8.74		-32.61			9			1.25			0.00			1.40			-0.15			49

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 171

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MONEY MARKET FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain on Investments		Total from Investment Operations		Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	1.00	$	0.00	$	0.00	$	0.00	$	—	*	$	—		$	—	*
Year ended 3-31-2013		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2012		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2011		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2010		1.00		0.01		0.00		0.01		(0.01	)		—	*		(0.01	)
Year ended 3-31-2009		1.00		0.02		0.00		0.02		(0.02	)		—			(0.02	)
Class B Shares(5)
Six-month period ended 9-30-2013 (unaudited)		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2012		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2011		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2010		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2009		1.00		0.01		0.00		0.01		(0.01	)		—			(0.01	)
Class C Shares(5)
Six-month period ended 9-30-2013 (unaudited)		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2012		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2011		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2010		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2009		1.00		0.01		0.00		0.01		(0.01	)		—			(0.01	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2013		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2012		1.00		0.00		0.00		0.00		—	*		—			—	*
Year ended 3-31-2011		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2010		1.00		0.00		0.00		0.00		—	*		—	*		—	*
Year ended 3-31-2009		1.00		0.01		0.00		0.01		(0.01	)		—			(0.01	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) These shares are not available for direct investment. However, they are available by exchange from Class B or Class C shares of another Ivy Fund.

172 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)		Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3)
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	1.00		0.01	%	$	154		0.22	%(4)		0.02	%(4)		0.67	%(4)		-0.43	%(4)
Year ended 3-31-2013		1.00		0.02			128		0.31			0.02			0.67			-0.34
Year ended 3-31-2012		1.00		0.02			171		0.28			0.02			0.66			-0.36
Year ended 3-31-2011		1.00		0.04			159		0.43			0.02			0.69			-0.24
Year ended 3-31-2010		1.00		0.53			195		0.65			0.50			0.65			0.50
Year ended 3-31-2009		1.00		1.65			219		0.73			1.51			—			—
Class B Shares(5)
Six-month period ended 9-30-2013 (unaudited)		1.00		0.01			9		0.22	(4)		0.02	(4)		1.69	(4)		-1.45	(4)
Year ended 3-31-2013		1.00		0.02			8		0.31			0.02			1.70			-1.37
Year ended 3-31-2012		1.00		0.02			8		0.28			0.02			1.73			-1.43
Year ended 3-31-2011		1.00		0.04			7		0.43			0.02			1.80			-1.35
Year ended 3-31-2010		1.00		0.16			9		1.07			0.16			1.75			-0.52
Year ended 3-31-2009		1.00		0.74			19		1.61			0.58			1.70			0.49
Class C Shares(5)
Six-month period ended 9-30-2013 (unaudited)		1.00		0.01			45		0.22	(4)		0.02	(4)		1.63	(4)		-1.39	(4)
Year ended 3-31-2013		1.00		0.02			35		0.31			0.02			1.65			-1.32
Year ended 3-31-2012		1.00		0.02			41		0.28			0.02			1.64			-1.34
Year ended 3-31-2011		1.00		0.04			32		0.43			0.02			1.67			-1.22
Year ended 3-31-2010		1.00		0.16			39		1.08			0.16			1.67			-0.43
Year ended 3-31-2009		1.00		0.78			91		1.58			0.58			1.63			0.53
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		1.00		0.01			5		0.22	(4)		0.02	(4)		0.74	(4)		-0.50	(4)
Year ended 3-31-2013		1.00		0.02			5		0.31			0.02			0.75			-0.42
Year ended 3-31-2012		1.00		0.02			4		0.28			0.02			0.78			-0.48
Year ended 3-31-2011		1.00		0.04			3		0.43			0.02			0.79			-0.34
Year ended 3-31-2010		1.00		0.49			4		0.69			0.49			0.70			0.48
Year ended 3-31-2009		1.00		1.51			5		0.88			1.31			—			—

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 173

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL BOND FUND

	Net Asset Value, Beginning of Period		Net Investment Income(1)		Net Realized and Unrealized Gain  (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	12.19	$	0.16	$	(0.63	)	$	(0.47	)	$	(0.16	)	$	—	$	(0.16	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)
Year ended 3-31-2012		10.95		0.42		0.93			1.35			(0.42	)		—		(0.42	)
Year ended 3-31-2011		11.16		0.43		(0.21	)		0.22			(0.43	)		—		(0.43	)
Year ended 3-31-2010		10.41		0.45		0.75			1.20			(0.45	)		—		(0.45	)
Year ended 3-31-2009		10.80		0.39		(0.39	)		0.00			(0.39	)		—		(0.39	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		12.19		0.12		(0.63	)		(0.51	)		(0.12	)		—		(0.12	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Year ended 3-31-2012		10.95		0.33		0.93			1.26			(0.33	)		—		(0.33	)
Year ended 3-31-2011		11.16		0.34		(0.21	)		0.13			(0.34	)		—		(0.34	)
Year ended 3-31-2010		10.41		0.36		0.75			1.11			(0.36	)		—		(0.36	)
Year ended 3-31-2009		10.80		0.31		(0.39	)		(0.08	)		(0.31	)		—		(0.31	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		12.19		0.12		(0.63	)		(0.51	)		(0.12	)		—		(0.12	)
Year ended 3-31-2013		11.88		0.25		0.31			0.56			(0.25	)		—		(0.25	)
Year ended 3-31-2012		10.95		0.33		0.93			1.26			(0.33	)		—		(0.33	)
Year ended 3-31-2011		11.16		0.34		(0.21	)		0.13			(0.34	)		—		(0.34	)
Year ended 3-31-2010		10.41		0.37		0.75			1.12			(0.37	)		—		(0.37	)
Year ended 3-31-2009		10.80		0.31		(0.39	)		(0.08	)		(0.31	)		—		(0.31	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		12.19		0.17		(0.63	)		(0.46	)		(0.17	)		—		(0.17	)
Year ended 3-31-2013		11.88		0.36		0.31			0.67			(0.36	)		—		(0.36	)
Year ended 3-31-2012		10.95		0.44		0.93			1.37			(0.44	)		—		(0.44	)
Year ended 3-31-2011		11.16		0.45		(0.21	)		0.24			(0.45	)		—		(0.45	)
Year ended 3-31-2010(5)		11.10		0.19		0.06			0.25			(0.19	)		—		(0.19	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		12.19		0.16		(0.63	)		(0.47	)		(0.16	)		—		(0.16	)
Year ended 3-31-2013		11.88		0.34		0.31			0.65			(0.34	)		—		(0.34	)
Year ended 3-31-2012		10.95		0.42		0.93			1.35			(0.42	)		—		(0.42	)
Year ended 3-31-2011		11.16		0.43		(0.21	)		0.22			(0.43	)		—		(0.43	)
Year ended 3-31-2010(7)		11.30		0.22		(0.14	)		0.08			(0.22	)		—		(0.22	)
Period ended 9-24-2009(8)		10.80		0.14		(0.36	)		(0.22	)		(0.14	)		—		(0.14	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) For the period from November 4, 2009 (commencement of operations of the class) through March 31, 2010.

(6) For the fiscal year ended March 31, 2010.

(7) For the period from October 8, 2009 (recommencement of operations) through March 31, 2010.

(8) For the period from April 1, 2008 through September 24, 2008 when all outstanding Class Y shares were redeemed at the ending net asset value shown.

(9) For the fiscal year ended March 31, 2009.

174 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	11.56		-3.86	%	$	117			1.01	%(4)		2.74	%(4)		—	%		—	%		4	%
Year ended 3-31-2013		12.19		5.50			133			1.01			2.77			—			—			6
Year ended 3-31-2012		11.88		12.49			97			1.06			3.60			—			—			4
Year ended 3-31-2011		10.95		1.89			64			1.10			3.79			—			—			6
Year ended 3-31-2010		11.16		11.66			46			1.15			4.09			—			—			18
Year ended 3-31-2009		10.41		0.09			33			1.24			3.76			—			—			26
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.56		-4.22			3			1.77	(4)		1.98	(4)		—			—			4
Year ended 3-31-2013		12.19		4.72			4			1.75			2.04			—			—			6
Year ended 3-31-2012		11.88		11.67			3			1.81			2.83			—			—			4
Year ended 3-31-2011		10.95		1.10			2			1.88			3.00			—			—			6
Year ended 3-31-2010		11.16		10.75			2			1.92			3.33			—			—			18
Year ended 3-31-2009		10.41		-0.71			2			2.02			2.98			—			—			26
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		11.56		-4.22			22			1.77	(4)		1.98	(4)		—			—			4
Year ended 3-31-2013		12.19		4.71			31			1.76			2.03			—			—			6
Year ended 3-31-2012		11.88		11.65			28			1.82			2.85			—			—			4
Year ended 3-31-2011		10.95		1.12			20			1.86			3.02			—			—			6
Year ended 3-31-2010		11.16		10.84			23			1.90			3.34			—			—			18
Year ended 3-31-2009		10.41		-0.69			22			2.00			3.00			—			—			26
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		11.56		-3.76			1			0.81	(4)		2.93	(4)		—			—			4
Year ended 3-31-2013		12.19		5.72			2			0.80			2.94			—			—			6
Year ended 3-31-2012		11.88		12.75			1			0.85			3.79			—			—			4
Year ended 3-31-2011		10.95		2.10			1			0.88			4.02			—			—			6
Year ended 3-31-2010(5)		11.16		2.27			—	*		0.91	(4)		4.32	(4)		—			—			18	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		11.56		-3.87			1			1.01	(4)		2.74	(4)		1.06	(4)		2.69	(4)		4
Year ended 3-31-2013		12.19		5.49			1			1.01			2.78			1.06			2.73			6
Year ended 3-31-2012		11.88		12.51			1			1.06			3.63			1.11			3.58			4
Year ended 3-31-2011		10.95		1.90			1			1.10			3.78			1.13			3.75			6
Year ended 3-31-2010(7)		11.16		0.68			—	*		1.15	(4)		4.10	(4)		1.17	(4)		4.08	(4)		18	(6)
Period ended 9-24-2009(8)		10.44		-2.08			—			1.51	(4)		3.42	(4)		—			—			26	(9)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 175

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY MUNICIPAL HIGH INCOME FUND

	Net Asset Value, Beginning of Period		Net Investment Income			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	5.47	$	0.11	(3)	$	(0.50	)	$	(0.39	)	$	(0.11	)	$	—		$	(0.11	)
Year ended 3-31-2013		5.23		0.21	(3)		0.24			0.45			(0.21	)		—			(0.21	)
Year ended 3-31-2012		4.75		0.25	(3)		0.48			0.73			(0.25	)		—			(0.25	)
Year ended 3-31-2011		4.84		0.22	(3)		(0.09	)		0.13			(0.22	)		—	*		(0.22	)
Year ended 3-31-2010(5)		4.21		0.22	(3)		0.63			0.85			(0.21	)		(0.01	)		(0.22	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		5.47		0.09	(3)		(0.50	)		(0.41	)		(0.09	)		—			(0.09	)
Year ended 3-31-2013		5.23		0.17	(3)		0.24			0.41			(0.17	)		—			(0.17	)
Year ended 3-31-2012		4.75		0.20	(3)		0.49			0.69			(0.21	)		—			(0.21	)
Year ended 3-31-2011		4.84		0.18	(3)		(0.09	)		0.09			(0.18	)		—	*		(0.18	)
Year ended 3-31-2010(5)		4.21		0.17	(3)		0.64			0.81			(0.17	)		(0.01	)		(0.18	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		5.47		0.09	(3)		(0.50	)		(0.41	)		(0.09	)		—			(0.09	)
Year ended 3-31-2013		5.23		0.17	(3)		0.24			0.41			(0.17	)		—			(0.17	)
Year ended 3-31-2012		4.75		0.21	(3)		0.48			0.69			(0.21	)		—			(0.21	)
Year ended 3-31-2011		4.84		0.19	(3)		(0.09	)		0.10			(0.19	)		—	*		(0.19	)
Year ended 3-31-2010(5)		4.21		0.18	(3)		0.63			0.81			(0.17	)		(0.01	)		(0.18	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		5.47		0.12	(3)		(0.50	)		(0.38	)		(0.12	)		—			(0.12	)
Year ended 3-31-2013		5.23		0.22	(3)		0.24			0.46			(0.22	)		—			(0.22	)
Year ended 3-31-2012		4.75		0.25	(3)		0.48			0.73			(0.25	)		—			(0.25	)
Year ended 3-31-2011		4.84		0.24	(3)		(0.09	)		0.15			(0.24	)		—	*		(0.24	)
Six-month period ended 3-31-2010 (unaudited)(6)		4.21		0.23	(3)		0.63			0.86			(0.22	)		(0.01	)		(0.23	)
Six-month period ended 5-17-2009 (unaudited)(7)		4.48		0.16	(3)		(0.27	)		(0.11	)		(0.16	)		—			(0.16	)
Year ended 9-30-2008(7)		5.00		0.24			(0.51	)		(0.27	)		(0.25	)		—			(0.25	)
Year ended 9-30-2007(7)		5.10		0.25			(0.10	)		0.15			(0.25	)		—			(0.25	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		5.47		0.11	(3)		(0.50	)		(0.39	)		(0.11	)		—			(0.11	)
Year ended 3-31-2013		5.23		0.21	(3)		0.24			0.45			(0.21	)		—			(0.21	)
Year ended 3-31-2012		4.75		0.24	(3)		0.49			0.73			(0.25	)		—			(0.25	)
Year ended 3-31-2011		4.84		0.22	(3)		(0.09	)		0.13			(0.22	)		—	*		(0.22	)
Year ended 3-31-2010(5)		4.21		0.15	(3)		0.64			0.79			(0.15	)		(0.01	)		(0.16	)

* Not shown due to rounding.

(1) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(2) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(3) Based on average weekly shares outstanding.

(4) Annualized.

(5) For the period from May 18, 2009 (commencement of operations of the class) through March 31, 2010.

(6) The Ivy Municipal High Income Fund commenced operations on May 18, 2009 after the reorganization of the Class Y shares of Waddell & Reed Advisors Municipal High Income Fund into Class I shares of the Fund. The information shown is for a share outstanding during the fiscal period from May 18, 2009 through March 31, 2010 for Ivy Municipal High Income Fund.

(7) The information shown is for a share outstanding during the fiscal year or period ended for Class Y of the Waddell & Reed Advisors Municipal High Income Fund prior to the reorganization.

(8) The return shown for Class Y is hypothetical because there were no shares or assets for the period from July 28, 2009 through October 7, 2009. Class A data has been substituted for Class Y data during that period. .

176 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(1)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average  Net Assets Including Expense Waiver			Ratio of Net Investment Income to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(2)			Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(2)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	4.97		-7.14	%	$	403			0.85	%(4)		4.27	%(4)		0.86	%(4)		4.26	%(4)		14	%
Year ended 3-31-2013		5.47		8.71			545			0.84			3.91			0.85			3.90			9
Year ended 3-31-2012		5.23		15.62			384			0.87			4.88			0.90			4.85			4
Year ended 3-31-2011		4.75		2.71			146			0.94			4.63			0.98			4.59			13
Year ended 3-31-2010(5)		4.84		20.45			25			0.95	(4)		5.41	(4)		1.68	(4)		4.68	(4)		14	(4)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		4.97		-7.52			15			1.69	(4)		3.45	(4)		1.70	(4)		3.44	(4)		14
Year ended 3-31-2013		5.47		7.86			19			1.62			3.12			1.63			3.11			9
Year ended 3-31-2012		5.23		14.70			12			1.67			4.07			1.70			4.04			4
Year ended 3-31-2011		4.75		1.87			4			1.72			3.82			1.76			3.78			13
Year ended 3-31-2010(5)		4.84		19.59			2			1.72	(4)		4.52	(4)		2.38	(4)		3.86	(4)		14	(4)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		4.97		-7.48			241			1.59	(4)		3.54	(4)		1.60	(4)		3.53	(4)		14
Year ended 3-31-2013		5.47		7.92			323			1.57			3.17			1.59			3.15			9
Year ended 3-31-2012		5.23		14.77			198			1.62			4.12			1.65			4.09			4
Year ended 3-31-2011		4.75		1.91			65			1.67			3.89			1.71			3.85			13
Year ended 3-31-2010(5)		4.84		19.55			8			1.76	(4)		4.54	(4)		2.42	(4)		3.88	(4)		14	(4)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		4.97		-7.05			577			0.68	(4)		4.44	(4)		0.69	(4)		4.43	(4)		14
Year ended 3-31-2013		5.47		8.88			749			0.68			4.06			0.69			4.05			9
Year ended 3-31-2012		5.23		15.82			416			0.70			5.04			0.74			5.00			4
Year ended 3-31-2011		4.75		2.98			131			0.70			4.90			0.79			4.81			13
Six-month period ended 3-31-2010 (unaudited)(6)		4.84		20.68			8			0.70	(4)		5.77	(4)		1.53	(4)		4.94	(4)		14	(4)
Six-month period ended 5-17-2009 (unaudited)(7)		4.21		-4.72			—	*		0.87	(4)		6.35	(4)		0.91	(4)		6.31	(4)		28	(4)
Year ended 9-30-2008(7)		4.48		-5.67			—	*		0.70			5.03			0.74			4.99			26
Year ended 9-30-2007(7)		5.00		2.92			—	*		0.75			4.90			0.79			4.86			33
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		4.97		-7.14			20			0.85	(4)		4.24	(4)		0.95	(4)		4.14	(4)		14
Year ended 3-31-2013		5.47		8.71			34			0.84			3.92			0.94			3.82			9
Year ended 3-31-2012		5.23		15.65			26			0.87			4.83			0.99			4.71			4
Year ended 3-31-2011		4.75		2.73			6			0.94			4.76			1.05			4.65			13
Year ended 3-31-2010(5)		4.84		19.02	(8)		1			1.10	(4)		5.10	(4)		1.76	(4)		4.44	(4)		14	(4)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 177

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY PACIFIC OPPORTUNITIES FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	13.88	$	0.09	(1)	$	(0.05	)	$	0.04		$	—		$	—		$	—
Year ended 3-31-2013		13.98		0.03	(1)		(0.03	)		0.00			(0.10	)		—			(0.10	)
Year ended 3-31-2012		16.94		0.01	(1)		(2.39	)		(2.38	)		(0.06	)		(0.52	)		(0.58	)
Year ended 3-31-2011		14.84		(0.01	)(1)		2.11			2.10			—			—			—
Year ended 3-31-2010		8.86		(0.08	)(1)		6.06			5.98			—			—			—
Year ended 3-31-2009		17.61		0.05			(6.96	)		(6.91	)		—			(1.84	)		(1.84	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.78		0.00	(1)		(0.05	)		(0.05	)		—			—			—
Year ended 3-31-2013		11.92		(0.10	)(1)		(0.04	)		(0.14	)		—	*		—			—	*
Year ended 3-31-2012		14.64		(0.13	)(1)		(2.07	)		(2.20	)		—			(0.52	)		(0.52	)
Year ended 3-31-2011		12.97		(0.15	)(1)		1.82			1.67			—			—			—
Year ended 3-31-2010		7.83		(0.19	)(1)		5.33			5.14			—			—			—
Year ended 3-31-2009		16.01		(0.09	)		(6.30	)		(6.39	)		—			(1.79	)		(1.79	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		12.23		0.03	(1)		(0.05	)		(0.02	)		—			—			—
Year ended 3-31-2013		12.36		(0.06	)(1)		(0.03	)		(0.09	)		(0.04	)		—			(0.04	)
Year ended 3-31-2012		15.10		(0.08	)(1)		(2.14	)		(2.22	)		—			(0.52	)		(0.52	)
Year ended 3-31-2011		13.33		(0.10	)(1)		1.87			1.77			—			—			—
Year ended 3-31-2010		8.01		(0.17	)(1)		5.49			5.32			—			—			—
Year ended 3-31-2009		16.27		(0.09	)		(6.37	)		(6.46	)		—			(1.80	)		(1.80	)
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		14.04		0.12	(1)		(0.06	)		0.06			—			—			—
Year ended 3-31-2013		14.12		0.09	(1)		(0.03	)		0.06			(0.14	)		—			(0.14	)
Year ended 3-31-2012		17.15		0.06	(1)		(2.41	)		(2.35	)		(0.16	)		(0.52	)		(0.68	)
Year ended 3-31-2011		14.98		0.05	(1)		2.12			2.17			—			—			—
Year ended 3-31-2010		8.90		(0.01	)(1)		6.09			6.08			—			—			—
Year ended 3-31-2009		17.62		0.07			(6.93	)		(6.86	)		—			(1.86	)		(1.86	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.23		0.13	(1)		(0.06	)		0.07			—			—			—
Year ended 3-31-2013		14.30		0.10	(1)		(0.02	)		0.08			(0.15	)		—			(0.15	)
Year ended 3-31-2012		17.39		0.08	(1)		(2.46	)		(2.38	)		(0.19	)		(0.52	)		(0.71	)
Year ended 3-31-2011		15.16		0.05	(1)		2.18			2.23			—			—			—
Year ended 3-31-2010		9.00		(0.01	)(1)		6.17			6.16			—			—			—
Year ended 3-31-2009		17.77		0.10	(1)		(7.00	)		(6.90	)		—			(1.87	)		(1.87	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		13.87		0.08	(1)		(0.05	)		0.03			—			—			—
Year ended 3-31-2013(5)		14.07		(0.04	)(1)		(0.16	)		(0.20	)		—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.13		0.11	(1)		(0.05	)		0.06			—			—			—
Year ended 3-31-2013		14.22		0.09	(1)		(0.05	)		0.04			(0.13	)		—			(0.13	)
Year ended 3-31-2012		17.25		0.05	(1)		(2.44	)		(2.39	)		(0.12	)		(0.52	)		(0.64	)
Year ended 3-31-2011		15.08		0.03	(1)		2.14			2.17			—			—			—
Year ended 3-31-2010		8.98		(0.05	)(1)		6.15			6.10			—			—			—
Year ended 3-31-2009		17.75		0.08			(6.99	)		(6.91	)		—			(1.86	)		(1.86	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) Class is closed to investment.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

178 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average  Net Assets Including Expense Waiver			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	13.92		0.29	%	$	414			1.73	%(3)		1.33	%(3)		70	%
Year ended 3-31-2013		13.88		-0.02			491			1.74			0.25			142
Year ended 3-31-2012		13.98		-13.71			504			1.75			0.04			97
Year ended 3-31-2011		16.94		14.15			600			1.72			-0.07			137
Year ended 3-31-2010		14.84		67.50			514			1.83			-0.61			81
Year ended 3-31-2009		8.86		-38.76			239			1.92			0.37			112
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		11.73		-0.42			6			3.00	(3)		0.07	(3)		70
Year ended 3-31-2013		11.78		-1.13			8			2.94			-0.88			142
Year ended 3-31-2012		11.92		-14.69			10			2.88			-1.03			97
Year ended 3-31-2011		14.64		12.88			16			2.81			-1.07			137
Year ended 3-31-2010		12.97		65.65			17			2.91			-1.64			81
Year ended 3-31-2009		7.83		-39.46			10			3.07			-0.77			112
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		12.21		-0.16			13			2.57	(3)		0.47	(3)		70
Year ended 3-31-2013		12.23		-0.77			16			2.53			-0.48			142
Year ended 3-31-2012		12.36		-14.37			20			2.51			-0.63			97
Year ended 3-31-2011		15.10		13.28			32			2.46			-0.73			137
Year ended 3-31-2010		13.33		66.42			35			2.56			-1.38			81
Year ended 3-31-2009		8.01		-39.22			16			2.69			-0.36			112
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		14.10		0.43			—	*		1.33	(3)		1.69	(3)		70
Year ended 3-31-2013		14.04		0.40			—	*		1.34			0.64			142
Year ended 3-31-2012		14.12		-13.32			—	*		1.37			0.41			97
Year ended 3-31-2011		17.15		14.49			—	*		1.36			0.30			137
Year ended 3-31-2010		14.98		68.32			—	*		1.42			-0.11			81
Year ended 3-31-2009		8.90		-38.43			—	*		1.44			0.79			112
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.30		0.49			136			1.21	(3)		1.82	(3)		70
Year ended 3-31-2013		14.23		0.55			147			1.22			0.69			142
Year ended 3-31-2012		14.30		-13.28			138			1.25			0.52			97
Year ended 3-31-2011		17.39		14.71			159			1.24			0.28			137
Year ended 3-31-2010		15.16		68.44			104			1.29			-0.11			81
Year ended 3-31-2009		9.00		-38.34			45			1.31			0.81			112
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		13.90		0.14			—	*		1.82	(3)		1.21	(3)		70
Year ended 3-31-2013(5)		13.87		-1.35			—	*		1.80	(3)		-1.09	(3)		142	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.19		0.35			4			1.46	(3)		1.57	(3)		70
Year ended 3-31-2013		14.13		0.31			5			1.47			0.63			142
Year ended 3-31-2012		14.22		-13.48			6			1.50			0.30			97
Year ended 3-31-2011		17.25		14.39			9			1.50			0.22			137
Year ended 3-31-2010		15.08		67.93			9			1.55			-0.38			81
Year ended 3-31-2009		8.98		-38.47			4			1.57			0.69			112

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 179

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP GROWTH FUND

	Net Asset Value, Beginning of Period		Net Investment Loss			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income		Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	16.33	$	(0.10	)(1)	$	2.44		$	2.34		$	—	$	—		$	—
Year ended 3-31-2013		14.51		(0.14	)(1)		2.35			2.21			—		(0.39	)		(0.39	)
Year ended 3-31-2012		15.39		(0.17	)(1)		(0.21	)		(0.38	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		11.40		(0.13	)(1)		4.12			3.99			—		—			—
Year ended 3-31-2010		7.08		(0.12	)(1)		4.44			4.32			—		—			—
Year ended 3-31-2009		10.31		(0.12	)		(3.04	)		(3.16	)		—		(0.07	)		(0.07	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		13.95		(0.15	)(1)		2.07			1.92			—		—			—
Year ended 3-31-2013		12.57		(0.25	)(1)		2.02			1.77			—		(0.39	)		(0.39	)
Year ended 3-31-2012		13.56		(0.28	)(1)		(0.21	)		(0.49	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		10.15		(0.23	)(1)		3.64			3.41			—		—			—
Year ended 3-31-2010		6.37		(0.20	)(1)		3.98			3.78			—		—			—
Year ended 3-31-2009		9.39		(0.37	)		(2.58	)		(2.95	)		—		(0.07	)		(0.07	)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		14.63		(0.14	)(1)		2.18			2.04			—		—			—
Year ended 3-31-2013		13.12		(0.21	)(1)		2.11			1.90			—		(0.39	)		(0.39	)
Year ended 3-31-2012		14.07		(0.24	)(1)		(0.21	)		(0.45	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		10.49		(0.20	)(1)		3.78			3.58			—		—			—
Year ended 3-31-2010		6.56		(0.16	)(1)		4.09			3.93			—		—			—
Year ended 3-31-2009		9.62		(0.28	)		(2.71	)		(2.99	)		—		(0.07	)		(0.07	)
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		16.27		(0.11	)(1)		2.43			2.32			—		—			—
Year ended 3-31-2013		14.47		(0.15	)(1)		2.34			2.19			—		(0.39	)		(0.39	)
Year ended 3-31-2012		15.36		(0.18	)(1)		(0.21	)		(0.39	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		11.38		(0.14	)(1)		4.12			3.98			—		—			—
Year ended 3-31-2010		7.06		(0.11	)(1)		4.43			4.32			—		—			—
Year ended 3-31-2009		10.29		(0.13	)(1)		(3.03	)		(3.16	)		—		(0.07	)		(0.07	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		19.26		(0.08	)(1)		2.88			2.80			—		—			—
Year ended 3-31-2013		16.98		(0.09	)(1)		2.76			2.67			—		(0.39	)		(0.39	)
Year ended 3-31-2012		17.83		(0.13	)(1)		(0.22	)		(0.35	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		13.14		(0.09	)(1)		4.78			4.69			—		—			—
Year ended 3-31-2010		8.12		(0.07	)(1)		5.09			5.02			—		—			—
Year ended 3-31-2009		11.73		(0.07	)(1)		(3.47	)		(3.54	)		—		(0.07	)		(0.07	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		16.26		(0.12	)(1)		2.43			2.31			—		—			—
Year ended 3-31-2013		14.48		(0.17	)(1)		2.34			2.17			—		(0.39	)		(0.39	)
Year ended 3-31-2012		15.38		(0.19	)(1)		(0.21	)		(0.40	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		11.40		(0.15	)(1)		4.13			3.98			—		—			—
Year ended 3-31-2010		7.08		(0.12	)(1)		4.44			4.32			—		—			—
Year ended 3-31-2009		10.30		(0.15	)		(3.00	)		(3.15	)		—		(0.07	)		(0.07	)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		18.66		(0.10	)(1)		2.79			2.69			—		—			—
Year ended 3-31-2013		16.50		(0.13	)(1)		2.68			2.55			—		(0.39	)		(0.39	)
Year ended 3-31-2012		17.38		(0.16	)(1)		(0.22	)		(0.38	)		—		(0.50	)		(0.50	)
Year ended 3-31-2011		12.85		(0.12	)(1)		4.65			4.53			—		—			—
Year ended 3-31-2010		7.96		(0.10	)(1)		4.99			4.89			—		—			—
Year ended 3-31-2009		11.53		(0.10	)(1)		(3.40	)		(3.50	)		—		(0.07	)		(0.07	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

180 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Loss to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	18.67		14.33	%	$	351			1.44	%(4)		-1.16	%(4)		—	%		—	%		25	%
Year ended 3-31-2013		16.33		15.70			281			1.49			-0.97			—			—			38
Year ended 3-31-2012		14.51		-1.98			241			1.50			-1.21			—			—			65
Year ended 3-31-2011		15.39		35.00			240			1.51			-1.05			—			—			53
Year ended 3-31-2010		11.40		61.02			132			1.66			-1.24			—			—			72
Year ended 3-31-2009		7.08		-30.58			66			1.71			-1.38			—			—			85
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.87		13.76			12			2.38	(4)		-2.10	(4)		—			—			25
Year ended 3-31-2013		13.95		14.61			11			2.49			-1.96			—			—			38
Year ended 3-31-2012		12.57		-3.07			10			2.57			-2.27			—			—			65
Year ended 3-31-2011		13.56		33.60			11			2.54			-2.08			—			—			53
Year ended 3-31-2010		10.15		59.34			8			2.77			-2.34			—			—			72
Year ended 3-31-2009		6.37		-31.35			6			2.75			-2.43			—			—			85
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		16.67		13.94			212			2.10	(4)		-1.82	(4)		—			—			25
Year ended 3-31-2013		14.63		15.00			189			2.13			-1.61			—			—			38
Year ended 3-31-2012		13.12		-2.67			181			2.17			-1.87			—			—			65
Year ended 3-31-2011		14.07		34.13			207			2.18			-1.71			—			—			53
Year ended 3-31-2010		10.49		59.91			154			2.29			-1.86			—			—			72
Year ended 3-31-2009		6.56		-31.01			103			2.34			-2.01			—			—			85
Class E Shares
Six-month period ended 9-30-2013 (unaudited)		18.59		14.26			4			1.56	(4)		-1.28	(4)		1.93	(4)		-1.65	(4)		25
Year ended 3-31-2013		16.27		15.61			3			1.56			-1.03			2.06			-1.53			38
Year ended 3-31-2012		14.47		-2.05			3			1.56			-1.27			2.08			-1.79			65
Year ended 3-31-2011		15.36		34.97			3			1.56			-1.08			2.17			-1.69			53
Year ended 3-31-2010		11.38		61.19			1			1.56			-1.14			2.69			-2.27			72
Year ended 3-31-2009		7.06		-30.64			1			1.90			-1.57			2.82			-2.49			85
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		22.06		14.54			220			1.06	(4)		-0.78	(4)		—			—			25
Year ended 3-31-2013		19.26		16.13			176			1.07			-0.54			—			—			38
Year ended 3-31-2012		16.98		-1.54			119			1.07			-0.79			—			—			65
Year ended 3-31-2011		17.83		35.69			84			1.07			-0.61			—			—			53
Year ended 3-31-2010		13.14		61.82			8			1.10			-0.68			—			—			72
Year ended 3-31-2009		8.12		-30.12			4			1.09			-0.76			—			—			85
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		18.57		14.21			33			1.67	(4)		-1.39	(4)		—			—			25
Year ended 3-31-2013		16.26		15.45			22			1.67			-1.15			—			—			38
Year ended 3-31-2012		14.48		-2.11			17			1.66			-1.37			—			—			65
Year ended 3-31-2011		15.38		34.91			15			1.62			-1.16			—			—			53
Year ended 3-31-2010		11.40		61.02			4			1.64			-1.24			—			—			72
Year ended 3-31-2009		7.08		-30.52			—	*		1.63			-1.30			—			—			85
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		21.35		14.42			263			1.31	(4)		-1.03	(4)		—			—			25
Year ended 3-31-2013		18.66		15.87			220			1.31			-0.79			—			—			38
Year ended 3-31-2012		16.50		-1.75			207			1.32			-1.03			—			—			65
Year ended 3-31-2011		17.38		35.25			222			1.33			-0.86			—			—			53
Year ended 3-31-2010		12.85		61.43			124			1.35			-0.92			—			—			72
Year ended 3-31-2009		7.96		-30.30			70			1.34			-1.01			—			—			85

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 181

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY SMALL CAP VALUE FUND

	Net Asset Value, Beginning of Period			Net Investment Income (Loss)			Net  Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	17.23		$	(0.05	)(1)	$	1.55		$	1.50		$	—		$	—		$	—
Year ended 3-31-2013		14.96			0.02	(1)		2.82			2.84			—			(0.57	)		(0.57	)
Year ended 3-31-2012		18.12			0.00	(1)		(1.69	)		(1.69	)		(0.01	)		(1.46	)		(1.47	)
Year ended 3-31-2011		14.99			0.03	(1)		3.10			3.13			—			—			—
Year ended 3-31-2010		9.87			(0.07	)(1)		5.19			5.12			—			—			—
Year ended 3-31-2009		12.96			(0.06	)		(3.03	)		(3.09	)		—			—			—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.39			(0.12	)(1)		1.38			1.26			—			—			—
Year ended 3-31-2013		13.48			(0.13	)(1)		2.50			2.37			—			(0.46	)		(0.46	)
Year ended 3-31-2012		16.66			(0.15	)(1)		(1.57	)		(1.72	)		—			(1.46	)		(1.46	)
Year ended 3-31-2011		13.95			(0.15	)(1)		2.86			2.71			—			—			—
Year ended 3-31-2010		9.29			(0.21	)(1)		4.87			4.66			—			—			—
Year ended 3-31-2009		12.34			(0.23	)		(2.82	)		(3.05	)		—			—			—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		15.94			(0.10	)(1)		1.43			1.33			—			—			—
Year ended 3-31-2013		13.92			(0.08	)(1)		2.60			2.52			—			(0.50	)		(0.50	)
Year ended 3-31-2012		17.09			(0.10	)(1)		(1.61	)		(1.71	)		—			(1.46	)		(1.46	)
Year ended 3-31-2011		14.25			(0.08	)(1)		2.92			2.84			—			—			—
Year ended 3-31-2010		9.45			(0.16	)(1)		4.96			4.80			—			—			—
Year ended 3-31-2009		12.51			(0.11	)		(2.95	)		(3.06	)		—			—			—
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		17.59			(0.01	)(1)		1.58			1.57			—			—			—
Year ended 3-31-2013		15.25	��		0.10	(1)		2.85			2.95			—			(0.61	)		(0.61	)
Year ended 3-31-2012		18.43			0.07	(1)		(1.71	)		(1.64	)		(0.08	)		(1.46	)		(1.54	)
Year ended 3-31-2011		15.19			0.10	(1)		3.14			3.24			—			—			—
Year ended 3-31-2010		9.94			(0.01	)(1)		5.26			5.25			—			—			—
Year ended 3-31-2009		12.98			0.01			(3.05	)		(3.04	)		—			—			—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		18.03			0.00	(1)		1.62			1.62			—			—			—
Year ended 3-31-2013		15.61			0.11	(1)		2.94			3.05			—			(0.63	)		(0.63	)
Year ended 3-31-2012		18.83			0.07	(1)		(1.73	)		(1.66	)		(0.10	)		(1.46	)		(1.56	)
Year ended 3-31-2011		15.49			0.13	(1)		3.21			3.34			—			—			—
Year ended 3-31-2010		10.13			0.00	(1)		5.36			5.36			—			—			—
Year ended 3-31-2009		13.20			0.02	(1)		(3.09	)		(3.07	)		—			—			—
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		17.23			(0.05	)(1)		1.54			1.49			—			—			—
Year ended 3-31-2013(5)		15.24			(0.02	)(1)		2.01			1.99			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		17.74			(0.02	)(1)		1.59			1.57			—			—			—
Year ended 3-31-2013		15.38			0.01	(1)		2.95			2.96			—			(0.60	)		(0.60	)
Year ended 3-31-2012		18.58			0.04	(1)		(1.72	)		(1.68	)		(0.06	)		(1.46	)		(1.52	)
Year ended 3-31-2011		15.33			0.08	(1)		3.17			3.25			—			—			—
Year ended 3-31-2010		10.05			(0.02	)(1)		5.30			5.28			—			—			—
Year ended 3-31-2009		13.13			(0.01	)(1)		(3.07	)		(3.08	)		—			—			—

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Annualized.

(4) Class is closed to investment.

(5) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(6) For the fiscal year ended March 31, 2013.

182 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	18.73		8.71	%	$	237			1.58	%(3)		-0.52	%(3)		36	%
Year ended 3-31-2013		17.23		19.49			226			1.66			0.15			52
Year ended 3-31-2012		14.96		-8.06			209			1.67			0.00			50
Year ended 3-31-2011		18.12		20.88			254			1.65			0.19			73
Year ended 3-31-2010		14.99		51.87			202			1.77			-0.55			100
Year ended 3-31-2009		9.87		-23.84			106			1.93			-0.54			101
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		16.65		8.12			4			2.61	(3)		-1.55	(3)		36
Year ended 3-31-2013		15.39		18.22			4			2.78			-0.97			52
Year ended 3-31-2012		13.48		-9.09			4			2.78			-1.09			50
Year ended 3-31-2011		16.66		19.43			6			2.85			-1.07			73
Year ended 3-31-2010		13.95		50.16			7			2.99			-1.77			100
Year ended 3-31-2009		9.29		-24.72			4			3.04			-1.67			101
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		17.27		8.28			18			2.28	(3)		-1.22	(3)		36
Year ended 3-31-2013		15.94		18.74			16			2.35			-0.54			52
Year ended 3-31-2012		13.92		-8.80			16			2.40			-0.72			50
Year ended 3-31-2011		17.09		19.93			19			2.42			-0.57			73
Year ended 3-31-2010		14.25		50.79			14			2.55			-1.33			100
Year ended 3-31-2009		9.45		-24.46			6			2.72			-1.34			101
Class E Shares(4)
Six-month period ended 9-30-2013 (unaudited)		19.16		8.93			—	*		1.22	(3)		-0.15	(3)		36
Year ended 3-31-2013		17.59		20.03			—	*		1.22			0.61			52
Year ended 3-31-2012		15.25		-7.68			—	*		1.23			0.44			50
Year ended 3-31-2011		18.43		21.33			—	*		1.24			0.61			73
Year ended 3-31-2010		15.19		52.82			—	*		1.27			-0.05			100
Year ended 3-31-2009		9.94		-23.42			—	*		1.30			0.07			101
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		19.65		8.99			24			1.11	(3)		-0.03	(3)		36
Year ended 3-31-2013		18.03		20.17			19			1.11			0.72			52
Year ended 3-31-2012		15.61		-7.59			16			1.11			0.48			50
Year ended 3-31-2011		18.83		21.56			4			1.12			0.78			73
Year ended 3-31-2010		15.49		52.91			2			1.18			0.04			100
Year ended 3-31-2009		10.13		-23.26			1			1.18			0.20			101
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		18.72		8.65			—	*		1.70	(3)		-0.60	(3)		36
Year ended 3-31-2013(5)		17.23		13.06			—	*		1.68	(3)		-0.44	(3)		52	(6)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		19.31		8.85			8			1.32	(3)		-0.24	(3)		36
Year ended 3-31-2013		17.74		19.85			7			1.41			0.05			52
Year ended 3-31-2012		15.38		-7.87			22			1.39			0.28			50
Year ended 3-31-2011		18.58		21.20			26			1.39			0.47			73
Year ended 3-31-2010		15.33		52.54			19			1.40			-0.17			100
Year ended 3-31-2009		10.05		-23.46			8			1.42			-0.06			101

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 183

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY TAX-MANAGED EQUITY FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains		Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	14.13	$	(0.03	)(3)	$	1.51		$	1.48		$	—		$	—	$	—
Year ended 3-31-2013		13.15		0.05	(3)		0.99			1.04			(0.06	)		—		(0.06	)
Year ended 3-31-2012		12.15		(0.03	)(3)		1.03			1.00			—			—		—
Year ended 3-31-2011		10.78		(0.10	)(3)		1.47			1.37			—			—		—
Year ended 3-31-2010(5)		8.62		(0.11	)(3)		2.27			2.16			—			—		—
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		13.87		(0.07	)(3)		1.47			1.40			—			—		—
Year ended 3-31-2013		12.92		(0.03	)(3)		0.99			0.96			(0.01	)		—		(0.01	)
Year ended 3-31-2012		12.01		(0.10	)(3)		1.01			0.91			—			—		—
Year ended 3-31-2011		10.72		(0.17	)(3)		1.46			1.29			—			—		—
Year ended 3-31-2010(5)		8.62		(0.15	)(3)		2.25			2.10			—			—		—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		13.85		(0.07	)(3)		1.47			1.40			—			—		—
Year ended 3-31-2013		12.91		(0.03	)(3)		0.97			0.94			—			—		—
Year ended 3-31-2012		12.01		(0.11	)(3)		1.01			0.90			—			—		—
Year ended 3-31-2011		10.72		(0.17	)(3)		1.46			1.29			—			—		—
Year ended 3-31-2010(5)		8.62		(0.15	)(3)		2.25			2.10			—			—		—
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		14.20		(0.01	)(3)		1.51			1.50			—			—		—
Year ended 3-31-2013		13.27		0.09	(3)		0.92			1.01			(0.08	)		—		(0.08	)
Year ended 3-31-2012		12.22		0.00	(3)		1.05			1.05			—			—		—
Year ended 3-31-2011		10.81		(0.08	)(3)		1.49			1.41			—			—		—
Six-month period ended 3-31-2010 (unaudited)(6)		8.62		(0.07	)(3)		2.26			2.19			—			—		—
Six-month period ended 5-17-2009 (unaudited)(7)		11.51		(0.07	)(3)		(2.82	)		(2.89	)		—			—		—
Year ended 6-30-2008(7)		11.00		(0.12	)		0.63			0.51			—			—		—
Year ended 6-30-2007(7)		9.32		(0.02	)		1.70			1.68			—			—		—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		14.15		(0.03	)(3)		1.51			1.48			—			—		—
Year ended 3-31-2013		13.16		0.05	(3)		1.00			1.05			(0.06	)		—		(0.06	)
Year ended 3-31-2012		12.15		(0.02	)(3)		1.03			1.01			—			—		—
Year ended 3-31-2011		10.78		(0.10	)(3)		1.47			1.37			—			—		—
Year ended 3-31-2010(5)		8.62		(0.07	)(3)		2.23			2.16			—			—		—

* Not shown due to rounding.

(1) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(2) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(3) Based on average weekly shares outstanding.

(4) Annualized.

(5) For the period from May 18, 2009 (commencement of operations of the class) through March 31, 2010.

(6) The Ivy Tax-Managed Equity Fund commenced operations on May 18, 2009 after the reorganization of the Class Y shares of Waddell & Reed Advisors Tax-Managed Equity Fund into Class I shares of the Fund. The information shown is for a share outstanding during the fiscal period from May 18, 2009 through March 31, 2010 for Ivy Tax-Managed Equity Fund.

(7) The information shown is for a share outstanding during the fiscal year or period ended for Class Y of the Waddell & Reed Advisors Tax-Managed Equity Fund prior to the reorganization.

(8) The return shown for Class Y is hypothetical because there were no shares or assets for the period from July 28, 2009 through October 7, 2009. Class A data has been substituted for Class Y data during that period.

184 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(1)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(2)			Ratio of Net Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(2)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	15.61		10.47	%	$	33			1.53	%(4)		-0.40	%(4)		—	%		—	%		19	%
Year ended 3-31-2013		14.13		7.91			24			1.14			0.34			1.63			-0.15			26
Year ended 3-31-2012		13.15		8.23			15			1.32			-0.27			1.97			-0.92			26
Year ended 3-31-2011		12.15		12.71			9			2.10			-0.93			2.75			-1.58			41
Year ended 3-31-2010(5)		10.78		25.06			3			2.57	(4)		-1.26	(4)		4.33	(4)		-3.02	(4)		19	(4)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		15.27		10.09			1			2.14	(4)		-1.01	(4)		—			—			19
Year ended 3-31-2013		13.87		7.41			1			1.69			-0.22			2.19			-0.72			26
Year ended 3-31-2012		12.92		7.58			1			1.90			-0.85			2.55			-1.50			26
Year ended 3-31-2011		12.01		12.03			1			2.74			-1.56			3.39			-2.21			41
Year ended 3-31-2010(5)		10.72		24.36			—	*		3.12	(4)		-1.81	(4)		4.88	(4)		-3.57	(4)		19	(4)
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		15.25		10.11			1			2.16	(4)		-1.04	(4)		—			—			19
Year ended 3-31-2013		13.85		7.28			1			1.76			-0.24			2.26			-0.74			26
Year ended 3-31-2012		12.91		7.49			1			1.97			-0.92			2.62			-1.57			26
Year ended 3-31-2011		12.01		12.03			1			2.75			-1.57			3.40			-2.22			41
Year ended 3-31-2010(5)		10.72		24.36			1			3.13	(4)		-1.82	(4)		4.89	(4)		-3.58	(4)		19	(4)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		15.70		10.56			1			1.24	(4)		-0.11	(4)		—			—			19
Year ended 3-31-2013		14.20		7.70			1			0.80			0.68			1.30			0.18			26
Year ended 3-31-2012		13.27		8.59			1			1.02			0.03			1.67			-0.62			26
Year ended 3-31-2011		12.22		13.04			1			1.87			-0.70			2.52			-1.35			41
Six-month period ended 3-31-2010 (unaudited)(6)		10.81		25.41			1			2.11	(4)		-0.82	(4)		4.03	(4)		-2.74	(4)		19	(4)
Six-month period ended 5-17-2009 (unaudited)(7)		8.62		-25.11			—	*		2.42	(4)		-1.05	(4)		—			—			40
Year ended 6-30-2008(7)		11.51		4.64			—	*		2.11			-0.97			—			—			27
Year ended 6-30-2007(7)		11.00		18.03			—	*		1.24			-0.23			—			—			55	(4)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		15.63		10.38			1			1.49	(4)		-0.37	(4)		—			—			19
Year ended 3-31-2013		14.15		8.12			1			1.02			0.39			1.51			-0.10			26
Year ended 3-31-2012		13.16		8.31			1			1.25			-0.17			1.90			-0.82			26
Year ended 3-31-2011		12.15		12.71			1			2.09			-0.91			2.74			-1.56			41
Year ended 3-31-2010(5)		10.78		25.06	(8)		—	*		2.52	(4)		-1.11	(4)		4.28	(4)		-2.87	(4)		19	(4)

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 185

FINANCIAL HIGHLIGHTS

Ivy Funds FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD

IVY VALUE FUND

	Net Asset Value, Beginning of Period		Net Investment Income (Loss)			Net Realized and Unrealized Gain (Loss) on Investments			Total from Investment Operations			Distributions From Net Investment Income			Distributions From Net Realized Gains			Distributions From Return of Capital			Total Distributions
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	20.30	$	0.03	(1)	$	1.63		$	1.66		$	—		$	—		$	—		$	—
Year ended 3-31-2013		17.57		0.15	(1)		2.73			2.88			(0.15	)		—	*		—			(0.15	)
Year ended 3-31-2012		17.93		0.13	(1)		(0.19	)		(0.06	)		(0.12	)		(0.18	)		—			(0.30	)
Year ended 3-31-2011		15.56		(0.02	)(1)		2.39			2.37			—			—			—			—
Year ended 3-31-2010		9.94		0.02	(1)		5.65			5.67			(0.03	)		—			(0.02	)		(0.05	)
Year ended 3-31-2009		15.95		0.13			(6.03	)		(5.90	)		(0.11	)		—			—			(0.11	)
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		19.28		(0.06	)(1)		1.55			1.49			—			—			—			—
Year ended 3-31-2013		16.72		(0.03	)(1)		2.59			2.56			—			—	*		—			—	*
Year ended 3-31-2012		17.15		(0.07	)(1)		(0.18	)		(0.25	)		—			(0.18	)		—			(0.18	)
Year ended 3-31-2011		15.12		(0.25	)(1)		2.28			2.03			—			—			—			—
Year ended 3-31-2010		9.78		(0.17	)(1)		5.51			5.34			—			—			—			—
Year ended 3-31-2009		15.76		(0.10	)		(5.88	)		(5.98	)		—			—			—			—
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		19.80		(0.04	)(1)		1.59			1.55			—			—			—			—
Year ended 3-31-2013		17.16		0.02	(1)		2.67			2.69			(0.05	)		—	*		—			(0.05	)
Year ended 3-31-2012		17.53		0.00	(1)		(0.17	)		(0.17	)		(0.02	)		(0.18	)		—			(0.20	)
Year ended 3-31-2011		15.34		(0.14	)(1)		2.33			2.19			—			—			—			—
Year ended 3-31-2010		9.86		(0.08	)(1)		5.56			5.48			—			—			—			—
Year ended 3-31-2009		15.83		0.00	(1)		(5.97	)		(5.97	)		—			—			—			—
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		20.36		0.05	(1)		1.64			1.69			—			—			—			—
Year ended 3-31-2013		17.61		0.20	(1)		2.74			2.94			(0.19	)		—	*		—			(0.19	)
Year ended 3-31-2012		18.03		0.18	(1)		(0.19	)		(0.01	)		(0.23	)		(0.18	)		—			(0.41	)
Year ended 3-31-2011		15.60		0.04	(1)		2.39			2.43			—			—			—			—
Year ended 3-31-2010		9.95		0.06	(1)		5.70			5.76			(0.06	)		—			(0.05	)		(0.11	)
Year ended 3-31-2009		15.97		0.20			(6.04	)		(5.84	)		(0.18	)		—			—			(0.18	)
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		20.36		0.06	(1)		1.64			1.70			—			—			—			—
Year ended 3-31-2013		17.61		0.22	(1)		2.74			2.96			(0.21	)		—	*		—			(0.21	)
Year ended 3-31-2012		18.05		0.21	(1)		(0.20	)		0.01			(0.27	)		(0.18	)		—			(0.45	)
Year ended 3-31-2011		15.60		0.08	(1)		2.37			2.45			—			—			—			—
Year ended 3-31-2010		9.95		0.06	(1)		5.71			5.77			(0.06	)		—			(0.06	)		(0.12	)
Year ended 3-31-2009		15.97		0.22			(6.04	)		(5.82	)		(0.20	)		—			—			(0.20	)
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		20.28		0.00	(1)		1.63			1.63			—			—			—			—
Year ended 3-31-2013(6)		18.17		0.04	(1)		2.07			2.11			—			—			—			—
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		20.33		0.04	(1)		1.64			1.68			—			—			—			—
Year ended 3-31-2013		17.59		0.17	(1)		2.75			2.92			(0.18	)		—	*		—			(0.18	)
Year ended 3-31-2012		17.99		0.14	(1)		(0.17	)		(0.03	)		(0.19	)		(0.18	)		—			(0.37	)
Year ended 3-31-2011		15.58		0.02	(1)		2.39			2.41			—			—			—			—
Year ended 3-31-2010		9.95		0.04	(1)		5.67			5.71			(0.04	)		—			(0.04	)		(0.08	)
Year ended 3-31-2009		15.96		0.26			(6.11	)		(5.85	)		(0.16	)		—			—			(0.16	)

* Not shown due to rounding.

(1) Based on average weekly shares outstanding.

(2) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.

(3) Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses.

(4) Annualized.

(5) Class is closed to investment.

(6) For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013.

(7) For the fiscal year ended March 31, 2013.

186 SEMIANNUAL REPORT 2013

	Net Asset Value, End of Period		Total Return(2)			Net Assets, End of Period (in millions)			Ratio of Expenses to Average Net Assets Including Expense Waiver			Ratio of Net Investment Income (Loss) to Average Net Assets Including Expense Waiver			Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)			Ratio of Net Investment Loss to Average Net Assets Excluding Expense Waiver(3)			Portfolio Turnover Rate
Class A Shares
Six-month period ended 9-30-2013 (unaudited)	$	21.96		8.18	%	$	195			1.33	%(4)		0.26	%(4)		—	%		—	%		29	%
Year ended 3-31-2013		20.30		16.59			156			1.43			0.82			—			—			57
Year ended 3-31-2012		17.57		-0.13			106			1.53			0.77			—			—			54
Year ended 3-31-2011		17.93		15.23			87			1.59			-0.12			1.66			-0.19			40
Year ended 3-31-2010		15.56		57.09			56			1.85			0.26			—			—			77
Year ended 3-31-2009		9.94		-37.09			34			1.79			0.98			—			—			57
Class B Shares
Six-month period ended 9-30-2013 (unaudited)		20.77		7.67			6			2.19	(4)		-0.60	(4)		—			—			29
Year ended 3-31-2013		19.28		15.40			5			2.43			-0.16			—			—			57
Year ended 3-31-2012		16.72		-1.34			3			2.78			-0.47			—			—			54
Year ended 3-31-2011		17.15		13.43			3			3.12			-1.66			—			—			40
Year ended 3-31-2010		15.12		54.60			3			3.40			-1.28			—			—			77
Year ended 3-31-2009		9.78		-37.94			2			3.08			-0.35			—			—			57
Class C Shares
Six-month period ended 9-30-2013 (unaudited)		21.35		7.83			12			2.02	(4)		-0.43	(4)		—			—			29
Year ended 3-31-2013		19.80		15.77			9			2.13			0.12			—			—			57
Year ended 3-31-2012		17.16		-0.85			8			2.25			0.02			—			—			54
Year ended 3-31-2011		17.53		14.28			8			2.40			-0.92			—			—			40
Year ended 3-31-2010		15.34		55.58			5			2.70			-0.63			—			—			77
Year ended 3-31-2009		9.86		-37.71			2			2.79			0.01			—			—			57
Class E Shares(5)
Six-month period ended 9-30-2013 (unaudited)		22.05		8.30			—	*		1.12	(4)		0.48	(4)		—			—			29
Year ended 3-31-2013		20.36		16.93			—	*		1.14			1.11			—			—			57
Year ended 3-31-2012		17.61		0.26			—	*		1.18			1.08			—			—			54
Year ended 3-31-2011		18.03		15.58			—	*		1.24			0.22			—			—			40
Year ended 3-31-2010		15.60		58.05			—	*		1.29			0.82			—			—			77
Year ended 3-31-2009		9.95		-36.75			—	*		1.25			1.52			—			—			57
Class I Shares
Six-month period ended 9-30-2013 (unaudited)		22.06		8.35			5			1.01	(4)		0.59	(4)		—			—			29
Year ended 3-31-2013		20.36		17.03			4			1.02			1.21			—			—			57
Year ended 3-31-2012		17.61		0.38			3			1.06			1.25			—			—			54
Year ended 3-31-2011		18.05		15.71			2			1.12			0.47			—			—			40
Year ended 3-31-2010		15.60		58.20			—	*		1.15			0.87			—			—			77
Year ended 3-31-2009		9.95		-36.67			—	*		1.11			1.66			—			—			57
Class R Shares
Six-month period ended 9-30-2013 (unaudited)		21.91		8.04			—	*		1.59	(4)		0.00	(4)		—			—			29
Year ended 3-31-2013(6)		20.28		11.61			—	*		1.55	(4)		0.73	(4)		—			—			57	(7)
Class Y Shares
Six-month period ended 9-30-2013 (unaudited)		22.01		8.26			2			1.24	(4)		0.39	(4)		—			—			29
Year ended 3-31-2013		20.33		16.78			2			1.27			0.97			—			—			57
Year ended 3-31-2012		17.59		0.09			2			1.31			0.86			—			—			54
Year ended 3-31-2011		17.99		15.47			2			1.37			0.11			—			—			40
Year ended 3-31-2010		15.58		57.52			1			1.54			0.57			—			—			77
Year ended 3-31-2009		9.95		-36.80			—	*		1.40			1.41			—			—			57

See Accompanying Notes to Financial Statements.

2013 SEMIANNUAL REPORT 187

NOTES TO FINANCIAL STATEMENTS

Ivy Funds SEPTEMBER 30, 2013 (UNAUDITED)

1. ORGANIZATION

Ivy Funds, a Delaware statutory trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. Ivy Bond Fund, Ivy Core Equity Fund, Ivy Cundill Global Value Fund, Ivy Dividend Opportunities Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund, Ivy International Core Equity Fund, Ivy International Growth Fund, Ivy Large Cap Growth Fund, Ivy Limited-Term Bond Fund, Ivy Managed European/Pacific Fund, Ivy Managed International Opportunities Fund, Ivy Micro Cap Growth Fund, Ivy Mid Cap Growth Fund, Ivy Money Market Fund, Ivy Municipal Bond Fund, Ivy Municipal High Income Fund, Ivy Pacific Opportunities Fund, Ivy Small Cap Growth Fund, Ivy Small Cap Value Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a “Fund”) are 25 series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information. Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).

Each Fund offers Class A, Class B and Class C shares. Certain Funds may also offer Class E, Class I, Class R and/or Class Y shares. Class A and Class E shares are sold at their offering price, which is normally net asset value plus a front-end sales charge. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a contingent deferred sales charge (“CDSC”). Class I, Class R and Class Y shares are sold without either a front-end sales charge or a CDSC. All classes of shares have identical rights and voting privileges with respect to the Fund in general and exclusive voting rights on matters that affect that class alone. Net investment income, net assets and net asset value per share may differ due to each class having its own expenses, such as transfer agent and shareholder servicing fees, directly attributable to that class. Class A, B, C, E, R and Y have a distribution and service plan. Class I shares are not included in the plan. Class B shares will automatically convert to Class A shares 96 months after the date of purchase.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

Foreign Currency Translation. Each Fund’s accounting records are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies are translated into U.S. dollars daily, using foreign exchange rates obtained from an independent pricing service authorized by the Board of Trustees of the Trust (the “Board”). Purchases and sales of investment securities and accruals of income and expenses are translated at the rate of exchange prevailing on the date of the transaction. For assets and liabilities other than investments in securities, net realized and unrealized gains and losses from foreign currency translation arise from changes in currency exchange rates. Each Fund combines fluctuations from currency exchange rates and fluctuations in value when computing net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments. Foreign exchange rates are valued as of the close of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

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

It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition, each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. Management of the Trust periodically reviews all tax positions to assess that it is more likely than not that the position would be sustained upon examination by the relevant tax authority based on the technical merits of each position. As of and for the period ended September 30, 2013, management believes that no liability for unrecognized tax positions is required. The Funds are subject to examination by U.S. federal and state authorities for returns filed for tax years after 2008.

Dividends and Distributions to Shareholders. Dividends and distributions to shareholders are recorded by each Fund on the business day following record date. Net investment income dividends and capital gains distributions are determined in accordance with income tax regulations which may differ from accounting principles generally accepted in the United States of America (“U.S. GAAP”). If the total dividends and distributions made in any tax year exceeds net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a tax return of capital.

Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that a Fund either deliver collateral or segregate assets in connection with certain investments (e.g., dollar rolls, financial futures contracts, foreign currency exchange contracts, options written, securities with extended settlement periods and swaps), the Fund will segregate collateral or designate on its books and records cash or other liquid securities having a value at least equal to the amount that is required to be physically segregated for the benefit of the counterparty. Furthermore, based on requirements and agreements with certain exchanges and third party

188 SEMIANNUAL REPORT 2013

broker-dealers, each party has requirements to deliver/deposit cash or securities as collateral for certain investments. Certain countries require that cash reserves be held while investing in companies incorporated in that country. These cash reserves and cash collateral that has been pledged to cover obligations of the Funds under derivative contracts, if any, will be reported separately on the Statement of Assets and Liabilities as “Restricted cash.” Securities collateral pledged for the same purpose, if any, is noted on the Schedule of Investments.

Concentration of Market and Credit Risk. In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded on the Funds’ Statement of Assets and Liabilities, less any collateral held by the Funds.

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

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

If a Fund invests directly in foreign currencies or in securities that trade in, and receive revenues in, foreign currencies, or in financial derivatives that provide exposure to foreign currencies, it will be subject to the risk that those currencies will decline in value relative to the base currency of the Fund, or, in the case of hedging positions, that the Fund’s base currency will decline in value relative to the currency being hedged. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the United States or abroad.

Inflation-Indexed Bonds. Certain Funds may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the Statement of Operations, even though investors do not receive their principal until maturity.

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

Payment In-Kind Securities. Certain Funds may invest in payment in-kind securities (“PIKs”). PIKs give the issuer the option at each interest payment date of making interest payments in either cash or additional debt securities. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a dirty price) and require a pro-rata adjustment from the unrealized appreciation or depreciation on investments to interest receivable on the Statement of Assets and Liabilities.

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

Loans. Certain Funds may invest in loans. Loans are generally made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities. Loans are generally readily marketable, but some loans may be illiquid or may be subject to some restrictions on resale.

2013 SEMIANNUAL REPORT 189

Certain loans contain provisions that obligate a Fund to fund future commitments at the borrower’s discretion. See Note 10 in the Notes to the Financial Statements for more information regarding commitments.

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

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

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

Estimates. The preparation of financial statements in accordance with U.S. GAAP 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.

Subsequent Events. Management has performed a review for subsequent events through the date this report was issued.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Each Fund’s investments are reported at fair value. Fair value is defined as the price that each Fund would receive upon selling an asset or would pay upon satisfying a liability in an orderly transaction between market participants at the measurement date. Each Fund calculates the Net Asset Value (“NAV”) of its shares as of the close of the NYSE, normally 4:00 P.M. Eastern time, on each day the NYSE is open for trading.

For purposes of calculating the NAV, the portfolio securities and other assets are valued on each business day using pricing and valuation methods as adopted by the Board. Where market quotes are readily available, fair value is generally determined on the basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.

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

Investments in Ivy Money Market Fund and short-term securities with maturities of 60 days or less are valued on the basis of amortized cost (which approximates value), whereby a portfolio security is valued at its cost initially, and thereafter valued to reflect a constant amortization to maturity of any discount or premium.

Because many foreign markets close before the NYSE, events may occur between the close of the foreign market and the close of the NYSE that could have a material impact on the valuation of foreign securities. Waddell & Reed Services Company (“WRSCO”), pursuant to procedures adopted by the Board, evaluates the impact of these events and may adjust the valuation of foreign securities to reflect the fair value as of the close of the NYSE. In addition, all securities for which values are not readily available or are deemed unreliable are appraised at fair value as determined in good faith under the supervision of the Board.

Where market quotes are not readily available, portfolio securities or assets are valued at fair value, as determined in good faith by the Board or WRSCO pursuant to instructions from the Board.

Market quotes are considered not readily available in circumstances where there is an absence of current or reliable market-based data (e.g., trade information or broker quotes), including where events occur after the close of the relevant market, but prior to the NYSE close, that materially affect the values of a Fund’s securities or assets. In addition, market quotes are considered not readily available when, due to extraordinary circumstances, the exchanges or markets on which the securities trade do not open for trading for the entire day and no other market prices are available.

The Board has delegated to WRSCO, the responsibility for monitoring significant events that may materially affect the values of a Fund’s securities or assets and for determining whether the value of the applicable securities or assets should be re-evaluated in light of such significant events. WRSCO has established a Valuation Committee to administer and oversee the valuation process, including the use of third party pricing vendors.

The Board has adopted methods for valuing securities and other assets in circumstances where market quotes are not readily available. For instances in which daily market quotes are not readily available, investments may be valued, pursuant to guidelines established by the Board, with reference to other securities or indices. In the event that the security or asset cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or asset will be determined in good faith by the Valuation Committee and appropriate consultation with the Board.

190 SEMIANNUAL REPORT 2013

When a Fund uses these fair valuation methods applied by WRSCO that use significant unobservable inputs to determine its NAV, securities will be priced by a method that the Board or persons acting at their direction believe accurately reflects fair value and are categorized as Level 3 of the fair value hierarchy. These methods may require subjective determinations about the value of a security. The prices used by a Fund may differ from the value that will ultimately be realized at the time the securities were sold.

WRSCO is responsible for monitoring the implementation of the pricing and valuation policies through a series of activities to provide reasonable comfort of the accuracy of prices including: 1) periodic vendor due diligence meetings to review methodologies, new developments, and process at vendors, 2) daily and monthly multi-source pricing comparisons reviewed and submitted to the Valuation Committee, and 3) daily review of unpriced, stale, and variance reports with exceptions reviewed by management and the Valuation Committee.

Accounting standards establish a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the factors that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

An individual investment’s fair value measurement is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized as follows:

Level 1 – Observable input such as quoted prices, available in active markets, for identical assets or liabilities.

Level 2 – Significant other observable inputs, which may include, but are not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market corroborated inputs.

Level 3 – Significant unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include assumptions made by the Board or persons acting at their direction that are used in determining the fair value of investments.

A description of the valuation techniques applied to the Funds’ major classes of assets and liabilities measured at fair value on a recurring basis follows:

Asset-Backed Securities and Mortgage-Backed Securities. The fair value of asset-backed securities and mortgage-backed securities are estimated using recently executed transactions and based on models that consider the estimated cash flows of each debt tranche of the issuer, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche including, but not limited to, the prepayment speed assumptions and attributes of the collateral. To the extent the inputs are observable and timely, the values would be categorized in Level 2 of the fair value hierarchy, and otherwise they would be categorized as Level 3.

Loans. Loans are valued using a price or composite price from one or more brokers or dealers as obtained from an independent pricing service. The fair value of loans is estimated using recently executed transactions, market price quotations, credit/market events, and cross-asset pricing. Inputs are generally observable market inputs obtained from independent sources. Loans are generally categorized in Level 2 of the fair value hierarchy, unless key inputs are unobservable in which case they would be categorized as Level 3.

Bullion. The fair value of bullion is at the last settlement price at the end of each day on the board of trade or exchange upon which they are traded and are categorized in Level 1 of the fair value hierarchy.

Corporate Bonds. The fair value of corporate bonds is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3 of the fair value hierarchy.

Derivative Instruments. Forward foreign currency contracts are valued based upon the closing prices of the forward currency rates determined at the close of the NYSE. Swaps are valued by an independent pricing service unless the price is unavailable, in which case they are valued at the price provided by a dealer in that security. Futures contracts traded on an exchange are generally valued at the settlement price. Listed options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service unless the price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. Over-the-counter (“OTC”) options are ordinarily valued at the mean of the last bid and ask price provided by an independent pricing service for a comparable listed option unless such a price is unavailable, in which case they are valued at a quotation obtained from a broker-dealer. If no comparable listed option exists from which to obtain a price from an independent pricing service and a quotation cannot be obtained from a broker-dealer, the OTC option will be valued using a model reasonably designed to provide a current market price.

2013 SEMIANNUAL REPORT 191

Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward foreign currency contracts, swap agreements, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case with interest rate swap and option contracts. A substantial majority of OTC derivative products valued using pricing models fall into this category and are categorized within Level 2 of the fair value hierarchy.

Equity Securities. Equity securities traded on U.S. or foreign securities exchanges or included in a national market system are valued at the official closing price at the close of each business day unless otherwise stated below. OTC equity securities and listed securities for which no price is readily available are valued at the average of the last bid and asked prices.

Mutual funds, including investment funds, typically are valued at the NAV reported as of the valuation date.

Securities that are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded and to the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Foreign securities, for which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intra-day trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.

Preferred stock, repurchase agreements, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2.

Municipal Bonds. Municipal bonds are fair valued based on pricing models that take into account, among other factors, information received from market makers and broker-dealers, current trades, bid-wants lists, offerings, market movements, the callability of the bond, state of issuance, benchmark yield curves, and bond insurance. To the extent that these inputs are observable and timely, the fair values of municipal bonds would be categorized as Level 2; otherwise the fair values would be categorized as Level 3.

Restricted Securities. Restricted securities that are deemed to be both Rule 144A securities and illiquid, as well as restricted securities held in non-public entities are included in Level 3 of the fair value hierarchy because they trade infrequently, and, therefore, the inputs are unobservable. Restricted securities that are valued at a discount to similar publicly traded securities may be categorized as Level 2 of the fair value hierarchy to the extent that the discount is considered to be insignificant to the fair value measurement in its entirety; otherwise they may be categorized as Level 3.

U.S. Government and Agency Securities. U.S. government and agency securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, quoted market prices, and reference data. Accordingly, U.S. government and agency securities are normally categorized in Level 1 or 2 of the fair value hierarchy depending on the liquidity and transparency of the market.

Transfers from Level 2 to Level 3 occurred generally due to the lack of observable market data due to decreased market activity or information for these securities. Transfers from Level 3 to Level 2 occurred generally due to the increased availability of observable market data due to increased market activity or information. Transfers between levels represent the values as of the beginning of the reporting period.

For fair valuations using unobservable inputs, U.S. GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The beginning of period timing recognition is used for the transfers between Levels of the Funds’ assets and liabilities. In accordance with the requirements of U.S. GAAP, a fair value hierarchy and Level 3 reconciliation, if any, have been included in the Notes to the Schedule of Investments for each respective Fund.

Net realized gain (loss) and net unrealized appreciation (depreciation), shown on the reconciliation of Level 3 investments if applicable, are included on the Statement of Operations in net realized gain (loss) on investments in unaffiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities, respectively. Additionally, the net change in unrealized appreciation for all Level 3 investments still held as of period ended September 30, 2013, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities.

The Funds may own different types of assets that are classified as Level 2 or Level 3. Assets classified as Level 2 can have a variety of observable inputs, including, but not limited to, benchmark yields, reported trades, broker quotes, benchmark securities, and bid/offer quotations. These observable inputs are collected and utilized, primarily by an independent pricing service, in different evaluated pricing approaches depending upon the specific asset to determine a value.

192 SEMIANNUAL REPORT 2013

4. DERIVATIVE INSTRUMENTS ($ amounts in thousands unless indicated otherwise)

The following disclosures contain information on why and how the Funds use derivative instruments, the associated risks of investing in derivative instruments, and how derivative instruments affect the Funds’ financial positions and results of operations when presented by primary underlying risk exposure.

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

Risks to a Fund related to the use of such contracts include both market and credit risk. Market risk is the risk that the value of the forward contract will depreciate due to unfavorable changes in the exchange rates. Credit risk arises from the possibility that the counterparty will default. If the counterparty defaults, a Fund’s maximum loss will consist of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Futures Contracts. Certain Funds may engage in buying and selling futures contracts. Upon entering into a futures contract, the Fund is required to deposit, in a segregated account, an amount equal to a varying specified percentage of the contract amount. This amount is known as the initial margin. Subsequent payments (variation margins) are made or received by the Fund each day, dependent on the daily fluctuations in the value of the underlying debt security or index.

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

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

Option Contracts. Options purchased by a Fund are accounted for in the same manner as marketable portfolio securities. The cost of portfolio securities acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from securities sold through the exercise of put options are decreased by the premium paid to purchase the put.

When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded as a liability. The amount of the liability is subsequently adjusted to reflect the current value of the option written. 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 securities purchased by a Fund is reduced by the amount of the premium received.

Investments in options, whether purchased or written, involve certain risks. Writing put options and purchasing call options may increase a Fund’s exposure to the underlying security (or basket of securities). With written options, there may be times when a Fund will be required to purchase or sell securities to meet its obligation under the option contract where the required action is not beneficial to the Fund, due to unfavorable movement of the market price of the underlying security (or basket of securities). Additionally, to the extent a Fund enters into OTC option transactions with counterparties, the Fund will be exposed to the risk that counterparties to these OTC transactions will be unable to meet their obligations under the terms of the transaction.

Swap Agreements. Certain Funds may invest in swap agreements.

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.

The creditworthiness of the counterparty 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. The maximum loss a Fund may incur consists of the aggregate unrealized gain on appreciated contracts that is not collateralized.

Collateral and rights of offset. A Fund may mitigate credit risk with respect to OTC derivative counterparties through credit support annexes (“CSA”) included with an International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreement which is the standard contract governing most derivative transactions between the Fund and each of its counterparties. The CSA allows the Fund and its counterparty to offset certain derivative financial instruments’ payables and/or receivables against each other and/or with collateral, which is generally held by the Fund’s custodian.

2013 SEMIANNUAL REPORT 193

The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts specified in the CSA. To the extent amounts due to the Fund from its counterparties are not fully collateralized contractually or otherwise, the Fund bears the risk of loss from counterparty non-performance. See Note 2 “Segregation and Collateralization” for additional information with respect to collateral practices.

Offsetting of Assets and Liabilities. Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2011-11, Disclosures about Offsetting Assets and Liabilities, requires an entity that has financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position.

The following tables present the offsetting of assets and liabilities as of September 30, 2013:

Assets

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Assets		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Assets Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Received		Cash Collateral Received			Net Amount
Cundill Global Value
Unrealized appreciation on forward foreign currency contracts	$	78	$	—	$	78	$	(12	)	$	—	$	—		$	66
Global Equity Income
Unrealized appreciation on forward foreign currency contracts	$	128	$	—	$	128	$	(99	)	$	—	$	—		$	29
Global Income Allocation
Unrealized appreciation on forward foreign currency contracts	$	128	$	—	$	128	$	(128	)	$	—	$	—		$	—
High Income
Investment securities sold receivable(1)	$	1,577	$	—	$	1,577	$	(288	)	$	—	$	(630	)	$	659
Unrealized appreciation on forward foreign currency contracts	$	929	$	—	$	929	$	(342	)	$	—	$	—		$	587
Total	$	2,506	$	—	$	2,506	$	(630	)	$	—	$	(630	)	$	1,246
International Core Equity
Unrealized appreciation on forward foreign currency contracts	$	68	$	—	$	68	$	(68	)	$	—	$	—		$	—

* Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities.

(1) Amounts represent forward currency contracts that have an offset to an open and close contract, but have not settled.

Liabilities

								Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets and Liabilities			Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged		Cash Collateral Pledged			Net Amount
Cundill Global Value
Unrealized depreciation on forward foreign currency contracts	$	616	$	(40	)	$	576	$	(12	)	$	—	$	—		$	564
Global Bond
Unrealized depreciation on forward foreign currency contracts	$	39	$	—		$	39	$	—		$	—	$	—		$	39
Global Equity Income
Unrealized depreciation on forward foreign currency contracts	$	252	$	—		$	252	$	(99	)	$	—	$	(10	)	$	143
Global Income Allocation
Unrealized depreciation on forward foreign currency contracts	$	403	$	—		$	403	$	—		$	—	$	—		$	403
High Income
Investment securities purchased payable(1)	$	288	$	—		$	288	$	(288	)	$	—	$	—		$	—
Unrealized depreciation on forward foreign currency contracts	$	6,448	$	—		$	6,448	$	(342	)	$	—	$	(4,730	)	$	1,376
Total	$	6,736	$	—		$	6,736	$	(630	)	$	—	$	(4,730	)	$	1,376

194 SEMIANNUAL REPORT 2013

							Gross Amounts Not Offset on the Statement of Assets and Liabilities
Fund	Gross Amounts of Recognized Liabilities		Gross Amounts Offset on the Statement of Assets and Liabilities		Net Amounts of Liabilities Presented on the Statement of Assets and Liabilities		Financial Instruments and Derivatives Available for Offset			Non-Cash Collateral Pledged			Cash Collateral Pledged			Net Amount
International Core Equity
Written options at value	$	57	$	—	$	57	$	—		$	—		$	(57	)	$	—
Unrealized depreciation on forward foreign currency contracts		885		—		885		(68	)		—			—			817
Total	$	942	$	—	$	942	$	(68	)	$	—		$	(57	)	$	817
International Growth
Unrealized depreciation on forward foreign currency contracts	$	228	$	—	$	228	$	—		$	—		$	—		$	228
Pacific Opportunities
Written options at value	$	2,738	$	—	$	2,738	$	—		$	(2,738	)	$	—		$	—
Unrealized depreciation on swap agreements		471		—		471		—			—			(320	)		151
Total	$	3,209	$	—	$	3,209	$	—		$	(2,738	)	$	(320	)	$	151
Value
Written options at value	$	55	$	—	$	55	$	—		$	—		$	—		$	55

(1) Amounts represent forward currency contracts that have an offset to an open and close contract, but have not settled.

Additional Disclosure Related to Derivative Instruments

Fair values of derivative instruments as of period ended September 30, 2013:

		Assets			Liabilities
Fund	Type of Risk Exposure	Statement of Assets & Liabilities Location	Value		Statement of Assets & Liabilities Location	Value
Ivy Bond Fund	Interest rate	Unrealized appreciation on futures contracts*		$141	Unrealized depreciation on futures contracts*		$402
Ivy Cundill Global Value Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		78	Unrealized depreciation on forward foreign currency contracts		576
Ivy Global Bond Fund	Foreign currency				Unrealized depreciation on forward foreign currency contracts		39
Ivy Global Equity Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		128	Unrealized depreciation on forward foreign currency contracts		252
Ivy Global Income Allocation Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		128	Unrealized depreciation on forward foreign currency contracts		403
Ivy High Income Fund	Foreign currency	Unrealized appreciation on forward foreign currency contracts		929	Unrealized depreciation on forward foreign currency contracts		6,448
Ivy International Core Equity Fund	Equity				Written options at value		57
	Foreign currency	Unrealized appreciation on forward foreign currency contracts		68	Unrealized depreciation on forward foreign currency contracts		885
Ivy International Growth Fund	Foreign currency				Unrealized depreciation on forward foreign currency contracts		228
Ivy Limited-Term Bond Fund	Interest rate				Unrealized depreciation on futures contracts*		1,820
Ivy Mid Cap Growth Fund	Equity	Investments in unaffiliated securities at value**		8,095
Ivy Pacific Opportunities Fund	Equity	Investments in unaffiliated securities at value**		122	Unrealized depreciation on swap agreements		471
	Equity				Written options at value		6,789
Ivy Value Fund	Equity				Written options at value		91

* The value presented includes cumulative gain (loss) on open futures contracts; however, the value reflected on the accompanying Statement of Assets and Liabilities is only the unsettled variation margin receivable (payable) as of period ended September 30, 2013.

** Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments.

2013 SEMIANNUAL REPORT 195

Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2013:

		Net realized gain (loss) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*			Swap agreements			Futures contracts		Written options			Forward foreign currency contracts			Total
Ivy Bond Fund	Interest rate		$—			$—			$1,136		$—			$—			$1,136
Ivy Cundill Global Value Fund	Foreign currency		—			—			—		—			3,872			3,872
Ivy European Opportunities Fund	Equity		(902	)		—			—		—			—			(902	)
	Foreign currency		—			—			—		—			(348	)		(348	)
Ivy Global Bond Fund	Foreign currency		—			—			—		—			(143	)		(143	)
Ivy Global Equity Income Fund	Foreign currency		—			—			—		—			(110	)		(110	)
Ivy Global Income Allocation Fund	Foreign currency		—			—			—		—			(4,678	)		(4,678	)
Ivy High Income Fund	Credit		—			7			—		—			—			7
	Foreign currency		—			—			—		—			(19,463	)		(19,463	)
Ivy International Core Equity Fund	Equity		—			—			—		229			—			229
	Foreign currency		—			—			—		—			(440	)		(440	)
Ivy International Growth Fund	Foreign currency		—			—			—		—			(2,072	)		(2,072	)
Ivy Limited-Term Bond Fund	Interest rate		—			—			741		—			—			741
Ivy Mid Cap Growth Fund	Equity		(4,924	)		—			—		4,035			—			(889	)
Ivy Pacific Opportunities Fund	Equity		996			(591	)		—		(66	)		—			339
	Foreign currency		—			—			—		—			(2,948	)		(2,948	)
Ivy Small Cap Growth Fund	Equity		—			4,971			—		—			—			4,971
Ivy Value Fund	Equity		—			—			—		(331	)		—			(331	)

* Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments.

Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 2013:

		Net change in unrealized appreciation (depreciation) on:
Fund	Type of Risk Exposure	Investments in unaffiliated securities*		Swap agreements			Futures contracts			Written options			Forward foreign currency contracts				Total
Ivy Bond Fund	Interest rate		$—		$—			$(157	)		$—			$—				$(157	)
Ivy Cundill Global Value Fund	Foreign currency		—		—			—			—			(2,939	)			(2,939	)
Ivy European Opportunities Fund	Foreign currency		—		—			—			—			72				72
Ivy Global Bond Fund	Foreign currency		—		—			—			—			(155	)			(155	)
Ivy Global Equity Income Fund	Foreign currency		—		—			—			—			(64	)			(64	)
Ivy Global Income Allocation Fund	Foreign currency		—		—			—			—			(275	)			(275	)
Ivy High Income Fund	Foreign currency		—		—			—			—			(12,910	)	��		(12,910	)
Ivy International Core Equity Fund	Equity		—		—			—			128			—				128
	Foreign currency		—		—			—			—			(817	)			(817	)
Ivy International Growth Fund	Foreign currency		—		—			—			—			(103	)			(103	)
Ivy Limited-Term Bond Fund	Interest rate		—		—			(1,820	)		—			—				(1,820	)
Ivy Mid Cap Growth Fund	Equity		2,861		—			—			(1,975	)		—				886
Ivy Pacific Opportunities Fund	Equity		4		(388	)		—			(4,644	)		—				(5,028	)
Ivy Small Cap Growth Fund	Equity		—		(557	)		—			—			—				(557	)
Ivy Value Fund	Equity		—		—			—			137			—				137

* Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments.

196 SEMIANNUAL REPORT 2013

During the period ended September 30, 2013, the average derivative volume was as follows:

Fund	Long forward contracts(1)		Short forward contracts(1)		Long futures contracts(1)		Short futures contracts(1)		Swap agreements(2)		Purchased options(1)		Written options(1)
Ivy Bond Fund	$	—	$	—	$	14,651	$	31,086	$	—	$	—	$	—
Ivy Cundill Global Value Fund		27,402		26,634		—		—		—		—		—
Ivy European Opportunities Fund		2,138		2,149		—		—		—		80		—
Ivy Global Bond Fund		4,394		4,318		—		—		—		—		—
Ivy Global Equity Income Fund		23,199		23,114		—		—		—		—		—
Ivy Global Income Allocation Fund		77,267		76,919		—		—		—		—		—
Ivy High Income Fund		544,883		543,713		—		—		—		—		—
Ivy International Core Equity Fund		120,925		120,301		—		—		—		—		21
Ivy International Growth Fund		64,293		64,219		—		—		—		—		—
Ivy Limited-Term Bond Fund		—		—		—		17,054		—		—		—
Ivy Mid Cap Growth Fund		—		—		—		—		—		1,733		1,538
Ivy Pacific Opportunities Fund		14,286		14,616		—		—		3,435		302		2,429
Ivy Small Cap Growth Fund		—		—		—		—		105		—		—
Ivy Value Fund		—		—		—		—		—		—		179

(1) Average value outstanding during the period.

(2) Average notional amount outstanding during the period.

Objectives and Strategies

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

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

Ivy European Opportunities Fund. The Fund’s objectives in using derivatives during the period included hedging market risk on equity securities and managing the exposure to various foreign currencies. To achieve the objective of hedging market risk, the Fund utilized purchased option contracts on individual equity securities and foreign equity indices. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency.

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

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

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

Ivy High Income Fund. The Fund’s objective in using derivatives during the period was to hedge the exposure to foreign currencies of securities held in the Fund. To achieve this objective, the Fund utilized forward contracts.

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

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

Ivy Limited Term-Bond Fund. The Fund’s objective in using derivatives during the period was to adjust the overall duration of the portfolio. To achieve this objective, the Fund primarily utilized Treasury futures contracts of varying lengths to either shorten or lengthen the duration of the Fund.

Ivy Mid Cap Growth Fund. The Fund’s objectives in using derivatives during the period included gaining exposure to certain sectors, hedging certain event risks on positions held by the Fund and hedging market risk on equity securities. To achieve these objectives, the Fund utilized futures on domestic indices and options, both written and purchased, on either an index or on individual or baskets of equity securities.

Ivy Pacific Opportunities Fund. The Fund’s objectives in using derivatives during the period included managing the exposure to various foreign currencies, hedging certain event risks on positions held by the Fund and gaining exposure to certain individual securities that are not available for direct purchase. To manage foreign currency exposure, the Fund utilized forward contracts to either increase or decrease exposure to a given currency. To hedge event risk, the Fund utilized options, both written and purchased, on individual equity securities. To gain exposure to certain individual securities, the Fund utilized total return swaps.

2013 SEMIANNUAL REPORT 197

Ivy Small Cap Growth Fund. The Fund’s objectives in using derivatives during the period included hedging market risk on equity securities and increasing exposure to various equity sectors and markets. To achieve these objectives, the Fund utilized total return swaps on individual equity securities owned by the Fund.

Ivy Value Fund. The Fund’s objectives in using derivatives during the period included generating additional income from written option premiums and gaining exposure to, or facilitate trading in, certain securities. To achieve these objectives, the Fund utilized written options on individual equity securities.

5. WRITTEN OPTION ACTIVITY ($ amounts in thousands)

Transactions in written options were as follows:

Fund	Outstanding at 3-31-13		Options written		Options closed			Options exercised			Options expired			Outstanding at 9-30-13
Ivy International Core Equity
Number of Contracts		N/A		1,091,446		—			—			(566,555	)		524,891
Premium Received		N/A	$	413	$	—		$	—		$	(229	)	$	184
Ivy Mid Cap Growth Fund
Number of Contracts		23,883		54,196		(17,213	)		(23,211	)		(37,655	)		N/A
Premium Received	$	4,359	$	6,312	$	(3,773	)	$	(2,374	)	$	(4,524	)		N/A
Ivy Pacific Opportunities Fund
Number of Contracts		7,375		25,652		(14,630	)		—			(7,005	)		11,392
Premium Received	$	776	$	2,911	$	(902	)	$	—		$	(595	)	$	2,190
Ivy Value Fund
Number of Contracts		765		6,135		(1,710	)		(1,053	)		(3,213	)		924
Premium Received	$	495	$	740	$	(750	)	$	(88	)	$	(273	)	$	124

6. INVESTMENT MANAGEMENT AND PAYMENTS TO AFFILIATED PERSONS ($ amounts in thousands unless indicated otherwise)

Management Fees. IICO, a wholly owned subsidiary of Waddell & Reed Financial, Inc. (“WDR”), serves as each Fund’s investment manager. The management fee is accrued daily by each Fund at the following annual rates as a percentage of average daily net assets:

Fund (M - Millions)	$0 to $250M			$250 to $500M			$500 to $1,000M			$1,000 to $1,500M			$1,500 to $2,000M			$2,000 to $3,000M			$3,000 to $5,000M			$5,000 to $6,000M			Over $6,000M
Ivy Bond Fund		0.525	%		0.525	%		0.500	%		0.450	%		0.400	%		0.400	%		0.400	%		0.400	%		0.400	%
Ivy Core Equity Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.525			0.500
Ivy Cundill Global Value Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.760			0.760
Ivy Dividend Opportunities Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.550			0.550
Ivy European Opportunities Fund		0.900			0.850			0.750			0.750			0.750			0.750			0.750			0.750			0.750
Ivy Global Bond Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.500			0.500
Ivy Global Equity Income Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.550			0.550
Ivy Global Income Allocation Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.550			0.550
Ivy High Income Fund		0.625			0.625			0.600			0.550			0.500			0.500			0.500			0.500			0.500
Ivy International Core Equity Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.700			0.700
Ivy International Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.700			0.700			0.700
Ivy Large Cap Growth Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.550			0.550
Ivy Limited-Term Bond Fund		0.500			0.500			0.450			0.400			0.350			0.350			0.350			0.350			0.350
Ivy Managed European/Pacific Fund		0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050
Ivy Managed International Opportunities Fund		0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050			0.050
Ivy Micro Cap Growth Fund		0.950			0.950			0.950			0.930			0.930			0.900			0.860			0.860			0.860
Ivy Mid Cap Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.760			0.760
Ivy Money Market Fund		0.400			0.400			0.400			0.400			0.400			0.400			0.400			0.400			0.400
Ivy Municipal Bond Fund		0.525			0.525			0.500			0.450			0.400			0.400			0.400			0.400			0.400
Ivy Municipal High Income Fund		0.525			0.525			0.500			0.450			0.400			0.400			0.400			0.400			0.400
Ivy Pacific Opportunities Fund		1.000			1.000			0.850			0.830			0.830			0.800			0.760			0.760			0.760
Ivy Small Cap Growth Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.760			0.760
Ivy Small Cap Value Fund		0.850			0.850			0.850			0.830			0.830			0.800			0.760			0.760			0.760
Ivy Tax-Managed Equity Fund		0.650			0.650			0.650			0.600			0.600			0.550			0.500			0.500			0.500
Ivy Value Fund		0.700			0.700			0.700			0.650			0.650			0.600			0.550			0.550			0.550

For the period from May 18, 2009 to September 30, 2016, IICO voluntarily agreed to reduce the management fee paid to 0.485%, on an annual basis, of net assets for any day that Ivy Municipal High Income Fund’s net assets are below $500 million.

For Funds managed solely by IICO, 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. See Expense Reimbursements and/or Waivers below for amounts waived during the period ended September 30, 2013.

198 SEMIANNUAL REPORT 2013

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

Under an agreement between IICO and Mackenzie Financial Corporation (“Mackenzie”), Mackenzie serves as subadviser to Ivy Cundill Global Value Fund. Under an agreement between IICO and Wall Street Associates, Wall Street Associates serves as subadviser to Ivy Micro Cap Growth Fund. Under an agreement between IICO and Advantus Capital Management, Inc. (“Advantus”), Advantus serves as subadviser to Ivy Bond Fund. Each subadviser makes investment decisions in accordance with the Fund’s investment objectives, policies and restrictions under the supervision of IICO and the oversight of the Board. IICO pays all costs applicable of the subadvisers.

Accounting Services Fees. The Trust has an Accounting Services Agreement with WRSCO, doing business as WI Services Company (“WISC”), an indirect subsidiary of WDR. Under the agreement, WISC acts as the agent in providing bookkeeping and accounting services and assistance to the Trust, including maintenance of Fund records, pricing of Fund shares and preparation of certain shareholder reports. For these services, each Fund, other than Ivy Managed European/Pacific Fund and Ivy Managed International Opportunities Fund (the “Ivy Managed Funds”), pays WISC a monthly fee of one-twelfth of the annual fee based on the average net asset levels shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.00	$	11.50	$	23.10	$	35.50	$	48.40	$	63.20	$	82.50	$	96.30	$	121.60	$	148.50

In addition, for each class of shares in excess of one, each Fund pays WISC a monthly per-class fee equal to 2.5% of the monthly accounting services base fee.

Under the Accounting and Administrative Services Agreement for the Ivy Managed Funds, each Fund pays WISC a monthly fee of one-twelfth of the annual fee shown in the following table:

(M - Millions)	$0 to $10M		$10 to $25M		$25 to $50M		$50 to $100M		$100 to $200M		$200 to $350M		$350 to $550M		$550 to $750M		$750 to $1,000M		Over $1,000M
Annual Fee Rate	$	0.000	$	5.748	$	11.550	$	17.748	$	24.198	$	31.602	$	41.250	$	48.150	$	60.798	$	74.250

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

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

Shareholder Servicing. General. Under the Shareholder Servicing Agreement between the Trust and WISC, 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, each Fund pays a monthly fee that ranges from $1.5042 to $1.6958 per account; however, WISC has agreed to reduce that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, InvestEd Portfolios and Ivy Funds) reaches certain levels. 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. Effective June 6, 2011 for Class R shares, each Fund pays a monthly fee equal to one-twelfth of 0.25 of 1% of the average daily net assets of the class for the preceding month. Prior to June 6, 2011 the fee was 0.20 of 1%. For Class I and Class Y shares, each Fund pays a monthly fee equal to one-twelfth of 0.15 of 1% of the average daily net assets of the class for the preceding month. Each Fund also reimburses WISC for certain out-of-pocket costs for all classes.

Networked accounts. For certain networked accounts (that is, those accounts whose Fund shares are purchased through certain financial intermediaries), WISC has agreed to reduce its per account fees charged to the Funds to $0.50 per month per shareholder account. Additional fees may be paid by the Funds to those intermediaries. If the aggregate annual rate of the WISC transfer agent fee and the costs charged by the financial services companies exceeds $18.00 per account for a Fund, WISC will reimburse the Fund the amount in excess of $18.00.

Broker accounts. Certain broker-dealers that maintain shareholder accounts with each Fund through an omnibus account provide transfer agent and other shareholder-related services that would otherwise be provided by WISC if the individual accounts that comprise the omnibus account were opened by their beneficial owners directly. Each Fund may pay such broker-dealers a per account fee for each open account within the omnibus account, or a fixed rate fee, based on the average daily net asset value of the omnibus account (or a combination thereof).

Distribution and Service Plan. Class A and Class E Shares. Under a Distribution and Service Plan adopted by the Trust pursuant to Rule 12b–1 under the 1940 Act (the “Distribution and Service Plan”), each Fund, other than Ivy Money Market Fund, may pay a distribution and/or service fee to Ivy Funds Distributors, Inc. (“IFDI”) for Class A and Class E shares 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 and Class E shares and/or provision of personal services to Fund shareholders and/or maintenance of shareholder accounts of that class.

Class B and Class C Shares. Under the Distribution and Service Plan, each Fund may pay IFDI a service fee not to exceed 0.25% and a distribution fee not to exceed 0.75% of the Fund’s average annual net assets for Class B and Class C shares 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.

2013 SEMIANNUAL REPORT 199

Class R Shares. Under the Distribution and Service 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 Fund, providing personal services to Class R shareholders and/or maintaining Class R shareholder accounts.

Class Y Shares. Under the Distribution and Service 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.

Sales Charges. As principal underwriter for the Trust’s shares, IFDI receives sales commissions (which are not an expense of the Trust) for sales of Class A and Class E shares. A 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 period ended September 30, 2013, IFDI received the following amounts in sales commissions and CDSCs:

	Gross Sales Commissions		CDSC											Commissions Paid(1)
			Class A			Class B			Class C			Class E
Ivy Bond Fund	$	118	$	4		$	13		$	1		$	—	$	121
Ivy Core Equity Fund		212		—	*		6			4			—		295
Ivy Cundill Global Value Fund		86		—	*		1			—	*		—		96
Ivy Dividend Opportunities Fund		102		2			9			1			—		100
Ivy European Opportunities Fund		39		—	*		1			—	*		—		37
Ivy Global Bond Fund		68		1			8			6			—		108
Ivy Global Equity Income Fund		77		—	*		—	*		—	*		—		77
Ivy Global Income Allocation Fund		202		1			2			3			—		193
Ivy High Income Fund		1,360		74			150			168			—		3,789
Ivy International Core Equity Fund		241		5			11			3			—		268
Ivy International Growth Fund		55		—	*		2			—	*		—		57
Ivy Large Cap Growth Fund		171		2			4			2			—		178
Ivy Limited-Term Bond Fund		618		43			37			24			—		675
Ivy Managed European/Pacific Fund		24		—			—	*		—	*		—		22
Ivy Managed International Opportunities Fund		55		—	*		1			—	*		—		48
Ivy Micro Cap Growth Fund		104		—	*		2			—	*		—		115
Ivy Mid Cap Growth Fund		313		2			18			11			—		623
Ivy Money Market Fund		—		14			13			6			—		—
Ivy Municipal Bond Fund		35		2			10			4			—		52
Ivy Municipal High Income Fund		104		21			34			61			—		273
Ivy Pacific Opportunities Fund		170		—	*		4			1			—		176
Ivy Small Cap Growth Fund		155		2			5			1			—		235
Ivy Small Cap Value Fund		83		—	*		1			2			—		92
Ivy Tax-Managed Equity Fund		6		—	*		—	*		—	*		—		8
Ivy Value Fund		50		—	*		2			1			—		64

* Not shown due to rounding.

(1) IFDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers.

Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2013 were as follows:

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement		Expense Reduced
Ivy Bond Fund	Class E	Contractual	1-31-2011	7-31-2014	1.14%	$	5	12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-31-2011	7-31-2013	0.84%	$	—	Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A

200 SEMIANNUAL REPORT 2013

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Reduced
Ivy Core Equity Fund	Class A	Contractual	1-11-2013	7-31-2014	1.15%	$	118		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	1-11-2013	7-31-2014	2.40%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	1-11-2013	7-31-2014	2.13%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2014	1.35%	$	5		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	1-11-2013	7-31-2014	0.84%	$	31		Shareholder Servicing
	Class Y	Contractual	1-11-2013	7-31-2014	0.84%	$	67		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Cundill Global Value Fund	All Classes	Voluntary	12-3-2012	7-31-2014	N/A	$	190	(3)	Investment Management Fee
	Class A	Contractual	8-1-2012	7-31-2013	1.90%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2014	1.59%	$	2		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		12b-1 Fees and/or Shareholder Servicing
Ivy Dividend Opportunities Fund	Class E	Contractual	8-1-2008	7-31-2014	1.37%	$	6		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy European Opportunities Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Global Bond Fund	Class A	Contractual	6-2-2008	7-31-2014	0.99%	$	219		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-2-2008	7-31-2014	1.74%	$	11		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-2-2008	7-31-2014	1.74%	$	28		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-2-2008	7-31-2014	0.74%	$	43		Shareholder Servicing
	Class Y	Contractual	6-2-2008	7-31-2014	0.99%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A

2013 SEMIANNUAL REPORT 201

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Reduced
Ivy Global Equity Income Fund	All Classes	Voluntary	6-4-2012	7-31-2013	N/A	$	16	(1)	Investment Management Fee
	Class A	Contractual	6-4-2012	7-31-2014	1.30%	$	106		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-4-2012	7-31-2013	2.17%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-4-2012	7-31-2013	1.96%	$	2		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-4-2012	7-31-2014	0.94%	$	9		Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2014	1.19%	$	3		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Global Income Allocation Fund	All Classes	Contractual	6-4-2012	7-31-2013	N/A	$	—		Investment Management Fee
	Class A	Contractual	6-4-2012	7-31-2013	1.35%	$	12		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-4-2012	7-31-2013	2.30%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-4-2012	7-31-2013	2.02%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	6-4-2012	7-31-2014	1.33%	$	5		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-4-2012	7-31-2013	0.91%	$	4		Shareholder Servicing
	Class Y	Contractual	6-4-2012	7-31-2014	1.17%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy High Income Fund	Class E	Contractual	8-1-2008	7-31-2014	1.36%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	75		12b-1 Fees and/or Shareholder Servicing
Ivy International Core Equity Fund	Class E	Contractual	8-1-2008	7-31-2014	1.53%	$	7		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy International Growth Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A

202 SEMIANNUAL REPORT 2013

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement			Expense Reduced
Ivy Large Cap Growth Fund	Class A	Contractual	6-1-2006	7-31-2014	1.15%	$	270		12b-1 Fees and/or Shareholder Servicing
	Class B	Contractual	6-13-2011	7-31-2014	2.15%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class C	Contractual	6-13-2011	7-31-2014	1.95%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class E	Contractual	8-1-2008	7-31-2014	1.15%	$	11		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	6-13-2011	7-31-2014	0.88%	$	6		Shareholder Servicing
	Class Y	Contractual	6-1-2006	7-31-2014	1.06%	$	44		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Limited-Term Bond Fund	Class E	Contractual	8-1-2010	7-31-2014	1.00%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	4		12b-1 Fees and/or Shareholder Servicing
Ivy Managed European/Pacific Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Managed International Opportunities Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Micro Cap Growth Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Mid Cap Growth Fund	Class E	Contractual	8-1-2008	7-31-2014	1.60%	$	4		12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—		N/A
Ivy Money Market Fund	Class A	Voluntary	N/A	N/A	To maintain minimum yield(2)	$	346		12b-1 Fees and/or Shareholder Servicing
	Class B	Voluntary	N/A	N/A	To maintain minimum yield(2)	$	59		12b-1 Fees and/or Shareholder Servicing
	Class C	Voluntary	N/A	N/A	To maintain minimum yield(2)	$	295		12b-1 Fees and/or Shareholder Servicing
	Class E	Voluntary	N/A	N/A	To maintain minimum yield(2)	$	12		12b-1 Fees and/or Shareholder Servicing
Ivy Municipal Bond Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	*	12b-1 Fees and/or Shareholder Servicing
Ivy Municipal High Income Fund	All Classes	Voluntary	N/A	N/A	Reduction of Investment Management Fee	$	100		Investment Management Fee
	Class A	Contractual	5-18-2009	7-31-2013	0.95%	$	—		12b-1 Fees and/or Shareholder Servicing
	Class I	Contractual	5-18-2009	7-31-2013	0.70%	$	—		Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	12		12b-1 Fees and/or Shareholder Servicing

2013 SEMIANNUAL REPORT 203

Fund Name	Share Class Name	Type of Expense Limit	Commencement Date	End Date	Expense Limit	Amount of Expense Waiver/ Reimbursement		Expense Reduced
Ivy Pacific Opportunities Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A
Ivy Small Cap Growth Fund	Class E	Contractual	8-1-2008	7-31-2014	1.56%	$	6	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A
Ivy Small Cap Value Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A
Ivy Tax-Managed Equity Fund	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A
Ivy Value Fund	Class A	Contractual	8-1-2010	7-31-2013	1.55%	$	—	12b-1 Fees and/or Shareholder Servicing
	Class Y	Contractual	8-1-2011	7-31-2014	Not to exceed Class A	$	—	N/A

* Not shown due to rounding.

(1) Due to Class A, Class B, Class C, Class I and/or Class Y contractual expense limits, investment management fees were waived for all share classes.

(2) Minimum yield was 0.02% throughout the period of this report.

(3) The Fund’s management fee is being reduced by 0.14% of average daily net assets.

Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2013 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.

7. AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands)

A summary of the transactions in affiliated companies during the period ended September 30, 2013 follows:

	3-31-13 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)(1)			Distributions Received		9-30-13 Share Balance		9-30-13 Value
Ivy Managed European/Pacific Fund
Ivy European Opportunities Fund, Class I(2)		615	$	109	$	1,485	$	285		$	—		551	$	14,961
Ivy Pacific Opportunities Fund, Class I(2)		4,365		435		7,785		(704	)		—		3,892		55,655
							$	(419	)	$	—			$	70,616
	3-31-13 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)(1)			Distributions Received		9-30-13 Share Balance		9-30-13 Value
Ivy Managed International Opportunities Fund
Ivy European Opportunities Fund, Class I(2)		764	$	196	$	1,041	$	170		$	—		724	$	19,650
Ivy Global Income Allocation Fund, Class I		1,270		595		1,147		64			399		1,229		18,427
Ivy International Core Equity Fund, Class I(2)		2,404		391		2,472		(50	)		—		2,284		41,029
Ivy International Growth Fund, Class I(2)		1,060		391		2,239		183			—		1,006		38,992
Ivy Pacific Opportunities Fund, Class I(2)		5,411		783		5,393		(548	)		—		5,122		73,250
							$	(181	)	$	399			$	191,348
	3-31-13 Share Balance		Purchases at Cost		Sales at Cost		Realized Gain/(Loss)			Distributions Received		9-30-13 Share Balance		9-30-13 Value
Ivy High Income Fund
Maritime Finance Company Ltd.		—	$	35,000	$	—	$	—		$	—		1,750	$	35,087

(1) Included in Realized Gain/Loss, if applicable, are distributions from capital gains from the underlying securities.

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

204 SEMIANNUAL REPORT 2013

8. INVESTMENT SECURITIES TRANSACTIONS ($ amounts in thousands)

The cost of purchases and the proceeds from maturities and sales of investment securities (excluding short-term securities) for the period ended September 30, 2013, were as follows:

	Purchases				Sales
	U.S. Government		Other Issuers		U.S. Government		Other Issuers
Ivy Bond Fund	$	483,204	$	197,614	$	462,653	$	228,577
Ivy Core Equity Fund		—		308,272		—		203,459
Ivy Cundill Global Value Fund		—		67,445		—		56,500
Ivy Dividend Opportunities Fund		—		87,201		—		91,331
Ivy European Opportunities Fund		—		37,215		—		67,312
Ivy Global Bond Fund		2,786		40,832		2,991		21,746
Ivy Global Equity Income Fund		—		118,882		—		53,335
Ivy Global Income Allocation Fund		—		256,380		4,978		168,643
Ivy High Income Fund		—		4,933,766		—		3,759,079
Ivy International Core Equity Fund		—		835,781		—		691,024
Ivy International Growth Fund		—		109,067		—		59,456
Ivy Large Cap Growth Fund		—		446,084		—		559,454
Ivy Limited-Term Bond Fund		2,629		341,077		147,958		277,200
Ivy Managed European/Pacific Fund		—		543		—		8,851
Ivy Managed International Opportunities Fund		—		2,356		—		12,112
Ivy Micro Cap Growth Fund		—		84,591		—		38,115
Ivy Mid Cap Growth Fund		—		902,887		—		568,105
Ivy Money Market Fund		—		—		—		—
Ivy Municipal Bond Fund		—		6,692		—		5,215
Ivy Municipal High Income Fund		—		203,254		—		387,583
Ivy Pacific Opportunities Fund		—		411,869		—		498,378
Ivy Small Cap Growth Fund		—		249,665		—		229,284
Ivy Small Cap Value Fund		—		90,996		—		102,931
Ivy Tax-Managed Equity Fund		—		11,538		—		5,765
Ivy Value Fund		—		83,160		—		55,192

9. CAPITAL SHARE TRANSACTIONS (All amounts in thousands)

The Trust has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class of each Fund. On April 1, 2010, all Advisor Class shares were converted to Class I. Transactions in shares of beneficial interest were as follows:

	Ivy Bond Fund												Ivy Core Equity Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		13,128		$	137,657			21,415		$	228,807			8,438		$	107,336			13,608		$	154,168
Class B		95			992			414			4,419			168			1,888			524			5,305
Class C		334			3,505			1,695			18,116			1,378			15,847			2,328			23,853
Class E		26			274			97			1,040			72			916			135			1,501
Class I		147			1,537			740			7,877			5,461			76,088			7,104			88,478
Class R		24			257			23			250			23			286			22			250
Class Y		63			667			149			1,595			1,745			23,258			1,117			13,453
Shares issued in reinvestment of distributions to shareholders:
Class A		756			7,907			1,533			16,393			—			—			218			2,405
Class B		9			95			24			258			—			—			4			40
Class C		31			320			90			957			—			—			71			710
Class E		6			66			14			146			—			—			3			37
Class I		6			64			21			229			—			—			18			215
Class R		—			—			—			—			—			—			—			—
Class Y		4			46			20			209			—			—			9			106
Shares redeemed:
Class A		(14,097	)		(146,840	)		(12,972	)		(138,540	)		(4,615	)		(59,195	)		(5,529	)		(61,400	)
Class B		(378	)		(3,923	)		(390	)		(4,163	)		(218	)		(2,475	)		(168	)		(1,646	)
Class C		(1,409	)		(14,684	)		(1,944	)		(20,770	)		(839	)		(9,644	)		(1,931	)		(19,343	)
Class E		(76	)		(789	)		(73	)		(785	)		(16	)		(207	)		(31	)		(358	)
Class I		(229	)		(2,384	)		(583	)		(6,229	)		(3,258	)		(45,862	)		(4,924	)		(61,371	)
Class R		(23	)		(252	)		—			—			(23	)		(281	)		—	*		—	*
Class Y		(280	)		(2,970	)		(526	)		(5,612	)		(311	)		(4,239	)		(530	)		(6,178	)
Net increase (decrease)		(1,863	)	$	(18,455	)		9,747		$	104,197			8,005		$	103,716			12,048		$	140,225

2013 SEMIANNUAL REPORT 205

	Ivy Cundill Global Value Fund												Ivy Dividend Opportunities Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		4,250		$	69,024			2,467		$	32,043			2,702		$	48,369			3,949		$	62,525
Class B		37			562			22			264			80			1,407			143			2,234
Class C		77			1,201			62			768			292			5,183			295			4,616
Class E		8			133			9			124			16			297			37			578
Class I		85			1,435			64			835			1,044			19,004			1,079			18,196
Class R		19			296			18			250			16			287			16			250
Class Y		466			7,684			122			1,533			73			1,288			106			1,670
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—			38			690			220			3,443
Class B		—			—			—			—			—			—			5			83
Class C		—			—			—			—			—			—			18			279
Class E		—			—			—			—			1			9			3			43
Class I		—			—			—			—			1			25			5			77
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			—			—			2			33			10			159
Shares redeemed:
Class A		(1,944	)		(31,236	)		(4,091	)		(52,258	)		(2,864	)		(51,344	)		(6,545	)		(104,572	)
Class B		(135	)		(2,019	)		(379	)		(4,481	)		(72	)		(1,267	)		(418	)		(6,597	)
Class C		(117	)		(1,786	)		(544	)		(6,475	)		(206	)		(3,649	)		(779	)		(12,262	)
Class E		(1	)		(24	)		(8	)		(101	)		(14	)		(244	)		(38	)		(611	)
Class I		(29	)		(467	)		(119	)		(1,484	)		(988	)		(17,982	)		(1,103	)		(18,561	)
Class R		(18	)		(293	)		—			—			(16	)		(283	)		—			—
Class Y		(46	)		(763	)		(855	)		(10,944	)		(203	)		(3,644	)		(330	)		(5,183	)
Net increase (decrease)		2,652		$	43,747			(3,232	)	$	(39,926	)		(98	)	$	(1,821	)		(3,327	)	$	(53,633	)

	Ivy European Opportunities Fund												Ivy Global Bond Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		720		$	18,529			1,210		$	27,852			4,956		$	49,930			6,509		$	66,576
Class B		4			89			7			157			148			1,501			192			1,962
Class C		29			712			26			579			608			6,176			1,122			11,487
Class E		—			—			—			—	*		N/A			N/A			N/A			N/A
Class I		31			816			85			1,972			1,871			18,961			3,869			39,644
Class R		10			268			10			250			25			258			25			250
Class Y		14			357			23			537			126			1,270			231			2,371
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			25			599			250			2,513			619			6,297
Class B		—			—			—			—			6			63			17			176
Class C		—			—			—			—			43			435			120			1,221
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		—			—			15			350			82			827			133			1,350
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			1			14			8			80			20			207
Shares redeemed:
Class A		(1,406	)		(35,958	)		(2,022	)		(47,050	)		(4,779	)		(47,972	)		(5,527	)		(56,504	)
Class B		(45	)		(1,082	)		(103	)		(2,237	)		(171	)		(1,712	)		(133	)		(1,356	)
Class C		(41	)		(998	)		(129	)		(2,815	)		(990	)		(9,934	)		(1,012	)		(10,334	)
Class E		—			—			—			—			N/A			N/A			N/A			N/A
Class I		(127	)		(3,286	)		(935	)		(21,884	)		(2,581	)		(25,846	)		(1,046	)		(10,675	)
Class R		(10	)		(266	)		—			—			(25	)		(253	)		—			—
Class Y		(8	)		(194	)		(35	)		(845	)		(155	)		(1,553	)		(424	)		(4,324	)
Net increase (decrease)		(829	)	$	(21,013	)		(1,822	)	$	(42,521	)		(578	)	$	(5,256	)		4,715		$	48,348

* Not shown due to rounding.

206 SEMIANNUAL REPORT 2013

	Ivy Global Equity Income Fund												Ivy Global Income Allocation Fund
	Six months ended 9-30-13						Period from 6-4-12 to 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		6,218		$	75,538			7,010		$	78,790			8,937		$	132,015			8,790		$	125,896
Class B		122			1,495			319			3,508			43			619			100			1,411
Class C		368			4,524			1,264			14,164			372			5,410			754			10,681
Class E		N/A			N/A			N/A			N/A			12			183			33			472
Class I		959			11,822			3,717			41,695			324			4,808			821			11,862
Class R		22			279			22			250			18			271			17			250
Class Y		304			3,743			1,211			13,572			77			1,149			431			5,918
Shares issued in reinvestment of distributions to shareholders:
Class A		165			1,989			67			755			472			6,889			817			11,475
Class B		—	*		4			—			2			6			86			16			219
Class C		1			17			1			9			27			389			54			748
Class E		N/A			N/A			N/A			N/A			3			45			6			89
Class I		3			31			1			14			41			601			107			1,505
Class R		—			—			—			—			—			—			—			—
Class Y		—	*		—	*		—	*		—	*		8			111			17			240
Shares redeemed:
Class A		(1,099	)		(13,432	)		(2,092	)		(23,888	)		(3,545	)		(52,266	)		(4,557	)		(64,768	)
Class B		(106	)		(1,303	)		(203	)		(2,322	)		(65	)		(944	)		(146	)		(2,026	)
Class C		(309	)		(3,800	)		(911	)		(10,568	)		(257	)		(3,744	)		(417	)		(5,854	)
Class E		N/A			N/A			N/A			N/A			(8	)		(118	)		(24	)		(336	)
Class I		(924	)		(11,402	)		(2,725	)		(31,660	)		(447	)		(6,632	)		(1,809	)		(26,111	)
Class R		(22	)		(275	)		—			—			(17	)		(267	)		—			—
Class Y		(304	)		(3,743	)		(907	)		(10,530	)		(30	)		(436	)		(376	)		(5,299	)
Net increase		5,398		$	65,487			6,774		$	73,791			5,971		$	88,169			4,634		$	66,372

	Ivy High Income Fund
	Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		106,922		$	927,500			232,510		$	1,970,312
Class B		2,433			21,144			8,104			68,577
Class C		36,026			312,661			84,595			716,217
Class E		191			1,653			341			2,896
Class I		141,099			1,222,473			202,178			1,718,346
Class R		531			4,592			29			250
Class Y		45,787			396,899			73,780			625,284
Shares issued in reinvestment of distributions to shareholders:
Class A		11,575			100,268			21,440			182,485
Class B		436			3,777			827			7,043
Class C		4,533			39,267			8,492			72,288
Class E		33			285			61			514
Class I		8,190			70,942			13,886			118,254
Class R		3			26			—			—
Class Y		2,912			25,235			5,594			47,602
Shares redeemed:
Class A		(83,960	)		(727,102	)		(123,260	)		(1,046,777	)
Class B		(1,776	)		(15,361	)		(2,246	)		(19,106	)
Class C		(25,799	)		(223,573	)		(23,403	)		(199,271	)
Class E		(76	)		(657	)		(122	)		(1,039	)
Class I		(87,610	)		(759,242	)		(79,144	)		(675,476	)
Class R		(32	)		(284	)		—	*		—	*
Class Y		(41,632	)		(359,834	)		(39,531	)		(334,134	)
Net increase		119,786		$	1,040,669			384,131		$	3,254,265

* Not shown due to rounding.

2013 SEMIANNUAL REPORT 207

	Ivy International Core Equity Fund												Ivy International Growth Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		11,232		$	188,124			16,599		$	245,740			2,164		$	79,332			1,959		$	67,374
Class B		43			656			69			920			36			1,156			57			1,767
Class C		506			7,715			927			12,506			35			1,138			78			2,388
Class E		20			341			34			511			—			—	*		—			—	*
Class I		5,394			91,519			13,045			192,126			61			2,239			748			25,457
Class R		45			782			16			250			8			313			7			250
Class Y		1,133			19,685			3,788			56,429			16			575			234			7,917
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			581			8,830			—			—			36			1,227
Class B		—			—			6			83			—			—			—	*		3
Class C		—			—			55			759			—			—			1			33
Class E		—			—			3			39			—			—			—			—
Class I		—			—			574			8,749			—			—			18			630
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			135			2,062			—			—			4			137
Shares redeemed:
Class A		(6,943	)		(116,437	)		(20,754	)		(306,977	)		(821	)		(30,164	)		(948	)		(32,094	)
Class B		(103	)		(1,568	)		(326	)		(4,432	)		(14	)		(466	)		(32	)		(957	)
Class C		(825	)		(12,494	)		(2,408	)		(32,381	)		(58	)		(1,895	)		(152	)		(4,500	)
Class E		(12	)		(200	)		(29	)		(432	)		—			—			—			—
Class I		(3,389	)		(57,215	)		(10,941	)		(161,681	)		(208	)		(7,731	)		(149	)		(5,057	)
Class R		(16	)		(275	)		—			—			(7	)		(269	)		—			—
Class Y		(2,587	)		(43,393	)		(5,457	)		(80,092	)		(108	)		(3,970	)		(193	)		(6,635	)
Net increase (decrease)		4,498		$	77,240			(4,083	)	$	(56,991	)		1,104		$	40,258			1,668		$	57,940

* Not shown due to rounding.

	Ivy Large Cap Growth Fund												Ivy Limited-Term Bond Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		7,373		$	121,968			14,784		$	216,679			41,904		$	461,764			60,148		$	674,058
Class B		39			558			117			1,473			294			3,224			715			8,013
Class C		259			3,877			759			10,082			2,939			32,557			6,412			71,861
Class E		26			426			73			1,071			50			555			171			1,918
Class I		926			15,628			2,248			33,811			3,553			39,439			8,306			93,114
Class R		151			2,469			850			12,171			23			256			22			250
Class Y		416			6,941			1,948			28,807			460			5,114			6,002			67,268
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			125			1,815			705			7,788			1,806			20,239
Class B		—			—			—			—			4			45			21			234
Class C		—			—			—			—			43			472			194			2,178
Class E		—			—			1			10			2			23			5			61
Class I		—			—			26			388			42			461			144			1,614
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			20			287			23			261			92			1,025
Shares redeemed:
Class A		(12,325	)		(203,782	)		(18,026	)		(266,421	)		(32,230	)		(355,784	)		(47,647	)		(533,902	)
Class B		(87	)		(1,239	)		(436	)		(5,594	)		(573	)		(6,323	)		(852	)		(9,542	)
Class C		(509	)		(7,569	)		(1,645	)		(21,880	)		(7,296	)		(80,306	)		(8,838	)		(99,028	)
Class E		(24	)		(397	)		(67	)		(968	)		(100	)		(1,096	)		(44	)		(492	)
Class I		(2,919	)		(49,467	)		(9,147	)		(139,117	)		(7,471	)		(82,288	)		(7,051	)		(79,011	)
Class R		(236	)		(3,816	)		(674	)		(9,625	)		(22	)		(251	)		—			—
Class Y		(991	)		(16,832	)		(2,025	)		(29,971	)		(2,805	)		(31,005	)		(5,446	)		(60,992	)
Net increase (decrease)		(7,901	)	$	(131,235	)		(11,069	)	$	(166,982	)		(455	)	$	(5,094	)		14,160		$	158,866

208 SEMIANNUAL REPORT 2013

	Ivy Managed European/Pacific Fund												Ivy Managed International Opportunities Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		1,168		$	9,147			2,062		$	15,681			2,953		$	26,917			4,714		$	40,470
Class B		8			60			14			104			8			75			25			205
Class C		13			100			28			206			17			158			97			820
Class E		—			—			—			—			—			—			—			—
Class I		10			79			15			117			9			80			30			271
Class R		32			263			32			250			28			268			28			250
Class Y		2			17			10			76			25			220			22			194
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			48			383			—			—			281			2,496
Class B		—			—			—			—			—			—			2			17
Class C		—			—			—	*		—	*		—			—			5			39
Class E		—			—			—			—			—			—			—			—
Class I		—			—			—	*		—	*		—			—			—	*		4
Class R		—			—			—			—			—			—			—			—
Class Y		—			—			—	*		3			—			—			1			7
Shares redeemed:
Class A		(2,188	)		(17,160	)		(2,796	)		(21,399	)		(3,944	)		(35,969	)		(5,964	)		(51,349	)
Class B		(16	)		(123	)		(44	)		(324	)		(35	)		(314	)		(69	)		(578	)
Class C		(28	)		(213	)		(66	)		(476	)		(51	)		(458	)		(158	)		(1,325	)
Class E		—			—			—			—			—			—			—			—
Class I		(8	)		(65	)		(16	)		(128	)		(23	)		(213	)		(18	)		(144	)
Class R		(31	)		(261	)		—			—			(28	)		(266	)		—			—
Class Y		(4	)		(29	)		(31	)		(238	)		(16	)		(145	)		(33	)		(279	)
Net decrease		(1,042	)	$	(8,185	)		(744	)	$	(5,745	)		(1,057	)	$	(9,647	)		(1,037	)	$	(8,902	)

* Not shown due to rounding.

	Ivy Micro Cap Growth Fund												Ivy Mid Cap Growth Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		2,306		$	52,229			1,337		$	24,706			12,180		$	255,968			35,683		$	638,824
Class B		26			570			28			510			167			3,065			401			6,336
Class C		123			2,760			76			1,383			2,640			50,582			4,059			67,787
Class E		N/A			N/A			N/A			N/A			28			588			54			971
Class I		421			9,795			109			1,966			20,325			439,743			34,973			664,913
Class R		29			657			28			536			1,042			21,601			2,349			42,082
Class Y		43			1,100			10			194			5,302			115,109			13,593			254,864
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			—			—			—			—			304			5,527
Class B		—			—			—			—			—			—			7			115
Class C		—			—			—			—			—			—			46			767
Class E		N/A			N/A			N/A			N/A			—			—			1			22
Class I		—			—			—			—			—			—			259			4,916
Class R		—			—			—			—			—			—			17			312
Class Y		—			—			—			—			—			—			107			1,991
Shares redeemed:
Class A		(553	)		(12,343	)		(1,062	)		(19,216	)		(7,827	)		(165,826	)		(12,727	)		(233,215	)
Class B		(12	)		(249	)		(20	)		(367	)		(109	)		(1,972	)		(270	)		(4,267	)
Class C		(24	)		(522	)		(57	)		(1,004	)		(973	)		(18,664	)		(2,060	)		(34,107	)
Class E		N/A			N/A			N/A			N/A			(10	)		(206	)		(23	)		(403	)
Class I		(42	)		(942	)		(131	)		(2,342	)		(8,023	)		(178,517	)		(13,612	)		(260,712	)
Class R		(29	)		(647	)		(14	)		(282	)		(880	)		(18,147	)		(1,259	)		(22,833	)
Class Y		(3	)		(75	)		(41	)		(729	)		(4,047	)		(88,124	)		(11,581	)		(214,202	)
Net increase		2,285		$	52,333			263		$	5,355			19,815		$	415,200			50,321		$	919,688

2013 SEMIANNUAL REPORT 209

	Ivy Money Market Fund												Ivy Municipal Bond Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		147,035		$	147,035			160,828		$	160,828			2,284		$	27,221			5,124		$	62,430
Class B		3,452			3,452			6,108			6,108			27			320			88			1,076
Class C		37,559			37,559			37,852			37,852			155			1,851			742			9,040
Class E		1,585			1,585			2,747			2,747			N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			24			282			136			1,661
Class Y		N/A			N/A			N/A			N/A			—			—	*		50			606
Shares issued in reinvestment of distributions to shareholders:
Class A		14			14			27			27			138			1,633			239			2,906
Class B		1			1			2			2			2			22			4			48
Class C		4			4			7			7			17			203			34			420
Class E		—	*		—	*		1			1			N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			2			18			2			22
Class Y		N/A			N/A			N/A			N/A			—	*		3			1			8
Shares redeemed:
Class A		(120,970	)		(120,970	)		(202,199	)		(202,199	)		(3,287	)		(38,641	)		(2,559	)		(31,204	)
Class B		(2,481	)		(2,481	)		(6,516	)		(6,516	)		(67	)		(798	)		(87	)		(1,061	)
Class C		(27,595	)		(27,595	)		(44,742	)		(44,742	)		(745	)		(8,789	)		(627	)		(7,637	)
Class E		(1,531	)		(1,531	)		(1,877	)		(1,877	)		N/A			N/A			N/A			N/A
Class I		N/A			N/A			N/A			N/A			(66	)		(769	)		(53	)		(640	)
Class Y		N/A			N/A			N/A			N/A			(13	)		(150	)		(47	)		(575	)
Net increase (decrease)		37,073		$	37,073			(47,762	)	$	(47,762	)		(1,529	)	$	(17,594	)		3,047		$	37,100

* Not shown due to rounding.

	Ivy Municipal High Income Fund												Ivy Pacific Opportunities Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		12,249		$	64,326			52,256		$	281,954			3,770		$	51,423			8,905		$	120,857
Class B		174			924			1,626			8,752			24			283			98			1,154
Class C		3,897			20,611			27,917			150,467			55			665			156			1,916
Class E		N/A			N/A			N/A			N/A			—			1			—			—
Class I		35,629			183,556			96,022			518,337			402			5,571			2,198			29,513
Class R		N/A			N/A			N/A			N/A			18			263			18			250
Class Y		805			4,235			4,177			22,605			71			986			118			1,573
Shares issued in reinvestment of distributions to shareholders:
Class A		1,721			8,902			2,778			15,041			—			—			244			3,410
Class B		32			167			47			254			—			—			—	*		3
Class C		695			3,593			1,027			5,560			—			—			3			41
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		1,972			10,216			3,095			16,766			—			—			109			1,563
Class R		N/A			N/A			N/A			N/A			—			—			—			—
Class Y		116			603			218			1,178			—			—			3			49
Shares redeemed:
Class A		(32,558	)		(168,619	)		(28,697	)		(155,931	)		(9,422	)		(127,817	)		(9,777	)		(132,826	)
Class B		(575	)		(2,959	)		(430	)		(2,334	)		(188	)		(2,109	)		(294	)		(3,361	)
Class C		(15,121	)		(77,883	)		(7,914	)		(43,012	)		(284	)		(3,380	)		(489	)		(5,809	)
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		(58,444	)		(301,861	)		(41,787	)		(226,983	)		(1,278	)		(17,909	)		(1,579	)		(21,904	)
Class R		N/A			N/A			N/A			N/A			(18	)		(259	)		—			—
Class Y		(3,094	)		(15,809	)		(3,095	)		(16,809	)		(93	)		(1,298	)		(247	)		(3,400	)
Net increase (decrease)		(52,502	)	$	(269,998	)		107,240		$	575,845			(6,943	)	$	(93,580	)		(534	)	$	(6,971	)

* Not shown due to rounding.

210 SEMIANNUAL REPORT 2013

	Ivy Small Cap Growth Fund												Ivy Small Cap Value Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		4,021		$	68,932			4,987		$	72,934			2,014		$	35,676			2,703		$	41,730
Class B		108			1,563			153			1,924			19			300			23			319
Class C		760			11,539			1,407			18,583			179			2,955			165			2,371
Class E		34			575			42			609			—			—			—			—	*
Class I		1,872			37,969			4,210			72,781			277			5,156			239			3,827
Class R		699			11,860			708			10,321			24			433			33			531
Class Y		1,918			37,961			2,603			43,403			104			1,915			243			3,728
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			449			6,202			—			—			480			7,119
Class B		—			—			23			275			—			—			9			114
Class C		—			—			371			4,603			—			—			29			398
Class E		—			—			5			69			—			—			—			—
Class I		—			—			161			2,628			—			—			33			514
Class R		—			—			23			311			—			—			—			—
Class Y		—			—			266			4,201			—			—			10			158
Shares redeemed:
Class A		(2,522	)		(42,886	)		(4,859	)		(70,255	)		(2,414	)		(42,779	)		(4,046	)		(61,765	)
Class B		(93	)		(1,344	)		(203	)		(2,522	)		(34	)		(536	)		(120	)		(1,608	)
Class C		(954	)		(14,458	)		(2,666	)		(34,783	)		(117	)		(1,912	)		(335	)		(4,674	)
Class E		(14	)		(237	)		(34	)		(504	)		—			—			—			—
Class I		(1,044	)		(21,304	)		(2,207	)		(38,184	)		(128	)		(2,385	)		(215	)		(3,376	)
Class R		(270	)		(4,637	)		(572	)		(8,321	)		(17	)		(302	)		(16	)		(279	)
Class Y		(1,345	)		(26,429	)		(3,633	)		(59,729	)		(57	)		(1,051	)		(1,306	)		(20,514	)
Net increase (decrease)		3,170		$	59,104			1,234		$	24,546			(150	)	$	(2,530	)		(2,071	)	$	(31,407	)

* Not shown due to rounding.

	Ivy Tax-Managed Equity Fund												Ivy Value Fund
	Six months ended 9-30-13						Year ended 3-31-13						Six months ended 9-30-13						Year ended 3-31-13
	Shares			Value			Shares			Value			Shares			Value			Shares			Value
Shares issued from sale of shares:
Class A		690		$	10,076			942		$	12,345			2,774		$	59,322			3,404		$	62,633
Class B		47			708			96			1,251			38			781			133			2,359
Class C		21			303			101			1,314			156			3,228			149			2,659
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		61			950			126			1,675			47			1,004			118			2,138
Class R		N/A			N/A			N/A			N/A			14			295			28			528
Class Y		1			11			26			335			20			424			33			611
Shares issued in reinvestment of distributions to shareholders:
Class A		—			—			6			80			—			—			54			931
Class B		—			—			—	*		—	*		—			—			—			1
Class C		—			—			—			—			—			—			1			15
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		—			—			—	*		1			—			—			1			21
Class R		N/A			N/A			N/A			N/A			—			—			—			—
Class Y		—			—			—	*		2			—			—			—	*		3
Shares redeemed:
Class A		(374	)		(5,519	)		(374	)		(4,906	)		(1,514	)		(32,270	)		(1,827	)		(33,052	)
Class B		(46	)		(699	)		(91	)		(1,191	)		(52	)		(1,051	)		(51	)		(882	)
Class C		(2	)		(31	)		(80	)		(1,043	)		(59	)		(1,215	)		(135	)		(2,325	)
Class E		N/A			N/A			N/A			N/A			—			—			—			—
Class I		(59	)		(920	)		(118	)		(1,568	)		(28	)		(599	)		(113	)		(1,931	)
Class R		N/A			N/A			N/A			N/A			(14	)		(292	)		(14	)		(278	)
Class Y		(3	)		(41	)		(45	)		(576	)		(33	)		(712	)		(30	)		(558	)
Net increase		336		$	4,838			589		$	7,719			1,349		$	28,915			1,751		$	32,873

* Not shown due to rounding.

2013 SEMIANNUAL REPORT 211

10. COMMITMENTS ($ amounts in thousands)

Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. At period ended September 30, 2013, Ivy High Income Fund had outstanding bridge loan commitments of $47,395. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income is included in interest income on the Statement of Operations.

11. PURCHASE COMMITMENTS ($ amounts in thousands)

The Ivy High Income Fund entered into a subscription agreement to acquire limited partnership interests in Maritime Finance Company Ltd. The remaining commitment amount at September 30, 2013 was $15,388. Cash and cash equivalents of $15,388 held by the Ivy High Income Fund have been segregated to meet these purchase commitments.

12. FEDERAL INCOME TAX MATTERS ($ amounts in thousands)

For Federal income tax purposes, cost of investments owned at September 30, 2013 and the related unrealized appreciation (depreciation) were as follows:

Fund	Cost of Investments		Gross Appreciation		Gross Depreciation		Net Unrealized Appreciation (Depreciation)
Ivy Bond Fund	$	588,706	$	13,237	$	18,844	$	(5,607	)
Ivy Core Equity Fund		560,006		145,426		3,290		142,136
Ivy Cundill Global Value Fund		258,208		60,103		8,186		51,917
Ivy Dividend Opportunities Fund		250,245		96,875		843		96,032
Ivy European Opportunities Fund		151,253		58,619		1,694		56,925
Ivy Global Bond Fund		274,729		6,921		8,452		(1,531	)
Ivy Global Equity Income Fund		137,349		13,406		982		12,424
Ivy Global Income Allocation Fund		432,315		37,940		9,273		28,667
Ivy High Income Fund		8,676,227		319,894		72,078		247,816
Ivy International Core Equity Fund		1,553,122		256,332		26,858		229,474
Ivy International Growth Fund		300,153		61,282		7,556		53,726
Ivy Large Cap Growth Fund		1,001,425		401,770		1,420		400,350
Ivy Limited-Term Bond Fund		1,578,119		17,104		12,175		4,929
Ivy Managed European/Pacific Fund		65,135		5,774		—		5,774
Ivy Managed International Opportunities Fund		166,697		24,936		—		24,936
Ivy Micro Cap Growth Fund		130,963		42,807		3,751		39,056
Ivy Mid Cap Growth Fund		3,264,542		871,747		66,469		805,278
Ivy Money Market Fund		212,102		—		—		—
Ivy Municipal Bond Fund		138,886		7,463		3,452		4,011
Ivy Municipal High Income Fund		1,275,411		31,775		66,213		(34,438	)
Ivy Pacific Opportunities Fund		503,064		97,466		15,293		82,173
Ivy Small Cap Growth Fund		755,701		338,733		10,915		327,818
Ivy Small Cap Value Fund		239,793		57,544		4,137		53,407
Ivy Tax-Managed Equity Fund		29,186		8,065		113		7,952
Ivy Value Fund		174,398		45,755		543		45,212

For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2013 and the post-October and late-year ordinary activity updated with information available through the date of this report were as follows:

Fund	Distributed Ordinary Income		Undistributed Ordinary Income		Distributed Long-Term Capital Gains		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late- Year Ordinary Losses Deferred
Ivy Bond Fund	$	20,250	$	273	$	—	$	—	$	—	$	259	$	—
Ivy Core Equity Fund		443		—		3,661		7,138		—		—		15
Ivy Cundill Global Value Fund		—		228		—		—		—		—		312
Ivy Dividend Opportunities Fund		4,410		—		—		—		—		1,237		—
Ivy European Opportunities Fund		981		141		—		—		—		—		—
Ivy Global Bond Fund		10,397		569		195		431		—		—		—
Ivy Global Equity Income Fund		1,568		1,590		—		122		—		—		—
Ivy Global Income Allocation Fund		14,809		2,308		—		—		—		—		—
Ivy High Income Fund		524,544		46,518		19,839		34,648		—		—		—
Ivy International Core Equity Fund		22,612		13,919		—		—		—		—		—
Ivy International Growth Fund		2,164		1,070		—		—		—		—		—
Ivy Large Cap Growth Fund		2,842		—		11		39,209		—		—		915
Ivy Limited-Term Bond Fund		24,212		372		4,306		9,541		—		—		—
Ivy Managed European/Pacific Fund		393		—		—		—		—		1,004		121
Ivy Managed International Opportunities Fund		2,598		—		—		—		—		543		143

212 SEMIANNUAL REPORT 2013

Fund	Distributed Ordinary Income		Undistributed Ordinary Income		Distributed Long-Term Capital Gains		Undistributed Long-Term Capital Gains		Tax Return of Capital		Post- October Capital Losses Deferred		Late- Year Ordinary Losses Deferred
Ivy Micro Cap Growth Fund	$	—	$	—	$	—	$	—	$	—	$	—	$	370
Ivy Mid Cap Growth Fund		—		—		15,530		10,654		—		—		6,164
Ivy Money Market Fund		41		22		—		—		—		—		—
Ivy Municipal Bond Fund		3,975		55		—		—		—		—		—
Ivy Municipal High Income Fund		53,850		3,933		—		1,122		—		—		—
Ivy Pacific Opportunities Fund		5,114		181		—		—		—		—		—
Ivy Small Cap Growth Fund		—		—		19,703		31,336		—		—		1,049
Ivy Small Cap Value Fund		2,168		4,448		6,535		7,050		—		—		—
Ivy Tax-Managed Equity Fund		90		—		—		—		—		80		29
Ivy Value Fund		1,010		193		25		504		—		—		—

Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal year late-year ordinary losses that arise from the netting of activity generated between each November 1 and the end of its fiscal year on certain specified ordinary items.

Accumulated capital losses represent net capital loss carryovers as of March 31, 2013 that may be available to offset future realized capital gains and thereby reduce future capital gains distributions. Under the Regulated Investment Company Modernization Act of 2010 (the “Modernization Act”), a Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Any losses incurred during those future taxable years will be required to be utilized prior to any losses incurred in pre-enactment taxable years which have only an eight year carryforward period. As a result of this ordering rule, pre-enactment capital loss carryovers may expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under the previous law. The Fund’s first fiscal year end subject to the Modernization Act is March 31, 2012. The following table shows the expiration dates for capital loss carryovers from pre-enactment taxable years and the amounts of capital loss carryovers, if any, by each of the applicable Funds electing to be taxed as a RIC during the year ended March 31, 2013:

	Pre-Enactment												Post-Enactment
Fund	2014		2015		2016		2017		2018		2019		Short-Term Capital Loss Carryover		Long-Term Capital Loss Carryover
Ivy Bond Fund	$	—	$	94	$	902	$	6,969	$	13,527	$	—	$	—	$	—
Ivy Core Equity Fund		—		—		—		—		—		—		—		—
Ivy Cundill Global Value Fund		—		—		—		—		45,650		—		—		—
Ivy Dividend Opportunities Fund		—		—		—		—		19,669		—		—		—
Ivy European Opportunities Fund		—		—		—		43,096		132,101		—		2,983		3,627
Ivy Global Bond Fund		—		—		—		—		—		—		—		—
Ivy Global Equity Income Fund		—		—		—		—		—		—		—		—
Ivy Global Income Allocation Fund		—		—		—		—		34,018		—		3,086		9,589
Ivy High Income Fund		—		—		—		—		—		—		—		—
Ivy International Core Equity Fund		—		—		—		—		—		—		33,297		46,150
Ivy International Growth Fund		—		—		—		—		17,827		—		—		—
Ivy Large Cap Growth Fund		—		—		—		—		90,761		—		—		—
Ivy Limited-Term Bond Fund		—		—		—		—		—		—		—		—
Ivy Managed European/Pacific Fund		—		—		—		—		15,270		297		—		2,045
Ivy Managed International Opportunities Fund		—		—		—		—		9,289		10,440		—		6,654
Ivy Micro Cap Growth Fund		—		—		—		—		—		—		123		—
Ivy Mid Cap Growth Fund		—		—		—		—		—		—		—		—
Ivy Money Market Fund		—		—		—		—		—		37		—		—
Ivy Municipal Bond Fund		—		—		34		101		84		146		—		—
Ivy Municipal High Income Fund		—		—		—		—		—		—		—		—
Ivy Pacific Opportunities Fund		—		—		—		—		—		—		32,189		22,414
Ivy Small Cap Growth Fund		—		—		—		—		—		—		—		—
Ivy Small Cap Value Fund		—		—		—		—		—		—		—		—
Ivy Tax-Managed Equity Fund		—		—		—		—		7		38		31		—
Ivy Value Fund		—		—		—		—		—		—		—		—

Ivy Mortgage Securities Fund was merged into Ivy Bond Fund as of January 24, 2011. At the time of the merger, Ivy Mortgage Securities Fund had capital loss carryovers available to offset future gains of the Ivy Bond Fund. These carryovers are limited to $4,298 for each period ending from March 31, 2014 through 2018, plus any unused limitations from prior years.

Ivy Capital Appreciation Fund was merged into Ivy Large Cap Growth Fund as of June 13, 2011. At the time of the merger, Ivy Capital Appreciation Fund had capital loss carryovers available to offset future gains of the Ivy Large Cap Growth Fund. These carryovers are limited to $18,066 for each period ending from March 31, 2014 through 2017 plus any unused limitations from prior years.

2013 SEMIANNUAL REPORT 213

RENEWAL OF INVESTMENT MANAGEMENT AGREEMENT

Ivy Funds

At a meeting of the Board of Trustees of Ivy Funds (the “Trust”) held on August 12^th and 13^th, 2013, the Trustees, including all of the Trustees who are not “interested persons,” as defined in Section 2(a)(19) of the 1940 Act, unanimously approved the continuance of the Investment Management Agreement between Ivy Investment Management Company (“IICO”) and the Trust and the continuance of the Investment Subadvisory Agreements between IICO and:

• Advantus Capital Management, Inc. (with respect to Ivy Bond Fund and Ivy Real Estate Securities Fund)

• Mackenzie Financial Corporation (with respect to Ivy Cundill Global Value Fund)

• Wall Street Associates (with respect to Ivy Micro Cap Growth Fund)

• LaSalle Securities (Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund)

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

The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, including, among other things, the nature and the quality of the services provided by IICO and the Subadvisers, profitability (including any fall-out benefits) from the relationships with each series of the Trust (each a “Fund,” and together, the “Funds”), economies of scale, the role played by the Independent Trustees, and information on comparative fees and expenses. The Board also considered the written responses and supplementary materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ counsel prior to the meeting. Included in those responses, which had been provided to the Board prior to the meeting, was a Fund-by-Fund profitability analysis prepared by IICO, as well as an explanation of the methodology by which the profitability analysis was calculated. The Board also received extensive materials on performance, expenses and comparable fund information from Lipper, Inc., an independent mutual fund rating service. Finally, the Independent Trustees received and reviewed a considerable amount of information that their independent fee consultant had provided to them. The Independent Trustees previously had reviewed these materials during a telephonic meeting earlier in August. They further reviewed these materials extensively among themselves, with their independent legal counsel and independent fee consultant, and with the other Board members at an executive session of the Independent Trustees on August 12^th, as well as the August 13^th Board meeting, during which the Board considered various factors described below, none of which by itself was considered dispositive. However, the material factors and conclusions that formed the basis for the Board’s determination to approve the agreements are discussed separately below.

Nature, Extent and Quality of Services

The Board considered the nature, extent and quality of services provided to the Funds by IICO and each Subadviser, taking into account the large amount of materials produced by IICO and each Subadviser in response to the 15(c) due diligence request lists submitted on their behalf by counsel. They also considered the knowledge they had received from the regular meetings of the Board, including from the materials provided in connection with those meetings, such as the resources and key personnel of IICO and each Subadviser, as well as the other services provided to the Funds by IICO and each Subadviser (such as, managing the quality of execution of portfolio transactions and the selection of broker-dealers for those transactions, monitoring adherence to each Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various Fund policies and procedures and with applicable securities laws and regulations). The Board also took into account the compliance environment at IICO and each Subadviser, noting the resources that IICO has dedicated towards compliance. The Board concluded that the nature and extent of the services provided by IICO and each Subadviser were appropriate, that the quality of those services had been consistent with quality norms in the industry and that the Funds were likely to benefit from the continued provision of those services.

Benefits from the Relationship with Funds

The Board next discussed whether IICO or any Subadviser derives any other direct or indirect benefit from serving the Funds. The Board considered the benefits that accrue to each organization from its respective relationship with a Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing, administrative and fund accounting services. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receive any additional direct or indirect benefits that would preclude the Board from approving the continuation of an investment advisory agreement with IICO or any investment sub-advisory agreement with a Subadviser.

Economies of Scale

The Board discussed whether economies of scale are being realized by the Funds and whether fee levels reflect those economies of scale for the benefit of the Funds’ shareholders. In that context, the Board discussed the current level of the Funds’ advisory fee breakpoints and also considered the current and anticipated asset levels of the Funds and the potential for growth in each Fund. The Board concluded that the Funds’ asset sizes and fee structures did not warrant the restructuring or reevaluation of the fee breakpoints for the Funds at the current time.

Performance of the Funds and Costs of Services Provided

The Board considered, on a Fund by Fund basis, the performance of each Fund and the costs of the services provided, focusing on a number of Funds that the independent fee consultant had identified. 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

214 SEMIANNUAL REPORT 2013

concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.

The Board also considered the expenses of each Fund, the expense ratio of each Fund, and the expense limitation arrangements entered into by IICO in light of the services provided by IICO and each Subadviser. The Board also compared each Fund’s expenses, including advisory, distribution and shareholder servicing fees, with the expenses and advisory fees of other investment advisers managing similarly situated funds, as well as the advisory fees that IICO (or an affiliate) charges for providing advisory services to other accounts in the same asset class for certain

Funds. In that regard, the Board noted that IICO performs significant additional services for the Funds as compared to those other accounts. The Board also took into account the information on IICO’s profitability in managing the Funds, including the methodology used to calculate profitability. The Board finally considered the amount of assets in each Fund, each Fund’s average account size and how those factors affect the Funds’ expense ratios, noting that, as the Funds’ assets have increased over time, the expense ratios of the Funds generally have fallen. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.

Independent Fee Consultant Review

During August of 2013, and as part of their regularly scheduled meetings, the Disinterested Trustees of Ivy Funds (collectively, the “Ivy Funds” and any separate series thereof an “Ivy Fund”) reviewed a substantial amount of information in connection with considering the continuation of the existing investment management agreement currently in effect between Ivy Investment Management Company (“IICO”) and the Ivy Funds. The Disinterested Trustees of the Ivy Funds engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Ivy Funds. The independent fee consultant’s review addressed the following fee-related factors:

1. The nature, extent 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 agreement, and profit margins of IICO and its affiliates from supplying such services

5. Possible economies of scale as an Ivy Fund grows larger

The following summarizes the findings of the independent fee consultant retained by the Disinterested Trustees.¹

Summary Findings

The report stated that IICO delivered reasonable levels of performance in the longer-term periods and service to the Ivy Funds in relation to its management fees and relative to investment advisers of comparable mutual funds. For the three-year period ended March 31, 2013, when compared to their respective peer groups established by Lipper, Inc. (“Lipper”), approximately 21% of the Ivy Funds were in the top quintile of performance and 39% of the Ivy Funds were in the top two quintiles of performance. The independent fee consultant noted that the Ivy Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO, including stock selection ability, ability to attract top talent, strategic vision, performance-focused culture, economic analysis, ability to serve small account sizes and an effective trading infrastructure, and that these factors offer the Ivy Funds a reasonable expectation of strong investment and service performance over the long term.

The report stated that for the 12 months ended March 31, 2013, the total expense ratios of the Ivy Funds were 3% below the mean total expense ratios of comparable Lipper Expense Group peers and 14% below the mean total expense ratios of funds in the comparable Lipper Expense Universes. The management fees for the Ivy Funds on average were approximately 7% below the mean management fees for their Lipper Expense Groups and Lipper Expense Universes. The independent fee consultant noted that the Ivy Funds’ small average account size introduces certain biases in the Lipper analyses that generally work against Ivy Funds in Lipper expense comparisons and, as a result, the Lipper findings may be considered conservative in that regard. The independent fee consultant found that within the larger Lipper averages, the management fees and total expenses of individual Ivy Funds and share classes are reasonable relative to their performance.

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 to IICO, as a percentage of 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 average net assets. Where these terms are used in reference to groups of Ivy Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2013. Lipper report data reflects Class A shares.

2013 SEMIANNUAL REPORT 215

The report also stated that the management fees IICO charges to the Ivy Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, based on industry data, the average spread between management fees charged to the Ivy Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.

The independent fee consultant found that the level of profit earned by IICO from managing the Ivy Funds appears to be reasonable. The report noted that IICO’s overall profitability from managing the Ivy Funds and its other operations is at the median of most similarly-sized, publicly traded mutual fund managers and appears adequate to enable IICO to continue to provide quality support to the Ivy Funds and their shareholders.

The report stated that the independent fee consultant found the Ivy Funds’ fees and expenses reasonable in light of any possible economies of scale that may exist. The report went on to state that the Ivy Funds’ shareholders are generally benefiting from lower expense ratios resulting from lower management fees through growth in assets and savings generated in non-management expenses.

Conclusions

The independent fee consultant believes that the services provided by IICO and its affiliates and expenses incurred by the Ivy Funds in the previous twelve months are reasonable and provide adequate justification for renewal of the Ivy Funds’ existing advisory agreements.

Approval of Ivy Global Equity Income Fund

At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on May 22, 2012, the trustees, including all of the trustees who are not “interested persons” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (“Independent Trustees”), considered and approved an amendment to the Investment Management Agreement (the “Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, on behalf of Ivy Global Equity Income Fund (the “Fund”), to include the Fund under the Agreement. The Fund is a newly created series of the Trust.

The Independent Trustees were assisted in their consideration of the Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO and the interested trustee. Independent legal counsel had provided the Board with a memorandum that discussed the various factors that the Board should consider as part of its consideration of the Agreement, including, among other things, the nature and the quality of the services proposed to be provided to the Fund by IICO, IICO’s projected profitability (including any fall-out benefits) from its proposed relationship with the Fund, projected economies of scale, the role played by the Independent Trustees and information on comparative fees and expenses. The material factors and conclusions that formed the basis for the Board’s determination to approve the Agreement are discussed below.

In considering the Agreement, the Board noted that the Fund would be managed in a substantially similar fashion as the equity portion of the Ivy Global Income Allocation Fund. Although the Fund has not yet commenced operations and therefore the Board did not have specific information to examine, the Board concluded that the Fund appeared to be designed to be able to achieve acceptable performance. The Board also considered the proposed expenses of the Fund, the cost of the services proposed to be provided by IICO, including as compared to the other funds in the Ivy Funds family, and the proposed expense cap agreement, and concluded that the proposed expenses of the Fund were acceptable. The Board, however, did not discuss the projected profitability of IICO in managing the Fund because the Fund had not yet commenced operations, but noted that it would monitor profitability once the Fund began operations. The Board considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objective and strategy of the Fund based upon its experience with IICO, as well as the materials previously provided to the Board on the Fund. In addition, the Board reviewed the resources and key personnel of IICO, especially those proposed to provide investment management services to the Fund. The Board also considered other services proposed to be provided to the Fund by IICO, based upon its current experiences with IICO, such as monitoring adherence to the Ivy 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 policies and procedures and with applicable securities laws and regulations. The Board concluded that the nature and extent of the services proposed to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other funds of the Ivy Funds. The Board also discussed whether IICO would derive any other direct or indirect benefits from serving as investment adviser to the Fund. The Board considered the benefits that would accrue to IICO from its relationship with the Fund, including the fact that a variety of services are provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After consideration of these and other factors, the Board concluded that neither IICO nor its affiliates would receive any additional direct benefits that would preclude the Board from approving the Agreement for the Fund. The Board did not discuss possible economies of scale because the Fund had not commenced operations, but took note of the Fund’s proposed advisory fee schedule.

216 SEMIANNUAL REPORT 2013

PROXY VOTING INFORMATION

Ivy Funds

Proxy Voting Guidelines

A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission’s (SEC) website at www.sec.gov.

Proxy Voting Records

Information regarding how the Trust 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

Ivy Funds

Portfolio holdings can be found on the Trust’s website at www.ivyfunds.com. Alternatively, a complete schedule of portfolio holdings of each Fund for the first and third quarters of each fiscal year is filed with the SEC and can be found on the Trust’s Form N-Q. These holdings may be viewed 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.

TO ALL TRADITIONAL IRA PLANHOLDERS:

Ivy Funds

As required by law, we are hereby providing notice to you that income tax may be withheld automatically from any distribution or withdrawal from a traditional IRA. A Fund is generally required to withhold taxes unless you make a written election not to have taxes withheld. The election may be made on the distribution/withdrawal form provided by Waddell & Reed, Inc. which can be obtained from your Waddell & Reed representative or by submitting Internal Revenue Service Form W–4P. Once made, an election can be revoked by providing written notice to Waddell & Reed, Inc. If you elect not to have tax withheld you may be required to make payments of estimated tax. Penalties may be imposed by the IRS if withholding and estimated tax payments are not adequate.

2013 SEMIANNUAL REPORT 217

This page intentionally left blank.

218 SEMIANNUAL REPORT 2013

The Ivy Funds Family

Domestic Equity Funds

Ivy Core Equity Fund

Ivy Dividend Opportunities Fund

Ivy Large Cap Growth Fund

Ivy Micro Cap Growth Fund

Ivy Mid Cap Growth Fund

Ivy Small Cap Growth Fund

Ivy Small Cap Value Fund

Ivy Tax-Managed Equity Fund

Ivy Value Fund

Global/International Funds

Ivy Cundill Global Value Fund

Ivy European Opportunities Fund

Ivy Global Equity Income Fund

Ivy Global Income Allocation Fund

Ivy International Core Equity Fund

Ivy International Growth Fund

Ivy Managed European/Pacific Fund

Ivy Managed International Opportunities Fund

Ivy Pacific Opportunities Fund

Specialty Funds

Ivy Asset Strategy Fund

Ivy Asset Strategy New Opportunities Fund

Ivy Balanced Fund

Ivy Energy Fund

Ivy Global Natural Resources Fund

Ivy Global Real Estate Fund

Ivy Global Risk-Managed Real Estate Fund

Ivy Real Estate Securities Fund

Ivy Science and Technology Fund

Fixed Income Funds

Ivy Bond Fund

Ivy Global Bond Fund

Ivy High Income Fund

Ivy Limited-Term Bond Fund

Ivy Money Market Fund

Ivy Municipal Bond Fund

Ivy Municipal High Income Fund

1.800.777.6472

Visit us online at www.ivyfunds.com

The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Funds Distributor, Inc.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for the Ivy Funds, call your financial advisor or visit us online at www.ivyfunds.com. Please read the prospectus, or summary prospectus, carefully before investing.

2013 SEMIANNUAL REPORT 219

SEMIANN-IVYFUNDS (9-13)

ITEM 2.    CODE OF ETHICS

Required in annual report only.

ITEM 3.    AUDIT COMMITTEE FINANCIAL EXPERT

Required in annual report only.

ITEM 4.    PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Required in annual report only.

ITEM 5.    AUDIT COMMITTEE OF LISTED REGISTRANTS

Not applicable.

ITEM 6.    SCHEDULE OF INVESTMENTS.

See Item 1 Shareholder Report.

ITEM 7.    DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 8.    PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9.    PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 10.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors.

ITEM 11.    CONTROLS AND PROCEDURES.

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or submits is accumulated and communicated to the Registrant’s management, including the Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.

(b) There were no significant changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s second fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12.    EXHIBITS.

(a)(1) Required in annual report only.

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940
(17 CFR 270.30a-2(a)).

Attached hereto as Exhibit 99.CERT.

(b) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940
(17 CFR 270.30a-2(b)).

Attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Ivy Funds (Registrant)
By	/s/ Mara D. Herrington
	Mara D. Herrington, Vice President and Secretary

Date: December 6, 2013

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 6, 2013

By	/s/ Joseph W. Kauten
	Joseph W. Kauten, Vice President and Principal Financial Officer

Date: December 6, 2013