Table of Contents
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, 2014
Table of Contents
ITEM 1. REPORTS TO STOCKHOLDERS.
Table of Contents
Semiannual Report
September 30, 2014
Ivy Funds
Ivy Asset Strategy 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
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Ivy Funds
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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 | 2014 |
Table of Contents
Ivy Funds | SEPTEMBER 30, 2014 (UNAUDITED) |
Henry J. Herrmann, CFA
Dear Shareholder,
Over the past six months stocks shook off many negative headlines as major indexes touched record high territory. Beyond potential headwinds on the global front — including unrest in the Middle East and the Ukraine — the U.S. economy experienced a much slower-than-expected start to the year.
Markets moved in ways that were at odds with traditional patterns, as stocks and bonds rallied simultaneously. Although many investors expected yields to climb in 2014, the reverse occurred. The yield on the benchmark 10-year Treasury, which hovered around 2.75% in March, ended September at 2.52%. This move reflected slow economic improvement and continued very low inflation.
Internationally, the European Central Bank (ECB) took the unprecedented step of dropping short-term interest rates into negative territory. The already slow European economy slowed further. The prospect for deflation became real. The ECB move, which essentially charges lenders for holding their money, was one of several that European policymakers have taken in a bid to boost lackluster growth. In China, officials announced their own series of measures designed to boost growth. Lackluster demand, especially for commodities, is creating uncertainty regarding global growth.
Looking ahead, we expect economic improvement to continue in the U.S. We believe the U.S. economy is stronger than most and that U.S. stocks appear to offer the best opportunity for positive returns. Corporate earnings are expected to rise, inflation to remain low and the jobs picture to continue to improve. All of this provides a positive backdrop for stocks. The Federal Reserve seems likely to take its time raising interest rates as it weighs the strength of improvement in the economy.
Economic Snapshot
9/30/14 | 3/31/14 | |||||||
S&P 500 Index | 1,972.29 | 1,872.34 | ||||||
MSCI EAFE Index | 1,846.08 | 1,915.69 | ||||||
10-Year Treasury Yield | 2.52% | 2.73% | ||||||
U.S. unemployment rate | 5.9% | 6.7% | ||||||
30-year fixed mortgage rate | 4.3% | 4.6% | ||||||
Oil price per barrel | $ | 91.16 | $ | 101.58 |
Sources: Bloomberg, U.S. Department of Labor, MBA, 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. 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 will continue to closely monitor these and other economic developments in the months ahead.
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.
2014 | SEMIANNUAL REPORT | 3 |
Table of Contents
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, 2014.
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. With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 on the Friday prior to the last week of September each year, the account will be assessed an account fee of $20. 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 7 to the Financial Statements for further information.
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Asset Strategy Fund | ||||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 965.20 | $ | 4.72 | $ | 1,000 | $ | 1,020.31 | $ | 4.85 | 0.95% | |||||||||||||||
Class B** | $ | 1,000 | $ | 961.70 | $ | 8.34 | $ | 1,000 | $ | 1,016.54 | $ | 8.57 | 1.70% | |||||||||||||||
Class C | $ | 1,000 | $ | 961.90 | $ | 8.24 | $ | 1,000 | $ | 1,016.66 | $ | 8.47 | 1.68% | |||||||||||||||
Class E | $ | 1,000 | $ | 965.30 | $ | 4.91 | $ | 1,000 | $ | 1,020.05 | $ | 5.05 | 1.00% | |||||||||||||||
Class I | $ | 1,000 | $ | 966.40 | $ | 3.64 | $ | 1,000 | $ | 1,021.40 | $ | 3.74 | 0.73% | |||||||||||||||
Class R | $ | 1,000 | $ | 963.40 | $ | 6.58 | $ | 1,000 | $ | 1,018.41 | $ | 6.76 | 1.33% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 969.50 | $ | 0.98 | $ | 1,000 | $ | 1,022.19 | $ | 2.93 | 0.57% | |||||||||||||||
Class Y | $ | 1,000 | $ | 965.30 | $ | 4.72 | $ | 1,000 | $ | 1,020.31 | $ | 4.85 | 0.95% | |||||||||||||||
Ivy Balanced Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,030.20 | $ | 5.68 | $ | 1,000 | $ | 1,019.46 | $ | 5.65 | 1.12% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,026.40 | $ | 9.42 | $ | 1,000 | $ | 1,015.77 | $ | 9.37 | 1.85% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,026.40 | $ | 9.22 | $ | 1,000 | $ | 1,015.97 | $ | 9.17 | 1.81% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,030.40 | $ | 4.97 | $ | 1,000 | $ | 1,020.14 | $ | 4.95 | 0.98% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,031.50 | $ | 4.47 | $ | 1,000 | $ | 1,020.71 | $ | 4.45 | 0.87% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,028.40 | $ | 7.51 | $ | 1,000 | $ | 1,017.72 | $ | 7.47 | 1.47% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,018.00 | $ | 1.21 | $ | 1,000 | $ | 1,021.51 | $ | 3.64 | 0.74% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,030.20 | $ | 5.68 | $ | 1,000 | $ | 1,019.47 | $ | 5.65 | 1.12% |
See footnotes on page 6.
4 | SEMIANNUAL REPORT | 2014 |
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ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Energy Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,029.90 | $ | 7.41 | $ | 1,000 | $ | 1,017.73 | $ | 7.36 | 1.46% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,025.40 | $ | 11.54 | $ | 1,000 | $ | 1,013.68 | $ | 11.48 | 2.27% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,027.00 | $ | 10.64 | $ | 1,000 | $ | 1,014.59 | $ | 10.58 | 2.09% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,031.20 | $ | 6.20 | $ | 1,000 | $ | 1,019.01 | $ | 6.16 | 1.21% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,032.10 | $ | 5.59 | $ | 1,000 | $ | 1,019.60 | $ | 5.55 | 1.09% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,029.40 | $ | 8.62 | $ | 1,000 | $ | 1,016.59 | $ | 8.57 | 1.69% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 961.70 | $ | 1.57 | $ | 1,000 | $ | 1,020.40 | $ | 4.75 | 0.93% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,030.80 | $ | 6.80 | $ | 1,000 | $ | 1,018.33 | $ | 6.76 | 1.34% | |||||||||||||||
Ivy Global Natural Resources Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,006.30 | $ | 7.62 | $ | 1,000 | $ | 1,017.47 | $ | 7.67 | 1.52% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,001.80 | $ | 12.21 | $ | 1,000 | $ | 1,012.84 | $ | 12.28 | 2.44% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,003.10 | $ | 10.92 | $ | 1,000 | $ | 1,014.17 | $ | 10.98 | 2.17% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,007.20 | $ | 6.42 | $ | 1,000 | $ | 1,018.70 | $ | 6.46 | 1.27% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,008.10 | $ | 5.62 | $ | 1,000 | $ | 1,019.50 | $ | 5.65 | 1.11% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,005.30 | $ | 8.42 | $ | 1,000 | $ | 1,016.65 | $ | 8.47 | 1.68% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 949.20 | $ | 1.56 | $ | 1,000 | $ | 1,020.47 | $ | 4.65 | 0.92% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,007.20 | $ | 6.82 | $ | 1,000 | $ | 1,018.31 | $ | 6.86 | 1.35% | |||||||||||||||
Ivy Global Real Estate Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,038.40 | $ | 7.64 | $ | 1,000 | $ | 1,017.53 | $ | 7.57 | 1.51% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,032.70 | $ | 13.72 | $ | 1,000 | $ | 1,011.61 | $ | 13.58 | 2.68% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,031.60 | $ | 13.71 | $ | 1,000 | $ | 1,011.55 | $ | 13.58 | 2.70% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,037.50 | $ | 8.15 | $ | 1,000 | $ | 1,017.08 | $ | 8.07 | 1.59% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,034.10 | $ | 11.49 | $ | 1,000 | $ | 1,013.78 | $ | 11.38 | 2.25% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,038.20 | $ | 7.75 | $ | 1,000 | $ | 1,017.50 | $ | 7.67 | 1.51% | |||||||||||||||
Ivy Global Risk-Managed Real Estate Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,041.30 | $ | 7.76 | $ | 1,000 | $ | 1,017.50 | $ | 7.67 | 1.51% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,036.30 | $ | 12.42 | $ | 1,000 | $ | 1,012.91 | $ | 12.28 | 2.42% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,035.20 | $ | 12.52 | $ | 1,000 | $ | 1,012.73 | $ | 12.38 | 2.46% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,041.00 | $ | 8.06 | $ | 1,000 | $ | 1,017.15 | $ | 7.97 | 1.58% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,038.20 | $ | 11.11 | $ | 1,000 | $ | 1,014.21 | $ | 10.98 | 2.17% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,041.30 | $ | 7.76 | $ | 1,000 | $ | 1,017.52 | $ | 7.67 | 1.51% | |||||||||||||||
Ivy Real Estate Securities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,038.60 | $ | 7.64 | $ | 1,000 | $ | 1,017.60 | $ | 7.57 | 1.49% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,032.80 | $ | 12.60 | $ | 1,000 | $ | 1,012.66 | $ | 12.48 | 2.47% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,034.60 | $ | 11.29 | $ | 1,000 | $ | 1,013.96 | $ | 11.18 | 2.21% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,037.20 | $ | 8.56 | $ | 1,000 | $ | 1,016.70 | $ | 8.47 | 1.67% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,040.90 | $ | 5.20 | $ | 1,000 | $ | 1,019.93 | $ | 5.15 | 1.02% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,037.20 | $ | 8.45 | $ | 1,000 | $ | 1,016.80 | $ | 8.37 | 1.65% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 973.00 | $ | 1.48 | $ | 1,000 | $ | 1,020.77 | $ | 4.34 | 0.86% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,039.30 | $ | 6.42 | $ | 1,000 | $ | 1,018.75 | $ | 6.36 | 1.26% |
See footnotes on page 6.
2014 | SEMIANNUAL REPORT | 5 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Science and Technology Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,015.60 | $ | 6.35 | $ | 1,000 | $ | 1,018.73 | $ | 6.36 | 1.26% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,011.80 | $ | 10.16 | $ | 1,000 | $ | 1,014.96 | $ | 10.18 | 2.02% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,012.10 | $ | 9.86 | $ | 1,000 | $ | 1,015.24 | $ | 9.87 | 1.96% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,014.60 | $ | 7.25 | $ | 1,000 | $ | 1,017.90 | $ | 7.26 | 1.43% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,017.10 | $ | 4.94 | $ | 1,000 | $ | 1,020.16 | $ | 4.95 | 0.98% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,014.00 | $ | 7.96 | $ | 1,000 | $ | 1,017.15 | $ | 7.97 | 1.58% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,011.20 | $ | 1.41 | $ | 1,000 | $ | 1,020.97 | $ | 4.14 | 0.82% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,015.80 | $ | 6.25 | $ | 1,000 | $ | 1,018.90 | $ | 6.26 | 1.23% |
* | 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, 2014, and divided by 365. |
** | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
*** | Class share is closed to investment. |
(1) | This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column 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. |
(3) | Actual inception date for each share class is 7-31-14 (the date on which shares were first acquired by shareholders). The calculations are based on 62 days in the period ended September 30, 2014. |
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 | 2014 |
Table of Contents
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 71.0% | |||
Information Technology | 18.8% | |||
Consumer Discretionary | 17.7% | |||
Financials | 9.9% | |||
Industrials | 7.1% | |||
Energy | 6.2% | |||
Health Care | 4.0% | |||
Materials | 4.0% | |||
Consumer Staples | 3.3% | |||
Bullion (Gold) | 5.7% | |||
Purchased Options | 0.1% | |||
Bonds | 3.3% | |||
Corporate Debt Securities | 3.3% | |||
United States Government and Government Agency Obligations | 0.0% | |||
Cash and Cash Equivalents | 19.9% |
Lipper Rankings
Category: Lipper Alternative Global Macro Funds | Rank | Percentile | ||
1 Year | 170/303 | 56 | ||
3 Year | 5/191 | 3 | ||
5 Year | 15/110 | 14 | ||
10 Year | 4/41 | 10 |
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 | 54.2% | |||
United States | 54.2% | |||
Pacific Basin | 11.7% | |||
Hong Kong | 7.0% | |||
Other Pacific Basin | 4.7% | |||
Europe | 8.4% | |||
United Kingdom | 6.8% | |||
Other Europe | 1.6% | |||
Bullion (Gold) | 5.7% | |||
Cash and Cash Equivalents and Options | 20.0% |
Top 10 Equity Holdings
Company | Country | Sector | ||
Galaxy Entertainment Group | Hong Kong | Consumer Discretionary | ||
AIA Group Ltd. | Hong Kong | Financials | ||
Las Vegas Sands, Inc. | United States | Consumer Discretionary | ||
Media Group Holdings LLC | United States | Consumer Discretionary | ||
Microsoft Corp. | United States | Information Technology | ||
Apple, Inc. | United States | Information Technology | ||
Delta Topco Ltd. | United Kingdom | Consumer Discretionary | ||
Nielsen Holdings N.V. | United States | Industrials | ||
Caterpillar, Inc. | United States | Industrials | ||
Cognizant Technology Solutions Corp., Class A | United States | Information Technology |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 7 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Aerospace & Defense – 2.2% |
| |||||||
Boeing Co. (The) (A) | 2,881 | $ | 367,020 | |||||
Precision Castparts Corp. | 1,522 | 360,484 | ||||||
|
| |||||||
727,504 | ||||||||
|
| |||||||
Airlines – 0.5% |
| |||||||
Japan Airlines | 5,394 | 147,534 | ||||||
|
| |||||||
Apparel Retail – 0.5% |
| |||||||
Limited Brands, Inc. | 2,531 | 169,495 | ||||||
|
| |||||||
Application Software – 2.3% |
| |||||||
Adobe Systems, Inc. (C) | 5,252 | 363,414 | ||||||
Intuit, Inc. | 4,436 | 388,824 | ||||||
|
| |||||||
752,238 | ||||||||
|
| |||||||
Auto Parts & Equipment – 0.9% |
| |||||||
Continental AG (B) | 1,474 | 280,377 | ||||||
|
| |||||||
Automobile Manufacturers – 1.2% |
| |||||||
Ford Motor Co. (A) | 26,413 | 390,641 | ||||||
|
| |||||||
Biotechnology – 2.7% |
| |||||||
Amgen, Inc. (A) | 2,530 | 355,364 | ||||||
Biogen Idec, | 812 | 268,552 | ||||||
Gilead Sciences, | 2,277 | 242,355 | ||||||
|
| |||||||
866,271 | ||||||||
|
| |||||||
Brewers – 2.5% |
| |||||||
InBev N.V. (B) | 3,165 | 352,277 | ||||||
SABMiller plc (B) | 8,712 | 484,123 | ||||||
|
| |||||||
836,400 | ||||||||
|
| |||||||
Broadcasting – 0.3% |
| |||||||
CBS Corp., Class B | 2,127 | 113,807 | ||||||
|
| |||||||
Casinos & Gaming – 6.7% |
| |||||||
Galaxy Entertainment Group (B)(D) | 229,601 | 1,333,575 | ||||||
Las Vegas Sands, Inc. | 13,461 | 837,385 | ||||||
Macau Legend Development | 61,903 | 31,410 | ||||||
|
| |||||||
2,202,370 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 1.5% |
| |||||||
Caterpillar, Inc. (A) | 5,020 | 497,150 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 1.5% |
| |||||||
Alliance Data Systems Corp. (C) | 1,069 | 265,500 | ||||||
Visa, Inc., Class A | 1,116 | 238,206 | ||||||
|
| |||||||
503,706 | ||||||||
|
| |||||||
Diversified Banks – 0.9% |
| |||||||
Wells Fargo & Co. | 5,797 | 300,664 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Diversified Chemicals – 0.9% |
| |||||||
Dow Chemical Co. | 5,646 | $ | 296,066 | |||||
|
| |||||||
Diversified Metals & Mining – 2.1% |
| |||||||
BHP Billiton plc (B) | 7,816 | 217,294 | ||||||
Freeport-McMoRan Copper & Gold, Inc., Class B (A) | 7,749 | 252,991 | ||||||
Rio Tinto plc (B) | 4,762 | 234,033 | ||||||
|
| |||||||
704,318 | ||||||||
|
| |||||||
Home Improvement Retail – 1.1% |
| |||||||
Home Depot, Inc. (The) | 3,758 | 344,731 | ||||||
|
| |||||||
Integrated Oil & Gas – 2.8% |
| |||||||
Chevron Corp. (A) | 2,051 | 244,701 | ||||||
Exxon Mobil Corp. | 2,599 | 244,427 | ||||||
Occidental Petroleum Corp. (A) | 4,432 | 426,148 | ||||||
|
| |||||||
915,276 | ||||||||
|
| |||||||
Internet Retail – 1.3% |
| |||||||
Amazon.com, Inc. (C) | 1,330 | 428,748 | ||||||
|
| |||||||
Internet Software & Services – 2.4% |
| |||||||
Alibaba Group Holding Ltd. ADR (C) | 1,269 | 112,711 | ||||||
Baidu.com, Inc. | 1,289 | 281,277 | ||||||
Tencent Holdings | 25,554 | 380,108 | ||||||
|
| |||||||
774,096 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.2% |
| |||||||
Goldman Sachs Group, Inc. (The) (A) | 2,165 | 397,466 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.5% |
| |||||||
Cognizant Technology Solutions Corp., | 11,007 | 492,804 | ||||||
|
| |||||||
Life & Health Insurance – 5.2% |
| |||||||
AIA Group Ltd. (B) | 185,301 | 958,141 | ||||||
MetLife, Inc. (A) | 6,859 | 368,487 | ||||||
Prudential Financial, | 4,069 | 357,801 | ||||||
|
| |||||||
1,684,429 | ||||||||
|
| |||||||
Managed Health Care – 0.6% |
| |||||||
Humana, Inc. (A) | 1,504 | 195,956 | ||||||
|
| |||||||
Movies & Entertainment – 5.7% |
| |||||||
Delta Topco | 718,555 | 592,129 | ||||||
Legend Pictures | 190 | 355,766 | ||||||
Media Group Holdings LLC (C)(D)(E)(K) | 381 | 818,616 | ||||||
Twenty-First Century Fox, Inc., Class A | 2,528 | 86,685 | ||||||
|
| |||||||
1,853,196 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Multi-Line Insurance – 1.1% |
| |||||||
American International Group, Inc. (A) | 6,676 | $ | 360,659 | |||||
|
| |||||||
Oil & Gas Equipment & Services – 0.4% |
| |||||||
Schlumberger Ltd. | 1,139 | 115,855 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 1.4% |
| |||||||
ConocoPhillips (A) | 6,139 | 469,787 | ||||||
|
| |||||||
Oil & Gas Refining & Marketing – 0.3% |
| |||||||
Phillips 66 | 1,157 | 94,093 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 1.3% |
| |||||||
Plains GP Holdings L.P., Class A | 13,699 | 419,862 | ||||||
|
| |||||||
Other Diversified Financial Services – 1.5% |
| |||||||
Citigroup, Inc. | 9,424 | 488,367 | ||||||
|
| |||||||
Packaged Foods & Meats – 0.8% |
| |||||||
Mead Johnson Nutrition Co. | 2,595 | 249,666 | ||||||
|
| |||||||
Pharmaceuticals – 0.7% |
| |||||||
Bristol-Myers Squibb Co. | 1,868 | 95,579 | ||||||
Roche Holdings AG, Genusscheine (B) | 463 | 137,205 | ||||||
|
| |||||||
232,784 | ||||||||
|
| |||||||
Railroads – 1.2% |
| |||||||
Union Pacific Corp. | 3,563 | 386,268 | ||||||
|
| |||||||
Research & Consulting Services – 1.7% |
| |||||||
Nielsen Holdings N.V. | 12,645 | 560,562 | ||||||
|
| |||||||
Semiconductor Equipment – 1.6% |
| |||||||
Applied Materials, Inc. | 20,150 | 435,448 | ||||||
ASML Holding N.V., NY Registry Shares | 1,013 | 100,055 | ||||||
|
| |||||||
535,503 | ||||||||
|
| |||||||
Semiconductors – 4.5% |
| |||||||
Advanced Micro Devices, | 45,986 | 156,813 | ||||||
Intel Corp. | 9,686 | 337,267 | ||||||
MediaTek, Inc. (B) | 9,001 | 133,301 | ||||||
Micron Technology, Inc. (C) | 5,407 | 185,237 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (B) | 50,424 | 198,915 | ||||||
Texas Instruments, Inc. (A) | 9,355 | 446,135 | ||||||
|
| |||||||
1,457,668 | ||||||||
|
| |||||||
Specialty Chemicals – 1.0% |
| |||||||
LyondellBasell Industries N.V., Class A | 2,859 | 310,605 | ||||||
|
| |||||||
Systems Software – 2.2% |
| |||||||
Microsoft Corp. | 15,754 | 730,337 | ||||||
|
|
8 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Technology Hardware, Storage & Peripherals – 2.8% |
| |||||||
Apple, Inc. | 7,040 | $ | 709,251 | |||||
FUJIFILM Holdings Corp. (B) | 6,963 | 213,944 | ||||||
|
| |||||||
923,195 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS – 71.0% |
| $ | 23,210,454 | |||||
(Cost: $20,648,629) |
| |||||||
PURCHASED OPTIONS | Number of Contracts (Unrounded) | |||||||
Apple, Inc.: | ||||||||
Call $105.00, Expires | 9,904 | 1,956 | ||||||
Call $105.00, | 9,904 | 2,555 | ||||||
S&P 500 Index: | ||||||||
Put $1,875.00, Expires | 3,948 | 168 | ||||||
Put $1,935.00, | 3,948 | 1,283 | ||||||
Call $2,050.00, | 19,056 | 1,048 | ||||||
Put $1,775.00, Expires | 3,947 | 908 | ||||||
Put $1,925.00, Expires | 3,947 | 5,723 | ||||||
Call $2,125.00, | 28,584 | 4,788 | ||||||
Call $2,150.00, | 15,885 | 1,231 | ||||||
Call $2,175.00, Expires | 15,885 | 2,025 |
PURCHASED OPTIONS (Continued) | Number of Contracts (Unrounded) | Value | ||||||
Call $2,200.00, Expires | 15,880 | $ | 5,400 | |||||
|
| |||||||
TOTAL PURCHASED |
| $ | 27,085 | |||||
(Cost: $67,781) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Automobile Manufacturers – 0.4% |
| |||||||
Aston Martin Holdings Ltd., | $ | 134,772 | 135,847 | |||||
|
| |||||||
Movies & Entertainment – 2.9% |
| |||||||
Delta Topco Ltd., | 602,589 | 602,590 | ||||||
Legendary Pictures Funding LLC and Legendary Finance, Inc., | 351,700 | 349,519 | ||||||
|
| |||||||
952,109 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 3.3% |
| $ | 1,087,956 | |||||
(Cost: $1,095,270) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | ||||||||
Mortgage-Backed Obligations – 0.0% |
| |||||||
Federal Home Loan Mortgage Corp. Agency | ||||||||
5.500%, | 78 | 1 | ||||||
5.000%, | 407 | 27 | ||||||
5.500%, | 339 | 34 | ||||||
5.500%, | 660 | 95 | ||||||
5.500%, | 299 | 58 | ||||||
5.500%, | 533 | 110 | ||||||
6.000%, | 522 | 108 |
UNITED STATES AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
Federal National Mortgage Association Agency REMIC/CMO: | ||||||||
5.500%, 6–25–23 (H) | $ | 516 | $ | 72 | ||||
5.500%, 8–25–33 (H) | 1,012 | 174 | ||||||
5.500%, 12–25–33 (H) | 502 | 28 | ||||||
5.500%, 4–25–34 (H) | 1,069 | 204 | ||||||
5.500%, 8–25–35 (H) | 1,130 | 194 | ||||||
5.500%, 11–25–36 (H) | 1,960 | 370 | ||||||
Government National Mortgage Association Agency REMIC/CMO: | ||||||||
5.500%, 3–20–32 (H) | 275 | 10 | ||||||
7.000%, 5–20–33 (H) | 2,075 | 512 | ||||||
5.000%, 7–20–33 (H) | 7 | — | * | |||||
5.500%, 11–20–33 (H) | 61 | 2 | ||||||
5.500%, 7–20–35 (H) | 640 | 122 | ||||||
|
| |||||||
2,121 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0% |
| $ | 2,121 | |||||
(Cost: $6,968) | ||||||||
BULLION – 5.7% | Troy Ounces | |||||||
Gold | 1,529 | $ | 1,848,230 | |||||
|
| |||||||
(Cost: $2,067,074) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Certificate Of Deposit – 1.7% |
| |||||||
Banco del Estado de Chile: | ||||||||
0.190%, 10–2–14 | $ | 25,000 | 25,000 | |||||
0.190%, 11–5–14 | 50,000 | 50,000 | ||||||
0.200%, 11–14–14 | 25,000 | 25,001 | ||||||
0.200%, 11–14–14 | 17,300 | 17,300 | ||||||
0.200%, 12–17–14 | 28,000 | 27,999 | ||||||
0.200%, 12–17–14 | 13,000 | 13,000 | ||||||
0.200%, 1–6–15 | 25,000 | 24,999 | ||||||
0.200%, 1–6–15 | 18,500 | 18,499 | ||||||
0.200%, 1–28–15 | 19,000 | 18,999 | ||||||
Bank of America N.A.: | ||||||||
0.180%, 10–20–14 | 25,000 | 25,001 | ||||||
0.200%, 11–12–14 | 15,000 | 15,002 | ||||||
0.200%, 12–16–14 | 5,000 | 5,001 | ||||||
0.200%, 1–22–15 | 2,000 | 2,000 | ||||||
Citibank N.A.: | ||||||||
0.160%, 10–1–14 | 50,000 | 50,000 | ||||||
0.180%, 11–14–14 | 16,000 | 16,002 | ||||||
0.190%, 11–24–14 | 35,750 | 35,755 | ||||||
0.180%, 12–8–14 | 116,500 | 116,511 | ||||||
|
| |||||||
486,069 | ||||||||
|
|
2014 | SEMIANNUAL REPORT | 9 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper – 17.0% |
| |||||||
Air Products and Chemicals, Inc.: | ||||||||
0.100%, 10–15–14 (I) | $ | 49,000 | $ | 48,998 | ||||
0.100%, 10–16–14 (I) | 8,000 | 8,000 | ||||||
0.100%, 10–17–14 (I) | 25,000 | 24,999 | ||||||
0.100%, 10–20–14 (I) | 16,150 | 16,149 | ||||||
0.100%, 11–21–14 (I) | 20,000 | 19,997 | ||||||
American Honda Finance Corp. (GTD by Honda Motor Co.): | ||||||||
0.080%, 10–6–14 (I) | 6,100 | 6,100 | ||||||
0.090%, 10–22–14 (I) | 25,000 | 24,999 | ||||||
0.130%, 11–13–14 (I) | 25,000 | 24,996 | ||||||
0.140%, 11–21–14 (I) | 20,000 | 19,996 | ||||||
0.120%, 12–5–14 (I) | 50,000 | 49,989 | ||||||
Anheuser-Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB): | ||||||||
0.150%, 10–14–14 (I) | 55,592 | 55,589 | ||||||
0.150%, 10–23–14 (I) | 16,000 | 15,998 | ||||||
0.150%, 11–3–14 (I) | 16,815 | 16,813 | ||||||
0.090%, 11–14–14 (I) | 11,000 | 10,999 | ||||||
0.150%, 11–17–14 (I) | 40,000 | 39,992 | ||||||
Army & Air Force Exchange Service: | ||||||||
0.100%, 10–14–14 (I) | 39,000 | 38,998 | ||||||
0.140%, 11–12–14 (I) | 4,828 | 4,827 | ||||||
0.100%, 11–14–14 (I) | 50,000 | 49,994 | ||||||
0.140%, 11–17–14 (I) | 20,000 | 19,996 | ||||||
0.140%, 11–24–14 (I) | 50,000 | 49,989 | ||||||
0.140%, 11–25–14 (I) | 38,000 | 37,992 | ||||||
0.140%, 12–2–14 (I) | 30,000 | 29,993 | ||||||
Baxter International, Inc.: | ||||||||
0.200%, 10–7–14 (I) | 25,000 | 24,999 | ||||||
0.250%, 10–8–14 (I) | 32,800 | 32,798 | ||||||
0.240%, 10–9–14 (I) | 50,000 | 49,997 | ||||||
Becton Dickinson & Co., | ||||||||
0.150%, 10–6–14 (I) | 46,850 | 46,849 | ||||||
Bemis Co., Inc.: | ||||||||
0.230%, 10–1–14 (I) | 6,200 | 6,200 | ||||||
0.240%, 10–6–14 (I) | 2,000 | 2,000 | ||||||
0.240%, 10–8–14 (I) | 7,000 | 7,000 | ||||||
0.240%, 10–10–14 (I) | 23,750 | 23,748 | ||||||
0.230%, 10–14–14 (I) | 10,000 | 9,999 | ||||||
0.230%, 10–15–14 (I) | 11,450 | 11,449 | ||||||
0.250%, 10–16–14 (I) | 15,000 | 14,998 | ||||||
0.250%, 10–21–14 (I) | 7,500 | 7,499 | ||||||
0.250%, 10–22–14 (I) | 10,000 | 9,998 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG): | ||||||||
0.090%, 10–9–14 (I) | 16,000 | 16,000 | ||||||
0.090%, 10–10–14 (I) | 45,000 | 44,999 | ||||||
0.100%, 10–14–14 (I) | 22,600 | 22,599 | ||||||
0.090%, 10–15–14 (I) | 75,000 | 74,997 | ||||||
BorgWarner, Inc.: | ||||||||
0.240%, 10–9–14 (I) | 35,000 | 34,998 | ||||||
0.260%, 10–22–14 (I) | 60,000 | 59,990 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
Campbell Soup Co.: | ||||||||
0.180%, 10–6–14 (I) | $ | 56,700 | $ | 56,698 | ||||
0.270%, 10–9–14 (I) | 14,000 | 13,999 | ||||||
0.280%, 10–22–14 (I) | 5,918 | 5,917 | ||||||
0.180%, 10–27–14 (I) | 13,100 | 13,098 | ||||||
0.260%, 10–28–14 (I) | 8,255 | 8,253 | ||||||
0.180%, 11–20–14 (I) | 11,500 | 11,497 | ||||||
0.170%, 12–3–14 (I) | 8,200 | 8,198 | ||||||
0.170%, 12–10–14 (I) | 17,100 | 17,094 | ||||||
0.180%, 12–22–14 (I) | 16,030 | 16,023 | ||||||
Caterpillar Financial Services Corp. (GTD by Caterpillar, Inc.), | ||||||||
0.140%, 1–5–15 (I) | 40,000 | 39,985 | ||||||
Clorox Co. (The): | ||||||||
0.210%, 10–6–14 (I) | 14,700 | 14,699 | ||||||
0.180%, 10–8–14 (I) | 6,900 | 6,900 | ||||||
Coca-Cola Co. (The): | ||||||||
0.090%, 10–8–14 (I) | 40,000 | 39,999 | ||||||
0.090%, 10–10–14 (I) | 45,000 | 44,999 | ||||||
0.120%, 10–17–14 (I) | 25,000 | 24,999 | ||||||
0.090%, 10–22–14 (I) | 50,000 | 49,997 | ||||||
0.110%, 11–4–14 (I) | 25,000 | 24,997 | ||||||
0.110%, 11–12–14 (I) | 25,000 | 24,997 | ||||||
0.120%, 11–19–14 (I) | 20,000 | 19,997 | ||||||
0.120%, 11–21–14 (I) | 23,000 | 22,996 | ||||||
Corporacion Andina de Fomento: | ||||||||
0.150%, 10–9–14 (I) | 83,000 | 82,997 | ||||||
0.150%, 10–14–14 (I) | 11,250 | 11,250 | ||||||
0.140%, 11–17–14 (I) | 20,000 | 19,996 | ||||||
0.140%, 11–24–14 (I) | 25,000 | 24,995 | ||||||
0.140%, 11–26–14 (I) | 25,000 | 24,994 | ||||||
Credit Suisse Group, New York Branch: | ||||||||
0.190%, 11–24–14 (I) | 100,000 | 99,971 | ||||||
0.230%, 12–22–14 (I) | 200,000 | 199,896 | ||||||
CVS Caremark Corp., | ||||||||
0.200%, 10–1–14 (I) | 168,755 | 168,755 | ||||||
Danaher Corp., | ||||||||
0.090%, 10–9–14 (I) | 89,000 | 88,998 | ||||||
Diageo Capital plc (GTD by Diageo plc): | ||||||||
0.240%, 10–2–14 (I) | 15,000 | 15,000 | ||||||
0.260%, 10–7–14 (I) | 6,900 | 6,900 | ||||||
0.260%, 10–8–14 (I) | 44,895 | 44,892 | ||||||
0.250%, 10–9–14 (I) | 20,000 | 19,999 | ||||||
DTE Electric Co.: | ||||||||
0.190%, 10–6–14 (I) | 15,000 | 15,000 | ||||||
0.190%, 10–20–14 (I) | 5,000 | 4,999 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | ||||||||
0.240%, 10–17–14 (I) | 19,000 | 18,998 | ||||||
E.I. du Pont de Nemours and Co., | ||||||||
0.070%, 10–17–14 (I) | 17,000 | 16,999 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
Ecolab, Inc.: | ||||||||
0.220%, 10–1–14 (I) | $ | 21,000 | $ | 21,000 | ||||
0.230%, 10–6–14 (I) | 22,000 | 21,999 | ||||||
0.270%, 10–14–14 (I) | 5,000 | 4,999 | ||||||
0.280%, 10–16–14 (I) | 17,000 | 16,998 | ||||||
0.250%, 10–31–14 (I) | 862 | 862 | ||||||
0.260%, 11–4–14 (I) | 25,000 | 24,994 | ||||||
0.270%, 11–12–14 (I) | 31,000 | 30,990 | ||||||
0.270%, 11–18–14 (I) | 20,600 | 20,592 | ||||||
0.270%, 11–19–14 (I) | 20,000 | 19,992 | ||||||
0.260%, 11–25–14 (I) | 2,245 | 2,244 | ||||||
Emerson Electric Co.: | ||||||||
0.110%, 10–14–14 (I) | 40,000 | 39,998 | ||||||
0.110%, 10–28–14 (I) | 15,000 | 14,999 | ||||||
0.100%, 11–14–14 (I) | 30,000 | 29,996 | ||||||
0.100%, 11–24–14 (I) | 40,000 | 39,994 | ||||||
0.110%, 12–23–14 (I) | 20,000 | 19,995 | ||||||
Enbridge, Inc.: | ||||||||
0.260%, 10–1–14 (I) | 15,000 | 15,000 | ||||||
0.260%, 10–3–14 (I) | 20,000 | 20,000 | ||||||
0.270%, 10–7–14 (I) | 40,000 | 39,998 | ||||||
0.290%, 10–17–14 (I) | 10,000 | 9,999 | ||||||
0.310%, 10–22–14 (I) | 10,000 | 9,998 | ||||||
0.320%, 11–5–14 (I) | 20,000 | 19,994 | ||||||
0.310%, 11–6–14 (I) | 5,950 | 5,948 | ||||||
Essilor International S.A.: | ||||||||
0.120%, 10–9–14 (I) | 38,000 | 37,999 | ||||||
0.090%, 11–5–14 (I) | 30,000 | 29,997 | ||||||
0.180%, 11–14–14 (I) | 20,000 | 19,996 | ||||||
0.170%, 11–20–14 (I) | 17,000 | 16,996 | ||||||
0.170%, 11–25–14 (I) | 25,000 | 24,993 | ||||||
General Mills, Inc.: | ||||||||
0.190%, 10–2–14 (I) | 25,000 | 25,000 | ||||||
0.170%, 10–6–14 (I) | 10,000 | 10,000 | ||||||
0.210%, 10–8–14 (I) | 30,000 | 29,999 | ||||||
0.170%, 10–14–14 (I) | 14,000 | 13,999 | ||||||
0.210%, 10–16–14 (I) | 20,000 | 19,998 | ||||||
0.200%, 10–20–14 (I) | 18,000 | 17,998 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc): | ||||||||
0.140%, 10–2–14 (I) | 15,000 | 15,000 | ||||||
0.090%, 10–21–14 (I) | 45,500 | 45,498 | ||||||
0.130%, 10–28–14 (I) | 116,850 | 116,839 | ||||||
0.180%, 10–31–14 (I) | 15,000 | 14,998 | ||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.): | ||||||||
0.220%, 10–6–14 (I) | 17,000 | 16,999 | ||||||
0.170%, 10–9–14 (I) | 15,000 | 14,999 | ||||||
0.210%, 10–22–14 (I) | 15,000 | 14,998 | ||||||
0.200%, 11–18–14 (I) | 15,000 | 14,996 | ||||||
Hewlett-Packard Co.: | ||||||||
0.300%, 10–27–14 (I) | 60,000 | 59,986 | ||||||
0.250%, 10–28–14 (I) | 20,000 | 19,996 | ||||||
0.280%, 10–29–14 (I) | 60,000 | 59,986 | ||||||
ICICI Bank Ltd. (GTD by Wells Fargo Bank N.A.): | ||||||||
0.140%, 10–3–14 (I) | 10,000 | 10,000 | ||||||
0.180%, 10–27–14 (I) | 34,350 | 34,346 | ||||||
0.210%, 11–26–14 (I) | 3,100 | 3,099 | ||||||
0.430%, 12–16–14 (I) | 3,650 | 3,647 |
10 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
J.M. Smucker Co. (The): | ||||||||
0.290%, 10–14–14 (I) | $ | 43,000 | $ | 42,995 | ||||
0.260%, 10–20–14 (I) | 25,000 | 24,996 | ||||||
0.260%, 10–28–14 (I) | 50,000 | 49,990 | ||||||
John Deere Canada ULC (GTD by Deere & Co.): | ||||||||
0.070%, 10–3–14 (I) | 38,670 | 38,670 | ||||||
0.080%, 10–20–14 (I) | 43,000 | 42,998 | ||||||
John Deere Financial Ltd. (GTD by John Deere Capital Corp.): | ||||||||
0.100%, 10–2–14 (I) | 20,000 | 20,000 | ||||||
0.080%, 10–8–14 (I) | 5,000 | 5,000 | ||||||
0.090%, 10–14–14 (I) | 25,000 | 24,999 | ||||||
0.090%, 10–17–14 (I) | 15,000 | 14,999 | ||||||
0.100%, 10–24–14 (I) | 20,250 | 20,249 | ||||||
0.090%, 10–27–14 (I) | 9,000 | 8,999 | ||||||
0.080%, 10–28–14 (I) | 25,000 | 24,998 | ||||||
Kellogg Co.: | ||||||||
0.140%, 10–3–14 (I) | 30,000 | 30,000 | ||||||
0.150%, 10–7–14 (I) | 25,000 | 24,999 | ||||||
0.150%, 10–10–14 (I) | 13,000 | 12,999 | ||||||
0.180%, 10–23–14 (I) | 18,500 | 18,498 | ||||||
Kroger Co. (The): | ||||||||
0.220%, 10–14–14 (I) | 48,000 | 47,996 | ||||||
0.230%, 10–24–14 (I) | 35,000 | 34,995 | ||||||
L Air Liquide S.A., | ||||||||
0.180%, 11–28–14 (I) | 40,000 | 39,988 | ||||||
L Oreal USA, Inc.: | ||||||||
0.080%, 10–29–14 (I) | 19,000 | 18,999 | ||||||
0.100%, 11–6–14 (I) | 10,500 | 10,499 | ||||||
McCormick & Co., Inc., | ||||||||
0.240%, 11–24–14 (I) | 4,950 | 4,948 | ||||||
Medtronic, Inc.: | ||||||||
0.090%, 10–15–14 (I) | 30,300 | 30,299 | ||||||
0.100%, 11–13–14 (I) | 10,000 | 9,999 | ||||||
Merck & Co., Inc., | ||||||||
0.080%, 10–6–14 (I) | 75,000 | 74,999 | ||||||
Microsoft Corp.: | ||||||||
0.090%, 10–1–14 (I) | 28,000 | 28,000 | ||||||
0.080%, 10–8–14 (I) | 28,000 | 28,000 | ||||||
0.090%, 10–15–14 (I) | 50,000 | 49,998 | ||||||
0.080%, 10–22–14 (I) | 195,000 | 194,991 | ||||||
Mondelez International, Inc.: | ||||||||
0.200%, 10–16–14 (I) | 11,000 | 10,999 | ||||||
0.230%, 10–20–14 (I) | 15,000 | 14,998 | ||||||
0.200%, 10–21–14 (I) | 23,000 | 22,997 | ||||||
0.210%, 10–24–14 (I) | 30,000 | 29,996 | ||||||
0.270%, 11–21–14 (I) | 13,000 | 12,995 | ||||||
NBCUniversal Enterprise, Inc.: | ||||||||
0.220%, 10–3–14 (I) | 35,000 | 34,999 | ||||||
0.240%, 10–10–14 (I) | 55,000 | 54,996 | ||||||
0.220%, 10–17–14 (I) | 45,000 | 44,995 | ||||||
PACCAR Financial Corp. (GTD by PACCAR, Inc.): | ||||||||
0.090%, 10–8–14 (I) | 20,000 | 20,000 | ||||||
0.090%, 10–9–14 (I) | 32,025 | 32,024 | ||||||
0.080%, 10–23–14 (I) | 14,000 | 13,999 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
PepsiCo, Inc.: | ||||||||
0.080%, 10–14–14 (I) | $ | 25,000 | $ | 24,999 | ||||
0.090%, 10–16–14 (I) | 50,000 | 49,998 | ||||||
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia), | ||||||||
0.190%, 10–31–14 (I) | 10,439 | 10,437 | ||||||
Roche Holdings, Inc.: | ||||||||
0.090%, 10–14–14 (I) | 25,000 | 24,999 | ||||||
0.090%, 10–20–14 (I) | 35,000 | 34,998 | ||||||
Sonoco Products Co., | ||||||||
0.170%, 10–1–14 (I) | 4,755 | 4,755 | ||||||
St. Jude Medical, Inc.: | ||||||||
0.170%, 10–6–14 (I) | 13,300 | 13,300 | ||||||
0.210%, 10–24–14 (I) | 41,750 | 41,744 | ||||||
0.230%, 10–30–14 (I) | 17,000 | 16,997 | ||||||
0.210%, 11–18–14 (I) | 16,000 | 15,995 | ||||||
0.240%, 11–21–14 (I) | 18,500 | 18,494 | ||||||
Stafford County, Staunton Indl Dev Auth (VA) Rev Bonds, Ser 8-A2 (GTD by Bank of America N.A.), | ||||||||
0.100%, 10–15–14 (I) | 2,225 | 2,225 | ||||||
Toronto-Dominion Holdings USA, Inc. (GTD by Toronto Dominion Bank): | ||||||||
0.130%, 11–24–14 (I) | 17,000 | 16,997 | ||||||
0.110%, 12–17–14 (I) | 35,000 | 34,992 | ||||||
Unilever N.V. (GTD by Unilever plc): | ||||||||
0.120%, 10–8–14 (I) | 20,000 | 19,999 | ||||||
0.170%, 11–12–14 (I) | 50,000 | 49,990 | ||||||
Virginia Electric and Power Co.: | ||||||||
0.210%, 10–1–14 (I) | 30,000 | 30,000 | ||||||
0.210%, 10–3–14 (I) | 15,000 | 15,000 | ||||||
0.210%, 10–8–14 (I) | 44,250 | 44,248 | ||||||
VW Credit, Inc. (GTD by Volkswagen AG): | ||||||||
0.250%, 10–7–14 (I) | 25,000 | 24,999 | ||||||
0.270%, 10–14–14 (I) | 20,325 | 20,323 | ||||||
0.250%, 10–21–14 (I) | 59,320 | 59,311 | ||||||
0.250%, 10–22–14 (I) | 80,750 | 80,737 | ||||||
Wisconsin Electric Power Co.: | ||||||||
0.160%, 10–1–14 (I) | 5,650 | 5,650 | ||||||
0.110%, 10–3–14 (I) | 45,000 | 45,000 | ||||||
0.170%, 10–6–14 (I) | 18,500 | 18,499 | ||||||
Wisconsin Gas LLC: | ||||||||
0.110%, 10–2–14 (I) | 6,000 | 6,000 | ||||||
0.110%, 10–3–14 (I) | 37,000 | 37,000 | ||||||
0.110%, 10–6–14 (I) | 12,000 | 12,000 | ||||||
|
| |||||||
5,621,236 | ||||||||
|
| |||||||
Master Note – 0.0% |
| |||||||
Toyota Motor Credit Corp., | ||||||||
0.102%, 10–7–14 (J) | 1,846 | 1,846 | ||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable – 1.8% |
| |||||||
CA GO Bonds, | ||||||||
0.030%, 10–7–14 (J) | $ | 30,000 | $ | 30,000 | ||||
CA GO Bonds, | ||||||||
0.060%, 10–7–14 (J) | 5,000 | 5,000 | ||||||
CA GO Notes, | ||||||||
0.100%, 10–6–14 | 10,000 | 10,000 | ||||||
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by Bank of America N.A.), | ||||||||
0.030%, 10–1–14 (J) | 18,400 | 18,400 | ||||||
CA Muni Fin Auth, Recovery Zone Fac Bonds (Chevron USA, Inc. Proj), Ser 2010C (GTD by Chevron Corp.), | ||||||||
0.020%, 10–1–14 (J) | 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.), | ||||||||
0.010%, 10–1–14 (J) | 24,701 | 24,701 | ||||||
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by U.S. Government), | ||||||||
0.060%, 10–7–14 (J) | 1,443 | 1,443 | ||||||
City of Chicago, GO Var Rate Demand Bonds, Ser 2003B-1 (GTD by JPMorgan Chase & Co.), | ||||||||
0.050%, 10–7–14 (J) | 5,000 | 5,000 | ||||||
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.), | ||||||||
0.030%, 10–7–14 (J) | 26,375 | 26,375 | ||||||
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 7,300 | 7,300 | ||||||
Dev Auth of Monroe Cty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.), | ||||||||
0.040%, 10–1–14 (J) | 1,465 | 1,465 |
2014 | SEMIANNUAL REPORT | 11 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable (Continued) |
| |||||||
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | $ | 9,200 | $ | 9,200 | ||||
Greenville Hosp Sys Board of Trustees, Hosp Rfdg Rev Bonds, Ser 2008B (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 6,000 | 6,000 | ||||||
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), | ||||||||
0.040%, 10–7–14 (J) | 32,300 | 32,300 | ||||||
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2008B (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 1,905 | 1,905 | ||||||
IL Fin Auth, Adj Rate Demand Rev Bonds (Chicago Symphony Orchestra), Ser 2008 (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 24,965 | 24,965 | ||||||
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser 2009 (GTD by JPMorgan Chase Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 855 | 855 | ||||||
IL Fin Auth, Var Rate Demand Rev Bonds (The Univ of Chicago Med Ctr), Ser D (GTD by JPMorgan Chase & Co.), | ||||||||
0.030%, 10–1–14 (J) | 9,000 | 9,000 | ||||||
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, | ||||||||
0.030%, 10–1–14 (J) | 28,600 | 28,600 | ||||||
LA Pub Fac Auth, Var Rate Rev Rfdg Bonds (CHRISTUS Hlth), Ser 2009B-1 (GTD by Bank of New York (The)), | ||||||||
0.040%, 10–7–14 (J) | 6,605 | 6,605 |
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.), | ||||||||
0.040%, 10–7–14 (J) | $ | 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)), | ||||||||
0.050%, 10–1–14 (J) | 23,877 | 23,877 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007B (GTD by Chevron Corp.), | ||||||||
0.030%, 10–1–14 (J) | 43,923 | 43,923 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.), | ||||||||
0.030%, 10–1–14 (J) | 39,175 | 39,175 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2010J (GTD by Chevron Corp.), | ||||||||
0.040%, 10–1–14 (J) | 26,838 | 26,838 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron USA, Inc. Proj), Ser E (GTD by Chevron Corp.), | ||||||||
0.040%, 10–1–14 (J) | 39,894 | 39,894 | ||||||
NY Hsng Fin Agy, Clinton Park Phase II Hsng Rev Bonds, Ser 2011 A-1 (GTD by Wells Fargo Bank N.A.), | ||||||||
0.050%, 10–7–14 (J) | 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%, 10–7–14 (J) | 12,200 | 12,200 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable (Continued) |
| |||||||
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A, | ||||||||
0.050%, 10–7–14 (J) | $ | 7,000 | $ | 7,000 | ||||
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2013A, | ||||||||
0.050%, 10–7–14 (J) | 10,000 | 10,000 | ||||||
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2014A, | ||||||||
0.040%, 10–7–14 (J) | 7,250 | 7,250 | ||||||
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.), | ||||||||
0.050%, 10–7–14 (J) | 16,500 | 16,500 | ||||||
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-2 (GTD by Bank of America N.A.), | ||||||||
0.050%, 10–7–14 (J) | 18,000 | 18,000 | ||||||
NYC GO Bonds, Fiscal 2008 Series L-4, | ||||||||
0.030%, 10–1–14 (J) | 13,000 | 13,000 | ||||||
OR Hsng and Cmnty Svc Dept, Hsng Dev Rev Bonds (Pearl Fam Hsng Proj), Ser 2009B-1 (GTD by U.S. Bank N.A.), | ||||||||
0.040%, 10–7–14 (J) | 10,800 | 10,800 | ||||||
Santa Clara Cnty Fin Auth, Var Rate Rev Bonds, El Camino Hosp, Ser 2009A (GTD by Wells Fargo Bank N.A.), | ||||||||
0.050%, 10–7–14 (J) | 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.), | ||||||||
0.080%, 10–7–14 (J) | 1,905 | 1,905 | ||||||
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj, Ser 2011G (GTD by Bank of Nova Scotia), | ||||||||
0.050%, 10–7–14 (J) | 6,000 | 6,000 |
12 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable (Continued) |
| |||||||
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron USA, Inc. Proj), Ser 1992 (GTD by Chevron Corp.), | ||||||||
0.040%, 10–1–14 (J) | $ | 8,767 | $ | 8,767 | ||||
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004, | ||||||||
0.040%, 10–1–14 (J) | 3,805 | 3,805 | ||||||
WI Hlth and Edu Fac Auth, Wheaton Franciscan Svc, Inc., Sys Var Rate Rev Bonds, Ser 2003B (GTD by U.S. Bank N.A.), | ||||||||
0.050%, 10–7–14 (J) | 4,500 | 4,500 | ||||||
|
| |||||||
603,369 | ||||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Notes – 0.0% |
| |||||||
Bank of Nova Scotia (The), | ||||||||
3.400%, 1–22–15 | $ | 1,200 | $ | 1,211 | ||||
|
| |||||||
United States Government Agency |
| |||||||
Overseas Private Investment Corp. | ||||||||
0.110%, 10–1–14 (J) | 25,000 | 25,000 | ||||||
0.110%, 10–1–14 (J) | 20,000 | 20,000 | ||||||
0.110%, 10–1–14 (J) | 10,757 | 10,757 | ||||||
0.110%, 10–1–14 (J) | 7,372 | 7,372 | ||||||
0.110%, 10–1–14 (J) | 3,000 | 3,000 | ||||||
0.110%, 10–3–14 (J) | 4,900 | 4,900 | ||||||
0.110%, 10–7–14 (J) | 35,000 | 35,000 | ||||||
0.110%, 10–7–14 (J) | 18,500 | 18,500 | ||||||
0.110%, 10–7–14 (J) | 17,433 | 17,433 | ||||||
0.110%, 10–7–14 (J) | 14,825 | 14,825 | ||||||
0.110%, 10–7–14 (J) | 12,197 | 12,197 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
United States Government Agency |
| |||||||
0.110%, 10–7–14 (J) | $ | 5,400 | $ | 5,400 | ||||
0.110%, 10–7–14 (J) | 5,000 | 5,000 | ||||||
0.110%, 10–7–14 (J) | 4,200 | 4,200 | ||||||
0.110%, 10–7–14 (J) | 4,000 | 4,000 | ||||||
0.110%, 10–7–14 (J) | 3,000 | 3,000 | ||||||
|
| |||||||
190,584 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 21.1% |
| $ | 6,904,315 | |||||
(Cost: $6,904,310) |
| |||||||
TOTAL INVESTMENT SECURITIES – 101.2% |
| $ | 33,080,161 | |||||
(Cost: $30,790,032) |
| |||||||
LIABILITIES, NET OF CASH AND OTHER |
| (400,351 | ) | |||||
NET ASSETS – 100.0% |
| $ | 32,679,810 |
Notes to Consolidated Schedule of Investments
* | Not shown due to rounding. |
(A) | 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. |
(B) | Listed on an exchange outside the United States. |
(C) | No dividends were paid during the preceding 12 months. |
(D) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
(E) | Restricted securities. At September 30, 2014, the Fund owned the following restricted securities: |
Security | Acquisition Date(s) | Shares | Cost | Value | ||||||||||
Delta Topco Ltd. | 1–23–12 to 5–1–12 | 718,555 | $ | 486,355 | $ | 592,129 | ||||||||
Legend Pictures LLC | 12–18–12 | 190 | 352,761 | 355,766 | ||||||||||
Media Group Holdings LLC | 4–23–13 | 381 | 818,616 | 818,616 | ||||||||||
Principal | ||||||||||||||
Delta Topco Ltd., 10.000%, 11-24-60 | 1–23–12 to 6–18–12 | $602,589 | 608,798 | 602,590 | ||||||||||
|
| |||||||||||||
$ | 2,266,530 | $ | 2,369,101 | |||||||||||
|
|
The total value of these securities represented 7.2% of net assets at September 30, 2014.
(F) | 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, 2014, the total value of these securities amounted to $135,847 or 0.4% of net assets. |
(G) | Payment-in-kind bonds. |
(H) | Interest-only security. Amount shown as principal represents notional amount for computation of interest. |
(I) | Rate shown is the yield to maturity at September 30, 2014. |
(J) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
(K) | Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund and consolidated as described in note 6 of the notes to financial statements. |
2014 | SEMIANNUAL REPORT | 13 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | Japanese Yen | Citibank N.A. | 1,515,743 | 10–10–14 | $ | 760 | $ | — | ||||||||||||
Sell | Japanese Yen | Morgan Stanley International | 37,481,975 | 10–10–14 | 16,265 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 17,025 | $ | — | |||||||||||||||||
|
|
The following written options were outstanding at September 30, 2014 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Expiration Month | Exercise Price | Premium Received | Value | |||||||||||||||||||
S&P 500 Index | N/A | Put | 7,896 | October 2014 | $ | 1,905.00 | $ | 1,990 | $ | (868 | ) | |||||||||||||||
N/A | Put | 7,894 | October 2014 | 1,850.00 | 3,292 | (4,342 | ) | |||||||||||||||||||
Bank of America N.A. | Put | 3,177 | December 2014 | 1,850.00 | 9,309 | (7,371 | ) | |||||||||||||||||||
N/A | Put | 9,528 | December 2014 | 1,850.00 | 34,225 | (22,105 | ) | |||||||||||||||||||
Bank of America N.A. | Put | 3,177 | January 2015 | 1,825.00 | 9,753 | (8,482 | ) | |||||||||||||||||||
JPMorgan Chase Bank N.A. | Put | 3,176 | March 2015 | 1,800.00 | 13,156 | (12,323 | ) | |||||||||||||||||||
Texas Instruments, Inc. | Deutsche Bank AG | Put | 6,205 | October 2014 | 43.00 | 273 | (34 | ) | ||||||||||||||||||
|
| |||||||||||||||||||||||||
$ | 71,998 | $ | (55,525 | ) | ||||||||||||||||||||||
|
|
The following total return swap agreements were outstanding at September 30, 2014:
Counterparty | Number of Shares | Underlying Security | Termination Date | Notional Amount | Financing Fee# | Unrealized Appreciation (Depreciation) | ||||||||||||||
Societe Generale Bank | 3,473,400 | CBS Corp., Class B | 05–22–15 | $ | 194,198 | USD LIBOR + 0.340 | % | $ | (8,390 | ) | ||||||||||
JPMorgan Chase Bank N.A. | 5,145,645 | CBS Corp., Class B | 05–26–15 | 281,055 | USD LIBOR + 0.340 | % | (5,788 | ) | ||||||||||||
Deutsche Bank AG | 1,116,243 | ConocoPhillips | 05–22–15 | 89,925 | USD LIBOR + 0.980 | % | (4,534 | ) | ||||||||||||
Barclays Bank plc | 5,158,457 | Phillips 66 | 05–25–15 | 421,652 | USD LIBOR + 0.400 | % | (2,252 | ) | ||||||||||||
UBS AG | 2,403,511 | Wynn Resorts, Ltd. | 05–22–15 | 445,323 | USD LIBOR + 1.050 | % | 4,214 | |||||||||||||
|
| |||||||||||||||||||
$ | (16,750 | ) | ||||||||||||||||||
|
|
# | 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. |
14 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | 4,016,855 | $ | — | $ | 1,766,511 | ||||||
Consumer Staples | 1,086,066 | — | — | |||||||||
Energy | 2,014,873 | — | — | |||||||||
Financials | 3,231,585 | — | — | |||||||||
Health Care | 1,295,011 | — | — | |||||||||
Industrials | 2,319,018 | — | — | |||||||||
Information Technology | 6,169,546 | — | — | |||||||||
Materials | 1,310,989 | — | — | |||||||||
Total Common Stocks | $ | 21,443,943 | $ | — | $ | 1,766,511 | ||||||
Purchased Options | 13,918 | 13,167 | — | |||||||||
Corporate Debt Securities | — | 485,366 | 602,590 | |||||||||
United States Government Agency Obligations | — | 2,121 | — | |||||||||
Bullion | 1,848,230 | — | — | |||||||||
Short-Term Securities | — | 6,904,315 | — | |||||||||
Total | $ | 23,306,091 | $ | 7,404,969 | $ | 2,369,101 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 17,025 | $ | — | ||||||
Swap Agreements | $ | — | $ | 4,214 | $ | — | ||||||
Liabilities | ||||||||||||
Swap Agreements | $ | — | $ | 20,964 | $ | — | ||||||
Written Options | $ | 27,315 | $ | 28,210 | $ | — |
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 | ||||||||||
Beginning Balance 4-1-14 | $ | 2,025,812 | $ | 954,289 | $ | 194,757 | ||||||
Net realized gain (loss) | — | — | 2,095 | |||||||||
Net change in unrealized appreciation (depreciation) | (259,301 | ) | 1 | (9,485 | ) | |||||||
Purchases | — | — | — | |||||||||
Sales | — | — | (187,464 | ) | ||||||||
Amortization/Accretion of premium/discount | — | — | 97 | |||||||||
Transfers into Level 3 during the period | — | — | — | |||||||||
Transfers out of Level 3 during the period | — | (351,700 | ) | — | ||||||||
Ending Balance 9-30-14 | $ | 1,766,511 | $ | 602,590 | $ | — | ||||||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | (259,301 | ) | $ | 1 | $ | — |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | Input Value(s) | |||||||||||||
Assets | ||||||||||||||||
Common Stocks | $ | 1,766,511 | Discounted cash flows model | Long-term growth rate | 2.5 | % | ||||||||||
Weighted average cost of capital | 8.8 to 9.5 | % | ||||||||||||||
Illiquidity discount | 9.5 to 10 | % | ||||||||||||||
Corporate Debt Securities | 602,590 | Discounted cash flows model | Long-term growth rate | 2.5 | % | |||||||||||
Weighted average cost of capital | 8.8 | % | ||||||||||||||
Illiquidity discount | 10 | % |
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.
2014 | SEMIANNUAL REPORT | 15 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Asset Strategy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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 | 54.2% | |||
Hong Kong | 7.0% | |||
United Kingdom | 6.8% |
China | 2.4% | |||
Japan | 1.2% | |||
Taiwan | 1.0% | |||
Other Countries | 1.7% | |||
Other+ | 25.7% |
+ | Includes gold bullion, purchased options, cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
16 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 69.2% | |||
Consumer Discretionary | 13.3% | |||
Industrials | 11.2% | |||
Information Technology | 10.8% | |||
Financials | 9.6% | |||
Energy | 8.8% | |||
Consumer Staples | 7.0% | |||
Health Care | 4.9% | |||
Materials | 3.6% | |||
Bonds | 25.2% | |||
Corporate Debt Securities | 23.2% | |||
United States Government and Government Agency Obligations | 2.0% | |||
Cash and Cash Equivalents | 5.6% |
Lipper Rankings
Category: Lipper Mixed-Asset Target Allocation Growth Funds | Rank | Percentile | ||
1 Year | 233/567 | 42 | ||
3 Year | 144/507 | 29 | ||
5 Year | 41/472 | 9 | ||
10 Year | 17/317 | 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 | |||
PNC Financial Services Group, Inc. (The) | Financials | |||
Union Pacific Corp. | Industrials | |||
Limited Brands, Inc. | Consumer Discretionary | |||
JPMorgan Chase & Co. | Financials | |||
Apple, Inc. | Information Technology | |||
Boeing Co. (The) | Industrials | |||
Citigroup, Inc. | Financials | |||
Southwest Airlines Co. | Industrials | |||
Cummins, Inc. | Industrials | |||
Applied Materials, Inc. | Information Technology |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 17 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Balanced Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Aerospace & Defense – 3.5% |
| |||||||
Boeing Co. (The) | 266 | $ | 33,832 | |||||
Lockheed Martin Corp. | 47 | 8,645 | ||||||
Precision Castparts Corp. | 125 | 29,563 | ||||||
|
| |||||||
72,040 | ||||||||
|
| |||||||
Airlines – 1.6% |
| |||||||
Southwest Airlines Co. | 960 | 32,433 | ||||||
|
| |||||||
Apparel Retail – 1.9% |
| |||||||
Limited Brands, Inc. | 577 | 38,654 | ||||||
|
| |||||||
Application Software – 1.4% |
| |||||||
Autodesk, Inc. (A) | 517 | 28,470 | ||||||
|
| |||||||
Asset Management & Custody Banks – 1.4% |
| |||||||
Northern Trust Corp. | 429 | 29,198 | ||||||
|
| |||||||
Brewers – 1.4% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 264 | 29,231 | ||||||
|
| |||||||
Broadcasting – 1.3% |
| |||||||
CBS Corp., Class B | 427 | 22,830 | ||||||
CBS Outdoor Americas, Inc. | 145 | 4,349 | ||||||
|
| |||||||
27,179 | ||||||||
|
| |||||||
Cable & Satellite – 2.2% |
| |||||||
Comcast Corp., Class A | 529 | 28,450 | ||||||
Time Warner Cable, Inc. | 121 | 17,319 | ||||||
|
| |||||||
45,769 | ||||||||
|
| |||||||
Casinos & Gaming – 0.7% |
| |||||||
Las Vegas Sands, Inc. | 222 | 13,780 | ||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 1.5% |
| |||||||
Cummins, Inc. | 245 | 32,269 | ||||||
|
| |||||||
Consumer Finance – 1.4% |
| |||||||
American Express Co. | 331 | 28,980 | ||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Alliance Data Systems Corp. (A) | 119 | 29,494 | ||||||
FleetCor Technologies, Inc. (A) | 168 | 23,905 | ||||||
|
| |||||||
53,399 | ||||||||
|
| |||||||
Distillers & Vintners – 2.1% |
| |||||||
Brown-Forman Corp., Class B | 228 | 20,581 | ||||||
Constellation Brands, Inc. (A) | 273 | 23,769 | ||||||
|
| |||||||
44,350 | ||||||||
|
| |||||||
Diversified Chemicals – 2.8% |
| |||||||
Dow Chemical Co. (The) | 583 | 30,593 | ||||||
PPG Industries, Inc. | 143 | 28,075 | ||||||
|
| |||||||
58,668 | ||||||||
|
| |||||||
Electrical Components & Equipment – 1.4% |
| |||||||
Rockwell Automation, Inc. | 261 | 28,635 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Home Improvement Retail – 1.4% |
| |||||||
Home Depot, Inc. (The) | 328 | $ | 30,091 | |||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.8% |
| |||||||
Hyatt Hotels Corp., Class A (A) | 288 | 17,454 | ||||||
|
| |||||||
Household Products – 1.4% |
| |||||||
Colgate-Palmolive Co. | 435 | 28,384 | ||||||
|
| |||||||
Industrial Conglomerates – 1.3% |
| |||||||
3M Co. | 198 | 28,024 | ||||||
|
| |||||||
Industrial Gases – 0.8% |
| |||||||
Praxair, Inc. | 124 | 15,970 | ||||||
|
| |||||||
Internet Retail – 1.3% |
| |||||||
Amazon.com, Inc. (A) | 85 | 27,440 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.3% |
| |||||||
Cognizant Technology Solutions Corp., Class A (A) | 623 | 27,874 | ||||||
|
| |||||||
Managed Health Care – 1.1% |
| |||||||
UnitedHealth Group, Inc. | 258 | 22,278 | ||||||
|
| |||||||
Motorcycle Manufacturers – 1.1% |
| |||||||
Harley-Davidson, Inc. | 408 | 23,769 | ||||||
|
| |||||||
Movies & Entertainment – 1.5% |
| |||||||
Twenty-First Century Fox, Inc. | 911 | 30,332 | ||||||
|
| |||||||
Multi-Line Insurance – 1.4% |
| |||||||
American International Group, Inc. | 547 | 29,522 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 2.8% |
| |||||||
National Oilwell Varco, Inc. | 369 | 28,066 | ||||||
Schlumberger Ltd. | 299 | 30,374 | ||||||
|
| |||||||
58,440 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 2.7% |
| |||||||
ConocoPhillips | 384 | 29,407 | ||||||
Noble Energy, Inc. | 388 | 26,503 | ||||||
|
| |||||||
55,910 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 1.4% |
| |||||||
Phillips 66 | 350 | 28,482 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 1.9% |
| |||||||
Plains GP Holdings L.P., Class A | 487 | 14,920 | ||||||
Regency Energy Partners L.P. | 786 | 25,650 | ||||||
|
| |||||||
40,570 | ||||||||
|
| |||||||
Other Diversified Financial Services – 3.4% |
| |||||||
Citigroup, Inc. | 634 | 32,854 | ||||||
JPMorgan Chase & Co. | 639 | 38,506 | ||||||
|
| |||||||
71,360 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Packaged Foods & Meats – 1.2% |
| |||||||
Mead Johnson Nutrition Co. | 264 | $ | 25,373 | |||||
|
| |||||||
Personal Products – 0.9% |
| |||||||
Estee Lauder Co., Inc. (The), Class A | 239 | 17,888 | ||||||
|
| |||||||
Pharmaceuticals – 3.8% |
| |||||||
GlaxoSmithKline plc ADR | 489 | 22,461 | ||||||
Johnson & Johnson | 280 | 29,792 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 499 | 26,805 | ||||||
|
| |||||||
79,058 | ||||||||
|
| |||||||
Railroads – 1.9% |
| |||||||
Union Pacific Corp. | 361 | 39,161 | ||||||
|
| |||||||
Regional Banks – 2.0% |
| |||||||
PNC Financial Services Group, Inc. (The) | 487 | 41,669 | ||||||
|
| |||||||
Semiconductor Equipment – 1.5% |
| |||||||
Applied Materials, Inc. | 1,476 | 31,896 | ||||||
|
| |||||||
Semiconductors – 2.3% |
| |||||||
Broadcom Corp., Class A | 179 | 7,227 | ||||||
Microchip Technology, Inc. | 549 | 25,938 | ||||||
Texas Instruments, Inc. | 328 | 15,657 | ||||||
|
| |||||||
48,822 | ||||||||
|
| |||||||
Specialty Stores – 1.1% |
| |||||||
Ulta Salon, Cosmetics & Fragrance, Inc. (A) | 186 | 21,932 | ||||||
|
| |||||||
Technology Hardware, Storage & |
| |||||||
Apple, Inc. | 344 | 34,672 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 1,439,426 | |||||
(Cost: $1,161,445) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Aerospace & Defense – 0.6% |
| |||||||
General Dynamics Corp., 1.000%, 11-15-17 | $ | 1,500 | 1,483 | |||||
Northrop Grumman Corp., 1.750%, 6-1-18 | 2,060 | 2,042 | ||||||
TransDigm Group, Inc., | 8,081 | 8,626 | ||||||
|
| |||||||
12,151 | ||||||||
|
|
18 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Balanced Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Apparel Retail – 0.2% |
| |||||||
Limited Brands, Inc.: | ||||||||
6.900%, 7–15–17 | $ | 750 | $ | 830 | ||||
6.625%, 4–1–21 | 2,915 | 3,213 | ||||||
|
| |||||||
4,043 | ||||||||
|
| |||||||
Asset Management & Custody |
| |||||||
Ares Capital Corp., | 6,500 | 6,865 | ||||||
|
| |||||||
Auto Parts & Equipment – 0.0% |
| |||||||
Delphi Corp., | 849 | 908 | ||||||
|
| |||||||
Automobile Manufacturers – 0.6% |
| |||||||
Ford Motor Co., Convertible, | 1,000 | 1,714 | ||||||
Toyota Motor Credit Corp., 2.000%, | 3,225 | 3,230 | ||||||
Volkswagen Group of America, Inc., | 6,250 | 6,200 | ||||||
|
| |||||||
11,144 | ||||||||
|
| |||||||
Biotechnology – 0.3% |
| |||||||
Amgen, Inc., | 6,000 | 5,938 | ||||||
|
| |||||||
Brewers – 0.3% |
| |||||||
Anheuser-Busch InBev Worldwide, Inc., | 1,000 | 999 | ||||||
Heineken N.V., | 2,000 | 1,987 | ||||||
SABMiller Holdings, Inc., | 2,700 | 2,695 | ||||||
|
| |||||||
5,681 | ||||||||
|
| |||||||
Broadcasting – 0.0% |
| |||||||
Discovery Communications LLC, | 900 | 894 | ||||||
|
| |||||||
Cable & Satellite – 0.0% |
| |||||||
Pearson Funding Five plc, | 900 | 861 | ||||||
|
| |||||||
Consumer Finance – 1.6% |
| |||||||
American Express Credit Corp., | 1,750 | 1,760 | ||||||
American Honda Finance Corp., | 1,650 | 1,658 | ||||||
Capital One Bank USA N.A.: | ||||||||
2.150%, 11–21–18 | 3,150 | 3,139 | ||||||
2.250%, 2–13–19 | 4,000 | 3,965 | ||||||
Capital One N.A., | 3,250 | 3,217 | ||||||
Charles Schwab Corp. (The), | 1,000 | 1,011 | ||||||
Discover Bank, | 3,100 | 3,086 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Consumer Finance (Continued) |
| |||||||
General Motors Financial Co., Inc., | $ | 1,086 | $ | 1,094 | ||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.), | 2,650 | 2,670 | ||||||
Hyundai Capital America, | 1,550 | 1,588 | ||||||
IntercontinentalExchange Group, Inc., | 1,700 | 1,726 | ||||||
SLM Corp., | 3,000 | 3,000 | ||||||
Total System Services, Inc., | 5,538 | 5,501 | ||||||
|
| |||||||
33,415 | ||||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Fidelity National Financial, Inc., | 900 | 1,001 | ||||||
|
| |||||||
Department Stores – 0.1% |
| |||||||
Macy’s Retail Holdings, Inc., | 1,000 | 1,042 | ||||||
|
| |||||||
Distillers & Vintners – 0.6% |
| |||||||
Beam, Inc.: | ||||||||
1.875%, 5–15–17 | 800 | 804 | ||||||
1.750%, 6–15–18 | 1,000 | 983 | ||||||
Brown-Forman Corp., | 3,000 | 2,926 | ||||||
Constellation Brands, Inc., | 7,944 | 7,796 | ||||||
|
| |||||||
12,509 | ||||||||
|
| |||||||
Distributors – 0.0% |
| |||||||
LKQ Corp., | 680 | 658 | ||||||
|
| |||||||
Diversified Banks – 5.0% |
| |||||||
ABN AMRO Bank N.V., 2.500%, 10–30–18 (B) | 6,200 | 6,261 | ||||||
Banco Hipotecario Nacional: | ||||||||
7.916%, 7–25–09 (B)(C) | 7 | — | ||||||
8.000%, 3–31–11 (B)(C) | 1 | — | ||||||
Bank of America Corp., 2.000%, 1–11–18 | 2,500 | 2,490 | ||||||
Bank of New York Mellon Corp. (The), | 6,000 | 5,970 | ||||||
Bank of Nova Scotia (The): | ||||||||
1.450%, 4–25–18 | 2,500 | 2,465 | ||||||
2.050%, 10–30–18 | 5,000 | 4,987 | ||||||
Barclays Bank plc, | 2,600 | 2,604 | ||||||
BNP Paribas S.A.: | ||||||||
2.450%, 3–17–19 | 6,500 | 6,523 | ||||||
5.186%, 6–29–49 (B) | 4,000 | 4,040 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Banks (Continued) |
| |||||||
Commonwealth Bank of Australia, | $ | 4,750 | $ | 4,747 | ||||
DBS Group Holdings Ltd., | 8,750 | 8,662 | ||||||
HSBC USA, Inc., | 1,850 | 1,844 | ||||||
ING Bank N.V., | 5,400 | 5,367 | ||||||
Lloyds Bank plc, | 2,650 | 2,630 | ||||||
Lloyds Bank plc (GTD by Lloyds Banking Group plc), | 2,000 | 2,005 | ||||||
Mizuho Bank Ltd., | 5,200 | 5,199 | ||||||
National Australia Bank Ltd., | 2,750 | 2,787 | ||||||
Nordea Bank AB, | 4,500 | 4,452 | ||||||
Skandinaviska Enskilda Banken AB, | 4,000 | 4,000 | ||||||
Societe Generale S.A., | 11,000 | 11,605 | ||||||
Swedbank AB (publ), | 5,000 | 4,980 | ||||||
Wells Fargo & Co.: | ||||||||
1.500%, 1–16–18 | 1,000 | 994 | ||||||
2.150%, 1–15–19 | 2,000 | 1,993 | ||||||
Westpac Banking Corp., | 5,000 | 5,051 | ||||||
|
| |||||||
101,656 | ||||||||
|
| |||||||
Diversified Metals & Mining – 0.3% |
| |||||||
Anglo American plc, | 2,200 | 2,208 | ||||||
BHP Billiton Finance (USA) Ltd. (GTD by BHP Billiton plc and BHP Billiton Ltd.), | 1,200 | 1,206 | ||||||
Freeport–McMoRan Copper & Gold, Inc., | 450 | 451 | ||||||
Glencore Funding LLC, | 3,000 | 3,002 | ||||||
Teck Resources, | 1,700 | 1,688 | ||||||
|
| |||||||
8,555 | ||||||||
|
| |||||||
Electric Utilities – 0.4% |
| |||||||
Electricite de France S.A., | 4,000 | 3,989 | ||||||
PPL Energy Supply LLC, | 2,800 | 2,653 | ||||||
Southern Co. (The), | 2,800 | 2,849 | ||||||
|
| |||||||
9,491 | ||||||||
|
|
2014 | SEMIANNUAL REPORT | 19 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Balanced Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Environmental & Facilities Services – 0.3% |
| |||||||
Ecolab, Inc., | $ | 5,800 | $ | 5,756 | ||||
|
| |||||||
Fertilizers & Agricultural Chemicals – 0.1% |
| |||||||
Monsanto Co., | 2,100 | 2,089 | ||||||
|
| |||||||
Food Distributors – 0.4% |
| |||||||
Campbell Soup Co., | 2,400 | 2,261 | ||||||
ConAgra Foods, Inc., | 3,190 | 3,172 | ||||||
General Mills, Inc., | 500 | 501 | ||||||
Wm. Wrigley Jr. Co.: | ||||||||
2.000%, 10–20–17 (B) | 1,000 | 1,009 | ||||||
2.400%, 10–21–18 (B) | 1,500 | 1,511 | ||||||
|
| |||||||
8,454 | ||||||||
|
| |||||||
Food Retail – 0.1% |
| |||||||
Kroger Co. (The), | 3,000 | 3,003 | ||||||
|
| |||||||
General Merchandise Stores – 0.1% |
| |||||||
Dollar General Corp.: | ||||||||
4.125%, 7–15–17 | 450 | 470 | ||||||
1.875%, 4–15–18 | 1,000 | 963 | ||||||
|
| |||||||
1,433 | ||||||||
|
| |||||||
Health Care Supplies – 0.6% |
| |||||||
C.R. Bard, Inc., | 4,385 | 4,333 | ||||||
Express Scripts Holding Co., | 6,000 | 5,917 | ||||||
Laboratory Corp. of America Holdings, | 1,650 | 1,658 | ||||||
Mallinckrodt International Finance S.A., | 500 | 484 | ||||||
|
| |||||||
12,392 | ||||||||
|
| |||||||
Homebuilding – 0.1% |
| |||||||
Toll Brothers Finance Corp., | 1,500 | 1,429 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.0% |
| |||||||
Hyatt Hotels Corp., | 500 | 487 | ||||||
|
| |||||||
Household Products – 0.0% |
| |||||||
Church & Dwight Co., Inc., | 500 | 486 | ||||||
|
| |||||||
Industrial Gases – 0.4% |
| |||||||
Airgas, Inc., | 1,250 | 1,238 | ||||||
Praxair, Inc.: | ||||||||
1.250%, 11–7–18 | 5,600 | 5,464 | ||||||
3.000%, 9–1–21 | 1,000 | 1,024 | ||||||
|
| |||||||
7,726 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Industrial Machinery – 0.8% |
| |||||||
Dynacast International LLC and Dynacast Finance, Inc., | $ | 6,284 | $ | 6,724 | ||||
Eaton Corp., | 10,500 | 10,457 | ||||||
|
| |||||||
17,181 | ||||||||
|
| |||||||
Integrated Telecommunication |
| |||||||
AT&T, Inc., | 13,000 | 13,043 | ||||||
Verizon Communications, Inc., | 2,468 | 2,438 | ||||||
|
| |||||||
15,481 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 0.4% |
| |||||||
Goldman Sachs Group, Inc. (The): | ||||||||
2.900%, 7–19–18 | 1,350 | 1,383 | ||||||
2.625%, 1–31–19 | 4,000 | 3,991 | ||||||
Morgan Stanley, | 2,500 | 2,500 | ||||||
|
| |||||||
7,874 | ||||||||
|
| |||||||
IT Consulting & Other Services – 0.4% |
| |||||||
iGATE Corp., | 8,081 | 7,839 | ||||||
|
| |||||||
Leisure Products – 0.0% |
| |||||||
Mattel, Inc., | 750 | 770 | ||||||
|
| |||||||
Life & Health Insurance – 0.1% |
| |||||||
AIA Group Ltd., | 2,600 | 2,577 | ||||||
|
| |||||||
Managed Health Care – 0.5% |
| |||||||
Aetna, Inc., | 2,600 | 2,576 | ||||||
WellPoint, Inc., | 7,200 | 7,192 | ||||||
|
| |||||||
9,768 | ||||||||
|
| |||||||
Metal & Glass Containers – 0.1% |
| |||||||
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC, | 1,281 | 1,332 | ||||||
|
| |||||||
Movies & Entertainment – 0.3% |
| |||||||
News American, Inc., | 2,000 | 1,948 | ||||||
Viacom, Inc.: | ||||||||
2.500%, 9–1–18 | 1,100 | 1,114 | ||||||
2.200%, 4–1–19 | 2,000 | 2,001 | ||||||
|
| |||||||
5,063 | ||||||||
|
| |||||||
Multi–Line Insurance – 0.1% |
| |||||||
American International Group, Inc., | 2,750 | 2,730 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Multi–Utilities – 0.1% |
| |||||||
Origin Energy Finance Ltd., | $ | 1,600 | $ | 1,640 | ||||
|
| |||||||
Oil & Gas Drilling – 0.1% |
| |||||||
Transocean, Inc., | 2,000 | 2,000 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.0% |
| |||||||
National Oilwell Varco, Inc., | 500 | 498 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.5% |
| |||||||
BP Capital Markets plc (GTD by BP plc), | 4,250 | 4,264 | ||||||
ConocoPhillips, | 4,400 | 4,342 | ||||||
Devon Energy Corp., | 3,000 | 2,994 | ||||||
|
| |||||||
11,600 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 0.5% |
| |||||||
Buckeye Partners L.P., | 6,300 | 6,293 | ||||||
Kinder Morgan Energy Partners L.P., | 3,250 | 3,241 | ||||||
|
| |||||||
9,534 | ||||||||
|
| |||||||
Other Diversified Financial Services – 2.1% |
| |||||||
CIT Group, Inc., | 2,600 | 2,555 | ||||||
Citigroup, Inc., | 15,000 | 14,991 | ||||||
Daimler Finance North America LLC, | 2,600 | 2,632 | ||||||
Fidelity National Information Services, Inc., | 1,250 | 1,243 | ||||||
Fifth Street Finance Corp., | 6,700 | 6,928 | ||||||
JPMorgan Chase & Co., | 500 | 543 | ||||||
Moody’s Corp., | 1,300 | 1,307 | ||||||
PennantPark Investment Corp., | 8,100 | 8,145 | ||||||
Total Capital, | 1,500 | 1,519 | ||||||
Total Capital Canada Ltd., | 2,000 | 1,988 | ||||||
|
| |||||||
41,851 | ||||||||
|
| |||||||
Personal Products – 0.1% |
| |||||||
Estee Lauder Co., Inc. (The), | 1,200 | 1,141 | ||||||
|
| |||||||
Pharmaceuticals – 0.9% |
| |||||||
Forest Laboratories, Inc., | 9,500 | 10,157 |
20 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Balanced Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Pharmaceuticals (Continued) |
| |||||||
Mylan, Inc., | $ | 700 | $ | 696 | ||||
Perrigo Co. Ltd., | 9,250 | 9,190 | ||||||
|
| |||||||
20,043 | ||||||||
|
| |||||||
Property & Casualty Insurance – 0.1% |
| |||||||
Berkshire Hathaway Finance Corp., | 1,550 | 1,556 | ||||||
Berkshire Hathaway, Inc., | 500 | 499 | ||||||
|
| |||||||
2,055 | ||||||||
|
| |||||||
Railroads – 0.1% |
| |||||||
Burlington Northern Santa Fe LLC, | 700 | 697 | ||||||
Kansas City Southern de Mexico S.A. de C.V., | 900 | 863 | ||||||
Union Pacific Corp., | 1,250 | 1,264 | ||||||
|
| |||||||
2,824 | ||||||||
|
| |||||||
Regional Banks – 0.5% |
| |||||||
BB&T Corp., | 3,422 | 3,389 | ||||||
PNC Bank N.A., | 4,000 | 4,005 | ||||||
SunTrust Banks, Inc., | 3,700 | 3,710 | ||||||
|
| |||||||
11,104 | ||||||||
|
| |||||||
Semiconductors – 0.4% |
| |||||||
Broadcom Corp., | 1,000 | 1,024 | ||||||
Micron Technology, Inc., | 8,081 | 7,919 | ||||||
|
| |||||||
8,943 | ||||||||
|
| |||||||
Soft Drinks – 0.3% |
| |||||||
PepsiCo, Inc., | 6,500 | 6,561 | ||||||
|
| |||||||
Specialized REITs – 0.8% |
| |||||||
Aircastle Ltd., | 8,081 | 7,980 | ||||||
CNL Lifestyles Properties, Inc., | 8,081 | 8,303 | ||||||
|
| |||||||
16,283 | ||||||||
|
| |||||||
Specialty Chemicals – 0.1% |
| |||||||
RPM International, Inc., | 1,000 | 974 | ||||||
Sherwin-Williams Co. (The), | 750 | 747 | ||||||
|
| |||||||
1,721 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Systems Software – 0.4% |
| |||||||
CA, Inc., | $ | 2,850 | $ | 2,889 | ||||
Oracle Corp., | 5,300 | 5,280 | ||||||
|
| |||||||
8,169 | ||||||||
|
| |||||||
Trucking – 0.2% |
| |||||||
Ryder System, Inc.: | 2,250 | 2,272 | ||||||
2.350%, 2–26–19 | 1,000 | 998 | ||||||
|
| |||||||
3,270 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 0.1% |
| |||||||
American Tower Corp., | 1,400 | 1,465 | ||||||
Crown Castle International Corp., | 1,046 | 1,036 | ||||||
Virgin Media Finance plc, | 284 | 269 | ||||||
|
| |||||||
2,770 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 23.2% |
| $ | 482,689 | |||||
(Cost: $480,227) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS |
| |||||||
Mortgage-Backed Obligations – 0.0% |
| |||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.000%, 9–1–17 | 47 | 49 | ||||||
5.000%, 1–1–18 | 29 | 30 | ||||||
5.500%, 4–1–18 | 4 | 5 | ||||||
6.500%, 10–1–28 | 55 | 61 | ||||||
6.500%, 2–1–29 | 9 | 10 | ||||||
7.000%, 11–1–31 | 64 | 76 | ||||||
6.500%, 2–1–32 | 48 | 57 | ||||||
7.000%, 2–1–32 | 76 | 88 | ||||||
7.000%, 3–1–32 | 35 | 42 | ||||||
7.000%, 7–1–32 | 45 | 52 | ||||||
6.000%, 9–1–32 | 177 | 205 | ||||||
6.500%, 9–1–32 | 39 | 45 | ||||||
5.500%, 5–1–33 | 63 | 70 | ||||||
5.500%, 6–1–33 | 37 | 42 | ||||||
|
| |||||||
832 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0% |
| $ | 832 | |||||
(Cost: $743) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS |
| |||||||
Treasury Obligations – 2.0% |
| |||||||
U.S. Treasury Notes: | 14,000 | 14,021 | ||||||
0.625%, 7–15–16 | 8,000 | 8,018 |
UNITED STATES GOVERNMENT OBLIGATIONS (Continued) | Principal | Value | ||||||
Treasury Obligations (Continued) |
| |||||||
0.625%, 2–15–17 | $ | 850 | $ | 846 | ||||
0.625%, 5–31–17 | 8,500 | 8,427 | ||||||
1.375%, 11–30–18 | 10,000 | 9,916 | ||||||
|
| |||||||
41,228 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT |
| $ | 41,228 | |||||
(Cost: $41,237) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper – 5.1% |
| |||||||
Air Products and Chemicals, Inc., | 5,000 | 5,000 | ||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | 1,800 | 1,800 | ||||||
Army & Air Force Exchange Service, | 2,000 | 2,000 | ||||||
Baxter International, Inc.: | 10,000 | 10,000 | ||||||
0.250%, 10–8–14 (E) | 8,000 | 8,000 | ||||||
BorgWarner, Inc., | 6,000 | 5,999 | ||||||
Campbell Soup Co., | 6,400 | 6,400 | ||||||
CVS Caremark Corp., | 2,000 | 2,000 | ||||||
Danaher Corp., | 10,000 | 9,999 | ||||||
Diageo Capital plc (GTD by Diageo plc), | 5,000 | 5,000 | ||||||
Illinois Tool Works, Inc., | 7,000 | 7,000 | ||||||
Kellogg Co., | 10,000 | 10,000 | ||||||
Kroger Co. (The), | 1,657 | 1,657 | ||||||
McCormick & Co., Inc., | 10,000 | 9,999 | ||||||
Mondelez International, Inc., | 6,000 | 5,999 | ||||||
St. Jude Medical, Inc., | 7,995 | 7,995 | ||||||
Virginia Electric and Power Co., | 8,000 | 8,000 | ||||||
|
| |||||||
106,848 | ||||||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp., | 1,968 | 1,968 | ||||||
|
|
2014 | SEMIANNUAL REPORT | 21 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Balanced Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Municipal Obligations – Taxable – 0.2% |
| |||||||
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), | $ | 500 | $ | 500 | ||||
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.), | 1,400 | 1,400 |
SHORT-TERM (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable (Continued) |
| |||||||
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America N.A.), | $ | 2,400 | $ | 2,400 | ||||
|
| |||||||
4,300 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 5.4% |
| $ | 113,116 | |||||
(Cost: $113,116) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.8% |
| $ | 2,077,291 | |||||
(Cost: $1,796,768) | ||||||||
CASH AND OTHER ASSETS, |
| 4,781 | ||||||
NET ASSETS – 100.0% |
| $ | 2,082,072 |
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, 2014, the total value of these securities amounted to $125,340 or 6.0% of net assets. |
(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, 2014. |
(E) | Rate shown is the yield to maturity at September 30, 2014. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 1,439,426 | $ | — | $ | — | ||||||
Corporate Debt Securities | — | 482,689 | — | |||||||||
United States Government Agency Obligations | — | 832 | — | |||||||||
United States Government Obligations | — | 41,228 | — | |||||||||
Short-Term Securities | — | 113,116 | — | |||||||||
Total | $ | 1,439,426 | $ | 637,865 | $ | — |
As of September 30, 2014, 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
REIT = Real Estate Investment Trusts
See Accompanying Notes to Financial Statements.
22 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 97.1% | |||
Energy | 89.3% | |||
Industrials | 7.0% | |||
Financials | 0.8% | |||
Cash and Cash Equivalents | 2.9% |
Lipper Rankings
Category: Lipper Natural Resources Funds | Rank | Percentile | ||
1 Year | 19/81 | 24 | ||
3 Year | 14/68 | 21 | ||
5 Year | 19/63 | 30 |
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 | 89.5% | |||
United States | 83.8% | |||
Canada | 5.7% | |||
Europe | 5.9% | |||
Bahamas/Caribbean | 1.0% | |||
Pacific Basin | 0.7% | |||
Cash and Cash Equivalents | 2.9% |
Top 10 Equity Holdings
Company | Sector | Industry | ||
Schlumberger Ltd. | Energy | Oil & Gas Equipment & Services | ||
Halliburton Co. | Energy | Oil & Gas Equipment & Services | ||
Baker Hughes, Inc. | Energy | Oil & Gas Equipment & Services | ||
Core Laboratories N.V. | Energy | Oil & Gas Equipment & Services | ||
EOG Resources, Inc. | Energy | Oil & Gas Exploration & Production | ||
Weatherford International Ltd. | Energy | Oil & Gas Equipment & Services | ||
Noble Energy, Inc. | Energy | Oil & Gas Exploration & Production | ||
Cimarex Energy Co. | Energy | Oil & Gas Exploration & Production | ||
Anadarko Petroleum Corp. | Energy | Oil & Gas Exploration & Production | ||
Phillips 66 | Energy | Oil & Gas Refining & Marketing |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 23 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Energy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Coal & Consumable Fuels – 1.4% |
| |||||||
Cameco Corp. | 100 | $ | 1,760 | |||||
Foresight Energy L.P. | 101 | 1,840 | ||||||
Peabody Energy Corp. | 89 | 1,096 | ||||||
|
| |||||||
4,696 | ||||||||
|
| |||||||
Construction & Engineering – 1.9% |
| |||||||
Fluor Corp. | 96 | 6,402 | ||||||
|
| |||||||
Electrical Components & |
| |||||||
SolarCity Corp. (A) | 41 | 2,461 | ||||||
|
| |||||||
Industrial Machinery – 1.6% |
| |||||||
Flowserve Corp. | 76 | 5,328 | ||||||
|
| |||||||
Integrated Oil & Gas – 6.3% |
| |||||||
Chevron Corp. | 27 | 3,246 | ||||||
Exxon Mobil Corp. | 54 | 5,046 | ||||||
Occidental Petroleum Corp. | 65 | 6,281 | ||||||
Royal Dutch Shell plc, | 87 | 3,338 | ||||||
Suncor Energy, Inc. | 85 | 3,078 | ||||||
|
| |||||||
20,989 | ||||||||
|
| |||||||
Oil & Gas Drilling – 4.4% |
| |||||||
Helmerich & Payne, Inc. | 53 | 5,168 | ||||||
Nabors Industries Ltd. | 152 | 3,452 | ||||||
Patterson-UTI Energy, Inc. | 188 | 6,102 | ||||||
|
| |||||||
14,722 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 26.4% |
| |||||||
Baker Hughes, Inc. | 134 | 8,728 | ||||||
Basic Energy Services, | 190 | 4,122 | ||||||
Cameron International | 91 | 6,011 | ||||||
Core Laboratories N.V. | 59 | 8,642 | ||||||
Dril-Quip, Inc. (A) | 58 | 5,167 | ||||||
FMC Technologies, | 67 | 3,614 | ||||||
Forum Energy Technologies, Inc. (A) | 164 | 5,034 | ||||||
Halliburton Co. | 211 | 13,589 | ||||||
National Oilwell Varco, Inc. | 71 | 5,376 | ||||||
Oceaneering International, Inc. | 20 | 1,323 | ||||||
Schlumberger Ltd. | 135 | 13,714 | ||||||
Superior Energy Services, Inc. | 143 | 4,687 | ||||||
Weatherford International | 375 | 7,805 | ||||||
|
| |||||||
87,812 | ||||||||
|
| |||||||
Oil & Gas Exploration & |
| |||||||
Anadarko Petroleum Corp. | 65 | 6,607 | ||||||
Antero Resources | 48 | 2,626 | ||||||
Athlon Energy, Inc. (A) | 82 | 4,795 | ||||||
Bonanza Creek Energy, | 88 | 5,004 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Oil & Gas Exploration & Production (Continued) |
| |||||||
Cabot Oil & Gas Corp. | 137 | $ | 4,482 | |||||
Canadian Natural Resources Ltd. | 137 | 5,315 | ||||||
Cimarex Energy Co. | 59 | 7,422 | ||||||
CNOOC Ltd. ADR | 13 | 2,303 | ||||||
Concho Resources, | 22 | 2,809 | ||||||
ConocoPhillips | 43 | 3,256 | ||||||
Continental Resources, | 98 | 6,488 | ||||||
EOG Resources, Inc. | 86 | 8,537 | ||||||
Gulfport Energy Corp. (A) | 64 | 3,412 | ||||||
Memorial Resource Development Corp. (A) | 138 | 3,739 | ||||||
Newfield Exploration | 110 | 4,085 | ||||||
Noble Energy, Inc. | 112 | 7,647 | ||||||
Oasis Petroleum LLC (A) | 64 | 2,686 | ||||||
Parsley Energy, Inc., | 283 | 6,038 | ||||||
Pioneer Natural Resources Co. | 15 | 2,905 | ||||||
Rice Energy, Inc. (A) | 215 | 5,708 | ||||||
RSP Permian, Inc. (A) | 102 | 2,599 | ||||||
Southwestern Energy | 107 | 3,731 | ||||||
|
| |||||||
102,194 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 8.7% |
| |||||||
HollyFrontier Corp. | 36 | 1,583 | ||||||
Marathon Petroleum Corp. | 76 | 6,418 | ||||||
Marathon Petroleum Corp. L.P. | 83 | 4,901 | ||||||
Phillips 66 | 81 | 6,549 | ||||||
Tesoro Corp. | 80 | 4,903 | ||||||
Valero Energy Corp. | 96 | 4,463 | ||||||
|
| |||||||
28,817 | ||||||||
|
| |||||||
Oil & Gas Storage & |
| |||||||
Enbridge, Inc. | 71 | 3,392 | ||||||
Energy Transfer Equity L.P. | 85 | 5,228 | ||||||
MarkWest Energy Partners L.P. | 72 | 5,520 | ||||||
Phillips 66 Partners L.P. | 91 | 6,058 | ||||||
Plains GP Holdings L.P., Class A | 79 | 2,417 | ||||||
Targa Resources Corp. | 47 | 6,447 | ||||||
Valero Energy Partners L.P. | 54 | 2,410 | ||||||
Williams Co., Inc. (The) | 106 | 5,886 | ||||||
|
| |||||||
37,358 | ||||||||
|
| |||||||
Railroads – 2.8% |
| |||||||
Canadian Pacific Railway Ltd. | 26 | 5,477 | ||||||
Kansas City Southern | 29 | 3,551 | ||||||
|
| |||||||
9,028 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialized Finance – 0.8% |
| |||||||
CME Group, Inc. | 35 | $ | 2,778 | |||||
|
| |||||||
TOTAL COMMON |
| $ | 322,585 | |||||
(Cost: $260,594) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 5.6% |
| |||||||
Army & Air Force Exchange Service, | ||||||||
0.080%, 10–27–14 (C) | $ | 4,000 | 4,000 | |||||
Diageo Capital plc (GTD by Diageo plc), | ||||||||
0.250%, 10–9–14 (C) | 2,000 | 2,000 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | ||||||||
0.210%, 10–3–14 (C) | 2,413 | 2,413 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | ||||||||
0.130%, 10–28–1 (C) | 5,000 | 5,000 | ||||||
Wisconsin Gas LLC, | ||||||||
0.110%, 10–2–14 (C) | 5,000 | 4,999 | ||||||
|
| |||||||
18,412 | ||||||||
|
| |||||||
Master Note – 0.9% |
| |||||||
Toyota Motor Credit Corp., | ||||||||
0.102%, 10–7–14 (D) | 3,097 | 3,097 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 6.5% |
| $ | 21,509 | |||||
(Cost: $21,509) | ||||||||
TOTAL INVESTMENT SECURITIES – 103.6% |
| $ | 344,094 | |||||
(Cost: $282,103) | ||||||||
LIABILITIES, NET OF CASH AND OTHER | (11,882 | ) | ||||||
NET ASSETS – 100.0% |
| $ | 332,212 |
24 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Energy Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 322,585 | $ | — | $ | — | ||||||
Short-Term Securities | — | 21,509 | — | |||||||||
Total | $ | 322,585 | $ | 21,509 | $ | — |
As of September 30, 2014, 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% | |||
Canada | 5.7% | |||
Netherlands | 2.6% | |||
Switzerland | 2.3% | |||
United Kingdom | 1.0% | |||
Bermuda | 1.0% | |||
Other Countries | 0.7% | |||
Other+ | 2.9% |
+Includes | cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 25 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 98.1% | |||
Energy | 64.0% | |||
Materials | 20.5% | |||
Industrials | 12.5% | |||
Financials | 1.1% | |||
Utilities | 0.0% | |||
Cash and Cash Equivalents | 1.9% |
Lipper Rankings
Category: Lipper Global Natural Resources Funds | Rank | Percentile | ||
1 Year | 35/149 | 24 | ||
3 Year | 66/128 | 52 | ||
5 Year | 79/107 | 74 | ||
10 Year | 38/40 | 93 |
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 | 83.9% | |||
United States | 76.5% | |||
Canada | 7.4% | |||
Europe | 13.2% | |||
United Kingdom | 7.5% | |||
Other Europe | 5.7% | |||
Bahamas/Caribbean | 1.0% | |||
Pacific Basin | 0.0% | |||
Cash and Cash Equivalents | 1.9% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Halliburton Co. | United States | Energy | Oil & Gas Equipment & Services | |||
Schlumberger Ltd. | United States | Energy | Oil & Gas Equipment & Services | |||
Dow Chemical Co. (The) | United States | Materials | Diversified Chemicals | |||
Canadian Pacific Railway Ltd. | Canada | Industrials | Railroads | |||
BHP Billiton plc | United Kingdom | Materials | Diversified Metals & Mining | |||
Rio Tinto plc | United Kingdom | Materials | Diversified Metals & Mining | |||
Weatherford International Ltd. | Switzerland | Energy | Oil & Gas Equipment & Services | |||
LyondellBasell Industries N.V., Class A | United States | Materials | Specialty Chemicals | |||
Baker Hughes, Inc. | United States | Energy | Oil & Gas Equipment & Services | |||
Suncor Energy, Inc. | Canada | Energy | Integrated Oil & Gas |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
26 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Natural Resources Fund (in thousands)
SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Bermuda – 1.0% |
| |||||||
Nabors Industries Ltd. | 664 | $ | 15,106 | |||||
|
| |||||||
Canada – 7.4% |
| |||||||
Canadian Natural Resources Ltd. | 494 | 19,191 | ||||||
Canadian Pacific Railway Ltd. | 235 | 48,662 | ||||||
Suncor Energy, Inc. | 1,139 | 41,230 | ||||||
Yamana Gold, Inc. | 836 | 5,018 | ||||||
|
| |||||||
114,101 | ||||||||
|
| |||||||
China – 0.0% |
| |||||||
China Metal Recycling (Holdings) Ltd. | 30,000 | — | ||||||
|
| |||||||
France – 0.5% |
| |||||||
L Air Liquide S.A. | 64 | 7,831 | ||||||
|
| |||||||
Netherlands – 2.3% |
| |||||||
Chicago Bridge & Iron Co. N.V., NY Shares | 261 | 15,105 | ||||||
Core Laboratories N.V. | 142 | 20,840 | ||||||
|
| |||||||
35,945 | ||||||||
|
| |||||||
Switzerland – 2.9% |
| |||||||
Weatherford International Ltd. (A) | 2,124 | 44,170 | ||||||
|
| |||||||
United Kingdom – 7.5% |
| |||||||
Anglo American plc | 282 | 6,323 | ||||||
BHP Billiton plc | 1,649 | 45,834 | ||||||
Pentair, Inc. | 188 | 12,292 | ||||||
Randgold Resources Ltd. ADR | 110 | 7,459 | ||||||
Rio Tinto plc | 914 | 44,928 | ||||||
|
| |||||||
116,836 | ||||||||
|
| |||||||
United States – 76.5% |
| |||||||
Airgas, Inc. | 75 | 8,266 | ||||||
Anadarko Petroleum Corp. | 306 | 31,051 | ||||||
Antero Resources Corp. (A) | 285 | 15,657 | ||||||
Baker Hughes, Inc. | 665 | 43,281 | ||||||
Cabot Oil & Gas Corp. | 462 | 15,114 | ||||||
Cameron International Corp. (A) | 365 | 24,242 | ||||||
Caterpillar, Inc. | 290 | 28,696 | ||||||
CME Group, Inc. | 220 | 17,582 | ||||||
Concho Resources, Inc. (A) | 208 | 26,050 | ||||||
ConocoPhillips | 172 | 13,188 | ||||||
Continental Resources, Inc. (A) | 557 | 37,043 | ||||||
Devon Energy Corp. | 108 | 7,360 | ||||||
Dow Chemical Co. (The) | 1,070 | 56,090 | ||||||
Dril-Quip, Inc. (A) | 172 | 15,372 | ||||||
Eastman Chemical Co. | 190 | 15,365 | ||||||
Energy Transfer Equity L.P. | 361 | 22,252 | ||||||
EOG Resources, Inc. | 369 | 36,533 | ||||||
Exxon Mobil Corp. | 73 | 6,833 | ||||||
Flowserve Corp. | 453 | 31,960 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States (Continued) |
| |||||||
Fluor Corp. | 345 | $ | 23,033 | |||||
FMC Technologies, Inc. (A) | 576 | 31,291 | ||||||
Forum Energy Technologies, | 539 | 16,505 | ||||||
Freeport-McMoRan Copper & Gold, Inc., Class B | 1,222 | 39,909 | ||||||
Gulfport Energy | 159 | 8,507 | ||||||
Halliburton Co. | 1,332 | 85,927 | ||||||
Joy Global, Inc. | 415 | 22,645 | ||||||
Kansas City Southern | 71 | 8,563 | ||||||
LyondellBasell Industries N.V., Class A | 403 | 43,747 | ||||||
Marathon Petroleum Corp. | 345 | 29,249 | ||||||
MarkWest Energy Partners L.P. | 215 | 16,539 | ||||||
National Oilwell Varco, Inc. | 197 | 15,022 | ||||||
Newfield Exploration Co. (A) | 212 | 7,842 | ||||||
Noble Energy, Inc. | 556 | 37,991 | ||||||
Oasis Petroleum LLC (A) | 321 | 13,408 | ||||||
Occidental Petroleum Corp. | 158 | 15,182 | ||||||
Oceaneering International, Inc. | 108 | 7,006 | ||||||
Patterson-UTI Energy, Inc. | 550 | 17,893 | ||||||
Peabody Energy Corp. | 409 | 5,061 | ||||||
Phillips 66 | 387 | 31,438 | ||||||
Pioneer Natural Resources Co. | 121 | 23,784 | ||||||
Plains GP Holdings L.P., Class A | 469 | 14,379 | ||||||
PPG Industries, Inc. | 81 | 16,024 | ||||||
Rice Energy, Inc. (A) | 639 | 16,996 | ||||||
Schlumberger Ltd. | 774 | 78,733 | ||||||
Southern Copper Corp. | 527 | 15,634 | ||||||
Southwestern Energy Co. (A) | 360 | 12,579 | ||||||
Superior Energy Services, Inc. | 671 | 22,041 | ||||||
Tesoro Corp. | 120 | 7,293 | ||||||
Valero Energy Corp. | 305 | 14,092 | ||||||
Valero Energy Partners L.P. | 121 | 5,389 | ||||||
Westlake Chemical Partners L.P. (A) | 277 | 8,046 | ||||||
Williams Co., Inc. (The) | 382 | 21,141 | ||||||
|
| |||||||
1,184,824 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 1,518,813 | |||||
(Cost: $1,227,226) |
PREFERRED STOCKS | Shares | Value | ||||||
United States – 0.0% |
| |||||||
Konarka Technologies, Inc., 8.000% | ||||||||
Cumulative (A)(B) | 3,500 | $ | — | |||||
|
| |||||||
TOTAL PREFERRED |
| $ | — | |||||
(Cost: $10,850) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 1.7% |
| |||||||
Air Products and Chemicals, Inc., | $ | 5,000 | 5,000 | |||||
Army & Air Force Exchange Service, | 5,000 | 5,000 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | 6,000 | 6,000 | ||||||
Illinois Tool Works, Inc., 0.070%, 10-1-14 (C) | 4,500 | 4,500 | ||||||
Wisconsin Gas LLC, 0.110%, 10-2-14 (C) | 5,000 | 4,999 | ||||||
|
| |||||||
25,499 | ||||||||
|
| |||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp., | 3,709 | 3,709 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 1.9% |
| $ | 29,208 | |||||
(Cost: $29,208) | ||||||||
TOTAL INVESTMENT SECURITIES – 100.0% |
| $ | 1,548,021 | |||||
(Cost: $1,267,284) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0% |
| 548 | ||||||
NET ASSETS – 100.0% |
| $ | 1,548,569 |
2014 | SEMIANNUAL REPORT | 27 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Natural Resources Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
(A) | No dividends were paid during the preceding 12 months. |
(B) | Restricted security. At September 30, 2014, 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, 2014.
(C) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | British Pound | State Street Global Markets | 15,471 | 10–10–14 | $ | 571 | $ | — | ||||||||||||
Sell | British Pound | UBS AG | 53,070 | 10–10–14 | 1,935 | — | ||||||||||||||
Sell | Canadian Dollar | State Street Global Markets | 13,630 | 10–10–14 | 253 | — | ||||||||||||||
Sell | Canadian Dollar | UBS AG | 44,285 | 10–10–14 | 846 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 3,605 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 1,518,813 | $ | — | $ | — | ||||||
Short-Term Securities | — | 29,208 | — | |||||||||
Total | $ | 1,518,813 | $ | 29,208 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 3,605 | $ | — |
As of September 30, 2014, 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) | ||||
Energy | 64.0% | |||
Materials | 20.5% | |||
Industrials | 12.5% | |||
Financials | 1.1% | |||
Utilities | 0.0% | |||
Other+ | 1.9% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
28 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 98.9% | |||
Financials | 97.7% | |||
Telecommunication Services | 1.2% | |||
Cash | 1.1% |
Lipper Rankings
Category: Lipper Global Real Estate Funds | Rank | Percentile | ||
1 Year | 69/138 | 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.
Country Weightings
North America | 54.3% | |||
United States | 49.8% | |||
Canada | 4.3% | |||
Other North America | 0.2% | |||
Pacific Basin | 28.5% | |||
Japan | 11.7% | |||
Australia | 6.9% | |||
Hong Kong | 6.8% | |||
Other Pacific Basin | 3.1% | |||
Europe | 14.1% | |||
United Kingdom | 5.6% | |||
France | 3.5% | |||
Other Europe | 5.0% | |||
Bahamas/Caribbean | 2.0% | |||
Cash | 1.1% |
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 Development | |||
Boston Properties, Inc. | United States | Financials | Office REITs | |||
AvalonBay Communities, Inc. | United States | Financials | Residential REITs | |||
Mitsui Fudosan Co. Ltd. | Japan | Financials | Real Estate Development | |||
Sun Hung Kai Properties Ltd. | Hong Kong | Financials | Real Estate Development | |||
Equity Residential | United States | Financials | Residential REITs | |||
Public Storage, Inc. | United States | Financials | Specialized REITs | |||
Ventas, Inc. | United States | Financials | Specialized REITs | |||
HCP, 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.
2014 | SEMIANNUAL REPORT | 29 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Real Estate Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 6.9% |
| |||||||
DEXUS Property Group | 441 | $ | 429 | |||||
Mirvac Group | 215 | 323 | ||||||
Scentre Group (A) | 258 | 742 | ||||||
Westfield Corp. | 82 | 538 | ||||||
|
| |||||||
2,032 | ||||||||
|
| |||||||
Belgium – 0.8% |
| |||||||
Befimmo N.V./S.A. | 2 | 146 | ||||||
Warehouses De Pauw Comm. VA/SCA | 1 | 75 | ||||||
|
| |||||||
221 | ||||||||
|
| |||||||
Bermuda – 2.0% |
| |||||||
Hongkong Land Holdings Ltd. | 85 | 578 | ||||||
|
| |||||||
Canada – 4.3% |
| |||||||
Allied Properties REIT | 2 | 46 | ||||||
Brookfield Canada Office Properties | 1 | 33 | ||||||
Calloway REIT | 9 | 200 | ||||||
Canadian Apartments Properties REIT | 6 | 276 | ||||||
Canadian REIT | 2 | 39 | ||||||
First Capital Realty, Inc. | 12 | 188 | ||||||
H&R Real Estate Investment Trust | 9 | 179 | ||||||
Northern Property REIT | 4 | 98 | ||||||
RioCan REIT | 9 | 201 | ||||||
|
| |||||||
1,260 | ||||||||
|
| |||||||
Finland – 0.3% |
| |||||||
Citycon Oyj | 29 | 97 | ||||||
|
| |||||||
France – 3.5% |
| |||||||
Gecina | 1 | 107 | ||||||
Icade | — | * | 24 | |||||
Klepierre | 7 | 285 | ||||||
Mercialys S.A. | 5 | 103 | ||||||
Unibail-Rodamco | 2 | 504 | ||||||
|
| |||||||
1,023 | ||||||||
|
| |||||||
Germany – 1.5% |
| |||||||
alstria office REIT-AG | 6 | 79 | ||||||
Deutsche Annington Immobilien SE | 6 | 182 | ||||||
Deutsche Wohnen AG | 9 | 187 | ||||||
|
| |||||||
448 | ||||||||
|
| |||||||
Hong Kong – 6.8% |
| |||||||
Great Eagle Holdings Ltd. | 15 | 51 | ||||||
Hysan Development Co. Ltd. | 85 | 393 | ||||||
Sun Hung Kai Properties Ltd. | 80 | 1,134 | ||||||
Swire Properties Ltd. | 134 | 419 | ||||||
|
| |||||||
1,997 | ||||||||
|
| |||||||
Ireland – 0.1% |
| |||||||
Green REIT plc (A) | 17 | 29 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan – 11.7% |
| |||||||
Daiwa Office Investment Corp. | — | * | $ | 113 | ||||
GLP J-REIT | — | * | 184 | |||||
Kenedix Office Investment Corp. | — | * | 129 | |||||
Mitsubishi Estate Co. Ltd. | 59 | 1,328 | ||||||
Mitsui Fudosan Co. Ltd. | 41 | 1,256 | ||||||
Nippon Building Fund, Inc. | — | * | 311 | |||||
Nippon Prologis REIT, Inc. | — | * | 88 | |||||
|
| |||||||
3,409 | ||||||||
|
| |||||||
Jersey – 0.1% |
| |||||||
Atrium European Real Estate Ltd. | 7 | 38 | ||||||
|
| |||||||
Mexico – 0.2% |
| |||||||
Prologis Property Mexico S.A. de C.V. | 33 | 69 | ||||||
|
| |||||||
Netherlands – 0.7% |
| |||||||
Corio N.V. | 1 | 63 | ||||||
Vastned Retail N.V. | 3 | 132 | ||||||
|
| |||||||
195 | ||||||||
|
| |||||||
Norway – 0.1% |
| |||||||
Norwegian Property ASA | 21 | 32 | ||||||
|
| |||||||
Singapore – 3.1% |
| |||||||
CapitaCommercial Trust | 101 | 126 | ||||||
CapitaLand Ltd. | 107 | 268 | ||||||
CapitaMall Trust | 111 | 166 | ||||||
Global Logistic Properties Ltd. | 121 | 257 | ||||||
Mapletree Commercial Trust | 95 | 105 | ||||||
|
| |||||||
922 | ||||||||
|
| |||||||
Sweden – 0.7% |
| |||||||
Kungsleden AB | 11 | 64 | ||||||
Wihlborgs Fastigheter AB | 8 | 129 | ||||||
|
| |||||||
193 | ||||||||
|
| |||||||
Switzerland – 0.7% |
| |||||||
PSP Swiss Property Ltd., Registered Shares | 2 | 199 | ||||||
|
| |||||||
United Kingdom – 5.6% |
| |||||||
British Land Co. plc (The) | 12 | 138 | ||||||
Capital & Counties Properties plc | 11 | 57 | ||||||
Capital & Regional plc | 93 | 73 | ||||||
Derwent London plc | 5 | 226 | ||||||
Hammerson plc | 13 | 117 | ||||||
Hansteen Holdings plc | 53 | 88 | ||||||
Land Securities Group plc | 30 | 507 | ||||||
Metric Property Investments plc | 67 | 150 | ||||||
SEGRO plc | 27 | 162 | ||||||
Shaftesbury plc | 12 | 137 | ||||||
|
| |||||||
1,655 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States – 49.8% |
| |||||||
Acadia Realty Trust | 4 | $ | 104 | |||||
Alexandria Real Estate Equities, Inc. | 3 | 224 | ||||||
American Tower Corp., Class A | 4 | 362 | ||||||
AvalonBay Communities, Inc. | 9 | 1,313 | ||||||
BioMed Realty Trust, Inc. | 8 | 166 | ||||||
Boston Properties, Inc. | 11 | 1,326 | ||||||
Camden Property Trust | 8 | 516 | ||||||
CBL & Associates Properties, Inc. | 18 | 318 | ||||||
CubeSmart | 11 | 198 | ||||||
DDR Corp. | 15 | 257 | ||||||
DiamondRock Hospitality Co. | 15 | 185 | ||||||
Duke Realty Corp. | 16 | 271 | ||||||
Equity Residential | 18 | 1,124 | ||||||
Federal Realty Investment Trust | 5 | 644 | ||||||
General Growth Properties, Inc. | 15 | 364 | ||||||
HCP, Inc. | 20 | 792 | ||||||
LaSalle Hotel Properties | 15 | 509 | ||||||
ProLogis | 11 | 426 | ||||||
Public Storage, Inc. | 5 | 830 | ||||||
Ramco-Gershenson Properties Trust | 3 | 53 | ||||||
RLJ Lodging Trust | 14 | 393 | ||||||
Senior Housing Properties Trust | 5 | 104 | ||||||
Simon Property Group, Inc. | 13 | 2,092 | ||||||
Taubman Centers, Inc. | 6 | 412 | ||||||
Terreno Realty Corp. | 3 | 52 | ||||||
Ventas, Inc. | 13 | 792 | ||||||
Vornado Realty Trust | 7 | 721 | ||||||
Weingarten Realty Investors | 1 | 17 | ||||||
|
| |||||||
14,565 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 28,962 | |||||
(Cost: $28,342) | ||||||||
TOTAL INVESTMENT SECURITIES – 98.9% |
| $ | 28,962 | |||||
(Cost: $28,342) | ||||||||
CASH AND OTHER ASSETS, |
| 335 | ||||||
NET ASSETS – 100.0% |
| $ | 29,297 |
30 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Real Estate Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
* | Not shown due to rounding. |
(A) | No dividends were paid during the preceding 12 months. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 28,962 | $ | — | $ | — |
As of September 30, 2014, 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 | 97.7% | |||
Telecommunication Services | 1.2% | |||
Other+ | 1.1% |
+ | Includes cash and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 31 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 98.2% | |||
Financials | 98.2% | |||
Cash and Cash Equivalents | 1.8% |
Lipper Rankings
Category: Lipper Global Real Estate Funds | Rank | Percentile | ||
1 Year | 32/138 | 24 |
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 | 54.3% | |||
United States | 49.6% | |||
Canada | 4.7% | |||
Pacific Basin | 27.1% | |||
Japan | 10.9% | |||
Australia | 8.1% | |||
Hong Kong | 4.5% | |||
Singapore | 3.6% | |||
Europe | 14.2% | |||
United Kingdom | 5.6% | |||
Other Europe | 8.6% | |||
Bahamas/Caribbean | 2.6% | |||
Cash and Cash Equivalents | 1.8% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Simon Property Group, Inc. | United States | Financials | Retail REITs | |||
Boston Properties, Inc. | United States | Financials | Office REITs | |||
AvalonBay Communities, Inc. | United States | Financials | Residential REITs | |||
Public Storage, Inc. | United States | Financials | Specialized REITs | |||
Equity Residential | United States | Financials | Residential REITs | |||
Federal Realty Investment Trust | United States | Financials | Retail REITs | |||
Nippon Building Fund, Inc. | Japan | Financials | Office REITs | |||
Scentre Group | Australia | Financials | Retail REITs | |||
HCP, Inc. | United States | Financials | Specialized REITs | |||
Taubman Centers, Inc. | United States | Financials | Retail REITs |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
32 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Risk-Managed Real Estate Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 8.1% |
| |||||||
DEXUS Property Group | 728 | $ | 707 | |||||
GPT Group | 202 | 683 | ||||||
Scentre Group (A) | 440 | 1,265 | ||||||
Westfield Corp. | 143 | 932 | ||||||
|
| |||||||
3,587 | ||||||||
|
| |||||||
Bermuda – 2.6% |
| |||||||
Hongkong Land Holdings Ltd. | 171 | 1,159 | ||||||
|
| |||||||
Canada – 4.7% |
| |||||||
Allied Properties REIT | 8 | 250 | ||||||
Boardwalk REIT | 3 | 191 | ||||||
Brookfield Canada Office Properties | 7 | 168 | ||||||
Calloway REIT | 19 | 437 | ||||||
Canadian Apartments Properties REIT | 13 | 582 | ||||||
RioCan REIT | 20 | 459 | ||||||
|
| |||||||
2,087 | ||||||||
|
| |||||||
France – 3.4% |
| |||||||
Gecina | 4 | 572 | ||||||
Mercialys S.A. | 17 | 367 | ||||||
Unibail-Rodamco | 2 | 575 | ||||||
|
| |||||||
1,514 | ||||||||
|
| |||||||
Germany – 2.5% |
| |||||||
alstria office REIT-AG | 50 | 612 | ||||||
Deutsche Wohnen AG | 23 | 491 | ||||||
|
| |||||||
1,103 | ||||||||
|
| |||||||
Hong Kong – 4.5% |
| |||||||
Hysan Development Co. Ltd. | 134 | 620 | ||||||
Link REIT (The) | 107 | 614 | ||||||
Swire Properties Ltd. | 246 | 766 | ||||||
|
| |||||||
2,000 | ||||||||
|
| |||||||
Japan – 10.9% |
| |||||||
Daiwa Office Investment Corp. | — | * | 189 | |||||
GLP J-REIT | 1 | 799 | ||||||
Hulic REIT, Inc. | — | * | 199 | |||||
Japan Real Estate Investment Corp. | — | * | 956 | |||||
Nippon Building Fund, Inc. | — | * | 1,379 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan (Continued) |
| |||||||
Nippon Prologis REIT, Inc. | — | * | $ | 954 | ||||
Nomura Real Estate Master Fund, Inc. | — | * | 358 | |||||
|
| |||||||
4,834 | ||||||||
|
| |||||||
Jersey – 0.9% |
| |||||||
Atrium European Real Estate Ltd. | 74 | 384 | ||||||
|
| |||||||
Netherlands – 0.8% |
| |||||||
Eurocommercial Properties N.V. | 8 | 347 | ||||||
|
| |||||||
Singapore – 3.6% |
| |||||||
CapitaCommercial Trust | 255 | 319 | ||||||
CapitaMall Trust | 313 | 468 | ||||||
Fortune REIT | 402 | 360 | ||||||
Mapletree Commercial Trust | 166 | 183 | ||||||
Suntec REIT | 199 | 275 | ||||||
|
| |||||||
1,605 | ||||||||
|
| |||||||
Switzerland – 1.0% |
| |||||||
PSP Swiss Property Ltd., Registered Shares | 6 | 465 | ||||||
|
| |||||||
United Kingdom – 5.6% |
| |||||||
Derwent London plc | 11 | 501 | ||||||
Hammerson plc | 39 | 359 | ||||||
Hansteen Holdings plc | 148 | 249 | ||||||
Land Securities Group plc | 51 | 863 | ||||||
Shaftesbury plc | 46 | 507 | ||||||
|
| |||||||
2,479 | ||||||||
|
| |||||||
United States – 49.6% |
| |||||||
Acadia Realty Trust | 9 | 259 | ||||||
Alexandria Real Estate Equities, Inc. | 5 | 363 | ||||||
American Campus Communities, Inc. | 15 | 531 | ||||||
AvalonBay Communities, Inc. | 14 | 1,976 | ||||||
BioMed Realty Trust, Inc. | 13 | 254 | ||||||
Boston Properties, Inc. | 17 | 2,019 | ||||||
Camden Property Trust | 12 | 844 | ||||||
CubeSmart | 14 | 243 | ||||||
EastGroup Properties, Inc. | 6 | 357 | ||||||
Equity One, Inc. | 12 | 270 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States (Continued) |
| |||||||
Equity Residential | 28 | $ | 1,716 | |||||
Federal Realty Investment Trust | 12 | 1,477 | ||||||
HCP, Inc. | 30 | 1,182 | ||||||
Healthcare Trust of America, Inc., Class A | 23 | 268 | ||||||
Macerich Co. (The) | 10 | 620 | ||||||
ProLogis | 16 | 611 | ||||||
Public Storage, Inc. | 11 | 1,799 | ||||||
Ramco-Gershenson Properties Trust | 8 | 124 | ||||||
Senior Housing Properties Trust | 8 | 161 | ||||||
Simon Property Group, Inc. | 20 | 3,264 | ||||||
Taubman Centers, Inc. | 16 | 1,170 | ||||||
Terreno Realty Corp. | 7 | 131 | ||||||
Ventas, Inc. | 19 | 1,162 | ||||||
Vornado Realty Trust | 9 | 924 | ||||||
Washington REIT | 14 | 362 | ||||||
Weingarten Realty Investors | 1 | 31 | ||||||
|
| |||||||
22,118 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 43,682 | |||||
(Cost: $42,843) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Master Note – 0.9% |
| |||||||
Toyota Motor Credit Corp., | $ | 422 | 422 | |||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.9% |
| $ | 422 | |||||
(Cost: $422) | ||||||||
TOTAL INVESTMENT |
| $ | 44,104 | |||||
(Cost: $43,265) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9% |
| 420 | ||||||
NET ASSETS – 100.0% | $ | 44,524 |
2014 | SEMIANNUAL REPORT | 33 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Risk-Managed Real Estate Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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, 2014. 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, 2014. 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 | $ | 43,682 | $ | — | $ | — | ||||||
Short-Term Securities | — | 422 | — | |||||||||
Total | $ | 43,682 | $ | 422 | $ | — |
As of September 30, 2014, 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 | 98.2% | |||
Other+ | 1.8% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
34 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 99.3% | |||
Financials | 95.7% | |||
Consumer Discretionary | 2.7% | |||
Health Care | 0.9% | |||
Cash and Cash Equivalents | 0.7% |
Lipper Rankings
Category: Lipper Real Estate Funds | Rank | Percentile | ||||||
1 Year | 127/250 | 51 | ||||||
3 Year | 125/217 | 58 | ||||||
5 Year | 137/174 | 79 | ||||||
10 Year | 95/128 | 74 |
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 | ||
Boston Properties, Inc. | Financials | Office REITs | ||
AvalonBay Communities, Inc. | Financials | Residential REITs | ||
Vornado Realty Trust | Financials | Diversified REITs | ||
Public Storage, Inc. | Financials | Specialized REITs | ||
Equity Residential | Financials | Residential REITs | ||
Essex Property Trust, Inc. | Financials | Residential REITs | ||
Health Care REIT, Inc. | Financials | Specialized REITs | ||
Ventas, Inc. | Financials | Specialized REITs | ||
General Growth Properties, Inc. | Financials | Retail REITs |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 35 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Real Estate Securities Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Diversified REITs – 6.7% |
| |||||||
Cousins Properties, Inc. | 1,000 | $ | 11,944 | |||||
Spirit Realty Capital, Inc. | 274 | 3,008 | ||||||
Vornado Realty Trust | 256 | 25,551 | ||||||
|
| |||||||
40,503 | ||||||||
|
| |||||||
Health Care Facilities – 0.9% |
| |||||||
Brookdale Senior Living, Inc. (A) | 170 | 5,477 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 2.7% |
| |||||||
Hyatt Hotels Corp., Class A (A) | 177 | 10,712 | ||||||
Marriott International, Inc., Class A | 84 | 5,879 | ||||||
|
| |||||||
16,591 | ||||||||
|
| |||||||
Industrial REITs – 5.1% |
| |||||||
DCT Industrial Trust, Inc. | 971 | 7,294 | ||||||
EastGroup Properties, Inc. | 135 | 8,198 | ||||||
ProLogis | 419 | 15,805 | ||||||
|
| |||||||
31,297 | ||||||||
|
| |||||||
Office REITs – 15.8% |
| |||||||
Alexandria Real Estate Equities, Inc. | 173 | 12,766 | ||||||
BioMed Realty Trust, Inc. | 315 | 6,361 | ||||||
Boston Properties, Inc. | 262 | 30,271 | ||||||
Digital Realty Trust, Inc. | 72 | 4,504 | ||||||
Duke Realty Corp. | 882 | 15,160 | ||||||
Kilroy Realty Corp. | 91 | 5,407 | �� | |||||
Parkway Properties, Inc. | 248 | 4,659 | ||||||
SL Green Realty Corp. | 167 | 16,883 | ||||||
|
| |||||||
96,011 | ||||||||
|
| |||||||
Residential REITs – 18.6% |
| |||||||
American Campus Communities, Inc. | 201 | 7,319 | ||||||
AvalonBay Communities, Inc. | 197 | 27,715 | ||||||
Camden Property Trust | 230 | 15,776 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Residential REITs (Continued) |
| |||||||
Education Realty Trust, Inc. | 180 | $ | 1,852 | |||||
Equity Residential | 392 | 24,139 | ||||||
Essex Property Trust, Inc. | 127 | 22,733 | ||||||
Mid-America Apartment Communities, Inc. | 31 | 2,036 | ||||||
UDR, Inc. | 435 | 11,851 | ||||||
|
| |||||||
113,421 | ||||||||
|
| |||||||
Retail REITs – 25.2% |
| |||||||
Acadia Realty Trust | 324 | 8,937 | ||||||
DDR Corp. | 720 | 12,052 | ||||||
Federal Realty Investment Trust | 114 | 13,563 | ||||||
General Growth Properties, Inc. | 720 | 16,954 | ||||||
Kimco Realty Corp. | 593 | 12,985 | ||||||
Kite Realty Group Trust | 413 | 10,006 | ||||||
Macerich Co. (The) | 24 | 1,526 | ||||||
Ramco-Gershenson Properties Trust | 245 | 3,978 | ||||||
Regency Centers Corp. | 28 | 1,523 | ||||||
Simon Property Group, Inc. | 384 | 63,198 | ||||||
Taubman Centers, Inc. | 110 | 7,994 | ||||||
|
| |||||||
152,716 | ||||||||
|
| |||||||
Specialized REITs – 24.3% |
| |||||||
CubeSmart | 257 | 4,625 | ||||||
Extra Space Storage, Inc. | 284 | 14,646 | ||||||
HCP, Inc. | 279 | 11,079 | ||||||
Health Care REIT, Inc. | 310 | 19,347 | ||||||
Host Hotels & Resorts, Inc. | 783 | 16,705 | ||||||
LaSalle Hotel Properties | 276 | 9,458 | ||||||
Pebblebrook Hotel Trust | 265 | 9,891 | ||||||
Public Storage, Inc. | 147 | 24,295 | ||||||
RLJ Lodging Trust | 357 | 10,150 | ||||||
Sabra Health Care REIT, Inc. | 156 | 3,787 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialized REITs (Continued) |
| |||||||
Strategic Hotels & Resorts, Inc. (A) | 430 | $ | 5,006 | |||||
Ventas, Inc. | 310 | 19,228 | ||||||
|
| |||||||
148,217 | ||||||||
|
| |||||||
TOTAL COMMON | $ | 604,233 | ||||||
(Cost: $ 461,571) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 0.3% |
| |||||||
Kroger Co. (The), | $ | 1,860 | 1,860 | |||||
|
| |||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit | 1,458 | 1,458 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 0.5% |
| $ | 3,318 | |||||
(Cost: $3,318) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.8% |
| $ | 607,551 | |||||
(Cost: $464,889) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% |
| 1,355 | ||||||
NET ASSETS – 100.0% |
| $ | 608,906 |
36 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Real Estate Securities Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 604,233 | $ | — | $ | — | ||||||
Short-Term Securities | — | 3,318 | — | |||||||||
Total | $ | 604,233 | $ | 3,318 | $ | — |
As of September 30, 2014, 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
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 37 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 94.1% | |||
Information Technology | 65.2% | |||
Health Care | 14.8% | |||
Industrials | 7.5% | |||
Consumer Discretionary | 3.2% | |||
Telecommunication Services | 1.7% | |||
Materials | 0.6% | |||
Financials | 0.6% | |||
Utilities | 0.5% | |||
Warrants | 0.1% | |||
Purchased Options | 0.0% | |||
Cash and Cash Equivalents | 5.8% |
Lipper Rankings
Category: Lipper Science & Technology Funds | Rank | Percentile | ||
1 Year | 113/157 | 72 | ||
3 Year | 6/150 | 4 | ||
5 Year | 15/140 | 11 | ||
10 Year | 4/110 | 4 |
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 | 74.2% | |||
United States | 74.2% | |||
Europe | 9.5% | |||
Pacific Basin | 5.3% | |||
Other | 2.9% | |||
Bahamas/Caribbean | 2.3% | |||
Cash and Cash Equivalents and Options | 5.8% |
Top 10 Equity Holdings
Company | Sector | Industry | ||
Micron Technology, Inc. | Information Technology | Semiconductors | ||
Alliance Data Systems Corp. | Information Technology | Data Processing & Outsourced Services | ||
Vertex Pharmaceuticals, Inc. | Health Care | Biotechnology | ||
Cree, Inc. | Information Technology | Semiconductors | ||
Euronet Worldwide, Inc. | Information Technology | Data Processing & Outsourced Services | ||
Aspen Technology, Inc. | Information Technology | Application Software | ||
iGATE Corp. | Information Technology | IT Consulting & Other Services | ||
Microsoft Corp. | Information Technology | Systems Software | ||
Pentair, Inc. | Industrials | Industrial Machinery | ||
Cerner Corp. | Health Care | Health Care Technology |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
38 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Science and Technology Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Application Software – 7.4% |
| |||||||
ACI Worldwide, | 6,199 | $ | 116,296 | |||||
Aspen Technology, Inc. (A) | 4,491 | 169,395 | ||||||
Globant S.A. (A) | 724 | 10,186 | ||||||
Mobileye N.V. (A) | 410 | 21,983 | ||||||
Qlik Technologies, Inc. (A) | 2,243 | 60,646 | ||||||
Silver Spring Networks, Inc. (A)(B) | 4,810 | 46,414 | ||||||
|
| |||||||
424,920 | ||||||||
|
| |||||||
Biotechnology – 6.7% |
| |||||||
Evogene Ltd. (A)(B) | 1,690 | 22,240 | ||||||
Isis Pharmaceuticals, Inc. (A) | 3,091 | 120,020 | ||||||
Vertex Pharmaceuticals, Inc. (A) | 2,153 | 241,815 | ||||||
|
| |||||||
384,075 | ||||||||
|
| |||||||
Building Products – 0.6% |
| |||||||
Advanced Drainage Systems, Inc. (A) | 1,682 | 35,240 | ||||||
|
| |||||||
Commodity Chemicals – 0.5% |
| |||||||
BioAmber, Inc. (A)(B) | 2,558 | 25,524 | ||||||
|
| |||||||
Communications Equipment – 0.8% |
| |||||||
Ruckus Wireless, Inc. (A) | 3,643 | 48,668 | ||||||
|
| |||||||
Construction & Engineering – 2.2% |
| |||||||
Abengoa S.A., | 5,385 | 28,447 | ||||||
Abengoa S.A., | 3,736 | 99,333 | ||||||
|
| |||||||
127,780 | ||||||||
|
| |||||||
Consumer Electronics – 3.2% |
| |||||||
Garmin Ltd. | 1,367 | 71,076 | ||||||
Harman International Industries, Inc. | 1,125 | 110,275 | ||||||
|
| |||||||
181,351 | ||||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Alliance Data Systems Corp. (A) | 1,053 | 261,403 | ||||||
Euronet Worldwide, Inc. (A)(B) | 3,840 | 183,519 | ||||||
EVERTEC, Inc. | 2,519 | 56,266 | ||||||
QIWI plc ADR | 2,125 | 67,126 | ||||||
WNS (Holdings) Ltd. ADR (A)(B) | 5,625 | 126,620 | ||||||
|
| |||||||
694,934 | ||||||||
|
| |||||||
Electrical Components & |
| |||||||
SolarCity Corp. (A) | 612 | 36,457 | ||||||
|
| |||||||
Electronic Components – 1.7% |
| |||||||
Universal Display Corp. (A) | 2,176 | 71,012 | ||||||
Vishay Intertechnology, Inc. | 1,930 | 27,585 | ||||||
|
| |||||||
98,597 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Electronic Equipment & |
| |||||||
FLIR Systems, Inc. | 1,712 | $ | 53,657 | |||||
|
| |||||||
Fertilizers & Agricultural |
| |||||||
Marrone Bio Innovations, | 2,608 | 6,937 | ||||||
|
| |||||||
Health Care Equipment – 0.9% |
| |||||||
Cardiovascular Systems, Inc. (A) | 766 | 18,103 | ||||||
Volcano Corp. (A)(B) | 3,192 | 33,966 | ||||||
|
| |||||||
52,069 | ||||||||
|
| |||||||
Health Care Facilities – 1.6% |
| |||||||
Tenet Healthcare Corp. (A) | 1,566 | 92,981 | ||||||
|
| |||||||
Health Care Technology – 2.4% |
| |||||||
Cerner Corp. (A) | 2,270 | 135,242 | ||||||
|
| |||||||
Industrial Conglomerates – 1.5% |
| |||||||
Toshiba Corp. (C) | 18,812 | 87,169 | ||||||
|
| |||||||
Industrial Machinery – 2.6% |
| |||||||
Pentair, Inc. | 2,206 | 144,477 | ||||||
|
| |||||||
Integrated Telecommunication |
| |||||||
Windstream Corp. | 3,457 | 37,264 | ||||||
|
| |||||||
Internet Software & Services – 7.6% |
| |||||||
21Vianet Group, Inc. ADR (A) | 1,677 | 30,184 | ||||||
Alibaba Group Holding Ltd. ADR (A) | 691 | 61,422 | ||||||
Facebook, Inc., | 1,636 | 129,293 | ||||||
Google, Inc., | 129 | 75,611 | ||||||
Google, Inc., | 129 | 74,191 | ||||||
Twitter, Inc. (A) | 1,263 | 65,161 | ||||||
|
| |||||||
435,862 | ||||||||
|
| |||||||
IT Consulting & Other Services ��� 5.6% |
| |||||||
Acxiom Corp. (A)(B) | 6,256 | 103,543 | ||||||
EPAM Systems, Inc. (A) | 1,220 | 53,406 | ||||||
iGATE Corp. (A)(B) | 4,571 | 167,832 | ||||||
|
| |||||||
324,781 | ||||||||
|
| |||||||
Office REITs – 0.6% |
| |||||||
QTS Realty Trust, Inc., | 1,214 | 36,848 | ||||||
|
| |||||||
Pharmaceuticals – 3.2% |
| |||||||
Allergan, Inc. | 345 | 61,422 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 2,328 | 125,119 | ||||||
|
| |||||||
186,541 | ||||||||
|
| |||||||
Renewable Electricity – 0.5% |
| |||||||
Abengoa Yield plc (A) | 750 | 26,685 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductor Equipment – 1.4% |
| |||||||
Lam Research Corp. | 441 | $ | 32,942 | |||||
Nanometrics, | 1,438 | 21,721 | ||||||
Photronics, Inc. (A)(B) | 3,231 | 26,011 | ||||||
|
| |||||||
80,674 | ||||||||
|
| |||||||
Semiconductors – 23.8% |
| |||||||
Broadcom Corp., | 745 | 30,117 | ||||||
Cree, Inc. (A) | 4,751 | 194,561 | ||||||
Cypress Semiconductor Corp. | 6,249 | 61,711 | ||||||
Dialog Semiconductor plc (A)(C) | 2,398 | 67,370 | ||||||
Intel Corp. | 1,677 | 58,390 | ||||||
Marvell Technology Group Ltd. | 4,890 | 65,920 | ||||||
Micron Technology, Inc. (A) | 15,865 | 543,529 | ||||||
Microsemi Corp. (A) | 4,020 | 102,138 | ||||||
NXP Semiconductors N.V. (A) | 1,899 | 129,962 | ||||||
Rambus, Inc. (A)(B) | 6,037 | 75,342 | ||||||
Semtech Corp. (A) | 1,444 | 39,196 | ||||||
|
| |||||||
1,368,236 | ||||||||
|
| |||||||
Systems Software – 2.6% |
| |||||||
Microsoft Corp. | 3,263 | 151,291 | ||||||
|
| |||||||
Technology Hardware, Storage & |
| |||||||
Apple, Inc. | 716 | 72,147 | ||||||
|
| |||||||
Wireless Telecommunication |
| |||||||
Sprint Nextel Corp. (A) | 9,435 | 59,816 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 5,410,223 | |||||
(Cost: $3,944,568) | ||||||||
WARRANTS | ||||||||
Commodity Chemicals – 0.1% |
| |||||||
BioAmber, Inc., Expires | 1,276 | 3,126 | ||||||
|
| |||||||
TOTAL WARRANTS – 0.1% |
| $ | 3,126 | |||||
(Cost: $447) |
|
2014 | SEMIANNUAL REPORT | 39 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Science and Technology Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
PURCHASED OPTIONS | Number of Contracts (Unrounded) | Value | ||||||
Intel Corp., | ||||||||
Call $37.00, Expires 1-16-15, OTC (Ctrpty: Credit Suisse (USA), Inc.) | 27,408 | $ | 2,412 | |||||
|
| |||||||
TOTAL PURCHASED |
| $ | 2,412 | |||||
(Cost: $2,567) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 5.0% |
| |||||||
Abbott Laboratories, | ||||||||
0.080%, 10-9-14 (E) | $ | 17,600 | 17,599 | |||||
Air Products and Chemicals, Inc.: | ||||||||
0.100%, 10-15-14 (E) | 6,000 | 6,000 | ||||||
0.100%, 10-17-14 (E) | 10,000 | 10,000 | ||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | ||||||||
0.080%, 10-6-14 (E) | 2,100 | 2,100 | ||||||
Army & Air Force Exchange Service: | ||||||||
0.090%, 10-23-14 (E) | 10,000 | 9,999 | ||||||
0.140%, 11-12-14 (E) | 8,922 | 8,921 | ||||||
0.140%, 11-25-14 (E) | 7,000 | 6,998 | ||||||
Becton Dickinson & Co., | ||||||||
0.160%, 10-8-14 (E) | 5,000 | 5,000 | ||||||
Bemis Co., Inc.: | ||||||||
0.230%, 10-1-14 (E) | 7,100 | 7,100 | ||||||
0.240%, 10-6-14 (E) | 7,000 | 7,000 | ||||||
0.240%, 10-17-14 (E) | 5,000 | 4,999 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG): | ||||||||
0.090%, 10-8-14 (E) | 20,000 | 19,999 | ||||||
0.090%, 10-15-14 (E) | 16,000 | 15,999 | ||||||
0.090%, 10-20-14 (E) | 9,000 | 9,000 | ||||||
BorgWarner, Inc., | ||||||||
0.240%, 10-9-14 (E) | 3,000 | 3,000 | ||||||
Coca-Cola Co. (The), | ||||||||
0.110%, 11-12-14 (E) | 10,500 | 10,499 | ||||||
Diageo Capital plc | ||||||||
0.250%, 10-9-14 (E) | 2,000 | 2,000 | ||||||
0.270%, 10-10-14 (E) | 5,000 | 5,000 | ||||||
DTE Electric Co., | ||||||||
0.180%, 10-8-14 (E) | 21,000 | 20,998 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | ||||||||
0.220%, 10-23-14 (E) | 5,000 | 4,999 | ||||||
Enbridge, Inc., | ||||||||
0.280%, 10-16-14 (E) | 10,000 | 9,999 | ||||||
General Mills, Inc., | ||||||||
0.210%, 10-1-14 (E) | 11,923 | 11,923 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc): | ||||||||
0.090%, 10-21-14 (E) | 9,000 | 9,000 | ||||||
0.130%, 10-28-14 (E) | 8,500 | 8,499 |
SHORT-TERM (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
Kellogg Co., | ||||||||
0.170%, 10-15-14 (E) | $ | 9,000 | $ | 8,999 | ||||
PACCAR Financial Corp. (GTD by PACCAR, Inc.): | ||||||||
0.100%, 10-2-14 (E) | 9,000 | 9,000 | ||||||
0.080%, 10-23-14 (E) | 6,000 | 6,000 | ||||||
Roche Holdings, Inc., | ||||||||
0.090%, 10-14-14 (E) | 15,000 | 14,999 | ||||||
Virginia Electric and Power Co.: | ||||||||
0.210%, 10-1-14 (E) | 10,000 | 10,000 | ||||||
0.230%, 10-16-14 (E) | 4,000 | 4,000 | ||||||
Wisconsin Gas LLC: | ||||||||
0.110%, 10-3-14 (E) | 3,000 | 3,000 | ||||||
0.110%, 10-6-14 (E) | 5,000 | 5,000 | ||||||
0.110%, 10-10-14 (E) | 8,000 | 8,000 | ||||||
|
| |||||||
285,629 | ||||||||
|
| |||||||
Municipal Obligations – Taxable – 0.1% |
| |||||||
Castle Rock, CO, Cert of Part, Ser 2008 (GTD by Wells Fargo Bank N.A.), | ||||||||
0.070%, 10-7-14 (F) | 4,000 | 4,000 | ||||||
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.), | ||||||||
0.030%, 10-7-14 (F) | 1,000 | 1,000 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron USA, Inc. Proj), Ser E (GTD by Chevron Corp.), | ||||||||
0.040%, 10-1-14 (F) | 1,794 | 1,794 | ||||||
NY Hsng Fin Agy, Clinton Park Phase II Hsng Rev Bonds, Ser 2011 A-1 (GTD by Wells Fargo Bank N.A.), | ||||||||
0.050%, 10-7-14 (F) | 916 | 916 | ||||||
|
| |||||||
7,710 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 5.1% |
| $ | 293,339 | |||||
(Cost: $293,341) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.3% |
| $ | 5,709,100 | |||||
(Cost: $4,240,923) | ||||||||
CASH AND OTHER ASSETS, NET OF |
| 40,203 | ||||||
NET ASSETS – 100.0% |
| $ | 5,749,303 |
40 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Science and Technology Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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) | Rate shown is the yield to maturity at September 30, 2014. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
The following written options were outstanding at September 30, 2014 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Expiration Month | Exercise Price | Premium Received | Value | |||||||||||||||||
Intel Corp. | Credit Suisse (USA), Inc. | Put | 32,703 | January 2015 | $ | 31.00 | $ | 1,773 | $ | (1,864 | ) | |||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 5,410,223 | $ | — | $ | — | ||||||
Warrants | — | 3,126 | — | |||||||||
Purchased Options | — | 2,412 | — | |||||||||
Short-Term Securities | — | 293,339 | — | |||||||||
Total | $ | 5,410,223 | $ | 298,877 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | — | $ | 1,864 | $ | — |
During the period ended September 30, 2014, securities totaling $2,399 were transferred from Level 1 to Level 2 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:
ADR = American Depositary Receipts
GTD = Guaranteed
OTC = Over the Counter
REIT = Real Estate Investment Trust
Country Diversification | ||||
(as a % of net assets) | ||||
United States | 74.2 | % | ||
Israel | 2.9 | % | ||
United Kingdom | 2.6 | % | ||
Bermuda | 2.3 | % | ||
Netherlands | 2.3 | % | ||
India | 2.2 | % | ||
Spain | 2.2 | % | ||
China | 1.6 | % | ||
Japan | 1.5 | % | ||
Germany | 1.2 | % | ||
Cyprus | 1.2 | % | ||
Other+ | 5.8 | % |
+ | Includes options, cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 41 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands, except per share amounts) | Ivy Asset Strategy 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 | Ivy Real Estate Securities Fund | |||||||||||||||||||||
ASSETS |
| |||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 28,217,642 | $ | 2,077,291 | $ | 344,094 | $ | 1,548,021 | $ | 28,962 | $ | 44,104 | $ | 607,551 | ||||||||||||||
Investments in affiliated securities at value+ | 3,014,289 | — | — | — | — | — | — | |||||||||||||||||||||
Bullion at value+ | 1,848,230 | — | — | — | — | — | — | |||||||||||||||||||||
Investments at Value | 33,080,161 | 2,077,291 | 344,094 | 1,548,021 | 28,962 | 44,104 | 607,551 | |||||||||||||||||||||
Cash | 5,030 | 1 | 1 | 1 | — | 1 | 1 | |||||||||||||||||||||
Cash denominated in foreign currencies at value+ | 12 | — | — | — | 122 | 335 | — | |||||||||||||||||||||
Investment securities sold receivable | 6,640 | — | — | — | 111 | 149 | 3,178 | |||||||||||||||||||||
Dividends and interest receivable | 87,488 | 5,443 | 219 | 1,471 | 104 | 155 | 2,072 | |||||||||||||||||||||
Capital shares sold receivable | 48,726 | 8,689 | 3,821 | 990 | 47 | 106 | 994 | |||||||||||||||||||||
Receivable from affiliates | 276 | — | — | 26 | 93 | 64 | 2 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 17,025 | — | — | 3,605 | — | — | — | |||||||||||||||||||||
Unrealized appreciation on swap agreements | 4,214 | — | — | — | — | — | — | |||||||||||||||||||||
Prepaid and other assets | 743 | 97 | 60 | 72 | 30 | 32 | 51 | |||||||||||||||||||||
Total Assets | 33,250,315 | 2,091,521 | 348,195 | 1,554,186 | 29,469 | 44,946 | 613,849 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 393,890 | 5,371 | 15,213 | — | 85 | 387 | 3,935 | |||||||||||||||||||||
Capital shares redeemed payable | 90,940 | 3,553 | 648 | 4,044 | 33 | 6 | 662 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 1,387 | 45 | 6 | 721 | — | * | — | * | 91 | |||||||||||||||||||
Overdraft due to custodian | — | — | — | — | 32 | — | — | |||||||||||||||||||||
Distribution and service fees payable | 333 | 26 | 3 | 15 | — | * | 1 | 5 | ||||||||||||||||||||
Shareholder servicing payable | 6,485 | 378 | 91 | 737 | 11 | 10 | 211 | |||||||||||||||||||||
Investment management fee payable | 501 | 38 | 7 | 38 | 1 | 1 | 13 | |||||||||||||||||||||
Accounting services fee payable | 23 | 23 | 9 | 23 | 2 | 3 | 15 | |||||||||||||||||||||
Unrealized depreciation on swap agreements | 20,964 | — | — | — | — | — | — | |||||||||||||||||||||
Written options at value+ | 55,525 | — | — | — | — | — | — | |||||||||||||||||||||
Other liabilities | 457 | 15 | 6 | 39 | 8 | 14 | 11 | |||||||||||||||||||||
Total Liabilities | 570,505 | 9,449 | 15,983 | 5,617 | 172 | 422 | 4,943 | |||||||||||||||||||||
Total Net Assets | $ | 32,679,810 | $ | 2,082,072 | $ | 332,212 | $ | 1,548,569 | $ | 29,297 | $ | 44,524 | $ | 608,906 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 25,181,138 | $ | 1,739,010 | $ | 279,277 | $ | 3,319,627 | $ | 28,530 | $ | 44,156 | $ | 454,290 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | 385,079 | 2,939 | (1,053 | ) | (2,809 | ) | 23 | 82 | 1,254 | |||||||||||||||||||
Accumulated net realized gain (loss) | 4,807,432 | 59,600 | (8,003 | ) | (2,052,600 | ) | 126 | (544 | ) | 10,700 | ||||||||||||||||||
Net unrealized appreciation | 2,306,161 | 280,523 | 61,991 | 284,351 | 618 | 830 | 142,662 | |||||||||||||||||||||
Total Net Assets | $ | 32,679,810 | $ | 2,082,072 | $ | 332,212 | $ | 1,548,569 | $ | 29,297 | $ | 44,524 | $ | 608,906 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 250,372 | 39,205 | 10,309 | 44,664 | 2,433 | 2,698 | 16,651 | |||||||||||||||||||||
Class B | 22,948 | 2,770 | 321 | 1,934 | 23 | 109 | 225 | |||||||||||||||||||||
Class C | 309,317 | 23,879 | 2,616 | 16,168 | 68 | 224 | 595 | |||||||||||||||||||||
Class E | 2,396 | 7 | 10 | 359 | N/A | N/A | 91 | |||||||||||||||||||||
Class I | 441,509 | 10,952 | 3,685 | 13,032 | 241 | 882 | 317 | |||||||||||||||||||||
Class R | 5,595 | 289 | 592 | 2,292 | 45 | 200 | 63 | |||||||||||||||||||||
Class R6 | 332 | 46 | 15 | 246 | N/A | N/A | 116 | |||||||||||||||||||||
Class Y | 45,106 | 6,107 | 2,179 | 4,212 | 68 | 308 | 6,069 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $30.51 | $25.07 | $16.87 | $19.19 | $10.18 | $10.08 | $25.25 | |||||||||||||||||||||
Class B | 29.37 | 24.83 | 15.74 | 16.70 | 10.11 | 10.04 | 24.55 | |||||||||||||||||||||
Class C | 29.52 | 24.90 | 15.97 | 16.31 | 10.11 | 10.03 | 24.85 | |||||||||||||||||||||
Class E | 30.57 | 25.16 | 17.17 | 19.50 | N/A | N/A | 25.24 | |||||||||||||||||||||
Class I | 30.81 | 25.05 | 17.34 | 19.79 | 10.17 | 10.08 | 25.37 | |||||||||||||||||||||
Class R | 30.30 | 25.05 | 16.83 | 18.97 | 10.14 | 10.05 | 25.24 | |||||||||||||||||||||
Class R6 | 30.82 | 25.07 | 17.34 | 19.80 | N/A | N/A | 25.39 | |||||||||||||||||||||
Class Y | 30.57 | 25.07 | 17.06 | 19.53 | 10.24 | 10.08 | 25.26 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 26,327,944 | $ | 1,796,768 | $ | 282,103 | $ | 1,267,284 | $ | 28,342 | $ | 43,265 | $ | 464,889 | ||||||||||||||
Investments in affiliated securities at cost | 2,395,014 | — | — | — | — | — | — | |||||||||||||||||||||
Bullion at cost | 2,067,074 | — | — | — | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies at cost | 12 | — | — | — | 123 | 342 | — | |||||||||||||||||||||
Written options premiums received at cost | 71,998 | — | — | — | — | — | — |
* | Not shown due to rounding. |
(1) | Consolidated Statements of Assets and Liabilities (See Note 6 to Financial Statements). |
See Accompanying Notes to Financial Statements.
42 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands, except per share amounts) | Ivy Science and Technology Fund | |||
ASSETS |
| |||
Investments in unaffiliated securities at value+ | $ | 4,753,135 | ||
Investments in affiliated securities at value+ | 955,965 | |||
Investments at Value | 5,709,100 | |||
Cash | 1 | |||
Investment securities sold receivable | 60,607 | |||
Dividends and interest receivable | 2,943 | |||
Capital shares sold receivable | 23,797 | |||
Receivable from affiliates | 11 | |||
Prepaid and other assets | 227 | |||
Total Assets | 5,796,686 | |||
LIABILITIES | ||||
Investment securities purchased payable | 32,441 | |||
Capital shares redeemed payable | 11,516 | |||
Independent Trustees and Chief Compliance Officer fees payable | 149 | |||
Distribution and service fees payable | 48 | |||
Shareholder servicing payable | 1,180 | |||
Investment management fee payable | 125 | |||
Accounting services fee payable | 23 | |||
Written options at value+ | 1,864 | |||
Other liabilities | 37 | |||
Total Liabilities | 47,383 | |||
Total Net Assets | $ | 5,749,303 | ||
NET ASSETS | ||||
Capital paid in (shares authorized – unlimited) | $ | 4,124,707 | ||
Distributions in excess of net investment income | (25,387 | ) | ||
Accumulated net realized gain | 181,878 | |||
Net unrealized appreciation | 1,468,105 | |||
Total Net Assets | $ | 5,749,303 | ||
CAPITAL SHARES OUTSTANDING: | ||||
Class A | 36,295 | |||
Class B | 1,485 | |||
Class C | 18,215 | |||
Class E | 342 | |||
Class I | 29,874 | |||
Class R | 1,999 | |||
Class R6 | 149 | |||
Class Y | 17,965 | |||
NET ASSET VALUE PER SHARE: | ||||
Class A | $53.53 | |||
Class B | 46.27 | |||
Class C | 47.78 | |||
Class E | 53.34 | |||
Class I | 57.84 | |||
Class R | 52.77 | |||
Class R6 | 57.85 | |||
Class Y | 56.07 | |||
+COST | ||||
Investments in unaffiliated securities at cost | $ | 3,396,470 | ||
Investments in affiliated securities at cost | 844,453 | |||
Written options premiums received at cost | 1,773 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 43 |
Table of Contents
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands) | Ivy Asset Strategy 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 | Ivy Real Estate Securities Fund | |||||||||||||||||||||
INVESTMENT INCOME |
| |||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 359,633 | $ | 11,326 | $ | 1,476 | $ | 11,879 | $ | 423 | $ | 710 | $ | 6,694 | ||||||||||||||
Dividends from affiliated securities | 26,449 | — | — | — | — | — | — | |||||||||||||||||||||
Foreign dividend withholding tax | (11,412 | ) | (13 | ) | (41 | ) | (412 | ) | (29 | ) | (45 | ) | — | |||||||||||||||
Interest and amortization from unaffiliated securities | 74,045 | 6,286 | 9 | 15 | — | * | — | * | 4 | |||||||||||||||||||
Foreign interest withholding tax | (1 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Total Investment Income | 448,714 | 17,599 | 1,444 | 11,482 | 394 | 665 | 6,698 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 98,077 | 6,666 | 1,213 | 7,587 | 138 | 200 | 2,765 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 11,422 | 1,171 | 202 | 1,252 | 31 | 31 | 527 | |||||||||||||||||||||
Class B | 3,706 | 349 | 27 | 188 | 1 | 5 | 30 | |||||||||||||||||||||
Class C | 48,696 | 2,834 | 185 | 1,461 | 3 | 11 | 75 | |||||||||||||||||||||
Class E | 95 | — | * | — | * | 9 | N/A | N/A | 3 | |||||||||||||||||||
Class R | 424 | 14 | 20 | 116 | 1 | 5 | 4 | |||||||||||||||||||||
Class Y | 1,858 | 190 | 42 | 114 | 1 | 4 | 198 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 5,631 | 721 | 224 | 1,676 | 46 | 38 | 781 | |||||||||||||||||||||
Class B | 460 | 48 | 9 | 95 | — | * | — | * | 18 | |||||||||||||||||||
Class C | 4,924 | 282 | 27 | 360 | 1 | 1 | 26 | |||||||||||||||||||||
Class E | 101 | — | * | — | * | 29 | N/A | N/A | 9 | |||||||||||||||||||
Class I | 10,844 | 193 | 32 | 217 | 1 | 8 | 8 | |||||||||||||||||||||
Class R | 217 | 7 | 10 | 60 | 1 | 3 | 2 | |||||||||||||||||||||
Class R6 | — | * | — | * | — | * | — | * | N/A | N/A | — | * | ||||||||||||||||
Class Y | 1,163 | 117 | 26 | 79 | 1 | 2 | 118 | |||||||||||||||||||||
Registration fees | 299 | 93 | 52 | 57 | 36 | 37 | 56 | |||||||||||||||||||||
Custodian fees | 809 | 12 | 4 | 19 | 16 | 11 | 8 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 467 | 25 | 3 | 49 | — | * | — | * | 10 | |||||||||||||||||||
Accounting services fee | 137 | 136 | 51 | 136 | 16 | 15 | 88 | |||||||||||||||||||||
Professional fees | 397 | 22 | 15 | 36 | 20 | 20 | 24 | |||||||||||||||||||||
Other | 1,473 | 127 | 11 | 99 | 8 | 16 | 27 | |||||||||||||||||||||
Total Expenses | 191,200 | 13,007 | 2,153 | 13,639 | 321 | 407 | 4,777 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (276 | ) | — | — | (26 | ) | (93 | ) | (64 | ) | (310 | ) | ||||||||||||||||
Total Net Expenses | 190,924 | 13,007 | 2,153 | 13,613 | 228 | 343 | 4,467 | |||||||||||||||||||||
Net Investment Income (Loss) | 257,790 | 4,592 | (709 | ) | (2,131 | ) | 166 | 322 | 2,231 | |||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 3,185,200 | 40,826 | 502 | 56,687 | 328 | 168 | 19,203 | |||||||||||||||||||||
Investments in affiliated securities | 931,639 | — | — | — | — | — | — | |||||||||||||||||||||
Futures contracts | (309 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Written options | 76,143 | — | — | — | — | — | — | |||||||||||||||||||||
Swap agreements | 14,636 | — | — | — | — | — | — | |||||||||||||||||||||
Forward foreign currency contracts | (6,252 | ) | — | — | (2,042 | ) | — | — | — | |||||||||||||||||||
Foreign currency exchange transactions | 317 | — | (13 | ) | (60 | ) | (3 | ) | (18 | ) | — | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | (3,899,702 | ) | 8,436 | 889 | (40,787 | ) | 441 | 819 | (281 | ) | ||||||||||||||||||
Investments in affiliated securities | (1,721,699 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Written options | (4,137 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Swap agreements | (16,750 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Forward foreign currency contracts | (19,207 | ) | — | — | 5,445 | — | — | — | ||||||||||||||||||||
Foreign currency exchange transactions | (1,316 | ) | — | — | * | (45 | ) | (3 | ) | (11 | ) | — | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (1,461,437 | ) | 49,262 | 1,378 | 19,198 | 763 | 958 | 18,922 | ||||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,203,647 | ) | $ | 53,854 | $ | 669 | $ | 17,067 | $ | 929 | $ | 1,280 | $ | 21,153 |
* | Not shown due to rounding. |
(1) | Consolidated Statements of Operations (See Note 6 to Financial Statements). |
See Accompanying Notes to Financial Statements.
44 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF OPERATIONS
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands) | Ivy Science and Technology Fund | |||
INVESTMENT INCOME |
| |||
Dividends from unaffiliated securities | $ | 19,955 | ||
Foreign dividend withholding tax | (323 | ) | ||
Interest and amortization from unaffiliated securities | 207 | |||
Total Investment Income | 19,839 | |||
EXPENSES | ||||
Investment management fee | 22,168 | |||
Distribution and service fees: | ||||
Class A | 2,524 | |||
Class B | 347 | |||
Class C | 4,150 | |||
Class E | 22 | |||
Class R | 261 | |||
Class Y | 1,262 | |||
Shareholder servicing: | ||||
Class A | 1,900 | |||
Class B | 66 | |||
Class C | 567 | |||
Class E | 42 | |||
Class I | 1,196 | |||
Class R | 134 | |||
Class R6 | — | * | ||
Class Y | 786 | |||
Registration fees | 174 | |||
Custodian fees | 64 | |||
Independent Trustees and Chief Compliance Officer fees | 73 | |||
Accounting services fee | 136 | |||
Professional fees | 47 | |||
Other | 370 | |||
Total Expenses | 36,289 | |||
Less: | ||||
Expenses in excess of limit | (12 | ) | ||
Total Net Expenses | 36,277 | |||
Net Investment Loss | (16,438 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||
Net realized gain (loss) on: | ||||
Investments in unaffiliated securities | 106,148 | |||
Written options | 101 | |||
Foreign currency exchange transactions | (35 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments in unaffiliated securities | 26,479 | |||
Investments in affiliated securities | (38,102 | ) | ||
Written options | (91 | ) | ||
Foreign currency exchange transactions | 4 | |||
Net Realized and Unrealized Gain | 94,504 | |||
Net Increase in Net Assets Resulting from Operations | $ | 78,066 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 45 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Asset Strategy Fund(1) | Ivy Balanced Fund | Ivy Energy Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS |
| |||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 257,790 | $ | 241,115 | $ | 4,592 | $ | 5,620 | $ | (709 | ) | $ | (1,011 | ) | ||||||||||
Net realized gain on investments | 4,201,374 | 3,493,502 | 40,826 | 42,818 | 489 | 7,857 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (5,662,811 | ) | 1,152,914 | 8,436 | 142,574 | 889 | 21,482 | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (1,203,647 | ) | 4,887,531 | 53,854 | 191,012 | 669 | 28,328 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | (43,848 | ) | (1,746 | ) | (2,994 | ) | — | — | |||||||||||||||
Class B | — | (79 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (2,514 | ) | — | — | — | — | |||||||||||||||||
Class E | — | (321 | ) | — | * | (1 | ) | — | — | |||||||||||||||
Class I | — | (75,738 | ) | (810 | ) | (1,040 | ) | — | — | |||||||||||||||
Class R | — | (360 | ) | (3 | ) | (3 | ) | — | — | |||||||||||||||
Class R6 | — | N/A | — | * | N/A | — | N/A | |||||||||||||||||
Class Y | — | (6,832 | ) | (284 | ) | (546 | ) | — | — | |||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (16,300 | ) | — | — | |||||||||||||||||
Class B | — | — | — | (1,308 | ) | — | — | |||||||||||||||||
Class C | — | — | — | (8,900 | ) | — | — | |||||||||||||||||
Class E | — | — | — | (4 | ) | — | — | |||||||||||||||||
Class I | — | — | — | (3,661 | ) | — | — | |||||||||||||||||
Class R | — | — | — | (42 | ) | — | — | |||||||||||||||||
Class R6 | — | N/A | — | N/A | — | N/A | ||||||||||||||||||
Class Y | — | — | — | (2,848 | ) | — | — | |||||||||||||||||
Total Distributions to Shareholders | — | (129,692 | ) | (2,843 | ) | (37,647 | ) | — | — | |||||||||||||||
Capital Share Transactions | (1,712,355 | ) | 2,918,600 | 207,513 | 826,413 | 135,221 | 48,700 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (2,916,002 | ) | 7,676,439 | 258,524 | 979,778 | 135,890 | 77,028 | |||||||||||||||||
Net Assets, Beginning of Period | 35,595,812 | 27,919,373 | 1,823,548 | 843,770 | 196,322 | 119,294 | ||||||||||||||||||
Net Assets, End of Period | $ | 32,679,810 | $ | 35,595,812 | $ | 2,082,072 | $ | 1,823,548 | $ | 332,212 | $ | 196,322 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 385,079 | $ | 126,972 | $ | 2,939 | $ | 1,190 | $ | (1,053 | ) | $ | (331 | ) |
* | 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.
46 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Global Natural Resources Fund | Ivy Global Real Estate Fund | Ivy Global Risk-Managed Real Estate Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (2,131 | ) | $ | (2,713 | ) | $ | 166 | $ | 188 | $ | 322 | $ | 368 | ||||||||||
Net realized gain (loss) on investments | 54,585 | 141,503 | 325 | (193 | ) | 150 | (723 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | (35,387 | ) | (49,084 | ) | 438 | 180 | 808 | 22 | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 17,067 | 89,706 | 929 | 175 | 1,280 | (333 | ) | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | — | (66 | ) | (313 | ) | (97 | ) | (292 | ) | ||||||||||||||
Class B | — | — | — | (2 | ) | (1 | ) | (10 | ) | |||||||||||||||
Class C | — | — | — | (5 | ) | (3 | ) | (22 | ) | |||||||||||||||
Class E | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I | — | — | (4 | ) | (4 | ) | (34 | ) | (134 | ) | ||||||||||||||
Class R | — | — | — | * | (33 | ) | (4 | ) | (23 | ) | ||||||||||||||
Class R6 | — | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | (2 | ) | (10 | ) | (13 | ) | (50 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | — | — | — | ||||||||||||||||||
Class B | — | — | — | — | — | — | ||||||||||||||||||
Class C | — | — | — | — | — | — | ||||||||||||||||||
Class E | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class I | — | — | — | — | — | — | ||||||||||||||||||
Class R | — | — | — | — | — | — | ||||||||||||||||||
Class R6 | — | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | — | — | — | — | ||||||||||||||||||
Total Distributions to Shareholders | — | — | (72 | ) | (367 | ) | (152 | ) | (531 | ) | ||||||||||||||
Capital Share Transactions | (169,067 | ) | (970,474 | ) | 2,702 | 25,930 | 7,252 | 37,008 | ||||||||||||||||
Net Increase (Decrease) in Net Assets | (152,000 | ) | (880,768 | ) | 3,559 | 25,738 | 8,380 | 36,144 | ||||||||||||||||
Net Assets, Beginning of Period | 1,700,569 | 2,581,337 | 25,738 | — | 36,144 | — | ||||||||||||||||||
Net Assets, End of Period | $ | 1,548,569 | $ | 1,700,569 | $ | 29,297 | $ | 25,738 | $ | 44,524 | $ | 36,144 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (2,809 | ) | $ | (618 | ) | $ | 23 | $ | (68 | ) | $ | 82 | $ | (70 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 47 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Real Estate Securities Fund | Ivy Science and Technology Fund | |||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 2,231 | $ | 4,086 | $ | (16,438 | ) | $ | (24,717 | ) | ||||||
Net realized gain on investments | 19,203 | 29,208 | 106,214 | 148,531 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (281 | ) | (14,829 | ) | (11,710 | ) | 899,332 | |||||||||
Net Increase in Net Assets Resulting from Operations | 21,153 | 18,465 | 78,066 | 1,023,146 | ||||||||||||
Distributions to Shareholders From: | ||||||||||||||||
Net investment income: | ||||||||||||||||
Class A | (657 | ) | (3,489 | ) | — | — | ||||||||||
Class B | — | — | — | — | ||||||||||||
Class C | — | (45 | ) | — | — | |||||||||||
Class E | (1 | ) | (17 | ) | — | — | ||||||||||
Class I | (50 | ) | (107 | ) | — | — | ||||||||||
Class R | (1 | ) | (13 | ) | — | — | ||||||||||
Class R6 | (4 | ) | N/A | — | N/A | |||||||||||
Class Y | (561 | ) | (1,829 | ) | — | — | ||||||||||
Net realized gains: | ||||||||||||||||
Class A | — | — | — | (40,239 | ) | |||||||||||
Class B | — | — | — | (1,989 | ) | |||||||||||
Class C | — | — | — | (17,037 | ) | |||||||||||
Class E | — | — | — | (375 | ) | |||||||||||
Class I | — | — | — | (24,363 | ) | |||||||||||
Class R | — | — | — | (2,392 | ) | |||||||||||
Class R6 | — | N/A | — | N/A | ||||||||||||
Class Y | — | — | — | (22,454 | ) | |||||||||||
Total Distributions to Shareholders | (1,274 | ) | (5,500 | ) | — | (108,849 | ) | |||||||||
Capital Share Transactions | 30,325 | 3,410 | 250,226 | 2,490,373 | ||||||||||||
Net Increase in Net Assets | 50,204 | 16,375 | 328,292 | 3,404,670 | ||||||||||||
Net Assets, Beginning of Period | 558,702 | 542,327 | 5,421,011 | 2,016,341 | ||||||||||||
Net Assets, End of Period | $ | 608,906 | $ | 558,702 | $ | 5,749,303 | $ | 5,421,011 | ||||||||
Undistributed (distributions in excess of) net investment income | $ | 1,254 | $ | 297 | $ | (25,387 | ) | $ | (8,914 | ) |
See Accompanying Notes to Financial Statements.
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2014 | SEMIANNUAL REPORT | 49 |
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Ivy Funds | FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD |
IVY ASSET STRATEGY FUND
Net Asset Value, 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 9-30-2014 (unaudited) | $ | 31.61 | $ | 0.24 | $ | (1.34 | ) | $ | (1.10 | ) | $ | — | $ | — | $ | — | ||||||||||||
Year ended 3-31-2014 | 27.04 | 0.27 | 4.45 | 4.72 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.54 | 0.13 | (1.30 | ) | (1.17 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 26.20 | 0.05 | 4.29 | 4.34 | — | * | — | — | * | |||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.69 | 0.13 | (1.30 | ) | (1.17 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 26.33 | 0.05 | 4.32 | 4.37 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
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 | — | — | — | |||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 31.67 | 0.25 | (1.35 | ) | (1.10 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 27.10 | 0.26 | 4.45 | 4.71 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 31.88 | 0.29 | (1.36 | ) | (1.07 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 27.25 | 0.34 | 4.48 | 4.82 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 31.45 | 0.20 | (1.35 | ) | (1.15 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 26.94 | 0.16 | 4.43 | 4.59 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 31.79 | 0.22 | (1.19 | ) | (0.97 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 31.67 | 0.25 | (1.35 | ) | (1.10 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 27.09 | 0.27 | 4.46 | 4.73 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
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 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
50 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | Ratio of Net Investment Income to Average Net Assets Excluding Expense Waiver(3) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 30.51 | -3.48 | % | $ | 7,640 | 0.95 | %(4) | 1.54 | %(4) | — | % | — | % | 47 | % | ||||||||||||||||
Year ended 3-31-2014 | 31.61 | 17.47 | 9,659 | 0.96 | 0.92 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.37 | -3.83 | 674 | 1.70 | (4) | 0.84 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 30.54 | 16.58 | 783 | 1.71 | 0.16 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.52 | -3.81 | 9,131 | 1.68 | (4) | 0.88 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 30.69 | 16.59 | 9,880 | 1.68 | 0.19 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.57 | -3.47 | 73 | 1.00 | (4) | 1.57 | (4) | 1.10 | (4) | 1.47 | (4) | 47 | ||||||||||||||||||||
Year ended 3-31-2014 | 31.67 | 17.40 | 74 | 1.00 | 0.87 | 1.12 | 0.75 | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.81 | -3.36 | 13,603 | 0.73 | (4) | 1.85 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 31.88 | 17.72 | 13,522 | 0.73 | 1.14 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.30 | -3.66 | 170 | 1.33 | (4) | 1.25 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 31.45 | 17.03 | 162 | 1.33 | 0.54 | — | — | 65 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 30.82 | -3.05 | 10 | 0.57 | (4) | 4.62 | (4) | — | — | 47 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 30.57 | -3.47 | 1,379 | 0.95 | (4) | 1.59 | (4) | 0.98 | (4) | 1.56 | (4) | 47 | ||||||||||||||||||||
Year ended 3-31-2014 | 31.67 | 17.47 | 1,516 | 0.96 | 0.92 | 0.98 | 0.90 | 65 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 51 |
Table of Contents
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)(1) | 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 9-30-2014 (unaudited) | $ | 24.38 | $ | 0.08 | $ | 0.66 | $ | 0.74 | $ | (0.05 | ) | $ | — | $ | (0.05 | ) | ||||||||||||
Year ended 3-31-2014 | 21.60 | 0.15 | 3.25 | 3.40 | (0.10 | ) | (0.52 | ) | (0.62 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 20.03 | 0.19 | 1.70 | 1.89 | (0.17 | ) | (0.15 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.08 | 0.17 | 1.05 | 1.22 | (0.18 | ) | (0.09 | ) | (0.27 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.73 | 0.18 | 2.34 | 2.52 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 13.01 | 0.21 | 3.72 | 3.93 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.19 | (0.01 | ) | 0.65 | 0.64 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 21.45 | (0.03 | ) | 3.23 | 3.20 | — | (0.46 | ) | (0.46 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.93 | 0.03 | 1.69 | 1.72 | (0.05 | ) | (0.15 | ) | (0.20 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 18.99 | 0.02 | 1.05 | 1.07 | (0.04 | ) | (0.09 | ) | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.67 | 0.04 | 2.33 | 2.37 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 12.97 | 0.08 | 3.71 | 3.79 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.26 | 0.00 | 0.64 | 0.64 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 21.50 | (0.01 | ) | 3.24 | 3.23 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.98 | 0.05 | 1.68 | 1.73 | (0.06 | ) | (0.15 | ) | (0.21 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.03 | 0.04 | 1.06 | 1.10 | (0.06 | ) | (0.09 | ) | (0.15 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.69 | 0.07 | 2.34 | 2.41 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 12.98 | 0.12 | 3.71 | 3.83 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.48 | 0.10 | 0.64 | 0.74 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 21.68 | 0.18 | 3.27 | 3.45 | (0.13 | ) | (0.52 | ) | (0.65 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 20.02 | 0.22 | 1.78 | 2.00 | (0.19 | ) | (0.15 | ) | (0.34 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.06 | 0.21 | 1.04 | 1.25 | (0.20 | ) | (0.09 | ) | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.74 | 0.22 | 2.34 | 2.56 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 13.02 | 0.25 | 3.72 | 3.97 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.36 | 0.11 | 0.66 | 0.77 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 21.58 | 0.21 | 3.26 | 3.47 | (0.16 | ) | (0.53 | ) | (0.69 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 20.01 | 0.24 | 1.69 | 1.93 | (0.21 | ) | (0.15 | ) | (0.36 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.04 | 0.22 | 1.06 | 1.28 | (0.22 | ) | (0.09 | ) | (0.31 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.74 | 0.21 | 2.37 | 2.58 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 13.01 | 0.20 | 3.80 | 4.00 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.37 | 0.04 | 0.65 | 0.69 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 21.59 | 0.07 | 3.26 | 3.33 | (0.03 | ) | (0.52 | ) | (0.55 | ) | ||||||||||||||||||
Year ended 3-31-2013(6) | 20.16 | 0.00 | 1.43 | 1.43 | — | — | — | |||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(7) | 24.66 | 0.04 | 0.40 | 0.44 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.38 | 0.08 | 0.66 | 0.74 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 21.60 | 0.15 | 3.26 | 3.41 | (0.10 | ) | (0.53 | ) | (0.63 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 20.03 | 0.19 | 1.70 | 1.89 | (0.17 | ) | (0.15 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.08 | 0.18 | 1.05 | 1.23 | (0.19 | ) | (0.09 | ) | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 16.73 | 0.20 | 2.34 | 2.54 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 13.01 | 0.24 | 3.71 | 3.95 | (0.23 | ) | — | (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) | Annualized. |
(4) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(5) | Class share 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 period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
(8) | For the fiscal year ended March 31, 2013. |
52 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | Investment Income (Loss) to Average Net Assets Including Expense Waiver | Portfolio Turnover Rate | |||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 25.07 | 3.02 | % | $ | 983 | 1.12 | %(3) | 0.66 | %(3) | 17 | % | ||||||||||||
Year ended 3-31-2014 | 24.38 | 15.90 | 863 | 1.15 | 0.62 | 34 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.83 | 2.64 | 69 | 1.85 | (3) | -0.08 | (3) | 17 | ||||||||||||||||
Year ended 3-31-2014 | 24.19 | 15.01 | 70 | 1.89 | -0.11 | 34 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.90 | 2.64 | 595 | 1.81 | (3) | -0.04 | (3) | 17 | ||||||||||||||||
Year ended 3-31-2014 | 24.26 | 15.11 | 524 | 1.84 | -0.06 | 34 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.16 | 3.04 | — | * | 0.98 | (3) | 0.80 | (3) | 17 | |||||||||||||||
Year ended 3-31-2014 | 24.48 | 16.10 | — | * | 1.00 | 0.78 | 34 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.05 | 3.15 | 274 | 0.87 | (3) | 0.91 | (3) | 17 | ||||||||||||||||
Year ended 3-31-2014 | 24.36 | 16.21 | 211 | 0.88 | 0.89 | 34 | ||||||||||||||||||
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 | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.05 | 2.84 | 7 | 1.47 | (3) | 0.31 | (3) | 17 | ||||||||||||||||
Year ended 3-31-2014 | 24.37 | 15.51 | 4 | 1.47 | 0.29 | 34 | ||||||||||||||||||
Year ended 3-31-2013(6) | 21.59 | 7.09 | — | * | 1.48 | (3) | 0.02 | (3) | 35 | (8) | ||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(7) | 25.07 | 1.80 | 1 | 0.74 | (3) | 1.02 | (3) | 17 | ||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.07 | 3.02 | 153 | 1.12 | (3) | 0.66 | (3) | 17 | ||||||||||||||||
Year ended 3-31-2014 | 24.38 | 15.91 | 152 | 1.13 | 0.64 | 34 | ||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 53 |
Table of Contents
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) | 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 9-30-2014 (unaudited) | $ | 16.38 | $ | (0.04 | ) | $ | 0.53 | $ | 0.49 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 13.74 | (0.09 | ) | 2.73 | 2.64 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.35 | (0.10 | ) | 0.49 | 0.39 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 12.98 | (0.19 | ) | 2.56 | 2.37 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.55 | (0.09 | ) | 0.51 | 0.42 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.12 | (0.16 | ) | 2.59 | 2.43 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.65 | (0.02 | ) | 0.54 | 0.52 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.92 | (0.04 | ) | 2.77 | 2.73 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.80 | (0.01 | ) | 0.55 | 0.54 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 14.03 | (0.02 | ) | 2.79 | 2.77 | — | — | — | ||||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.35 | (0.06 | ) | 0.54 | 0.48 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.74 | (0.11 | ) | 2.72 | 2.61 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013(7) | 12.26 | (0.03 | ) | 1.51 | 1.48 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 18.03 | 0.00 | (0.69 | ) | (0.69 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.55 | (0.03 | ) | 0.54 | 0.51 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.86 | (0.06 | ) | 2.75 | 2.69 | — | — | — | ||||||||||||||||||||
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 | — | — | — |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class share is closed to investment. |
(7) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
(9) | For the fiscal year ended March 31, 2013. |
54 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | 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 9-30-2014 (unaudited) | $ | 16.87 | 2.99 | % | $ | 174 | 1.46 | %(4) | -0.46 | %(4) | — | % | — | % | 5 | % | ||||||||||||||||
Year ended 3-31-2014 | 16.38 | 19.13 | 124 | 1.60 | -0.59 | — | — | 34 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.74 | 2.54 | 5 | 2.27 | (4) | -1.28 | (4) | — | — | 5 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.35 | 18.26 | 5 | 2.38 | -1.37 | — | — | 34 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.97 | 2.70 | 42 | 2.09 | (4) | -1.09 | (4) | — | — | 5 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.55 | 18.43 | 30 | 2.16 | -1.15 | — | — | 34 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.17 | 3.12 | — | * | 1.21 | (4) | -0.22 | (4) | — | — | 5 | |||||||||||||||||||||
Year ended 3-31-2014 | 16.65 | 19.53 | — | * | 1.25 | -0.25 | — | — | 34 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.34 | 3.21 | 64 | 1.09 | (4) | -0.05 | (4) | — | — | 5 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.80 | 19.74 | 14 | 1.14 | -0.12 | — | — | 34 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.83 | 2.94 | 10 | 1.69 | (4) | -0.68 | (4) | — | — | 5 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.35 | 19.00 | 5 | 1.72 | -0.70 | — | — | 34 | ||||||||||||||||||||||||
Year ended 3-31-2013(7) | 13.74 | 12.07 | — | * | 1.73 | (4) | -0.91 | (4) | — | — | 30 | (9) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 17.34 | -3.83 | — | * | 0.93 | (4) | 0.12 | (4) | — | — | 5 | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.06 | 3.08 | 37 | 1.34 | (4) | -0.36 | (4) | — | — | 5 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.55 | 19.41 | 18 | 1.39 | -0.38 | — | — | 34 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 55 |
Table of Contents
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)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions | Distributions From Net Realized Gains | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 19.07 | $ | (0.02 | ) | $ | 0.14 | $ | 0.12 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 17.84 | (0.02 | ) | 1.25 | 1.23 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 17.76 | (0.03 | ) | 0.14 | 0.11 | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 24.20 | (0.01 | ) | (6.43 | ) | (6.44 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 18.60 | (0.04 | ) | 5.64 | 5.60 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 11.08 | (0.10 | ) | 7.62 | 7.52 | — | — | — | ||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.67 | (0.10 | ) | 0.13 | 0.03 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 15.73 | (0.15 | ) | 1.09 | 0.94 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 15.76 | (0.14 | ) | 0.11 | (0.03 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2012 | 21.65 | (0.15 | ) | (5.74 | ) | (5.89 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 16.77 | (0.18 | ) | 5.06 | 4.88 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 10.08 | (0.21 | ) | 6.90 | 6.69 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.26 | (0.07 | ) | 0.12 | 0.05 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 15.31 | (0.11 | ) | 1.06 | 0.95 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 15.31 | (0.11 | ) | 0.11 | 0.00 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 21.00 | (0.12 | ) | (5.57 | ) | (5.69 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 16.25 | (0.15 | ) | 4.90 | 4.75 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 9.75 | (0.18 | ) | 6.68 | 6.50 | — | — | — | ||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.36 | 0.01 | 0.13 | 0.14 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 18.06 | 0.04 | 1.26 | 1.30 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2013 | 17.96 | 0.01 | 0.15 | 0.16 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.45 | 0.01 | (6.50 | ) | (6.49 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2011 | 18.76 | (0.02 | ) | 5.71 | 5.69 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 11.16 | (0.07 | ) | 7.67 | 7.60 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.63 | 0.03 | 0.13 | 0.16 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 18.28 | 0.07 | 1.28 | 1.35 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2013 | 18.19 | 0.06 | 0.14 | 0.20 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.69 | 0.06 | (6.56 | ) | (6.50 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2011 | 18.90 | 0.02 | 5.77 | 5.79 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 11.22 | (0.04 | ) | 7.72 | 7.68 | — | — | — | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.87 | (0.03 | ) | 0.13 | 0.10 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 17.67 | (0.04 | ) | 1.24 | 1.20 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 17.58 | (0.05 | ) | 0.14 | 0.09 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 24.00 | (0.05 | ) | (6.37 | ) | (6.42 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 18.47 | (0.08 | ) | 5.61 | 5.53 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 11.02 | (0.12 | ) | 7.57 | 7.45 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014(6) | 20.86 | 0.04 | (1.10 | ) | (1.06 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.39 | 0.00 | 0.14 | 0.14 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 18.10 | 0.02 | 1.27 | 1.29 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2013 | 18.02 | 0.02 | 0.13 | 0.15 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.50 | 0.03 | (6.51 | ) | (6.48 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2011 | 18.79 | (0.01 | ) | 5.72 | 5.71 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 11.17 | (0.06 | ) | 7.68 | 7.62 | — | — | — |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
56 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 19.19 | 0.63 | % | $ | 858 | 1.52 | %(4) | -0.19 | %(4) | — | % | — | % | 10 | % | ||||||||||||||||
Year ended 3-31-2014 | 19.07 | 6.90 | 1,008 | 1.56 | -0.09 | — | — | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.70 | 0.18 | 32 | 2.44 | (4) | -1.11 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.67 | 5.98 | 40 | 2.41 | -0.95 | — | — | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.31 | 0.31 | 264 | 2.17 | (4) | -0.84 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.26 | 6.21 | 291 | 2.18 | -0.72 | — | — | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.50 | 0.72 | 7 | 1.27 | (4) | 0.07 | (4) | 1.97 | (4) | -0.63 | (4) | 10 | ||||||||||||||||||||
Year ended 3-31-2014 | 19.36 | 7.20 | 7 | 1.27 | 0.20 | 2.12 | -0.64 | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.79 | 0.81 | 258 | 1.11 | (4) | 0.26 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.63 | 7.39 | 224 | 1.08 | 0.37 | — | — | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.97 | 0.53 | 43 | 1.68 | (4) | -0.33 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2014 | 18.87 | 6.79 | 43 | 1.67 | -0.20 | — | — | 100 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014(6) | 19.80 | -5.08 | 5 | 0.92 | (4) | 1.24 | (4) | — | — | 10 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.53 | 0.72 | 82 | 1.35 | (4) | -0.01 | (4) | — | — | 10 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.39 | 7.07 | 88 | 1.33 | 0.10 | — | — | 100 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 57 |
Table of Contents
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 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 9-30-2014 (unaudited) | $ | 9.83 | $ | 0.06 | $ | 0.32 | $ | 0.38 | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | ||||||||||||
Year ended 3-31-2014 | 10.00 | 0.11 | (0.12 | ) | (0.01 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.79 | 0.00 | * | 0.32 | 0.32 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.00 | * | (0.12 | ) | (0.12 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.80 | 0.00 | * | 0.31 | 0.31 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.00 | * | (0.11 | ) | (0.11 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.82 | 0.06 | 0.31 | 0.37 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.09 | (0.11 | ) | (0.02 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.81 | 0.02 | 0.32 | 0.34 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.04 | (0.11 | ) | (0.07 | ) | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.89 | 0.06 | 0.32 | 0.38 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.11 | (0.05 | ) | 0.06 | (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) | Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Ratio of expenses to average net assets excluding offering cost was 2.40%. |
(7) | Ratio of expenses to average net assets excluding offering cost was 2.39%. |
(8) | Ratio of expenses to average net assets excluding offering cost was 1.43%. |
(9) | Ratio of expenses to average net assets excluding offering cost was 1.99%. |
58 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 10.18 | 3.84 | % | $ | 25 | 1.51 | %(4) | 1.20 | %(4) | 2.23 | %(4) | 0.48 | %(4) | 29 | % | ||||||||||||||||
Year ended 3-31-2014 | 9.83 | 0.02 | 22 | 1.51 | 1.12 | 2.62 | 0.01 | 36 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.11 | 3.27 | — | * | 2.68 | (4) | 0.02 | (4) | 2.76 | (4) | (0.06 | )(4) | 29 | |||||||||||||||||||
Year ended 3-31-2014 | 9.79 | -1.16 | — | * | 2.68 | (6) | -0.02 | 3.14 | -0.48 | 36 | ||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.11 | 3.16 | 1 | 2.70 | (4) | (0.06 | )(4) | 2.78 | (4) | (0.14 | )(4) | 29 | ||||||||||||||||||||
Year ended 3-31-2014 | 9.80 | -1.03 | 1 | 2.67 | (7) | 0.00 | 3.12 | -0.45 | 36 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.17 | 3.75 | 2 | 1.59 | (4) | 1.09 | (4) | 1.67 | (4) | 1.01 | (4) | 29 | ||||||||||||||||||||
Year ended 3-31-2014 | 9.82 | -0.13 | 2 | 1.71 | (8) | 0.94 | 2.16 | 0.49 | 36 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.14 | 3.41 | — | * | 2.25 | (4) | 0.48 | (4) | 2.33 | (4) | 0.40 | (4) | 29 | |||||||||||||||||||
Year ended 3-31-2014 | 9.81 | -0.67 | — | * | 2.27 | (9) | 0.38 | 2.73 | -0.08 | 36 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.24 | 3.82 | 1 | 1.51 | (4) | 1.20 | (4) | 1.99 | (4) | 0.72 | (4) | 29 | ||||||||||||||||||||
Year ended 3-31-2014 | 9.89 | 0.68 | �� | 1 | 1.51 | 1.13 | 2.37 | 0.27 | 36 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 59 |
Table of Contents
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 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 9-30-2014 (unaudited) | $ | 9.72 | $ | 0.09 | $ | 0.31 | $ | 0.40 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | ||||||||||||
Year ended 3-31-2014 | 10.00 | 0.13 | (0.24 | ) | (0.11 | ) | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.70 | 0.04 | 0.31 | 0.35 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.03 | (0.23 | ) | (0.20 | ) | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.70 | 0.04 | 0.30 | 0.34 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.03 | (0.23 | ) | (0.20 | ) | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.72 | 0.08 | 0.32 | 0.40 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.12 | (0.24 | ) | (0.12 | ) | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.70 | 0.05 | 0.32 | 0.37 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.06 | (0.24 | ) | (0.18 | ) | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.72 | 0.09 | 0.31 | 0.40 | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.00 | 0.13 | (0.24 | ) | (0.11 | ) | (0.17 | ) | — | (0.17 | ) |
(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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Ratio of expenses to average net assets excluding offering cost was 2.15%. |
(7) | Ratio of expenses to average net assets excluding offering cost was 1.27%. |
(8) | Ratio of expenses to average net assets excluding offering cost was 1.88%. |
60 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, (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 9-30-2014 (unaudited) | $ | 10.08 | 4.13 | % | $ | 28 | 1.51 | %(4) | 1.66 | %(4) | 1.99 | %(4) | 1.18 | %(4) | 19 | % | ||||||||||||||||
Year ended 3-31-2014 | 9.72 | -1.00 | 20 | 1.51 | 1.39 | 2.08 | 0.82 | 38 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.04 | 3.63 | 1 | 2.42 | (4) | 0.74 | (4) | — | — | 19 | ||||||||||||||||||||||
Year ended 3-31-2014 | 9.70 | -1.92 | 1 | 2.53 | (6) | 0.32 | 2.58 | 0.27 | 38 | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.03 | 3.52 | 2 | 2.46 | (4) | 0.70 | (4) | — | — | 19 | ||||||||||||||||||||||
Year ended 3-31-2014 | 9.70 | -1.91 | 2 | 2.53 | (6) | 0.33 | 2.58 | 0.28 | 38 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.08 | 4.10 | 9 | 1.58 | (4) | 1.58 | (4) | — | — | 19 | ||||||||||||||||||||||
Year ended 3-31-2014 | 9.72 | -1.09 | 8 | 1.65 | (7) | 1.20 | 1.70 | 1.15 | 38 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.05 | 3.82 | 2 | 2.17 | (4) | 0.99 | (4) | — | — | 19 | ||||||||||||||||||||||
Year ended 3-31-2014 | 9.70 | -1.72 | 2 | 2.26 | (8) | 0.60 | 2.31 | 0.55 | 38 | |||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.08 | 4.13 | 3 | 1.51 | (4) | 1.65 | (4) | 1.82 | 1.34 | 19 | ||||||||||||||||||||||
Year ended 3-31-2014 | 9.72 | -0.98 | 3 | 1.50 | 1.35 | 1.95 | 0.90 | 38 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 61 |
Table of Contents
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)(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 9-30-2014 (unaudited) | $ | 24.35 | $ | 0.09 | $ | 0.85 | $ | 0.94 | $ | (0.04 | ) | $ | — | $ | (0.04 | ) | ||||||||||||
Year ended 3-31-2014 | 23.73 | 0.16 | 0.69 | 0.85 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 21.27 | 0.16 | 2.45 | 2.61 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.42 | 0.09 | 1.82 | 1.91 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.95 | 0.03 | 3.62 | 3.65 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.31 | 0.19 | 7.64 | 7.83 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.77 | (0.04 | ) | 0.82 | 0.78 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 23.17 | (0.06 | ) | 0.66 | 0.60 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 20.85 | (0.06 | ) | 2.38 | 2.32 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.20 | (0.12 | ) | 1.77 | 1.65 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 15.82 | (0.17 | ) | 3.57 | 3.40 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.24 | 0.03 | 7.56 | 7.59 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.02 | 0.00 | * | 0.83 | 0.83 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 23.42 | 0.00 | * | 0.67 | 0.67 | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 21.00 | 0.01 | 2.42 | 2.43 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.27 | (0.05 | ) | 1.78 | 1.73 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 15.86 | (0.10 | ) | 3.59 | 3.49 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.26 | 0.09 | 7.60 | 7.69 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.35 | 0.06 | 0.85 | 0.91 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 23.72 | 0.13 | 0.70 | 0.83 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 21.27 | 0.14 | 2.46 | 2.60 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.43 | 0.10 | 1.81 | 1.91 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.96 | 0.03 | 3.63 | 3.66 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.32 | 0.19 | 7.70 | 7.89 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.50 | 0.14 | 0.87 | 1.01 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 23.85 | 0.28 | 0.69 | 0.97 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 21.37 | 0.24 | 2.51 | 2.75 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.52 | 0.22 | 1.80 | 2.02 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 16.00 | 0.17 | 3.61 | 3.78 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.34 | 0.06 | 7.90 | 7.96 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.35 | 0.07 | 0.84 | 0.91 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 23.73 | 0.15 | 0.68 | 0.83 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 21.27 | 0.15 | 2.44 | 2.59 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.43 | 0.09 | 1.81 | 1.90 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.95 | (0.01 | ) | 3.68 | 3.67 | (0.19 | ) | — | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.31 | 0.15 | 7.73 | 7.88 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 26.13 | 0.04 | (0.74 | ) | (0.70 | ) | (0.04 | ) | — | (0.04 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.39 | 0.12 | 0.84 | 0.96 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 23.75 | 0.24 | 0.68 | 0.92 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 21.28 | 0.23 | 2.45 | 2.68 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 19.44 | 0.16 | 1.81 | 1.97 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.95 | 0.10 | 3.62 | 3.72 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.31 | 0.26 | 7.66 | 7.92 | (0.28 | ) | — | (0.28 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
62 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 25.25 | 3.86 | % | $ | 420 | 1.49 | %(4) | 0.69 | %(4) | 1.59 | %(4) | 0.59 | %(4) | 25 | % | ||||||||||||||||
Year ended 3-31-2014 | 24.35 | 3.65 | 384 | 1.56 | 0.67 | 1.66 | 0.57 | 73 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.55 | 3.28 | 6 | 2.47 | (4) | (0.33 | )(4) | 2.57 | (4) | (0.43 | )(4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 23.77 | 2.59 | 6 | 2.61 | -0.28 | 2.71 | -0.38 | 73 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.85 | 3.46 | 15 | 2.21 | (4) | (0.03 | )(4) | 2.31 | (4) | (0.13 | )(4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 24.02 | 2.90 | 14 | 2.27 | 0.02 | 2.37 | -0.08 | 73 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.24 | 3.72 | 2 | 1.67 | (4) | 0.49 | (4) | 1.99 | (4) | 0.17 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 24.35 | 3.58 | 2 | 1.67 | 0.54 | 2.15 | 0.06 | 73 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.37 | 4.09 | 8 | 1.02 | (4) | 1.10 | (4) | 1.12 | (4) | 1.00 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 24.50 | 4.20 | 9 | 1.02 | 1.18 | 1.12 | 1.08 | 73 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.24 | 3.72 | 2 | 1.65 | (4) | 0.53 | (4) | 1.75 | (4) | 0.43 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 24.35 | 3.58 | 1 | 1.66 | 0.62 | 1.76 | 0.52 | 73 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 25.39 | -2.70 | 3 | 0.86 | (4) | 0.93 | (4) | 0.96 | (4) | 0.83 | (4) | 25 | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.26 | 3.93 | 153 | 1.26 | (4) | 0.92 | (4) | 1.36 | (4) | 0.82 | (4) | 25 | ||||||||||||||||||||
Year ended 3-31-2014 | 24.39 | 3.97 | 143 | 1.27 | 1.03 | 1.37 | 0.93 | 73 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 63 |
Table of Contents
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)(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 9-30-2014 (unaudited) | $ | 52.71 | $ | (0.15 | ) | $ | 0.97 | $ | 0.82 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 39.79 | (0.30 | ) | 14.54 | 14.24 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 33.54 | (0.27 | ) | 6.71 | 6.44 | �� | — | (0.19 | ) | (0.19 | ) | |||||||||||||||||
Year ended 3-31-2012 | 35.09 | (0.32 | ) | 0.93 | 0.61 | — | (2.16 | ) | (2.16 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 29.35 | (0.25 | ) | 6.39 | 6.14 | — | (0.40 | ) | (0.40 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 21.07 | (0.07 | ) | 8.52 | 8.45 | — | (0.17 | ) | (0.17 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 45.73 | (0.30 | ) | 0.84 | 0.54 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 34.92 | (0.59 | ) | 12.72 | 12.13 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 29.69 | (0.48 | ) | 5.90 | 5.42 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 31.58 | (0.53 | ) | 0.77 | 0.24 | — | (2.13 | ) | (2.13 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 26.62 | (0.47 | ) | 5.75 | 5.28 | — | (0.32 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 19.19 | (0.31 | ) | 7.74 | 7.43 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 47.21 | (0.30 | ) | 0.87 | 0.57 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 35.99 | (0.58 | ) | 13.12 | 12.54 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 30.57 | (0.47 | ) | 6.08 | 5.61 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 32.41 | (0.51 | ) | 0.80 | 0.29 | — | (2.13 | ) | (2.13 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 27.29 | (0.44 | ) | 5.91 | 5.47 | — | (0.35 | ) | (0.35 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 19.65 | (0.26 | ) | 7.93 | 7.67 | — | (0.03 | ) | (0.03 | ) | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 52.57 | (0.19 | ) | 0.96 | 0.77 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 39.74 | (0.38 | ) | 14.53 | 14.15 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 33.48 | (0.29 | ) | 6.74 | 6.45 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 35.04 | (0.33 | ) | 0.92 | 0.59 | — | (2.15 | ) | (2.15 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 29.33 | (0.26 | ) | 6.38 | 6.12 | — | (0.41 | ) | (0.41 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 21.05 | (0.06 | ) | 8.52 | 8.46 | — | (0.18 | ) | (0.18 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 56.87 | (0.08 | ) | 1.05 | 0.97 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 42.72 | (0.19 | ) | 15.66 | 15.47 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 35.88 | (0.17 | ) | 7.20 | 7.03 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 37.36 | (0.23 | ) | 1.01 | 0.78 | — | (2.26 | ) | (2.26 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 31.16 | (0.16 | ) | 6.80 | 6.64 | — | (0.44 | ) | (0.44 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 22.33 | 0.01 | 9.05 | 9.06 | — | (0.23 | ) | (0.23 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 52.04 | (0.23 | ) | 0.96 | 0.73 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 39.42 | (0.46 | ) | 14.40 | 13.94 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 33.32 | (0.36 | ) | 6.65 | 6.29 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 34.93 | (0.40 | ) | 0.92 | 0.52 | — | (2.13 | ) | (2.13 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 29.27 | (0.32 | ) | 6.37 | 6.05 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 21.02 | (0.13 | ) | 8.52 | 8.39 | — | (0.14 | ) | (0.14 | ) | ||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 57.21 | (0.02 | ) | 0.66 | 0.64 | — | — | — | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 55.20 | (0.14 | ) | 1.01 | 0.87 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 41.60 | (0.31 | ) | 15.23 | 14.92 | — | (1.32 | ) | (1.32 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 35.03 | (0.26 | ) | 7.02 | 6.76 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 36.54 | (0.31 | ) | 0.98 | 0.67 | — | (2.18 | ) | (2.18 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 30.54 | (0.23 | ) | 6.65 | 6.42 | — | (0.42 | ) | (0.42 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 21.90 | (0.04 | ) | 8.87 | 8.83 | — | (0.19 | ) | (0.19 | ) |
(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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
64 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 53.53 | 1.56 | % | $ | 1,943 | 1.26 | %(4) | -0.55 | %(4) | — | % | — | % | 16 | % | ||||||||||||||||
Year ended 3-31-2014 | 52.71 | 35.99 | 1,998 | 1.26 | -0.63 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 46.27 | 1.18 | 69 | 2.02 | (4) | -1.30 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 45.73 | 34.91 | 71 | 2.04 | -1.42 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 47.78 | 1.21 | 870 | 1.96 | (4) | -1.25 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 47.21 | 35.02 | 776 | 1.97 | -1.34 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 53.34 | 1.46 | 18 | 1.43 | (4) | -0.72 | (4) | 1.56 | (4) | -0.85 | (4) | 16 | ||||||||||||||||||||
Year ended 3-31-2014 | 52.57 | 35.80 | 17 | 1.43 | -0.80 | 1.63 | -1.00 | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 57.84 | 1.71 | 1,728 | 0.98 | (4) | -0.27 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 56.87 | 36.37 | 1,411 | 0.99 | -0.36 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 52.77 | 1.40 | 105 | 1.58 | (4) | -0.86 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 52.04 | 35.56 | 105 | 1.59 | -0.96 | — | — | 35 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 57.85 | 1.12 | 9 | 0.82 | (4) | -0.20 | (4) | — | — | 16 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 56.07 | 1.58 | 1,007 | 1.23 | (4) | -0.52 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 55.20 | 36.02 | 1,043 | 1.24 | -0.61 | — | — | 35 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 65 |
Table of Contents
Ivy Funds | SEPTEMBER 30, 2014 (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 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 eight 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 (“SAI”). 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. Effective January 1, 2014, the Funds’ Class B shares are not available for purchase by new and existing investors. Class B shares will continue to be available for dividend reinvestment and exchanges from Class B shares of another fund within Ivy Funds. Certain Funds may also offer Class E shares. Class E shares are closed for all investments in the Ivy Balanced Fund and Ivy Energy Fund. Certain Funds may also offer Class R6 shares. Class A and Class E shares are sold at their offering price, which is normally net asset value (“NAV”) plus a front-end sales charge. For Class A shares, a 1% contingent deferred sales charge (“CDSC”) is only imposed on shares purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class R, Class R6 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 NAV 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 and Class R6 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 typically 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, 2014, 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 2009.
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.
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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.
Loans. Certain Funds may invest in loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrower”). Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, LIBOR rates or certificates of deposit rates. Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Loans are exempt from registration under the Securities Act of 1933, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.
When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender. When a Fund purchases a participation of a loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation. A participation interest in loans includes the right to receive payments of principal, interest and any fees to which it is entitled from the lender and only upon receipt by the lender of payments from the Borrower, but not from the Borrower directly. When investing in a participation interest, if a Borrower is unable to meet its obligations under a loan agreement, a Fund generally has no right to enforce compliance with the terms of the loan agreement. As a result, the Fund assumes the credit risk of the Borrower, the selling participant, and any other persons that are interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters Federal Deposit Insurance Corporation (“FDIC”) receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and/or interest.
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.
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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 NAV 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.
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.
Independent Trustees and Chief Compliance Officer Fees. Fees paid to the Independent 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.
Basis of Preparation. Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The accompanying financial statements were prepared in accordance with U.S. GAAP, including but not limited to ASC 946. U.S. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.
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 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 procedures approved by 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.
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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 procedures 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 in accordance with the procedures adopted by 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 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.
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 provided by an independent pricing service. 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.
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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. OTC derivative products valued using pricing models with significant observable inputs 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.
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.
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 primarily 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 primarily 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, 2014, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated securities.
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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 provided by an independent pricing service 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 portfolio securities. The cost of instruments acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from instruments 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 written call option is exercised, the premium is added to the proceeds from the sale of the underlying instrument 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 instruments 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 instrument. With written options, there may be times when a Fund will be required to purchase or sell instruments 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 instrument. 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.
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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. 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 financial instruments subject to master netting agreements as of September 30, 2014:
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 Receivable | |||||||||||||||||||||
Asset Strategy Fund | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value* | $13,167 | $— | $13,167 | $(8,689) | $— | $(530) | $3,948 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts(1) | 19,057 | — | 19,057 | — | (18,082) | — | 975 | |||||||||||||||||||||
Unrealized appreciation on swap agreements | 4,214 | — | 4,214 | — | (4,214) | — | — | |||||||||||||||||||||
Total | $36,438 | $— | $36,438 | $(8,689) | $(22,296) | $(530) | $4,923 | |||||||||||||||||||||
Global Natural Resources Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $3,605 | $— | $3,605 | $— | $(3,151) | $— | $454 | |||||||||||||||||||||
Science and Technology Fund | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value* | $2,412 | $— | $2,412 | $(1,864) | $— | $— | $548 |
*Purchased | options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities. |
(1) | Amounts include forward currency contracts that have an offset to an open and close contract, but have not settled. These amounts are included on the Statement of Assets and Liabilities line item for Investment securities sold receivable. |
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 Payable | |||||||||||||||||||||
Asset Strategy Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on swap agreements | $20,964 | $— | $20,964 | $— | $(7,796) | $— | $13,168 | |||||||||||||||||||||
Written options at value | 28,211 | — | 28,211 | (8,689) | (19,522) | — | — | |||||||||||||||||||||
Total | $49,175 | $— | $49,175 | $(8,689) | $(27,318) | $— | $13,168 | |||||||||||||||||||||
Science and Technology Fund | ||||||||||||||||||||||||||||
Written options at value | $1,864 | $— | $1,864 | $(1,864) | $— | $— | $— |
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Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of September 30, 2014:
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* | $27,085 | Written options at value | $55,525 | |||||||||||
Equity | Unrealized appreciation on swap agreements | 4,214 | Unrealized depreciation on swap agreements | 20,964 | ||||||||||||
Foreign currency | Unrealized appreciation on forward foreign currency contracts | 17,025 | — | |||||||||||||
Ivy Global Natural Resources Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 3,605 | — | ||||||||||||
Ivy Science and Technology Fund | Equity | Investments in unaffiliated securities at value* | 2,412 | Written options at value | 1,864 |
* | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2014:
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 | Equity | $ | (93,996 | ) | $ | 14,636 | $ | (309 | ) | $ | 76,143 | $ | — | $ | (3,526 | ) | ||||||||||
Foreign currency | — | — | — | — | (6,252 | ) | (6,252 | ) | ||||||||||||||||||
Ivy Global Natural Resources Fund | Foreign currency | — | — | — | — | (2,042 | ) | (2,042 | ) | |||||||||||||||||
Ivy Science and Technology Fund | Equity | (604 | ) | — | — | 101 | — | (503 | ) |
* | 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, 2014:
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 | $ | (11,357 | ) | $ | (16,750 | ) | $ | — | $ | (4,137 | ) | $ | — | $ | (32,244 | ) | |||||||||
Foreign currency | — | — | — | — | (19,207 | ) | (19,207 | ) | ||||||||||||||||||
Ivy Global Natural Resources Fund | Foreign currency | — | — | — | — | 5,445 | 5,445 | |||||||||||||||||||
Ivy Science and Technology Fund | Equity | (155 | ) | — | — | (91 | ) | — | (246 | ) |
* | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
During the period ended September 30, 2014, 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 | $ | 1,953,479 | $ | 1,945,809 | $— | $— | $ | 1,555,333 | $ | 53,215 | $ | 37,158 | ||||||||||||
Ivy Global Natural Resources Fund | 159,591 | 159,459 | — | — | — | — | — | |||||||||||||||||
Ivy Science and Technology Fund | — | — | — | — | — | 603 | 369 |
(1) | Average value outstanding during the period. |
(2) | Average notional amount outstanding during the period. |
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 total return swaps and option contracts on foreign and domestic equity indices. To manage foreign currency exposure, the Fund utilized forward foreign currency contracts and option contracts to either increase or decrease exposure to a given currency. To manage event risks, the Fund utilized option contracts, both written and purchased, on individual equity securities owned by the Fund.
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Ivy Global Natural Resources 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 foreign currency contracts to either increase or decrease exposure to a given currency.
Ivy Science and Technology 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 options, both written and purchased, on individual equity securities owned by the Fund and on domestic equity indices.
5. | WRITTEN OPTION ACTIVITY ($ amounts in thousands) |
Transactions in written options were as follows:
Fund | Outstanding at 3-31-14 | Options written | Options closed | Options exercised | Options expired | Outstanding at 9-30-14 | ||||||||||||||||||
Ivy Asset Strategy Fund |
| |||||||||||||||||||||||
Number of Contracts | 254,312 | 14,714,213 | (14,472,012 | ) | (23,839 | ) | (431,621 | ) | 41,053 | |||||||||||||||
Premium Received | $ | 60,246 | $ | 127,178 | $ | (50,982 | ) | $ | (660 | ) | $ | (63,784 | ) | $ | 71,998 | |||||||||
Ivy Science and Technology Fund | ||||||||||||||||||||||||
Number of Contracts | — | 42,633 | (9,930 | ) | — | — | 32,703 | |||||||||||||||||
Premium Received | $ | — | $ | 2,545 | $ | (772 | ) | $ | — | $ | — | $ | 1,773 |
6. | BASIS FOR CONSOLIDATION OF THE IVY ASSET STRATEGY FUND |
Ivy ASF II, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the Ivy Asset Strategy Fund (referred to as “the Fund” in this subsection). Ivy ASF III (SBP), LLC and Ivy ASF, LLC (each a “Company”, collectively “the Companies”), Delaware limited liability companies, were incorporated as wholly owned companies acting as investment vehicles for the Fund. Each Subsidiary and Company acts as an investment vehicle for the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and SAI.
The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund, its Subsidiary and the Companies. The consolidated financial statements include the accounts of the Fund and its Subsidiary and the Companies. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary and each Company comprising the entire issued share capital of the Subsidiary and each 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 each Company confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and each 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 each Company.
See the table below for details regarding the structure, incorporation and relationship as of September 30, 2014 of each Subsidiary and Company to the Fund (amounts in thousands).
Subsidiary/Company | Date of Incorporation | Subscription Agreement | Fund Net Assets | Subsidiary Net Assets | Percentage of Fund Net Assets | |||||||||||||||
Ivy ASF II, Ltd. | 1-31-13 | 4-10-13 | $ | 32,679,810 | $ | 1,853,235 | 5.67 | % | ||||||||||||
Ivy ASF III (SBP), LLC | 4-9-13 | 4-23-13 | 32,679,810 | 818,645 | 2.51 | |||||||||||||||
Ivy ASF, LLC | 12-10-12 | 12-18-12 | 32,679,810 | 355,787 | 1.09 |
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 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, 2014.
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IICO has entered into Subadvisory Agreements with the following entities on behalf of certain Funds:
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 and Administrative 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. For Class R6 shares, each Fund pays WISC a monthly fee equal to one-twelfth of 0.01 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 NAV 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.
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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, 2014, 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 | $ | 1,893 | $ | 151 | $ | 493 | $ | 485 | $ | — | $ | 5,752 | ||||||||||||
Ivy Balanced Fund | 685 | 3 | 53 | 42 | — | 1,058 | ||||||||||||||||||
Ivy Energy Fund | 163 | — | * | 3 | 2 | — | 177 | |||||||||||||||||
Ivy Global Natural Resources Fund | 300 | 1 | 23 | 4 | — | 311 | ||||||||||||||||||
Ivy Global Real Estate Fund | 17 | — | — | — | * | — | 15 | |||||||||||||||||
Ivy Global Risk-Managed Real Estate Fund | 26 | — | — | — | * | — | 24 | |||||||||||||||||
Ivy Real Estate Securities Fund | 226 | 1 | 3 | 1 | — | 216 | ||||||||||||||||||
Ivy Science and Technology Fund | 884 | 7 | 42 | 92 | — | 1,601 |
* | 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, 2014 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 | 7-31-2015 | 1.00% | $ | 36 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | 240 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Balanced Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Energy Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Global Natural Resources Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.27% | $ | 26 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Global Real Estate Fund | All Classes | Contractual | 4-1-2013 | 7-31-2015 | N/A | $ | 12 | (1) | Investment Management Fee | |||||||
Class A | Contractual | 4-1-2013 | 7-31-2015 | 1.51% | $ | 80 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 4-1-2013 | 7-31-2015 | Not to exceed Class A | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Global Risk-Managed Real Estate Fund | Class A | Contractual | 4-1-2013 | 7-31-2015 | 1.51% | $ | 59 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 4-1-2013 | 7-31-2015 | Not to exceed Class A | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Real Estate Securities Fund | All Classes | Contractual | 12-3-2012 | 7-31-2015 | N/A | $ | 307 | (2) | Investment Management Fee | |||||||
Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.67% | $ | 3 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Science and Technology Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.43% | $ | 12 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | 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, 2015. |
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Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2014 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.
8. | INTERFUND LENDING PROGRAM |
Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2014.
9. | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2014 follows:
3-31-14 Balance | Purchases at Cost | Sales at Cost | Realized Gain/(Loss) | Distributions Received | 9-30-14 Share Balance | 9-30-14 Value | ||||||||||||||||||||||
Ivy Asset Strategy Fund |
| |||||||||||||||||||||||||||
Advanced Micro Devices, Inc.(1) | — | $ | 186,521 | $ | — | $ | — | $ | — | 45,986 | $ | 156,813 | ||||||||||||||||
Galaxy Entertainment Group | 229,601 | — | — | — | 20,738 | 229,601 | 1,333,575 | |||||||||||||||||||||
Legend Pictures LLC(1) | 190 | — | — | — | — | 190 | 355,766 | |||||||||||||||||||||
Media Group Holdings LLC(1) | 381 | — | — | — | — | 381 | 818,616 | |||||||||||||||||||||
Wynn Resorts Ltd.(2) | 5,551 | — | 203,347 | 931,639 | 5,711 | — | N/A | |||||||||||||||||||||
$ | 931,639 | $ | 26,449 | $ | 2,664,770 | |||||||||||||||||||||||
3-31-14 Principal Balance | Interest Received | 9-30-14 Principal Balance | ||||||||||||||||||||||||||
Legendary Pictures Funding LLC and Legendary Finance, Inc., 8.000%, 3-15-18 | $ | 351,700 | $ | — | $ | — | $ | — | $ | — | $ | 351,700 | $ | 349,519 |
3-31-14 Share Balance | Purchases at Cost | Sales at Cost | Realized Gain/(Loss) | Distributions Received | 9-30-14 Share Balance | 9-30-14 Value | ||||||||||||||||||||||
Ivy Science and Technology Fund |
| |||||||||||||||||||||||||||
ACI Worldwide, Inc.(1) | 1,858 | $ | 12,116 | $ | — | $ | — | $ | — | 6,199 | $ | 116,296 | ||||||||||||||||
Acxiom Corp.(1) | 4,710 | 33,307 | — | — | — | 6,256 | 103,543 | |||||||||||||||||||||
BioAmber, Inc.(1) | 1,352 | 14,464 | — | — | — | 2,558 | 25,524 | |||||||||||||||||||||
Euronet Worldwide, Inc.(1) | 3,387 | 21,981 | — | — | — | 3,840 | 183,519 | |||||||||||||||||||||
Evogene Ltd.(1) | 1,120 | 8,036 | — | — | — | 1,690 | 22,240 | |||||||||||||||||||||
iGATE Corp.(1) | 4,341 | 8,193 | — | — | — | 4,571 | 167,832 | |||||||||||||||||||||
Marrone Bio Innovations, Inc.(1) | 967 | 15,549 | — | — | — | 2,608 | 6,937 | |||||||||||||||||||||
Nanometrics, Inc.(1) | 1,438 | — | — | — | — | 1,438 | 21,721 | |||||||||||||||||||||
Photronics, Inc.(1) | 3,231 | — | — | — | — | 3,231 | 26,011 | |||||||||||||||||||||
Rambus, Inc.(1) | 5,675 | 4,396 | — | — | — | 6,037 | 75,342 | |||||||||||||||||||||
Silver Spring Networks, Inc.(1) | 4,810 | — | — | — | — | 4,810 | 46,414 | |||||||||||||||||||||
Volcano Corp.(1) | 3,192 | — | — | — | — | 3,192 | 33,966 | |||||||||||||||||||||
WNS (Holdings) Ltd. ADR(1) | 5,625 | — | — | — | — | 5,625 | 126,620 | |||||||||||||||||||||
$ | — | $ | — | $ | 955,965 |
(1) | No dividends were paid during the preceding 12 months. |
(2) | No longer affiliated as September 30, 2014. |
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10. 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, 2014, were as follows:
Purchases | Sales | |||||||||||||||
U.S. Government | Other Issuers | U.S. Government | Other Issuers | |||||||||||||
Ivy Asset Strategy Fund | $ | — | $ | 11,777,882 | $ | — | $ | 14,804,164 | ||||||||
Ivy Balanced Fund | — | 507,088 | 3,105 | 323,428 | ||||||||||||
Ivy Energy Fund | — | 143,549 | — | 13,965 | ||||||||||||
Ivy Global Natural Resources Fund | — | 172,037 | — | 343,852 | ||||||||||||
Ivy Global Real Estate Fund | — | 11,369 | — | 8,128 | ||||||||||||
Ivy Global Risk-Managed Real Estate Fund | — | 15,313 | — | 7,901 | ||||||||||||
Ivy Real Estate Securities Fund | — | 185,949 | — | 152,490 | ||||||||||||
Ivy Science and Technology Fund | — | 1,119,112 | — | 865,061 |
11. | 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 Balanced Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 26,850 | $ | 843,717 | 77,215 | $ | 2,309,512 | 7,832 | $ | 195,504 | 21,491 | $ | 496,715 | ||||||||||||||||||||
Class B | 118 | 3,554 | 2,100 | 58,879 | 91 | 2,259 | 1,091 | 24,765 | ||||||||||||||||||||||||
Class C | 17,641 | 537,652 | 50,077 | 1,458,935 | 4,016 | 99,711 | 11,836 | 272,313 | ||||||||||||||||||||||||
Class E | 196 | 6,176 | 409 | 12,210 | 7 | 178 | — | — | ||||||||||||||||||||||||
Class I | 86,499 | 2,756,139 | 149,067 | 4,492,790 | 3,404 | 84,833 | 6,506 | 150,951 | ||||||||||||||||||||||||
Class R | 1,046 | 32,756 | 1,885 | 55,805 | 177 | 4,422 | 179 | 4,271 | ||||||||||||||||||||||||
Class R6 | 335 | 10,767 | N/A | N/A | 47 | 1,180 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 5,669 | 178,708 | 14,825 | 444,314 | 733 | 18,234 | 3,247 | 75,937 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 1,278 | 39,548 | 65 | 1,631 | 770 | 18,009 | ||||||||||||||||||||||||
Class B | — | — | 2 | 59 | — | — | 47 | 1,094 | ||||||||||||||||||||||||
Class C | — | — | 62 | 1,862 | — | * | — | * | 304 | 7,092 | ||||||||||||||||||||||
Class E | — | — | 10 | 321 | — | * | 1 | — | * | 5 | ||||||||||||||||||||||
Class I | — | — | 1,508 | 47,035 | 25 | 638 | 149 | 3,486 | ||||||||||||||||||||||||
Class R | — | — | 10 | 302 | — | * | 2 | 1 | 31 | |||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | * | — | * | N/A | N/A | ||||||||||||||||||||||
Class Y | — | — | 192 | 5,949 | 10 | 240 | 126 | 2,955 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (82,018 | ) | (2,589,275 | ) | (63,367 | ) | (1,857,767 | ) | (4,067 | ) | (101,719 | ) | (5,306 | ) | (123,386 | ) | ||||||||||||||||
Class B | (2,800 | ) | (84,936 | ) | (3,752 | ) | (107,194 | ) | (202 | ) | (4,980 | ) | (308 | ) | (7,104 | ) | ||||||||||||||||
Class C | (30,227 | ) | (922,294 | ) | (44,308 | ) | (1,263,248 | ) | (1,722 | ) | (42,769 | ) | (1,995 | ) | (46,197 | ) | ||||||||||||||||
Class E | (142 | ) | (4,461 | ) | (228 | ) | (6,765 | ) | (7 | ) | (178 | ) | — | — | ||||||||||||||||||
Class I | (69,092 | ) | (2,195,770 | ) | (81,707 | ) | (2,433,058 | ) | (1,157 | ) | (28,884 | ) | (1,059 | ) | (24,795 | ) | ||||||||||||||||
Class R | (603 | ) | (18,863 | ) | (1,341 | ) | (38,906 | ) | (48 | ) | (1,193 | ) | (33 | ) | (751 | ) | ||||||||||||||||
Class R6 | (3 | ) | (82 | ) | N/A | N/A | (1 | ) | (17 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (8,448 | ) | (266,143 | ) | (10,226 | ) | (301,983 | ) | (874 | ) | (21,580 | ) | (1,251 | ) | (28,978 | ) | ||||||||||||||||
Net increase (decrease) | (54,979 | ) | $ | (1,712,355 | ) | 93,711 | $ | 2,918,600 | 8,329 | $ | 207,513 | 35,795 | $ | 826,413 |
* | Not shown due to rounding. |
78 | SEMIANNUAL REPORT | 2014 |
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Ivy Energy Fund | Ivy Global Natural Resources Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 4,443 | $ | 77,571 | 3,770 | $ | 55,011 | 2,974 | $ | 59,631 | 7,105 | $ | 124,963 | ||||||||||||||||||||
Class B | 52 | 851 | 66 | 922 | 20 | 345 | 80 | 1,228 | ||||||||||||||||||||||||
Class C | 884 | 14,760 | 852 | 11,867 | 379 | 6,503 | 828 | 12,463 | ||||||||||||||||||||||||
Class E | 10 | 188 | — | — | 23 | 465 | 51 | 920 | ||||||||||||||||||||||||
Class I | 3,443 | 62,430 | 735 | 11,287 | 3,890 | 81,431 | 3,074 | 55,588 | ||||||||||||||||||||||||
Class R | 377 | 6,609 | 292 | 4,452 | 375 | 7,482 | 447 | 7,789 | ||||||||||||||||||||||||
Class R6 | 15 | 279 | N/A | N/A | 250 | 5,316 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 1,853 | 33,103 | 1,057 | 16,026 | 375 | 7,608 | 927 | 16,459 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class B | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class C | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class R | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,749 | ) | (30,731 | ) | (2,047 | ) | (30,275 | ) | (11,155 | ) | (224,671 | ) | (31,349 | ) | (550,725 | ) | ||||||||||||||||
Class B | (55 | ) | (890 | ) | (69 | ) | (967 | ) | (510 | ) | (8,878 | ) | (2,026 | ) | (31,165 | ) | ||||||||||||||||
Class C | (171 | ) | (2,822 | ) | (398 | ) | (5,501 | ) | (2,078 | ) | (35,499 | ) | (9,749 | ) | (146,779 | ) | ||||||||||||||||
Class E | (10 | ) | (188 | ) | — | — | (26 | ) | (525 | ) | (67 | ) | (1,205 | ) | ||||||||||||||||||
Class I | (571 | ) | (10,296 | ) | (364 | ) | (5,557 | ) | (2,268 | ) | (46,818 | ) | (18,133 | ) | (321,832 | ) | ||||||||||||||||
Class R | (67 | ) | (1,175 | ) | (31 | ) | (451 | ) | (354 | ) | (7,051 | ) | (1,010 | ) | (17,588 | ) | ||||||||||||||||
Class R6 | — | — | N/A | N/A | (5 | ) | (95 | ) | N/A | N/A | ||||||||||||||||||||||
Class Y | (797 | ) | (14,468 | ) | (542 | ) | (8,114 | ) | (701 | ) | (14,311 | ) | (6,679 | ) | (120,590 | ) | ||||||||||||||||
Net increase (decrease) | 7,657 | $ | 135,221 | 3,321 | $ | 48,700 | (8,811 | ) | $ | (169,067 | ) | (56,501 | ) | $ | (970,474 | ) |
Ivy Global Real Estate Fund | Ivy Global Risk-Managed Real Estate Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 951 | $ | 10,019 | 2,636 | $ | 26,145 | 868 | $ | 8,979 | 3,181 | $ | 31,958 | ||||||||||||||||||||
Class B | — | * | 5 | 45 | 460 | 9 | 92 | 201 | 2,066 | |||||||||||||||||||||||
Class C | 23 | 239 | 103 | 1,065 | 13 | 137 | 417 | 4,286 | ||||||||||||||||||||||||
Class I | 376 | 3,977 | 393 | 4,047 | 33 | 338 | 1,716 | 17,642 | ||||||||||||||||||||||||
Class R | 5 | 56 | 80 | 828 | — | — | 400 | 4,111 | ||||||||||||||||||||||||
Class Y | 7 | 74 | 121 | 1,250 | 8 | 84 | 600 | 6,165 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 6 | 61 | 31 | 284 | 6 | 61 | 16 | 145 | ||||||||||||||||||||||||
Class B | — | — | — | — | — | * | — | * | — | — | ||||||||||||||||||||||
Class C | — | — | — | * | 1 | — | * | — | * | — | * | 2 | ||||||||||||||||||||
Class I | — | * | 1 | 1 | 6 | — | * | 1 | — | * | 1 | |||||||||||||||||||||
Class R | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class Y | — | * | — | * | — | — | — | * | — | * | — | — | ||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (753 | ) | (7,967 | ) | (438 | ) | (4,406 | ) | (217 | ) | (2,256 | ) | (1,156 | ) | (11,868 | ) | ||||||||||||||||
Class B | — | * | (3 | ) | (22 | ) | (229 | ) | — | — | (100 | ) | (1,067 | ) | ||||||||||||||||||
Class C | (9 | ) | (97 | ) | (49 | ) | (513 | ) | (4 | ) | (43 | ) | (203 | ) | (2,137 | ) | ||||||||||||||||
Class I | (346 | ) | (3,660 | ) | (183 | ) | (1,941 | ) | (14 | ) | (141 | ) | (853 | ) | (9,016 | ) | ||||||||||||||||
Class R | — | * | (3 | ) | (40 | ) | (426 | ) | — | — | (200 | ) | (2,112 | ) | ||||||||||||||||||
Class Y | — | — | (60 | ) | (641 | ) | — | — | (300 | ) | (3,168 | ) | ||||||||||||||||||||
Net increase | 260 | $ | 2,702 | 2,618 | $ | 25,930 | 702 | $ | 7,252 | 3,719 | $ | 37,008 |
* | Not shown due to rounding. |
2014 | SEMIANNUAL REPORT | 79 |
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Ivy Real Estate Securities Fund | Ivy Science and Technology Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 2,873 | $ | 74,061 | 6,193 | $ | 145,286 | 7,721 | $ | 408,319 | 24,002 | $ | 1,148,654 | ||||||||||||||||||||
Class B | 18 | 454 | 46 | 1,073 | 72 | 3,308 | 634 | 25,486 | ||||||||||||||||||||||||
Class C | 139 | 3,523 | 151 | 3,531 | 3,036 | 143,631 | 9,859 | 427,653 | ||||||||||||||||||||||||
Class E | 9 | 225 | 21 | 492 | 36 | 1,896 | 94 | 4,441 | ||||||||||||||||||||||||
Class I | 103 | 2,683 | 194 | 4,574 | 11,141 | 642,987 | 20,813 | 1,070,132 | ||||||||||||||||||||||||
Class R | 25 | 647 | 22 | 504 | 411 | 21,609 | 1,054 | 49,563 | ||||||||||||||||||||||||
Class R6 | 119 | 3,178 | N/A | N/A | 150 | 8,803 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 646 | 16,586 | 564 | 13,518 | 2,897 | 161,365 | 10,240 | 509,037 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 25 | 646 | 153 | 3,426 | — | — | 747 | 37,078 | ||||||||||||||||||||||||
Class B | — | — | — | — | — | — | 40 | 1,712 | ||||||||||||||||||||||||
Class C | — | — | 2 | 42 | — | — | 302 | 13,459 | ||||||||||||||||||||||||
Class E | — | * | 1 | 1 | 17 | — | — | 8 | 375 | |||||||||||||||||||||||
Class I | 2 | 47 | 5 | 101 | — | — | 356 | 19,038 | ||||||||||||||||||||||||
Class R | — | * | 1 | 1 | 10 | — | — | 44 | 2,161 | |||||||||||||||||||||||
Class R6 | — | * | 4 | N/A | N/A | — | — | N/A | N/A | |||||||||||||||||||||||
Class Y | 22 | 559 | 81 | 1,825 | — | — | 406 | 21,086 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (2,030 | ) | (52,339 | ) | (4,994 | ) | (116,173 | ) | (9,337 | ) | (498,281 | ) | (5,918 | ) | (282,005 | ) | ||||||||||||||||
Class B | (34 | ) | (839 | ) | (104 | ) | (2,362 | ) | (139 | ) | (6,281 | ) | (262 | ) | (10,866 | ) | ||||||||||||||||
Class C | (114 | ) | (2,893 | ) | (209 | ) | (4,763 | ) | (1,268 | ) | (59,838 | ) | (1,439 | ) | (62,159 | ) | ||||||||||||||||
Class E | (7 | ) | (187 | ) | (12 | ) | (270 | ) | (12 | ) | (650 | ) | (20 | ) | (934 | ) | ||||||||||||||||
Class I | (138 | ) | (3,672 | ) | (138 | ) | (3,220 | ) | (6,071 | ) | (343,734 | ) | (3,901 | ) | (204,694 | ) | ||||||||||||||||
Class R | (18 | ) | (473 | ) | (40 | ) | (976 | ) | (429 | ) | (22,550 | ) | (497 | ) | (23,558 | ) | ||||||||||||||||
Class R6 | (4 | ) | (103 | ) | N/A | N/A | (1 | ) | (54 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (453 | ) | (11,784 | ) | (1,854 | ) | (43,225 | ) | (3,827 | ) | (210,304 | ) | (5,023 | ) | (255,286 | ) | ||||||||||||||||
Net increase | 1,183 | $ | 30,325 | 83 | $ | 3,410 | 4,380 | $ | 250,226 | 51,539 | $ | 2,490,373 |
* | Not shown due to rounding. |
12. | FEDERAL INCOME TAX MATTERS ($ amounts in thousands) |
For Federal income tax purposes, cost of investments owned at September 30, 2014 and the related unrealized appreciation (depreciation) were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Unrealized Appreciation | ||||||||||||
Ivy Asset Strategy Fund | $ | 30,854,838 | $ | 3,095,686 | $ | 870,363 | $ | 2,225,323 | ||||||||
Ivy Balanced Fund | 1,797,962 | 288,022 | 8,693 | 279,329 | ||||||||||||
Ivy Energy Fund | 284,177 | 63,049 | 3,132 | 59,917 | ||||||||||||
Ivy Global Natural Resources Fund | 1,278,975 | 350,138 | 81,092 | 269,046 | ||||||||||||
Ivy Global Real Estate Fund | 28,717 | 1,026 | 781 | 245 | ||||||||||||
Ivy Global Risk-Managed Real Estate Fund | 44,011 | 1,463 | 1,370 | 93 | ||||||||||||
Ivy Real Estate Securities Fund | 473,825 | 137,452 | 3,726 | 133,726 | ||||||||||||
Ivy Science and Technology Fund | 4,241,099 | 1,663,825 | 195,824 | 1,468,001 |
For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2014 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 | $ | 129,692 | $ | 77,668 | $ | — | $ | 752,382 | $ | — | $ | — | $ | — | ||||||||||||||
Ivy Balanced Fund | 11,595 | 3,405 | 26,052 | 17,523 | — | — | — | |||||||||||||||||||||
Ivy Energy Fund | — | — | — | — | — | 375 | 413 | |||||||||||||||||||||
Ivy Global Natural Resources Fund | — | — | — | — | — | 15,796 | — | |||||||||||||||||||||
Ivy Global Real Estate Fund | 367 | 70 | — | 38 | — | — | — | |||||||||||||||||||||
Ivy Global Risk-Managed Real Estate Fund | 531 | 150 | — | — | — | — | — | |||||||||||||||||||||
Ivy Real Estate Securities Fund | 5,500 | 384 | — | 1,376 | — | — | — | |||||||||||||||||||||
Ivy Science and Technology Fund | — | — | 108,849 | 78,164 | — | — | 10,029 |
80 | SEMIANNUAL REPORT | 2014 |
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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, 2014 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 was 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 regulated investment company during the year ended March 31, 2014:
Pre-Enactment | Post-Enactment | |||||||||||||||||||||||||||
Fund | 2015 | 2016 | 2017 | 2018 | 2019 | Short-Term Capital Loss Carryover | Long-Term Capital Loss Carryover | |||||||||||||||||||||
Ivy Asset Strategy Fund | $— | $— | $— | $— | $— | $— | $— | |||||||||||||||||||||
Ivy Balanced Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Energy Fund | — | — | — | 6,022 | — | — | — | |||||||||||||||||||||
Ivy Global Natural Resources Fund | — | — | — | 1,529,206 | — | 242,312 | 309,131 | |||||||||||||||||||||
Ivy Global Real Estate Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Risk-Managed Real Estate Fund | — | — | — | — | — | 283 | — | |||||||||||||||||||||
Ivy Real Estate Securities Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Science and Technology Fund | — | — | — | — | — | — | — |
2014 | SEMIANNUAL REPORT | 81 |
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RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS
Ivy Funds
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 11th and 12th, 2014, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (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); |
• | LaSalle Investment Management Securities, LLC and LaSalle Investment Management Securities B.V. (with respect to Ivy Global Real Estate Fund and Ivy Global Risk-Managed Real Estate Fund); and |
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, all as outlined in a memorandum it had provided to the Board prior to the meeting, 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 Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. 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. (“Lipper”) 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 and discussed these materials during a telephonic meeting in July. 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 11th and at the August 12th 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 requests pursuant to Section 15(c) of the 1940 Act submitted on its behalf by independent legal counsel.
The Board likewise considered the knowledge it had received from its regular meetings, 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 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. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company provides the Funds. The Board noted that IICO had represented to the Board that IICO will update its analysis of the Funds’ shareholder servicing costs once up-to-date industry information is available, and will provide the results of that analysis to the Board. The Board considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the 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. The Independent Trustees previously had discussed the asset growth of certain Funds with their independent fee consultant and independent legal counsel at the telephonic meeting in July 2014. The Independent Trustees then extensively considered IICO’s response to a supplemental request submitted by independent legal counsel on their behalf regarding the breakpoint schedules of certain Funds. After additional discussion with IICO on the Funds’ breakpoint schedules, IICO agreed to conduct a comprehensive study on those schedules and report back to the Board as soon as practicable. The Board nevertheless considered the fact that as the Funds’ assets have grown, the expenses of the Funds generally have fallen.
82 | SEMIANNUAL REPORT | 2014 |
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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 quartile ranking for short- and long-term time periods and each Fund’s performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.
The Board also considered the expenses and 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.
2014 | SEMIANNUAL REPORT | 83 |
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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.
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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 Emerging Markets Equity Fund
Ivy Emerging Markets Local Currency Debt 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 International Opportunities Fund
Specialty Funds
Ivy Asset Strategy 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.
2014 | SEMIANNUAL REPORT | 87 |
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SEMIANN-IVYSPEC (9-14)
Table of Contents
Semiannual Report
September 30, 2014
Ivy Funds
Ivy Bond Fund
Ivy Core Equity Fund
Ivy Cundill Global Value Fund
Ivy Dividend Opportunities Fund
Ivy Emerging Markets Equity 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 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 Small Cap Growth Fund
Ivy Small Cap Value Fund
Ivy Tax-Managed Equity Fund
Ivy Value Fund
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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 | 2014 |
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Ivy Funds | SEPTEMBER 30, 2014 (UNAUDITED) |
Henry J. Herrmann, CFA
Dear Shareholder,
Over the past six months stocks shook off many negative headlines as major indexes touched record high territory. Beyond potential headwinds on the global front – including unrest in the Middle East and the Ukraine – the U.S. economy experienced a much slower-than-expected start to the year.
Markets moved in ways that were at odds with traditional patterns, as stocks and bonds rallied simultaneously. Although many investors expected yields to climb in 2014, the reverse occurred. The yield on the benchmark 10-year Treasury, which hovered around 2.75% in March, ended September at 2.52%. This move reflected slow economic improvement and continued very low inflation.
Internationally, the European Central Bank (ECB) took the unprecedented step of dropping short-term interest rates into negative territory. The already slow European economy slowed further. The prospect for deflation became real. The ECB move, which essentially charges lenders for holding their money, was one of several that European policymakers have taken in a bid to boost lackluster growth. In China, officials announced their own series of measures designed to boost growth. Lackluster demand, especially for commodities, is creating uncertainty regarding global growth.
Looking ahead, we expect economic improvement to continue in the U.S. We believe the U.S. economy is stronger than most and that U.S. stocks appear to offer the best opportunity for positive returns. Corporate earnings are expected to rise, inflation to remain low and the jobs picture to continue to improve. All of this provides a positive backdrop for stocks. The Federal Reserve seems likely to take its time raising interest rates as it weighs the strength of improvement in the economy.
Economic Snapshot
9/30/14 | 3/31/14 | |||||||
S&P 500 Index | 1,972.29 | 1,872.34 | ||||||
MSCI EAFE Index | 1,846.08 | 1,915.69 | ||||||
10-Year Treasury Yield | 2.52% | 2.73% | ||||||
U.S. unemployment rate | 5.9% | 6.7% | ||||||
30-year fixed mortgage rate | 4.3% | 4.6% | ||||||
Oil price per barrel | $ | 91.16 | $ | 101.58 |
Sources: Bloomberg, U.S. Department of Labor, MBA, 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. 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 will continue to closely monitor these and other economic developments in the months ahead.
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.
2014 | SEMIANNUAL REPORT | 3 |
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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, 2014.
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. With limited exceptions, for Class A and Class C shares, if your Fund account balance is below $650 on the Friday prior to the last week of September each year, the account will be assessed an account fee of $20. 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 7 to the Financial Statements for further information.
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,023.40 | $ | 5.16 | $ | 1,000 | $ | 1,019.92 | $ | 5.15 | 1.03% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,018.60 | $ | 9.89 | $ | 1,000 | $ | 1,015.25 | $ | 9.87 | 1.96% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,019.30 | $ | 9.19 | $ | 1,000 | $ | 1,015.95 | $ | 9.17 | 1.82% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,022.80 | $ | 5.76 | $ | 1,000 | $ | 1,019.35 | $ | 5.76 | 1.14% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,024.90 | $ | 3.75 | $ | 1,000 | $ | 1,021.37 | $ | 3.74 | 0.74% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,021.80 | $ | 6.77 | $ | 1,000 | $ | 1,018.38 | $ | 6.76 | 1.33% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,003.90 | $ | 1.00 | $ | 1,000 | $ | 1,022.13 | $ | 2.93 | 0.59% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,023.70 | $ | 5.06 | $ | 1,000 | $ | 1,020.11 | $ | 5.05 | 0.99% | |||||||||||||||
Ivy Core Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,051.30 | $ | 5.85 | $ | 1,000 | $ | 1,019.34 | $ | 5.76 | 1.14% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,045.50 | $ | 10.84 | $ | 1,000 | $ | 1,014.52 | $ | 10.68 | 2.11% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,046.70 | $ | 9.82 | $ | 1,000 | $ | 1,015.51 | $ | 9.67 | 1.91% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,049.30 | $ | 6.97 | $ | 1,000 | $ | 1,018.30 | $ | 6.86 | 1.35% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,052.30 | $ | 4.31 | $ | 1,000 | $ | 1,020.86 | $ | 4.24 | 0.84% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,048.50 | $ | 7.68 | $ | 1,000 | $ | 1,017.55 | $ | 7.57 | 1.50% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,025.50 | $ | 1.32 | $ | 1,000 | $ | 1,021.31 | $ | 3.84 | 0.75% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,052.90 | $ | 4.31 | $ | 1,000 | $ | 1,020.86 | $ | 4.24 | 0.84% |
See footnotes on page 9.
4 | SEMIANNUAL REPORT | 2014 |
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ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Cundill Global Value Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 988.30 | $ | 7.65 | $ | 1,000 | $ | 1,017.35 | $ | 7.77 | 1.54% | |||||||||||||||
Class B** | $ | 1,000 | $ | 982.70 | $ | 13.48 | $ | 1,000 | $ | 1,011.50 | $ | 13.68 | 2.71% | |||||||||||||||
Class C | $ | 1,000 | $ | 985.30 | $ | 10.82 | $ | 1,000 | $ | 1,014.13 | $ | 10.98 | 2.19% | |||||||||||||||
Class E | $ | 1,000 | $ | 988.40 | $ | 7.95 | $ | 1,000 | $ | 1,017.09 | $ | 8.07 | 1.59% | |||||||||||||||
Class I | $ | 1,000 | $ | 990.70 | $ | 5.57 | $ | 1,000 | $ | 1,019.47 | $ | 5.65 | 1.12% | |||||||||||||||
Class R | $ | 1,000 | $ | 987.70 | $ | 8.55 | $ | 1,000 | $ | 1,016.51 | $ | 8.67 | 1.71% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 977.90 | $ | 1.68 | $ | 1,000 | $ | 1,020.15 | $ | 4.95 | 0.98% | |||||||||||||||
Class Y | $ | 1,000 | $ | 989.00 | $ | 6.86 | $ | 1,000 | $ | 1,018.17 | $ | 6.96 | 1.38% | |||||||||||||||
Ivy Dividend Opportunities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,035.10 | $ | 6.31 | $ | 1,000 | $ | 1,018.85 | $ | 6.26 | 1.24% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,031.40 | $ | 10.26 | $ | 1,000 | $ | 1,014.96 | $ | 10.18 | 2.02% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,032.10 | $ | 9.75 | $ | 1,000 | $ | 1,015.47 | $ | 9.67 | 1.91% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,034.40 | $ | 7.02 | $ | 1,000 | $ | 1,018.20 | $ | 6.96 | 1.37% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,036.60 | $ | 4.79 | $ | 1,000 | $ | 1,020.40 | $ | 4.75 | 0.93% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,033.50 | $ | 7.73 | $ | 1,000 | $ | 1,017.47 | $ | 7.67 | 1.52% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,019.30 | $ | 1.31 | $ | 1,000 | $ | 1,021.20 | $ | 3.94 | 0.77% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,035.40 | $ | 6.00 | $ | 1,000 | $ | 1,019.15 | $ | 5.96 | 1.18% | |||||||||||||||
Ivy Emerging Markets Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,020.60 | $ | 7.48 | $ | 1,000 | $ | 1,017.65 | $ | 7.47 | 1.50% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,015.00 | $ | 12.59 | $ | 1,000 | $ | 1,012.56 | $ | 12.58 | 2.50% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,015.90 | $ | 12.10 | $ | 1,000 | $ | 1,013.06 | $ | 12.08 | 2.40% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,021.00 | $ | 6.67 | $ | 1,000 | $ | 1,018.44 | $ | 6.66 | 1.33% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,021.40 | $ | 6.17 | $ | 1,000 | $ | 1,018.94 | $ | 6.16 | 1.23% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,018.60 | $ | 9.18 | $ | 1,000 | $ | 1,015.94 | $ | 9.17 | 1.82% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 961.00 | $ | 1.76 | $ | 1,000 | $ | 1,019.83 | $ | 5.25 | 1.05% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,019.60 | $ | 7.57 | $ | 1,000 | $ | 1,017.56 | $ | 7.57 | 1.50% | |||||||||||||||
Ivy European Opportunities Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 964.40 | $ | 8.25 | $ | 1,000 | $ | 1,016.63 | $ | 8.47 | 1.69% | |||||||||||||||
Class B** | $ | 1,000 | $ | 958.80 | $ | 14.20 | $ | 1,000 | $ | 1,010.58 | $ | 14.58 | 2.89% | |||||||||||||||
Class C | $ | 1,000 | $ | 961.40 | $ | 11.47 | $ | 1,000 | $ | 1,013.39 | $ | 11.78 | 2.33% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 966.60 | $ | 6.39 | $ | 1,000 | $ | 1,018.60 | $ | 6.56 | 1.29% | |||||||||||||||
Class I | $ | 1,000 | $ | 967.00 | $ | 5.90 | $ | 1,000 | $ | 1,019.09 | $ | 6.06 | 1.20% | |||||||||||||||
Class R | $ | 1,000 | $ | 964.40 | $ | 8.84 | $ | 1,000 | $ | 1,016.11 | $ | 9.07 | 1.79% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 993.50 | $ | 1.69 | $ | 1,000 | $ | 1,019.91 | $ | 5.25 | 1.03% | |||||||||||||||
Class Y | $ | 1,000 | $ | 965.90 | $ | 7.08 | $ | 1,000 | $ | 1,017.85 | $ | 7.26 | 1.45% | |||||||||||||||
Ivy Global Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,015.40 | $ | 4.94 | $ | 1,000 | $ | 1,020.13 | $ | 4.95 | 0.99% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,010.70 | $ | 8.75 | $ | 1,000 | $ | 1,016.35 | $ | 8.77 | 1.74% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,011.70 | $ | 8.75 | $ | 1,000 | $ | 1,016.35 | $ | 8.77 | 1.74% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,016.70 | $ | 3.73 | $ | 1,000 | $ | 1,021.35 | $ | 3.74 | 0.74% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,012.00 | $ | 7.34 | $ | 1,000 | $ | 1,017.75 | $ | 7.36 | 1.46% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 996.50 | $ | 1.20 | $ | 1,000 | $ | 1,021.56 | $ | 3.54 | 0.70% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,014.40 | $ | 5.04 | $ | 1,000 | $ | 1,020.09 | $ | 5.05 | 0.99% |
See footnotes on page 9.
2014 | SEMIANNUAL REPORT | 5 |
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ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Global Equity Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,010.80 | $ | 6.54 | $ | 1,000 | $ | 1,018.57 | $ | 6.56 | 1.30% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,006.80 | $ | 9.83 | $ | 1,000 | $ | 1,015.23 | $ | 9.87 | 1.97% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,006.90 | $ | 9.73 | $ | 1,000 | $ | 1,015.33 | $ | 9.77 | 1.94% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,012.60 | $ | 4.73 | $ | 1,000 | $ | 1,020.36 | $ | 4.75 | 0.94% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,008.70 | $ | 8.03 | $ | 1,000 | $ | 1,017.09 | $ | 8.07 | 1.59% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 991.40 | $ | 1.39 | $ | 1,000 | $ | 1,020.94 | $ | 4.14 | 0.82% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,010.50 | $ | 6.03 | $ | 1,000 | $ | 1,019.11 | $ | 6.06 | 1.19% | |||||||||||||||
Ivy Global Income Allocation Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,013.00 | $ | 6.54 | $ | 1,000 | $ | 1,018.58 | $ | 6.56 | 1.29% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,008.80 | $ | 11.05 | $ | 1,000 | $ | 1,014.10 | $ | 11.08 | 2.19% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,009.90 | $ | 9.75 | $ | 1,000 | $ | 1,015.34 | $ | 9.77 | 1.94% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,012.80 | $ | 6.74 | $ | 1,000 | $ | 1,018.40 | $ | 6.76 | 1.33% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,014.80 | $ | 4.63 | $ | 1,000 | $ | 1,020.43 | $ | 4.65 | 0.93% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,011.90 | $ | 7.65 | $ | 1,000 | $ | 1,017.51 | $ | 7.67 | 1.51% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 986.10 | $ | 1.29 | $ | 1,000 | $ | 1,021.20 | $ | 3.94 | 0.77% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,013.60 | $ | 5.94 | $ | 1,000 | $ | 1,019.20 | $ | 5.96 | 1.17% | |||||||||||||||
Ivy High Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,003.60 | $ | 4.71 | $ | 1,000 | $ | 1,020.39 | $ | 4.75 | 0.93% | |||||||||||||||
Class B** | $ | 1,000 | $ | 999.80 | $ | 8.40 | $ | 1,000 | $ | 1,016.67 | $ | 8.47 | 1.68% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,000.00 | $ | 8.20 | $ | 1,000 | $ | 1,016.86 | $ | 8.27 | 1.64% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,002.00 | $ | 6.21 | $ | 1,000 | $ | 1,018.82 | $ | 6.26 | 1.25% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,004.90 | $ | 3.51 | $ | 1,000 | $ | 1,021.59 | $ | 3.54 | 0.69% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,001.90 | $ | 6.41 | $ | 1,000 | $ | 1,018.62 | $ | 6.46 | 1.29% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 996.40 | $ | 0.90 | $ | 1,000 | $ | 1,022.39 | $ | 2.73 | 0.53% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,003.60 | $ | 4.71 | $ | 1,000 | $ | 1,020.39 | $ | 4.75 | 0.93% | |||||||||||||||
Ivy International Core Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,017.30 | $ | 6.86 | $ | 1,000 | $ | 1,018.29 | $ | 6.86 | 1.35% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,012.80 | $ | 11.07 | $ | 1,000 | $ | 1,014.10 | $ | 11.08 | 2.19% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,013.90 | $ | 10.27 | $ | 1,000 | $ | 1,014.92 | $ | 10.28 | 2.03% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,016.70 | $ | 7.76 | $ | 1,000 | $ | 1,017.40 | $ | 7.77 | 1.53% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,018.80 | $ | 5.15 | $ | 1,000 | $ | 1,019.95 | $ | 5.15 | 1.02% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,015.80 | $ | 8.16 | $ | 1,000 | $ | 1,016.94 | $ | 8.17 | 1.62% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 971.10 | $ | 1.48 | $ | 1,000 | $ | 1,020.74 | $ | 4.34 | 0.86% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,017.20 | $ | 6.46 | $ | 1,000 | $ | 1,018.68 | $ | 6.46 | 1.28% | |||||||||||||||
Ivy International Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 998.00 | $ | 7.29 | $ | 1,000 | $ | 1,017.80 | $ | 7.36 | 1.45% | |||||||||||||||
Class B** | $ | 1,000 | $ | 993.40 | $ | 12.06 | $ | 1,000 | $ | 1,013.01 | $ | 12.18 | 2.40% | |||||||||||||||
Class C | $ | 1,000 | $ | 994.50 | $ | 10.97 | $ | 1,000 | $ | 1,014.06 | $ | 11.08 | 2.20% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 999.30 | $ | 6.10 | $ | 1,000 | $ | 1,019.01 | $ | 6.16 | 1.21% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,000.00 | $ | 5.40 | $ | 1,000 | $ | 1,019.62 | $ | 5.45 | 1.09% | |||||||||||||||
Class R | $ | 1,000 | $ | 997.10 | $ | 8.49 | $ | 1,000 | $ | 1,016.58 | $ | 8.57 | 1.70% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 977.00 | $ | 1.58 | $ | 1,000 | $ | 1,020.39 | $ | 4.75 | 0.93% | |||||||||||||||
Class Y | $ | 1,000 | $ | 998.80 | $ | 6.80 | $ | 1,000 | $ | 1,018.27 | $ | 6.86 | 1.36% |
See footnotes on page 9.
6 | SEMIANNUAL REPORT | 2014 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Large Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,064.80 | $ | 5.88 | $ | 1,000 | $ | 1,019.33 | $ | 5.76 | 1.15% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,060.00 | $ | 10.40 | $ | 1,000 | $ | 1,014.93 | $ | 10.18 | 2.02% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,061.40 | $ | 9.69 | $ | 1,000 | $ | 1,015.67 | $ | 9.47 | 1.88% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,065.40 | $ | 5.99 | $ | 1,000 | $ | 1,019.31 | $ | 5.86 | 1.15% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,066.10 | $ | 4.55 | $ | 1,000 | $ | 1,020.65 | $ | 4.45 | 0.88% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,063.80 | $ | 7.64 | $ | 1,000 | $ | 1,017.68 | $ | 7.47 | 1.47% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,023.80 | $ | 1.21 | $ | 1,000 | $ | 1,021.47 | $ | 3.64 | 0.72% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,065.40 | $ | 5.47 | $ | 1,000 | $ | 1,019.76 | $ | 5.35 | 1.06% | |||||||||||||||
Ivy Limited-Term Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,004.00 | $ | 4.41 | $ | 1,000 | $ | 1,020.64 | $ | 4.45 | 0.88% | |||||||||||||||
Class B** | $ | 1,000 | $ | 999.80 | $ | 8.60 | $ | 1,000 | $ | 1,016.47 | $ | 8.67 | 1.72% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,000.20 | $ | 8.30 | $ | 1,000 | $ | 1,016.78 | $ | 8.37 | 1.65% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,003.40 | $ | 5.01 | $ | 1,000 | $ | 1,020.05 | $ | 5.05 | 1.00% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,005.30 | $ | 3.21 | $ | 1,000 | $ | 1,021.86 | $ | 3.23 | 0.64% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,002.30 | $ | 6.21 | $ | 1,000 | $ | 1,018.88 | $ | 6.26 | 1.23% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 999.10 | $ | 0.80 | $ | 1,000 | $ | 1,022.66 | $ | 2.43 | 0.48% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,004.00 | $ | 4.41 | $ | 1,000 | $ | 1,020.63 | $ | 4.45 | 0.89% | |||||||||||||||
Ivy Managed International Opportunities Fund(4) |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,007.90 | $ | 2.41 | $ | 1,000 | $ | 1,022.66 | $ | 2.43 | 0.48% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,004.00 | $ | 6.71 | $ | 1,000 | $ | 1,018.40 | $ | 6.76 | 1.33% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,004.00 | $ | 6.41 | $ | 1,000 | $ | 1,018.66 | $ | 6.46 | 1.28% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,007.90 | $ | 2.01 | $ | 1,000 | $ | 1,023.11 | $ | 2.02 | 0.39% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,008.80 | $ | 0.80 | $ | 1,000 | $ | 1,024.25 | $ | 0.81 | 0.16% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,007.90 | $ | 3.11 | $ | 1,000 | $ | 1,021.93 | $ | 3.13 | 0.63% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,008.90 | $ | 1.91 | $ | 1,000 | $ | 1,023.15 | $ | 1.92 | 0.38% | |||||||||||||||
Ivy Micro Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 856.80 | $ | 7.61 | $ | 1,000 | $ | 1,016.86 | $ | 8.27 | 1.64% | |||||||||||||||
Class B** | $ | 1,000 | $ | 852.80 | $ | 11.77 | $ | 1,000 | $ | 1,012.35 | $ | 12.78 | 2.54% | |||||||||||||||
Class C | $ | 1,000 | $ | 853.90 | $ | 11.03 | $ | 1,000 | $ | 1,013.18 | $ | 11.98 | 2.38% | |||||||||||||||
Class I | $ | 1,000 | $ | 858.60 | $ | 5.76 | $ | 1,000 | $ | 1,018.92 | $ | 6.26 | 1.23% | |||||||||||||||
Class R | $ | 1,000 | $ | 856.20 | $ | 8.45 | $ | 1,000 | $ | 1,015.94 | $ | 9.17 | 1.83% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,000.80 | $ | 1.80 | $ | 1,000 | $ | 1,019.80 | $ | 5.35 | 1.05% | |||||||||||||||
Class Y | $ | 1,000 | $ | 857.60 | $ | 6.97 | $ | 1,000 | $ | 1,017.62 | $ | 7.57 | 1.49% | |||||||||||||||
Ivy Mid Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,003.00 | $ | 6.41 | $ | 1,000 | $ | 1,018.67 | $ | 6.46 | 1.26% | |||||||||||||||
Class B** | $ | 1,000 | $ | 999.50 | $ | 10.40 | $ | 1,000 | $ | 1,014.71 | $ | 10.48 | 2.06% | |||||||||||||||
Class C | $ | 1,000 | $ | 999.50 | $ | 10.10 | $ | 1,000 | $ | 1,014.92 | $ | 10.18 | 2.02% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,001.70 | $ | 8.01 | $ | 1,000 | $ | 1,017.05 | $ | 8.07 | 1.60% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,004.50 | $ | 4.91 | $ | 1,000 | $ | 1,020.12 | $ | 4.95 | 1.00% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,001.30 | $ | 8.01 | $ | 1,000 | $ | 1,017.12 | $ | 8.07 | 1.59% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,013.90 | $ | 1.41 | $ | 1,000 | $ | 1,020.97 | $ | 4.14 | 0.82% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,003.30 | $ | 6.21 | $ | 1,000 | $ | 1,018.90 | $ | 6.26 | 1.23% |
See footnotes on page 9.
2014 | SEMIANNUAL REPORT | 7 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Money Market Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,000.10 | $ | 0.80 | $ | 1,000 | $ | 1,024.22 | $ | 0.81 | 0.17% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,000.00 | $ | 0.90 | $ | 1,000 | $ | 1,024.21 | $ | 0.91 | 0.17% | |||||||||||||||
Class C** | $ | 1,000 | $ | 1,000.00 | $ | 0.80 | $ | 1,000 | $ | 1,024.23 | $ | 0.81 | 0.17% | |||||||||||||||
Class E | $ | 1,000 | $ | 1,000.10 | $ | 0.90 | $ | 1,000 | $ | 1,024.22 | $ | 0.91 | 0.17% | |||||||||||||||
Ivy Municipal Bond Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,035.70 | $ | 5.19 | $ | 1,000 | $ | 1,019.95 | $ | 5.15 | 1.02% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,031.70 | $ | 9.04 | $ | 1,000 | $ | 1,016.16 | $ | 8.97 | 1.78% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,031.70 | $ | 9.04 | $ | 1,000 | $ | 1,016.16 | $ | 8.97 | 1.78% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,036.70 | $ | 4.18 | $ | 1,000 | $ | 1,020.95 | $ | 4.14 | 0.82% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,035.60 | $ | 5.19 | $ | 1,000 | $ | 1,019.95 | $ | 5.15 | 1.02% | |||||||||||||||
Ivy Municipal High Income Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,068.60 | $ | 4.45 | $ | 1,000 | $ | 1,020.78 | $ | 4.34 | 0.86% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,064.40 | $ | 8.46 | $ | 1,000 | $ | 1,016.90 | $ | 8.27 | 1.63% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,064.70 | $ | 8.26 | $ | 1,000 | $ | 1,017.10 | $ | 8.07 | 1.59% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,069.50 | $ | 3.52 | $ | 1,000 | $ | 1,021.64 | $ | 3.44 | 0.68% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,068.50 | $ | 4.45 | $ | 1,000 | $ | 1,020.79 | $ | 4.34 | 0.85% | |||||||||||||||
Ivy Small Cap Growth Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 928.70 | $ | 6.85 | $ | 1,000 | $ | 1,017.92 | $ | 7.16 | 1.43% | |||||||||||||||
Class B** | $ | 1,000 | $ | 924.40 | $ | 11.16 | $ | 1,000 | $ | 1,013.44 | $ | 11.68 | 2.32% | |||||||||||||||
Class C | $ | 1,000 | $ | 925.40 | $ | 10.01 | $ | 1,000 | $ | 1,014.72 | $ | 10.48 | 2.07% | |||||||||||||||
Class E | $ | 1,000 | $ | 927.80 | $ | 7.52 | $ | 1,000 | $ | 1,017.25 | $ | 7.87 | 1.56% | |||||||||||||||
Class I | $ | 1,000 | $ | 930.10 | $ | 5.11 | $ | 1,000 | $ | 1,019.76 | $ | 5.35 | 1.06% | |||||||||||||||
Class R | $ | 1,000 | $ | 927.20 | $ | 8.00 | $ | 1,000 | $ | 1,016.77 | $ | 8.37 | 1.66% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 984.30 | $ | 1.49 | $ | 1,000 | $ | 1,020.60 | $ | 4.55 | 0.89% | |||||||||||||||
Class Y | $ | 1,000 | $ | 929.00 | $ | 6.27 | $ | 1,000 | $ | 1,018.53 | $ | 6.56 | 1.31% | |||||||||||||||
Ivy Small Cap Value Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 972.20 | $ | 7.59 | $ | 1,000 | $ | 1,017.38 | $ | 7.77 | 1.54% | |||||||||||||||
Class B** | $ | 1,000 | $ | 967.10 | $ | 12.39 | $ | 1,000 | $ | 1,012.50 | $ | 12.68 | 2.51% | |||||||||||||||
Class C | $ | 1,000 | $ | 969.00 | $ | 10.93 | $ | 1,000 | $ | 1,013.98 | $ | 11.18 | 2.21% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 973.90 | $ | 6.02 | $ | 1,000 | $ | 1,019.02 | $ | 6.16 | 1.21% | |||||||||||||||
Class I | $ | 1,000 | $ | 974.10 | $ | 5.43 | $ | 1,000 | $ | 1,019.60 | $ | 5.55 | 1.10% | |||||||||||||||
Class R | $ | 1,000 | $ | 971.60 | $ | 8.38 | $ | 1,000 | $ | 1,016.58 | $ | 8.57 | 1.70% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 991.60 | $ | 1.59 | $ | 1,000 | $ | 1,020.40 | $ | 4.75 | 0.93% | |||||||||||||||
Class Y | $ | 1,000 | $ | 973.10 | $ | 6.71 | $ | 1,000 | $ | 1,018.29 | $ | 6.86 | 1.35% | |||||||||||||||
Ivy Tax-Managed Equity Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,079.60 | $ | 6.97 | $ | 1,000 | $ | 1,018.38 | $ | 6.76 | 1.33% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,076.60 | $ | 10.28 | $ | 1,000 | $ | 1,015.16 | $ | 9.98 | 1.98% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,076.10 | $ | 10.59 | $ | 1,000 | $ | 1,014.85 | $ | 10.28 | 2.04% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,081.50 | $ | 5.62 | $ | 1,000 | $ | 1,019.67 | $ | 5.45 | 1.08% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,080.10 | $ | 6.86 | $ | 1,000 | $ | 1,018.43 | $ | 6.66 | 1.33% |
See footnotes on page 9.
8 | SEMIANNUAL REPORT | 2014 |
Table of Contents
ILLUSTRATION OF FUND EXPENSES
Ivy Funds | (UNAUDITED) |
Actual(1) | Hypothetical(2) | |||||||||||||||||||||||||||
Fund | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Beginning Account Value 3-31-14 | Ending Account Value 9-30-14 | Expenses Paid During Period* | Annualized Expense Ratio Based on the Six-Month Period | |||||||||||||||||||||
Ivy Value Fund |
| |||||||||||||||||||||||||||
Class A | $ | 1,000 | $ | 1,072.60 | $ | 6.63 | $ | 1,000 | $ | 1,018.65 | $ | 6.46 | 1.28% | |||||||||||||||
Class B** | $ | 1,000 | $ | 1,067.90 | $ | 11.37 | $ | 1,000 | $ | 1,014.06 | $ | 11.08 | 2.19% | |||||||||||||||
Class C | $ | 1,000 | $ | 1,069.00 | $ | 10.24 | $ | 1,000 | $ | 1,015.12 | $ | 9.97 | 1.99% | |||||||||||||||
Class E*** | $ | 1,000 | $ | 1,074.10 | $ | 5.50 | $ | 1,000 | $ | 1,019.78 | $ | 5.35 | 1.05% | |||||||||||||||
Class I | $ | 1,000 | $ | 1,074.90 | $ | 4.98 | $ | 1,000 | $ | 1,020.26 | $ | 4.85 | 0.96% | |||||||||||||||
Class R | $ | 1,000 | $ | 1,071.40 | $ | 7.97 | $ | 1,000 | $ | 1,017.34 | $ | 7.77 | 1.54% | |||||||||||||||
Class R6(3) | $ | 1,000 | $ | 1,029.20 | $ | 1.32 | $ | 1,000 | $ | 1,021.09 | $ | 4.04 | 0.79% | |||||||||||||||
Class Y | $ | 1,000 | $ | 1,073.30 | $ | 6.22 | $ | 1,000 | $ | 1,019.02 | $ | 6.06 | 1.21% |
* | 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, 2014, and divided by 365. |
** | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
***Class | share is closed to investment. |
(1) | This section uses the Fund’s actual total return and actual Fund expenses. It is a guide to the actual expenses paid by the Fund in the period. The “Ending Account Value” shown is computed using the Fund’s actual return and the “Expenses Paid During Period” column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund. A shareholder may use the information here, together with the dollar amount invested, to estimate the expenses that were paid over the period. For every thousand dollars a shareholder has invested, the expenses are listed in the last column 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. |
(3) | Actual inception date for each share class is 7-31-14 (the date on which shares were first acquired by shareholders). The calculations are based on 62 days in the period ended September 30, 2014. |
(4) | Annualized Expense Ratio Based on the Six-Month Period does not include expenses of Underlying Ivy Funds in which Ivy Managed International Opportunities Fund invests. |
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads, or exchange fees.
2014 | SEMIANNUAL REPORT | 9 |
Table of Contents
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 1.0% | |||
Financials | 1.0% | |||
Bonds | 96.1% | |||
Corporate Debt Securities | 38.9% | |||
United States Government and Government Agency Obligations | 36.6% | |||
Asset-Backed Securities | 10.2% | |||
Mortgage-Backed Securities | 9.1% | |||
Municipal Bonds—Taxable | 1.3% | |||
Cash and Cash Equivalents | 2.9% |
Lipper Rankings
Category: Lipper Corporate Debt Funds A Rated | Rank | Percentile | ||
1 Year | 27/51 | 52 | ||
3 Year | 23/46 | 49 | ||
5 Year | 17/44 | 38 | ||
10 Year | 29/37 | 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.
Quality Weightings
Investment Grade | 77.4% | |||
AAA | 8.6% | |||
AA | 40.0% | |||
A | 10.1% | |||
BBB | 18.7% | |||
Non-Investment Grade | 18.7% | |||
BB | 17.5% | |||
B | 0.6% | |||
CCC | 0.2% | |||
Below CCC | 0.1% | |||
Non-rated | 0.3% | |||
Cash and Cash Equivalents and Equities | 3.9% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
10 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
PREFERRED STOCKS | Shares | Value | ||||||
Diversified Banks – 0.6% |
| |||||||
Wells Fargo & Co., 5.850% | 173 | $ | 4,439 | |||||
|
| |||||||
Specialized REITs – 0.4% |
| |||||||
Ventas, Inc., 5.450% | 100 | 2,409 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 6,848 | |||||
(Cost: $6,830) | ||||||||
ASSET-BACKED SECURITIES | Principal | |||||||
America West Airlines, Inc., Pass Through Certificates, Series 1999-1, | $ | 796 | 879 | |||||
America West Airlines, Inc., Pass Through Certificates, Series 2000-1, | 1,104 | 1,267 | ||||||
American Airlines Class B Pass Through Certificates, Series 2013-2, | 3,472 | 3,576 | ||||||
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2, | 2,832 | 3,030 | ||||||
American Airlines, Inc., Class Pass Through Certificates, Series 2011-1, | 1,327 | 1,427 | ||||||
AmeriCredit Automobile Receivables Trust 2012-4, Series C, | 2,880 | 2,932 | ||||||
CarMax Auto Owner Trust 2013-2, Class D, | 3,000 | 2,989 | ||||||
CarMax Auto Owner Trust 2013-4, Class D, | 1,400 | 1,409 | ||||||
Chase Issuance Trust, Series 2014-A2, | 5,335 | 5,375 | ||||||
Citibank Credit Card Issuance Trust, Class 2005-C1, | 5,225 | 5,305 | ||||||
Continental Airlines 2001-1 A-1, | 951 | 1,089 | ||||||
Continental Airlines Pass Through Certificates, Series 2009-2, | 609 | 710 | ||||||
Continental Airlines Pass Through Certificates, Series 2010-1B, | 601 | 638 | ||||||
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B, | 899 | 957 |
ASSET-BACKED SECURITIES (Continued) | Principal | Value | ||||||
CountryPlace Manufactured Housing Contract Trust 2005-1: | ||||||||
4.800%, 12–15–35 (A)(B) | $ | 390 | $ | 399 | ||||
5.200%, 12–15–35 (A)(B) | 300 | 317 | ||||||
CVS Caremark Corp. Pass-Through Trust: | ||||||||
6.036%, 12–10–28 | 3,928 | 4,544 | ||||||
6.943%, 1–10–30 | 1,146 | 1,396 | ||||||
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A, | 1,166 | 1,245 | ||||||
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B, | 1,915 | 2,131 | ||||||
Fan Engine Securitization Ltd., Series 2013-1X, | 1,111 | 1,090 | ||||||
GE Equipment Transportation LLC, Series 2013-2: | ||||||||
1.820%, 10–25–21 | 3,000 | 2,996 | ||||||
1.900%, 8–23–22 | 1,800 | 1,793 | ||||||
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3A7, | 14 | 15 | ||||||
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1996-4A6, | 53 | 53 | ||||||
Hawaiian Airlines Pass Through Certificates, Series 2013-1, | 4,500 | 4,432 | ||||||
Hyundai Auto Receivables Trust 2014-A, Class D, | 1,000 | 997 | ||||||
Origen Manufactured Housing Contract Trust 2004-A, | 475 | 498 | ||||||
Origen Manufactured Housing Contract Trust 2004-B, | 546 | 571 | ||||||
Origen Manufactured Housing Contract Trust 2005-A, | 60 | 64 | ||||||
Origen Manufactured Housing Contract Trust 2005-B, | 700 | 741 | ||||||
Seaco Container 2013-1A, | 1,502 | 1,492 | ||||||
Tal Advantage V LLC: | ||||||||
2.830%, 2–22–38 (A) | 2,037 | 2,010 | ||||||
3.510%, 2–22–39 (A) | 890 | 899 |
ASSET-BACKED SECURITIES (Continued) | Principal | Value | ||||||
U.S. Airways, Inc. Class A Pass-Through Certificates, Series 2012-1, | $ | 936 | $ | 1,041 | ||||
U.S. Airways, Inc. Class C Pass-Through Certificates, Series 2012-2, | 2,000 | 2,025 | ||||||
U.S. Airways, Inc., Series 2012-2, Class A, 6.750%, 6–3–21 | 2,159 | 2,331 | ||||||
United Airlines Pass-Through Certificates, Series 2014-1B, | 1,150 | 1,147 | ||||||
United Airlines Pass-Through Certificates, Series 2014-2B, | 3,615 | 3,552 | ||||||
|
| |||||||
TOTAL ASSET-BACKED SECURITIES – 10.2% |
| $ | 69,362 | |||||
(Cost: $67,768) | ||||||||
CORPORATE DEBT SECURITIES |
| |||||||
Airlines – 0.9% |
| |||||||
British Airways plc, | 1,436 | 1,536 | ||||||
U.S. Airways Group, Inc., Class A, | 1,089 | 1,225 | ||||||
U.S. Airways Group, Inc., Class B, | 638 | 696 | ||||||
United Air Lines, Inc., | 449 | 496 | ||||||
Virgin Australia 2013-1B Trust, | 2,055 | 2,105 | ||||||
|
| |||||||
6,058 | ||||||||
|
| |||||||
Apparel Retail – 0.4% |
| |||||||
Limited Brands, Inc., | 2,340 | 2,580 | ||||||
|
| |||||||
Application Software – 0.3% |
| |||||||
Intuit, Inc., | 1,780 | 1,964 | ||||||
|
| |||||||
Auto Parts & Equipment – 0.4% |
| |||||||
Dana Holding Corp., | 1,500 | 1,577 | ||||||
Delphi Corp., | 300 | 329 | ||||||
Tenneco, Inc., | 850 | 897 | ||||||
|
| |||||||
2,803 | ||||||||
|
| |||||||
Automotive Retail – 0.5% |
| |||||||
AutoNation, Inc., | 2,792 | 3,044 | ||||||
|
|
2014 | SEMIANNUAL REPORT | 11 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Cable & Satellite – 0.3% |
| |||||||
LYNX I Corp., | $ | 2,300 | $ | 2,317 | ||||
|
| |||||||
Consumer Finance – 1.9% |
| |||||||
Ally Financial, Inc., | 1,000 | 993 | ||||||
Discover Bank, | 458 | 572 | ||||||
Ford Motor Credit Co. LLC, | 1,500 | 1,568 | ||||||
General Motors Financial Co., Inc.: | ||||||||
4.750%, 8–15–17 | 4,100 | 4,316 | ||||||
4.375%, 9–25–21 | 1,080 | 1,104 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.), | 1,645 | 1,658 | ||||||
Hyundai Capital Services, Inc., 4.375%, 7–27–16 (A) | 2,000 | 2,107 | ||||||
Union 13 Leasing LLC, | 956 | 930 | ||||||
|
| |||||||
13,248 | ||||||||
|
| |||||||
Diversified Banks – 1.9% |
| |||||||
Bank of America Corp.: | ||||||||
5.750%, 12–1–17 | 2,405 | 2,676 | ||||||
5.875%, 1–5–21 | 665 | 763 | ||||||
Bank of America N.A., | 2,039 | 2,209 | ||||||
Compass Bank, | 2,875 | 2,873 | ||||||
HSBC Bank USA N.A., | 4,235 | 4,742 | ||||||
|
| |||||||
13,263 | ||||||||
|
| |||||||
Diversified Metals & Mining – 0.6% |
| |||||||
Martin Marietta Materials, Inc., | 4,500 | 4,520 | ||||||
|
| |||||||
Diversified REITs – 0.9% |
| |||||||
Colonial Realty L.P., | 1,830 | 1,913 | ||||||
Lexington Realty Trust (GTD by Lepercq Corporate Income Fund L.P.), | 4,150 | 4,164 | ||||||
|
| |||||||
6,077 | ||||||||
|
| |||||||
Electric Utilities – 1.6% |
| |||||||
AES Corp. (The), | 2,300 | 2,266 | ||||||
DPL, Inc., | 500 | 509 | ||||||
FirstEnergy Corp., | 2,855 | 2,866 | ||||||
NRG Yield Operating LLC, | 2,790 | 2,804 | ||||||
Southwestern Electric Power Co., | 2,395 | 2,620 | ||||||
|
| |||||||
11,065 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Gas Utilities – 0.3% |
| |||||||
Suburban Propane Partners L.P. and Suburban Energy Finance Corp., | $ | 1,845 | $ | 1,762 | ||||
|
| |||||||
Health Care Facilities – 0.3% |
| |||||||
NYU Hospitals Center, | 2,170 | 2,097 | ||||||
|
| |||||||
Health Care Supplies – 1.1% |
| |||||||
Bio-Rad Laboratories, Inc., | 5,000 | 5,322 | ||||||
Sinai Health System, | 1,895 | 1,840 | ||||||
|
| |||||||
7,162 | ||||||||
|
| |||||||
Household Appliances – 0.3% |
| |||||||
Stanley Black & Decker, Inc., | 2,115 | 2,289 | ||||||
|
| |||||||
Industrial Conglomerates – 0.3% |
| |||||||
CNH Capital LLC, | 1,800 | 1,773 | ||||||
|
| |||||||
Integrated Telecommunication Services –1.5% |
| |||||||
Frontier Communications Corp.: |
| |||||||
6.250%, 9–15–21 | 750 | 745 | ||||||
6.875%, 1–15–25 | 2,000 | 1,975 | ||||||
SBA Tower Trust, | 3,300 | 3,252 | ||||||
Verizon Communications, Inc.: | ||||||||
6.550%, 9–15–43 | 2,084 | 2,604 | ||||||
5.012%, 8–21–54 (A) | 2,091 | 2,101 | ||||||
|
| |||||||
10,677 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 2.3% |
| |||||||
Goldman Sachs Group, Inc. (The): | ||||||||
6.150%, 4–1–18 | 2,211 | 2,493 | ||||||
5.250%, 7–27–21 | 1,000 | 1,109 | ||||||
5.700%, 12–29–49 | 4,000 | 4,057 | ||||||
Morgan Stanley: | ||||||||
6.250%, 8–28–17 | 3,200 | 3,596 | ||||||
5.500%, 1–26–20 | 1,552 | 1,741 | ||||||
5.500%, 7–28–21 | 1,090 | 1,228 | ||||||
5.450%, 12–29–29 | 1,650 | 1,638 | ||||||
|
| |||||||
15,862 | ||||||||
|
| |||||||
Life & Health Insurance – 1.1% |
| |||||||
Pacific LifeCorp, | 1,975 | 2,057 | ||||||
Prudential Holdings LLC, 7.245%, 12–18–23 (A) | 1,295 | 1,591 | ||||||
Symetra Financial Corp., | 3,350 | 3,563 | ||||||
|
| |||||||
7,211 | ||||||||
|
| |||||||
Metal & Glass Containers – 0.6% |
| |||||||
Ball Corp., | 3,790 | 3,927 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Multi-Utilities – 0.5% |
| |||||||
Dominion Resources, Inc., | $ | 3,300 | $ | 3,338 | ||||
|
| |||||||
Oil & Gas Equipment & Services – 0.5% |
| |||||||
Enterprise Products Operating L.P., | 3,116 | 3,608 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 3.9% |
| |||||||
California Resources Corp., | 3,000 | 3,045 | ||||||
Chesapeake Energy Corp.: | ||||||||
3.484%, 4–15–19 (B) | 3,625 | 3,625 | ||||||
4.875%, 4–15–22 | 1,730 | 1,739 | ||||||
Chesapeake Midstream Partners L.P. and CHKM Finance Corp., | 2,500 | 2,675 | ||||||
Cimarex Energy Co., | 1,825 | 1,962 | ||||||
Continental Resources, Inc. (GTD by Banner Pipeline Co. LLC), | 4,200 | 4,430 | ||||||
Denbury Resources, Inc., | 2,960 | 2,938 | ||||||
Whiting Petroleum Corp., | 2,790 | 2,853 | ||||||
WPX Energy, Inc., | 3,330 | 3,222 | ||||||
|
| |||||||
26,489 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 1.5% |
| |||||||
NGL Energy Partners L.P. and NGL Energy Finance Corp., | 500 | 491 | ||||||
NuStar Logistics L.P., | 4,000 | 4,550 | ||||||
NuStar Logistics L.P. (GTD by NuStar Energy L.P. and NuStar Pipeline Operating Partnership L.P.), | 2,340 | 2,279 | ||||||
Tesoro Corp., | 2,645 | 2,711 | ||||||
|
| |||||||
10,031 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 5.2% |
| |||||||
Access Midstream Partners L.P., | 3,500 | 3,592 | ||||||
Boardwalk Pipeline Partners L.P., | 2,500 | 2,631 | ||||||
Boardwalk Pipelines L.P. (GTD by Boardwalk Pipeline Partners L.P.), | 3,975 | 4,338 | ||||||
Buckeye Partners L.P., | 5,100 | 5,104 |
12 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Storage & Transportation (Continued) |
| |||||||
Regency Energy Partners L.P. and Regency Energy Finance Corp.: | ||||||||
6.500%, 7–15–21 | $ | 3,000 | $ | 3,150 | ||||
5.875%, 3–1–22 | 3,000 | 3,128 | ||||||
Spectra Energy Partners L.P., | 795 | 863 | ||||||
Sunoco Logistics Partners Operations L.P., | 1,265 | 1,536 | ||||||
Tennessee Gas Pipeline Co., | 4,000 | 5,260 | ||||||
Williams Co., Inc. (The), | 5,000 | 4,913 | ||||||
Williams Partners L.P., | 770 | 867 | ||||||
|
| |||||||
35,382 | ||||||||
|
| |||||||
Other Diversified Financial Services –3.4% |
| |||||||
ARC Properties Operating Partnership L.P. and Clark Acquisition LLC, | 4,450 | 4,448 | ||||||
Citigroup Funding, Inc., | 5,000 | 5,327 | ||||||
CNH Industrial Capital LLC, | 785 | 740 | ||||||
ERAC USA Finance LLC, | 1,800 | 1,804 | ||||||
JPMorgan Chase & Co., | 4,250 | 4,137 | ||||||
JPMorgan Chase Bank N.A.: | ||||||||
5.875%, 6–13–16 | 1,170 | 1,263 | ||||||
6.000%, 7–5–17 | 215 | 240 | ||||||
6.000%, 10–1–17 | 2,368 | 2,648 | ||||||
ULANI MSN 37894, | 3,329 | 3,285 | ||||||
|
| |||||||
23,892 | ||||||||
|
| |||||||
Property & Casualty Insurance – 0.7% |
| |||||||
Assurant, Inc., | 1,990 | 1,999 | ||||||
XL Capital Ltd., | 2,075 | 2,465 | ||||||
|
| |||||||
4,464 | ||||||||
|
| |||||||
Railroads – 0.9% |
| |||||||
BNSF Funding Trust I, | 6,280 | 7,045 | ||||||
|
| |||||||
Real Estate Operating Companies – 0.2% |
| |||||||
Helios Leasing I LLC, | 1,183 | 1,161 | ||||||
|
| |||||||
Regional Banks – 0.5% |
| |||||||
Synovus Financial Corp., | 3,025 | 3,388 | ||||||
|
| |||||||
Specialized REITs – 1.8% |
| |||||||
American Tower Trust I, 1.551%, 3–15–18 (A) | 6,365 | 6,261 | ||||||
Hospitality Properties Trust, | 4,000 | 4,055 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Specialized REITs (Continued) |
| |||||||
Ventas Realty L.P. and Ventas Capital Corp., | $ | 1,867 | $ | 1,837 | ||||
|
| |||||||
12,153 | ||||||||
|
| |||||||
Specialty Chemicals – 0.7% |
| |||||||
Ashland, Inc., | 4,450 | 4,461 | ||||||
|
| |||||||
Trading Companies & Distributors – 0.3% |
| |||||||
AmeriGas Finance Corp. and AmeriGas Finance LLC, | 1,500 | 1,560 | ||||||
AmeriGas Partners L.P. and AmeriGas Finance Corp., | 477 | 489 | ||||||
|
| |||||||
2,049 | ||||||||
|
| |||||||
Trucking – 0.2% |
| |||||||
Tagua Leasing LLC, | ||||||||
1.900%, 7–12–24 | 1,095 | 1,068 | ||||||
|
| |||||||
Wireless Telecommunication Service – 1.1% |
| |||||||
Crown Castle International Corp., | 4,050 | 4,685 | ||||||
MetroPCS Communications, Inc., | 1,500 | 1,534 | ||||||
T-Mobile USA, Inc., | 1,000 | 1,013 | ||||||
|
| |||||||
7,232 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 38.9% |
| $ | 265,460 | |||||
(Cost: $260,689) | ||||||||
MORTGAGE-BACKED SECURITIES |
| |||||||
Commercial Mortgage-Backed |
| |||||||
7 WTC Depositor LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC, | 1,970 | 2,042 | ||||||
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A, | 6,130 | 6,325 | ||||||
Banco Hipotecario Nacional: | 31 | — | * | |||||
0.000%, 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, | 2,850 | 2,812 |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Commercial Mortgage-Backed |
| |||||||
BB-UBS Trust 2012-SHOW, Commercial Mortgage Pass-Through Certificates, Series 2012 Class D, | $ | 1,425 | $ | 1,378 | ||||
Bear Stearns Commercial Mortgage Securities Trust 2004-PWR4, | 44 | 44 | ||||||
Bear Stearns Mortgage Securities, Inc., | 156 | 148 | ||||||
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPA, | 1,260 | 1,271 | ||||||
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD, | 1,240 | 1,249 | ||||||
Extended Stay America Trust Commercial Mortgage Pass-Through Certificates, Series 2013-ESH MZ, | 2,000 | 1,950 | ||||||
GS Mortgage Securities Corp. Trust Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR, | 1,000 | 969 | ||||||
Hometown Commercial Capital LLC, Hometown Commercial Mortgage Pass-Through Notes 2006-1, | 724 | 578 | ||||||
Hometown Commercial Trust 2007-1, Commercial Mortgage-Backed Notes, Series 2007-1, | 158 | 98 | ||||||
JPMorgan Chase Commercial Mortgage Securities Trust 2009-IWST, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST: | ||||||||
2.191%, 12–5–27 (A)(B) | 5,877 | 516 | ||||||
7.151%, 12–5–27 (A) | 1,425 | 1,731 | ||||||
7.694%, 12–5–27 (A)(B) | 2,600 | 3,173 | ||||||
Mellon Residential Funding, | 1 | 1 | ||||||
Morgan Stanley Capital I Trust 2012-C4, | 945 | 969 |
2014 | SEMIANNUAL REPORT | 13 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Commercial Mortgage-Backed |
| |||||||
Multi Security Asset Trust L.P., Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4: | ||||||||
5.000%, 11–28–35 (A) | $ | 371 | $ | 373 | ||||
5.270%, 11–28–35 (A) | 2,000 | 2,029 | ||||||
5.880%, 11–28–35 (A)(B) | 1,280 | 1,257 | ||||||
OBP Depositor LLC Trust, Commercial Mortgage Pass-Through Certificates, Series 2010-OBP, | 3,595 | 3,492 | ||||||
Queens Center Mortgage Trust 2013-QC, | 3,010 | 2,950 | ||||||
UBS-Barclays Commerical Mortgage Trust, Series 2012-C3 A4, | 2,885 | 2,863 | ||||||
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO, | 1,200 | 1,326 | ||||||
Wachovia Bank Commerical Mortgage Trust, Commerical Mortgage Pass-Through Certificates, Series 2004-C15, | 251 | 251 | ||||||
Wells Fargo Commerical Mortgage Trust, Series 2012-LC5 A3, | 3,173 | 3,128 | ||||||
WFRBS Commercial Mortgage Trust 2001-C2 A-2, | 1,485 | 1,529 | ||||||
WFRBS Commercial Mortgage Trust 2011-C5, | 1,135 | 1,186 | ||||||
WFRBS Commercial Mortgage Trust 2012-C10, Class A-3, | 3,539 | 3,468 | ||||||
|
| |||||||
49,106 | ||||||||
|
| |||||||
Other Mortgage-Backed Securities – 1.9% |
| |||||||
ABFS Mortgage Loan Trust 2001-2, | 409 | 363 | ||||||
Banc of America Alternative Loan Trust 2003-05, | 38 | — | * | |||||
Banc of America Mortgage Trust 2004-03, | 69 | 67 | ||||||
Bank of America Mortgage Securities, Inc., Mortgage Pass-Through Certificates, Series 2003-3, | 497 | 524 |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Other Mortgage-Backed Securities (Continued) |
| |||||||
C-Bass 2006-MH1 Trust: | ||||||||
5.970%, 10–25–36 (A)(B) | $ | 8 | $ | 8 | ||||
6.240%, 10–25–36 (A)(B) | 88 | 89 | ||||||
CHL Mortgage Pass-Through Trust 2004-J4, | 159 | 155 | ||||||
Collateralized Mortgage Obligation Trust, | 6 | 6 | ||||||
Connecticut Avenue Securities, Series 2013-C01, | 1,495 | 1,473 | ||||||
Credit Suisse Mortgage Trust 2014-ICE, Class C, | 4,225 | 4,235 | ||||||
CWHEQ Home Equity Loan Trust, Series 2007-S2, | 306 | 270 | ||||||
First Horizon Mortgage Pass-Through Trust 2007-4, | 64 | 62 | ||||||
GMACM Home Equity Loan Trust 2007-HE1, | 570 | 508 | ||||||
JPMorgan Mortgage Trust 2004-A3, | 188 | 190 | ||||||
Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 1997-C2, | 482 | 482 | ||||||
Morgan Stanley Capital I Trust 2012-STAR, | 1,350 | 1,348 | ||||||
Morgan Stanley Capital I Trust 2012-STAR, | 930 | 929 | ||||||
Morgan Stanley Capital I Trust, Series 2012-C4, | 244 | 244 | ||||||
Prudential Home Mortgage Securities: | ||||||||
6.730%, 4–28–24 (A)(B) | 1 | 1 | ||||||
7.922%, 9–28–24 (A)(B) | 2 | 2 | ||||||
RASC, Series 2003-KS10 Trust, | 162 | 102 | ||||||
RFMSI, Series 2004-S5 Trust: | ||||||||
4.500%, 5–25–19 | 111 | 101 | ||||||
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, | 742 | 487 | ||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-21, | 393 | 6 |
MORTGAGE-BACKED SECURITIES (Continued) | Principal | Value | ||||||
Other Mortgage-Backed Securities (Continued) |
| |||||||
Structured Asset Mortgage Investments, Inc., | $ | 6 | $ | 2 | ||||
TimberStar Trust I, | 1,560 | 1,634 | ||||||
|
| |||||||
13,288 | ||||||||
|
| |||||||
TOTAL MORTGAGE-BACKED SECURITIES – 9.1% |
| $ | 62,394 | |||||
(Cost: $64,017) | ||||||||
MUNICIPAL BONDS – TAXABLE |
| |||||||
Alabama – 0.1% |
| |||||||
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013T, | 470 | 476 | ||||||
|
| |||||||
Florida – 0.1% |
| |||||||
Sarasota Cnty, FL, Cap Impvt Rev Bonds, Ser 2010A, | 520 | 604 | ||||||
|
| |||||||
New York – 0.9% |
| |||||||
Port Auth of NY & NJ Consolidated Bonds, 168th Ser, | 3,190 | 3,475 | ||||||
Port Auth of NY & NJ Consolidated Bonds, Ser 174, | 3,000 | 3,003 | ||||||
|
| |||||||
6,478 | ||||||||
|
| |||||||
Washington – 0.2% |
| |||||||
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A, | 1,205 | 1,325 | ||||||
|
| |||||||
TOTAL MUNICIPAL BONDS –TAXABLE – 1.3% |
| $ | 8,883 | |||||
(Cost: $8,269) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS |
| |||||||
Agency Obligations – 0.8% |
| |||||||
Federal Farm Credit Bank, | 5,600 | 5,249 | ||||||
Federal National Mortgage Association, | 122 | 136 | ||||||
|
| |||||||
5,385 | ||||||||
|
| |||||||
Mortgage-Backed Obligations – 20.7% |
| |||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | ||||||||
2.354%, 9–25–24 (B) | 4,000 | 3,961 | ||||||
5.300%, 1–15–33 | 133 | 144 |
14 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | ||||||||
5.500%, 12–1–17 | $ | 84 | $ | 89 | ||||
5.500%, 9–1–19 | 123 | 131 | ||||||
5.000%, 4–1–23 | 431 | 466 | ||||||
1.807%, 8–25–24 | 2,645 | 2,652 | ||||||
3.500%, 8–1–26 | 921 | 969 | ||||||
2.500%, 3–1–28 | 856 | 866 | ||||||
2.500%, 4–1–28 | 848 | 858 | ||||||
5.000%, 5–1–29 | 86 | 96 | ||||||
3.500%, 5–1–32 | 1,746 | 1,818 | ||||||
6.500%, 9–1–32 | 64 | 75 | ||||||
6.000%, 11–1–33 | 84 | 97 | ||||||
5.500%, 5–1–34 | 662 | 752 | ||||||
6.500%, 5–1–34 | 166 | 188 | ||||||
5.500%, 6–1–34 | 225 | 253 | ||||||
5.000%, 9–1–34 | 4 | 5 | ||||||
5.500%, 9–1–34 | 9 | 10 | ||||||
5.500%, 10–1–34 | 281 | 313 | ||||||
5.500%, 7–1–35 | 102 | 113 | ||||||
5.000%, 8–1–35 | 111 | 123 | ||||||
5.500%, 10–1–35 | 100 | 112 | ||||||
5.000%, 11–1–35 | 244 | 269 | ||||||
5.000%, 12–1–35 | 75 | 83 | ||||||
6.500%, 7–1–36 | 118 | 137 | ||||||
7.000%, 12–1–37 | 132 | 152 | ||||||
5.500%, 2–1–39 | 554 | 621 | ||||||
5.000%, 11–1–39 | 234 | 261 | ||||||
5.000%, 1–1–40 | 1,372 | 1,525 | ||||||
5.000%, 3–1–40 | 2,030 | 2,269 | ||||||
5.000%, 4–1–40 | 445 | 493 | ||||||
5.000%, 8–1–40 | 462 | 511 | ||||||
4.000%, 10–1–40 | 1,178 | 1,244 | ||||||
4.000%, 11–1–40 | 1,110 | 1,178 | ||||||
4.500%, 1–1–41 | 1,336 | 1,449 | ||||||
4.000%, 2–1–41 | 2,100 | 2,219 | ||||||
4.000%, 3–1–41 | 642 | 680 | ||||||
4.500%, 3–1–41 | 596 | 647 | ||||||
4.500%, 4–1–41 | 1,487 | 1,621 | ||||||
4.000%, 6–1–41 | 708 | 750 | ||||||
4.000%, 8–1–41 | 556 | 587 | ||||||
4.000%, 11–1–41 | 5,792 | 6,115 | ||||||
3.500%, 1–1–42 | 2,359 | 2,422 | ||||||
3.500%, 3–1–42 | 2,392 | 2,449 | ||||||
3.000%, 8–1–42 | 1,659 | 1,645 | ||||||
3.500%, 8–1–42 | 4,264 | 4,364 | ||||||
3.000%, 1–1–43 | 1,809 | 1,794 | ||||||
3.000%, 2–1–43 | 2,231 | 2,219 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.000%, 9–1–17 | 12 | 13 | ||||||
6.000%, 1–1–18 | 39 | 41 | ||||||
5.500%, 2–1–18 | 48 | 51 | ||||||
5.500%, 3–1–18 | 9 | 10 | ||||||
5.000%, 5–1–18 | 178 | 188 | ||||||
5.000%, 6–1–18 | 41 | 43 | ||||||
5.000%, 7–1–18 | 18 | 19 | ||||||
5.000%, 10–1–18 | 121 | 128 | ||||||
5.500%, 9–1–19 | 43 | 46 | ||||||
3.000%, 9–1–22 | 1,322 | 1,376 | ||||||
5.000%, 7–1–23 | 216 | 238 | ||||||
6.000%, 8–1–23 | 245 | 268 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
5.500%, 2–1–24 | $ | 85 | $ | 94 | ||||
4.500%, 4–1–25 | 395 | 422 | ||||||
3.500%, 11–1–25 | 588 | 621 | ||||||
3.500%, 6–1–26 | 1,021 | 1,076 | ||||||
3.500%, 10–1–26 TBA | 125 | 131 | ||||||
3.000%, 10–1–27 | 130 | 134 | ||||||
2.500%, 11–1–27 | 1,657 | 1,662 | ||||||
2.500%, 10–1–28 | 705 | 709 | ||||||
6.000%, 8–1–29 | 77 | 87 | ||||||
7.500%, 5–1–31 | 30 | 34 | ||||||
7.000%, 9–1–31 | 11 | 13 | ||||||
7.000%, 11–1–31 | 125 | 149 | ||||||
6.500%, 12–1–31 | 12 | 14 | ||||||
6.500%, 2–1–32 | 133 | 155 | ||||||
7.000%, 2–1–32 | 99 | 117 | ||||||
7.000%, 3–1–32 | 156 | 187 | ||||||
6.500%, 4–1–32 | 25 | 29 | ||||||
6.500%, 5–1–32 | 55 | 64 | ||||||
6.500%, 7–1–32 | 19 | 22 | ||||||
6.500%, 8–1–32 | 27 | 32 | ||||||
6.000%, 9–1–32 | 29 | 33 | ||||||
6.500%, 9–1–32 | 67 | 78 | ||||||
6.000%, 10–1–32 | 549 | 635 | ||||||
6.500%, 10–1–32 | 58 | 66 | ||||||
6.000%, 11–1–32 | 413 | 479 | ||||||
3.500%, 12–1–32 | 2,473 | 2,582 | ||||||
6.000%, 3–1–33 | 647 | 750 | ||||||
5.500%, 4–1–33 | 403 | 456 | ||||||
6.000%, 4–1–33 | 35 | 40 | ||||||
5.500%, 5–1–33 | 52 | 59 | ||||||
6.000%, 6–1–33 | 226 | 257 | ||||||
6.500%, 8–1–33 | 19 | 21 | ||||||
6.000%, 10–1–33 | 43 | 48 | ||||||
6.000%, 12–1–33 | 115 | 131 | ||||||
5.500%, 1–1–34 | 123 | 138 | ||||||
5.500%, 1–1–34 | 118 | 132 | ||||||
6.000%, 1–1–34 | 78 | 89 | ||||||
5.000%, 3–1–34 | 443 | 490 | ||||||
5.000%, 3–1–34 | 55 | 61 | ||||||
5.500%, 3–1–34 | 47 | 54 | ||||||
5.500%, 4–1–34 | 49 | 55 | ||||||
5.000%, 5–1–34 | 29 | 33 | ||||||
6.000%, 8–1–34 | 106 | 120 | ||||||
5.500%, 9–1–34 | 308 | 346 | ||||||
6.000%, 9–1–34 | 136 | 154 | ||||||
6.500%, 9–1–34 | 204 | 233 | ||||||
5.500%, 11–1–34 | 485 | 544 | ||||||
6.000%, 11–1–34 | 196 | 223 | ||||||
6.500%, 11–1–34 | 13 | 15 | ||||||
5.000%, 12–1–34 | 714 | 790 | ||||||
5.500%, 1–1–35 | 364 | 410 | ||||||
5.500%, 1–1–35 | 140 | 158 | ||||||
5.500%, 2–1–35 | 832 | 942 | ||||||
6.500%, 3–1–35 | 250 | 289 | ||||||
5.000%, 4–1–35 | 135 | 149 | ||||||
5.500%, 4–1–35 | 235 | 262 | ||||||
4.500%, 5–1–35 | 484 | 523 | ||||||
5.500%, 6–1–35 | 12 | 13 | ||||||
4.500%, 7–1–35 | 385 | 417 | ||||||
5.000%, 7–1–35 | 811 | 898 | ||||||
5.000%, 7–1–35 | 166 | 183 | ||||||
5.500%, 7–1–35 | 120 | 135 | ||||||
5.500%, 8–1–35 | 16 | 18 | ||||||
5.500%, 10–1–35 | 481 | 546 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
5.500%, 11–1–35 | $ | 297 | $ | 332 | ||||
5.500%, 12–1–35 | 310 | 347 | ||||||
5.000%, 2–1–36 | 78 | 86 | ||||||
5.500%, 2–1–36 | 296 | 321 | ||||||
6.500%, 2–1–36 | 94 | 107 | ||||||
5.500%, 9–1–36 | 349 | 391 | ||||||
5.500%, 11–1–36 | 172 | 192 | ||||||
6.000%, 11–1–36 | 103 | 116 | ||||||
6.000%, 1–1–37 | 85 | 96 | ||||||
6.000%, 5–1–37 | 189 | 217 | ||||||
5.500%, 6–1–37 | 89 | 101 | ||||||
6.000%, 8–1–37 | 100 | 113 | ||||||
6.000%, 9–1–37 | 121 | 139 | ||||||
7.000%, 10–1–37 | 17 | 19 | ||||||
5.500%, 3–1–38 | 311 | 354 | ||||||
5.000%, 4–1–38 | 400 | 448 | ||||||
5.500%, 5–1–38 | 175 | 195 | ||||||
6.000%, 10–1–38 | 369 | 419 | ||||||
6.000%, 12–1–38 | 211 | 238 | ||||||
4.500%, 6–1–39 | 250 | 273 | ||||||
5.000%, 12–1–39 | 539 | 605 | ||||||
5.500%, 12–1–39 | 399 | 449 | ||||||
5.000%, 3–1–40 | 1,383 | 1,540 | ||||||
6.000%, 6–1–40 | 222 | 251 | ||||||
4.500%, 10–1–40 | 1,210 | 1,309 | ||||||
4.000%, 12–1–40 | 1,702 | 1,796 | ||||||
3.500%, 4–1–41 | 2,510 | 2,575 | ||||||
4.000%, 4–1–41 | 1,590 | 1,685 | ||||||
4.500%, 4–1–41 | 2,907 | 3,167 | ||||||
5.000%, 4–1–41 | 350 | 391 | ||||||
4.500%, 7–1–41 | 1,674 | 1,815 | ||||||
4.000%, 8–1–41 | 1,257 | 1,326 | ||||||
4.000%, 9–1–41 | 2,022 | 2,139 | ||||||
3.500%, 10–1–41 TBA | 1,990 | 2,034 | ||||||
4.000%, 10–1–41 | 3,278 | 3,463 | ||||||
3.500%, 11–1–41 | 4,177 | 4,287 | ||||||
3.500%, 1–1–42 | 4,009 | 4,108 | ||||||
3.000%, 3–1–42 | 1,565 | 1,547 | ||||||
3.500%, 8–1–42 | 2,597 | 2,664 | ||||||
3.000%, 9–1–42 | 2,615 | 2,591 | ||||||
3.000%, 10–1–42 | 2,100 | 2,070 | ||||||
3.500%, 2–1–43 | 1,809 | 1,860 | ||||||
3.500%, 3–1–43 | 2,659 | 2,731 | ||||||
3.000%, 5–1–43 | 973 | 961 | ||||||
4.000%, 1–1–44 | 1,537 | 1,632 | ||||||
Government National Mortgage Association Agency REMIC/CMO: | ||||||||
0.333%, 3–16–34 (B)(D) | 449 | 1 | ||||||
0.643%, 7–16–40 (B)(D) | 314 | 5 | ||||||
0.000%, 3–16–42 (B)(D)(E) | 696 | — | * | |||||
0.358%, 6–17–45 (B)(D) | 1,588 | 17 | ||||||
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
6.250%, 7–15–24 | 83 | 94 | ||||||
4.000%, 8–20–31 | 857 | 901 | ||||||
5.000%, 7–15–33 | 240 | 266 | ||||||
5.000%, 7–15–34 | 192 | 213 | ||||||
5.500%, 12–15–34 | 253 | 285 | ||||||
5.000%, 1–15–35 | 294 | 325 | ||||||
5.000%, 12–15–35 | 442 | 488 | ||||||
4.000%, 6–20–36 | 1,202 | 1,258 |
2014 | SEMIANNUAL REPORT | 15 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
5.500%, 7–15–38 | $ | 253 | $ | 284 | ||||
5.500%, 10–15–38 | 281 | 318 | ||||||
5.500%, 2–15–39 | 127 | 141 | ||||||
5.000%, 12–15–39 | 197 | 220 | ||||||
5.000%, 1–15–40 | 1,456 | 1,616 | ||||||
4.500%, 6–15–40 | 669 | 736 | ||||||
5.000%, 7–15–40 | 514 | 569 | ||||||
4.000%, 12–20–40 | 737 | 790 | ||||||
4.000%, 1–15–41 | 1,130 | 1,201 | ||||||
4.000%, 10–15–41 | 679 | 725 | ||||||
3.500%, 10–20–43 | 1,408 | 1,458 | ||||||
3.000%, 10–1–44 | 365 | 367 | ||||||
3.500%, 10–1–44 | 1,500 | 1,550 | ||||||
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 1, | 92 | 104 | ||||||
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2, | 28 | 31 | ||||||
|
| |||||||
141,486 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 21.5% |
| $ | 146,871 | |||||
(Cost: $146,648) |
UNITED STATES GOVERNMENT OBLIGATIONS | Principal | Value | ||||||
Treasury Obligations – 15.1% |
| |||||||
U.S. Treasury Bonds: | ||||||||
5.375%, 2–15–31 (F) | $ | 4,940 | $ | 6,540 | ||||
3.625%, 2–15–44 | 6,890 | 7,447 | ||||||
U.S. Treasury Notes: | ||||||||
0.250%, 2–29–16 | 5,330 | 5,326 | ||||||
0.875%, 5–15–17 | 1,960 | 1,958 | ||||||
1.000%, 9–15–17 | 660 | 659 | ||||||
0.875%, 1–31–18 | 19,260 | 19,007 | ||||||
1.625%, 8–31–19 | 13,125 | 13,039 | ||||||
2.250%, 4–30–21 | 4,510 | 4,534 | ||||||
2.000%, 5–31–21 | 1,150 | 1,137 | ||||||
2.125%, 6–30–21 | 4,980 | 4,959 | ||||||
2.250%, 7–31–21 | 3,000 | 3,011 | ||||||
2.000%, 8–31–21 | 6,000 | 5,919 | ||||||
2.375%, 8–15–24 | 9,410 | 9,304 | ||||||
3.375%, 5–15–44 | 19,455 | 20,086 | ||||||
|
| |||||||
102,926 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT |
| $ | 102,926 | |||||
(Cost: $102,079) | ||||||||
SHORT-TERM SECURITIES |
| |||||||
Commercial Paper – 4.2% |
| |||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | 3,057 | 3,057 | ||||||
Army & Air Force Exchange Service, | 2,000 | 2,000 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
BMW U.S. Capital LLC (GTD by BMW AG), | $ | 5,000 | $ | 5,000 | ||||
Clorox Co. (The), | 2,600 | 2,600 | ||||||
Diageo Capital plc (GTD by Diageo plc), | 2,000 | 2,000 | ||||||
Illinois Tool Works, Inc., | 7,600 | 7,599 | ||||||
Kroger Co. (The), | 1,784 | 1,784 | ||||||
Virginia Electric and Power Co., | 5,000 | 5,000 | ||||||
|
| |||||||
29,040 | ||||||||
|
| |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp., | 634 | 634 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 29,674 | |||||
(Cost: $29,675) | ||||||||
TOTAL INVESTMENT |
| $ | 692,418 | |||||
(Cost: $685,975) | ||||||||
LIABILITIES, NET OF |
| (9,759 | ) | |||||
NET ASSETS – 100.0% |
| $ | 682,659 |
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, 2014, the total value of these securities amounted to $103,568 or 15.2% of net assets. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(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, 2014. |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
The following futures contracts were outstanding at September 30, 2014 (contracts unrounded):
Description | Type | Expiration Date | Number of Contracts | Value | Unrealized Appreciation | |||||||||||
U.S. 10-Year Treasury Note | Short | 12–31–14 | 146 | $ | (18,198 | ) | $ | 103 | ||||||||
U.S. Treasury Long Bond | Short | 12–31–14 | 61 | (8,412 | ) | 84 | ||||||||||
|
| |||||||||||||||
$ | (26,610 | ) | $ | 187 | ||||||||||||
|
|
16 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Bond Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | 6,848 | $ | — | $ | — | ||||||
Asset-Backed Securities | — | 67,005 | 2,357 | |||||||||
Corporate Debt Securities | — | 265,460 | — | |||||||||
Mortgage-Backed Securities | — | 62,394 | — | * | ||||||||
Municipal Bonds | — | 8,883 | — | |||||||||
United States Government Agency Obligations | — | 146,871 | — | * | ||||||||
United States Government Obligations | — | 102,926 | — | |||||||||
Short-Term Securities | — | 29,674 | — | |||||||||
Total | $ | 6,848 | $ | 683,213 | $ | 2,357 | ||||||
Futures Contracts | $ | 187 | $ | — | $ | — |
During the period ended September 30, 2014, securities totaling $1,457 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 $8,789 were transferred from Level 3 to Level 2 due to the increased availability of observable market data due to increased market activity or information. There were no transfers between Level 1 and 2 during the period.
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.
2014 | SEMIANNUAL REPORT | 17 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.3% | |||
Consumer Discretionary | 18.3% | |||
Health Care | 14.9% | |||
Information Technology | 14.8% | |||
Industrials | 11.9% | |||
Financials | 11.1% | |||
Consumer Staples | 9.2% | |||
Energy | 9.1% | |||
Materials | 4.3% | |||
Telecommunication Services | 1.7% | |||
Cash and Cash Equivalents | 4.7% |
Lipper Rankings
Category: Lipper Large-Cap Core Funds | Rank | Percentile | ||
1 Year | 556/884 | 63 | ||
3 Year | 269/774 | 35 | ||
5 Year | 112/715 | 16 | ||
10 Year | 29/488 | 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 | |
Canadian Pacific Railway Ltd. | Industrials | |
Applied Materials, Inc. | Information Technology | |
Bank of America Corp. | Financials | |
Citigroup, Inc. | Financials | |
Shire Pharmaceuticals Group plc ADR | Health Care | |
American International Group, Inc. | Financials | |
Anheuser-Busch InBev S.A. ADR | Consumer Staples | |
Phillips 66 | Energy | |
Noble Energy, Inc. | Energy | |
Dow Chemical Co. (The) | Materials |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
18 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Core Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Application Software – 4.3% |
| |||||||
Adobe Systems, Inc. (A) | 418 | $ | 28,949 | |||||
Autodesk, Inc. (A) | 291 | 16,012 | ||||||
|
| |||||||
44,961 | ||||||||
|
| |||||||
Auto Parts & Equipment – 1.3% |
| |||||||
Delphi Automotive plc | 220 | 13,476 | ||||||
|
| |||||||
Automobile Manufacturers – 1.7% |
| |||||||
Ford Motor Co. | 1,209 | 17,881 | ||||||
|
| |||||||
Biotechnology – 1.6% |
| |||||||
Biogen Idec, Inc. (A) | 52 | 17,301 | ||||||
|
| |||||||
Brewers – 2.9% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 276 | 30,595 | ||||||
|
| |||||||
Broadcasting – 2.5% |
| |||||||
CBS Corp., Class B | 485 | 25,938 | ||||||
|
| |||||||
Cable & Satellite – 5.4% |
| |||||||
Charter Communications, Inc., Class A (A) | 109 | 16,482 | ||||||
Comcast Corp., Class A | 389 | 20,943 | ||||||
Time Warner Cable, Inc. | 139 | 19,916 | ||||||
|
| |||||||
57,341 | ||||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Cummins, Inc. | 75 | 9,833 | ||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Alliance Data Systems Corp. (A) | 58 | 14,463 | ||||||
MasterCard, Inc., Class A | 357 | 26,375 | ||||||
|
| |||||||
40,838 | ||||||||
|
| |||||||
Diversified Banks – 3.9% |
| |||||||
Bank of America Corp. | 2,407 | 41,041 | ||||||
|
| |||||||
Diversified Chemicals – 4.3% |
| |||||||
Dow Chemical Co. (The) | 554 | 29,067 | ||||||
PPG Industries, Inc. | 85 | 16,723 | ||||||
|
| |||||||
45,790 | ||||||||
|
| |||||||
Health Care Equipment – 2.0% |
| |||||||
Medtronic, Inc. | 341 | 21,131 | ||||||
|
| |||||||
Home Improvement Retail – 2.0% |
| |||||||
Home Depot, Inc. (The) | 228 | 20,880 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 1.2% |
| |||||||
Hilton Worldwide Holdings, Inc. (A) | 529 | 13,017 | ||||||
|
| |||||||
Hypermarkets & Super Centers – 2.4% |
| |||||||
Costco Wholesale Corp. | 204 | 25,615 | ||||||
|
| |||||||
Industrial Machinery – 2.2% |
| |||||||
Flowserve Corp. | 334 | 23,518 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Internet Retail – 1.0% |
| |||||||
Amazon.com, Inc. (A) | 32 | $ | 10,447 | |||||
|
| |||||||
Internet Software & Services – 0.5% |
| |||||||
Twitter, Inc. (A) | 102 | 5,282 | ||||||
|
| |||||||
Managed Health Care – 2.0% |
| |||||||
Humana, Inc. | 165 | 21,459 | ||||||
|
| |||||||
Motorcycle Manufacturers – 1.8% |
| |||||||
Harley-Davidson, Inc. | 323 | 18,781 | ||||||
|
| |||||||
Multi-Line Insurance – 3.4% |
| |||||||
American International Group, Inc. | 661 | 35,707 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 4.3% |
| |||||||
Cabot Oil & Gas Corp. | 505 | 16,499 | ||||||
Noble Energy, Inc. | 426 | 29,094 | ||||||
|
| |||||||
45,593 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 2.9% |
| |||||||
Phillips 66 | 370 | 30,117 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 1.9% |
| |||||||
MarkWest Energy Partners L.P. | 262 | 20,119 | ||||||
|
| |||||||
Other Diversified Financial Services – 3.8% |
| |||||||
Citigroup, Inc. | 774 | 40,114 | ||||||
|
| |||||||
Packaged Foods & Meats – 1.9% |
| |||||||
Mead Johnson Nutrition Co. | 207 | 19,937 | ||||||
|
| |||||||
Pharmaceuticals – 9.3% |
| |||||||
Allergan, Inc. | 66 | 11,796 | ||||||
Bristol-Myers Squibb Co. | 469 | 24,009 | ||||||
Shire Pharmaceuticals Group plc ADR | 151 | 39,012 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 422 | 22,683 | ||||||
|
| |||||||
97,500 | ||||||||
|
| |||||||
Railroads – 8.8% |
| |||||||
Canadian Pacific Railway Ltd. | 230 | 47,676 | ||||||
Kansas City Southern | 199 | 24,107 | ||||||
Union Pacific Corp. | 188 | 20,383 | ||||||
|
| |||||||
92,166 | ||||||||
|
| |||||||
Restaurants – 1.4% |
| |||||||
Chipotle Mexican Grill, Inc., Class A (A) | 23 | 15,132 | ||||||
|
| |||||||
Semiconductor Equipment – 3.9% |
| |||||||
Applied Materials, Inc. | 1,901 | 41,070 | ||||||
|
| |||||||
Semiconductors – 2.2% |
| |||||||
Texas Instruments, Inc. | 494 | 23,549 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Tobacco – 2.0% |
| |||||||
Philip Morris International, Inc. | 256 | $ | 21,356 | |||||
|
| |||||||
Wireless Telecommunication Service – 1.7% |
| |||||||
American Tower Corp., Class A | 192 | 17,949 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 1,005,434 | |||||
(Cost: $818,188) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 3.8% |
| |||||||
Air Products and Chemicals, Inc., 0.100%, 10-15-14 (B) | $ | 5,000 | 5,000 | |||||
Army & Air Force Exchange Service, 0.080%, 10-27-14 (B) | 2,000 | 2,000 | ||||||
Bemis Co., Inc., | 2,700 | 2,700 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG), 0.090%, 10-1-14 (B) | 4,000 | 4,000 | ||||||
BorgWarner, Inc., | 5,000 | 4,999 | ||||||
Danaher Corp., | 2,000 | 2,000 | ||||||
Diageo Capital plc (GTD by Diageo plc): | ||||||||
0.260%, 10-8-14 (B) | 4,000 | 4,000 | ||||||
0.250%, 10-9-14 (B) | 2,000 | 2,000 | ||||||
0.270%, 10-10-14 (B) | 10,800 | 10,799 | ||||||
Mondelez International, Inc., | 2,726 | 2,726 | ||||||
|
| |||||||
40,224 | ||||||||
|
| |||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp., | 2,095 | 2,095 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 4.0% |
| $ | 42,319 | |||||
(Cost: $42,319) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.3% |
| $ | 1,047,753 | |||||
(Cost: $860,507) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7% |
| 7,276 | ||||||
NET ASSETS – 100.0% |
| $ | 1,055,029 |
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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
2014 | SEMIANNUAL REPORT | 19 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Core Equity Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | 1,005,434 | $ | — | $ | — | ||||||
Short-Term Securities | — | 42,319 | — | |||||||||
Total | $ | 1,005,434 | $ | 42,319 | $ | — |
As of September 30, 2014, 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.
20 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 79.2% | |||
Financials | 26.9% | |||
Consumer Discretionary | 15.1% | |||
Industrials | 13.9% | |||
Energy | 11.5% | |||
Materials | 5.8% | |||
Consumer Staples | 3.6% | |||
Information Technology | 2.4% | |||
Bonds | 2.3% | |||
Corporate Debt Securities | 2.2% | |||
Other Government Securities | 0.1% | |||
Cash and Cash Equivalents | 18.5% |
Lipper Rankings
Category: Lipper Global Multi-Cap Value Funds | Rank | Percentile | ||
1 Year | 101/109 | 92 | ||
3 Year | 27/81 | 33 | ||
5 Year | 38/60 | 63 | ||
10 Year | 19/30 | 62 |
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 | 34.2% | |||
United States | 28.4% | |||
Canada | 5.8% | |||
Pacific Basin | 25.0% | |||
South Korea | 12.9% | |||
Japan | 6.9% | |||
Hong Kong | 5.2% | |||
Europe | 22.3% | |||
France | 5.1% | |||
Germany | 4.1% | |||
United Kingdom | 4.1% | |||
Other Europe | 9.0% | |||
South America | 0.0% | |||
Cash and Cash Equivalents | 18.5% |
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 | |||
POSCO | South Korea | Materials | Steel | |||
Bank of America Corp. | United States | Financials | Diversified Banks | |||
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares | Germany | Financials | Reinsurance | |||
SANKYO Co. Ltd. | Japan | Consumer Discretionary | Leisure Products | |||
News Corp., Class A | United States | Consumer Discretionary | Publishing | |||
EnCana Corp. | Canada | Energy | Oil & Gas Exploration & Production | |||
LG Corp. | South Korea | Industrials | Industrial Conglomerates | |||
Henderson Land Development Co. Ltd. | Hong Kong | Financials | Diversified Real Estate Activities |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 21 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Cundill Global Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Brazil – 0.0% |
| |||||||
HRT Participacoes Em Petroleo S.A. (A) | 28 | $ | 126 | |||||
|
| |||||||
Canada – 3.6% |
| |||||||
EnCana Corp. | 628 | 13,311 | ||||||
|
| |||||||
France – 5.1% |
| |||||||
Compagnie de Saint-Gobain | 160 | 7,336 | ||||||
Vallourec | 85 | 3,909 | ||||||
Vinci | 135 | 7,833 | ||||||
|
| |||||||
19,078 | ||||||||
|
| |||||||
Germany – 4.1% |
| |||||||
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares | 77 | 15,264 | ||||||
|
| |||||||
Greece – 2.2% |
| |||||||
EFG Eurobank Ergasias S.A. (A) | 17,500 | 6,896 | ||||||
Intralot S.A. Integrated Lottery Systems and Services (A) | 626 | 1,266 | ||||||
|
| |||||||
8,162 | ||||||||
|
| |||||||
Hong Kong – 5.2% |
| |||||||
First Pacific Co. Ltd. | 6,167 | 6,425 | ||||||
Henderson Land Development Co. Ltd. | 2,012 | 13,036 | ||||||
|
| |||||||
19,461 | ||||||||
|
| |||||||
Italy – 2.2% |
| |||||||
Mediaset S.p.A. (A) | 2,186 | 8,394 | ||||||
|
| |||||||
Japan – 6.9% |
| |||||||
Honda Motor Co. Ltd. | 205 | 7,092 | ||||||
SANKYO Co. Ltd. | 391 | 14,001 | ||||||
Sega Sammy Holdings, Inc. | 299 | 4,813 | ||||||
|
| |||||||
25,906 | ||||||||
|
| |||||||
Netherlands – 3.1% |
| |||||||
TNT Express N.V. | 1,047 | 4,523 | ||||||
TNT Express N.V. | 1,124 | 7,120 | ||||||
|
| |||||||
11,643 | ||||||||
|
| |||||||
Russia – 1.4% |
| |||||||
OAO LUKOIL ADR | 100 | 5,111 | ||||||
|
| |||||||
South Korea – 12.9% |
| |||||||
Korea Tobacco & Ginseng Corp. | 70 | 6,229 | ||||||
LG Corp. | 181 | 13,173 | ||||||
Nongshim Co. Ltd. | 27 | 6,932 | ||||||
POSCO | 57 | 17,782 | ||||||
POSCO ADR | 54 | 4,106 | ||||||
|
| |||||||
48,222 | ||||||||
|
| |||||||
United Kingdom – 4.1% |
| |||||||
BP plc ADR | 160 | 7,053 | ||||||
Group 4 Securicor plc | 2,059 | 8,367 | ||||||
|
| |||||||
15,420 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States – 25.3% |
| |||||||
American International Group, Inc. | 400 | $ | 21,629 | |||||
Bank of America Corp. | 990 | 16,879 | ||||||
Chesapeake Energy Corp. | 233 | 5,364 | ||||||
Citigroup, Inc. | 386 | 20,020 | ||||||
GameStop Corp., Class A | 190 | 7,812 | ||||||
Microsoft Corp. | 190 | 8,799 | ||||||
News Corp., | 819 | 13,393 | ||||||
Seventy Seven Energy, Inc. (A) | 17 | 396 | ||||||
|
| |||||||
94,292 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 284,390 | |||||
(Cost: $235,412) | ||||||||
PREFERRED STOCKS |
| |||||||
United States – 3.1% |
| |||||||
Chesapeake Energy Corp., 5.75% Cumulative (B) | 10 | 11,622 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 11,622 | |||||
(Cost: $10,733) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Canada – 2.2% |
| |||||||
BlackBerry Ltd., Convertible, | $7,020 | 8,073 | ||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 2.2% |
| $ | 8,073 | |||||
(Cost: $7,020) | ||||||||
OTHER GOVERNMENT SECURITIES+ |
| |||||||
Greece – 0.1% |
| |||||||
Hellenic Republic: | ||||||||
2.000%, 2–24–23 (C) | EUR | 18 | 17 | |||||
2.000%, 2–24–24 (C) | 18 | 18 | ||||||
2.000%, 2–24–25 (C) | 18 | 17 | ||||||
2.000%, 2–24–26 (C) | 18 | 16 | ||||||
2.000%, 2–24–27 (C) | 18 | 16 | ||||||
2.000%, 2–24–28 (C) | 19 | 17 | ||||||
2.000%, 2–24–29 (C) | 19 | 16 | ||||||
2.000%, 2–24–30 (C) | 19 | 16 | ||||||
2.000%, 2–24–31 (C) | 19 | 16 | ||||||
2.000%, 2–24–32 (C) | 19 | 15 | ||||||
2.000%, 2–24–33 (C) | 19 | 15 | ||||||
2.000%, 2–24–34 (C) | 19 | 15 | ||||||
2.000%, 2–24–35 (C) | 19 | 15 | ||||||
2.000%, 2–24–36 (C) | 19 | 15 | ||||||
2.000%, 2–24–37 (C) | 19 | 15 | ||||||
2.000%, 2–24–38 (C) | 19 | 15 | ||||||
2.000%, 2–24–39 (C) | 19 | 15 | ||||||
2.000%, 2–24–40 (C) | 19 | 14 |
OTHER GOVERNMENT SECURITIES+ (Continued) | Principal | Value | ||||||
Greece (Continued) |
| |||||||
2.000%, 2–24–41 (C) | EUR 19 | $ | 15 | |||||
2.000%, 2–24–42 (C) | 19 | 15 | ||||||
0.000%, 10–15–42 (C)(D) | 378 | 6 | ||||||
|
| |||||||
319 | ||||||||
|
| |||||||
TOTAL OTHER GOVERNMENT SECURITIES – 0.1% |
| $ | 319 | |||||
(Cost: $92) | ||||||||
SHORT-TERM SECURITIES |
| |||||||
Commercial Paper- 10.9% |
| |||||||
Federal Home Loan Bank: | ||||||||
0.030%, 10–10–14 (E) | $ | 9,000 | 8,999 | |||||
0.040%, 10–22–14 (E) | 6,500 | 6,500 | ||||||
0.060%, 11–7–14 (E) | 1,500 | 1,500 | ||||||
0.050%, 11–14–14 (E) | 4,000 | 4,000 | ||||||
0.030%, 11–21–14 (E) | 5,693 | 5,693 | ||||||
0.010%, 11–28–14 (E) | 1,500 | 1,500 | ||||||
Freddie Mac Discount Notes: | ||||||||
0.030%, 11–17–14 (E) | 12,000 | 11,999 | ||||||
0.010%, 12–12–14 (E) | 700 | 700 | ||||||
|
| |||||||
40,891 | ||||||||
|
| |||||||
United States Government Agency |
| |||||||
Overseas Private Investment Corp. (GTD by U.S. Government): | ||||||||
0.110%, 10–1–14 (F) | 8,000 | 8,000 | ||||||
0.110%, 10–1–14 (F) | 3,153 | 3,153 | ||||||
0.110%, 10–7–14 (F) | 9,649 | 9,649 | ||||||
0.110%, 10–7–14 (F) | 3,000 | 3,000 | ||||||
0.110%, 10–7–14 (F) | 1,224 | 1,224 | ||||||
0.110%, 10–7–14 (F) | 588 | 588 | ||||||
|
| |||||||
25,614 | ||||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 66,505 | |||||
(Cost: $66,505) | ||||||||
TOTAL INVESTMENT |
| $ | 370,909 | |||||
(Cost: $319,762) | ||||||||
CASH AND OTHER ASSETS, |
| 2,626 | ||||||
NET ASSETS – 100.0% |
| $ | 373,535 |
22 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Cundill Global Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
+ | Other Government Securities include emerging market sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
(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, 2014, the total value of these securities amounted to $11,622 or 3.1% of net assets. |
(C) | Principal amounts are denominated in the indicated foreign currency, where applicable (EUR—Euro). |
(D) | Zero coupon bond. |
(E) | Rate shown is the yield to maturity at September 30, 2014. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | Japanese Yen | Citibank N.A. | 456,900 | 12–3–14 | $ | 303 | $ | — | ||||||||||||
Sell | Japanese Yen | Citibank N.A. | 757,200 | 12–17–14 | 530 | — | ||||||||||||||
Sell | Japanese Yen | Citibank N.A. | 600,000 | 1–7–15 | 220 | — | ||||||||||||||
Sell | Japanese Yen | Morgan Stanley International | 653,000 | 1–7–15 | 243 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 1,296 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 284,390 | $ | — | $ | — | ||||||
Preferred Stocks | — | 11,622 | — | |||||||||
Corporate Debt Securities | — | — | 8,073 | |||||||||
Other Government Securities | — | 319 | — | |||||||||
Short-Term Securities | — | 66,505 | — | |||||||||
Total | $ | 284,390 | $ | 78,446 | $ | 8,073 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,296 | $ | — |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Corporate Debt Securities | ||||
Beginning Balance 4-1-14 | $ | 7,117 | ||
Net realized gain (loss) | — | |||
Net change in unrealized appreciation (depreciation) | 956 | |||
Purchases | — | |||
Sales | — | |||
Amortization/Accretion of premium/discount | — | |||
Transfers into Level 3 during the period | 7,020 | |||
Transfers out of Level 3 during the period | (7,020 | ) | ||
Ending Balance 9-30-14 | $ | 8,073 | ||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | 1,053 |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | ||||
Assets | ||||||
Corporate Debt Securities | $8,073 | Third-party valuation service | Broker quotes |
2014 | SEMIANNUAL REPORT | 23 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Cundill Global Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GTD = Guaranteed
Market Sector Diversification |
| |||
(as a % of net assets) |
| |||
Financials | 26.9% | |||
Consumer Discretionary | 15.1% | |||
Industrials | 13.9% | |||
Energy | 11.5% |
Materials | 5.8% | |||
Consumer Staples | 3.6% | |||
Information Technology | 2.4% | |||
Telecommunication Services | 2.2% | |||
Other Government Securities | 0.1% | |||
Other+ | 18.5% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
24 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 96.7% | |||
Consumer Discretionary | 15.9% | |||
Industrials | 15.6% | |||
Health Care | 12.9% | |||
Financials | 12.6% | |||
Information Technology | 12.1% | |||
Consumer Staples | 10.0% | |||
Energy | 9.1% | |||
Materials | 6.0% | |||
Utilities | 1.5% | |||
Telecommunication Services | 1.0% | |||
Cash and Cash Equivalents | 3.3% |
Lipper Rankings
Category: Lipper Equity Income Funds | Rank | Percentile | ||
1 Year | 233/465 | 50 | ||
3 Year | 109/323 | 34 | ||
5 Year | 230/271 | 85 | ||
10 Year | 80/160 | 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.
Top 10 Equity Holdings
Company | Sector | |
JPMorgan Chase & Co. | Financials | |
Union Pacific Corp. | Industrials | |
Microchip Technology, Inc. | Information Technology | |
Home Depot, Inc. (The) | Consumer Discretionary | |
Anheuser-Busch InBev S.A. ADR | Consumer Staples | |
Limited Brands, Inc. | Consumer Discretionary | |
Teva Pharmaceutical Industries Ltd. ADR | Health Care | |
Wells Fargo & Co. | Financials | |
Bristol-Myers Squibb Co. | Health Care | |
Philip Morris International, Inc. | Consumer Staples |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 25 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Dividend Opportunities Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Advertising – 1.7% |
| |||||||
Omnicom Group, Inc. | 101 | $ | 6,986 | |||||
|
| |||||||
Aerospace & Defense – 3.9% |
| |||||||
Boeing Co. (The) | 62 | 7,840 | ||||||
Honeywell International, Inc. | 86 | 7,990 | ||||||
|
| |||||||
15,830 | ||||||||
|
| |||||||
Apparel Retail – 2.7% |
| |||||||
Limited Brands, Inc. | 163 | 10,924 | ||||||
|
| |||||||
Asset Management & Custody Banks – 1.3% |
| |||||||
Northern Trust Corp. | 79 | 5,388 | ||||||
|
| |||||||
Automobile Manufacturers – 1.9% |
| |||||||
Ford Motor Co. | 529 | 7,822 | ||||||
|
| |||||||
Brewers – 2.8% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 102 | 11,280 | ||||||
|
| |||||||
Cable & Satellite – 2.1% |
| |||||||
Comcast Corp., Class A | 155 | 8,325 | ||||||
|
| |||||||
Casinos & Gaming – 2.1% |
| |||||||
Wynn Resorts Ltd. | 45 | 8,350 | ||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Allison Transmission Holdings, Inc. | 276 | 7,850 | ||||||
Caterpillar, Inc. | 82 | 8,074 | ||||||
|
| |||||||
15,924 | ||||||||
|
| |||||||
Consumer Electronics – 1.1% |
| |||||||
Garmin Ltd. | 87 | 4,523 | ||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Paychex, Inc. | 121 | 5,348 | ||||||
|
| |||||||
Distillers & Vintners – 1.3% |
| |||||||
Diageo plc ADR | 47 | 5,406 | ||||||
|
| |||||||
Diversified Banks – 2.6% |
| |||||||
Wells Fargo & Co. | 204 | 10,592 | ||||||
|
| |||||||
Diversified Chemicals – 4.0% |
| |||||||
Dow Chemical Co. (The) | 145 | 7,588 | ||||||
PPG Industries, Inc. | 44 | 8,588 | ||||||
|
| |||||||
16,176 | ||||||||
|
| |||||||
Electric Utilities – 1.5% |
| |||||||
PPL Corp. | 189 | 6,202 | ||||||
|
| |||||||
Health Care Equipment – 1.8% |
| |||||||
Medtronic, Inc. | 118 | 7,298 | ||||||
|
| |||||||
Home Improvement Retail – 2.9% |
| |||||||
Home Depot, Inc. (The) | 126 | 11,572 | ||||||
|
| |||||||
Household Products – 1.9% |
| |||||||
Colgate-Palmolive Co. | 117 | 7,627 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Industrial Conglomerates – 1.2% |
| |||||||
3M Co. | 35 | $ | 4,987 | |||||
|
| |||||||
Industrial Gases – 1.0% |
| |||||||
Airgas, Inc. | 37 | 4,039 | ||||||
|
| |||||||
Industrial Machinery – 1.8% |
| |||||||
Eaton Corp. | 116 | 7,357 | ||||||
|
| |||||||
Industrial REITs – 1.4% |
| |||||||
ProLogis | 149 | 5,608 | ||||||
|
| |||||||
Integrated Oil & Gas – 1.9% |
| |||||||
Occidental Petroleum Corp. | 81 | 7,750 | ||||||
|
| |||||||
Integrated Telecommunication |
| |||||||
Verizon Communications, Inc. | 84 | 4,212 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 2.0% |
| |||||||
Schlumberger Ltd. | 79 | 7,993 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 5.2% |
| |||||||
Energy Transfer Equity L.P. | 113 | 6,959 | ||||||
MarkWest Energy Partners L.P. | 110 | 8,461 | ||||||
Phillips 66 Partners L.P. | 13 | 898 | ||||||
Plains GP Holdings L.P., Class A | 162 | 4,956 | ||||||
|
| |||||||
21,274 | ||||||||
|
| |||||||
Other Diversified Financial Services – 3.6% |
| |||||||
JPMorgan Chase & Co. | 241 | 14,491 | ||||||
|
| |||||||
Packaged Foods & Meats – 1.7% |
| |||||||
Mead Johnson Nutrition Co. | 72 | 6,899 | ||||||
|
| |||||||
Pharmaceuticals – 11.1% |
| |||||||
Bristol-Myers Squibb Co. | 188 | 9,620 | ||||||
Johnson & Johnson | 88 | 9,359 | ||||||
Merck & Co., Inc. | 109 | 6,479 | ||||||
Pfizer, Inc. | 289 | 8,531 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 203 | 10,886 | ||||||
|
| |||||||
44,875 | ||||||||
|
| |||||||
Property & Casualty Insurance – 2.2% |
| |||||||
ACE Ltd. | 86 | 8,966 | ||||||
|
| |||||||
Railroads – 3.3% |
| |||||||
Union Pacific Corp. | 124 | 13,428 | ||||||
|
| |||||||
Regional Banks – 1.5% |
| |||||||
PNC Financial Services Group, Inc. (The) | 71 | 6,072 | ||||||
|
| |||||||
Research & Consulting Services – 1.4% |
| |||||||
Nielsen Holdings N.V. | 130 | 5,783 | ||||||
|
| |||||||
Semiconductor Equipment – 2.2% |
| |||||||
Applied Materials, Inc. | 422 | 9,128 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductors – 6.4% |
| |||||||
Analog Devices, Inc. | 116 | $ | 5,736 | |||||
Microchip Technology, Inc. | 262 | 12,394 | ||||||
Texas Instruments, Inc. | 162 | 7,723 | ||||||
|
| |||||||
25,853 | ||||||||
|
| |||||||
Specialty Chemicals – 1.0% |
| |||||||
LyondellBasell Industries N.V., Class A | 37 | 4,053 | ||||||
|
| |||||||
Specialty Stores – 1.4% |
| |||||||
Tiffany & Co. | 60 | 5,762 | ||||||
|
| |||||||
Technology Hardware, Storage & |
| |||||||
Apple, Inc. | 88 | 8,886 | ||||||
|
| |||||||
Tobacco – 2.3% |
| |||||||
Philip Morris International, Inc. | 113 | 9,420 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 392,409 | |||||
(Cost: $285,489) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 2.8% |
| |||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | $ | 3,200 | 3,200 | |||||
DTE Energy Co. (GTD by Detroit Edison Co.), | 3,794 | 3,794 | ||||||
Kellogg Co., | 2,000 | 2,000 | ||||||
Mondelez International, Inc., | 2,262 | 2,262 | ||||||
|
| |||||||
11,256 | ||||||||
|
| |||||||
Master Note – 0.4% |
| |||||||
Toyota Motor Credit Corp., 0.102%, 10–7–14 (B) | 1,692 | 1,692 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 3.2% |
| $ | 12,948 | |||||
(Cost: $12,948) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.9% |
| $ | 405,357 | |||||
(Cost: $298,437) | ||||||||
CASH AND OTHER ASSETS, |
| 506 | ||||||
NET ASSETS – 100.0% |
| $ | 405,863 |
26 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Dividend Opportunities Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
(A) | Rate shown is the yield to maturity at September 30, 2014. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 392,409 | $ | — | $ | — | ||||||
Short-Term Securities | — | 12,948 | — | |||||||||
Total | $ | 392,409 | $ | 12,948 | $ | — |
As of September 30, 2014, 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
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 27 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.5% | |||
Information Technology | 21.6% | |||
Consumer Discretionary | 19.6% | |||
Financials | 16.4% | |||
Consumer Staples | 10.5% | |||
Industrials | 9.0% | |||
Materials | 8.4% | |||
Energy | 4.0% | |||
Health Care | 3.9% | |||
Utilities | 2.1% | |||
Purchased Options | 0.3% | |||
Bonds | 0.1% | |||
Corporate Debt Securities | 0.1% | |||
Cash and Cash Equivalents | 4.1% |
Lipper Rankings
Category: Lipper Emerging Markets Funds | Rank | Percentile | ||
1 Year | 51/672 | 8 | ||
3 Year | 131/483 | 28 | ||
5 Year | 217/322 | 68 | ||
10 Year | 85/151 | 56 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
Pacific Basin | 69.9% | |||
China | 20.6% | |||
South Korea | 12.2% | |||
Taiwan | 11.0% | |||
India | 10.7% | |||
Hong Kong | 7.1% | |||
Other Pacific Basin | 8.3% | |||
South America | 9.9% | |||
Brazil | 9.9% | |||
North America | 6.3% | |||
Mexico | 3.6% | |||
Other North America | 2.7% | |||
Europe | 6.0% | |||
Other | 3.5% | |||
Cash and Cash Equivalents and Options | 4.4% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
CAR, Inc. | China | Consumer Discretionary | Automotive Retail | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | Taiwan | Information Technology | Semiconductors | |||
Kweichow Moutai Co. Ltd., Class A | China | Consumer Staples | Distillers & Vintners | |||
JD.com, Inc. ADR | China | Consumer Discretionary | Internet Retail | |||
Petroleo Brasileiro S.A. | Brazil | Energy | Integrated Oil & Gas | |||
SAIC Motor Corp. Ltd., Class A | China | Consumer Discretionary | Automobile Manufacturers | |||
Baidu.com, Inc. ADR | China | Information Technology | Internet Software & Services | |||
Galaxy Entertainment Group | Hong Kong | Consumer Discretionary | Casinos & Gaming | |||
MediaTek, Inc. | Taiwan | Information Technology | Semiconductors | |||
Larsen & Toubro Ltd. | India | Industrials | Construction & Engineering |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
28 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Emerging Markets Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Brazil – 9.9% |
| |||||||
BRF-Brasil Foods S.A. | 555 | $ | 13,251 | |||||
BRMalls Participacoes S.A. | 824 | 6,479 | ||||||
Itau Unibanco Holdings S.A. | 740 | 10,322 | ||||||
Kroton Educacional S.A. | 1,192 | 7,492 | ||||||
Petroleo Brasileiro S.A. | 2,126 | 15,805 | ||||||
Raia Drogasil S.A. | 1,143 | 9,928 | ||||||
|
| |||||||
63,277 | ||||||||
|
| |||||||
China – 20.6% |
| |||||||
Alibaba Group Holding Ltd. ADR (A) | 22 | 1,955 | ||||||
Aluminum Corporation of China Ltd., H Shares (A) | 14,678 | 5,973 | ||||||
Baidu.com, Inc. ADR (A) | 66 | 14,388 | ||||||
BOC Hong Kong (Holdings) Ltd., H Shares | 14,519 | 6,507 | ||||||
Bona Film Group Ltd. ADR (A) | 501 | 3,010 | ||||||
CAR, Inc. (A)(B) | 18,235 | 26,270 | ||||||
China Petroleum & Chemical Corp., H Shares | 10,814 | 9,470 | ||||||
GCL-Poly Energy Holdings Ltd. | 11,824 | 4,340 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., H Shares | 2,228 | 7,632 | ||||||
JD.com, Inc. ADR (A)(C) | 734 | 18,952 | ||||||
Kweichow Moutai Co. Ltd., Class A | 753 | 19,891 | ||||||
SAIC Motor Corp. Ltd., Class A | 4,974 | 14,648 | ||||||
|
| |||||||
133,036 | ||||||||
|
| |||||||
Cyprus – 0.9% |
| |||||||
QIWI plc ADR | 187 | 5,913 | ||||||
|
| |||||||
Denmark – 0.8% |
| |||||||
Chr. Hansen Holding A/S | 126 | 4,871 | ||||||
|
| |||||||
Hong Kong – 7.1% |
| |||||||
Agricultural Bank of China Ltd., H Shares | 14,559 | 6,450 | ||||||
CGN Meiya Power Holdings Co., Ltd. (A)(B) | 6,000 | 1,321 | ||||||
China Modern Dairy Holdings Ltd., H Shares (A) | 7,354 | 3,410 | ||||||
Fosun International Ltd. | 10,667 | 12,803 | ||||||
Galaxy Entertainment Group | 2,450 | 14,230 | ||||||
WH Group Ltd. (A)(B) | 9,000 | 7,395 | ||||||
|
| |||||||
45,609 | ||||||||
|
| |||||||
India – 10.7% |
| |||||||
Axis Bank Ltd. | 1,499 | 9,170 | ||||||
HCL Technologies Ltd. | 318 | 8,823 | ||||||
HDFC Bank Ltd. | 789 | 11,143 | ||||||
Just Dial Ltd. | 357 | 9,416 | ||||||
Larsen & Toubro Ltd. | 572 | 13,500 | ||||||
Lupin Ltd. | 379 | 8,567 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
India (Continued) |
| |||||||
Page Industries Ltd. | 30 | $ | 3,854 | |||||
Shriram Transport Finance Co. Ltd. | 284 | 4,292 | ||||||
|
| |||||||
68,765 | ||||||||
|
| |||||||
Indonesia – 2.9% |
| |||||||
PT Bank Mandiri (Persero) Tbk | 7,725 | 6,387 | ||||||
PT Jasa Marga (Persero) Tbk | 10,602 | 5,612 | ||||||
PT Lippo Karawaci Tbk | 81,662 | 6,300 | ||||||
|
| |||||||
18,299 | ||||||||
|
| |||||||
Israel – 1.4% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 163 | 8,753 | ||||||
|
| |||||||
Malaysia – 1.9% |
| |||||||
Tenaga Nasional Berhad | 3,233 | 12,202 | ||||||
|
| |||||||
Mexico – 3.6% |
| |||||||
BanRegio Grupo Financiero S.A.B. de C.V. | 422 | 2,343 | ||||||
CEMEX S.A.B. de C.V. (A) | 5,923 | 7,717 | ||||||
Grupo Lala S.A.B. de C.V. | 909 | 2,226 | ||||||
OHL Mexico S.A.B. de C.V. (A) | 2,008 | 5,450 | ||||||
Promotora y Operadora de Infraestructura S.A.B. de C.V. (A) | 379 | 5,189 | ||||||
|
| |||||||
22,925 | ||||||||
|
| |||||||
Panama – 1.0% |
| |||||||
Copa Holdings S.A., Class A | 58 | 6,201 | ||||||
|
| |||||||
Russia – 2.9% |
| |||||||
Magnit OJSC GDR | 208 | 11,990 | ||||||
Sberbank of Russia ADR | 831 | 6,582 | ||||||
|
| |||||||
18,572 | ||||||||
|
| |||||||
South Africa – 1.1% |
| |||||||
Naspers Ltd., Class N | 63 | 6,985 | ||||||
|
| |||||||
South Korea – 12.2% |
| |||||||
Daewoo Shipbuilding & Marine Engineering Co. Ltd. | 419 | 8,062 | ||||||
Hotel Shilla Co. Ltd. | 116 | 13,189 | ||||||
Hyundai Motor Co. | 63 | 11,380 | ||||||
Kia Motors Corp. | 132 | 6,714 | ||||||
Kolao Holdings | — | * | — | * | ||||
LG Display Co. Ltd. (A) | 337 | 10,854 | ||||||
Naver Corp. | — | * | — | * | ||||
POSCO | 33 | 10,211 | ||||||
Samsung Fire & Marine Insurance Co. Ltd. | 44 | 11,886 | ||||||
SK hynix, Inc. | 155 | 6,862 | ||||||
|
| |||||||
79,158 | ||||||||
|
| |||||||
Taiwan – 11.0% |
| |||||||
Advanced Semiconductor Engineering, Inc. | 8,101 | 9,427 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Taiwan (Continued) |
| |||||||
Delta Electronics, Inc. | 1,515 | $ | 9,562 | |||||
MediaTek, Inc. | 924 | 13,684 | ||||||
Novatek Microelectronics Corp. | 1,887 | 9,336 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 5,716 | 22,550 | ||||||
Zhen Ding Technology Holding Ltd. | 2,348 | 6,800 | ||||||
|
| |||||||
71,359 | ||||||||
|
| |||||||
Thailand – 2.0% |
| |||||||
Kasikornbank Public Co. Ltd. | 1,739 | 12,549 | ||||||
|
| |||||||
Turkey – 1.4% |
| |||||||
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | 5,442 | 5,689 | ||||||
Turk Hava Yollari Anonim Ortakligi (A) | 1,088 | 3,093 | ||||||
|
| |||||||
8,782 | ||||||||
|
| |||||||
United Kingdom – 1.4% |
| |||||||
Rio Tinto plc | 181 | 8,919 | ||||||
|
| |||||||
United States – 2.7% |
| |||||||
Balchem Corp. | 47 | 2,681 | ||||||
FLIR Systems, Inc. | 146 | 4,561 | ||||||
Kansas City Southern (D) | 82 | 9,897 | ||||||
|
| |||||||
17,139 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 613,314 | |||||
(Cost: $512,301) | ||||||||
PURCHASED OPTIONS | Number of Contracts (Unrounded) | |||||||
ICICI Bank Ltd. ADR, | 2,100 | 617 | ||||||
JD.com, Inc., Class A ADR: Put $26.00, | 500 | 134 | ||||||
Put $27.00, | 3,000 | 1,005 | ||||||
Qihoo 360 Technology Co. Ltd. ADR: | ||||||||
Call $100.00, | 745 | 28 |
2014 | SEMIANNUAL REPORT | 29 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Emerging Markets Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
PURCHASED OPTIONS (Continued) | Number of Contracts (Unrounded) | Value | ||||||
Call $85.00, | 690 | $ | 203 | |||||
|
| |||||||
TOTAL PURCHASED |
| $ | 1,987 | |||||
(Cost: $2,969) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Singapore – 0.1% |
| |||||||
Olam International Ltd., | $ | 773 | 803 | |||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 0.1% |
| $ | 803 | |||||
(Cost: $745) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 3.8% |
| |||||||
BorgWarner, Inc., | $ | 8,000 | $ | 7,999 | ||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc): | ||||||||
0.090%, 10–21–14 (E) | 5,000 | 4,999 | ||||||
0.130%, 10–28–14 (E) | 5,000 | 5,000 | ||||||
Kroger Co. (The), 0.170%, 10–1–14 (E) | 1,467 | 1,467 | ||||||
St. Jude Medical, Inc., | 5,000 | 5,000 | ||||||
|
| |||||||
24,465 | ||||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.5% |
| |||||||
Toyota Motor Credit Corp., | $ | 2,897 | $ | 2,897 | ||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 27,362 | |||||
(Cost: $27,362) | ||||||||
TOTAL INVESTMENT |
| $ | 643,466 | |||||
(Cost: $543,377) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2%) |
| (1,402 | ) | |||||
NET ASSETS – 100.0% |
| $ | 642,064 |
Notes to Consolidated 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, 2014, the total value of these securities amounted to $34,986 or 5.4% of net assets. |
(C) | All or a portion of the security position is held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
(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) | Rate shown is the yield to maturity at September 30, 2014. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date the variable rate resets. |
The following total return swap agreements were outstanding at September 30, 2014:
Counterparty | Number of Shares | Underlying Security | Termination Date | Notional Amount | Financing Fee# | Unrealized Appreciation | ||||||||||||||
UBS AG, London | 3,870,000 | Daqin Railway Co. Ltd. | 12–17–14 | $ | 4,625 | USD LIBOR + 0.700 | % | $ | 274 | |||||||||||
|
|
# | 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, 2014 (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 | UBS AG | Put | 475 | March 2015 | $ | 170.00 | $ | 246 | $ | (215 | ) | |||||||||||||
ICICI Bank Ltd. ADR | N/A | Put | 1,265 | January 2015 | 20.00 | 250 | (7 | ) | ||||||||||||||||
N/A | Put | 1,985 | January 2015 | 28.00 | 517 | (26 | ) | |||||||||||||||||
N/A | Put | 2,100 | January 2015 | 45.00 | 414 | (347 | ) | |||||||||||||||||
N/A | Call | 2,100 | January 2015 | 60.00 | 330 | (78 | ) | |||||||||||||||||
JD.com, Inc., Class A ADR | N/A | Put | 500 | December 2014 | 20.00 | 33 | (28 | ) | ||||||||||||||||
N/A | Call | 500 | December 2014 | 30.00 | 134 | (50 | ) | |||||||||||||||||
Credit Suisse (USA), Inc. | Call | 3,000 | December 2014 | 32.00 | 528 | (187 | ) | |||||||||||||||||
Qihoo 360 Technology Co. Ltd. ADR | N/A | Put | 745 | December 2014 | 80.00 | 445 | (1,099 | ) | ||||||||||||||||
N/A | Call | 745 | December 2014 | 120.00 | 296 | (5 | ) | |||||||||||||||||
N/A | Put | 690 | March 2015 | 70.00 | 370 | (690 | ) | |||||||||||||||||
N/A | Call | 690 | March 2015 | 105.00 | 184 | (62 | ) | |||||||||||||||||
YY, Inc. ADR | N/A | Put | 310 | November 2014 | 40.00 | 154 | (4 | ) | ||||||||||||||||
|
| |||||||||||||||||||||||
$ | 3,901 | $ | (2,798 | ) | ||||||||||||||||||||
|
|
30 | SEMIANNUAL REPORT | 2014 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Emerging Markets Equity Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | 100,455 | $ | — | $ | 26,270 | ||||||
Consumer Staples | 68,090 | — | — | |||||||||
Energy | 25,275 | — | — | |||||||||
Financials | 106,099 | — | — | |||||||||
Health Care | 24,952 | — | — | |||||||||
Industrials | 57,005 | — | — | |||||||||
Information Technology | 138,470 | — | — | |||||||||
Materials | 53,175 | — | — | |||||||||
Utilities | 12,202 | — | 1,321 | |||||||||
Total Common Stocks | $ | 585,723 | $ | — | $ | 27,591 | ||||||
Purchased Options | 982 | 1,005 | — | |||||||||
Corporate Debt Securities | — | 803 | — | |||||||||
Short-Term Securities | — | 27,362 | — | |||||||||
Total | $ | 586,705 | $ | 29,170 | $ | 27,591 | ||||||
Swap Agreements | $ | — | $ | 274 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | 2,353 | $ | 445 | $ | — |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Common Stocks | ||||
Beginning Balance 4-1-14 | $ | — | ||
Net realized gain (loss) | — | |||
Net change in unrealized appreciation (depreciation) | 6,054 | |||
Purchases | 21,537 | |||
Sales | — | |||
Amortization/Accretion of premium/discount | — | |||
Transfers into Level 3 during the period | — | |||
Transfers out of Level 3 during the period | — | |||
Ending Balance 9-30-14 | $ | 27,591 | ||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | 6,054 |
There were no transfers between any levels during the period ended September 30, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | ||||
Assets | ||||||
Common Stocks | $27,591 | Broker quotes | Broker quotes |
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
GTD = Guaranteed
OTC = Over the Counter
2014 | SEMIANNUAL REPORT | 31 |
Table of Contents
CONSOLIDATED SCHEDULE OF INVESTMENTS
Ivy Emerging Markets Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Market Sector Diversification |
| |||
(as a % of net assets) |
| |||
Information Technology | 21.6% | |||
Consumer Discretionary | 19.6% | |||
Financials | 16.4% | |||
Consumer Staples | 10.6% | |||
Industrials | 9.0% | |||
Materials | 8.4% | |||
Energy | 4.0% | |||
Health Care | 3.9% | |||
Utilities | 2.1% | |||
Other+ | 4.4% |
+ | Includes options, cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
32 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 96.2% | |||
Financials | 17.2% | |||
Health Care | 15.4% | |||
Consumer Staples | 14.5% | |||
Industrials | 12.1% | |||
Consumer Discretionary | 10.9% | |||
Energy | 10.0% | |||
Information Technology | 6.8% | |||
Materials | 6.2% | |||
Telecommunication Services | 2.1% | |||
Utilities | 1.0% | |||
Cash and Cash Equivalents | 3.8% |
Lipper Rankings
Category: Lipper European Region Funds | Rank | Percentile | ||
1 Year | 25/118 | 22 | ||
3 Year | 69/94 | 73 | ||
5 Year | 64/82 | 78 | ||
10 Year | 53/68 | 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.
Country Weightings
Europe | 89.1% | |||
United Kingdom | 35.4% | |||
France | 18.5% | |||
Germany | 9.1% | |||
Switzerland | 8.1% | |||
Norway | 4.9% | |||
Netherlands | 4.5% | |||
Ireland | 4.0% | |||
Other Europe | 4.6% | |||
North America | 3.5% | |||
United States | 3.5% | |||
Bahamas/Caribbean | 2.3% | |||
Other | 1.3% | |||
Cash and Cash Equivalents | 3.8% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Ashtead Group plc | United Kingdom | Industrials | Trading Companies & Distributors | |||
Novartis AG, Registered Shares | Switzerland | Health Care | Pharmaceuticals | |||
ING Groep N.V., Certicaaten Van Aandelen | Netherlands | Financials | Diversified Banks | |||
Safran | France | Industrials | Aerospace & Defense | |||
Royal Dutch Shell plc, Class A | United Kingdom | Energy | Integrated Oil & Gas | |||
Sanofi-Aventis | France | Health Care | Pharmaceuticals | |||
Taylor Wimpey plc | United Kingdom | Consumer Discretionary | Homebuilding | |||
Prudential plc | United Kingdom | Financials | Life & Health Insurance | |||
Britvic plc | United Kingdom | Consumer Staples | Soft Drinks | |||
Roche Holdings AG, Genusscheine | Switzerland | Health Care | Pharmaceuticals |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 33 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy European Opportunities Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Austria – 0.7% |
| |||||||
ams AG | 35 | $ | 1,316 | |||||
|
| |||||||
Bermuda – 2.3% |
| |||||||
Archer Ltd. (A) | 1,154 | 1,620 | ||||||
Catlin Group Ltd. | 346 | 2,930 | ||||||
|
| |||||||
4,550 | ||||||||
|
| |||||||
Denmark – 1.0% |
| |||||||
Novo Nordisk A/S, Class B | 41 | 1,951 | ||||||
|
| |||||||
France – 18.5% |
| |||||||
Axa S.A. | 133 | 3,268 | ||||||
BNP Paribas S.A. | 36 | 2,388 | ||||||
Cap Gemini S.A. | 28 | 1,995 | ||||||
Compagnie Generale des Etablissements Michelin, Class B | 10 | 953 | ||||||
European Aeronautic Defence and Space Co. | 35 | 2,171 | ||||||
France Telecom | 131 | 1,969 | ||||||
Gaz de France | 36 | 913 | ||||||
Gemalto N.V. | 21 | 1,909 | ||||||
Ingenico S.A. | 25 | 2,563 | ||||||
Lafarge | 27 | 1,909 | ||||||
Peugeot S.A. | 76 | 977 | ||||||
Renault S.A. | 26 | 1,905 | ||||||
Safran | 67 | 4,342 | ||||||
Sanofi-Aventis | 37 | 4,219 | ||||||
Societe Generale S.A. | 48 | 2,461 | ||||||
Total S.A. | 30 | 1,950 | ||||||
|
| |||||||
35,892 | ||||||||
|
| |||||||
Germany – 8.1% |
| |||||||
Bayer AG | 14 | 1,891 | ||||||
Beiersdorf Aktiengesellschaft | 23 | 1,921 | ||||||
Fresenius SE & Co. KGaA | 53 | 2,599 | ||||||
GEA Group Aktiengesellschaft, Bochum | 45 | 1,956 | ||||||
Infineon Technologies AG | 179 | 1,856 | ||||||
KUKA Aktiengesellschaft | 16 | 988 | ||||||
Siemens AG | 16 | 1,919 | ||||||
United Internet AG | 62 | 2,634 | ||||||
|
| |||||||
15,764 | ||||||||
|
| |||||||
Ireland – 4.0% |
| |||||||
CRH plc | 42 | 961 | ||||||
Glanbia plc | 155 | 2,233 | ||||||
Kerry Group plc, Class A | 28 | 1,989 | ||||||
Smurfit Kappa Group plc | 116 | 2,542 | ||||||
|
| |||||||
7,725 | ||||||||
|
| |||||||
Israel – 1.3% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 46 | 2,467 | ||||||
|
| |||||||
Italy – 1.0% |
| |||||||
Banca Intesa S.p.A. | 323 | 981 | ||||||
ENEL S.p.A. | 191 | 1,014 | ||||||
|
| |||||||
1,995 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Netherlands – 4.5% |
| |||||||
AEGON N.V. | 296 | $ | 2,439 | |||||
Heineken N.V. | 26 | 1,975 | ||||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 304 | 4,344 | ||||||
|
| |||||||
8,758 | ||||||||
|
| |||||||
Norway – 4.9% |
| |||||||
DNB ASA | 159 | 2,985 | ||||||
DNO International ASA (A) | 933 | 2,918 | ||||||
Marine Harvest ASA | 258 | 3,603 | ||||||
|
| |||||||
9,506 | ||||||||
|
| |||||||
Spain – 0.9% |
| |||||||
ACS Actividades de Construccion y Servicios S.A. | 47 | 1,813 | ||||||
|
| |||||||
Sweden – 1.0% |
| |||||||
Svenska Cellulosa Aktiebolaget SCA (publ), Class B | 80 | 1,898 | ||||||
|
| |||||||
Switzerland – 8.1% |
| |||||||
ARYZTA AG | 34 | 2,901 | ||||||
Clariant Ltd., Registered Shares | 114 | 1,955 | ||||||
Nestle S.A., Registered Shares | 26 | 1,876 | ||||||
Novartis AG, Registered Shares | 56 | 5,241 | ||||||
Roche Holdings AG, Genusscheine | 12 | 3,677 | ||||||
|
| |||||||
15,650 | ||||||||
|
| |||||||
United Kingdom – 35.4% |
| |||||||
Afren plc (A) | 1,780 | 2,987 | ||||||
Ashtead Group plc | 311 | 5,254 | ||||||
AstraZeneca plc | 14 | 1,008 | ||||||
Bellway plc | 78 | 1,993 | ||||||
BG Group plc | 157 | 2,896 | ||||||
British American Tobacco plc | 35 | 1,959 | ||||||
British Sky Broadcasting Group plc | 184 | 2,628 | ||||||
Britvic plc | 346 | 3,746 | ||||||
BT Group plc | 331 | 2,036 | ||||||
easyJet plc | 90 | 2,074 | ||||||
Essentra plc | 138 | 1,790 | ||||||
Genel Energy plc (A) | 214 | 2,925 | ||||||
HSBC Holdings plc | 238 | 2,414 | ||||||
Imagination Technologies Group plc (A) | 282 | 861 | ||||||
ITV plc | 570 | 1,919 | ||||||
Legal & General Group plc | 691 | 2,564 | ||||||
NEXT plc | 17 | 1,842 | ||||||
Prudential plc | 170 | 3,793 | ||||||
Rio Tinto plc | 20 | 968 | ||||||
Royal Dutch Shell plc, Class A | 113 | 4,305 | ||||||
SABMiller plc | 36 | 2,006 | ||||||
Smith & Nephew plc | 120 | 2,028 | ||||||
St. James’s Place plc | 238 | 2,812 | ||||||
Taylor Wimpey plc | 2,147 | 3,927 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United Kingdom (Continued) |
| |||||||
Travis Perkins plc | 113 | $ | 3,043 | |||||
Whitbread plc | 28 | 1,904 | ||||||
WPP Group plc | 139 | 2,792 | ||||||
|
| |||||||
68,474 | ||||||||
|
| |||||||
United States – 3.5% |
| |||||||
Alexion Pharmaceuticals, Inc. (A) | 13 | 2,139 | ||||||
InBev N.V. | 18 | 2,015 | ||||||
Incyte Corp. (A) | 55 | 2,697 | ||||||
|
| |||||||
6,851 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 184,610 | |||||
(Cost: $171,585) | ||||||||
PREFERRED STOCKS |
| |||||||
Germany – 1.0% |
| |||||||
Henkel AG & Co. KGaA | 19 | 1,877 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 1,877 | |||||
(Cost: $1,942) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Master Note – 0.6% |
| |||||||
Toyota Motor Credit Corp., | $ | 1,176 | 1,176 | |||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 1,176 | |||||
(Cost: $1,176) | ||||||||
TOTAL INVESTMENT |
| $ | 187,663 | |||||
(Cost: $174,703) | ||||||||
CASH AND OTHER ASSETS, |
| 6,193 | ||||||
NET ASSETS – 100.0% |
| $ | 193,856 |
34 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy European Opportunities Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | British Pound | State Street Global Markets | 18,000 | 10–10–14 | $ | 358 | $ | — | ||||||||||||
Sell | Euro | State Street Global Markets | 16,700 | 10–10–14 | 952 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 1,310 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 184,610 | $ | — | $ | — | ||||||
Preferred Stocks | 1,877 | — | — | |||||||||
Short-Term Securities | — | 1,176 | — | |||||||||
Total | $ | 186,487 | $ | 1,176 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,310 | $ | — |
As of September 30, 2014, there were no transfers between Level 1 and 2 during the period.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
Market Sector Diversification |
| |||
(as a % of net assets) |
| |||
Financials | 17.2% | |||
Health Care | 15.4% | |||
Consumer Staples | 14.5% | |||
Industrials | 12.1% | |||
Consumer Discretionary | 10.9% | |||
Energy | 10.0% | |||
Information Technology | 6.8% | |||
Materials | 6.2% | |||
Telecommunication Services | 2.1% | |||
Utilities | 1.0% | |||
Other+ | 3.8% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 35 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 8.4% | |||
Utilities | 2.1% | |||
Energy | 1.7% | |||
Health Care | 1.7% | |||
Financials | 1.1% | |||
Information Technology | 1.1% | |||
Materials | 0.7% | |||
Bonds | 89.1% | |||
Corporate Debt Securities | 57.4% | |||
United States Government and Government Agency Obligations | 25.7% | |||
Other Government Securities | 4.4% | |||
Loans | 1.6% | |||
Cash and Cash Equivalents | 2.5% |
Quality Weightings
Investment Grade | 54.5% | |||
AA | 27.6% | |||
A | 0.9% | |||
BBB | 26.0% | |||
Non-Investment Grade | 34.6% | |||
BB | 21.1% | |||
B | 8.3% | |||
CCC | 2.8% | |||
Non-rated | 2.4% | |||
Cash and Cash Equivalents and Equities | 10.9% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
Lipper Rankings
Category: Lipper Global Income Funds | Rank | Percentile | ||
1 Year | 97/222 | 44 | ||
3 Year | 39/157 | 25 | ||
5 Year | 55/121 | 46 |
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 | 41.6% | |||
United States | 35.9% | |||
Other North America | 5.7% | |||
Europe | 23.8% | |||
United Kingdom | 5.3% | |||
Luxembourg | 5.2% | |||
Netherlands | 3.7% | |||
Other Europe | 9.6% | |||
South America | 20.5% | |||
Brazil | 10.9% | |||
Other South America | 9.6% | |||
Pacific Basin | 8.2% | |||
Singapore | 3.6% | |||
Other Pacific Basin | 4.6% | |||
Bahamas/Caribbean | 2.4% | |||
Other | 0.7% | |||
Middle East | 0.3% | |||
Cash and Cash Equivalents | 2.5% |
36 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Consumer Finance – 1.1% |
| |||||||
Banco Latinoamericano de Comercio Exterior S.A. | 115 | $ | 3,524 | |||||
|
| |||||||
Diversified Chemicals – 0.7% |
| |||||||
Dow Chemical Co. (The) | 42 | 2,214 | ||||||
|
| |||||||
Electric Utilities – 1.9% |
| |||||||
Alupar Investimento S.A. (A) | 199 | 1,405 | ||||||
PPL Corp. | 88 | 2,889 | ||||||
Transmissora Alianca de Energia Eletrica S.A. (A) | 181 | 1,460 | ||||||
|
| |||||||
5,754 | ||||||||
|
| |||||||
Integrated Oil & Gas – 1.0% |
| |||||||
Royal Dutch Shell plc, Class A (A) | 88 | 3,365 | ||||||
|
| |||||||
Oil & Gas Drilling – 0.7% |
| |||||||
Seadrill Partners LLC | 69 | 2,137 | ||||||
|
| |||||||
Pharmaceuticals – 1.7% |
| |||||||
Bristol-Myers Squibb Co. | 43 | 2,207 | ||||||
GlaxoSmithKline plc (A) | 141 | 3,237 | ||||||
|
| |||||||
5,444 | ||||||||
|
| |||||||
Semiconductors – 1.1% |
| |||||||
Intel Corp. | 101 | 3,506 | ||||||
|
| |||||||
Water Utilities – 0.2% |
| |||||||
Aguas Andinas S.A. (A) | 1,051 | 608 | ||||||
|
| |||||||
TOTAL COMMON STOCKS – 8.4% |
| $ | 26,552 | |||||
(Cost: $22,160) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Aerospace & Defense – 1.4% |
| |||||||
Embraer Overseas Ltd., | $ | 2,675 | 2,921 | |||||
TransDigm, Inc., | 1,607 | 1,587 | ||||||
|
| |||||||
4,508 | ||||||||
|
| |||||||
Agricultural Products – 1.3% |
| |||||||
Corporacion Pesquera Inca S.A.C.: | ||||||||
9.000%, 2–10–17 | 2,022 | 1,981 | ||||||
9.000%, 2–10–17 (B) | 1,575 | 1,544 | ||||||
Marfrig Holdings (Europe) B.V., | 500 | 487 | ||||||
Tonon Luxembourg S.A., | 250 | 241 | ||||||
|
| |||||||
4,253 | ||||||||
|
| |||||||
Airlines – 1.1% |
| |||||||
Aeropuertos Argentina 2000 S.A.: | ||||||||
10.750%, 12–1–20 (B) | 1,183 | 1,245 | ||||||
10.750%, 12–1–20 | 85 | 89 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Airlines (Continued) |
| |||||||
Guanay Finance Ltd., | $ | 1,500 | $ | 1,593 | ||||
TAM Capital 2, Inc.: | ||||||||
9.500%, 1–29–20 (B) | 425 | 449 | ||||||
9.500%, 1–29–20 | 100 | 106 | ||||||
|
| |||||||
3,482 | ||||||||
|
| |||||||
Auto Parts & Equipment – 0.7% |
| |||||||
Schaeffler Finance B.V., | 750 | 816 | ||||||
Schaeffler Holding Finance B.V., | 1,317 | 1,369 | ||||||
|
| |||||||
2,185 | ||||||||
|
| |||||||
Automobile Manufacturers – 0.5% |
| |||||||
Tenedora Nemak S.A. de C.V., | 1,500 | 1,538 | ||||||
|
| |||||||
Broadcasting – 1.8% |
| |||||||
Globo Comunicacoe e Participacoes S.A.: | ||||||||
5.307%, 5–11–22 (B)(C) | 850 | 897 | ||||||
6.250%, 12–20–49 (C) | 3,587 | 3,700 | ||||||
6.250%, 12–20–49 (B)(C) | 1,000 | 1,031 | ||||||
|
| |||||||
5,628 | ||||||||
|
| |||||||
Cable & Satellite – 1.9% |
| |||||||
Net Servicos de Comunicacao S.A., | 2,570 | 2,708 | ||||||
Numericable Group S.A., | 1,727 | 1,740 | ||||||
VTR Finance B.V., | 1,680 | 1,739 | ||||||
|
| |||||||
6,187 | ||||||||
|
| |||||||
Coal & Consumable Fuels – 1.5% |
| |||||||
PT Adaro Indonesia: | ||||||||
7.625%, 10–22–19 (B) | 2,700 | 2,810 | ||||||
7.625%, 10–22–19 | 1,845 | 1,921 | ||||||
|
| |||||||
4,731 | ||||||||
|
| |||||||
Communications Equipment – 1.2% |
| |||||||
BC Luxco 1 S.A., | 3,700 | 3,794 | ||||||
|
| |||||||
Construction & Engineering – 2.1% |
| |||||||
OAS Finance Ltd.: | ||||||||
8.000%, 7–2–21 (B) | 500 | 480 | ||||||
8.875%, 4–29–49 (C) | 1,250 | 1,163 | ||||||
OAS Investments GmbH, | 1,050 | 1,030 | ||||||
Odebrecht Drilling Norbe VII/IX Ltd., | 2,472 | 2,543 | ||||||
Odebrecht Offshore Drilling Finance, | 954 | 989 | ||||||
|
| |||||||
6,205 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Construction Materials – 2.3% |
| |||||||
C5 Capital (SPV) Ltd., | $ | 1,600 | $ | 1,376 | ||||
CEMEX S.A.B. de C.V.: | ||||||||
6.500%, 12–10–19 (B) | 2,800 | 2,892 | ||||||
7.250%, 1–15–21 (B) | 1,200 | 1,269 | ||||||
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.), | 1,400 | 1,355 | ||||||
Hillman Group, Inc. (The), | 418 | 404 | ||||||
|
| |||||||
7,296 | ||||||||
|
| |||||||
Consumer Finance – 2.4% |
| |||||||
Banco BMG S.A., | 396 | 412 | ||||||
Banco Latinoamericano de Comercio Exterior S.A., | 5,200 | 5,395 | ||||||
General Motors Financial Co., Inc., | 1,300 | 1,313 | ||||||
VEB Finance Ltd., | 600 | 602 | ||||||
|
| |||||||
7,722 | ||||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Alliance Data Systems Corp., | 350 | 354 | ||||||
|
| |||||||
Diversified Banks – 7.2% |
| |||||||
Banco Bradesco S.A., | 1,850 | 1,919 | ||||||
Banco Cruzeiro do Sul S.A., | 1,500 | 227 | ||||||
Banco de Bogota S.A., | 400 | 421 | ||||||
Banco Santander Brasil S.A., | 750 | 758 | ||||||
Barclays plc, | 1,500 | 1,539 | ||||||
Caixa Economica Federal, | 2,150 | 2,139 | ||||||
HSBC Holdings plc, | 1,200 | 1,192 | ||||||
ICICI Bank Ltd.: | ||||||||
4.750%, 11–25–16 (B) | 1,250 | 1,317 | ||||||
4.800%, 5–22–19 (B) | 500 | 529 | ||||||
3.500%, 3–18–20 (B) | 1,400 | 1,402 | ||||||
SB Capital S.A., | 550 | 560 | ||||||
Societe Generale S.A., | 1,350 | 1,424 | ||||||
State Bank of India: | ||||||||
4.500%, 10–23–14 | 1,000 | 1,002 | ||||||
4.125%, 8–1–17 (B) | 1,200 | 1,251 | ||||||
3.250%, 4–18–18 (B) | 1,500 | 1,515 | ||||||
3.622%, 4–17–19 (B) | 1,000 | 1,015 | ||||||
VTB Capital S.A., | 4,710 | 4,703 | ||||||
|
| |||||||
22,913 | ||||||||
|
|
2014 | SEMIANNUAL REPORT | 37 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Metals & Mining – 1.7% |
| |||||||
Southern Copper Corp., | $ | 275 | $ | 286 | ||||
Suzano Trading Ltd., | 2,300 | 2,391 | ||||||
Uralkali Finance Ltd., | 1,100 | 1,048 | ||||||
Vedanta Resources plc, | 1,550 | 1,566 | ||||||
|
| |||||||
5,291 | ||||||||
|
| |||||||
Electric Utilities – 3.9% |
| |||||||
Emgesa S.A. E.S.P., | COP | 6,930,000 | 3,704 | |||||
ENEL Finance International S.A., | $ | 500 | 500 | |||||
Listrindo Capital B.V., | 2,550 | 2,697 | ||||||
Majapahit Holding B.V., | 1,200 | 1,329 | ||||||
Rural Electrification Corp. Ltd., | 1,675 | 1,719 | ||||||
RusHydro Finance Ltd., | RUB | 90,000 | 2,225 | |||||
Tata Electric Co., | $ | 250 | 274 | |||||
|
| |||||||
12,448 | ||||||||
|
| |||||||
Food Distributors – 1.5% |
| |||||||
Olam International Ltd.: | ||||||||
5.750%, 9–20–17 | 1,150 | 1,212 | ||||||
7.500%, 8–12–20 | 2,500 | 2,825 | ||||||
Olam International Ltd., Convertible, | 700 | 751 | ||||||
|
| |||||||
4,788 | ||||||||
|
| |||||||
Gas Utilities – 0.2% |
| |||||||
Transportadora de Gas del Sur S.A., | 564 | 550 | ||||||
|
| |||||||
Household Appliances – 0.1% |
| |||||||
Controladora Mabe S.A. de C.V., | 150 | 158 | ||||||
|
| |||||||
Independent Power Producers & Energy Traders – 0.8% |
| |||||||
China Resources Power Holdings Co. Ltd., | 2,500 | 2,532 | ||||||
|
| |||||||
Industrial Conglomerates – 0.5% |
| |||||||
Rearden G Holdings EINS GmbH, | 1,600 | 1,672 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Industrial Machinery – 0.2% |
| |||||||
Dynacast International LLC and Dynacast Finance, Inc., | $ | 710 | $ | 760 | ||||
|
| |||||||
Integrated Oil & Gas – 0.9% |
| |||||||
Petrobras Global Finance (GTD by Petroleo Brasileiro S.A.), | 2,750 | 2,786 | ||||||
|
| |||||||
Integrated Telecommunication |
| |||||||
Mobile TeleSystems OJSC, | 700 | 600 | ||||||
TBG Global Pte. Ltd., | 1,500 | 1,489 | ||||||
Verizon Communications, Inc., | 697 | 688 | ||||||
|
| |||||||
2,777 | ||||||||
|
| |||||||
IT Consulting & Other Services – 1.2% |
| |||||||
iGATE Corp., | 3,880 | 3,764 | ||||||
|
| |||||||
Marine – 0.6% |
| |||||||
SCF Capital Ltd.: | ||||||||
5.375%, 10–27–17 | 1,150 | 1,093 | ||||||
5.375%, 10–27–17 (B) | 1,000 | 950 | ||||||
|
| |||||||
2,043 | ||||||||
|
| |||||||
Oil & Gas Drilling – 3.0% |
| |||||||
Lancer Finance Co. (SPV) Ltd., | 565 | 570 | ||||||
Noble Group Ltd., | 1,400 | 1,435 | ||||||
Oro Negro Drilling Pte. Ltd., | 3,425 | 3,416 | ||||||
QGOG Atlantic/Alaskan Rigs Ltd.: | ||||||||
5.250%, 7–30–18 (B) | 1,942 | 2,015 | ||||||
5.250%, 7–30–18 | 212 | 220 | ||||||
Schahin II Finance Co. (SPV) Ltd., | 1,826 | 1,730 | ||||||
|
| |||||||
9,386 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.7% |
| |||||||
QGOG Constellation S.A., | 2,250 | 2,250 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 3.0% |
| |||||||
Novatek Finance Ltd.: | ||||||||
5.326%, 2–3–16 (B) | 2,200 | 2,231 | ||||||
7.750%, 2–21–17 (B)(E) | RUB | 55,000 | $ | 1,308 | ||||
Pacific Rubiales Energy Corp.: | ||||||||
5.375%, 1–26–19 (B) | $ | 2,000 | 2,028 | |||||
7.250%, 12–12–21 (B) | 650 | 707 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Exploration & Production (Continued) |
| |||||||
Pan American Energy LLC: | ||||||||
7.875%, 5–7–21 (B) | $ | 1,000 | $ | 1,045 | ||||
7.875%, 5–7–21 | 500 | 523 | ||||||
Ras Laffan Liquefied Natural Gas Co. Ltd., | 379 | 400 | ||||||
YPF Sociedad Anonima, | 1,300 | 1,339 | ||||||
|
| |||||||
9,581 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 0.4% |
| |||||||
Offshore Drilling Holding S.A., | 1,100 | 1,165 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 1.2% |
| |||||||
Empresas ICA S.A.B. de C.V., | 500 | 514 | ||||||
Empresas Publicas de Medellin E.S.P., | COP | 6,300,000 | 3,276 | |||||
|
| |||||||
3,790 | ||||||||
|
| |||||||
Other Diversified Financial Services – 0.7% |
| |||||||
Citigroup, Inc., | $ | 1,250 | 1,420 | |||||
MTS International Funding Ltd., | 750 | 643 | ||||||
|
| |||||||
2,063 | ||||||||
|
| |||||||
Packaged Foods & Meats – 2.6% |
| |||||||
BFF International Ltd., | 2,000 | 2,310 | ||||||
Cosan Finance Ltd., 7.000%, 2–1–17 | 128 | 140 | ||||||
JBS Finance II Ltd., | 2,400 | 2,501 | ||||||
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.), | 1,800 | 1,913 | ||||||
Marfrig Overseas Ltd., | 1,000 | 1,055 | ||||||
|
| |||||||
7,919 | ||||||||
|
| |||||||
Paper Products – 1.2% |
| |||||||
Fibria Overseas Finance Ltd., | 160 | 176 | ||||||
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.): | ||||||||
4.750%, 1–19–18 (B) | 1,925 | 2,026 | ||||||
4.375%, 5–15–23 (B) | 1,000 | 971 | ||||||
IRSA Inversiones y Representaciones S.A., | 625 | 616 | ||||||
|
| |||||||
3,789 | ||||||||
|
|
38 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Precious Metals & Minerals – 0.3% |
| |||||||
ALROSA Finance S.A., | $ | 850 | $ | 856 | ||||
|
| |||||||
Regional Banks – 0.9% |
| |||||||
OJSC Russian Agricultural Bank, | 2,950 | 2,851 | ||||||
|
| |||||||
Restaurants—0.5% |
| |||||||
Arcos Dorados Holdings, Inc., | BRL | 4,070 | 1,555 | |||||
|
| |||||||
Specialized Consumer Services – 0.7% |
| |||||||
B-Corp Merger Sub, Inc., | $ | 725 | 714 | |||||
World Wide Supply A.S., | 1,600 | 1,600 | ||||||
|
| |||||||
2,314 | ||||||||
|
| |||||||
Steel – 1.2% |
| |||||||
ArcelorMittal: | ||||||||
9.500%, 2–15–15 | 500 | 514 | ||||||
4.250%, 2–25–15 | 500 | 503 | ||||||
Evraz Group S.A., | 1,200 | 1,200 | ||||||
Steel Capital S.A., | 1,500 | 1,545 | ||||||
|
| |||||||
3,762 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 3.0% |
| |||||||
America Movil S.A.B. de C.V., | 800 | 811 | ||||||
American Tower Corp., | 1,400 | 1,431 | ||||||
Indosat Palapa Co. B.V., | 1,750 | 1,855 | ||||||
T-Mobile USA, Inc., | 2,977 | 2,977 | ||||||
Vimpel-Communications, | 1,775 | 1,802 | ||||||
VimpleCom Holdings B.V., | RUB | 25,000 | 594 | |||||
|
| |||||||
9,470 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 57.4% |
| $ | 181,116 | |||||
(Cost: $183,050) | ||||||||
OTHER GOVERNMENT SECURITIES+ | ||||||||
Argentina – 0.8% |
| |||||||
City of Buenos Aires, | $ | 1,000 | 1,000 | |||||
Province of Buenos Aires (The), | 1,500 | 1,425 | ||||||
|
| |||||||
2,425 | ||||||||
|
| |||||||
Brazil – 0.6% |
| |||||||
OI S.A., | BRL | 4,800 | 1,786 | |||||
|
|
OTHER GOVERNMENT SECURITIES+ (Continued) | Principal | Value | ||||||
Ireland – 0.1% |
| |||||||
Russian Railways via RZD Capital Ltd., | RUB | 19,000 | $ | 438 | ||||
|
| |||||||
Luxembourg – 0.2% |
| |||||||
BC Luxco 1 S.A., | $ | 550 | 564 | |||||
|
| |||||||
Netherlands – 0.1% |
| |||||||
Indosat Palapa Co. B.V., | 250 | 265 | ||||||
|
| |||||||
Russia – 0.4% |
| |||||||
Russian Federation, | 1,200 | 1,166 | ||||||
|
| |||||||
Supranational – 0.3% |
| |||||||
Central American Bank for Economic Integration, | 800 | 822 | ||||||
|
| |||||||
Venezuela – 1.9% |
| |||||||
Corporacion Andina de Fomento: | ||||||||
3.750%, 1–15–16 | 3,625 | 3,751 | ||||||
1.500%, 8–8–17 | 2,500 | 2,514 | ||||||
|
| |||||||
6,265 | ||||||||
|
| |||||||
TOTAL OTHER GOVERNMENT SECURITIES – 4.4% |
| $ | 13,731 | |||||
(Cost: $14,492) | ||||||||
LOANS |
| |||||||
Aerospace & Defense – 0.9% |
| |||||||
TransDigm, Inc.: | ||||||||
0.000%, 2–28–2(C)(I) | 2,095 | 2,056 | ||||||
3.750%, 2–28–20 (C) | 898 | 882 | ||||||
|
| |||||||
2,938 | ||||||||
|
| |||||||
Diversified Metals & Mining – 0.1% |
| |||||||
EP Minerals LLC, | 379 | 380 | ||||||
|
| |||||||
Metal & Glass Containers – 0.3% |
| |||||||
BakerCorp International, | 900 | 874 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 0.3% |
| |||||||
Empresas ICA S.A., | 1,000 | 993 | ||||||
|
| |||||||
TOTAL LOANS – 1.6% |
| $ | 5,185 | |||||
(Cost: $5,224) |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | Principal | Value | ||||||
Mortgage-Backed Obligations – 0.1% |
| |||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | ||||||||
4.000%, 7–15–23 (F) | $ | 689 | $ | 26 | ||||
4.000%, 2–15–24 (F) | 220 | 14 | ||||||
4.000%, 4–15–24 (F) | 270 | 28 | ||||||
5.500%, 1–15–38 (F) | 521 | 93 | ||||||
Federal National Mortgage Association Agency REMIC/CMO, | 25 | — | * | |||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates, | 74 | 79 | ||||||
Government National Mortgage Association Agency REMIC/CMO, | 555 | 27 | ||||||
|
| |||||||
267 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.1% |
| $ | 267 | |||||
(Cost: $1,864) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS | ||||||||
Treasury Obligations – 25.6% |
| |||||||
U.S. Treasury Notes: | 17,980 | 18,226 | ||||||
0.375%, 5–31–16 | 15,000 | 14,984 | ||||||
0.500%, 6–15–16 | 2,800 | 2,803 | ||||||
0.875%, 2–28–17 | 27,000 | 27,027 | ||||||
2.375%, 7–31–17 | 1,980 | 2,054 | ||||||
3.500%, 5–15–20 | 1,980 | 2,146 | ||||||
2.625%, 11–15–20 | 4,500 | 4,642 | ||||||
2.125%, 8–15–21 | 3,500 | 3,484 | ||||||
1.750%, 5–15–22 | 5,475 | 5,265 | ||||||
|
| |||||||
80,631 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT |
| $ | 80,631 | |||||
(Cost: $80,507) | ||||||||
SHORT-TERM SECURITIES | ||||||||
Commercial Paper – 0.6% |
| |||||||
Kroger Co. (The), | 2,000 | 2,000 | ||||||
|
|
2014 | SEMIANNUAL REPORT | 39 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 1.8% |
| |||||||
Toyota Motor Credit Corp., | $ | 5,588 | $ | 5,588 | ||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 7,588 | |||||
(Cost: $7,588) | ||||||||
TOTAL INVESTMENT |
| $ | 315,070 | |||||
(Cost: $314,885) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% |
| 178 | ||||||
NET ASSETS – 100.0% |
| $ | 315,248 |
Notes to Schedule of Investments
+ | Other Government Securities include emerging market sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
* | Not shown due to rounding. |
(A) | Listed on an exchange outside the United States. |
(B) | Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2014, the total value of these securities amounted to $121,102 or 38.4% of net assets. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(D) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
(E) | Principal amounts are denominated in the indicated foreign currency, where applicable (BRL—Brazilian Real, COP—Columbian Peso and RUB—Russian Ruble). |
(F) | Interest-only security. Amount shown as principal represents notional amount for computation of interest. |
(G) | Rate shown is the yield to maturity at September 30, 2014. |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
(I) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | British Pound | Barclays Capital, Inc. | 4,169 | 10–10–14 | $ | — | $ | 46 | ||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 26,552 | $ | — | $ | — | ||||||
Corporate Debt Securities | — | 177,920 | 3,196 | |||||||||
Other Government Securities | — | 13,731 | — | |||||||||
Loans | — | 3,812 | 1,373 | |||||||||
United States Government Agency Obligations | — | 267 | — | |||||||||
United States Government Obligations | — | 80,631 | — | |||||||||
Short-Term Securities | — | 7,588 | — | |||||||||
Total | $ | 26,552 | $ | 283,949 | $ | 4,569 | ||||||
Liabilities | ||||||||||||
Forward Foreign Currency Contracts | $ | — | $ | 46 | $ | — |
40 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Bond Fund (in thousands) | SEPTEMBER 30, 2014 (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 | Loans | |||||||
Beginning Balance 4-1-14 | $ | — | $ | — | ||||
Net realized gain (loss) | — | — | ||||||
Net change in unrealized appreciation (depreciation) | (31 | ) | (4 | ) | ||||
Purchases | 3,070 | 1,377 | ||||||
Sales | — | — | ||||||
Amortization/Accretion of premium/discount | (19 | ) | — | * | ||||
Transfers into Level 3 during the period | 176 | — | ||||||
Transfers out of Level 3 during the period | — | — | ||||||
Ending Balance 9-30-14 | $ | 3,196 | $ | 1,373 | ||||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | (31 | ) | $ | (4 | ) |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | ||||
Assets | ||||||
Corporate Debt Securities | $3,196 | Third-party valuation service | Broker quotes | |||
Loans | $1,373 | 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 | 36.4% | |||
Brazil | 10.9% | |||
United Kingdom | 5.3% | |||
Luxembourg | 5.2% | |||
Netherlands | 3.7% | |||
Singapore | 3.6% | |||
Russia | 3.4% | |||
Argentina | 3.0% | |||
Columbia | 3.0% | |||
Mexico | 2.9% |
Panama | 2.8% | |||
Indonesia | 2.5% | |||
Venezuela | 1.9% | |||
Ireland | 1.8% | |||
Chile | 1.7% | |||
Norway | 1.5% | |||
British Virgin Islands | 1.3% | |||
India | 1.3% | |||
France | 1.0% | |||
Other Countries | 4.3% | |||
Other+ | 2.5% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 41 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 96.0% | |||
Financials | 17.5% | |||
Health Care | 13.8% | |||
Energy | 12.8% | |||
Consumer Discretionary | 11.4% | |||
Industrials | 10.2% | |||
Consumer Staples | 8.7% | |||
Materials | 7.6% | |||
Utilities | 6.3% | |||
Telecommunication Services | 5.6% | |||
Information Technology | 2.1% | |||
Cash and Cash Equivalents | 4.0% |
Lipper Rankings
Category: Lipper Global Equity Income Funds | Rank | Percentile | ||
1 Year | 74/134 | 55 |
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 | 54.0% | |||
United Kingdom | 23.7% | |||
France | 10.9% | |||
Switzerland | 4.4% | |||
Norway | 3.7% | |||
Other Europe | 11.3% | |||
North America | 23.2% | |||
United States | 19.4% | |||
Canada | 3.8% | |||
Pacific Basin | 14.0% | |||
Australia | 6.4% | |||
Japan | 5.7% | |||
Other Pacific Basin | 1.9% | |||
Other | 3.3% | |||
Bahamas/Caribbean | 1.5% | |||
Cash and Cash Equivalents | 4.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Marine Harvest ASA | Norway | Consumer Staples | Packaged Foods & Meats | |||
Sanofi-Aventis | France | Health Care | Pharmaceuticals | |||
Royal Dutch Shell plc, Class A | United Kingdom | Energy | Integrated Oil & Gas | |||
Johnson & Johnson | United States | Health Care | Pharmaceuticals | |||
Bezeq-Israel Telecommunication Corp. Ltd. (The) | Israel | Telecommunication Services | Integrated Telecommunication Services | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
Taylor Wimpey plc | United Kingdom | Consumer Discretionary | Homebuilding | |||
Crescent Point Energy Corp. | Canada | Energy | Oil & Gas Exploration & Production | |||
Novartis AG, Registered Shares | Switzerland | Health Care | Pharmaceuticals | |||
Gaz de France | France | Utilities | Multi-Utilities |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
42 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Equity Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 6.4% |
| |||||||
Amcor Ltd. | 362 | $ | 3,589 | |||||
Macquarie Group Ltd. | 50 | 2,517 | ||||||
Mirvac Group | — | * | — | * | ||||
Pact Group Holdings Ltd. | 737 | 2,555 | ||||||
Spotless Group Holdings Ltd. (A) | 1,623 | 2,571 | ||||||
Telstra Corp. Ltd. ADR | 517 | 2,398 | ||||||
Westpac Banking Corp. | 81 | 2,287 | ||||||
|
| |||||||
15,917 | ||||||||
|
| |||||||
Belgium – 1.0% |
| |||||||
bpost S.A. de droit public / bpost N.V. van publiekrecht | 100 | 2,388 | ||||||
|
| |||||||
Bermuda – 1.5% |
| |||||||
Catlin Group Ltd. | 442 | 3,744 | ||||||
|
| |||||||
Canada – 3.8% |
| |||||||
Bank of Nova Scotia Berhad (The) | 41 | 2,556 | ||||||
Baytex Energy Corp. | 70 | 2,645 | ||||||
Crescent Point Energy Corp. | 122 | 4,396 | ||||||
|
| |||||||
9,597 | ||||||||
|
| |||||||
China – 1.0% |
| |||||||
PetroChina Co. Ltd., H Shares | 1,930 | 2,473 | ||||||
|
| |||||||
Denmark – 1.6% |
| |||||||
TDC A/S | 520 | 3,951 | ||||||
|
| |||||||
France – 10.9% |
| |||||||
Axa S.A. | 115 | 2,839 | ||||||
Compagnie Generale des Etablissements Michelin, Class B | 13 | 1,220 | ||||||
EDF S.A. | 83 | 2,720 | ||||||
France Telecom | 170 | 2,552 | ||||||
Gaz de France | 169 | 4,237 | ||||||
Safran | 48 | 3,131 | ||||||
Sanofi – Aventis | 50 | 5,642 | ||||||
Total S.A. | 75 | 4,900 | ||||||
|
| |||||||
27,241 | ||||||||
|
| |||||||
Germany – 1.2% |
| |||||||
Siemens AG | 25 | 2,947 | ||||||
|
| |||||||
Ireland – 1.1% |
| |||||||
CRH plc | 119 | 2,715 | ||||||
|
| |||||||
Israel – 3.3% |
| |||||||
Bezeq – Israel Telecommunication Corp. Ltd. (The) | 2,973 | 5,134 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 59 | 3,152 | ||||||
|
| |||||||
8,286 | ||||||||
|
| |||||||
Italy – 1.0% |
| |||||||
Banca Intesa S.p.A. | 411 | 1,249 | ||||||
ENEL S.p.A. | 238 | 1,262 | ||||||
|
| |||||||
2,511 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan – 5.7% |
| |||||||
Aozora Bank Ltd. | 909 | $ | 3,075 | |||||
ITOCHU Corp. | 277 | 3,387 | ||||||
Japan Airlines Corp. | 91 | 2,484 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 66 | 2,674 | ||||||
Toyota Motor Corp. | 45 | 2,640 | ||||||
|
| |||||||
14,260 | ||||||||
|
| |||||||
Luxembourg – 1.0% |
| |||||||
RTL Group S.A. | 30 | 2,562 | ||||||
|
| |||||||
Netherlands – 2.7% |
| |||||||
AEGON N.V. | 341 | 2,816 | ||||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 268 | 3,828 | ||||||
|
| |||||||
6,644 | ||||||||
|
| |||||||
Norway – 3.7% |
| |||||||
Marine Harvest ASA | 416 | 5,815 | ||||||
StatoilHydro ASA | 129 | 3,513 | ||||||
|
| |||||||
9,328 | ||||||||
|
| |||||||
Singapore – 0.9% |
| |||||||
Asian Pay Television Trust | 3,471 | 2,245 | ||||||
|
| |||||||
Spain – 1.0% |
| |||||||
ACS Actividades de Construccion y Servicios S.A. | 65 | 2,503 | ||||||
|
| |||||||
Switzerland – 4.4% |
| |||||||
Nestle S.A., Registered Shares | 34 | 2,520 | ||||||
Novartis AG, Registered Shares | 47 | 4,393 | ||||||
Roche Holdings AG, Genusscheine | 14 | 4,063 | ||||||
|
| |||||||
10,976 | ||||||||
|
| |||||||
United Kingdom – 23.7% |
| |||||||
AMEC plc | 131 | 2,345 | ||||||
AstraZeneca plc | 19 | 1,360 | ||||||
BAE Systems plc | 407 | 3,110 | ||||||
Bellway plc | 105 | 2,669 | ||||||
BHP Billiton plc | 89 | 2,469 | ||||||
BP plc | — | * | — | * | ||||
British American Tobacco plc | 58 | 3,289 | ||||||
British Sky Broadcasting Group plc | 215 | 3,074 | ||||||
Diageo plc | 87 | 2,525 | ||||||
HSBC Holdings plc | 291 | 2,954 | ||||||
Legal & General Group plc | 763 | 2,830 | ||||||
National Grid plc | 261 | 3,758 | ||||||
NEXT plc | 22 | 2,378 | ||||||
Prudential plc | 136 | 3,028 | ||||||
Royal Dutch Shell plc, Class A | 142 | 5,419 | ||||||
SABMiller plc | 42 | 2,345 | ||||||
SSE plc | 150 | 3,756 | ||||||
Standard Life plc (A) | 552 | 3,706 | ||||||
Taylor Wimpey plc | 2,474 | 4,523 | ||||||
WPP Group plc | 194 | 3,895 | ||||||
|
| |||||||
59,433 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States – 19.4% |
| |||||||
AbbVie, Inc. | 50 | $ | 2,869 | |||||
Bristol-Myers Squibb Co. | 51 | 2,620 | ||||||
ConocoPhillips | 48 | 3,680 | ||||||
Dow Chemical Co. (The) | 51 | 2,677 | ||||||
Ford Motor Co. | 210 | 3,108 | ||||||
HollyFrontier Corp. | 56 | 2,463 | ||||||
InBev N.V. | 24 | 2,699 | ||||||
International Paper Co. | 65 | 3,102 | ||||||
Johnson & Johnson | 49 | 5,171 | ||||||
Kimberly-Clark Corp. | 25 | 2,737 | ||||||
Lockheed Martin Corp. | 15 | 2,700 | ||||||
Merck & Co., Inc. | 46 | 2,708 | ||||||
Microchip Technology, Inc. | 55 | 2,589 | ||||||
Paychex, Inc. | 63 | 2,803 | ||||||
Pfizer, Inc. | 93 | 2,764 | ||||||
Two Harbors Investment Corp. | 412 | 3,982 | ||||||
|
| |||||||
48,672 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 238,393 | |||||
(Cost: $228,961) | ||||||||
PREFERRED STOCKS |
| |||||||
Luxembourg – 0.7% |
| |||||||
ArcelorMittal, 6.000%, Convertible | 82 | 1,746 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 1,746 | |||||
(Cost: $1,765) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp., | $ | 300 | 300 | |||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 300 | |||||
(Cost: $300) | ||||||||
TOTAL INVESTMENT |
| $ | 240,439 | |||||
(Cost: $231,026) | ||||||||
CASH AND OTHER ASSETS, NET OF |
| 9,803 | ||||||
NET ASSETS – 100.0% |
| $ | 250,242 |
2014 | SEMIANNUAL REPORT | 43 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Equity Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of (Denominated in | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | Australian Dollar | State Street Global Markets | 8,100 | 10–10–14 | $ | 447 | $ | — | ||||||||||||
Sell | British Pound | State Street Global Markets | 16,900 | 10–10–14 | 322 | — | ||||||||||||||
Sell | Canadian Dollar | State Street Global Markets | 6,475 | 10–10–14 | 171 | — | ||||||||||||||
Sell | Euro | State Street Global Markets | 20,950 | 10–10–14 | 1,189 | — | ||||||||||||||
Sell | Japanese Yen | State Street Global Markets | 738,900 | 10–10–14 | 372 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 2,501 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 238,393 | $ | — | $ | — | ||||||
Preferred Stocks | — | 1,746 | — | |||||||||
Short-Term Securities | — | 300 | — | |||||||||
Total | $ | 238,393 | $ | 2,046 | $ | — | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 2,501 | $ | — |
As of September 30, 2014, 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) |
| |||
Financials | 17.5% | |||
Health Care | 13.8% | |||
Energy | 12.8% | |||
Consumer Discretionary | 11.4% | |||
Industrials | 10.2% |
Consumer Staples | 8.7% | |||
Materials | 7.6% | |||
Utilities | 6.3% | |||
Telecommunication Services | 5.6% | |||
Information Technology | 2.1% | |||
Other+ | 4.0% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
44 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 66.5% | |||
Financials | 18.9% | |||
Consumer Discretionary | 12.1% | |||
Consumer Staples | 6.9% | |||
Energy | 6.6% | |||
Industrials | 4.5% | |||
Health Care | 4.3% | |||
Materials | 4.2% | |||
Utilities | 4.1% | |||
Telecommunication Services | 3.3% | |||
Information Technology | 1.6% | |||
Bonds | 29.0% | |||
Corporate Debt Securities | 22.4% | |||
Loans | 3.4% | |||
Other Government Securities | 3.1% | |||
Municipal Bonds | 0.1% | |||
Cash and Cash Equivalents | 4.5% |
Lipper Rankings
Category: Lipper Mixed-Asset Target Allocation Growth Funds | Rank | Percentile | ||
1 Year | 480/567 | 85 | ||
3 Year | 491/507 | 97 | ||
5 Year | 458/472 | 97 | ||
10 Year | 162/317 | 51 |
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 | 39.3% | |||
United Kingdom | 11.4% | |||
France | 7.5% | |||
Luxembourg | 4.2% | |||
Norway | 4.0% | |||
Other Europe | 12.2% | |||
North America | 35.5% | |||
United States | 31.0% | |||
Other North America | 4.5% | |||
Pacific Basin | 13.5% | |||
Australia | 6.1% | |||
Japan | 3.8% | |||
Other Pacific Basin | 3.6% | |||
South America | 2.7% | |||
Bahamas/Caribbean | 2.7% | |||
Other | 1.8% | |||
Cash and Cash Equivalents | 4.5% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Johnson & Johnson | United States | Health Care | Pharmaceuticals | |||
Blackstone Mortgage Trust, Inc., Class A | United States | Financials | Mortgage REITs | |||
Ares Capital Corp. | United States | Financials | Asset Management & Custody Banks | |||
Abengoa Yield plc | United States | Utilities | Renewable Electricity | |||
Philip Morris International, Inc. | United States | Consumer Staples | Tobacco | |||
Colgate-Palmolive Co. | United States | Consumer Staples | Household Products | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
Sampo plc, A Shares | Finland | Financials | Multi-Line Insurance | |||
Limited Brands, Inc. | United States | Consumer Discretionary | Apparel Retail | |||
Dow Chemical Co. (The) | United States | Materials | Diversified Chemicals |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 45 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Income Allocation Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 4.5% |
| |||||||
Amcor Ltd. | 643 | $ | 6,382 | |||||
Mirvac Group | 2,023 | 3,046 | ||||||
National Australia Bank Ltd. | 235 | 6,696 | ||||||
Pact Group Holdings Ltd. | 1,439 | 4,990 | ||||||
Spotless Group Holdings Ltd. (A) | 2,930 | 4,643 | ||||||
Telstra Corp. Ltd. ADR | 933 | 4,331 | ||||||
|
| |||||||
30,088 | ||||||||
|
| |||||||
Belgium – 1.8% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 73 | 8,093 | ||||||
bpost S.A. de droit public / bpost N.V. van publiekrecht | 182 | 4,335 | ||||||
|
| |||||||
12,428 | ||||||||
|
| |||||||
Bermuda – 0.8% |
| |||||||
Catlin Group Ltd. | 668 | 5,651 | ||||||
|
| |||||||
Canada – 2.1% |
| |||||||
Bank of Nova Scotia Berhad (The) | 87 | 5,399 | ||||||
Baytex Energy Corp. | 110 | 4,148 | ||||||
Crescent Point Energy Corp. | 133 | 4,799 | ||||||
|
| |||||||
14,346 | ||||||||
|
| |||||||
Denmark – 1.0% |
| |||||||
TDC A/S | 868 | 6,591 | ||||||
|
| |||||||
Finland – 1.3% |
| |||||||
Sampo plc, A Shares | 180 | 8,730 | ||||||
|
| |||||||
France – 6.6% |
| |||||||
Axa S.A. | 313 | 7,715 | ||||||
Bouygues S.A. | 140 | 4,538 | ||||||
Compagnie Generale des Etablissements Michelin, Class B | 60 | 5,649 | ||||||
EDF S.A. | 141 | 4,641 | ||||||
France Telecom | 337 | 5,068 | ||||||
Gaz de France | 308 | 7,738 | ||||||
Total S.A. | 142 | 9,254 | ||||||
|
| |||||||
44,603 | ||||||||
|
| |||||||
Germany – 1.2% |
| |||||||
ProSieben – Sat.1 Media AG | 195 | 7,771 | ||||||
|
| |||||||
Hong Kong – 0.6% |
| |||||||
HK Electric Investments Ltd. | 5,996 | 3,946 | ||||||
|
| |||||||
Israel – 1.8% |
| |||||||
Bezeq – Israel Telecommunication Corp. Ltd. (The) | 2,279 | 3,936 | ||||||
Teva Pharmaceutical Industries Ltd. ADR | 156 | 8,384 | ||||||
|
| |||||||
12,320 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan – 3.8% |
| |||||||
Aozora Bank Ltd. | 1,519 | $ | 5,139 | |||||
Fuji Heavy Industries Ltd. | 181 | 5,987 | ||||||
ITOCHU Corp. | 395 | 4,831 | ||||||
Japan Airlines Corp. | 164 | 4,497 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 119 | 4,855 | ||||||
|
| |||||||
25,309 | ||||||||
|
| |||||||
Luxembourg – 0.9% |
| |||||||
RTL Group S.A. | 74 | 6,361 | ||||||
|
| |||||||
Norway – 2.7% |
| |||||||
Gjensidige Forsikring ASA | 254 | 5,371 | ||||||
Marine Harvest ASA | 507 | 7,101 | ||||||
StatoilHydro ASA | 201 | 5,481 | ||||||
|
| |||||||
17,953 | ||||||||
|
| |||||||
Singapore – 0.6% |
| |||||||
Asian Pay Television Trust | 6,571 | 4,249 | ||||||
|
| |||||||
Spain – 1.8% |
| |||||||
ACS Actividades de Construccion y Servicios S.A. | 195 | 7,479 | ||||||
Banco Bilbao Vizcaya Argentaria S.A. | 370 | 4,462 | ||||||
|
| |||||||
11,941 | ||||||||
|
| |||||||
Sweden – 1.0% |
| |||||||
Nordea Bank AB | 525 | 6,832 | ||||||
|
| |||||||
Switzerland – 0.9% |
| |||||||
Nestle S.A., Registered Shares | 84 | 6,181 | ||||||
|
| |||||||
United Kingdom – 9.2% |
| |||||||
BHP Billiton plc | 139 | 3,858 | ||||||
BP plc | 1,096 | 8,053 | ||||||
British Sky Broadcasting Group plc | 443 | 6,334 | ||||||
HSBC Holdings plc | 436 | 4,426 | ||||||
Kingfisher plc | 1,176 | 6,174 | ||||||
Legal & General Group plc | 1,641 | 6,090 | ||||||
SSE plc | — | * | — | * | ||||
St. James’s Place plc | 500 | 5,918 | ||||||
Standard Life plc (A) | 800 | 5,374 | ||||||
Taylor Wimpey plc | 3,480 | 6,364 | ||||||
UBM plc | 422 | 3,989 | ||||||
WPP Group plc | 259 | 5,211 | ||||||
|
| |||||||
61,791 | ||||||||
|
| |||||||
United States – 21.2% |
| |||||||
Abengoa Yield plc (A) | 300 | 10,674 | ||||||
Blackstone Mortgage Trust, Inc., Class A | 460 | 12,460 | ||||||
Bristol-Myers Squibb Co. | 166 | 8,521 | ||||||
Colgate-Palmolive Co. | 150 | 9,783 | ||||||
ConocoPhillips | 103 | 7,911 | ||||||
Dow Chemical Co. (The) | 165 | 8,653 | ||||||
Ford Motor Co. | 436 | 6,451 | ||||||
HollyFrontier Corp. | 130 | 5,690 | ||||||
Johnson & Johnson | 118 | 12,533 | ||||||
Limited Brands, Inc. | 130 | 8,707 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States (Continued) |
| |||||||
Microchip Technology, Inc. | 102 | $ | 4,825 | |||||
Paychex, Inc. | 139 | 6,157 | ||||||
PepsiCo, Inc. | 52 | 4,814 | ||||||
Philip Morris International, Inc. | 123 | 10,239 | ||||||
Starwood Property Trust, Inc. | 360 | 7,906 | ||||||
Target Corp. | 135 | 8,462 | ||||||
Two Harbors Investment Corp. | 835 | 8,074 | ||||||
|
| |||||||
141,860 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 428,951 | |||||
(Cost: $410,489) | ||||||||
INVESTMENT FUNDS |
| |||||||
United States – 1.7% |
| |||||||
Ares Capital Corp. | 700 | 11,312 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| $ | 11,312 | |||||
(Cost: $12,336) | ||||||||
PREFERRED STOCKS |
| |||||||
Luxembourg – 0.7% |
| |||||||
ArcelorMittal, | 194 | 4,105 | ||||||
|
| |||||||
United States – 0.3% |
| |||||||
Qwest Corp., 6.125% | 100 | 2,322 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 6,427 | |||||
(Cost: $6,929) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Argentina – 0.6% |
| |||||||
Aeropuertos Argentina 2000 S.A.: | ||||||||
10.750%, 12–1–20 | $ | 1,275 | 1,341 | |||||
10.750%, 12–1–20 (B) | 850 | 895 | ||||||
Arcos Dorados Holdings, Inc., | BRL | 5,000 | 1,910 | |||||
|
| |||||||
4,146 | ||||||||
|
| |||||||
Australia – 1.0% |
| |||||||
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC, | $ | 1,000 | 1,040 | |||||
FMG Resources Pty Ltd.: | ||||||||
8.250%, 11–1–19 (B) | 2,000 | 2,068 | ||||||
6.875%, 4–1–22 (B) | 3,750 | 3,815 | ||||||
|
| |||||||
6,923 | ||||||||
|
|
46 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Income Allocation Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Austria – 0.8% |
| |||||||
JBS Investments GmbH (GTD by Hungary Holdings Kft), | $ | 3,000 | $ | 3,059 | ||||
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.), | 1,000 | 1,063 | ||||||
OAS Investments GmbH, | 1,500 | 1,472 | ||||||
|
| |||||||
5,594 | ||||||||
|
| |||||||
Brazil – 1.1% |
| |||||||
AmBev International Finance Co. Ltd., | BRL | 7,500 | 2,980 | |||||
Cosan Overseas Ltd., | $ | 500 | 515 | |||||
QGOG Constellation S.A., | 1,500 | 1,500 | ||||||
Tonon Bioenergia S.A., | 3,000 | 2,566 | ||||||
|
| |||||||
7,561 | ||||||||
|
| |||||||
British Virgin Islands – 0.4% |
| |||||||
OAS Finance Ltd.: | ||||||||
8.000%, 7–2–21 (B) | 1,500 | 1,440 | ||||||
8.875%, 4–29–49 (D) | 1,000 | 930 | ||||||
|
| |||||||
2,370 | ||||||||
|
| |||||||
Cayman Islands – 1.5% |
| |||||||
Braskem Finance Ltd. (GTD by Braskem S.A.), | 2,000 | 2,046 | ||||||
Marfrig Overseas Ltd., | 3,000 | 3,165 | ||||||
Odebrecht Finance Ltd., | 500 | 505 | ||||||
Odebrecht Offshore Drilling Finance, | 3,958 | 4,106 | ||||||
|
| |||||||
9,822 | ||||||||
|
| |||||||
Columbia – 0.3% |
| |||||||
Empresas Publicas de Medellin E.S.P., | COP | 3,888,000 | 2,022 | |||||
|
| |||||||
France – 0.9% |
| |||||||
Societe Generale S.A.: | ||||||||
8.250%, 11–29–49 | $ | 1,000 | 1,028 | |||||
6.000%, 12–31–49 (B) | 2,000 | 1,832 | ||||||
7.875%, 12–31–49 (B) | 3,000 | 3,000 | ||||||
|
| |||||||
5,860 | ||||||||
|
| |||||||
Germany – 0.0% |
| |||||||
Rearden G Holdings EINS GmbH, | 200 | 209 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Hong Kong – 0.5% |
| |||||||
China Resources Power Holdings Co. Ltd., | $ | 2,000 | $ | 2,085 | ||||
Noble Group Ltd., | 1,250 | 1,394 | ||||||
|
| |||||||
3,479 | ||||||||
|
| |||||||
Indonesia – 0.6% |
| |||||||
PT Adaro Indonesia, | 2,000 | 2,082 | ||||||
Theta Capital Ptd. Ltd., | 1,550 | 1,630 | ||||||
|
| |||||||
3,712 | ||||||||
|
| |||||||
Ireland – 0.1% |
| |||||||
Novatek Finance Ltd., | RUB | 25,000 | 595 | |||||
|
| |||||||
Luxembourg – 2.1% |
| |||||||
Aguila 3 S.A., | $ | 1,500 | 1,525 | |||||
Altice S.A., | 748 | 772 | ||||||
BC Luxco 1 S.A., | 6,000 | 6,154 | ||||||
Evraz Group S.A.: | ||||||||
7.400%, 4–24–17 | 1,000 | 1,000 | ||||||
9.500%, 4–24–18 (B) | 850 | 886 | ||||||
Offshore Drilling Holding S.A., | 1,500 | 1,588 | ||||||
Tonon Luxembourg S.A., | 2,000 | 1,930 | ||||||
|
| |||||||
13,855 | ||||||||
|
| |||||||
Mexico – 1.5% |
| |||||||
America Movil S.A.B. de C.V., | MXN | 22,000 | 1,585 | |||||
BBVA Bancomer S.A., | $ | 1,750 | 1,960 | |||||
C5 Capital (SPV) Ltd., | 2,000 | 1,720 | ||||||
CEMEX S.A.B. de C.V., | 1,500 | 1,670 | ||||||
Empresas ICA S.A.B. de C.V., | 3,000 | 3,083 | ||||||
|
| |||||||
10,018 | ||||||||
|
| |||||||
Netherlands – 1.4% |
| |||||||
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.), | 2,000 | 1,935 | ||||||
Listrindo Capital B.V., | 750 | 793 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Netherlands (Continued) |
| |||||||
Listrindo Capital B.V. (GTD by PT Cikarang Listrindo), | $ | 1,000 | $ | 1,058 | ||||
Marfrig Holdings (Europe) B.V., | 2,000 | 2,050 | ||||||
VimpleCom Holdings B.V., | RUB | 50,000 | 1,188 | |||||
VTR Finance B.V., | $ | 2,400 | 2,484 | |||||
|
| |||||||
9,508 | ||||||||
|
| |||||||
Norway – 1.3% |
| |||||||
Corporacion Pesquera Inca S.A.C., | 3,650 | 3,577 | ||||||
World Wide Supply A.S., | 5,000 | 5,000 | ||||||
|
| |||||||
8,577 | ||||||||
|
| |||||||
Russia – 0.1% |
| |||||||
SCF Capital Ltd., | 750 | 713 | ||||||
|
| |||||||
Singapore – 1.0% |
| |||||||
Berau Capital Resources Pte Ltd., | 2,000 | 1,550 | ||||||
Olam International Ltd., | SGD | 250 | 206 | |||||
Oro Negro Drilling Pte. Ltd., | $ | 5,000 | 4,988 | |||||
|
| |||||||
6,744 | ||||||||
|
| |||||||
Turkey – 0.2% |
| |||||||
Türkiye Is Bankasi A.S., | 1,500 | 1,460 | ||||||
|
| |||||||
United Kingdom – 2.2% |
| |||||||
Barclays plc, | 7,000 | 7,183 | ||||||
Lloyds Banking Group plc, | 2,000 | 2,060 | ||||||
Royal Bank of Scotland Group plc (The), | 5,000 | 5,288 | ||||||
|
| |||||||
14,531 | ||||||||
|
| |||||||
United States – 4.8% |
| |||||||
Bank of America Corp.: | ||||||||
6.250%, 9–29–49 | 3,000 | 2,981 | ||||||
8.000%, 12–29–49 | 3,000 | 3,234 | ||||||
B-Corp Merger Sub, Inc., | 6,000 | 5,909 | ||||||
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC, | 1,856 | 1,898 | ||||||
HD Supply, Inc., | 5,000 | 5,763 |
2014 | SEMIANNUAL REPORT | 47 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Income Allocation Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
United States (Continued) |
| |||||||
JPMorgan Chase & Co., | $ | 5,000 | $ | 4,948 | ||||
Roofing Supply Group LLC and Roofing Supply Finance, Inc., | 3,000 | 3,150 | ||||||
Signode Industrial Group, | 2,422 | 2,325 | ||||||
TRAC Intermodal LLC and TRAC Intermodal Corp., | 500 | 553 | ||||||
TransDigm Group, Inc., | 2,270 | 2,423 | ||||||
|
| |||||||
33,184 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 22.4% |
| $ | 150,883 | |||||
(Cost: $154,551) | ||||||||
MUNICIPAL BONDS |
| |||||||
United States – 0.1% |
| |||||||
Cmnwlth of PR, GO Bonds of 2014, Ser A, | ||||||||
8.000%, 7–1–35 | 1,090 | 961 | ||||||
|
| |||||||
TOTAL MUNICIPAL |
| $ | 961 | |||||
(Cost: $1,014) | ||||||||
OTHER GOVERNMENT |
| |||||||
Argentina – 0.7% |
| |||||||
City of Buenos Aires, | 3,000 | 3,000 | ||||||
Province of Buenos Aires (The), | 2,000 | 1,900 | ||||||
|
| |||||||
4,900 | ||||||||
|
| |||||||
Australia – 0.6% |
| |||||||
New South Wales Treasury Corp., | AUD | 4,000 | 3,727 | |||||
|
| |||||||
Canada – 0.9% |
| |||||||
City of Toronto, | CAD | 2,000 | 1,871 | |||||
Province of Ontario, | 2,000 | 1,974 | ||||||
Regional Municipality of York, | 2,000 | 1,930 | ||||||
|
| |||||||
5,775 | ||||||||
|
| |||||||
Germany – 0.6% |
| |||||||
KfW, Frankfurt/Main, Federal Republic of Germany, | NOK | 26,000 | 4,146 | |||||
|
|
OTHER GOVERNMENT SECURITIES+ (Continued) | Principal | Value | ||||||
Ireland – 0.2% |
| |||||||
Russian Railways via RZD Capital Ltd., | RUB | 50,000 | $ | 1,151 | ||||
|
| |||||||
Malaysia – 0.1% |
| |||||||
Malaysia Government Bond, | MYR | 3,000 | 908 | |||||
|
| |||||||
TOTAL OTHER GOVERNMENT SECURITIES – 3.1% |
| $ | 20,607 | |||||
(Cost: $22,869) | ||||||||
LOANS |
| |||||||
Canada – 0.0% |
| |||||||
KIK Custom Products, Inc., | $ | 113 | 113 | |||||
|
| |||||||
Luxembourg – 0.5% |
| |||||||
Formula One Holdings Ltd. and Delta Two S.a.r.l., | 3,058 | 3,043 | ||||||
|
| |||||||
United States – 2.9% |
| |||||||
Capital Safety North America Holdings, Inc., | 2,563 | 2,505 | ||||||
Empresas ICA S.A., | 3,000 | 2,978 | ||||||
EP Minerals LLC, | 781 | 791 | ||||||
Evergreen Tank Solution, Inc., | 4,356 | 4,342 | ||||||
Focus Brands, Inc.: | ||||||||
10.250%, 8–21–18 (D) | 697 | 700 | ||||||
10.250%, 8–21–18 (D) | 303 | 305 | ||||||
Hampton Rubber Co. & SEI Holding Corp., | 5,000 | 4,925 | ||||||
Misys plc and Magic Newco LLC, | 1,000 | 1,128 | ||||||
U.S. LBM Holdings LLC: | ||||||||
7.250%, 4–25–20 (D) | 993 | 981 | ||||||
7.250%, 4–25–20 (D) | 985 | 972 | ||||||
|
| |||||||
19,627 | ||||||||
|
| |||||||
TOTAL LOANS – 3.4% |
| $ | 22,783 | |||||
(Cost: $22,800) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 2.5% |
| |||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | $ | 2,300 | $ | 2,300 | ||||
Army & Air Force Exchange Service, | 2,000 | 2,000 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG), | 3,000 | 3,000 | ||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | 3,000 | 3,000 | ||||||
Kellogg Co., | 5,000 | 4,999 | ||||||
Kroger Co. (The), | 1,578 | 1,578 | ||||||
|
| |||||||
16,877 | ||||||||
|
| |||||||
Master Note- 0.4% |
| |||||||
Toyota Motor Credit Corp., | 2,862 | 2,862 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 19,739 | |||||
(Cost: $19,739) | ||||||||
TOTAL INVESTMENT |
| $ | 661,663 | |||||
(Cost: $650,727) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.6% |
| 10,680 | ||||||
NET ASSETS – 100.0% |
| $ | 672,343 |
48 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Income Allocation Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
+ | Other Government Securities include emerging market sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
* | 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, 2014, the total value of these securities amounted to $88,334 or 13.1% of net assets. |
(C) | Principal amounts are denominated in the indicated foreign currency, where applicable (AUD—Australian Dollar, BRL—Brazilian Real, CAD—Canadian Dollar, COP—Columbian Peso, MXN—Mexican Peso, MYR—Malaysian Ringgit, NOK—Norwegian Krone, RUB—Russian Ruble and SGD—Singapore Dollar). |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(E) | Rate shown is the yield to maturity at September 30, 2014. |
(F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | British Pound | UBS AG | 14,900 | 10–10–14 | $ | 543 | $ | — | ||||||||||||
Sell | Euro | UBS AG | 27,300 | 10–10–14 | 1,570 | — | ||||||||||||||
Sell | Japanese Yen | UBS AG | 1,471,150 | 10–10–14 | 735 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 2,848 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 428,951 | $ | — | $ | — | ||||||
Investment Funds | 11,312 | — | — | |||||||||
Preferred Stocks | 2,322 | 4,105 | — | |||||||||
Corporate Debt Securities | — | 145,883 | 5,000 | |||||||||
Municipal Bonds | — | 961 | — | |||||||||
Other Government Securities | — | 20,607 | — | |||||||||
Loans | — | 12,136 | 10,647 | |||||||||
Short-Term Securities | — | 19,739 | — | |||||||||
Total | $ | 442,585 | $ | 203,431 | $ | 15,647 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 2,848 | $ | — |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
Corporate Debt Securities | Loans | |||||||
Beginning Balance 4-1-14 | $ | 4,987 | $ | 9,950 | ||||
Net realized gain (loss) | — | — | * | |||||
Net change in unrealized appreciation (depreciation) | 13 | 9 | ||||||
Purchases | — | 10,616 | ||||||
Sales | — | (5,009 | ) | |||||
Amortization/Accretion of premium/discount | — | 6 | ||||||
Transfers into Level 3 during the period | — | 966 | ||||||
Transfers out of Level 3 during the period | — | (5,891 | ) | |||||
Ending Balance 9-30-14 | $ | 5,000 | $ | 10,647 | ||||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | 13 | $ | 33 |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
2014 | SEMIANNUAL REPORT | 49 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Global Income Allocation Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Information about Level 3 fair value measurements:
Fair Value at 9–30–14 | Valuation Technique(s) | Unobservable Input(s) | ||||
Assets | ||||||
Corporate Debt Securities | $5,000 | Third-party valuation service | Broker quotes | |||
Loans | $10,647 | Third-party valuation service | Broker quotes |
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GTD = Guaranteed
REIT = Real Estate Investment Trust
Market Sector Diversification |
| |||
(as a % of net assets) |
| |||
Financials | 24.2% | |||
Consumer Discretionary | 14.8% | |||
Consumer Staples | 10.2% | |||
Energy | 9.9% | |||
Industrials | 9.6% | |||
Materials | 7.9% |
Utilities | 4.9% | |||
Health Care | 4.3% | |||
Telecommunication Services | 3.7% | |||
Other Government Securities | 3.1% | |||
Information Technology | 2.8% | |||
State General Obligation Bonds | 0.1% | |||
Other+ | 4.5% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
50 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 0.7% | |||
Financials | 0.4% | |||
Utilities | 0.3% | |||
Consumer Discretionary | 0.0% | |||
Warrants | 0.0% | |||
Bonds | 94.9% | |||
Corporate Debt Securities | 67.7% | |||
Loans | 27.2% | |||
Municipal Bonds | 0.0% | |||
Cash and Cash Equivalents | 4.4% |
Lipper Rankings
Category: Lipper High Current Yield Funds | Rank | Percentile | ||
1 Year | 198/602 | 33 | ||
3 Year | 46/474 | 10 | ||
5 Year | 24/415 | 6 | ||
10 Year | 9/278 | 4 |
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 | 1.6% | |||
A | 1.1% | |||
BBB | 0.5% | |||
Non-Investment Grade | 93.3% | |||
BB | 16.6% | |||
B | 38.7% | |||
CCC | 37.8% | |||
Non-rated | 0.2% | |||
Cash and Cash Equivalents and Equities | 5.1% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
2014 | SEMIANNUAL REPORT | 51 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Casinos & Gaming – 0.0% |
| |||||||
New Cotai Participation | — | * | $ | 574 | ||||
|
| |||||||
Housewares & Specialties – 0.0% |
| |||||||
Provo Craft & Novelty, | 3 | — | ||||||
|
| |||||||
Renewable Electricity – 0.3% |
| |||||||
Abengoa Yield plc (A) | 762 | 27,115 | ||||||
|
| |||||||
Specialized Finance – 0.4% |
| |||||||
Maritime Finance Co. | 1,750 | 36,506 | ||||||
|
| |||||||
Specialty Stores – 0.0% |
| |||||||
Michaels Co., Inc. | 156 | 2,726 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 66,921 | |||||
(Cost: $60,402) | ||||||||
WARRANTS | ||||||||
Agricultural Products – 0.0% |
| |||||||
ASG Consolidated LLC, | 13 | 1,354 | ||||||
|
| |||||||
Apparel Retail – 0.0% |
| |||||||
St. John Knits | 48 | 595 | ||||||
|
| |||||||
TOTAL WARRANTS – 0.0% |
| $ | 1,949 | |||||
(Cost: $798) | ||||||||
CORPORATE DEBT SECURITIES | Principal | |||||||
Advertising – 0.6% |
| |||||||
Acosta, Inc., | $ | 46,896 | 47,131 | |||||
Lamar Media Corp., | 9,695 | 9,719 | ||||||
|
| |||||||
56,850 | ||||||||
|
| |||||||
Aerospace & Defense – 2.1% |
| |||||||
Silver II Borrower SCA and Silver II U.S. Holdings, 7.750%, 12–15–20 (E) | 73,764 | 76,529 | ||||||
TransDigm Group, Inc.: | ||||||||
5.500%, 10–15–20 | 8,899 | 8,632 | ||||||
7.500%, 7–15–21 | 22,192 | 23,690 | ||||||
TransDigm, Inc.: | ||||||||
6.000%, 7–15–22 (E) | 52,803 | 52,143 | ||||||
6.500%, 7–15–24 (E) | 56,813 | 56,600 | ||||||
|
| |||||||
217,594 | ||||||||
|
| |||||||
Agricultural Products – 0.3% |
| |||||||
American Seafoods Group LLC, | 4,968 | 4,831 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Agricultural Products (Continued) |
| |||||||
ASG Consolidated LLC, | $ | 30,850 | $ | 27,149 | ||||
|
| |||||||
31,980 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.3% |
| |||||||
TRAC Intermodal LLC | 22,190 | 24,520 | ||||||
|
| |||||||
Aluminum – 1.2% |
| |||||||
Constellium N.V., | 34,187 | 34,187 | ||||||
Wise Metals Group | 29,956 | 31,978 | ||||||
Wise Metals | 44,476 | 47,145 | ||||||
|
| |||||||
113,310 | ||||||||
|
| |||||||
Apparel Retail – 2.0% |
| |||||||
Bon–Ton Stores, Inc. (The), | 34,038 | 30,464 | ||||||
Chinos Intermediate | 41,521 | 39,341 | ||||||
Gymboree Corp. (The), | 39,725 | 11,123 | ||||||
Hot Topic, Inc., | 6,706 | 7,175 | ||||||
HT Intermediate Holdings Corp., | 5,848 | 6,038 | ||||||
Neiman Marcus Group Ltd., Inc., | 45,692 | 47,520 | ||||||
Nine West Holdings, Inc., | 64,214 | 53,940 | ||||||
|
| |||||||
195,601 | ||||||||
|
| |||||||
Application Software – 0.8% |
| |||||||
ACI Worldwide, Inc., | 7,717 | 8,006 | ||||||
Epicor Software Corp., | 23,240 | 24,576 | ||||||
Infor Software Parent LLC and Infor Software Parent, Inc., | 43,355 | 42,922 | ||||||
|
| |||||||
75,504 | ||||||||
|
| |||||||
Auto Parts & Equipment – 1.6% |
| |||||||
IDQ Acquisition Corp., 14.000%, 10–1–17 (E)(F) | 29,483 | 29,483 | ||||||
IDQ Holdings, Inc., | 42,903 | 46,495 | ||||||
Midas Intermediate | 26,570 | 26,504 |
CORPORATE DEBT SECURITIES Continued) | Principal | Value | ||||||
Auto Parts & Equipment (Continued) |
| |||||||
Schaeffler Finance B.V.: |
| |||||||
4.250%, 5–15–21 (E) | $ | 28,918 | $ | 27,834 | ||||
4.750%, 5–15–21 (E) | 6,382 | 6,366 | ||||||
Schaeffler Holding | EUR | 12,225 | 16,182 | |||||
|
| |||||||
152,864 | ||||||||
|
| |||||||
Automobile Manufacturers – 0.4% |
| |||||||
Group 1 Automotive, Inc., | $ | 16,451 | 15,916 | |||||
Navistar International Corp., | 22,520 | 23,083 | ||||||
|
| |||||||
38,999 | ||||||||
|
| |||||||
Automotive Retail – 0.4% |
| |||||||
Sonic Automotive, Inc., | 45,581 | 43,530 | ||||||
|
| |||||||
Broadcasting – 2.1% |
| |||||||
CBS Outdoor Americas, Inc.: |
| |||||||
5.250%, 2–15–22 (E) | 3,959 | 3,954 | ||||||
5.625%, 2–15–24 (E) | 7,522 | 7,541 | ||||||
Clear Channel Outdoor |
| |||||||
6.500%, 11–15–22 | 60,658 | 61,847 | ||||||
Clear Channel | 3,032 | 3,123 | ||||||
Clear Channel | 10,252 | 10,636 | ||||||
Cumulus Media, Inc., | 41,969 | 43,018 | ||||||
Spanish Broadcasting | 5,090 | 5,472 | ||||||
WideOpenWest Finance |
| |||||||
10.250%, 7–15–19 | 39,044 | 42,168 | ||||||
13.375%, 10–15–19 | 24,730 | 27,945 | ||||||
|
| |||||||
205,704 | ||||||||
|
| |||||||
Building Products – 1.4% |
| |||||||
CPG Merger Sub LLC, | 24,560 | 24,928 | ||||||
Headwaters, Inc., | 13,791 | 14,274 | ||||||
Ply Gem Industries, Inc.: |
| |||||||
6.500%, 2–1–22 | 40,224 | 38,212 | ||||||
6.500%, 2–1–22 (E) | 16,165 | 15,357 | ||||||
Roofing Supply Group | 32,311 | 33,927 |
52 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Building Products (Continued) |
| |||||||
USG Corp., | $ | 8,134 | $ | 8,297 | ||||
|
| |||||||
134,995 | ||||||||
|
| |||||||
Cable & Satellite – 4.0% |
| |||||||
Altice S.A.: | ||||||||
7.250%, 5–15–22 (E)(G) | EUR | 3,821 | 4,995 | |||||
7.750%, 5–15–22 (E) | $ | 35,763 | 36,926 | |||||
Cablevision Systems | 37,003 | 35,800 | ||||||
CCO Holdings LLC and CCO Holdings Capital Corp.: | ||||||||
5.250%, 3–15–21 | 2,542 | 2,491 | ||||||
5.250%, 9–30–22 | 4,053 | 3,967 | ||||||
5.125%, 2–15–23 | 6,054 | 5,812 | ||||||
5.750%, 9–1–23 | 1,513 | 1,505 | ||||||
5.750%, 1–15–24 | 28,521 | 28,414 | ||||||
DISH DBS Corp.: | ||||||||
6.750%, 6–1–21 | 19,335 | 20,785 | ||||||
5.875%, 7–15–22 | 10,630 | 10,843 | ||||||
5.000%, 3–15–23 | 5,265 | 5,051 | ||||||
Numericable Group | 20,575 | 20,729 | ||||||
Sirius XM Radio, Inc.: | ||||||||
5.875%, 10–1–20 (E) | 12,183 | 12,335 | ||||||
5.750%, 8–1–21 (E) | 16,354 | 16,436 | ||||||
4.625%, 5–15–23 (E) | 72,613 | 67,531 | ||||||
6.000%, 7–15–24 (E) | 4,000 | 4,060 | ||||||
VTR Finance B.V., | 80,401 | 83,216 | ||||||
Wave Holdco LLC and | 7,579 | 7,768 | ||||||
WaveDivision Escrow | 11,032 | 11,928 | ||||||
|
| |||||||
380,592 | ||||||||
|
| |||||||
Casinos & Gaming – 0.9% |
| |||||||
Gateway Casinos & | CAD | 15,447 | 14,094 | |||||
MCE Finance Ltd., | $ | 45,217 | 43,408 | |||||
Wynn Macau Ltd., | 29,504 | 28,471 | ||||||
|
| |||||||
85,973 | ||||||||
|
| |||||||
Coal & Consumable Fuels – 0.6% |
| |||||||
Foresight Energy LLC | 39,235 | 41,295 | ||||||
Westmoreland Escrow | 20,701 | 21,736 | ||||||
|
| |||||||
63,031 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Communications Equipment – 0.7% |
| |||||||
Eagle Midco, Inc., | $ | 67,990 | $ | 69,435 | ||||
|
| |||||||
Construction Materials – 0.5% |
| |||||||
Hillman Group, Inc. | 53,058 | 51,334 | ||||||
|
| |||||||
Consumer Finance – 1.1% |
| |||||||
Creditcorp, | 40,520 | 42,546 | ||||||
Speedy Cash Intermediate Holdings Corp., | 48,030 | 48,510 | ||||||
Speedy Group Holdings Corp., | 14,715 | 14,715 | ||||||
|
| |||||||
105,771 | ||||||||
|
| |||||||
Data Processing & Outsourced Services –1.5% |
| |||||||
Alliance Data Systems Corp.: | ||||||||
5.250%, 12–1–17 (E) | 36,651 | 37,108 | ||||||
6.375%, 4–1–20 (E) | 34,888 | 35,935 | ||||||
5.375%, 8–1–22 (E) | 42,381 | 41,109 | ||||||
CoreLogic, Inc., | 32,112 | 33,718 | ||||||
|
| |||||||
147,870 | ||||||||
|
| |||||||
Distributors – 1.0% |
| |||||||
Pinnacle Operating | 91,321 | 97,485 | ||||||
|
| |||||||
Diversified Banks – 0.1% |
| |||||||
Bank of America Corp., | 4,463 | 4,812 | ||||||
Barclays plc, | 7,214 | 7,403 | ||||||
|
| |||||||
12,215 | ||||||||
|
| |||||||
Diversified Capital Markets – 1.8% |
| |||||||
JLL /Delta Dutch | 15,644 | 15,800 | ||||||
Mobile Challenger Intermediate Group S.A.: | ||||||||
8.750%, 3–15–19 (E)(F)(G) | EUR | 67,200 | 78,295 | |||||
Patriot Merger Corp., | $ | 78,480 | 83,778 | |||||
|
| |||||||
177,873 | ||||||||
|
| |||||||
Diversified Metals & Mining – 1.9% |
| |||||||
American Gilsonite | 20,241 | 21,860 | ||||||
Artsonig Pty Ltd., | 28,153 | 28,435 | ||||||
Compass Minerals | 32,155 | 30,708 | ||||||
Crystal Merger Sub, Inc., | 7,359 | 7,690 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Metals & Mining (Continued) |
| |||||||
FMG Resources Pty Ltd.: | ||||||||
8.250%, 11–1–19 (E) | $ | 23,127 | $ | 23,908 | ||||
6.875%, 4–1–22 (E) | 69,798 | 71,018 | ||||||
|
| |||||||
183,619 | ||||||||
|
| |||||||
Diversified Support Services – 0.7% |
| |||||||
Algeco Scotsman Global Finance plc: | ||||||||
8.500%, 10–15–18 (E) | 16,656 | 17,072 | ||||||
10.750%, 10–15–19 (E) | 25,060 | 24,058 | ||||||
Nexeo Solutions LLC, | 26,219 | 25,957 | ||||||
|
| |||||||
67,087 | ||||||||
|
| |||||||
Education Services – 2.0% |
| |||||||
Laureate Education, Inc., | 195,206 | 196,182 | ||||||
|
| |||||||
Electric Utilities – 0.2% |
| |||||||
Alliant Holdings, | 19,189 | 19,861 | ||||||
|
| |||||||
Electrical Components & Equipment –0.1% |
| |||||||
WESCO Distribution, Inc., | 6,973 | 6,921 | ||||||
|
| |||||||
Electronic Manufacturing Services – 0.2% |
| |||||||
KEMET Corp., | 19,418 | 20,365 | ||||||
|
| |||||||
Food Distributors – 0.9% |
| |||||||
Diamond Foods, Inc., | 16,963 | 16,963 | ||||||
Simmons Foods, Inc., | 62,543 | 61,917 | ||||||
Sun Merger Sub, Inc., | 9,564 | 9,684 | ||||||
|
| |||||||
88,564 | ||||||||
|
| |||||||
Health Care Equipment – 0.2% |
| |||||||
Mallinckrodt International | 15,591 | 15,747 | ||||||
|
| |||||||
Health Care Facilities – 2.6% |
| |||||||
AmSurg Corp., | 6,498 | 6,563 | ||||||
AmSurg Escrow Corp., | 7,939 | 7,860 | ||||||
Capsugel S.A., | 22,583 | 22,527 | ||||||
Catamaran Corp., | 14,168 | 13,628 | ||||||
ConvaTec Finance | 27,648 | 28,132 | ||||||
DaVita HealthCare | 2,735 | 2,687 | ||||||
FWCT-2 Escrow Corp., | 16,234 | 16,924 |
2014 | SEMIANNUAL REPORT | 53 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Health Care Facilities (Continued) |
| |||||||
HCA, Inc. (GTD by | $ | 8,930 | $ | 8,785 | ||||
MPH Acquisition | 35,127 | 35,477 | ||||||
Physio-Control | 15,036 | 16,089 | ||||||
Tenet Healthcare Corp.: |
| |||||||
5.000%, 3–1–19 (E) | 3,788 | 3,741 | ||||||
6.000%, 10–1–20 | 15,664 | 16,565 | ||||||
8.125%, 4–1–22 | 74,864 | 82,162 | ||||||
6.875%, 11–15–31 | 6,823 | 6,584 | ||||||
|
| |||||||
267,724 | ||||||||
|
| |||||||
Health Care Services – 1.0% |
| |||||||
MedImpact Holdings, Inc., | 66,111 | 70,730 | ||||||
Truven Health Analytics, | 23,101 | 24,372 | ||||||
|
| |||||||
95,102 | ||||||||
|
| |||||||
Health Care Supplies – 0.6% |
| |||||||
Ortho-Clinical Diagnostics, | 60,178 | 54,837 | ||||||
|
| |||||||
Home Furnishings – 0.0% |
| |||||||
Empire Today LLC and | 4,796 | 4,796 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.1% |
| |||||||
Ryman Hospitality | 12,521 | 12,208 | ||||||
|
| |||||||
Integrated Telecommunication |
| |||||||
BCP (Singapore) VI | 9,502 | 9,740 | ||||||
CenturyLink, Inc., | 17,159 | 17,700 | ||||||
Frontier Communications Corp.: |
| |||||||
6.250%, 9–15–21 | 15,908 | 15,799 | ||||||
7.125%, 1–15–23 | 13,443 | 13,712 | ||||||
6.875%, 1–15–25 | 9,727 | 9,605 | ||||||
Level 3 Escrow II, Inc., | 30,910 | 30,445 | ||||||
Windstream Corp., | 7,393 | 7,781 | ||||||
|
| |||||||
104,782 | ||||||||
|
| |||||||
Internet Software & Services – 0.7% |
| |||||||
IAC/InterActiveCorp.: | ||||||||
4.875%, 11–30–18 | 20,000 | 20,200 | ||||||
4.750%, 12–15–22 | 2,342 | 2,248 | ||||||
J2 Global, Inc., | 40,682 | 43,937 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Internet Software & Services (Continued) |
| |||||||
VeriSign, Inc., | $ | 1,830 | $ | 1,766 | ||||
|
| |||||||
68,151 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 0.3% |
| |||||||
GFI Group, Inc., | 22,863 | 27,093 | ||||||
|
| |||||||
IT Consulting & Other Services – 0.6% |
| |||||||
iGATE Corp., | 11,185 | 10,849 | ||||||
NCR Escrow Corp.: | ||||||||
5.875%, 12–15–21 | 24,601 | 25,155 | ||||||
6.375%, 12–15–23 | 25,049 | 26,239 | ||||||
|
| |||||||
62,243 | ||||||||
|
| |||||||
Leisure Facilities – 0.5% |
| |||||||
Palace Entertainment | 20,302 | 21,012 | ||||||
Regal Entertainment Group: |
| |||||||
5.750%, 3–15–22 | 9,445 | 9,469 | ||||||
5.750%, 2–1–25 | 21,184 | 20,919 | ||||||
|
| |||||||
51,400 | ||||||||
|
| |||||||
Metal & Glass Containers – 1.7% |
| |||||||
Ardagh Finance Holdings, | 19,502 | 19,600 | ||||||
Ardagh Packaging Finance | 11,126 | 10,681 | ||||||
BlueScope Steel (Finance) | 30,837 | 32,070 | ||||||
Consolidated Container Co. LLC and Consolidated Container Capital, Inc., | 54,396 | 51,132 | ||||||
Signode Industrial Group, | 49,375 | 47,400 | ||||||
|
| |||||||
160,883 | ||||||||
|
| |||||||
Movies & Entertainment – 0.8% |
| |||||||
AMC Entertainment, Inc., | 11,732 | 11,820 | ||||||
Cinemark USA, Inc.: | ||||||||
5.125%, 12–15–22 | 9,662 | 9,493 | ||||||
4.875%, 6–1–23 | 40,137 | 38,230 | ||||||
WMG Acquisition Corp.: | ||||||||
5.625%, 4–15–22 (E) | 3,800 | 3,800 | ||||||
6.750%, 4–15–22 (E) | 16,550 | 15,847 | ||||||
|
| |||||||
79,190 | ||||||||
|
| |||||||
Oil & Gas Drilling – 0.3% |
| |||||||
KCA DEUTAG UK Finance plc, | 25,636 | 24,354 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Equipment & Services – 0.6% |
| |||||||
Brand Energy & Infrastructure Services, | $ | 45,171 | $ | 45,397 | ||||
RSP Permian, Inc., | 3,865 | 3,889 | ||||||
Seventy Seven Energy, Inc., | 9,093 | 8,934 | ||||||
|
| |||||||
58,220 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.6% |
| |||||||
Athlon Holdings L.P. and Athlon Finance Corp., | 12,266 | 13,155 | ||||||
Chesapeake Energy Corp.: |
| |||||||
3.484%, 4–15–19 (H) | 16,880 | 16,880 | ||||||
4.875%, 4–15–22 | 18,646 | 18,739 | ||||||
Sabine Pass Liquefaction LLC: | ||||||||
5.625%, 2–1–21 | 10,639 | 10,932 | ||||||
5.625%, 4–15–23 | 3,302 | 3,335 | ||||||
|
| |||||||
63,041 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 1.6% |
| |||||||
Offshore Drilling Holding S.A., | 56,726 | 60,058 | ||||||
Offshore Group Investment Ltd.: | ||||||||
7.500%, 11–1–19 | 33,650 | 31,210 | ||||||
7.125%, 4–1–23 | 18,084 | 15,937 | ||||||
Samson Investment Co., | 22,564 | 20,477 | ||||||
Shelf Drilling Holdings Ltd., | 29,493 | 30,968 | ||||||
|
| |||||||
158,650 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 0.4% |
| |||||||
Energy XXI Gulf Coast, Inc.: | ||||||||
7.750%, 6–15–19 | 4,994 | 4,969 | ||||||
6.875%, 3–15–24 (E) | 16,669 | 15,669 | ||||||
Williams Co., Inc. (The), | 14,223 | 14,074 | ||||||
|
| |||||||
34,712 | ||||||||
|
| |||||||
Other Diversified Financial Services – 4.3% |
| |||||||
AA PIK Co. Ltd., | GBP | 45,000 | 75,359 | |||||
AAF Holdings LLC and AAF Finance Co., | 22,740 | 22,740 | ||||||
Abengoa Finance SAU, | 62,100 | 66,758 | ||||||
Greektown Holdings LLC and Greektown Mothership Corp., | 44,977 | 44,752 | ||||||
Icahn Enterprises L.P. and Icahn Enterprises Finance Corp.: | ||||||||
6.000%, 8–1–20 | 29,745 | 30,563 | ||||||
5.875%, 2–1–22 | 17,365 | 17,322 |
54 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Other Diversified Financial Services (Continued) |
| |||||||
New Cotai LLC and New Cotai Capital Corp., | $ | 68,460 | $ | 78,386 | ||||
TransUnion Holding Co., Inc., | 13,301 | 13,767 | ||||||
TransUnion LLC and | 53,495 | 55,100 | ||||||
|
| |||||||
404,747 | ||||||||
|
| |||||||
Packaged Foods & Meats – 1.0% |
| |||||||
Bumble Bee Foods LLC, | 33,038 | 34,277 | ||||||
JBS USA LLC and JBS USA Finance, Inc., | 56,616 | 54,492 | ||||||
|
| |||||||
88,769 | ||||||||
|
| |||||||
Paper Packaging – 0.6% |
| |||||||
Beverage Packaging Holdings II Issuer, Inc. and Beverage Packaging Holdings (Luxembourg) II S.A., | 34,988 | 34,463 | ||||||
Exopack Holdings S.A., | 9,310 | 9,729 | ||||||
Reynolds Group Holdings Ltd., | 15,117 | 15,741 | ||||||
|
| |||||||
59,933 | ||||||||
|
| |||||||
Personal Products – 0.0% |
| |||||||
Elizabeth Arden, Inc., | 5,014 | 4,450 | ||||||
|
| |||||||
Pharmaceuticals – 0.4% |
| |||||||
Grifols Worldwide Operations Ltd., | 2,865 | 2,829 | ||||||
Salix Pharmaceuticals Ltd., | 31,597 | 34,204 | ||||||
|
| |||||||
37,033 | ||||||||
|
| |||||||
Precious Metals & Minerals – 0.3% |
| |||||||
Prince Mineral Holding Corp., | 28,421 | 31,832 | ||||||
|
| |||||||
Property & Casualty Insurance – 1.1% |
| |||||||
Onex USI Acquisition Corp., | 108,127 | 107,586 | ||||||
|
| |||||||
Publishing – 0.0% |
| |||||||
Gannett Co., Inc., | 1,370 | 1,349 | ||||||
|
| |||||||
Railroads – 0.5% |
| |||||||
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC: | ||||||||
6.750%, 5–1–19 (E) | 36,639 | 37,464 | ||||||
9.750%, 5–1–20 (E) | 15,221 | 15,449 | ||||||
|
| |||||||
52,913 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Real Estate Development – 0.2% |
| |||||||
Hub Holdings LLC and Hub Holdings Finance, Inc., | $ | 22,726 | $ | 422,215 | ||||
|
| |||||||
Real Estate Services – 0.3% |
| |||||||
Stearns Holdings, Inc., | 28,640 | 29,356 | ||||||
|
| |||||||
Semiconductors – 0.5% |
| |||||||
Canadian Solar, Inc., Convertible, | 1,572 | 1,751 | ||||||
Micron Technology, Inc.: |
| |||||||
5.875%, 2–15–22 (E) | 31,290 | 32,542 | ||||||
5.500%, 2–1–25 (E) | 14,943 | 14,644 | ||||||
|
| |||||||
48,937 | ||||||||
|
| |||||||
Specialized Consumer Services – 3.4% |
| |||||||
AA Bond Co. Ltd., | GBP | 32,269 | 57,413 | |||||
B-Corp Merger Sub, Inc., | $ | 96,366 | 94,921 | |||||
Carlson Travel Holdings, | 18,974 | 19,164 | ||||||
Carlson Wagonlit B.V.: |
| |||||||
6.875%, 6–15–19 (E) | 25,712 | 26,933 | ||||||
7.500%, 6–15–19 (E)(G) | EUR | 12,963 | 17,437 | |||||
Emdeon, Inc., | $ | 13,500 | 15,019 | |||||
Lansing Trade Group, | 24,449 | 24,266 | ||||||
Nielsen Finance, | 25,651 | 25,779 | ||||||
Nielsen Finance LLC and Nielsen Finance Co., | 38,539 | 37,961 | ||||||
|
| |||||||
318,893 | ||||||||
|
| |||||||
Specialized Finance – 1.5% |
| |||||||
Consolidated | 9,090 | 10,454 | ||||||
Consolidated | 18,398 | 18,306 | ||||||
Flexi-Van Leasing, Inc., | 25,687 | 26,779 | ||||||
TMX Finance LLC and | 95,550 | 95,071 | ||||||
|
| |||||||
150,610 | ||||||||
|
| |||||||
Specialized REITs – 0.7% |
| |||||||
Aircastle Ltd., | 21,597 | 21,327 | ||||||
CNL Lifestyles Properties, Inc., | 46,623 | 47,905 | ||||||
|
| |||||||
69,232 | ||||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Specialty Stores – 2.2% |
| |||||||
Academy Ltd. and Academy Finance Corp., | $ | 8,162 | $ | 8,631 | ||||
Jo-Ann Stores Holdings, Inc., | 101,532 | 94,424 | ||||||
Jo-Ann Stores, Inc., | 14,833 | 14,091 | ||||||
Michaels Stores, Inc., | 12,064 | 12,004 | ||||||
New Academy Finance Co. LLC, | 36,175 | 36,085 | ||||||
PC Nextco Holdings LLC and PC Nextco Finance, Inc., | 18,924 | 19,019 | ||||||
Spencer Spirit Holdings, Inc., | 24,057 | 24,298 | ||||||
|
| |||||||
208,552 | ||||||||
|
| |||||||
Technology Distributors – 0.8% |
| |||||||
Sophia L.P. and Sophia Finance, Inc.: | ||||||||
9.625%, 12–1–18 (E)(F) | 41,417 | 41,831 | ||||||
9.750%, 1–15–19 (E) | 29,877 | 32,118 | ||||||
|
| |||||||
73,949 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance – 0.4% |
| |||||||
Provident Funding Associates L.P. and PFG Finance Corp., | 35,860 | 35,501 | ||||||
|
| |||||||
Tobacco – 0.3% |
| |||||||
Prestige Brands, Inc., | 35,691 | 33,550 | ||||||
|
| |||||||
Trading Companies & Distributors – 0.8% |
| |||||||
HD Supply, Inc.: | ||||||||
7.500%, 7–15–20 | 4,663 | 4,838 | ||||||
11.500%, 7–15–20 | 60,370 | 69,576 | ||||||
|
| |||||||
74,414 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 3.3% |
| |||||||
Crown Castle International Corp., | 1,149 | 1,117 | ||||||
Digicel Group Ltd., | 35,962 | 37,044 | ||||||
DigitalGlobe, Inc., | 29,144 | 27,978 | ||||||
Sprint Corp.: | ||||||||
7.250%, 9–15–21 (E) | 69,534 | 72,403 | ||||||
7.875%, 9–15–23 (E) | 62,786 | 66,711 | ||||||
Telecom Italia S.p.A., | 18,821 | 18,445 | ||||||
T-Mobile USA, Inc.: | ||||||||
6.464%, 4–28–19 | 13,198 | 13,709 | ||||||
6.542%, 4–28–20 | 14,724 | 15,092 | ||||||
6.633%, 4–28–21 | 24,320 | 24,928 | ||||||
6.125%, 1–15–22 | 7,464 | 7,501 | ||||||
6.731%, 4–28–22 | 9,891 | 10,114 | ||||||
6.000%, 3–1–23 | 13,541 | 13,541 |
2014 | SEMIANNUAL REPORT | 55 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Wireless Telecommunication Service (Continued) |
| |||||||
T-Mobile USA, Inc.: (Continued) |
| |||||||
6.836%, 4–28–23 | $ | 2,945 | $ | 3,026 | ||||
6.500%, 1–15–24 | 1,411 | 1,429 | ||||||
6.375%, 3–1–25 | 11,045 | 11,017 | ||||||
|
| |||||||
324,055 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 67.7% |
| $ | 6,586,638 | |||||
(Cost: $6,550,455) | ||||||||
MUNICIPAL BONDS | ||||||||
New York – 0.0% |
| |||||||
NYC Indl Dev Agy, Rental | 1,875 | 2,630 | ||||||
|
| |||||||
TOTAL MUNICIPAL |
| $ | 2,630 | |||||
(Cost: $1,875) | ||||||||
LOANS | ||||||||
Advertising – 0.1% |
| |||||||
Advantage Sales & Marketing, Inc., | 10,595 | 10,425 | ||||||
|
| |||||||
Air Freight & Logistics – 0.2% |
| |||||||
DAE Aviation Holdings, Inc., | 15,706 | 15,804 | ||||||
|
| |||||||
Apparel Retail –2.1% |
| |||||||
Gymboree Corp. (The), | 7,880 | 5,215 | ||||||
Hoffmaster Group, Inc., | 30,368 | 30,064 | ||||||
Lands’ End, Inc., | 15,956 | 15,737 | ||||||
Nine West Holdings, Inc., | 47,279 | 43,852 | ||||||
Talbots, Inc. (The): | ||||||||
4.750%, 3–17–20 (H) | 19,603 | 18,966 | ||||||
8.250%, 3–17–21 (H) | 23,642 | 23,346 | ||||||
True Religion Apparel, Inc.: |
| |||||||
5.875%, 7–29–19 (H) | 37,274 | 34,199 | ||||||
5.875%, 7–30–19 (H) | 39,865 | 36,576 | ||||||
11.000%, 1–30–20 (H) | 6,138 | 5,770 | ||||||
|
| |||||||
213,725 | ||||||||
|
| |||||||
Application Software – 3.1% |
| |||||||
Applied Systems, Inc., | 34,872 | 34,724 | ||||||
Aptean Holdings, Inc.: | ||||||||
5.250%, 2–6–20 (H) | 23,500 | 23,314 | ||||||
8.500%, 2–21–21 (H) | 15,746 | 15,623 | ||||||
Misys plc and Magic Newco LLC, | 208,077 | 234,780 | ||||||
|
| |||||||
308,441 | ||||||||
|
|
LOANS (Continued) | Principal | Value | ||||||
Asset Management & Custody Banks – 0.1% |
| |||||||
World Endurance Holdings, Inc., | $ | 6,374 | $ | 6,366 | ||||
|
| |||||||
Auto Parts & Equipment – 0.6% |
| |||||||
Alliance Tire Group: | ||||||||
11.375%, 6–25–21 (F)(H) | 35,000 | 35,224 | ||||||
Direct ChassisLink, Inc.: |
| |||||||
8.250%, 11–7–19 (H) | 23,694 | 23,519 | ||||||
|
| |||||||
58,743 | ||||||||
|
| |||||||
Building Products – 1.2% |
| |||||||
Continental Building Products LLC, | 3,642 | 3,587 | ||||||
GYP Holdings III Corp.: |
| |||||||
4.750%, 3–27–21 (H) | 31,945 | 31,466 | ||||||
7.750%, 3–27–22 (H) | 50,245 | 49,993 | ||||||
Hampton Rubber Co. & SEI Holding Corp., | 35,500 | 34,968 | ||||||
|
| |||||||
120,014 | ||||||||
|
| |||||||
Casinos & Gaming – 0.4% |
| |||||||
Centaur Acquisition LLC, | 9,821 | 9,931 | ||||||
Gateway Casinos & Entertainment Ltd.: | ||||||||
6.250%, 11–4–19 (G)(H) | CAD | 38 | 33 | |||||
5.605%, 11–26–19 (G)(H) | 14,869 | 13,177 | ||||||
Scientific Games | $ | 14,698 | 14,399 | |||||
|
| |||||||
37,540 | ||||||||
|
| |||||||
Construction & Engineering – 0.3% |
| |||||||
Tensar International Corp.: |
| |||||||
5.750%, 7–9–21 (H) | 18,961 | 18,843 | ||||||
9.500%, 7–9–22 (H) | 15,197 | 15,165 | ||||||
|
| |||||||
34,008 | ||||||||
|
| |||||||
Construction Materials – 0.5% |
| |||||||
Quickrete Holdings, Inc.: |
| |||||||
7.000%, 3–19–21 (H) | 7,924 | 7,950 | ||||||
U.S. LBM Holdings LLC: |
| |||||||
7.250%, 4–25–20 (H) | 45,059 | 44,496 | ||||||
|
| |||||||
52,446 | ||||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Sedgwick Claims Management Services, Inc., | 8,270 | 8,068 | ||||||
|
| |||||||
Diversified Metals & Mining – 0.3% |
| |||||||
EP Minerals LLC: | ||||||||
5.500%, 7–24–20 (H) | 12,627 | 12,658 | ||||||
8.500%, 7–24–21 (H) | 12,375 | 12,530 | ||||||
|
| |||||||
25,188 | ||||||||
|
|
LOANS (Continued) | Principal | Value | ||||||
Diversified Support Services – 0.4% |
| |||||||
Omnitracs, Inc., | $ | 1,500 | $ | 1,493 | ||||
Sprint Industrial Holdings LLC: |
| |||||||
7.000%, 5–14–19 (H) | 28,815 | 28,743 | ||||||
11.250%, 5–14–19 (H) | 10,642 | 10,695 | ||||||
|
| |||||||
40,931 | ||||||||
|
| |||||||
Environmental & Facilities Services – 0.1% |
| |||||||
Brickman Group Ltd. (The), | 7,789 | 7,692 | ||||||
|
| |||||||
Food Distributors – 0.3% |
| |||||||
Performance Food Group, Inc.: |
| |||||||
6.250%, 11–14–19 (H) | 17,084 | 17,020 | ||||||
6.250%, 11–17–19 (H) | 8,705 | 8,673 | ||||||
|
| |||||||
25,693 | ||||||||
|
| |||||||
Food Retail – 0.6% |
| |||||||
Focus Brands, Inc.: | ||||||||
4.250%, 2–22–18 (H) | 29,529 | 29,206 | ||||||
10.250%, 8–21–18 (H) | 36,399 | 36,581 | ||||||
|
| |||||||
65,787 | ||||||||
|
| |||||||
General Merchandise Stores – 1.1% |
| |||||||
BJ’s Wholesale Club, Inc., 8.500%, 3–31–20 (H) | 42,836 | 43,037 | ||||||
Orchard Acquisition Co. LLC, | 60,471 | 60,169 | ||||||
|
| |||||||
103,206 | ||||||||
|
| |||||||
Health Care Facilities – 1.7% |
| |||||||
Surgery Center Holdings, Inc.: | ||||||||
6.000%, 4–11–19 (H) | 28,130 | 28,130 | ||||||
9.750%, 4–11–20 (H) | 61,246 | 61,246 | ||||||
0.000%, 7–24–20 (H)(I) | 37,505 | 37,364 | ||||||
0.000%, 7–24–21 (H)(I) | 37,505 | 36,849 | ||||||
|
| |||||||
163,589 | ||||||||
|
| |||||||
Health Care Services – 0.6% |
| |||||||
Accellent, Inc., | 19,176 | 18,481 | ||||||
Ikaria, Inc.: | ||||||||
5.000%, 2–4–21 (H) | 15,475 | 15,432 | ||||||
8.750%, 2–4–22 (H) | 23,557 | 23,763 | ||||||
|
| |||||||
57,676 | ||||||||
|
| |||||||
Health Care Supplies – 0.3% |
| |||||||
Sage Products Holdings III LLC, | 30,299 | 30,905 | ||||||
|
| |||||||
Health Care Technology –0.3% |
| |||||||
Vitera Healthcare Solutions LLC: | ||||||||
6.000%, 11–4–20 (H) | 19,274 | 19,178 | ||||||
9.250%, 11–4–21 (H) | 11,652 | 11,535 | ||||||
|
| |||||||
30,713 | ||||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.1% |
| |||||||
Four Seasons Hotels Ltd., | 10,273 | 10,273 | ||||||
|
|
56 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
LOANS (Continued) | Principal | Value | ||||||
Housewares & Specialties – 0.7% |
| |||||||
KIK Custom Products, Inc.: |
| |||||||
5.500%, 5–17–19 (H) | $ | 32,805 | $ | 32,744 | ||||
9.500%, 11–17–19 (H) | 31,814 | 31,867 | ||||||
Provo Craft & Novelty, Inc., | 8,049 | 10 | ||||||
|
| |||||||
64,621 | ||||||||
|
| |||||||
Independent Power Producers & Energy |
| |||||||
Alinta Energy Finance PTY Ltd.: |
| |||||||
0.000%, 8–13–19 (H)(I) | 3,447 | 3,474 | ||||||
6.375%, 8–13–19 (H) | 71,407 | 71,965 | ||||||
|
| |||||||
75,439 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.2% |
| |||||||
Crosby Worldwide Ltd., | 16,645 | 16,562 | ||||||
|
| |||||||
Industrial Machinery – 1.1% |
| |||||||
Capital Safety North America Holdings, Inc.: | ||||||||
3.750%, 3–26–21 (H) | 20,516 | 19,947 | ||||||
6.500%, 3–26–22 (H) | 41,674 | 40,736 | ||||||
Husky Injection Moldings Systems Ltd., | 7,605 | 7,415 | ||||||
NN, Inc., | 9,235 | 9,241 | ||||||
United Central Industrial Supply Co. LLC, | 28,689 | 28,581 | ||||||
|
| |||||||
105,920 | ||||||||
|
| |||||||
Internet Software & Services – 0.9% |
| |||||||
TravelCLICK, Inc. & TCH-2 Holdings LLC: | ||||||||
5.500%, 5–8–21 (H) | 39,136 | 38,745 | ||||||
8.750%, 11–8–21 (H) | 39,154 | 37,979 | ||||||
W3 Co., | 11,387 | 11,045 | ||||||
|
| |||||||
87,769 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 0.2% |
| |||||||
Bats Global Markets, Inc., | 18,538 | 18,074 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.3% |
| |||||||
Active Network, Inc. (The): |
| |||||||
5.500%, 11–15–20 (H) | 30,912 | 30,641 | ||||||
9.500%, 11–15–21 (H) | 42,964 | 43,046 | ||||||
Triple Point Group Holdings, Inc.: | ||||||||
5.250%, 7–13–20 (H) | 31,888 | 28,858 | ||||||
9.250%, 7–13–21 (H) | 24,243 | 20,849 | ||||||
|
| |||||||
123,394 | ||||||||
|
| |||||||
Life Sciences Tools & Services – 0.4% |
| |||||||
Atrium Innovations, Inc., | 40,260 | 39,254 | ||||||
|
| |||||||
Metal & Glass Containers – 0.5% |
| |||||||
Bway Holding Co., | 3,323 | 3,316 |
LOANS (Continued) | Principal | Value | ||||||
Metal & Glass Containers (Continued) |
| |||||||
Consolidated Container Co. LLC, | $ | 11,387 | $ | 11,131 | ||||
Evergreen Tank Solution, Inc., | 30,176 | 30,082 | ||||||
|
| |||||||
44,529 | ||||||||
|
| |||||||
Movies & Entertainment – 1.4% |
| |||||||
Formula One Holdings Ltd. and Delta Two S.a.r.l.: | ||||||||
4.750%, 7–15–21 (H) | 12,024 | 11,859 | ||||||
4.750%, 7–30–21 (H) | 41,172 | 40,606 | ||||||
0.000%, 7–29–22 (H)(I) | 19,336 | 19,239 | ||||||
7.750%, 7–29–22 (H) | 51,262 | 51,005 | ||||||
Metro-Goldwyn-Mayer, Inc., | 5,705 | 5,716 | ||||||
Yonkers Racing Corp., | 5,500 | 4,620 | ||||||
|
| |||||||
133,045 | ||||||||
|
| |||||||
Oil & Gas Drilling – 0.3% |
| |||||||
KCA Deutag Alpha Ltd., 6.250%, 5–13–20 (H) | 34,069 | 33,472 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 0.3% |
| |||||||
Regent Purchaser Investment, Inc., | 25,924 | 25,621 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 0.1% |
| |||||||
Sabine Oil & Gas LLC, | 13,548 | 13,531 | ||||||
|
| |||||||
Oil & Gas Refining & Marketing – 1.2% |
| |||||||
Fieldwood Energy LLC: |
| |||||||
8.375%, 9–30–20 (H) | 51,950 | 52,016 | ||||||
Shelf Drilling Midco Ltd., | 60,366 | 60,366 | ||||||
|
| |||||||
112,382 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 0.8% |
| |||||||
Bowie Resources Holdings LLC: | ||||||||
6.750%, 8–12–20 (H) | 45,608 | 45,494 | ||||||
11.750%, 2–16–21 (H) | 34,306 | 34,735 | ||||||
|
| |||||||
80,229 | ||||||||
|
| |||||||
Other Diversified Financial Services – 0.5% |
| |||||||
Precision Capital Pte. Ltd., | 10,167 | 10,141 | ||||||
WP Mustang Holdings LLC: |
| |||||||
5.500%, 5–29–21 (H) | 21,970 | 21,860 | ||||||
8.500%, 5–29–22 (H) | 23,525 | 23,271 | ||||||
|
| |||||||
55,272 | ||||||||
|
| |||||||
Packaged Foods & Meats – 0.2% |
| |||||||
Shearer’s Foods LLC, | 18,980 | 18,766 | ||||||
|
|
LOANS (Continued) | Principal | Value | ||||||
Paper Packaging – 0.4% |
| |||||||
FPC Holdings, Inc., | $ | 32,147 | $ | 31,370 | ||||
Ranpak (Rack Merger), | 10,906 | 10,851 | ||||||
|
| |||||||
42,221 | ||||||||
|
| |||||||
Pharmaceuticals – 0.2% |
| |||||||
Patheon, Inc., | 18,471 | 18,019 | ||||||
|
| |||||||
Research & Consulting Services – 0.5% |
| |||||||
Larchmont Resources LLC, | 49,386 | 50,003 | ||||||
|
| |||||||
Restaurants – 0.4% |
| |||||||
TGI Friday’s, Inc.: |
| |||||||
5.250%, 6–20–20 (H) | 9,467 | 9,432 | ||||||
9.250%, 6–20–21 (H) | 26,957 | 26,788 | ||||||
|
| |||||||
36,220 | ||||||||
|
| |||||||
Specialized Consumer Services – 0.1% |
| |||||||
Wand Intermediate I L.P., | 11,035 | 11,007 | ||||||
|
| |||||||
Specialty Chemicals – 0.2% |
| |||||||
Chromaflo Technologies Corp., | 21,318 | 21,265 | ||||||
|
| |||||||
TOTAL LOANS –27.2% |
| $ | 2,653,848 | |||||
(Cost: $2,644,977) | ||||||||
TOTAL INVESTMENT SECURITIES – 95.6% |
| $ | 9,311,986 | |||||
(Cost: $9,258,507) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 4.4% |
| 429,034 | ||||||
NET ASSETS – 100.0% |
| $ | 9,741,020 |
2014 | SEMIANNUAL REPORT | 57 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
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, 2014, the Fund owned the following restricted securities: |
Security | Acquisition Date(s) | Shares | Cost | Market Value | ||||||||||
Maritime Finance Co. Ltd. | 9–19–13 | 1,750 | $ | 35,000 | $ | 36,506 | ||||||||
Provo Craft & Novelty, Inc. | 9–15–11 | 3 | 1 | — | ||||||||||
|
| |||||||||||||
$ | 35,001 | $ | 36,506 | |||||||||||
|
|
The total value of these securities represented 0.4% of net assets at September 30, 2014.
(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, 2014, the total value of these securities amounted to $4,790,098 or 49.2% of net assets. |
(F) | Payment-in-kind bonds. |
(G) | Principal amounts are denominated in the indicated foreign currency, where applicable (CAD - Canadian Dollar, EUR - Euro and GBP - British Pound). |
(H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(I) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | British Pound | State Street Global Markets | 20,848 | 10–10–14 | $ | 769 | $ | — | ||||||||||||
Sell | British Pound | Morgan Stanley International | 70,278 | 10–10–14 | 2,558 | — | ||||||||||||||
Sell | Euro | Morgan Stanley International | 79,806 | 10–10–14 | 4,561 | — | ||||||||||||||
Sell | Swiss Franc | Deutsche Bank AG | 35,638 | 10–10–14 | 1,593 | — | ||||||||||||||
|
| |||||||||||||||||||
$ | 9,481 | $ | — | |||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 2,726 | $ | — | $ | 574 | ||||||
Financials | — | — | 36,506 | |||||||||
Utilities | 27,115 | — | — | |||||||||
Total Common Stocks | $ | 29,841 | $ | — | $ | 37,080 | ||||||
Warrants | — | 1,354 | 595 | |||||||||
Corporate Debt Securities | — | 6,464,054 | 122,584 | |||||||||
Municipal Bonds | — | 2,630 | — | |||||||||
Loans | — | 1,745,892 | 907,956 | |||||||||
Total | $ | 29,841 | $ | 8,213,930 | $ | 1,068,215 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 9,481 | $ | — |
58 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy High Income Fund (in thousands) | SEPTEMBER 30, 2014 (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 | |||||||||||||
Beginning Balance 4-1-14 | $ | 36,986 | $ | 2,207 | $ | 162,118 | $ | 842,657 | ||||||||
Net realized gain (loss) | — | — | — | 2,141 | ||||||||||||
Net change in unrealized appreciation (depreciation) | 94 | — | 3,280 | (15,482 | ) | |||||||||||
Purchases | — | — | 19,218 | 433,573 | ||||||||||||
Sales | — | — | — | (323,037 | ) | |||||||||||
Amortization/Accretion of premium/discount | — | — | — | 682 | ||||||||||||
Transfers into Level 3 during the period | — | — | 100,086 | 222,290 | ||||||||||||
Transfers out of Level 3 during the period | — | (1,612 | ) | (162,118 | ) | (254,868 | ) | |||||||||
Ending Balance 9-30-14 | $ | 37,080 | $ | 595 | $ | 122,584 | $ | 907,956 | ||||||||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | 94 | $ | — | $ | 3,280 | $ | (6,849 | ) |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | ||||||||||
Assets | ||||||||||||
Common Stocks | $ | 37,080 | Broker | Broker quotes | ||||||||
Warrants | $ | 595 | Broker | Broker quotes | ||||||||
Corporate Debt Securities | $ | 122,584 | Third-party vendor pricing service | Broker quotes | ||||||||
Loans | $ | 907,956 | 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.
2014 | SEMIANNUAL REPORT | 59 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 96.0% | |||
Financials | 19.1% | |||
Industrials | 13.2% | |||
Consumer Discretionary | 12.6% | |||
Information Technology | 11.2% | |||
Health Care | 9.4% | |||
Consumer Staples | 9.3% | |||
Energy | 8.6% | |||
Materials | 6.6% | |||
Telecommunication Services | 4.4% | |||
Utilities | 1.6% | |||
Cash and Cash Equivalents | 4.0% |
Lipper Rankings
Category: Lipper International Large-Cap Core Funds | Rank | Percentile | ||
1 Year | 4/131 | 4 | ||
3 Year | 10/117 | 9 | ||
5 Year | 7/95 | 8 | ||
10 Year | 2/69 | 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
Europe | 58.6% | |||
United Kingdom | 19.8% | |||
France | 13.9% | |||
Germany | 7.5% | |||
Sweden | 4.6% | |||
Switzerland | 4.3% | |||
Spain | 3.7% | |||
Other Europe | 4.8% | |||
Pacific Basin | 27.5% | |||
Japan | 15.4% | |||
China | 4.6% | |||
Australia | 3.9% | |||
Other Pacific Basin | 3.6% | |||
North America | 4.9% | |||
Other | 2.8% | |||
South America | 2.2% | |||
Cash and Cash Equivalents | 4.0% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Teva Pharmaceutical Industries Ltd. ADR | Israel | Health Care | Pharmaceuticals | |||
Total S.A. | France | Energy | Integrated Oil & Gas | |||
Sanofi-Aventis | France | Health Care | Pharmaceuticals | |||
Fresenius SE & Co. KGaA | Germany | Health Care | Health Care Services | |||
Millea Holdings, Inc. | Japan | Financials | Property & Casualty Insurance | |||
WPP Group plc | United Kingdom | Consumer Discretionary | Advertising | |||
Nestle S.A., Registered Shares | Switzerland | Consumer Staples | Packaged Foods & Meats | |||
Svenska Cellulosa Aktiebolaget SCA (publ), Class B | Sweden | Materials | Paper Products | |||
Volkswagen AG, 2.260% | Germany | Consumer Discretionary | Automobile Manufacturers | |||
Yahoo!, Inc. | United States | Information Technology | Internet Software & Services |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
60 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy International Core Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 3.9% |
| |||||||
Amcor Ltd. | 3,449 | $ | 34,212 | |||||
Coca–Cola Amatil Ltd. | 3,651 | 28,065 | ||||||
Macquarie Group Ltd. | 210 | 10,584 | ||||||
Stockland Corp. Ltd. | 8,093 | 27,989 | ||||||
|
| |||||||
100,850 | ||||||||
|
| |||||||
Brazil – 2.2% |
| |||||||
Hypermarcas S.A. (A) | 3,975 | 28,645 | ||||||
TIM Participacoes S.A. | 4,105 | 21,515 | ||||||
TIM Participacoes S.A. ADR | 198 | 5,190 | ||||||
|
| |||||||
55,350 | ||||||||
|
| |||||||
China – 4.6% |
| |||||||
Baidu.com, Inc. ADR (A) | 132 | 28,821 | ||||||
China Construction Bank Corp. | 52,530 | 36,802 | ||||||
China Unicom Ltd. | 5,406 | 8,076 | ||||||
Kweichow Moutai Co. Ltd., Class A | 809 | 21,359 | ||||||
Ping An Insurance (Group) Co. of China Ltd., A Shares | 3,628 | 24,431 | ||||||
|
| |||||||
119,489 | ||||||||
|
| |||||||
Denmark – 1.0% |
| |||||||
TDC A/S | 3,280 | 24,909 | ||||||
|
| |||||||
France – 13.9% |
| |||||||
Bouygues S.A. | 1,359 | 44,040 | ||||||
Cap Gemini S.A. | 434 | 31,180 | ||||||
European Aeronautic Defence and Space Co. | 571 | 35,905 | ||||||
Gaz de France | 1,638 | 41,095 | ||||||
L Air Liquide S.A. | 227 | 27,675 | ||||||
Lafarge | 394 | 28,390 | ||||||
Sanofi-Aventis | 522 | 59,053 | ||||||
Total S.A. | 965 | 62,739 | ||||||
Vinci | 482 | 28,019 | ||||||
|
| |||||||
358,096 | ||||||||
|
| |||||||
Germany – 5.4% |
| |||||||
Bayer AG | 360 | 50,479 | ||||||
Fresenius SE & Co. KGaA | 1,185 | 58,685 | ||||||
Siemens AG | 243 | 28,952 | ||||||
|
| |||||||
138,116 | ||||||||
|
| |||||||
Hong Kong – 1.5% |
| |||||||
Cheung Kong (Holdings) Ltd. | 2,331 | 38,395 | ||||||
|
| |||||||
Israel – 2.8% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 1,319 | 70,897 | ||||||
|
| |||||||
Japan – 15.4% |
| |||||||
Bridgestone Corp. | 1,188 | 39,227 | ||||||
Inpex Corp. | 2,624 | 37,076 | ||||||
Komatsu Ltd. | 1,674 | 38,711 | ||||||
Millea Holdings, Inc. | 1,888 | 58,565 | ||||||
Mitsubishi Corp. | 1,853 | 37,939 | ||||||
Mitsubishi Heavy Industries Ltd. | 6,255 | 40,242 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan (Continued) |
| |||||||
Nissin Kogyo Co. Ltd. | 1,528 | $ | 25,115 | |||||
Softbank Corp. | 270 | 18,901 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 11,239 | 46,780 | ||||||
Tokyo Electron Ltd. | 422 | 27,536 | ||||||
Yahoo Japan Corp. | 7,233 | 27,499 | ||||||
|
| |||||||
397,591 | ||||||||
|
| |||||||
Luxembourg – 1.1% |
| |||||||
Acergy S.A. | 1,896 | 27,079 | ||||||
|
| |||||||
Mexico – 1.5% |
| |||||||
Grupo Financiero Banorte S.A.B. de C.V. | 5,830 | 37,335 | ||||||
|
| |||||||
Netherlands – 2.7% |
| |||||||
ASML Holding N.V., Ordinary Shares | 324 | 32,218 | ||||||
ING Groep N.V., Certicaaten Van Aandelen (A) | 2,678 | 38,260 | ||||||
|
| |||||||
70,478 | ||||||||
|
| |||||||
South Korea – 2.1% |
| |||||||
Hyundai Mobis | 119 | 28,887 | ||||||
Samsung Electronics Co. Ltd. | 22 | 24,414 | ||||||
|
| |||||||
53,301 | ||||||||
|
| |||||||
Spain – 3.7% |
| |||||||
Amadeus IT Holding S.A. | 784 | 29,346 | ||||||
CaixaBank S.A. | 5,741 | 34,958 | ||||||
Gestevision Telecinco S.A. | 2,386 | 29,692 | ||||||
|
| |||||||
93,996 | ||||||||
|
| |||||||
Sweden – 4.6% |
| |||||||
Investor AB, B Shares | 841 | 29,748 | ||||||
Svenska Cellulosa Aktiebolaget SCA (publ), Class B | 2,232 | 53,223 | ||||||
TeliaSonera AB | 5,169 | 35,759 | ||||||
|
| |||||||
118,730 | ||||||||
|
| |||||||
Switzerland – 4.3% |
| |||||||
Adecco S.A. | 401 | 27,220 | ||||||
Credit Suisse Group AG, Registered Shares | 1,101 | 30,529 | ||||||
Nestle S.A., Registered Shares | 727 | 53,513 | ||||||
|
| |||||||
111,262 | ||||||||
|
| |||||||
United Kingdom – 19.8% |
| |||||||
Antofagasta plc | 2,358 | 27,560 | ||||||
BAE Systems plc | 3,736 | 28,558 | ||||||
BP plc | 4,642 | 34,127 | ||||||
British Sky Broadcasting Group plc | 1,989 | 28,440 | ||||||
Burberry Group plc | 1,261 | 30,894 | ||||||
Legal & General Group plc | 11,771 | 43,679 | ||||||
Marks and Spencer Group plc | 4,055 | 26,595 | ||||||
Petrofac Ltd. | 824 | 13,850 | ||||||
Prudential plc | 1,447 | 32,272 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United Kingdom (Continued) |
| |||||||
Reckitt Benckiser Group plc | 380 | $ | 32,970 | |||||
Rolls-Royce Group plc | 1,805 | 28,219 | ||||||
Royal Dutch Shell plc, Class A | 1,330 | 50,945 | ||||||
SABMiller plc | 727 | 40,399 | ||||||
Unilever plc | 828 | 34,701 | ||||||
WPP Group plc | 2,879 | 57,884 | ||||||
|
| |||||||
511,093 | ||||||||
|
| |||||||
United States – 3.4% |
| |||||||
Cognizant Technology Solutions Corp., Class A (A) | 791 | 35,428 | ||||||
Yahoo!, Inc. (A) | 1,268 | 51,664 | ||||||
|
| |||||||
87,092 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 2,414,059 | |||||
(Cost: $2,253,140) | ||||||||
PREFERRED STOCKS |
| |||||||
Germany – 2.1% |
| |||||||
Volkswagen AG, | 255 | 52,948 | ||||||
|
| |||||||
TOTAL PREFERRED |
| $ | 52,948 | |||||
(Cost: $62,248) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper- 2.4% |
| |||||||
Air Products and Chemicals, Inc., | $ | 5,000 | 5,000 | |||||
Baxter International, Inc., | 7,500 | 7,500 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG), | 5,000 | 5,000 | ||||||
Campbell Soup Co., | 5,000 | 5,000 | ||||||
Diageo Capital plc (GTD by Diageo plc), | 10,000 | 9,999 | ||||||
Roche Holdings, Inc., | 10,000 | 10,000 | ||||||
Virginia Electric and Power Co.: | 13,000 | 12,999 | ||||||
0.210%, 10–3–14 (B) | 8,000 | 8,000 | ||||||
|
| |||||||
63,498 | ||||||||
|
|
2014 | SEMIANNUAL REPORT | 61 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy International Core Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp., | $ | 4,377 | $ | 4,377 | ||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 67,875 | |||||
(Cost: $67,875) | ||||||||
TOTAL INVESTMENT |
| $ | 2,534,882 | |||||
(Cost: $2,383,263) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.4% |
| 36,951 | ||||||
NET ASSETS – 100.0% |
| $ | 2,571,833 |
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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 2,414,059 | $ | — | $ | — | ||||||
Preferred Stocks | 52,948 | — | — | |||||||||
Short-Term Securities | — | 67,875 | — | |||||||||
Total | $ | 2,467,007 | $ | 67,875 | $ | — |
As of September 30, 2014, 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) |
| |||
Financials | 19.1% | |||
Industrials | 13.2% | |||
Consumer Discretionary | 12.6% | |||
Information Technology | 11.2% | |||
Health Care | 9.4% |
Consumer Staples | 9.3% | |||
Energy | 8.6% | |||
Materials | 6.6% | |||
Telecommunication Services | 4.4% | |||
Utilities | 1.6% | |||
Other+ | 4.0% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
62 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.7% | |||
Consumer Discretionary | 25.5% | |||
Health Care | 17.7% | |||
Information Technology | 16.0% | |||
Industrials | 12.3% | |||
Financials | 10.5% | |||
Energy | 3.8% | |||
Telecommunication Services | 3.6% | |||
Materials | 3.2% | |||
Consumer Staples | 3.1% | |||
Cash and Cash Equivalents | 4.3% |
Lipper Rankings
Category: Lipper International Large-Cap Growth Funds | Rank | Percentile | ||
1 Year | 11/144 | 8 | ||
3 Year | 16/114 | 14 | ||
5 Year | 9/106 | 9 | ||
10 Year | 22/77 | 29 |
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 | 39.4% | |||
United Kingdom | 11.4% | |||
France | 11.1% | |||
Germany | 6.7% | |||
Other Europe | 10.2% | |||
North America | 26.3% | |||
United States | 23.3% | |||
Other North America | 3.0% | |||
Pacific Basin | 27.6% | |||
Japan | 14.0% | |||
China | 5.4% | |||
Other Pacific Basin | 8.2% | |||
Other | 2.4% | |||
Cash and Cash Equivalents | 4.3% |
Top 10 Equity Holdings
Company | Country | Sector | Industry | |||
Fuji Heavy Industries Ltd. | Japan | Consumer Discretionary | Automobile Manufacturers | |||
Cognizant Technology Solutions Corp., Class A | United States | Information Technology | IT Consulting & Other Services | |||
Visa, Inc., Class A | United States | Information Technology | Data Processing & Outsourced Services | |||
Teva Pharmaceutical Industries Ltd. ADR | Israel | Health Care | Pharmaceuticals | |||
Tokyo Electron Ltd. | Japan | Information Technology | Semiconductor Equipment | |||
Fresenius SE & Co. KGaA | Germany | Health Care | Health Care Services | |||
Gilead Sciences, Inc. | United States | Health Care | Biotechnology | |||
InBev N.V. | United States | Consumer Staples | Brewers | |||
Baidu.com, Inc. ADR | China | Information Technology | Internet Software & Services | |||
Shire plc | United Kingdom | Health Care | Pharmaceuticals |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 63 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy International Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Australia – 1.8% |
| |||||||
Telstra Corp. Ltd. ADR | 1,896 | $ | 8,796 | |||||
|
| |||||||
Canada – 1.6% |
| |||||||
Canadian Pacific Railway Ltd. | 36 | 7,550 | ||||||
|
| |||||||
China – 5.4% |
| |||||||
Alibaba Group Holding Ltd. ADR (A) | 21 | 1,883 | ||||||
Baidu.com, Inc. ADR (A) | 45 | 9,856 | ||||||
CAR, Inc. (A)(B) | 2,924 | 4,212 | ||||||
Ctrip.com International Ltd. (A) | 75 | 4,246 | ||||||
JD.com, Inc. ADR (A) | 231 | 5,964 | ||||||
|
| |||||||
26,161 | ||||||||
|
| |||||||
France – 11.1% |
| |||||||
Cap Gemini S.A. | 126 | 9,041 | ||||||
Compagnie Generale des Etablissements Michelin, Class B | 63 | 5,905 | ||||||
European Aeronautic Defence and Space Co. | 144 | 9,086 | ||||||
L Air Liquide S.A. | 39 | 4,774 | ||||||
LVMH Moet Hennessy - Louis Vuitton | 33 | 5,394 | ||||||
Pinault-Printemps-Redoute S.A. | 29 | 5,799 | ||||||
Safran | 143 | 9,269 | ||||||
Vinci | 78 | 4,550 | ||||||
|
| |||||||
53,818 | ||||||||
|
| |||||||
Germany – 6.7% |
| |||||||
Bayer AG | 65 | 9,126 | ||||||
Bayerische Motoren Werke AG | 37 | 3,920 | ||||||
Continental AG | 48 | 9,076 | ||||||
Fresenius SE & Co. KGaA | 209 | 10,365 | ||||||
|
| |||||||
32,487 | ||||||||
|
| |||||||
Hong Kong – 1.3% |
| |||||||
Galaxy Entertainment Group | 1,124 | 6,528 | ||||||
|
| |||||||
India – 1.8% |
| |||||||
ITC Ltd. | 836 | 5,013 | ||||||
NMDC Ltd. | 1,460 | 3,910 | ||||||
|
| |||||||
8,923 | ||||||||
|
| |||||||
Ireland – 1.4% |
| |||||||
Smurfit Kappa Group plc | 310 | 6,777 | ||||||
|
| |||||||
Israel – 2.4% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 220 | 11,799 | ||||||
|
| |||||||
Italy – 1.5% |
| |||||||
Azimut Holding S.p.A. | 292 | 7,395 | ||||||
|
| |||||||
Japan – 14.0% |
| |||||||
Daihatsu Motor Co. Ltd. | 273 | 4,335 | ||||||
Fuji Heavy Industries Ltd. | 582 | 19,244 | ||||||
JGC Corp. | 136 | 3,713 | ||||||
Komatsu Ltd. | 333 | 7,694 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Japan (Continued) |
| |||||||
Mitsubishi Electric Corp. | 401 | $ | 5,340 | |||||
Nissin Kogyo Co. Ltd. | 39 | 643 | ||||||
ORIX Corp. | 523 | 7,218 | ||||||
Sumitomo Corp. | 298 | 3,284 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,159 | 4,824 | ||||||
Tokyo Electron Ltd. | 167 | 10,906 | ||||||
|
| |||||||
67,201 | ||||||||
|
| |||||||
Mexico – 1.4% |
| |||||||
Grupo Financiero Banorte S.A.B. de C.V. | 1,064 | 6,815 | ||||||
|
| |||||||
Netherlands – 2.5% |
| |||||||
ASML Holding N.V., NY Registry Shares | 56 | 5,551 | ||||||
Koninklijke Philips Electronics N.V., Ordinary Shares | 204 | 6,511 | ||||||
|
| |||||||
12,062 | ||||||||
|
| |||||||
Portugal – 0.4% |
| |||||||
Galp Energia SGPS S.A., Class B | 131 | 2,134 | ||||||
|
| |||||||
South Korea – 1.9% |
| |||||||
Hyundai Motor Co. | 51 | 9,178 | ||||||
|
| |||||||
Spain – 1.9% |
| |||||||
CaixaBank S.A. | 1,485 | 9,041 | ||||||
|
| |||||||
Switzerland – 2.5% |
| |||||||
Compagnie Financiere Richemont S.A. | 48 | 3,921 | ||||||
Novartis AG, Registered Shares | 89 | 8,361 | ||||||
|
| |||||||
12,282 | ||||||||
|
| |||||||
Taiwan – 1.4% |
| |||||||
MediaTek, Inc. | 464 | 6,872 | ||||||
|
| |||||||
United Kingdom – 11.4% |
| |||||||
Aviva plc | 683 | 5,795 | ||||||
BG Group plc | 107 | 1,984 | ||||||
BP plc | 7 | 55 | ||||||
Capita Group plc (The) | 177 | 3,334 | ||||||
Experian plc | 349 | 5,560 | ||||||
GlaxoSmithKline plc | 313 | 7,168 | ||||||
Merlin Entertainments plc | 693 | 3,942 | ||||||
Prudential plc | 426 | 9,512 | ||||||
Royal Dutch Shell plc, Class A | 198 | 7,580 | ||||||
Shire plc | 114 | 9,847 | ||||||
|
| |||||||
54,777 | ||||||||
|
| |||||||
United States – 23.3% |
| |||||||
Amazon.com, Inc. (A) | 30 | 9,628 | ||||||
Biogen Idec, Inc. (A) | 30 | 9,772 | ||||||
Cognizant Technology Solutions Corp., Class A (A) | 277 | 12,388 | ||||||
Gilead Sciences, Inc. (A) | 96 | 10,194 | ||||||
HCA Holdings, Inc. (A) | 125 | 8,820 |
COMMON STOCKS (Continued) | Shares | Value | ||||||
United States (Continued) |
| |||||||
Hilton Worldwide Holdings, Inc. (A) | 304 | $ | 7,486 | |||||
InBev N.V. | 90 | 10,046 | ||||||
Limited Brands, Inc. | 113 | 7,553 | ||||||
SBA Communications Corp. (A) | 77 | 8,583 | ||||||
Schlumberger Ltd. | 65 | 6,637 | ||||||
Twitter, Inc. (A) | 131 | 6,760 | ||||||
Veeco Instruments, Inc. (A) | 59 | 2,063 | ||||||
Visa, Inc., Class A | 57 | 12,262 | ||||||
|
| |||||||
112,192 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 462,788 | |||||
(Cost: $413,838) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 3.3% |
| |||||||
Campbell Soup Co., | $ | 5,000 | 5,000 | |||||
Mondelez International, Inc., | 3,311 | 3,311 | ||||||
Wisconsin Gas LLC, | 8,000 | 8,000 | ||||||
|
| |||||||
16,311 | ||||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp., | 1,272 | 1,272 | ||||||
|
| |||||||
Municipal Obligations-Taxable – 0.2% |
| |||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.), | 1,000 | 1,000 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 18,583 | |||||
(Cost: $18,583) | ||||||||
TOTAL INVESTMENT |
| $ | 481,371 | |||||
(Cost: $432,421) | ||||||||
CASH AND OTHER ASSETS, |
| 2,358 | ||||||
NET ASSETS – 100.0% | $ | 483,729 |
64 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy International Growth Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014, the total value of these securities amounted to $4,212 or 0.9% of net assets. |
(C) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2014:
Type | Currency | Counterparty | Principal Amount of Contract (Denominated in Indicated Currency) | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
Sell | Japanese Yen | Goldman Sachs International | 2,065,400 | 10–10–14 | $ | 1,042 | $ | — | ||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 119,274 | $ | — | $ | 4,212 | ||||||
Consumer Staples | 15,059 | — | — | |||||||||
Energy | 18,391 | — | — | |||||||||
Financials | 50,599 | — | — | |||||||||
Health Care | 85,452 | — | — | |||||||||
Industrials | 59,380 | — | — | |||||||||
Information Technology | 77,581 | — | — | |||||||||
Materials | 15,461 | — | — | |||||||||
Telecommunication Services | 17,379 | — | — | |||||||||
Total Common Stocks | $ | 458,576 | $ | — | $ | 4,212 | ||||||
Short-Term Securities | — | 18,583 | — | |||||||||
Total | $ | 458,576 | $ | 18,583 | $ | 4,212 | ||||||
Forward Foreign Currency Contracts | $ | — | $ | 1,042 | $ | — |
As of September 30, 2014, 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 | 25.5% | |||
Health Care | 17.7% | |||
Information Technology | 16.0% | |||
Industrials | 12.3% |
Financials | 10.5% | |||
Energy | 3.8% | |||
Telecommunication Services | 3.6% | |||
Materials | 3.2% | |||
Consumer Staples | 3.1% | |||
Other+ | 4.3% |
+ | Includes cash and cash equivalents and other assets and liabilities |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 65 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 98.5% | |||
Information Technology | 28.8% | |||
Consumer Discretionary | 22.5% | |||
Health Care | 19.3% | |||
Industrials | 16.2% | |||
Consumer Staples | 4.9% | |||
Energy | 3.9% | |||
Telecommunication Services | 1.5% | |||
Materials | 1.4% | |||
Cash and Cash Equivalents | 1.5% |
Lipper Rankings
Category: Lipper Large-Cap Growth Funds | Rank | Percentile | ||
1 Year | 227/715 | 32 | ||
3 Year | 373/613 | 61 | ||
5 Year | 323/547 | 59 | ||
10 Year | 84/387 | 22 |
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 | |||
Gilead Sciences, Inc. | Health Care | |||
Apple, Inc. | Information Technology | |||
Biogen Idec, Inc. | Health Care | |||
Canadian Pacific Railway Ltd. | Industrials | |||
MasterCard, Inc., Class A | Information Technology | |||
Celgene Corp. | Health Care | |||
Facebook, Inc., Class A | Information Technology | |||
Applied Materials, Inc. | Information Technology | |||
Home Depot, Inc. (The) | Consumer Discretionary | |||
Union Pacific Corp. | Industrials |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
66 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Large Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Aerospace & Defense – 4.1% |
| |||||||
Boeing Co. (The) | 275 | $ | 35,016 | |||||
Precision Castparts Corp. | 117 | 27,810 | ||||||
|
| |||||||
62,826 | ||||||||
|
| |||||||
Apparel Retail – 0.7% |
| |||||||
Limited Brands, Inc. | 153 | 10,275 | ||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 0.9% |
| |||||||
Under Armour, Inc., Class A (A) | 201 | 13,903 | ||||||
|
| |||||||
Application Software – 2.2% |
| |||||||
Adobe Systems, Inc. (A) | 491 | 33,972 | ||||||
|
| |||||||
Automotive Retail – 1.6% |
| |||||||
AutoZone, Inc. (A) | 17 | 8,868 | ||||||
O’Reilly Automotive, Inc. (A) | 98 | 14,750 | ||||||
|
| |||||||
23,618 | ||||||||
|
| |||||||
Biotechnology – 13.4% |
| |||||||
Biogen Idec, Inc. (A) | 197 | 65,009 | ||||||
Celgene Corp. (A) | 625 | 59,256 | ||||||
Gilead Sciences, Inc. (A) | 746 | 79,412 | ||||||
|
| |||||||
203,677 | ||||||||
|
| |||||||
Brewers – 2.3% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 309 | 34,286 | ||||||
|
| |||||||
Broadcasting – 2.3% |
| |||||||
CBS Corp., Class B | 638 | 34,149 | ||||||
|
| |||||||
Cable & Satellite – 1.7% |
| |||||||
Comcast Corp., Class A | 473 | 25,433 | ||||||
|
| |||||||
Casinos & Gaming – 2.6% |
| |||||||
Las Vegas Sands, Inc. | 321 | 19,957 | ||||||
Wynn Resorts Ltd. | 102 | 19,082 | ||||||
|
| |||||||
39,039 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 0.5% |
| |||||||
Caterpillar, Inc. | 72 | 7,100 | ||||||
|
| |||||||
Consumer Electronics – 2.7% |
| |||||||
Harman International Industries, Inc. | 417 | 40,893 | ||||||
|
| |||||||
Data Processing & Outsourced Services – 8.7% |
| |||||||
FleetCor Technologies, Inc. (A) | 201 | 28,538 | ||||||
MasterCard, Inc., Class A | 808 | 59,742 | ||||||
Visa, Inc., Class A | 206 | 44,018 | ||||||
|
| |||||||
132,298 | ||||||||
|
| |||||||
Diversified Chemicals – 1.4% |
| |||||||
PPG Industries, Inc. | 111 | 21,858 | ||||||
|
| |||||||
Electrical Components & Equipment – 0.5% |
| |||||||
Rockwell Automation, Inc. | 65 | 7,142 | ||||||
|
| |||||||
Footwear – 1.2% |
| |||||||
NIKE, Inc., Class B | 198 | 17,679 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Facilities – 2.6% |
| |||||||
HCA Holdings, Inc. (A) | 550 | $ | 38,814 | |||||
|
| |||||||
Home Improvement Retail – 2.9% |
| |||||||
Home Depot, Inc. (The) | 492 | 45,145 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.5% |
| |||||||
Hilton Worldwide Holdings, Inc. (A) | 312 | 7,689 | ||||||
|
| |||||||
Industrial Machinery – 2.8% |
| |||||||
Flowserve Corp. | 400 | 28,187 | ||||||
Pentair, Inc. | 218 | 14,303 | ||||||
|
| |||||||
42,490 | ||||||||
|
| |||||||
Internet Retail – 2.1% |
| |||||||
Amazon.com, Inc. (A) | 55 | 17,831 | ||||||
priceline.com, Inc. (A) | 12 | 14,019 | ||||||
|
| |||||||
31,850 | ||||||||
|
| |||||||
Internet Software & Services – 7.5% |
| |||||||
Facebook, Inc., Class A (A) | 705 | 55,755 | ||||||
Google, Inc., Class A (A) | 40 | 23,654 | ||||||
Google, Inc., Class C (A) | 52 | 30,080 | ||||||
LinkedIn Corp., Class A (A) | 20 | 4,177 | ||||||
|
| |||||||
113,666 | ||||||||
|
| |||||||
IT Consulting & Other Services – 1.4% |
| |||||||
Cognizant Technology Solutions Corp., Class A (A) | 481 | 21,525 | ||||||
|
| |||||||
Motorcycle Manufacturers – 2.2% |
| |||||||
Harley-Davidson, Inc. | 586 | 34,117 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 2.8% |
| |||||||
Schlumberger Ltd. | 424 | 43,087 | ||||||
|
| |||||||
Oil & Gas Exploration & Production – 1.1% |
| |||||||
EOG Resources, Inc. | 167 | 16,556 | ||||||
|
| |||||||
Packaged Foods & Meats – 1.7% |
| |||||||
Green Mountain Coffee Roasters, Inc. | 197 | 25,649 | ||||||
|
| |||||||
Pharmaceuticals – 3.3% |
| |||||||
Allergan, Inc. | 147 | 26,194 | ||||||
Bristol-Myers Squibb Co. | 471 | 24,126 | ||||||
|
| |||||||
50,320 | ||||||||
|
| |||||||
Railroads – 8.3% |
| |||||||
Canadian Pacific Railway Ltd. | 290 | 60,188 | ||||||
Kansas City Southern | 179 | 21,743 | ||||||
Union Pacific Corp. | 415 | 45,016 | ||||||
|
| |||||||
126,947 | ||||||||
|
| |||||||
Semiconductor Equipment – 3.1% |
| |||||||
Applied Materials, Inc. | 2,205 | 47,652 | ||||||
|
| |||||||
Semiconductors – 1.0% |
| |||||||
NXP Semiconductors N.V. (A) | 217 | 14,836 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialty Stores – 1.1% |
| |||||||
Ulta Salon, Cosmetics & Fragrance, Inc. (A) | 144 | $ | 17,040 | |||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.9% |
| |||||||
Apple, Inc. | 732 | 73,758 | ||||||
|
| |||||||
Tobacco – 0.9% |
| |||||||
Philip Morris International, Inc. | 167 | 13,936 | ||||||
|
| |||||||
Wireless Telecommunication Service – 1.5% |
| |||||||
American Tower Corp., Class A | 186 | 17,387 | ||||||
SBA Communications Corp. (A) | 48 | 5,312 | ||||||
|
| |||||||
22,699 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 1,495,924 | |||||
(Cost: $977,280) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 1.3% |
| |||||||
Air Products and Chemicals, Inc., | $ | 5,000 | 5,000 | |||||
Army & Air Force Exchange Service, | 5,000 | 5,000 | ||||||
BorgWarner, Inc., | 5,000 | 4,999 | ||||||
CVS Caremark Corp., | 2,000 | 2,000 | ||||||
Illinois Tool Works, Inc., | 3,000 | 3,000 | ||||||
|
| |||||||
19,999 | ||||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp., | 3,899 | 3,899 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 23,898 | |||||
(Cost: $23,898) | ||||||||
TOTAL INVESTMENT |
| $ | 1,519,822 | |||||
(Cost: $1,001,178) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%) |
| (2,240 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,517,582 |
2014 | SEMIANNUAL REPORT | 67 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Large Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 1,495,924 | $ | — | $ | — | ||||||
Short-Term Securities | — | 23,898 | — | |||||||||
Total | $ | 1,495,924 | $ | 23,898 | $ | — |
As of September 30, 2014, 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.
68 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Bonds | 92.5% | |||
Corporate Debt Securities | 75.0% | |||
United States Government and Government Agency Obligations | 17.0% | |||
Municipal Bonds – Taxable | 0.5% | |||
Cash and Cash Equivalents | 7.5% |
Lipper Rankings
Category: Lipper Short-Intermediate Investment Grade Debt Funds | Rank | Percentile | ||
1 Year | 121/166 | 73 | ||
3 Year | 99/120 | 82 | ||
5 Year | 91/103 | 88 | ||
10 Year | 54/86 | 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.
Quality Weightings
Investment Grade | 89.1% | |||
AA | 23.9% | |||
A | 31.2% | |||
BBB | 34.0% | |||
Non-Investment Grade | 3.4% | |||
BB | 2.2% | |||
B | 1.2% | |||
Cash and Cash Equivalents | 7.5% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
2014 | SEMIANNUAL REPORT | 69 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES | Principal | Value | ||||||
Airlines – 0.3% |
| |||||||
Southwest Airlines Co., | $ | 5,000 | $ | 5,397 | ||||
|
| |||||||
Apparel Retail – 0.9% |
| |||||||
Limited Brands, Inc., | 13,000 | 15,340 | ||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 0.9% |
| |||||||
LVMH Moet Hennessy - Louis Vuitton, | 16,000 | 16,070 | ||||||
|
| |||||||
Automobile Manufacturers – 3.1% |
| |||||||
General Motors Co., | 17,915 | 18,206 | ||||||
Toyota Motor Credit Corp.: | ||||||||
2.000%, 9–15–16 | 13,250 | 13,526 | ||||||
2.000%, 10–24–18 | 5,125 | 5,133 | ||||||
Volkswagen Group of America, Inc., | 16,000 | 15,872 | ||||||
|
| |||||||
52,737 | ||||||||
|
| |||||||
Biotechnology – 0.9% |
| |||||||
Amgen, Inc.: | ||||||||
2.125%, 5–15–17 | 5,500 | 5,598 | ||||||
2.200%, 5–22–19 | 10,775 | 10,663 | ||||||
|
| |||||||
16,261 | ||||||||
|
| |||||||
Brewers – 0.4% |
| |||||||
Anheuser–Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB), | 5,324 | 6,429 | ||||||
|
| |||||||
Broadcasting – 1.1% |
| |||||||
CBS Corp., | 3,500 | 3,793 | ||||||
CBS Corp. (GTD by CBS Operations, Inc.), | 15,000 | 14,800 | ||||||
|
| |||||||
18,593 | ||||||||
|
| |||||||
Cable & Satellite – 1.9% |
| |||||||
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc.: | ||||||||
5.875%, 10–1–19 | 9,000 | 10,317 | ||||||
5.200%, 3–15–20 | 6,000 | 6,721 | ||||||
5.000%, 3–1–21 | 3,850 | 4,264 | ||||||
TCI Communications, Inc., | 7,000 | 7,476 | ||||||
Time Warner Co., Inc. (GTD by Time Warner, Inc.), | 4,000 | 4,650 | ||||||
|
| |||||||
33,428 | ||||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Joy Global, Inc., | 16,157 | 17,647 | ||||||
|
|
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Consumer Finance – 5.6% |
| |||||||
American Express Co., | $ | 10,000 | $ | 11,644 | ||||
American Express Credit corp., | 5,320 | 5,350 | ||||||
American Honda Finance Corp.: | ||||||||
1.450%, 2–27–15 (A) | 6,995 | 7,028 | ||||||
1.500%, 9–11–17 (A) | 6,000 | 6,017 | ||||||
7.625%, 10–1–18 (A) | 5,000 | 6,037 | ||||||
Capital One Bank USA N.A., | 2,650 | 2,641 | ||||||
Capital One Financial Corp., | 9,000 | 10,274 | ||||||
Capital One N.A., | 6,000 | 5,939 | ||||||
Caterpillar Financial Services Corp., | 2,000 | 2,003 | ||||||
Ford Motor Credit Co. LLC: | ||||||||
1.500%, 1–17–17 | 2,450 | 2,446 | ||||||
5.000%, 5–15–18 | 17,500 | 19,115 | ||||||
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.), | 4,500 | 4,535 | ||||||
Hyundai Capital America: | ||||||||
1.875%, 8–9–16 (A) | 4,000 | 4,049 | ||||||
2.875%, 8–9–18 (A) | 5,525 | 5,661 | ||||||
Western Union Co. (The), | 3,000 | 3,271 | ||||||
|
| |||||||
96,010 | ||||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
Alliance Data Systems Corp.: | ||||||||
5.250%, 12–1–17 (A) | 6,600 | 6,683 | ||||||
6.375%, 4–1–20 (A) | 6,000 | 6,180 | ||||||
5.375%, 8–1–22 (A) | 6,838 | 6,633 | ||||||
Fidelity National Financial, Inc., | 12,215 | 13,587 | ||||||
|
| |||||||
33,083 | ||||||||
|
| |||||||
Department Stores – 0.8% |
| |||||||
Macy’s Retail Holdings, Inc., | 12,100 | 13,933 | ||||||
|
| |||||||
Distillers & Vintners – 1.4% |
| |||||||
Beam, Inc., | 10,000 | 9,831 | ||||||
Diageo Capital plc, | 13,500 | 15,168 | ||||||
|
| |||||||
24,999 | ||||||||
|
| |||||||
Diversified Banks – 6.0% |
| |||||||
Bank of America Corp.: | ||||||||
5.650%, 5–1–18 | 6,000 | 6,675 | ||||||
7.625%, 6–1–19 | 9,000 | 10,875 | ||||||
Bank of New York Mellon Corp. (The), | 12,750 | 12,648 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Diversified Banks (Continued) |
| |||||||
Bank of Nova Scotia (The): | ||||||||
2.050%, 10–30–18 | $ | 14,150 | $ | 14,113 | ||||
2.050%, 6–5–19 | 8,650 | 8,553 | ||||||
Commonwealth Bank of Australia: | ||||||||
1.950%, 3–16–15 | 5,000 | 5,037 | ||||||
2.250%, 3–13–19 | 8,500 | 8,495 | ||||||
HSBC Bank plc, | 6,000 | 6,230 | ||||||
U.S. Bancorp, | 10,000 | 10,286 | ||||||
Wachovia Corp., | 13,500 | 15,220 | ||||||
Wells Fargo & Co., | 4,425 | 4,372 | ||||||
|
| |||||||
102,504 | ||||||||
|
| |||||||
Diversified Chemicals – 1.7% |
| |||||||
Dow Chemical Co. (The), | 14,382 | 15,394 | ||||||
E.I. du Pont de Nemours and Co., | 11,500 | 11,859 | ||||||
|
| |||||||
27,253 | ||||||||
|
| |||||||
Diversified Metals & Mining – 0.7% |
| |||||||
Rio Tinto Finance (USA) Ltd., | 12,500 | 12,794 | ||||||
|
| |||||||
Drug Retail – 0.4% |
| |||||||
Walgreen Co., | 6,500 | 6,524 | ||||||
|
| |||||||
Electric Utilities – 0.9% |
| |||||||
Kansas City Power & Light Co., | 13,555 | 16,319 | ||||||
|
| |||||||
Electronic Equipment & Instruments – 0.9% |
| |||||||
Xerox Corp., | 14,000 | 15,999 | ||||||
|
| |||||||
Electronic Manufacturing Services – 0.7% |
| |||||||
Jabil Circuit, Inc., | 11,290 | 12,419 | ||||||
|
| |||||||
Environmental & Facilities Services – 1.8% |
| |||||||
Republic Services, Inc., | 14,690 | 15,609 | ||||||
Waste Management, Inc.: | ||||||||
6.100%, 3–15–18 | 10,000 | 11,393 | ||||||
4.750%, 6–30–20 | 1,675 | 1,848 | ||||||
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.), | 1,985 | 2,396 | ||||||
|
| |||||||
31,246 | ||||||||
|
| |||||||
Food Distributors – 1.2% |
| |||||||
ConAgra Foods, Inc.: | ||||||||
1.300%, 1–25–16 | 2,940 | 2,952 | ||||||
5.819%, 6–15–17 | 2,500 | 2,760 | ||||||
7.000%, 4–15–19 | 10,742 | 12,746 |
70 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Food Distributors (Continued) |
| |||||||
Wm. Wrigley Jr. Co.: | ||||||||
2.000%, 10–20–17 (A) | $ | 1,000 | $ | 1,009 | ||||
2.400%, 10–21–18 (A) | 1,500 | 1,511 | ||||||
|
| |||||||
20,978 | ||||||||
|
| |||||||
Forest Products – 0.9% |
| |||||||
Georgia-Pacific LLC, | 14,000 | 15,824 | ||||||
|
| |||||||
General Merchandise Stores – 0.9% |
| |||||||
Dollar General Corp.: | ||||||||
4.125%, 7–15–17 | 12,500 | 13,056 | ||||||
1.875%, 4–15–18 | 3,000 | 2,890 | ||||||
|
| |||||||
15,946 | ||||||||
|
| |||||||
Health Care Equipment – 0.8% |
| |||||||
Stryker Corp.: | ||||||||
2.000%, 9–30–16 | 11,575 | 11,810 | ||||||
4.375%, 1–15–20 | 1,500 | 1,637 | ||||||
|
| |||||||
13,447 | ||||||||
|
| |||||||
Health Care Services – 1.0% |
| |||||||
Quest Diagnostics, Inc.: |
| |||||||
3.200%, 4–1–16 | 14,000 | 14,446 | ||||||
6.400%, 7–1–17 | 2,000 | 2,259 | ||||||
|
| |||||||
16,705 | ||||||||
|
| |||||||
Health Care Supplies – 1.9% |
| |||||||
Catholic Health Initiatives, | 9,555 | 9,686 | ||||||
DENTSPLY International, Inc., | 4,000 | 4,114 | ||||||
Express Scripts Holding Co., | 13,500 | 13,314 | ||||||
Laboratory Corp. of America Holdings, | 5,350 | 5,376 | ||||||
|
| |||||||
32,490 | ||||||||
|
| |||||||
Home Improvement Retail – 1.2% |
| |||||||
Lowe’s Co., Inc.: |
| |||||||
5.000%, 10–15–15 | 8,000 | 8,361 | ||||||
2.125%, 4–15–16 | 11,366 | 11,569 | ||||||
|
| |||||||
19,930 | ||||||||
|
| |||||||
Industrial Conglomerates – 1.5% |
| |||||||
Danaher Corp., | 7,700 | 8,760 | ||||||
General Electric Capital Corp., | 15,500 | 17,526 | ||||||
|
| |||||||
26,286 | ||||||||
|
| |||||||
Integrated Oil & Gas – 1.8% |
| |||||||
Petro-Canada, | 14,700 | 16,766 | ||||||
Statoil ASA (GTD by Statoil Petroleum AS), | 3,500 | 3,513 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Integrated Oil & Gas (Continued) |
| |||||||
StatoilHydro ASA (GTD by StatoilHydro Petroleum AS), | $ | 10,000 | $ | 11,267 | ||||
|
| |||||||
31,546 | ||||||||
|
| |||||||
Integrated Telecommunication Services – 1.8% |
| |||||||
AT&T, Inc., | 6,715 | 6,935 | ||||||
CC Holdings GS V LLC, | 8,335 | 8,433 | ||||||
Verizon Communications, | 14,000 | 16,285 | ||||||
|
| |||||||
31,653 | ||||||||
|
| |||||||
Internet Software & Services – 0.3% |
| |||||||
eBay, Inc., | 5,000 | 4,979 | ||||||
|
| |||||||
Investment Banking & Brokerage – 2.0% |
| |||||||
Goldman Sachs Group, Inc. (The): | ||||||||
3.700%, 8–1–15 | 6,460 | 6,622 | ||||||
7.500%, 2–15–19 | 9,000 | 10,734 | ||||||
Morgan Stanley: |
| |||||||
4.100%, 1–26–15 | 3,000 | 3,034 | ||||||
6.000%, 4–28–15 | 1,000 | 1,031 | ||||||
5.625%, 9–23–19 | 12,340 | 13,890 | ||||||
|
| |||||||
35,311 | ||||||||
|
| |||||||
Leisure Products – 0.1% |
| |||||||
Mattel, Inc., | 2,500 | 2,566 | ||||||
|
| |||||||
Life & Health Insurance – 0.7% |
| |||||||
MetLife, Inc., | 11,000 | 12,902 | ||||||
|
| |||||||
Metal & Glass Containers – 0.6% |
| |||||||
FBG Finance Ltd., | 9,000 | 9,993 | ||||||
|
| |||||||
Multi-Utilities – 1.1% |
| |||||||
Dominion Resources, Inc., | 11,118 | 12,793 | ||||||
Dominion Resources, Inc., Series A, | 4,850 | 4,816 | ||||||
|
| |||||||
17,609 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 1.5% |
| |||||||
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.), | 13,000 | 15,232 | ||||||
Schlumberger Investment S.A. (GTD by Schlumberger Ltd.): | ||||||||
1.950%, 9–14–16 (A) | 3,000 | 3,060 | ||||||
1.250%, 8–1–17 (A) | 5,000 | 4,986 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Oil & Gas Equipment & Services (Continued) |
| |||||||
Schlumberger Norge A.S. (GTD by Schlumberger Ltd.), | $ | 3,000 | $ | 3,060 | ||||
|
| |||||||
26,338 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 4.6% |
| |||||||
BP Capital Markets plc (GTD by BP plc), | 12,000 | 12,040 | ||||||
EOG Resources, Inc., | 6,000 | 6,142 | ||||||
EQT Corp., | 11,520 | 14,113 | ||||||
Marathon Oil Corp., | 11,240 | 11,244 | ||||||
Plains Exploration & Production Co.: | ||||||||
8.625%, 10–15–19 | 14,814 | 15,538 | ||||||
6.875%, 2–15–23 | 16,608 | 18,849 | ||||||
|
| |||||||
77,926 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 2.3% |
| |||||||
Copano Energy LLC and Copano Energy Finance Corp., | 4,566 | 5,080 | ||||||
DCP Midstream Operating L.P. (GTD by DCP Midstream Partners L.P.): | ||||||||
3.250%, 10–1–15 | 5,500 | 5,639 | ||||||
2.700%, 4–1–19 | 2,000 | 2,005 | ||||||
El Paso Corp., | 17,550 | 19,350 | ||||||
Kinder Morgan Energy Partners L.P., | 7,000 | 7,830 | ||||||
|
| |||||||
39,904 | ||||||||
|
| |||||||
Other Diversified Financial Services – 4.0% |
| |||||||
Citigroup, Inc., | 16,000 | 15,991 | ||||||
Daimler Finance North America LLC, | 16,600 | 16,703 | ||||||
John Deere Capital Corp., | 15,000 | 14,937 | ||||||
JPMorgan Chase & Co., | 16,500 | 18,574 | ||||||
Moody’s Corp., | 3,600 | 3,620 | ||||||
|
| |||||||
69,825 | ||||||||
|
| |||||||
Packaged Foods & Meats – 1.2% |
| |||||||
Kraft Foods, Inc., | 12,000 | 12,510 | ||||||
Tyson Foods, Inc. (GTD by Tyson Fresh Meats, Inc.), 2.650%, 8–15–19 | 8,000 | 8,010 | ||||||
|
| |||||||
20,520 | ||||||||
|
|
2014 | SEMIANNUAL REPORT | 71 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Pharmaceuticals – 2.5% |
| |||||||
AbbVie, Inc., | $ | 15,000 | $ | 15,056 | ||||
GlaxoSmithKline Capital, Inc., | 6,600 | 7,473 | ||||||
Merck & Co., Inc., | 4,925 | 4,874 | ||||||
Mylan, Inc., | 14,920 | 16,188 | ||||||
|
| |||||||
43,591 | ||||||||
|
| |||||||
Property & Casualty Insurance – 0.8% |
| |||||||
Berkshire Hathaway, Inc.: |
| |||||||
2.200%, 8–15–16 | 2,650 | 2,726 | ||||||
1.900%, 1–31–17 | 4,000 | 4,077 | ||||||
2.100%, 8–14–19 | 7,375 | 7,337 | ||||||
|
| |||||||
14,140 | ||||||||
|
| |||||||
Regional Banks – 1.0% |
| |||||||
PNC Bank N.A., | 7,500 | 7,546 | ||||||
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.), | 8,500 | 10,114 | ||||||
|
| |||||||
17,660 | ||||||||
|
| |||||||
Soft Drinks – 0.3% |
| |||||||
Bottling Group LLC, | 4,059 | 4,543 | ||||||
|
| |||||||
Specialty Chemicals – 1.0% |
| |||||||
Methanex Corp., | 17,832 | 18,108 | ||||||
|
| |||||||
Systems Software – 0.9% |
| |||||||
CA, Inc.: |
| |||||||
6.125%, 12–1–14 | 3,267 | 3,297 | ||||||
5.375%, 12–1–19 | 11,525 | 12,799 | ||||||
|
| |||||||
16,096 | ||||||||
|
| |||||||
Technology Hardware, Storage & |
| |||||||
Apple, Inc., | 7,300 | 7,304 | ||||||
|
| |||||||
Trucking – 1.3% |
| |||||||
Penske Truck Leasing Co. L.P. and PTL Finance Corp.: |
| |||||||
3.125%, 5–11–15 (A) | 6,000 | 6,085 | ||||||
3.750%, 5–11–17 (A) | 10,350 | 10,882 | ||||||
Ryder System, Inc., | 4,650 | 4,696 | ||||||
|
| |||||||
21,663 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 2.0% |
| |||||||
America Movil S.A.B. de C.V., | 13,975 | 15,293 | ||||||
American Tower Corp., 5.900%, 11–1–21 | 14,500 | 16,226 |
CORPORATE DEBT SECURITIES (Continued) | Principal | Value | ||||||
Wireless Telecommunication Service (Continued) |
| |||||||
Crown Castle International Corp., | $ | 2,745 | $ | 2,718 | ||||
|
| |||||||
34,237 | ||||||||
|
| |||||||
TOTAL CORPORATE DEBT SECURITIES – 75.0% |
| $ | 1,295,005 | |||||
(Cost: $1,287,307) | ||||||||
MUNICIPAL |
| |||||||
Hawaii – 0.2% |
| |||||||
Cnty of Kauai, Taxable GO Bonds, Ser 2010A, | 2,600 | 2,722 | ||||||
|
| |||||||
Rhode Island – 0.3% |
| |||||||
Providence Hlth & Svc Oblig Group, Direct Oblig Notes, Ser 2009A, | 5,185 | 5,186 | ||||||
|
| |||||||
TOTAL MUNICIPAL |
| $ | 7,908 | |||||
(Cost: $7,785) | ||||||||
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS |
| |||||||
Agency Obligations – 2.0% |
| |||||||
Federal Home Loan Bank, | 1,194 | 1,262 | ||||||
Federal National Mortgage Association: | ||||||||
2.000%, 12–30–15 | 10,000 | 10,206 | ||||||
0.875%, 10–26–17 | 15,000 | 14,857 | ||||||
5.450%, 10–18–21 | 7,000 | 7,606 | ||||||
|
| |||||||
33,931 | ||||||||
|
| |||||||
Mortgage-Backed Obligations – 10.0% |
| |||||||
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | ||||||||
4.000%, 6–15–26 | 13,936 | 14,958 | ||||||
4.500%, 6–15–27 | 656 | 671 | ||||||
4.500%, 5–15–32 | 1,874 | 1,922 | ||||||
5.000%, 12–15–34 | 895 | 978 | ||||||
2.500%, 12–15–41 | 12,265 | 12,107 | ||||||
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | ||||||||
5.500%, 4–1–20 | 853 | 912 | ||||||
3.000%, 1–1–33 | 8,790 | 8,957 |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS (Continued) | Principal | Value | ||||||
Mortgage-Backed Obligations (Continued) |
| |||||||
Federal Home Loan Mortgage Corp. Fixed Rate Pass-Through Certificates: | ||||||||
3.000%, 8–1–28 | $ | 13,985 | $ | 14,379 | ||||
3.000%, 9–1–28 | 13,696 | 14,056 | ||||||
Federal National Mortgage Association Agency REMIC/CMO: | ||||||||
5.500%, 12–25–17 | 2,175 | 2,296 | ||||||
2.000%, 4–25–39 | 12,632 | 12,191 | ||||||
4.000%, 5–25–39 | 2,997 | 3,112 | ||||||
3.000%, 11–25–39 | 2,331 | 2,375 | ||||||
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | ||||||||
5.500%, 9–1–17 | 2,221 | 2,352 | ||||||
4.500%, 9–1–19 | 1,776 | 1,876 | ||||||
4.514%, 12–1–19 | 11,327 | 12,501 | ||||||
4.375%, 6–1–21 | 15,421 | 17,019 | ||||||
5.500%, 10–1–21 | 3,207 | 3,489 | ||||||
5.500%, 2–1–22 | 1,737 | 1,905 | ||||||
6.000%, 7–1–22 | 1,170 | 1,288 | ||||||
3.500%, 8–1–26 | 7,943 | 8,385 | ||||||
3.000%, 7–1–28 | 13,659 | 14,041 | ||||||
Government National Mortgage Association Agency REMIC/CMO: | ||||||||
2.500%, 9–20–40 | 9,184 | 9,226 | ||||||
2.000%, 3–16–42 | 11,940 | 11,632 | ||||||
|
| |||||||
172,628 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 12.0% |
| $ | 206,559 | |||||
(Cost: $207,836) | ||||||||
UNITED STATES GOVERNMENT OBLIGATIONS |
| |||||||
Treasury Obligations – 5.0% |
| |||||||
U.S. Treasury Notes: |
| |||||||
2.375%, 2–28–15 | 10,000 | 10,096 | ||||||
2.500%, 4–30–15 | 35,000 | 35,497 | ||||||
2.125%, 5–31–15 | 12,500 | 12,670 | ||||||
1.750%, 5–31–16 | 13,000 | 13,281 | ||||||
1.500%, 7–31–16 (B) | 15,000 | 15,265 | ||||||
|
| |||||||
86,809 | ||||||||
|
| |||||||
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 5.0% |
| $ | 86,809 | |||||
(Cost: $85,688) | ||||||||
SHORT-TERM SECURITIES |
| |||||||
Commercial Paper – 6.4% |
| |||||||
Army & Air Force Exchange Service: |
| |||||||
0.090%, 10–23–14 (C) | 5,000 | 5,000 |
72 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Limited-Term Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
0.080%, 10–27–14 (C) | $ | 2,000 | $ | 2,000 | ||||
0.140%, 11–25–14 (C) | 7,000 | 6,998 | ||||||
Becton Dickinson & Co., | 5,000 | 5,000 | ||||||
Bemis Co., Inc., | 6,325 | 6,324 | ||||||
BorgWarner, Inc.: |
| |||||||
0.240%, 10–9–14 (C) | 2,000 | 2,000 | ||||||
0.260%, 10–22–14 (C) | 5,000 | 4,999 | ||||||
CVS Caremark Corp., | 2,000 | 2,000 | ||||||
Danaher Corp., 0.090%, 10–9–14 (C) | 10,000 | 10,000 | ||||||
Diageo Capital plc (GTD by Diageo plc), | 6,605 | 6,605 | ||||||
DTE Electric Co., | 6,000 | 5,999 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | 10,000 | 9,999 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
General Mills, Inc., | $ | 15,000 | $ | 14,998 | ||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | 4,000 | 4,000 | ||||||
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | 4,500 | 4,499 | ||||||
Kellogg Co.: |
| |||||||
0.170%, 10–14–14 (C) | 4,000 | 4,000 | ||||||
0.170%, 10–15–14 (C) | 4,000 | 4,000 | ||||||
Kroger Co. (The), | 1,728 | 1,728 | ||||||
Virginia Electric and Power Co., | 10,000 | 10,000 | ||||||
|
| |||||||
110,149 | ||||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.1% |
| |||||||
Toyota Motor Credit Corp., | $ | 2,063 | $ | 2,063 | ||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 6.5% |
| $ | 112,212 | |||||
(Cost: $112,213) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.0% |
| $ | 1,708,493 | |||||
(Cost: $1,700,829) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.0% |
| 17,505 | ||||||
NET ASSETS – 100.0% |
| $ | 1,725,998 |
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, 2014, the total value of these securities amounted to $175,761 or 10.2% 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, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
The following futures contracts were outstanding at September 30, 2014 (contracts unrounded):
Description | Type | Expiration Date | Number of Contracts | Market Value | Unrealized Appreciation | |||||||||||
U.S. 10-Year Treasury Note | Short | 12–31–14 | 405 | $ | (50,479 | ) | $ | 296 | ||||||||
U.S. 2-Year Treasury Note | Short | 1–6–15 | 681 | (149,033 | ) | 9 | ||||||||||
U.S. 5-Year Treasury Note | Short | 1–6–15 | 2,041 | (241,364 | ) | 603 | ||||||||||
|
| |||||||||||||||
$ | (440,876 | ) | $ | 908 | ||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | — | $ | 1,295,005 | $ | — | ||||||
Municipal Bonds | — | 7,908 | — | |||||||||
United States Government Agency Obligations | — | 205,297 | 1,262 | |||||||||
United States Government Obligations | — | 86,809 | — | |||||||||
Short-Term Securities | — | 112,212 | — | |||||||||
Total | $ | — | $ | 1,707,231 | $ | 1,262 | ||||||
Futures Contracts | $ | 908 | $ | — | $ | — |
During the period ended September 30, 2014, securities totaling $28,544 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, and securities totaling $1,352 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.
2014 | SEMIANNUAL REPORT | 73 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Ivy Managed International Opportunities Fund
Ivy Emerging Markets Equity Fund, Class I | 40.0% | |||
Ivy International Core Equity Fund, Class I | 20.4% | |||
Ivy International Growth Fund, Class I | 19.9% | |||
Ivy Global Income Allocation Fund, Class I | 10.1% | |||
Ivy European Opportunities Fund, Class I | 9.5% | |||
Cash and Cash Equivalents | 0.1% |
74 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Managed International Opportunities Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
AFFILIATED MUTUAL FUNDS | Shares | Value | ||||||
Ivy Emerging Markets Equity Fund, Class I | 6,231 | $ | 98,203 | |||||
Ivy European Opportunities Fund, Class I | 803 | 23,264 | ||||||
Ivy Global Income Allocation Fund, Class I | 1,587 | 24,749 | ||||||
Ivy International Core Equity Fund, Class I | 2,568 | 50,102 | ||||||
Ivy International Growth Fund, Class I | 1,178 | 48,953 | ||||||
|
| |||||||
TOTAL AFFILIATED |
| $ | 245,271 | |||||
(Cost: $175,305) |
SHORT-TERM SECURITIES – 0.2% | Principal | Value | ||||||
Master Note |
| |||||||
Toyota Motor Credit Corp., | $ | 414 | $ | 414 | ||||
|
| |||||||
(Cost: $414) | ||||||||
TOTAL INVESTMENT |
| $ | 245,685 | |||||
(Cost: $175,719) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%) |
| (162 | ) | |||||
NET ASSETS – 100.0% |
| $ | 245,523 |
Notes to Schedule of Investments
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 245,271 | $ | — | $ | — | ||||||
Short-Term Securities | — | 414 | — | |||||||||
Total | $ | 245,271 | $ | 414 | $ | — |
As of September 30, 2014, there were no transfers between Level 1 and 2 during the period.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 75 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.4% | |||
Health Care | 27.9% | |||
Information Technology | 19.4% | |||
Consumer Discretionary | 15.9% | |||
Industrials | 13.3% | |||
Financials | 6.8% | |||
Energy | 6.2% | |||
Consumer Staples | 3.4% | |||
Telecommunication Services | 2.5% | |||
Cash and Cash Equivalents | 4.6% |
Lipper Rankings
Category: Lipper Small-Cap Growth Funds | Rank | Percentile | ||
1 Year | 395/526 | 75 | ||
3 Year | 125/461 | 28 | ||
5 Year | 243/410 | 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 | |||
Move, Inc. | Information Technology | |||
Quidel Corp. | Health Care | |||
Rentrak Corp. | Consumer Discretionary | |||
Callidus Software, Inc. | Information Technology | |||
Repligen Corp. | Health Care | |||
Spectranetics Corp. (The) | Health Care | |||
Enanta Pharmaceuticals, Inc. | Health Care | |||
RigNet, Inc. | Energy | |||
NCI Building Systems, Inc. | Industrials | |||
ZS Pharma, Inc. | Health Care |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
76 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Micro Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Alternative Carriers – 0.9% |
| |||||||
inContact, Inc. (A) | 227 | $ | 1,975 | |||||
|
| |||||||
Apparel Retail – 0.9% |
| |||||||
Christopher & Banks Corp. (A) | 214 | 2,117 | ||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 1.3% |
| |||||||
Movado Group, Inc. | 89 | 2,939 | ||||||
|
| |||||||
Application Software – 3.1% |
| |||||||
Callidus Software, Inc. (A) | 352 | 4,228 | ||||||
Datawatch Corp. (A) | 107 | 1,099 | ||||||
Materialise N.V. ADR (A) | 109 | 1,218 | ||||||
Sapiens International Corp. N.V. (A) | 79 | 585 | ||||||
|
| |||||||
7,130 | ||||||||
|
| |||||||
Asset Management & Custody Banks – 1.8% |
| |||||||
Actua Corp. (A) | 125 | 1,994 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 137 | 1,886 | ||||||
|
| |||||||
3,880 | ||||||||
|
| |||||||
Biotechnology – 10.9% |
| |||||||
Acceleron Pharma, Inc. (A) | 49 | 1,488 | ||||||
Ardelyx, Inc. (A) | 115 | 1,628 | ||||||
Argos Therapeutics, Inc. (A) | 139 | 1,395 | ||||||
Auspex Pharmaceuticals, Inc. (A) | 124 | 3,178 | ||||||
Cara Therapeutics, Inc. (A) | 170 | 1,424 | ||||||
Concert Pharmaceuticals, Inc. (A) | 174 | 2,192 | ||||||
Enanta Pharmaceuticals, Inc. (A) | 94 | 3,704 | ||||||
NewLink Genetics Corp. (A) | 75 | 1,615 | ||||||
Repligen Corp. (A) | 198 | 3,932 | ||||||
Synergy Pharmaceuticals, Inc. (A) | 249 | 693 | ||||||
Vanda Pharmaceuticals, Inc. (A) | 189 | 1,959 | ||||||
Verastem, Inc. (A) | 174 | 1,486 | ||||||
|
| |||||||
24,694 | ||||||||
|
| |||||||
Broadcasting – 0.5% |
| |||||||
Entravision Communications Corp. | 261 | 1,032 | ||||||
|
| |||||||
Building Products – 2.5% |
| |||||||
Builders FirstSource, Inc. (A) | 397 | 2,166 | ||||||
NCI Building Systems, Inc. (A) | 176 | 3,422 | ||||||
|
| |||||||
5,588 | ||||||||
|
| |||||||
Communications Equipment – 2.0% |
| |||||||
Applied Optoelectronics, Inc. (A) | 36 | 580 | ||||||
Ruckus Wireless, Inc. (A) | 174 | 2,322 | ||||||
ShoreTel, Inc. (A) | 249 | 1,659 | ||||||
|
| |||||||
4,561 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Construction & Engineering – 0.8% |
| |||||||
Orion Marine Group, Inc. (A) | 192 | $ | 1,912 | |||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Commercial Vehicle Group, Inc. (A) | 101 | 627 | ||||||
Wabash National Corp. (A) | 208 | 2,766 | ||||||
|
| |||||||
3,393 | ||||||||
|
| |||||||
Diversified Banks – 1.0% |
| |||||||
Square 1 Financial, Inc., Class A (A) | 121 | 2,333 | ||||||
|
| |||||||
Education Services – 1.0% |
| |||||||
2U, Inc. (A) | 147 | 2,285 | ||||||
|
| |||||||
Electrical Components & Equipment – 2.6% |
| |||||||
Enphase Energy, Inc. (A) | 153 | 2,297 | ||||||
LSI Industries, Inc. | 138 | 837 | ||||||
Orion Energy Systems, Inc. (A) | 275 | 1,472 | ||||||
TCP International Holdings Ltd. (A) | 182 | 1,383 | ||||||
|
| |||||||
5,989 | ||||||||
|
| |||||||
Electronic Equipment & Instruments – 0.8% |
| |||||||
CUI Global, Inc. (A) | 236 | 1,707 | ||||||
|
| |||||||
Food Distributors – 0.5% |
| |||||||
Chefs’ Warehouse Holdings LLC (The) (A) | 73 | 1,187 | ||||||
|
| |||||||
Food Retail – 0.8% |
| |||||||
Natural Grocers by Vitamin Cottage, Inc. (A) | 110 | 1,789 | ||||||
|
| |||||||
Health Care Equipment – 4.4% |
| |||||||
Cardiovascular Systems, Inc. (A) | 98 | 2,318 | ||||||
K2M Group Holdings, Inc. (A) | 115 | 1,654 | ||||||
Oxford Immunotec Global plc (A) | 139 | 2,115 | ||||||
Rockwell Medical, Inc. (A) | 179 | 1,636 | ||||||
Sunshine Heart, Inc. (A) | 203 | 1,145 | ||||||
Veracyte, Inc. (A) | 107 | 1,042 | ||||||
|
| |||||||
9,910 | ||||||||
|
| |||||||
Health Care Facilities – 1.0% |
| |||||||
Surgical Care Affiliates, Inc. (A) | 84 | 2,235 | ||||||
|
| |||||||
Health Care Supplies – 4.0% |
| |||||||
Quidel Corp. (A) | 168 | 4,512 | ||||||
Spectranetics Corp. (The) (A) | 141 | 3,754 | ||||||
TearLab Corp. (A) | 250 | 849 | ||||||
|
| |||||||
9,115 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Technology – 2.1% |
| |||||||
HealthStream, Inc. (A) | 75 | $ | 1,806 | |||||
Imprivata, Inc. (A) | 185 | 2,875 | ||||||
|
| |||||||
4,681 | ||||||||
|
| |||||||
Home Entertainment Software – 0.7% |
| |||||||
Glu Mobile, Inc. (A) | 292 | 1,508 | ||||||
|
| |||||||
Homebuilding – 0.7% |
| |||||||
M/I Homes, Inc. (A) | 81 | 1,601 | ||||||
|
| |||||||
Homefurnishing Retail – 0.7% |
| |||||||
Kirkland’s, Inc. (A) | 98 | 1,571 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 0.5% |
| |||||||
Morgans Hotel Group Co. (A) | 142 | 1,149 | ||||||
|
| |||||||
Integrated Telecommunication Services – 0.9% |
| |||||||
Global Telecom & Technology, Inc. (A) | 187 | 2,230 | ||||||
|
| |||||||
Internet Software & Services – 7.1% |
| |||||||
Amber Road, Inc. (A) | 179 | 3,100 | ||||||
Boingo Wireless, Inc. (A) | 135 | 959 | ||||||
Borderfree, Inc. (A) | 162 | 2,083 | ||||||
ChannelAdvisor Corp. (A) | 62 | 1,023 | ||||||
Move, Inc. (A) | 241 | 5,052 | ||||||
Q2 Holdings, Inc. (A) | 85 | 1,189 | ||||||
SPS Commerce, Inc. (A) | 52 | 2,774 | ||||||
|
| |||||||
16,180 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.2% |
| |||||||
Marcus & Millichap, Inc. (A) | 89 | 2,702 | ||||||
|
| |||||||
IT Consulting & Other Services – 1.0% |
| |||||||
Virtusa Corp. (A) | 66 | 2,336 | ||||||
|
| |||||||
Leisure Products – 3.2% |
| |||||||
Arctic Cat, Inc. | 67 | 2,340 | ||||||
Malibu Boats, Inc., Class A (A) | 115 | 2,137 | ||||||
Nautilus Group, Inc. (The) (A) | 227 | 2,720 | ||||||
|
| |||||||
7,197 | ||||||||
|
| |||||||
Marine – 0.7% |
| |||||||
Baltic Trading Ltd. | 390 | 1,613 | ||||||
|
| |||||||
Movies & Entertainment – 2.0% |
| |||||||
Rentrak Corp. (A) | 73 | 4,418 | ||||||
|
| |||||||
Office REITs – 0.7% |
| |||||||
City Office REIT, Inc. | 117 | 1,585 | ||||||
|
| |||||||
Office Services & Supplies – 2.4% |
| |||||||
ARC Document Solutions, Inc. (A) | 386 | 3,123 | ||||||
CyrusOne, Inc. | 97 | 2,334 | ||||||
|
| |||||||
5,457 | ||||||||
|
| |||||||
Oil & Gas Drilling – 1.2% |
| |||||||
Pioneer Drilling Co. (A) | 186 | 2,605 | ||||||
|
|
2014 | SEMIANNUAL REPORT | 77 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Micro Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Oil & Gas Equipment & Services – 3.4% |
| |||||||
Basic Energy Services, Inc. (A) | 104 | $ | 2,247 | |||||
RigNet, Inc. (A) | 87 | 3,515 | ||||||
Willbros Group, Inc. (A) | 257 | 2,137 | ||||||
|
| |||||||
7,899 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 1.6% |
| |||||||
Emerald Oil, Inc. (A) | 319 | 1,961 | ||||||
Triangle Petroleum Corp. (A) | 140 | 1,546 | ||||||
|
| |||||||
3,507 | ||||||||
|
| |||||||
Packaged Foods & Meats – 0.9% |
| |||||||
Inventure Foods, Inc. (A) | 158 | 2,046 | ||||||
|
| |||||||
Personal Products – 1.2% |
| |||||||
Inter Parfums, Inc. | 101 | 2,775 | ||||||
|
| |||||||
Pharmaceuticals – 5.5% |
| |||||||
Aerie Pharmaceuticals, Inc. (A) | 157 | 3,242 | ||||||
Intersect ENT, Inc. (A) | 117 | 1,809 | ||||||
Intra-Cellular Therapies, Inc. (A) | 106 | 1,453 | ||||||
Pernix Therapeutics Holdings, Inc. (A) | 333 | 2,560 | ||||||
ZS Pharma, Inc. (A) | 85 | 3,315 | ||||||
|
| |||||||
12,379 | ||||||||
|
| |||||||
Restaurants – 4.1% |
| |||||||
Chuy’s Holdings, Inc. (A) | 94 | 2,949 | ||||||
Del Frisco’s Restaurant Group, Inc. (A) | 130 | 2,482 | ||||||
Red Robin Gourmet Burgers, Inc. (A) | 32 | 1,832 | ||||||
Zoe’s Kitchen, Inc. (A) | 70 | 2,138 | ||||||
|
| |||||||
9,401 | ||||||||
|
| |||||||
Semiconductor Equipment – 1.1% |
| |||||||
Nanometrics, Inc. (A) | 87 | 1,306 | ||||||
Ultra Clean Holdings, Inc. (A) | 127 | 1,132 | ||||||
|
| |||||||
2,438 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductors – 0.5% |
| |||||||
Exar Corp. (A) | 119 | $ | 1,063 | |||||
|
| |||||||
Specialized REITs – 1.0% |
| |||||||
Ashford Hospitality Prime, Inc. | 147 | 2,239 | ||||||
|
| |||||||
Specialty Stores – 1.0% |
| |||||||
Build-A-Bear Workshop, Inc. (A) | 176 | 2,296 | ||||||
|
| |||||||
Systems Software – 2.5% |
| |||||||
A10 Networks, Inc. (A) | 141 | 1,284 | ||||||
CyberArk Software Ltd. (A) | 12 | 368 | ||||||
Mavenir Systems, Inc. (A) | 141 | 1,766 | ||||||
TubeMogul, Inc. (A) | 187 | 2,149 | ||||||
|
| |||||||
5,567 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 0.6% |
| |||||||
Datalink Corp. (A) | 130 | 1,377 | ||||||
|
| |||||||
Thrifts & Mortgage Finance – 0.4% |
| |||||||
PennyMac Financial Services, Inc., Class A (A) | 67 | 979 | ||||||
|
| |||||||
Trading Companies & Distributors – 1.0% |
| |||||||
Stock Building Supply Holdings, Inc. (A) | 138 | 2,160 | ||||||
|
| |||||||
Trucking – 1.8% |
| |||||||
Celadon Group, Inc. | 43 | 832 | ||||||
Marten Transport Ltd. | 94 | 1,679 | ||||||
Roadrunner Transportation Systems, Inc. (A) | 69 | 1,573 | ||||||
|
| |||||||
4,084 | ||||||||
|
| |||||||
Wireless Telecommunication Service – 0.7% |
| |||||||
RingCentral, Inc., Class A (A) | 122 | 1,551 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 214,365 | |||||
(Cost: $196,478) |
INVESTMENT FUNDS | Shares | Value | ||||||
Registered Investment Companies – 0.7% |
| |||||||
iShares Russell 2000 Growth Index Fund | 12 | $ | 1,556 | |||||
|
| |||||||
TOTAL INVESTMENT |
| $ | 1,556 | |||||
(Cost: $1,589) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 2.8% |
| |||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | $ | 5,000 | 5,000 | |||||
Sonoco Products Co., | 1,380 | 1,380 | ||||||
|
| |||||||
6,380 | ||||||||
|
| |||||||
Master Note – 1.6% |
| |||||||
Toyota Motor Credit Corp., | 3,531 | 3,531 | ||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 4.4% |
| $ | 9,911 | |||||
(Cost: $9,911) | ||||||||
TOTAL INVESTMENT SECURITIES – 99.8% |
| $ | 225,832 | |||||
(Cost: $207,978) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% |
| 415 | ||||||
NET ASSETS – 100.0% |
| $ | 226,247 |
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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
78 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Micro Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | 214,365 | $ | — | $ | — | ||||||
Investment Funds | 1,556 | — | — | |||||||||
Short-Term Securities | — | 9,911 | — | |||||||||
Total | $ | 215,921 | $ | 9,911 | $ | — |
As of September 30, 2014, 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
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 79 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 98.1% | |||
Consumer Discretionary | 22.6% | |||
Information Technology | 19.0% | |||
Health Care | 17.9% | |||
Industrials | 16.2% | |||
Financials | 8.4% | |||
Consumer Staples | 6.2% | |||
Energy | 6.1% | |||
Materials | 1.7% | |||
Cash and Cash Equivalents | 1.9% |
Lipper Rankings
Category: Lipper Mid-Cap Growth Funds | Rank | Percentile | ||
1 Year | 264/421 | 63 | ||
3 Year | 254/370 | 69 | ||
5 Year | 187/332 | 57 | ||
10 Year | 44/226 | 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.
Top 10 Equity Holdings
Company | Sector | |||
Northern Trust Corp. | Financials | |||
Electronic Arts, Inc. | Information Technology | |||
Intuitive Surgical, Inc. | Health Care | |||
Microchip Technology, Inc. | Information Technology | |||
Mead Johnson Nutrition Co. | Consumer Staples | |||
Fastenal Co. | Industrials | |||
Ulta Salon, Cosmetics & Fragrance, Inc. | Consumer Discretionary | |||
LKQ Corp. | Consumer Discretionary | |||
Ross Stores, Inc. | Consumer Discretionary | |||
Hain Celestial Group, Inc. (The) | Consumer Staples |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
80 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Mid Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Air Freight & Logistics – 2.1% |
| |||||||
Expeditors International of Washington, Inc. | 2,445 | $ | 99,200 | |||||
|
| |||||||
Apparel Retail – 6.1% |
| |||||||
DSW, Inc., Class A | 1,516 | 45,652 | ||||||
Limited Brands, Inc. | 1,047 | 70,123 | ||||||
Ross Stores, Inc. | 1,317 | 99,503 | ||||||
Urban Outfitters, Inc. (A) | 2,178 | 79,932 | ||||||
|
| |||||||
295,210 | ||||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 2.6% |
| |||||||
Burberry Group plc (B) | 2,268 | 55,556 | ||||||
Carter’s, Inc. | 935 | 72,479 | ||||||
|
| |||||||
128,035 | ||||||||
|
| |||||||
Application Software – 2.2% |
| |||||||
ANSYS, Inc. (A) | 738 | 55,879 | ||||||
Solera Holdings, Inc. | 887 | 49,991 | ||||||
|
| |||||||
105,870 | ||||||||
|
| |||||||
Asset Management & Custody Banks – 3.4% |
| |||||||
Northern Trust Corp. | 1,947 | 132,453 | ||||||
Oaktree Capital Group LLC | 646 | 33,013 | ||||||
|
| |||||||
165,466 | ||||||||
|
| |||||||
Auto Parts & Equipment – 1.2% |
| |||||||
Gentex Corp. | 2,194 | 58,721 | ||||||
|
| |||||||
Biotechnology – 4.7% |
| |||||||
ACADIA Pharmaceuticals, Inc. (A) | 1,030 | 25,497 | ||||||
Alkermes plc (A) | 1,056 | 45,263 | ||||||
BioMarin Pharmaceutical, Inc. (A) | 840 | 60,580 | ||||||
Incyte Corp. (A) | 525 | 25,765 | ||||||
Medivation, Inc. (A) | 740 | 73,147 | ||||||
|
| |||||||
230,252 | ||||||||
|
| |||||||
Building Products – 2.0% |
| |||||||
Fortune Brands Home & Security, Inc. | 2,306 | 94,786 | ||||||
|
| |||||||
Communications Equipment – 1.9% |
| |||||||
F5 Networks, Inc. (A) | 774 | 91,873 | ||||||
|
| |||||||
Construction & Engineering – 0.9% |
| |||||||
Jacobs Engineering Group, Inc. (A) | 933 | 45,527 | ||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Allison Transmission Holdings, Inc. | 1,013 | 28,870 | ||||||
Joy Global, Inc. | 1,201 | 65,521 | ||||||
|
| |||||||
94,391 | ||||||||
|
| |||||||
Data Processing & Outsourced Services –3.1% |
| |||||||
Alliance Data Systems Corp. (A) | 250 | 62,039 | ||||||
Vantiv, Inc., Class A (A) | 2,686 | 83,004 | ||||||
|
| |||||||
145,043 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Department Stores – 1.5% |
| |||||||
Nordstrom, Inc. | 1,080 | $ | 73,864 | |||||
|
| |||||||
Distillers & Vintners – 1.0% |
| |||||||
Brown-Forman Corp., Class B | 535 | 48,258 | ||||||
|
| |||||||
Distributors – 2.1% |
| |||||||
LKQ Corp. (A) | 3,748 | 99,651 | ||||||
|
| |||||||
Electrical Components & |
| |||||||
Polypore International, Inc. (A) | 1,722 | 67,004 | ||||||
|
| |||||||
Electronic Equipment & |
| |||||||
FLIR Systems, Inc. | 1,809 | 56,682 | ||||||
|
| |||||||
Environmental & Facilities |
| |||||||
Stericycle, Inc. (A) | 625 | 72,826 | ||||||
|
| |||||||
Fertilizers & Agricultural |
| |||||||
Scotts Miracle-Gro Co. (The) | 845 | 46,494 | ||||||
|
| |||||||
Health Care Distributors – 1.5% |
| |||||||
Henry Schein, Inc. (A) | 616 | 71,789 | ||||||
|
| |||||||
Health Care Equipment – 4.2% |
| |||||||
Intuitive Surgical, Inc. (A) | 264 | 122,073 | ||||||
Varian Medical Systems, Inc. (A) | 1,067 | 85,497 | ||||||
|
| |||||||
207,570 | ||||||||
|
| |||||||
Health Care Facilities – 0.9% |
| |||||||
Acadia Healthcare Co., Inc. (A) | 900 | 43,665 | ||||||
|
| |||||||
Health Care Supplies – 2.8% |
| |||||||
Align Technology, Inc. (A) | 1,205 | 62,253 | ||||||
DENTSPLY International, Inc. | 1,560 | 71,150 | ||||||
|
| |||||||
133,403 | ||||||||
|
| |||||||
Health Care Technology – 0.8% |
| |||||||
Cerner Corp. (A) | 653 | 38,925 | ||||||
|
| |||||||
Home Entertainment Software – 2.7% |
| |||||||
Electronic Arts, Inc. (A) | 3,682 | 131,112 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 1.3% |
| |||||||
Norwegian Cruise Line Holdings Ltd. (A) | 1,708 | 61,535 | ||||||
|
| |||||||
Industrial Machinery – 1.8% |
| |||||||
Flowserve Corp. | 1,212 | 85,477 | ||||||
|
| |||||||
Internet Software & Services – 2.9% |
| |||||||
Pandora Media, Inc. (A) | 3,824 | 92,393 | ||||||
WebMD Health Corp., Class A (A) | 1,156 | 48,323 | ||||||
|
| |||||||
140,716 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
IT Consulting & Other Services – 1.5% |
| |||||||
Teradata Corp. (A) | 1,768 | $ | 74,121 | |||||
|
| |||||||
Leisure Products – 1.6% |
| |||||||
Mattel, Inc. | 2,468 | 75,652 | ||||||
|
| |||||||
Managed Health Care – 1.3% |
| |||||||
Humana, Inc. | 465 | 60,533 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 1.0% |
| |||||||
Dril-Quip, Inc. (A) | 527 | 47,127 | ||||||
|
| |||||||
Oil & Gas Exploration & |
| |||||||
Cabot Oil & Gas Corp. | 2,027 | 66,269 | ||||||
Continental Resources, Inc. (A) | 1,264 | 84,033 | ||||||
Oasis Petroleum LLC (A) | 920 | 38,481 | ||||||
Southwestern Energy Co. (A) | 1,749 | 61,127 | ||||||
|
| |||||||
249,910 | ||||||||
|
| |||||||
Packaged Foods & Meats – 4.3% |
| |||||||
Hain Celestial Group, Inc. (The) (A) | 971 | 99,400 | ||||||
Mead Johnson Nutrition Co. | 1,139 | 109,586 | ||||||
|
| |||||||
208,986 | ||||||||
|
| |||||||
Personal Products – 0.9% |
| |||||||
Coty, Inc., Class A | 2,716 | 44,956 | ||||||
|
| |||||||
Pharmaceuticals – 1.7% |
| |||||||
Zoetis, Inc. | 2,192 | 81,007 | ||||||
|
| |||||||
Regional Banks – 4.7% |
| |||||||
First Republic Bank | 1,883 | 92,985 | ||||||
Signature Bank (A) | 866 | 96,992 | ||||||
UMB Financial Corp. | 658 | 35,876 | ||||||
|
| |||||||
225,853 | ||||||||
|
| |||||||
Research & Consulting |
| |||||||
CoStar Group, Inc. (A) | 312 | 48,545 | ||||||
Verisk Analytics, Inc., Class A (A) | 1,210 | 73,701 | ||||||
|
| |||||||
122,246 | ||||||||
|
| |||||||
Restaurants – 3.0% |
| |||||||
Dunkin’ Brands Group, Inc. | 1,904 | 85,321 | ||||||
Panera Bread Co., Class A (A) | 362 | 58,921 | ||||||
|
| |||||||
144,242 | ||||||||
|
| |||||||
Semiconductors – 2.4% |
| |||||||
Microchip Technology, Inc. | 2,428 | 114,686 | ||||||
|
| |||||||
Specialized Finance – 0.3% |
| |||||||
CME Group, Inc. | 178 | 14,240 | ||||||
|
| |||||||
Specialty Chemicals – 0.7% |
| |||||||
Valspar Corp. (The) | 446 | 35,216 | ||||||
|
|
2014 | SEMIANNUAL REPORT | 81 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Mid Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Specialty Stores – 3.2% |
| |||||||
Tiffany & Co. | 543 | $ | 52,295 | |||||
Ulta Salon, Cosmetics & Fragrance, Inc. (A) | 859 | 101,565 | ||||||
|
| |||||||
153,860 | ||||||||
|
| |||||||
Systems Software – 1.1% |
| |||||||
ServiceNow, Inc. (A) | 885 | 52,017 | ||||||
|
| |||||||
Trading Companies & Distributors – 2.1% |
| |||||||
Fastenal Co. | 2,330 | 104,636 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 4,742,633 | |||||
(Cost: $4,041,348) |
| |||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 2.4% |
| |||||||
Air Products and Chemicals, Inc., | $ | 3,000 | 3,000 | |||||
Army & Air Force Exchange Service, | 4,000 | 4,000 | ||||||
Baxter International, Inc., | 5,000 | 5,000 | ||||||
BMW U.S. Capital LLC (GTD by BMW AG), | 10,000 | 9,999 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
Clorox Co. (The), | $ | 7,700 | $ | 7,700 | ||||
CVS Caremark Corp., | 5,592 | 5,592 | ||||||
Diageo Capital plc (GTD by Diageo plc), | 2,000 | 2,000 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | 4,000 | 3,999 | ||||||
General Mills, Inc.: | ||||||||
0.170%, 10–6–14 (C) | 10,000 | 10,000 | ||||||
0.230%, 10–27–14 (C) | 13,050 | 13,047 | ||||||
Illinois Tool Works, Inc., | 3,000 | 3,000 | ||||||
John Deere Canada ULC (GTD by Deere & Co.), | 10,000 | 10,000 | ||||||
Kellogg Co., | 10,000 | 10,000 | ||||||
McCormick & Co., Inc., | 10,000 | 9,999 | ||||||
PACCAR Financial Corp. (GTD by PACCAR, Inc.), | 10,000 | 9,999 | ||||||
St. Jude Medical, Inc., | 9,750 | 9,750 | ||||||
|
| |||||||
117,085 | ||||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
United States Government Agency |
| |||||||
Overseas Private Investment Corp. (GTD by U.S. Government): | ||||||||
0.110%, 10–7–14 (D) | $ | 4,985 | $ | 4,986 | ||||
0.110%, 10–7–14 (D) | 910 | 910 | ||||||
|
| |||||||
5,896 | ||||||||
|
| |||||||
TOTAL SHORT-TERM SECURITIES – 2.5% |
| $ | 122,981 | |||||
(Cost: $122,982) | ||||||||
TOTAL INVESTMENT SECURITIES – 100.6% |
| $ | 4,865,614 | |||||
(Cost: $4,164,330) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.6%) |
| (27,503 | ) | |||||
NET ASSETS – 100.0% |
| $ | 4,838,111 |
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) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
The following written options were outstanding at September 30, 2014 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Expiration Month | Exercise Price | Premium Received | Value | |||||||||||||||||
Pandora Media, Inc. | Citibank N.A. | Put | 4,095 | October 2014 | $ | 23.00 | $ | 303 | $ | (233 | ) | |||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 4,742,633 | $ | — | $ | — | ||||||
Short-Term Securities | — | 122,981 | — | |||||||||
Total | $ | 4,742,633 | $ | 122,981 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | — | $ | 233 | $ | — |
As of September 30, 2014, there were no transfers between Level 1 and 2 during the period.
The following acronym is used throughout this schedule:
GTD = Guaranteed
OTC = Over The Counter
See Accompanying Notes to Financial Statements.
82 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Corporate Obligations | 69.5% | |||
Notes | 29.8% | |||
Commercial Paper | 27.3% | |||
Certificate Of Deposit | 12.4% | |||
Municipal Obligations | 25.5% | |||
United States Government and Government Agency Obligations | 4.9% | |||
Cash and Other Assets, Net of Liabilities | 0.1% |
Lipper Rankings
Category: Lipper Money Market Funds | Rank | Percentile | ||
1 Year | 29/218 | 14 | ||
3 Year | 32/211 | 16 | ||
5 Year | 23/197 | 12 | ||
10 Year | 82/168 | 49 |
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.
2014 | SEMIANNUAL REPORT | 83 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Money Market Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
CORPORATE OBLIGATIONS | Principal | Value | ||||||
Certificate Of Deposit |
| |||||||
Banco del Estado de Chile, | $ | 250 | $ | 250 | ||||
Bank of America N.A.: | ||||||||
0.200%, 11–12–14 | 1,600 | 1,600 | ||||||
0.200%, 12–16–14 | 2,500 | 2,500 | ||||||
0.200%, 1–22–15 | 3,700 | 3,700 | ||||||
Citibank N.A.: | ||||||||
0.170%, 10–1–14 | 1,000 | 1,000 | ||||||
0.190%, 11–24–14 | 1,250 | 1,250 | ||||||
0.180%, 12–8–14 | 5,750 | 5,750 | ||||||
JPMorgan Chase Bank N.A., | 1,000 | 1,000 | ||||||
Toyota Motor Credit Corp., | 4,000 | 4,000 | ||||||
|
| |||||||
Total Certificate Of Deposit – 12.4% |
| 21,050 | ||||||
Commercial Paper |
| |||||||
Corporacion Andina de Fomento: | ||||||||
0.150%, 10–9–14 (B) | 1,000 | 1,000 | ||||||
0.150%, 10–14–14 (B) | 750 | 750 | ||||||
0.140%, 11–17–14 (B) | 1,000 | 1,000 | ||||||
Essilor International S.A., | 3,200 | 3,199 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc): | ||||||||
0.140%, 10–2–14 (B) | 1,500 | 1,500 | ||||||
0.130%, 10–28–14 (B) | 4,250 | 4,249 | ||||||
ICICI Bank Ltd. (GTD by Wells Fargo Bank N.A.): | ||||||||
0.190%, 10–7–14 (B) | 750 | 750 | ||||||
0.180%, 10–27–14 (B) | 3,150 | 3,149 | ||||||
0.190%, 11–3–14 (B) | 2,300 | 2,299 | ||||||
0.190%, 11–4–14 (B) | 350 | 350 | ||||||
0.210%, 11–26–14 (B) | 400 | 400 | ||||||
0.430%, 12–16–14 (B) | 750 | 750 | ||||||
J.M. Smucker Co. (The), | 825 | 825 | ||||||
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia), | 4,000 | 3,999 | ||||||
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia): | ||||||||
0.160%, 10–15–14 (B) | 1,000 | 1,000 | ||||||
0.190%, 10–31–14 (B) | 1,000 | 1,000 | ||||||
River Fuel Trust #1 (GTD by Bank of Nova Scotia), | 2,438 | 2,438 | ||||||
Sonoco Products Co., | 772 | 772 | ||||||
St. Jude Medical, Inc.: | ||||||||
0.160%, 10–2–14 (B) | 500 | 500 | ||||||
0.170%, 10–6–14 (B) | 1,250 | 1,250 | ||||||
0.210%, 10–24–14 (B) | 1,500 | 1,500 | ||||||
0.210%, 11–20–14 (B) | 2,500 | 2,499 | ||||||
0.250%, 12–17–14 (B) | 2,600 | 2,599 | ||||||
Wisconsin Electric Power Co.: |
| |||||||
0.160%, 10–1–14 (B) | 950 | 950 | ||||||
0.170%, 10–2–14 (B) | 500 | 500 | ||||||
0.170%, 10–6–14 (B) | 2,850 | 2,850 |
CORPORATE OBLIGATIONS (Continued) | Principal | Value | ||||||
Commercial Paper (Continued) |
| |||||||
Wisconsin Gas LLC: | ||||||||
0.110%, 10–2–14 (B) | $ | 3,250 | $ | 3,250 | ||||
0.110%, 10–3–14 (B) | 800 | 800 | ||||||
|
| |||||||
Total Commercial Paper – 27.3% |
| 46,128 | ||||||
Notes |
| |||||||
American Honda Finance Corp.: | ||||||||
0.230%, 12–5–14 (A) | 6,650 | 6,650 | ||||||
3.500%, 3–16–15 | 250 | 254 | ||||||
Banco del Estado de Chile: | ||||||||
0.320%, 10–1–14 (A) | 2,000 | 2,000 | ||||||
0.350%, 10–22–14 (A) | 4,400 | 4,400 | ||||||
0.380%, 12–21–14 (A) | 1,700 | 1,700 | ||||||
Bank of Nova Scotia (The): | ||||||||
0.230%, 10–1–14 (A) | 1,450 | 1,450 | ||||||
0.240%, 10–5–14 (A) | 2,000 | 2,000 | ||||||
0.220%, 10–23–14 (A) | 2,000 | 2,000 | ||||||
0.220%, 10–23–14 (A) | 1,400 | 1,400 | ||||||
3.400%, 1–22–15 | 1,356 | 1,369 | ||||||
Baxter International, Inc., | 2,050 | 2,051 | ||||||
BHP Billiton Finance (USA) Ltd., | 1,140 | 1,143 | ||||||
BHP Billiton Finance (USA) Ltd. (GTD by BHP Billiton Ltd.), | 1,747 | 1,749 | ||||||
Caterpillar Financial Services Corp.: | ||||||||
1.125%, 12–15–14 | 570 | 571 | ||||||
1.050%, 3–26–15 | 250 | 251 | ||||||
Caterpillar, Inc., | 713 | 716 | ||||||
General Electric Capital Corp.: | ||||||||
0.600%, 10–1–14 (A) | 500 | 501 | ||||||
1.000%, 10–30–14 (A) | 500 | 501 | ||||||
1.000%, 12–23–14 (A) | 800 | 806 | ||||||
John Deere Capital Corp., | 300 | 300 | ||||||
JPMorgan Chase & Co.: | ||||||||
0.350%, 10–22–14 (A) | 1,250 | 1,250 | ||||||
0.350%, 12–8–14 (A) | 3,550 | 3,550 | ||||||
Rabobank Nederland: | ||||||||
0.250%, 10–13–14 (A) | 2,200 | 2,200 | ||||||
0.280%, 11–12–14 (A) | 1,000 | 1,000 | ||||||
Toyota Motor Credit Corp.: | ||||||||
0.400%, 10–23–14 (A) | 500 | 501 | ||||||
0.400%, 12–5–14 (A) | 250 | 250 | ||||||
U.S. Bank National Association, | 2,000 | 2,001 | ||||||
Wells Fargo & Co., | 1,000 | 1,003 | ||||||
Wells Fargo Bank N.A.: | ||||||||
0.280%, 10–20–14 (A) | 1,600 | 1,600 | ||||||
0.320%, 10–20–14 (A) | 2,000 | 2,000 | ||||||
0.320%, 12–10–14 (A) | 1,500 | 1,500 |
CORPORATE OBLIGATIONS (Continued) | Principal | Value | ||||||
Notes (Continued) |
| |||||||
Wells Fargo Bank N.A. (Continued) |
| |||||||
0.320%, 12–15–14 (A) | $ | 1,800 | $ | 1,800 | ||||
|
| |||||||
Total Notes – 29.8% |
| 50,467 | ||||||
TOTAL CORPORATE OBLIGATIONS – 69.5% |
| $ | 117,645 | |||||
(Cost: $117,645) | ||||||||
MUNICIPAL OBLIGATIONS |
| |||||||
California – 1.8% |
| |||||||
CA GO Bonds, Ser 2005A3 (GTD by Bank of America N.A.), | 1,570 | 1,570 | ||||||
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by U.S. Government), | 700 | 700 | ||||||
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), | 775 | 775 | ||||||
|
| |||||||
3,045 | ||||||||
|
| |||||||
Colorado – 2.2% |
| |||||||
Castle Rock, CO, Cert of Part, Ser 2008 (GTD by Wells Fargo Bank N.A.), | 750 | 750 | ||||||
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank N.A.), | 2,700 | 2,700 | ||||||
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.), | 250 | 250 | ||||||
|
| |||||||
3,700 | ||||||||
|
| |||||||
Georgia – 3.9% |
| |||||||
Dev Auth of Monroe Cty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.), | 1,618 | 1,618 | ||||||
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells FargoBank N.A.), | 4,000 | 4,000 |
84 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Money Market Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL OBLIGATIONS (Continued) | Principal | Value | ||||||
Georgia (Continued) |
| |||||||
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser B (Taxable), (GTD by TD Bank), | $ | 1,065 | $ | 1,065 | ||||
|
| |||||||
6,683 | ||||||||
|
| |||||||
Kansas – 2.2% |
| |||||||
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004, | 3,640 | 3,640 | ||||||
|
| |||||||
Louisiana – 2.3% |
| |||||||
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), | 2,911 | 2,911 | ||||||
Parish of St. Bernard, LA, Exempt Fac Rev Bonds (Mobil Oil Corp. Proj), Ser 1996 (GTD by Exxon Mobil Corp.), | 1,000 | 1,000 | ||||||
|
| |||||||
3,911 | ||||||||
|
| |||||||
Maryland – 1.1% |
| |||||||
MD Hlth and Higher Edu Fac Auth Rev Bonds, Anne Arundel Hlth Sys Issue, Ser 2009A (GTD by Toronto Dominion Bank), | 1,915 | 1,915 | ||||||
|
| |||||||
Michigan – 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)), | 1,500 | 1,500 | ||||||
|
| |||||||
Mississippi – 1.0% |
| |||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007B (GTD by Chevron Corp.), | 700 | 700 | ||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.), | 210 | 210 |
MUNICIPAL OBLIGATIONS (Continued) | Principal | Value | ||||||
Mississippi (Continued) |
| |||||||
MS Business Fin Corp., Gulf Opp Zone Indl Dev Var Rev Bonds (Chevron USA, Inc. Proj), Ser E (GTD by Chevron Corp.), | $ | 812 | $ | 812 | ||||
|
| |||||||
1,722 | ||||||||
|
| |||||||
Missouri – 0.6% |
| |||||||
Kansas City, MO, Var Rate Demand Taxable Spl Oblig Rfdg Bonds (President Hotel Redev Proj), Ser 2009B (GTD by JPMorgan Chase & Co.), | 950 | 950 | ||||||
|
| |||||||
New Jersey – 0.7% |
| |||||||
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.), | 1,100 | 1,100 | ||||||
|
| |||||||
New York – 1.6% |
| |||||||
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by Federal Home Loan Mortgage Corp.), | 2,000 | 2,000 | ||||||
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2014A, | 500 | 500 | ||||||
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America N.A.), | 261 | 261 | ||||||
|
| |||||||
2,761 | ||||||||
|
| |||||||
Ohio – 0.7% |
| |||||||
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006, | 1,200 | 1,200 | ||||||
|
| |||||||
Tennessee – 0.4% |
| |||||||
Johnson City, TN Hlth and Edu Fac, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2013A (GTD by U.S. Bank N.A.), 0.040%, 10–7–14 (A) | 760 | 760 | ||||||
|
| |||||||
Texas – 4.5% |
| |||||||
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), | 2,340 | 2,340 |
MUNICIPAL OBLIGATIONS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
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.), | $ | 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.), | 2,300 | 2,300 | ||||||
|
| |||||||
7,565 | ||||||||
|
| |||||||
Wyoming – 1.6% |
| |||||||
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron USA, Inc. Proj), Ser 1992 (GTD by Chevron Corp.), | 2,783 | 2,783 | ||||||
|
| |||||||
TOTAL MUNICIPAL |
| $ | 43,235 | |||||
(Cost: $43,235) | ||||||||
UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS |
| |||||||
United States Government Agency Obligations |
| |||||||
Overseas Private Investment Corp. (GTD by U.S. Government): | ||||||||
0.110%, 10–1–14 (A) | 2,000 | 2,000 | ||||||
0.110%, 10–3–14 (A) | 2,254 | 2,254 | ||||||
0.110%, 10–7–14 (A) | 1,333 | 1,333 | ||||||
0.110%, 10–7–14 (A) | 1,000 | 1,000 | ||||||
0.110%, 10–7–14 (A) | 750 | 750 | ||||||
0.110%, 10–7–14 (A) | 500 | 500 | ||||||
Totem Ocean Trailer Express, Inc. (GTD by U.S. Government), | 423 | 424 | ||||||
|
| |||||||
Total United States Government Agency Obligations – 4.9% |
| 8,261 | ||||||
TOTAL UNITED STATES GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS – 4.9% |
| $ | 8,261 | |||||
(Cost: $8,261) | ||||||||
TOTAL INVESTMENT |
| $ | 169,141 | |||||
(Cost: $169,141) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% |
| 207 | ||||||
NET ASSETS – 100.0% |
| $ | 169,348 |
2014 | SEMIANNUAL REPORT | 85 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Money Market Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
Notes to Schedule of Investments
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | — | $ | 117,645 | $ | — | ||||||
Municipal Obligations | — | 43,235 | — | |||||||||
United States Government Agency Obligations | — | 8,261 | — | |||||||||
Total | $ | — | $ | 169,141 | $ | — |
As of September 30, 2014, there were no transfers between Level 1 and 2 during the period.
The following acronym is used throughout this schedule:
GTD = Guaranteed
See Accompanying Notes to Financial Statements.
86 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Bonds | 88.8% | |||
Municipal Bonds | 88.8% | |||
Cash and Cash Equivalents | 11.2% |
Lipper Rankings
Category: Lipper General Municipal Debt Funds | Rank | Percentile | ||
1 Year | 222/263 | 85 | ||
3 Year | 182/235 | 78 | ||
5 Year | 116/209 | 56 | ||
10 Year | 73/160 | 46 |
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 | 80.6% | |||
AAA | 3.0% | |||
AA | 32.1% | |||
A | 29.4% | |||
BBB | 16.1% | |||
Non-Investment Grade | 8.2% | |||
BB | 2.0% | |||
CCC | 1.0% | |||
Non-rated | 5.2% | |||
Cash and Cash Equivalents | 11.2% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
2014 | SEMIANNUAL REPORT | 87 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (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, | $ | 500 | $ | 579 | ||||
The Spl Care Fac Fin Auth of Birmingham-Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009, | 750 | 877 | ||||||
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A, | 750 | 841 | ||||||
|
| |||||||
2,297 | ||||||||
|
| |||||||
Arizona – 1.5% |
| |||||||
AZ Cert of Part, Ser 2010A (Insured by AGM), | 1,000 | 1,122 | ||||||
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008, | 500 | 592 | ||||||
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009, | 500 | 584 | ||||||
|
| |||||||
2,298 | ||||||||
|
| |||||||
California – 13.4% |
| |||||||
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 D-1 Index Rate Bonds, | 1,000 | 1,012 | ||||||
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1, | 1,500 | 1,510 | ||||||
CA Cmnty Trans Rev (Installment Sale), Cert of Part (T.R.I.P. – Total Road Impvt Prog), Ser 2012B, | 345 | 379 | ||||||
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part, | 460 | 491 | ||||||
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj) Ser 2002B, | 415 | 453 | ||||||
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, | 375 | 411 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A, | $ | 500 | $ | 566 | ||||
CA Statewide Cmnty Dev Auth, Student Hsng Rev Bonds (Univ of CA, Irvine East Campus Apt, Phase I Rfdg-CHF-Irvine LLC), Ser 2011, | 1,195 | 1,375 | ||||||
CA Various Purp GO Bonds: | ||||||||
5.250%, 9–1–26 | 1,500 | 1,791 | ||||||
5.250%, 10–1–29 | 500 | 577 | ||||||
6.500%, 4–1–33 | 1,000 | 1,223 | ||||||
6.000%, 11–1–39 | 500 | 608 | ||||||
CA Various Purp GO Rfdg Bonds, | 2,000 | 2,273 | ||||||
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009, | 500 | 569 | ||||||
Contra Costa Trans Auth, Sales Tax Rev Bonds (Ltd. Tax Bonds), Ltd. Tax Rfdg Bonds, Ser 2012A, | 1,000 | 1,002 | ||||||
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A, | 1,000 | 1,120 | ||||||
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A, | 750 | 844 | ||||||
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F, | 500 | 568 | ||||||
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A, | 250 | 294 | ||||||
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part, | 250 | 270 | ||||||
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E, | 570 | 660 | ||||||
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, Ser 2010E, | 445 | 528 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
San Jose, CA Arpt Rev Bonds, Ser 2011A-1, | $ | 500 | $ | 591 | ||||
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B, | 500 | 592 | ||||||
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A: | ||||||||
5.250%, 10–1–24 | 500 | 598 | ||||||
5.000%, 12–1–24 | 500 | 590 | ||||||
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A, | 150 | 75 | ||||||
Vernon Elec Sys Rev Bonds, Ser 2012A, | 315 | 349 | ||||||
|
| |||||||
21,319 | ||||||||
|
| |||||||
Colorado – 2.4% |
| |||||||
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008, | 500 | 569 | ||||||
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010, | 500 | 570 | ||||||
CO Hsng and Fin Auth, Sngl Fam Mtg Class I Bonds, Ser 2009A (Insured by FHA/VA), | 335 | 347 | ||||||
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008, | 500 | 604 | ||||||
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, | 500 | 534 | ||||||
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012, | 300 | 313 | ||||||
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, | 750 | 870 | ||||||
|
| |||||||
3,807 | ||||||||
|
|
88 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Connecticut – 0.9% |
| |||||||
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D, | $ | 370 | $ | 419 | ||||
CT GO Bonds, Ser 2012D, | 1,000 | 1,012 | ||||||
|
| |||||||
1,431 | ||||||||
|
| |||||||
District Of Columbia – 1.6% |
| |||||||
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC), | 1,000 | 1,150 | ||||||
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009, | 750 | 870 | ||||||
Metro WA Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C, | 500 | 571 | ||||||
|
| |||||||
2,591 | ||||||||
|
| |||||||
Florida – 5.7% |
| |||||||
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B, | 500 | 580 | ||||||
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009, | 500 | 549 | ||||||
Citizens Ppty Ins Corp., Sr Secured Rev Bonds, Ser 2010A-1, | 400 | 447 | ||||||
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A, | 555 | 653 | ||||||
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B, | 600 | 796 | ||||||
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A, | 500 | 574 | ||||||
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B, | 500 | 573 | ||||||
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B, | 500 | 586 | ||||||
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM), | 500 | 607 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Florida (Continued) |
| |||||||
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC), | $ | 500 | $ | 562 | ||||
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, | 500 | 612 | ||||||
Pinellas Cnty Edu Fac Auth, Rev Rfdg Prog Bonds (Barry Univ Proj), Ser 2012, | 750 | 826 | ||||||
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A, | 500 | 566 | ||||||
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A, | 500 | 542 | ||||||
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011, | 500 | 582 | ||||||
|
| |||||||
9,055 | ||||||||
|
| |||||||
Georgia – 1.3% |
| |||||||
Dev Auth of Burke Cnty (GA), Pollutn Ctl Rev Bonds (Oglethorpe Power Corp. Vogtle Proj), Ser 2003A, | 1,500 | 1,419 | ||||||
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D, | 500 | 586 | ||||||
|
| |||||||
2,005 | ||||||||
|
| |||||||
Hawaii – 0.7% |
| |||||||
HI Arpt Sys Rev Bond, Rfdg Ser 2011, | 1,000 | 1,183 | ||||||
|
| |||||||
Illinois – 4.7% |
| |||||||
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | 195 | 197 | ||||||
Build IL Sales Tax Rev Bonds, Ser 2011, | 500 | 565 | ||||||
City of Chicago, Second Lien Water Rev Bonds, Ser 2014, | 1,500 | 1,667 | ||||||
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, | 500 | 546 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Illinois (Continued) |
| |||||||
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B, | $ | 500 | $ | 587 | ||||
IL Fin Auth, Student Hsng Rev Bonds (CHF-DeKalb LLC – Northn IL Univ Proj), Ser 2011, | 395 | 438 | ||||||
IL GO Bonds, Ser 2012A, | 1,250 | 1,283 | ||||||
IL Sales Tax Rev Bonds (Jr Oblig), Series 2013, | 300 | 351 | ||||||
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, 2013 Ser A, | 1,100 | 1,231 | ||||||
State of IL GO Bonds, | 500 | 562 | ||||||
|
| |||||||
7,427 | ||||||||
|
| |||||||
Indiana – 0.9% |
| |||||||
East Chicago Elem Sch Bldg Corp. (Lake Cnty, IN), First Mtg Bonds, Ser 1993A, | 85 | 85 | ||||||
Hammond IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, | 300 | 304 | ||||||
IN Fin Auth, Fac Rev Rfdg Bonds (Miami Correctional Fac – Phase II), Ser 2008C, | 500 | 561 | ||||||
Mt. Vernon Sch Bldg Corp. of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM), | 500 | 552 | ||||||
|
| |||||||
1,502 | ||||||||
|
| |||||||
Iowa – 1.1% |
| |||||||
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008, | 1,000 | 1,083 | ||||||
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012, | 750 | 718 | ||||||
|
| |||||||
1,801 | ||||||||
|
| |||||||
Kansas – 1.1% |
| |||||||
Arkansas City, KS Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, | 500 | 554 |
2014 | SEMIANNUAL REPORT | 89 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Kansas (Continued) |
| |||||||
Shawnee Cnty, KS Cert of Part (First Responders Comm Proj), Ser 2012, | $ | 1,050 | $ | 1,177 | ||||
|
| |||||||
1,731 | ||||||||
|
| |||||||
Kentucky – 1.8% |
| |||||||
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90, | 500 | 596 | ||||||
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: | ||||||||
5.500%, 6–1–21 | 500 | 578 | ||||||
6.500%, 3–1–45 | 675 | 781 | ||||||
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A, | 500 | 577 | ||||||
Tpk Auth of KY, Econ Dev Road Rev Bonds (Revitalization Proj), Ser 2008A, | 330 | 357 | ||||||
|
| |||||||
2,889 | ||||||||
|
| |||||||
Louisiana – 3.1% |
| |||||||
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012, | 500 | 574 | ||||||
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Hosp Rev Bonds (Women’s Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B, | 750 | 864 | ||||||
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A-1, | 500 | 574 | ||||||
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM), | 1,500 | 1,695 | ||||||
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM), | 1,000 | 1,141 | ||||||
|
| |||||||
4,848 | ||||||||
|
| |||||||
Maryland – 1.0% |
| |||||||
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006, | 500 | 596 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Maryland (Continued) |
| |||||||
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D, | $ | 1,000 | $ | 1,005 | ||||
|
| |||||||
1,601 | ||||||||
|
| |||||||
Massachusetts – 0.9% |
| |||||||
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010, | 495 | 546 | ||||||
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009, | 265 | 283 | ||||||
MA Port Auth, PFC Rev Rfdg Bonds, Ser 2010-E, | 500 | 518 | ||||||
|
| |||||||
1,347 | ||||||||
|
| |||||||
Michigan – 2.3% |
| |||||||
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A, | 500 | 557 | ||||||
MI Fin Auth, Rev Bonds (Detroit Sch Dist), Ser 2011, | 1,000 | 1,158 | ||||||
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009, | 750 | 824 | ||||||
State Bldg Auth, MI, 2006 Rev Rfdg Bonds (Fac Prog), Ser IA (Insured by FGIC), | 1,000 | 730 | ||||||
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I, | 305 | 351 | ||||||
|
| |||||||
3,620 | ||||||||
|
| |||||||
Minnesota – 0.4% |
| |||||||
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D, | 500 | 581 | ||||||
|
| |||||||
Mississippi – 0.5% |
| |||||||
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009, | 750 | 845 | ||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Missouri – 3.1% |
| |||||||
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2004, | $ | 200 | $ | 200 | ||||
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | 175 | 150 | ||||||
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009, | 750 | 832 | ||||||
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011, | 750 | 814 | ||||||
Platte Cnty R-III Sch Dist Bldg Corp., Leasehold Rfdg and Impvt Rev Bonds, Ser 2008, | 340 | 378 | ||||||
Pub Water Supply Dist No. 1 of Lincoln Cnty, MO, Cert of Part, Ser 2009, | 500 | 523 | ||||||
St. Louis Cnty, MO Indl Dev Auth, Sr Living Fac Rev Bonds (Friendship Vlg Sunset Hills), Ser 2012, | 1,120 | 1,199 | ||||||
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery Zone Fac Bonds (Proj Sugar), Ser 2010-C, 6.000%, 9–1–24 (C) | 474 | 31 | ||||||
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, | 205 | 212 | ||||||
The Indl Dev Auth of St. Joseph, MO, Spl Oblig Rev Bonds (St. Joseph Sewage Sys Impvt Proj), Ser 2007, | 100 | 107 | ||||||
The Indl Dev Auth of St. Louis, MO, Sr Living Fac Rev Bonds (Friendship Vlg of West Cnty), Ser 2007A, | 500 | 515 | ||||||
|
| |||||||
4,961 | ||||||||
|
| |||||||
Nevada – 0.8% |
| |||||||
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, | 500 | 581 |
90 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Nevada (Continued) |
| |||||||
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008: | ||||||||
6.000%, 12–1–16 | $ | 75 | $ | 82 | ||||
6.250%, 12–1–17 | 270 | 307 | ||||||
6.500%, 12–1–18 | 290 | 341 | ||||||
|
| |||||||
1,311 | ||||||||
|
| |||||||
New Hampshire – 0.7% |
| |||||||
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | 150 | 167 | ||||||
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA), | 500 | 607 | ||||||
NH Hsng Fin Auth, Sngl Fam Mtg Acquisition Rev Bonds, Ser 2008, | 320 | 330 | ||||||
|
| |||||||
1,104 | ||||||||
|
| |||||||
New Jersey – 4.5% |
| |||||||
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty LLC-Montclair St Univ Student Hsng Proj), Ser 2010A, | 850 | 937 | ||||||
NJ Econ Dev Auth, Sch Fac Constr Bonds, Ser 2005O, | 250 | 255 | ||||||
NJ Econ Dev Auth, Sch Fac Constr Notes, Ser 2012H, | 2,000 | 2,004 | ||||||
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE, | 500 | 567 | ||||||
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1, | 500 | 569 | ||||||
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A, | 500 | 551 | ||||||
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A, | 500 | 556 | ||||||
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR), | 500 | 597 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New Jersey (Continued) |
| |||||||
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2003B-2, | $ | 500 | $ | 545 | ||||
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G, | 435 | 527 | ||||||
|
| |||||||
7,108 | ||||||||
|
| |||||||
New Mexico – 0.1% |
| |||||||
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2006D (Insured by GNMA/FNMA/FHLMC), | 30 | 32 | ||||||
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2 (Insured by GNMA/FNMA/FHLMC), | 65 | 66 | ||||||
|
| |||||||
98 | ||||||||
|
| |||||||
New York – 7.7% |
| |||||||
Metro Trans Auth, Trans Rev Bonds, Ser 2014C, | 1,500 | 1,690 | ||||||
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B, | 1,575 | 1,475 | ||||||
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowak Power Corp. Proj), Ser 1985A (Insured by AMBAC), | 1,380 | 1,308 | ||||||
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co. of NY, Inc. Proj), Sub Ser 1999A-1 (Insured by AMBAC), | 2,000 | 1,809 | ||||||
NYC GO Bonds, Fiscal 2014 Ser G, | 1,000 | 1,167 | ||||||
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K, | 415 | 435 | ||||||
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A: | ||||||||
0.000%, 3–1–25 (B) | 500 | 361 | ||||||
0.000%, 3–1–26 (B) | 500 | 339 | ||||||
0.000%, 3–1–27 (B) | 500 | 322 | ||||||
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Series 2013I, | 400 | 466 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New York (Continued) |
| |||||||
Port Auth of NY & NJ Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC), | $ | 500 | $ | 568 | ||||
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp Assoc Civic Fac), Ser 1999A, | 80 | 80 | ||||||
Suffolk Cnty Indl Dev Agy, Civic Fac Rev Bonds (The Southampton Hosp Assoc Civic Fac), Ser 1999B, | 455 | 457 | ||||||
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE, | 1,500 | 1,770 | ||||||
|
| |||||||
12,247 | ||||||||
|
| |||||||
North Carolina – 1.0% |
| |||||||
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C, | 235 | 256 | ||||||
NC Med Care Comsn, Hlth Care Fac Rev Rfdg Bonds (Univ Hlth Sys of Eastn Carolina), Ser 2008E-2, | 500 | 505 | ||||||
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A, | 500 | 201 | ||||||
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009, | 500 | 589 | ||||||
|
| |||||||
1,551 | ||||||||
|
| |||||||
Ohio – 0.9% |
| |||||||
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010, | 500 | 556 | ||||||
OH Major New State Infra Proj Rev Bonds, Ser 2008-I, | 395 | 451 | ||||||
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund) (Midwest Terminals Proj), Ser 2007C, | 410 | 439 | ||||||
|
| |||||||
1,446 | ||||||||
|
| |||||||
Oklahoma – 0.7% |
| |||||||
Cleveland Cnty Justice Auth, Sales Tax Rev Bonds (Cleveland Cnty Detention Fac Proj), Ser 2009B, | 110 | 113 |
2014 | SEMIANNUAL REPORT | 91 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Oklahoma (Continued) |
| |||||||
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC), | $ | 905 | $ | 1,036 | ||||
|
| |||||||
1,149 | ||||||||
|
| |||||||
Oregon – 0.2% |
| |||||||
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A, | 250 | 279 | ||||||
|
| |||||||
Pennsylvania – 4.0% |
| |||||||
Allegheny Cnty Arpt Auth, Arpt Rev Rfdg Bonds (Pittsburg Intl Arpt), Ser 2010A, | 250 | 275 | ||||||
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2012, | 895 | 907 | ||||||
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A, | 600 | 693 | ||||||
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A, | 500 | 539 | ||||||
PA Higher Edu Fac Auth, Rev Bonds (Shippensburg Univ Student Svc, Inc. Student Hsng Proj at Shippensburg Univ of PA), Ser 2011, | 500 | 559 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D, | 750 | 824 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010B-2, | 1,500 | 1,611 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011, | 400 | 454 | ||||||
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM), | 445 | 507 | ||||||
|
| |||||||
6,369 | ||||||||
|
| |||||||
Puerto Rico – 1.8% |
| |||||||
Cmnwlth of PR, Pub Impvt Rfdg Bonds (GO Bonds), Ser 2007A, | 500 | 450 | ||||||
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A (Sr Lien), | 500 | 373 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Puerto Rico (Continued) |
| |||||||
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX, | $ | 750 | $ | 446 | ||||
PR Elec Power Auth, Power Rev Bonds, | 1,000 | 597 | ||||||
PR Elec Power Auth, Power Rev Rfdg Bonds, Ser DDD, | 1,000 | 597 | ||||||
PR Pub Fin Corp. (Cmnwlth Approp Bonds), 2011 Ser B, | 250 | 128 | ||||||
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010A, | 500 | 282 | ||||||
|
| |||||||
2,873 | ||||||||
|
| |||||||
Rhode Island – 0.4% |
| |||||||
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A, | 525 | 576 | ||||||
|
| |||||||
Tennessee – 0.4% |
| |||||||
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C, | 500 | 569 | ||||||
|
| |||||||
Texas – 10.1% |
| |||||||
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC), | 300 | 339 | ||||||
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008, | 355 | 406 | ||||||
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A, | 500 | 616 | ||||||
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011, | 500 | 562 | ||||||
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A, | 1,000 | 1,010 | ||||||
El Paso, TX (El Paso Cnty), Water and Sewer Rev Rfdg Bonds, Ser 2008C, | 500 | 553 | ||||||
Harris Cnty Cultural Edu Fac Fin Corp., Med Fac Rev Rfdg Bonds (Baylor College of Medicine), Ser 2008D, | 200 | 217 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008, | $ | 500 | $ | 511 | ||||
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | 1,000 | 1,200 | ||||||
Houston, TX Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A, | 500 | 548 | ||||||
Houston, TX, Combined Util Sys, First Lien Rev Rfdg Bonds (SIFMA Index Floating Rate Bonds), Ser 2012C, | 500 | 503 | ||||||
Howard Cnty, TX GO Bonds, Ser 2008, | 505 | 528 | ||||||
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A: | ||||||||
5.750%, 5–15–23 | 500 | 575 | ||||||
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011, | 505 | 531 | ||||||
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008A, | 500 | 564 | ||||||
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D, | 1,000 | 536 | ||||||
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008, | 500 | 565 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (NW Sr Hsng Corp. – Edgemere Proj), Ser 2006A, | 500 | 515 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007, | 250 | 258 | ||||||
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008, | 325 | 370 | ||||||
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012, | 1,000 | 1,080 |
92 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009, | $ | 500 | $ | 592 | ||||
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010, | 750 | 933 | ||||||
TX Trans Comsn Cent TX Tpk Sys, First Tier Rev Rfdg Bonds, | 2,500 | 2,507 | ||||||
|
| |||||||
16,019 | ||||||||
|
| |||||||
Utah – 0.4% |
| |||||||
Midvale, UT Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012: | ||||||||
2.000%, 10–15–16 | 195 | 200 | ||||||
2.000%, 10–15–17 | 465 | 476 | ||||||
|
| |||||||
676 | ||||||||
|
| |||||||
Virgin Islands – 1.0% |
| |||||||
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Cruzan Proj), Ser 2009A, | 500 | 557 | ||||||
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A, | 1,000 | 1,102 | ||||||
|
| |||||||
1,659 | ||||||||
|
| |||||||
Virginia – 0.6% |
| |||||||
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C, | 500 | 587 | ||||||
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B, | 250 | 287 | ||||||
|
| |||||||
874 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Washington – 0.7% |
| |||||||
WA Hlth Care Fac Auth, Rev Bonds (Swedish Hlth Svc), Ser 2009A, | $ | 500 | $ | 504 | ||||
WA Hlth Care Fac Auth, Rev Bonds (Virginia Mason Med Ctr), Ser 2007C, | 500 | 534 | ||||||
|
| |||||||
1,038 | ||||||||
|
| |||||||
West Virginia – 0.6% |
| |||||||
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, | 300 | 336 | ||||||
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C, | 500 | 552 | ||||||
|
| |||||||
888 | ||||||||
|
| |||||||
Wisconsin – 1.1% |
| |||||||
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B, | 1,000 | 1,168 | ||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009, | 500 | 584 | ||||||
|
| |||||||
1,752 | ||||||||
|
| |||||||
Wyoming – 1.2% |
| |||||||
WY Cmnty Dev Auth, Hsng Rev Bonds, 2014 Ser 1, | 1,250 | 1,271 | ||||||
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A, | 500 | 562 | ||||||
|
| |||||||
1,833 | ||||||||
|
| |||||||
TOTAL MUNICIPAL |
| $ | 140,558 | |||||
(Cost: $130,814) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 6.3% |
| |||||||
Kellogg Co., | $ | 4,000 | $ | 4,000 | ||||
Kroger Co. (The), | 3,036 | 3,036 | ||||||
Wisconsin Gas LLC, | 3,000 | 3,000 | ||||||
|
| |||||||
10,036 | ||||||||
|
| |||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp., | 247 | 247 | ||||||
|
| |||||||
Municipal Obligations – 3.6% |
| |||||||
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by Bank of America N.A.), | 900 | 900 | ||||||
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), | 1,900 | 1,900 | ||||||
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.), | 900 | 900 | ||||||
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), | 2,000 | 2,000 | ||||||
|
| |||||||
5,700 | ||||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 15,983 | |||||
(Cost: $15,983) | ||||||||
TOTAL INVESTMENT |
| $ | 156,541 | |||||
(Cost: $146,797) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1% |
| 1,825 | ||||||
NET ASSETS – 100.0% |
| $ | 158,366 |
Notes to Schedule of Investments
(A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(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, 2014. |
(E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
2014 | SEMIANNUAL REPORT | 93 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal Bond Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | — | $ | 136,271 | $ | 4,287 | ||||||
Short-Term Securities | — | 15,983 | — | |||||||||
Total | $ | — | $ | 152,254 | $ | 4,287 |
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 4-1-14 | $ | 1,711 | ||
Net realized gain (loss) | — | |||
Net change in unrealized appreciation (depreciation) | 11 | |||
Purchases | 2,899 | |||
Sales | — | |||
Amortization/Accretion of premium/discount | — | * | ||
Transfers into Level 3 during the period | 1,376 | |||
Transfers out of Level 3 during the period | (1,710 | ) | ||
Ending Balance 9-30-14 | $ | 4,287 | ||
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-14 | $ | 11 |
Transfers from Level 2 to Level 3 occurred primarily 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 primarily 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, 2014.
Information about Level 3 fair value measurements:
Fair Value at 9-30-14 | Valuation Technique(s) | Unobservable Input(s) | ||||
Assets | ||||||
Municipal Bonds | $4,287 | Third-party valuation service | 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
VA = Department of Veterans Affairs
See Accompanying Notes to Financial Statements.
94 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Bonds | 91.4% | |||
Municipal Bonds | 91.4% | |||
Cash and Cash Equivalents | 8.6% |
Lipper Rankings
Category: Lipper High Yield Municipal Debt Funds | Rank | Percentile | ||
1 Year | 84/133 | 63 | ||
3 Year | 85/113 | 75 | ||
5 Year | 26/95 | 28 |
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 | 29.3% | |||
AA | 1.5% | |||
A | 5.7% | |||
BBB | 22.1% | |||
Non-Investment Grade | 62.1% | |||
BB | 13.4% | |||
B | 4.8% | |||
CCC | 2.6% | |||
Below CCC | 0.5% | |||
Non-rated | 40.8% | |||
Cash and Cash Equivalents | 8.6% |
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. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
2014 | SEMIANNUAL REPORT | 95 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS | Principal | Value | ||||||
Alabama – 0.8% |
| |||||||
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012-A, | $ | 1,000 | $ | 1,167 | ||||
Fairfield, AL GO Warrants, Ser 2012, | 8,485 | 9,046 | ||||||
|
| |||||||
10,213 | ||||||||
|
| |||||||
Alaska – 0.7% |
| |||||||
Northn Tob Securitzation Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds, 5.000%, 6–1–46 | 11,500 | 8,637 | ||||||
|
| |||||||
Arizona – 3.8% |
| |||||||
Indl Dev Auth of Mohave Cnty, Correctional Fac Contract Rev Bonds (Mohave Prison LLC Expansion Proj), Ser 2008, | 7,500 | 8,644 | ||||||
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Basic Sch Proj), Ser 2004A, | 1,315 | 1,317 | ||||||
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch-Pima Proj), Tax–Exempt Ser 2014A, 7.000%, 12–15–43 | 1,500 | 1,598 | ||||||
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A: | ||||||||
6.000%, 12–1–27 | 2,390 | 2,603 | ||||||
6.250%, 12–1–42 | 2,150 | 2,298 | ||||||
6.250%, 12–1–46 | 1,000 | 1,068 | ||||||
Indl Dev Auth of Tucson, Edu Rev Bonds (Agribusiness and Equine Ctr Proj), Ser 2004A, | 500 | 501 | ||||||
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011, 7.875%, 3–1–42 | 3,500 | 4,102 | ||||||
La Paz Cnty, AZ, Indl Dev Auth, Indl Dev Rev Sr Lien, Imperial Rgnl Detention Fac Proj, 7.800%, 10–1–39 | 25,000 | 26,636 | ||||||
|
| |||||||
48,767 | ||||||||
|
| |||||||
California – 7.8% |
| |||||||
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A, | 4,000 | 4,577 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B, 6.000%, 9–1–30 | $ | 2,170 | $ | 2,367 | ||||
CA Muni Fin Auth, Edu Fac Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2006A, | 1,150 | 1,112 | ||||||
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Ser 2009A, | 1,505 | 1,736 | ||||||
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B, | 400 | 455 | ||||||
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, 5.000%, 10–1–42 | 1,200 | 1,245 | ||||||
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013: | ||||||||
5.625%, 11–1–33 | 1,400 | 1,477 | ||||||
5.875%, 11–1–43 | 1,890 | 1,989 | ||||||
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009: | ||||||||
6.625%, 11–15–24 | 2,490 | 2,896 | ||||||
7.000%, 11–15–29 | 2,000 | 2,348 | ||||||
7.250%, 11–15–41 | 6,000 | 7,057 | ||||||
CA Statewide Cmnty Dev Auth, Rev Bonds (Thomas Jefferson Sch of Law), Ser 2008A: | ||||||||
7.250%, 10–1–32 | 3,400 | 2,040 | ||||||
7.250%, 10–1–38 | 5,000 | 3,000 | ||||||
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch), Ser 2010: | ||||||||
6.000%, 7–1–40 | 7,365 | 7,553 | ||||||
6.350%, 7–1–46 | 250 | 259 | ||||||
CA Various Purp GO Bonds, 6.000%, 4–1–35 | 500 | 598 | ||||||
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013, 5.125%, 9–15–42 | 2,760 | 2,914 | ||||||
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A–1, | 5,140 | 3,790 | ||||||
Inland Empire Tob Securitization Auth, Tob Stlmt Asset-Bkd Bonds (Inland Empire Tob Securitization Corp.), Ser 2007, | 6,035 | 5,855 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
California (Continued) |
| |||||||
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part: | ||||||||
6.750%, 11–1–39 | $ | 4,935 | $ | 5,326 | ||||
6.000%, 11–1–41 | 3,000 | 3,121 | ||||||
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds, | 100 | 113 | ||||||
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011: | ||||||||
8.000%, 12–1–26 | 1,400 | 1,807 | ||||||
8.000%, 12–1–31 | 9,400 | 11,789 | ||||||
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012, 6.000%, 9–1–42 | 8,000 | 9,125 | ||||||
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.), Ser 2006A Sr Current Int Bonds, | 17,395 | 14,215 | ||||||
|
| |||||||
98,764 | ||||||||
|
| |||||||
Colorado – 3.4% |
| |||||||
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008, 6.000%, 10–1–40 | 5,910 | 6,205 | ||||||
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010, 6.125%, 10–1–40 | 5,000 | 5,449 | ||||||
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A, | 85 | 96 | ||||||
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks Charter Academy Proj), Ser 2008, | 230 | 284 | ||||||
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010, | 1,000 | 1,063 | ||||||
CO High Performance Trans Enterprise, U.S. 36 and I-25 Managed Lanes Sr Rev Bonds, Ser 2014, 5.750%, 1–1–44 | 3,250 | 3,378 |
96 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Colorado (Continued) |
| |||||||
CO Hlth Fac Auth, Rev Bonds (CO Sr Residences Proj), Ser 2012: | ||||||||
6.750%, 6–1–32 | $ | 2,610 | $ | 2,716 | ||||
7.125%, 6–1–47 | 3,000 | 3,173 | ||||||
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A, 6.250%, 11–15–40 | 1,250 | 1,371 | ||||||
Kremmling Mem Hosp Dist Proj, Ser 2010, 7.125%, 12–1–45 | 4,345 | 3,641 | ||||||
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, | 3,500 | 3,712 | ||||||
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, 6.500%, 1–15–30 | 3,000 | 3,483 | ||||||
Sorrel Ranch Metro Dist, Arapahoe Cnty, CO, GO Ltd. Tax Bonds, Ser 2006, | 4,204 | 3,517 | ||||||
Tallgrass Metro Dist, Arapahoe Cnty, CO, GO Ltd. Tax Rfdg and Impvt Bonds, Ser 2007, 5.250%, 12–1–37 | 3,717 | 3,686 | ||||||
Wildgrass Metro Dist, Broomfield Cnty, CO, GO Ltd. Tax Rfdg Bonds, Ser 2007, | 1,516 | 1,539 | ||||||
|
| |||||||
43,313 | ||||||||
|
| |||||||
Connecticut – 0.7% |
| |||||||
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds, Ser 2010A, | 2,000 | 2,380 | ||||||
Stamford, CT Spl Oblig Rev Bonds (Mill River Corridor Proj), Ser 2011A, | 5,000 | 6,562 | ||||||
|
| |||||||
8,942 | ||||||||
|
| |||||||
Delaware – 0.6% |
| |||||||
DE Econ Dev Auth, Exempt Fac Rev Bonds (Indian River Power LLC Proj), Ser 2010, | 7,000 | 7,441 | ||||||
|
| |||||||
District Of Columbia – 0.1% |
| |||||||
Metro WA Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2010B, | 1,000 | 1,025 | ||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Florida – 3.0% |
| |||||||
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009: | ||||||||
6.500%, 11–1–29 | $ | 875 | $ | 964 | ||||
6.750%, 11–1–39 | 2,060 | 2,263 | ||||||
Cap Trust Agy, First Mtg Rev Bonds (Silver Creek St. Augustin Proj), Ser 2014A, 8.250%, 1–1–49 | 3,000 | 3,205 | ||||||
Cap Trust Agy, Rev Bonds (Million Air One LLC Gen Aviation Fac Proj), Ser 2011, 7.750%, 1–1–41 | 5,685 | 5,824 | ||||||
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A: | ||||||||
6.000%, 9–15–40 | 4,000 | 4,119 | ||||||
6.125%, 6–15–43 | 5,500 | 5,508 | ||||||
FL Dev Fin Corp., Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B, | 1,400 | 1,402 | ||||||
Lee Cnty Indl Dev Auth, Hlthcare Fac Rfdg Rev Bonds (Cypress Cove at Health Park FL, Inc. Proj), Ser 2012, 6.500%, 10–1–47 | 6,000 | 6,722 | ||||||
Mid–Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, 7.250%, 10–1–40 | 4,800 | 5,828 | ||||||
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A, 5.375%, 10–1–47 | 2,000 | 2,103 | ||||||
|
| |||||||
37,938 | ||||||||
|
| |||||||
Guam – 1.0% |
| |||||||
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A: | ||||||||
6.625%, 12–1–30 | 1,400 | 1,566 | ||||||
6.875%, 12–1–40 | 3,500 | 3,911 | ||||||
Govt of GU, GO Bonds, Ser 2009A: | ||||||||
5.750%, 11–15–14 | 15 | 15 | ||||||
7.000%, 11–15–39 | 6,000 | 6,808 | ||||||
|
| |||||||
12,300 | ||||||||
|
| |||||||
Hawaii – 0.6% |
| |||||||
Dept of Budget and Fin of HI, Spl Purp Sr Living Rev Bonds (15 Craigside Proj), Ser 2009A, 9.000%, 11–15–44 | 4,200 | 5,173 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Hawaii (Continued) |
| |||||||
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 | $ | 2,067 | ||||
|
| |||||||
7,240 | ||||||||
|
| |||||||
Idaho – 0.1% |
| |||||||
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A: | ||||||||
6.250%, 7–1–40 | 1,000 | 1,069 | ||||||
6.250%, 7–1–45 | 550 | 587 | ||||||
|
| |||||||
1,656 | ||||||||
|
| |||||||
Illinois – 9.9% |
| |||||||
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | 4,160 | 4,215 | ||||||
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A, | 1,300 | 1,326 | ||||||
Chicago Midway Arpt, Second Lien Rev and Rev Rfdg Bonds, Ser 2014B, | 4,500 | 4,982 | ||||||
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B, | 3,000 | 3,292 | ||||||
Chicago Multi–Fam Hsng Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013, | 6,000 | 5,806 | ||||||
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A, 5.750%, 1–1–39 | 1,000 | 1,139 | ||||||
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A, | 305 | 324 | ||||||
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012, 5.625%, 5–15–42 | 5,300 | 5,527 | ||||||
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, 6.500%, 4–1–44 | 10,000 | 10,880 | ||||||
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A: | ||||||||
8.000%, 5–15–40 | 15,000 | 15,621 | ||||||
8.000%, 5–15–46 | 4,500 | 4,687 |
2014 | SEMIANNUAL REPORT | 97 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Illinois (Continued) |
| |||||||
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010, | $ | 10,500 | $ | 11,233 | ||||
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009, | 7,000 | 8,086 | ||||||
IL Fin Auth, Rev Bonds (Three Crowns Park Proj), Ser 2006A: | ||||||||
5.875%, 2–15–26 | 1,000 | 1,017 | ||||||
5.875%, 2–15–38 | 3,000 | 3,029 | ||||||
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009, | 500 | 529 | ||||||
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010, | 1,500 | 1,574 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A, | 6,000 | 6,314 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008, 7.000%, 12–1–22 | 1,710 | 2,060 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009, 8.000%, 1–15–22 | 390 | 429 | ||||||
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012, | 5,330 | 5,601 | ||||||
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010: | ||||||||
7.250%, 11–15–40 | 1,100 | 1,170 | ||||||
7.375%, 11–15–45 | 1,500 | 1,596 | ||||||
Upper IL River Vly Dev Auth, Multi–Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012, | 4,935 | 5,066 | ||||||
Vlg of Bridgeview, Cook Cnty, IL GO Rfdg Bonds, Ser 2014A, | 5,000 | 5,286 | ||||||
Vlg of East Dundee, Kane and Cook Cnty, IL, Ltd. Oblig Tax Incr Rev Bonds (Route 25 South Redev Proj), Ser 2012, | 1,505 | 1,463 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Illinois (Continued) |
| |||||||
Vlg of Matteson, Cook Cnty, IL, GO Cap Apprec Debt Cert, Ser 2010, | $ | 1,840 | $ | 1,602 | ||||
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011, 8.000%, 10–1–36 | 10,145 | 11,175 | ||||||
|
| |||||||
125,029 | ||||||||
|
| |||||||
Indiana – 3.0% |
| |||||||
City of Carmel, IN, Rev Bonds, Ser 2012A: | ||||||||
7.000%, 11–15–27 | 1,550 | 1,719 | ||||||
7.000%, 11–15–32 | 2,000 | 2,183 | ||||||
7.125%, 11–15–42 | 7,500 | 8,152 | ||||||
Hammond IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, 6.000%, 1–15–17 | 5 | 5 | ||||||
Hendricks Cnty Redev Dist, Tax Incr Rev Rfdg Bonds, Ser 2010B, 6.450%, 1–1–23 | 200 | 205 | ||||||
IN Fin Auth, Midwestrn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A, 5.000%, 6–1–39 | 10,000 | 10,427 | ||||||
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010, | 3,170 | 3,522 | ||||||
Terre Haute, IN Rev Bonds (Westminister Vlg Proj), Ser 2012, 6.000%, 8–1–39 | 5,000 | 4,980 | ||||||
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A, | 1,880 | 2,014 | ||||||
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006, 5.350%, 1–15–27 | 3,770 | 3,873 | ||||||
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Lakefront Dev Proj), Ser 2010, | 1,175 | 1,303 | ||||||
|
| |||||||
38,383 | ||||||||
|
| |||||||
Iowa – 0.2% |
| |||||||
IA Fin Auth, Ret Cmnty Rev Bonds (Edgewater LLC Proj), Ser 2007A, 6.750%, 11–15–37 | 3,000 | 3,164 | ||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Kansas – 0.4% |
| |||||||
Arkansas City, KS Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, | $ | 500 | $ | 554 | ||||
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009, 4.480%, 9–1–30 (B) | 1,000 | 1,028 | ||||||
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 | 4,120 | ||||||
|
| |||||||
5,702 | ||||||||
|
| |||||||
Kentucky – 2.3% |
| |||||||
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: | ||||||||
6.375%, 6–1–40 | 12,000 | 13,825 | ||||||
6.500%, 3–1–45 | 6,000 | 6,945 | ||||||
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A, 5.750%, 7–1–49 | 5,000 | 5,671 | ||||||
Murray, KY, Hosp Fac Rev Bonds (Murray–Calloway Cnty Pub Hosp Corp. Proj), Ser 2010, | 2,000 | 2,215 | ||||||
|
| |||||||
28,656 | ||||||||
|
| |||||||
Louisiana – 1.6% |
| |||||||
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B, 10.500%, 7–1–39 | 6,000 | 6,560 | ||||||
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj – Phase IIA), Ser 2014A, | 13,500 | 13,912 | ||||||
|
| |||||||
20,472 | ||||||||
|
| |||||||
Maine – 0.2% |
| |||||||
ME Hlth and Higher Edu Fac Auth, Rev Bonds (Eastn ME Med Ctr Oblig Group Issue), Ser 2013, | 2,000 | 2,101 | ||||||
|
| |||||||
Maryland – 0.4% |
| |||||||
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B, 5.750%, 6–1–35 | 500 | 538 |
98 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Maryland (Continued) |
| |||||||
MD Econ Dev Corp., Port Fac Rfdg Rev Bonds (CNX Marine Terminals, Inc. Port of Baltimore Fac), Ser 2010, | $ | 4,350 | $ | 4,802 | ||||
|
| |||||||
5,340 | ||||||||
|
| |||||||
Massachusetts – 2.0% |
| |||||||
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines, Inc. Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC), 0.133%, 1–1–31 (B) | 30,000 | 25,200 | ||||||
|
| |||||||
Michigan – 5.4% |
| |||||||
Detroit, MI, GO Bonds, Ser 2004–A(1) (Insured by AMBAC), | 1,420 | 1,359 | ||||||
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011, 6.500%, 12–1–20 | 4,425 | 4,749 | ||||||
Kent Hosp, Fin Auth Rev Bonds (Metro Hosp Proj), Ser 2005A, | 15,500 | 15,946 | ||||||
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 | 1,013 | ||||||
7.450%, 10–1–41 | 2,000 | 2,034 | ||||||
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A, | 4,535 | 4,737 | ||||||
MI Fin Auth, Rev Bonds (Sch Dist of Detroit), Ser 2012, | 1,425 | 1,624 | ||||||
MI Fin Auth, Sr Edu Fac Rev Bonds (St. Catherine of Siena Academy Proj), | 13,000 | 13,187 | ||||||
MI Fin Auth, State Aid Rev Notes (Sch Dist of Detroit), Ser 2001A-1, 8.000%, 10–1–30 | 2,480 | 2,483 | ||||||
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A, | 1,720 | 1,702 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Michigan (Continued) |
| |||||||
MI Tob Stlmt Fin Auth, Tob Stlmt Asset–Bkd Bonds, Ser 2008A, | $ | 16,500 | $ | 15,440 | ||||
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A, | 4,415 | 3,851 | ||||||
|
| |||||||
68,125 | ||||||||
|
| |||||||
Minnesota – 0.4% |
| |||||||
Minneapolis Hlth Care Sys Rev Bonds (Fairview Hlth Svc), Ser 2008B, 6.500%, 11–15–38 | 4,350 | 5,136 | ||||||
|
| |||||||
Missouri – 3.0% |
| |||||||
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A, | 530 | 593 | ||||||
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012, 6.375%, 12–1–29 | 1,835 | 1,856 | ||||||
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2004: | ||||||||
6.000%, 3–1–19 | 2,610 | 2,616 | ||||||
6.250%, 3–1–24 | 1,100 | 1,101 | ||||||
Belton, MO, Tax Incr Rev Bonds (Belton Town Centre Proj), Ser 2006, | 520 | 520 | ||||||
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | 200 | 172 | ||||||
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A: | ||||||||
5.250%, 10–1–21 | 250 | 241 | ||||||
5.400%, 10–1–26 | 385 | 343 | ||||||
5.500%, 10–1–31 | 425 | 362 | ||||||
5.550%, 10–1–36 | 325 | 269 | ||||||
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006, 5.000%, 11–1–23 | 2,360 | 2,361 | ||||||
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008: | ||||||||
6.000%, 4–1–18 (C) | 1,170 | 644 | ||||||
7.000%, 4–1–28 (C) | 535 | 294 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Missouri (Continued) |
| |||||||
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B, 7.000%, 9–1–35 | $ | 995 | $ | 1,011 | ||||
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj), Ser 2011, 7.250%, 4–1–30 | 5,000 | 5,206 | ||||||
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010, | 1,090 | 1,143 | ||||||
MO Dev Fin Board, Research Fac Rev Bonds (Midwest Research Institute Proj), Ser 2007, | 225 | 227 | ||||||
St. Louis Cnty, MO, Rev Notes (Lambert Arpt Eastn Perimeter Redev Proj-RPA1), Sr Ser B, 9.000%, 11–1–31 | 7,975 | 8,503 | ||||||
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 (A) | 750 | 284 | ||||||
0.000%, 7–15–37 (A) | 1,500 | 543 | ||||||
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 | 1,383 | ||||||
The Elm Point Commons Cmnty Impvt Dist (St. Charles, MO), Spl Assmt Bonds, Ser 2007, 5.750%, 3–1–27 | 100 | 103 | ||||||
The Indl Dev Auth of Bridgeton, MO, Sales Tax Rev Bonds (Hilltop Cmnty Impvt Dist Proj), Ser 2008A, | 250 | 231 | ||||||
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 | 1,275 | 1,282 | ||||||
6.500%, 1–1–35 | 3,000 | 3,011 | ||||||
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007, | 1,000 | 1,012 |
2014 | SEMIANNUAL REPORT | 99 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Missouri (Continued) |
| |||||||
The Indl Dev Auth of Moberly, MO, Annual Appropriation Recovery Zone Fac Bonds (Proj Sugar), Ser 2010–C, 6.000%, 9–1–24 (C) | $ | 1,895 | $ | 123 | ||||
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, | 200 | 207 | ||||||
The Indl Dev Auth of St. Joseph, MO, Hlthcare Rev Bonds (Living Cmnty of St. Joseph Proj), Ser 2002, 7.000%, 8–15–32 | 3,000 | 3,002 | ||||||
|
| |||||||
38,643 | ||||||||
|
| |||||||
Nebraska – 0.7% |
| |||||||
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012: | ||||||||
5.250%, 9–1–37 | 5,000 | 5,485 | ||||||
5.000%, 9–1–42 | 3,000 | 3,210 | ||||||
|
| |||||||
8,695 | ||||||||
|
| |||||||
Nevada – 0.2% |
| |||||||
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, | 1,500 | 1,743 | ||||||
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008, | 265 | 313 | ||||||
|
| |||||||
2,056 | ||||||||
|
| |||||||
New Hampshire – 0.2% |
| |||||||
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | 2,300 | 2,555 | ||||||
|
| |||||||
New Jersey – 1.3% |
| |||||||
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012: | ||||||||
5.000%, 6–15–26 | 1,000 | 1,121 | ||||||
5.000%, 6–15–28 | 1,000 | 1,108 | ||||||
5.000%, 6–15–29 | 500 | 551 | ||||||
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 2000A, | 2,500 | 2,708 | ||||||
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of NJ Issue, Ser 2009B: | ||||||||
7.125%, 12–1–23 | 850 | 1,086 | ||||||
7.500%, 12–1–32 | 450 | 582 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
New Jersey (Continued) |
| |||||||
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007–1A, | $ | 12,000 | $ | 8,891 | ||||
|
| |||||||
16,047 | ||||||||
|
| |||||||
New York – 2.6% |
| |||||||
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM), | 1,000 | 1,151 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2007A: | ||||||||
6.500%, 1–1–27 (C) | 6,750 | 4,928 | ||||||
6.700%, 1–1–43 (C) | 13,000 | 9,490 | ||||||
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2007C, | 8,715 | 6,362 | ||||||
The Orange Co. Funding Corp. (NY), Assisted Living Residence Rev Bonds (The Hamlet at Wallkill Assisted Living Proj), Ser 2012, | 11,500 | 11,162 | ||||||
|
| |||||||
33,093 | ||||||||
|
| |||||||
North Carolina – 0.1% |
| |||||||
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A, | 1,520 | 1,600 | ||||||
|
| |||||||
Ohio – 2.2% |
| |||||||
Cleveland–Cuyahoga Cnty Port Auth, Dev Rev Bonds (Garfield Heights Proj), Ser 2004D, | 1,055 | 1,057 | ||||||
Cleveland–Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B, | 2,600 | 2,894 | ||||||
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013, | 8,000 | 8,002 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Ohio (Continued) |
| |||||||
Columbus-Franklin Cnty Fin Auth, Dev Rev Bonds (Cent OH Rgnl Bond Fund), (One Neighborhood Proj), Ser 2010A, | $ | 1,225 | $ | 1,270 | ||||
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009, | 500 | 581 | ||||||
OH Higher Edu Fac Rev Bonds (Ashland Univ 2010 Proj), | 830 | 797 | ||||||
SE OH Port Auth, Hosp Fac Rev Rfdg and Impvt Bonds (Mem Hlth Sys of OH), Ser 2012, 6.000%, 12–1–42 | 3,750 | 3,779 | ||||||
Toledo–Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B, 5.500%, 5–15–28 | 830 | 883 | ||||||
Toledo–Lucas Cnty Port Auth, Spl Assmt Rev Bonds (Crocker Park Pub Impvt Proj), Ser 2003, 5.375%, 12–1–35 | 9,000 | 9,061 | ||||||
|
| |||||||
28,324 | ||||||||
|
| |||||||
Oklahoma – 0.8% |
| |||||||
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005: | ||||||||
6.125%, 11–15–25 | 2,000 | 2,031 | ||||||
6.000%, 11–15–38 | 7,495 | 7,547 | ||||||
|
| |||||||
9,578 | ||||||||
|
| |||||||
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 | 1,508 | ||||||
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012, | 1,900 | 2,029 | ||||||
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A: | ||||||||
6.125%, 9–1–30 | 1,035 | 1,103 | ||||||
6.375%, 9–1–40 | 1,750 | 1,888 | ||||||
Port of Portland, OR, Portland Intl Arpt Passenger Fac Charge Rev Bonds, Ser 2011A, 5.500%, 7–1–30 | 5,180 | 5,893 | ||||||
|
| |||||||
12,421 | ||||||||
|
|
100 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Pennsylvania – 4.9% |
| |||||||
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B, | $ | 200 | $ | 235 | ||||
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010, | 5,000 | 5,300 | ||||||
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A, | 14,500 | 13,962 | ||||||
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng Proj at Edinboro Univ of PA), Ser 2010, | 2,530 | 2,755 | ||||||
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Ppty, Inc. Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010, | 1,000 | 1,154 | ||||||
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E, 0.000%, 12–1–38 (A) | 19,000 | 20,020 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010, | 1,000 | 1,080 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011: | ||||||||
7.150%, 12–15–36 | 6,000 | 6,704 | ||||||
7.625%, 12–15–41 | 6,925 | 7,917 | ||||||
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012, 6.625%, 12–15–41 | 2,000 | 2,183 | ||||||
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser, | 1,250 | 1,430 | ||||||
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992, | 70 | 21 | ||||||
|
| |||||||
62,761 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Puerto Rico – 5.7% |
| |||||||
Cmnwlth of PR, GO Bonds of 2014, Ser A, | $ | 11,000 | $ | 9,698 | ||||
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2011C, | 3,000 | 2,332 | ||||||
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2012A: | ||||||||
5.750%, 7–1–28 | 3,000 | 2,310 | ||||||
5.500%, 7–1–39 | 5,000 | 3,669 | ||||||
PR Aqueduct and Sewer Auth, Rev Bonds, Ser 2012A (Sr Lien), | 9,000 | 7,005 | ||||||
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A, 6.000%, 7–1–47 | 12,000 | 8,873 | ||||||
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX: | ||||||||
5.750%, 7–1–36 | 2,415 | 1,437 | ||||||
5.250%, 7–1–40 | 5,270 | 3,137 | ||||||
PR Elec Power Auth, Power Rev Bonds, Ser 2012A, | 10,000 | 5,953 | ||||||
PR Elec Power Auth, Power Rev Bonds, Ser 2013A: | ||||||||
7.000%, 7–1–40 | 1,000 | 595 | ||||||
7.000%, 7–1–43 | 14,000 | 8,329 | ||||||
PR Pub Bldg Auth, Govt Fac Rev Rfdg Bonds, Ser U, | 8,755 | 6,137 | ||||||
PR Pub Fin Corp. (Cmnwlth Approp Bonds), 2011 Ser B: | ||||||||
6.000%, 8–1–25 | 5,025 | 2,617 | ||||||
6.000%, 8–1–26 | 1,000 | 521 | ||||||
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2009A, 6.375%, 8–1–39 | 5,500 | 4,629 | ||||||
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010A, 5.375%, 8–1–39 | 5,000 | 3,797 | ||||||
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010C, 6.500%, 8–1–35 | 1,000 | 860 | ||||||
|
| |||||||
71,899 | ||||||||
|
| |||||||
South Carolina – 0.1% |
| |||||||
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C, | 1,550 | 1,772 | ||||||
|
| |||||||
Texas – 14.2% |
| |||||||
Cap Area Cultural Ed Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B, | 3,150 | 3,627 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A, | $ | 500 | $ | 619 | ||||
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010: | ||||||||
0.000%, 1–1–36 (A) | 500 | 178 | ||||||
0.000%, 1–1–40 (A) | 500 | 141 | ||||||
Cent TX Rgnl Mobil Auth, Sub Lien Rev Rfdg Bonds, Ser 2013, | 6,000 | 6,355 | ||||||
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013, | 3,000 | 3,135 | ||||||
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A, | 8,000 | 8,431 | ||||||
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A, | 10,000 | 11,169 | ||||||
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 | 141 | ||||||
9.000%, 9–1–38 | 1,250 | 1,407 | ||||||
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009, | 500 | 543 | ||||||
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008: | ||||||||
6.000%, 2–15–33 | 2,000 | 2,044 | ||||||
6.000%, 2–15–38 | 250 | 254 | ||||||
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | 3,800 | 4,618 | ||||||
Houston, TX Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B: | ||||||||
5.000%, 7–1–25 | 1,000 | 1,162 | ||||||
5.000%, 7–1–26 | 2,680 | 3,097 | ||||||
La Vernia Higher Edu Fin Corp. (KIPP, Inc.), Ser 2009A, | 2,000 | 2,265 | ||||||
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009, | 2,505 | 2,910 |
2014 | SEMIANNUAL REPORT | 101 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
Lubbock Hlth Fac Dev Corp., First Mtg Rev and Rfdg Bonds (Carillon Sr Life Care Cmnty Proj), Ser 2005A: | ||||||||
6.500%, 7–1–26 | $ | 1,500 | $ | 1,556 | ||||
6.625%, 7–1–36 | 7,000 | 7,225 | ||||||
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 | 2,678 | ||||||
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C, 0.000%, 9-1-43 (A) | 11,000 | 9,558 | ||||||
Pharr, TX Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A: | ||||||||
6.250%, 8–15–29 | 350 | 395 | ||||||
6.500%, 8–15–39 | 200 | 227 | ||||||
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B, | 10,000 | 11,033 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Charter Sch Rev Bonds (Trinity Basin Preparatory Proj), Ser 2009A, | 155 | 197 | ||||||
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 | 2,120 | ||||||
6.000%, 11–15–36 | 6,615 | 6,818 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007: | ||||||||
5.500%, 11–15–22 | 2,000 | 2,082 | ||||||
5.625%, 11–15–27 | 250 | 258 | ||||||
5.750%, 11–15–37 | 6,840 | 6,977 | ||||||
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A: | ||||||||
8.000%, 11–15–29 | 2,500 | 2,431 | ||||||
8.125%, 11��15–39 | 5,000 | 4,826 | ||||||
Travis Cnty Hlth Fac Dev Corp., Ret Fac Rev Bonds (Querencia at Barton Creek Proj), Ser 2005A, | 400 | 413 | ||||||
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012, | ||||||||
5.000%, 12–15–32 | 3,000 | 3,217 |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Texas (Continued) |
| |||||||
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009, | $ | 12,975 | $ | 15,355 | ||||
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 | 2,491 | ||||||
7.500%, 6–30–33 | 2,700 | 3,357 | ||||||
7.000%, 6–30–40 | 13,430 | 16,187 | ||||||
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2010A, 6.200%, 2–15–40 | 10,000 | 11,324 | ||||||
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A, | 2,000 | 2,249 | ||||||
TX Trans Comsn Cent TX Tpk Sys, First Tier Rev Rfdg Bonds, Ser 2012–A, 5.000%, 8–15–41 | 10,000 | 10,785 | ||||||
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011, | 5,000 | 5,943 | ||||||
|
| |||||||
181,798 | ||||||||
|
| |||||||
Utah – 0.4% |
| |||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010, 6.375%, 7–15–40 | 2,160 | 2,161 | ||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010, | 1,015 | 1,106 | ||||||
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B, | 2,100 | 2,335 | ||||||
|
| |||||||
5,602 | ||||||||
|
|
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Virgin Islands – 0.1% |
| |||||||
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note – Diageo Proj), Ser 2009A, | $ | 935 | $ | 1,071 | ||||
|
| |||||||
Virginia – 2.2% |
| |||||||
Econ Dev Auth of James City Cnty, VA, Residential Care Fac Rev Bonds (VA Utd Methodist Homes of Williamsburg, Inc.), Ser 2013A: | ||||||||
6.000%, 6–1–43 | 3,039 | 2,773 | ||||||
2.000%, 10–1–48 | 983 | 20 | ||||||
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A, | 460 | 548 | ||||||
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C: | ||||||||
7.250%, 7–1–19 | 620 | 685 | ||||||
7.500%, 7–1–29 | 25 | 29 | ||||||
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A, 6.875%, 3–1–36 | 4,300 | 4,969 | ||||||
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 | 1,001 | ||||||
Norfolk Redev and Hsng Auth, Multifam Rental Hsng Fac Rev Bonds (1016 L.P. – Sussex Apt Proj), Ser 1996, 8.000%, 9–1–26 | 405 | 406 | ||||||
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012: | ||||||||
6.000%, 1–1–37 | 8,000 | 9,059 | ||||||
5.500%, 1–1–42 | 7,500 | 8,118 | ||||||
|
| |||||||
27,608 | ||||||||
|
| |||||||
Washington – 1.6% |
| |||||||
Indl Dev Corp of the Port of Seattle, Spl Fac Rev Rfdg Bonds (Delta Air Lines, Inc. Proj), Ser 2012, | 4,000 | 4,075 | ||||||
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008, | 2,100 | 2,334 |
102 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
MUNICIPAL BONDS (Continued) | Principal | Value | ||||||
Washington (Continued) |
| |||||||
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009: | ||||||||
6.250%, 7–1–24 | $ | 795 | $ | 893 | ||||
7.000%, 7–1–31 | 1,680 | 1,914 | ||||||
7.000%, 7–1–39 | 2,000 | 2,270 | ||||||
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008, | 250 | 307 | ||||||
WA State Hsng Fin Comsn (Rockwood Ret Cmnty Proj), Nonprofit Hsng Rev and Rfdg Rev Bonds, Ser 2014A, 7.500%, 1–1–49 | 8,000 | 8,866 | ||||||
|
| |||||||
20,659 | ||||||||
|
| |||||||
West Virginia – 0.4% |
| |||||||
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, 6.750%, 10–1–37 | 4,000 | 4,522 | ||||||
|
| |||||||
Wisconsin – 1.3% |
| |||||||
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B, 5.000%, 7–1–42 | 5,000 | 5,122 | ||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A: | ||||||||
6.125%, 6–1–35 | 1,220 | 1,365 | ||||||
6.125%, 6–1–39 | 250 | 278 | ||||||
WI Hlth and Edu Fac Auth, Rev Bonds (Saint John’s Cmnty, Inc.), Ser 2009: | ||||||||
7.250%, 9–15–29 | 2,180 | 2,575 | ||||||
7.625%, 9–15–39 | 5,500 | 6,561 | ||||||
|
| |||||||
15,901 | ||||||||
|
| |||||||
TOTAL MUNICIPAL BONDS – 91.4% |
| $ | 1,160,149 | |||||
(Cost: $1,129,996) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 4.6% |
| |||||||
Air Products and Chemicals, Inc., | $ | 6,000 | $ | 6,000 | ||||
Bemis Co., Inc.: | ||||||||
0.230%, 10–1–14 (D) | 2,000 | 2,000 | ||||||
0.240%, 10–8–14 (D) | 7,200 | 7,200 | ||||||
BorgWarner, Inc., 0.260%, 10–22–14 (D) | 3,000 | 3,000 | ||||||
Clorox Co. (The), 0.220%, 10–14–14 (D) | 4,800 | 4,800 | ||||||
DTE Gas Co., | 15,000 | 14,998 | ||||||
Kroger Co. (The), 0.170%, 10–1–14 (D) | 1,285 | 1,285 | ||||||
NBCUniversal Enterprise, Inc., | 5,000 | 5,000 | ||||||
Virginia Electric and Power Co.: | ||||||||
0.210%, 10–2–14 (D) | 9,000 | 9,000 | ||||||
0.210%, 10–3–14 (D) | 5,000 | 5,000 | ||||||
|
| |||||||
58,283 | ||||||||
|
| |||||||
Master Note – 0.3% |
| |||||||
Toyota Motor Credit Corp., | 4,210 | 4,210 | ||||||
|
| |||||||
Municipal Obligations – 1.2% |
| |||||||
City of Chicago, GO Var Rate Demand Bonds, Ser 2003B-1 (GTD by JPMorgan Chase & Co.), 0.050%, 10–7–14 (E) | 5,000 | 5,000 | ||||||
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006, | 500 | 500 | ||||||
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), 0.040%, 10–7–14 (E) | 2,000 | 2,000 | ||||||
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), | 4,300 | 4,300 |
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations (Continued) |
| |||||||
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-2 (GTD by Bank of America N.A.), | $ | 1,000 | $ | 1,000 | ||||
OR Hsng and Cmnty Svc Dept, Hsng Dev Rev Bonds (Pearl Fam Hsng Proj), Ser 2009B-1 (GTD by U.S. Bank N.A.), | 2,435 | 2,435 | ||||||
|
| |||||||
15,235 | ||||||||
|
| |||||||
TOTAL SHORT–TERM |
| $ | 77,728 | |||||
(Cost: $77,728) | ||||||||
TOTAL INVESTMENT |
| $ | 1,237,877 | |||||
(Cost: $1,207,724) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 2.5% |
| 31,140 | ||||||
NET ASSETS – 100.0% |
| $ | 1,269,017 |
Notes to Schedule of Investments
(A) | Zero coupon bond. |
(B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. |
(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, 2014. |
(E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
2014 | SEMIANNUAL REPORT | 103 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Municipal High Income Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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 | $ | — | $ | 1,160,149 | $ | — | ||||||
Short-Term Securities | — | 77,728 | — | |||||||||
Total | $ | — | $ | 1,237,877 | $ | — |
During the period ended September 30, 2014, securities totaling $26,775 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 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 | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.0% | |||
Industrials | 26.3% | |||
Consumer Discretionary | 21.6% | |||
Information Technology | 16.9% | |||
Financials | 11.1% | |||
Health Care | 10.4% | |||
Energy | 5.5% | |||
Consumer Staples | 3.2% | |||
Cash and Cash Equivalents | 5.0% |
Lipper Rankings
Category: Lipper Small-Cap Growth Funds | Rank | Percentile | ||
1 Year | 362/526 | 69 | ||
3 Year | 341/461 | 74 | ||
5 Year | 185/410 | 46 | ||
10 Year | 36/271 | 14 |
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 | |||
Vail Resorts, Inc. | Consumer Discretionary | |||
Ultimate Software Group, Inc. (The) | Information Technology | |||
SVB Financial Group | Financials | |||
Landstar System, Inc. | Industrials | |||
DexCom, Inc. | Health Care | |||
Cepheid | Health Care | |||
Jack Henry & Associates, Inc. | Information Technology | |||
Portfolio Recovery Associates, Inc. | Industrials | |||
Bank of the Ozarks, Inc. | Financials | |||
Waste Connections, Inc. | Industrials |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 105 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Small Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Air Freight & Logistics – 1.5% |
| |||||||
Hub Group, Inc. (A) | 398 | $ | 16,127 | |||||
|
| |||||||
Apparel Retail – 2.8% |
| |||||||
AnnTaylor Stores Corp. (A) | 342 | 14,052 | ||||||
Zumiez, Inc. (A) | 535 | 15,033 | ||||||
|
| |||||||
29,085 | ||||||||
|
| |||||||
Apparel, Accessories & Luxury Goods – 2.7% |
| |||||||
Carter’s, Inc. | 198 | 15,333 | ||||||
Fifth & Pacific Co., Inc. (A) | 511 | 13,393 | ||||||
|
| |||||||
28,726 | ||||||||
|
| |||||||
Application Software – 5.5% |
| |||||||
SS&C Technologies Holdings, Inc. (A) | 345 | 15,146 | ||||||
Tyler Technologies, Inc. (A) | 122 | 10,741 | ||||||
Ultimate Software Group, Inc. (The) (A)(B) | 221 | 31,210 | ||||||
|
| |||||||
57,097 | ||||||||
|
| |||||||
Asset Management & Custody Banks – 1.3% |
| |||||||
Financial Engines, Inc. | 151 | 5,166 | ||||||
WisdomTree Investment, Inc. (A) | 741 | 8,433 | ||||||
|
| |||||||
13,599 | ||||||||
|
| |||||||
Automotive Retail – 3.0% |
| |||||||
Asbury Automotive Group, Inc. (A) | 218 | 14,069 | ||||||
Lithia Motors, Inc. | 236 | 17,878 | ||||||
|
| |||||||
31,947 | ||||||||
|
| |||||||
Biotechnology – 2.6% |
| |||||||
ACADIA Pharmaceuticals, Inc. (A) | 144 | 3,556 | ||||||
Cepheid (A) | 532 | 23,417 | ||||||
|
| |||||||
26,973 | ||||||||
|
| |||||||
Broadcasting – 0.7% |
| |||||||
Cumulus Media Inc., Class A (A) | 1,054 | 4,248 | ||||||
Townsquare Media, Inc. (A) | 289 | 3,479 | ||||||
|
| |||||||
7,727 | ||||||||
|
| |||||||
Building Products – 1.0% |
| |||||||
Armstrong World Industries, Inc. (A) | 179 | 10,046 | ||||||
|
| |||||||
Communications Equipment – 1.5% |
| |||||||
Ciena Corp. (A) | 615 | 10,285 | ||||||
Finisar Corp. (A) | 353 | 5,877 | ||||||
|
| |||||||
16,162 | ||||||||
|
| |||||||
Construction & Engineering – 1.8% |
| |||||||
Primoris Services Corp. | 700 | 18,785 | ||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 3.3% |
| |||||||
Wabash National Corp. (A) | 1,132 | 15,082 | ||||||
Westinghouse Air Brake Technologies Corp. | 248 | 20,125 | ||||||
|
| |||||||
35,207 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Consumer Finance – 1.4% |
| |||||||
First Cash Financial Services, Inc. (A) | 256 | $ | 14,356 | |||||
|
| |||||||
Data Processing & Outsourced Services – 2.2% |
| |||||||
Jack Henry & Associates, Inc. (B) | 418 | 23,238 | ||||||
|
| |||||||
Distributors – 1.3% |
| |||||||
Pool Corp. | 258 | 13,917 | ||||||
|
| |||||||
Diversified Support Services – 2.2% |
| |||||||
Portfolio Recovery Associates, Inc. (A) | 441 | 23,011 | ||||||
|
| |||||||
Electrical Components & Equipment – 0.1% |
| |||||||
Powell Industries, Inc. | 22 | 915 | ||||||
|
| |||||||
Electronic Equipment & Instruments – 0.6% |
| |||||||
MTS Systems Corp. | 97 | 6,628 | ||||||
|
| |||||||
Electronic Manufacturing Services – 1.2% |
| |||||||
IPG Photonics Corp. (A) | 187 | 12,889 | ||||||
|
| |||||||
Environmental & Facilities Services – 2.5% |
| |||||||
Team, Inc. (A) | 142 | 5,391 | ||||||
Waste Connections, Inc. | 427 | 20,723 | ||||||
|
| |||||||
26,114 | ||||||||
|
| |||||||
Food Distributors – 1.1% |
| |||||||
United Natural Foods, Inc. (A) | 192 | 11,818 | ||||||
|
| |||||||
General Merchandise Stores – 0.7% |
| |||||||
Burlington Stores, Inc. (A) | 197 | 7,832 | ||||||
|
| |||||||
Health Care Equipment – 4.6% |
| |||||||
Cyberonics, Inc. (A) | 102 | 5,239 | ||||||
DexCom, Inc. (A) | 607 | 24,273 | ||||||
Heartware International, Inc. (A) | 207 | 16,030 | ||||||
Novadaq Technologies, Inc. (A) | 238 | 3,018 | ||||||
|
| |||||||
48,560 | ||||||||
|
| |||||||
Health Care Facilities – 0.7% |
| |||||||
Surgical Care Affiliates, Inc. (A) | 285 | 7,615 | ||||||
|
| |||||||
Health Care Supplies – 1.5% |
| |||||||
Endologix, Inc. (A) | 317 | 3,365 | ||||||
Spectranetics Corp. (The) (A) | 483 | 12,834 | ||||||
|
| |||||||
16,199 | ||||||||
|
| |||||||
Health Care Technology – 1.0% |
| |||||||
Medidata Solutions, Inc. (A) | 237 | 10,495 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 1.1% |
| |||||||
La Quinta Holdings, Inc. (A) | 607 | 11,529 | ||||||
|
| |||||||
Human Resource & Employment Services – 0.9% |
| |||||||
Kforce, Inc. | 509 | 9,951 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Industrial Machinery – 4.2% |
| |||||||
CLARCOR, Inc. | 285 | $ | 17,991 | |||||
Graham Corp. | 333 | 9,586 | ||||||
RBC Bearings, Inc. | 112 | 6,322 | ||||||
Tennant Co. | 140 | 9,374 | ||||||
|
| |||||||
43,273 | ||||||||
|
| |||||||
Internet Software & Services – 3.0% |
| |||||||
ChannelAdvisor Corp. (A) | 332 | 5,447 | ||||||
Demandware, Inc. (A) | 338 | 17,186 | ||||||
Textura Corp. (A) | 323 | 8,532 | ||||||
|
| |||||||
31,165 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.0% |
| |||||||
Moelis & Co., Class A | 299 | 10,211 | ||||||
|
| |||||||
Leisure Facilities – 4.0% |
| |||||||
Intrawest Resorts Holdings, Inc. (A) | 814 | 7,874 | ||||||
Vail Resorts, Inc. (B) | 396 | 34,349 | ||||||
|
| |||||||
42,223 | ||||||||
|
| |||||||
Office Services & Supplies – 1.4% |
| |||||||
HNI Corp. | 400 | 14,378 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 3.0% |
| |||||||
Dril-Quip, Inc. (A) | 98 | 8,788 | ||||||
Matrix Service Co. (A) | 836 | 20,157 | ||||||
Natural Gas Services Group, Inc. (A) | 116 | 2,802 | ||||||
|
| |||||||
31,747 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 2.5% |
| |||||||
Athlon Energy, Inc. (A) | 317 | 18,447 | ||||||
RSP Permian, Inc. (A) | 309 | 7,898 | ||||||
|
| |||||||
26,345 | ||||||||
|
| |||||||
Packaged Foods & Meats – 2.1% |
| |||||||
B&G Foods, Inc. | 356 | 9,794 | ||||||
Lance, Inc. (B) | 459 | 12,164 | ||||||
|
| |||||||
21,958 | ||||||||
|
| |||||||
Real Estate Services – 0.6% |
| |||||||
RE/MAX Holdings, Inc., Class A | 198 | 5,877 | ||||||
|
| |||||||
Regional Banks – 6.8% | ||||||||
Bank of the Ozarks, Inc. | 698 | 22,004 | ||||||
Cathay General Bancorp | 503 | 12,492 | ||||||
IBERIABANK Corp. | 188 | 11,771 | ||||||
SVB Financial Group (A) | 237 | 26,527 | ||||||
|
| |||||||
72,794 | ||||||||
|
| |||||||
Restaurants – 4.5% |
| |||||||
Del Frisco’s Restaurant Group, Inc. (A) | 375 | 7,182 | ||||||
Fiesta Restaurant Group, Inc. (A) | 280 | 13,934 | ||||||
Sonic Corp. | 740 | 16,535 | ||||||
Zoe’s Kitchen, Inc. (A) | 283 | 8,720 | ||||||
|
| |||||||
46,371 | ||||||||
|
|
106 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Small Cap Growth Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS (Continued) | Shares | Value | ||||||
Semiconductors – 2.4% |
| |||||||
Diodes, Inc. (A) | 195 | $ | 4,661 | |||||
Microsemi Corp. (A) | 320 | 8,131 | ||||||
Power Integrations, Inc. (B) | 233 | 12,540 | ||||||
|
| |||||||
25,332 | ||||||||
|
| |||||||
Specialty Stores – 0.8% |
| |||||||
Cabela’s, Inc., | 140 | 8,222 | ||||||
|
| |||||||
Systems Software – 0.5% |
| |||||||
A10 Networks, Inc. (A) | 547 | 4,986 | ||||||
|
| |||||||
Trading Companies & Distributors – 3.6% |
| |||||||
Rush Enterprises, Inc. (A) | 615 | 20,578 | ||||||
Watsco, Inc. | 199 | 17,133 | ||||||
|
| |||||||
37,711 | ||||||||
|
| |||||||
Trucking – 3.8% |
| |||||||
Landstar System, Inc. | 349 | 25,202 | ||||||
Saia, Inc. (A) | 299 | 14,813 | ||||||
|
| |||||||
40,015 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS – 95.0% |
| $ | 999,156 | |||||
(Cost: $750,664) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 5.0% |
| |||||||
American Honda Finance Corp. (GTD by Honda Motor Co.), | $ | 6,000 | $ | 6,000 | ||||
Becton Dickinson & Co., | 5,000 | 5,000 | ||||||
Bemis Co., Inc., | 5,000 | 4,999 | ||||||
BorgWarner, Inc., | 5,000 | 4,999 | ||||||
CVS Caremark Corp., | 2,000 | 2,000 | ||||||
Danaher Corp., | 2,000 | 2,000 | ||||||
Diageo Capital plc (GTD by Diageo plc): | ||||||||
0.250%, 10–9–14 (C) | 3,000 | 3,000 | ||||||
0.270%, 10–10–14 (C) | 5,000 | 5,000 | ||||||
DTE Energy Co. (GTD by Detroit Edison Co.), | 5,000 | 4,999 | ||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | 6,000 | 5,999 | ||||||
Kroger Co. (The), | 1,267 | 1,267 | ||||||
Virginia Electric and Power Co., | 7,000 | 7,000 | ||||||
|
| |||||||
52,263 | ||||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Master Note – 0.2% |
| |||||||
Toyota Motor Credit Corp., | $ | 2,283 | $ | 2,283 | ||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 54,546 | |||||
(Cost: $54,547) | ||||||||
TOTAL INVESTMENT |
| $ | 1,053,702 | |||||
(Cost: $805,211) | ||||||||
LIABILITIES, NET OF CASH |
| (1,954 | ) | |||||
NET ASSETS – 100.0% |
| $ | 1,051,748 |
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 for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
(C) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
The following total return swap agreements were outstanding at September 30, 2014:
Counterparty | Number of Shares | Underlying Security | Termination Date | Notional Amount | Financing Fee# | Unrealized Depreciation | ||||||||||||||
JPMorgan Chase Bank N.A. | 112 | Biotech Custom Index | 9–9–15 | $ | 11,262 | 1M LIBOR less 50 bps | $ | (570 | ) | |||||||||||
|
|
# | 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 table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 999,156 | $ | — | $ | — | ||||||
Short-Term Securities | — | 54,546 | — | |||||||||
Total | $ | 999,156 | $ | 54,546 | $ | — | ||||||
Liabilities | ||||||||||||
Swap Agreements | $ | — | $ | 570 | $ | — |
As of September 30, 2014, there were no transfers between Level 1 and 2 during the period.
The following acronyms are used throughout this schedule:
OTC = Over The Counter
GTD = Guaranteed
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 107 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.2% | |||
Financials | 31.1% | |||
Industrials | 19.5% | |||
Consumer Discretionary | 13.3% | |||
Energy | 9.2% | |||
Information Technology | 8.1% | |||
Materials | 7.0% | |||
Health Care | 5.9% | |||
Utilities | 1.1% | |||
Cash and Cash Equivalents | 4.8% |
Lipper Rankings
Category: Lipper Small-Cap Value Funds | Rank | Percentile | ||
1 Year | 69/286 | 25 | ||
3 Year | 140/245 | 57 | ||
5 Year | 151/194 | 78 | ||
10 Year | 75/135 | 56 |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
Company | Sector | |||
Portfolio Recovery Associates, Inc. | Industrials | |||
Armstrong World Industries, Inc. | Industrials | |||
Atlas Pipeline Partners L.P. | Energy | |||
Teradyne, Inc. | Information Technology | |||
LifePoint Hospitals, Inc. | Health Care | |||
Western Alliance Bancorporation | Financials | |||
Matson, Inc. | Industrials | |||
Saia, Inc. | Industrials | |||
Carmike Cinemas, Inc. | Consumer Discretionary | |||
SunCoke Energy Partners L.P. | Materials |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
108 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Aerospace & Defense – 0.5% |
| |||||||
Triumph Group, Inc. | 22 | $ | 1,405 | |||||
|
| |||||||
Apparel Retail – 2.8% |
| |||||||
Abercrombie & Fitch Co., Class A | 155 | 5,626 | ||||||
Lands’ End, Inc. (A) | 65 | 2,685 | ||||||
|
| |||||||
8,311 | ||||||||
|
| |||||||
Application Software – 1.2% |
| |||||||
Synchronoss Technologies, Inc. (A) | 77 | 3,525 | ||||||
|
| |||||||
Auto Parts & Equipment – 3.2% |
| |||||||
Dana Holding Corp. | 210 | 4,028 | ||||||
Visteon Corp. (A) | 56 | 5,475 | ||||||
|
| |||||||
9,503 | ||||||||
|
| |||||||
Building Products – 5.4% |
| |||||||
Armstrong World Industries, Inc. (A) | 156 | 8,754 | ||||||
Continental Building Products, Inc. (A) | 213 | 3,110 | ||||||
NCI Building Systems, Inc. (A) | 222 | 4,298 | ||||||
|
| |||||||
16,162 | ||||||||
|
| |||||||
Casinos & Gaming – 1.4% |
| |||||||
Pinnacle Entertainment, Inc. (A) | 168 | 4,225 | ||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Manitowoc Co., Inc. (The) | 227 | 5,319 | ||||||
Terex Corp. | 67 | 2,125 | ||||||
|
| |||||||
7,444 | ||||||||
|
| |||||||
Consumer Finance – 0.6% |
| |||||||
JG Wentworth Co. (A) | 133 | 1,648 | ||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
CoreLogic, Inc. (A) | 61 | 1,657 | ||||||
|
| |||||||
Diversified Support Services – 3.4% |
| |||||||
Portfolio Recovery Associates, Inc. (A) | 193 | 10,065 | ||||||
|
| |||||||
Forest Products – 1.1% |
| |||||||
Boise Cascade Co. (A) | 107 | 3,219 | ||||||
|
| |||||||
Gas Utilities – 1.1% |
| |||||||
Southwest Gas Corp. | 65 | 3,151 | ||||||
|
| |||||||
Health Care Facilities – 5.9% |
| |||||||
Community Health Systems, Inc. (A) | 84 | 4,597 | ||||||
HealthSouth Corp. | 123 | 4,542 | ||||||
LifePoint Hospitals, Inc. (A) | 118 | 8,172 | ||||||
|
| |||||||
17,311 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 1.7% |
| |||||||
Greenhill & Co., Inc. | 110 | 5,100 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Life & Health Insurance – 2.8% |
| |||||||
American Equity Investment Life Holding Co. | 161 | $ | 3,684 | |||||
Fidelity & Guaranty Life | 209 | 4,458 | ||||||
|
| |||||||
8,142 | ||||||||
|
| |||||||
Marine – 2.6% |
| |||||||
Matson, Inc. | 309 | 7,722 | ||||||
|
| |||||||
Metal & Glass Containers – 0.9% |
| |||||||
Owens-Illinois, Inc. (A) | 100 | 2,602 | ||||||
|
| |||||||
Movies & Entertainment – 3.8% |
| |||||||
Carmike Cinemas, Inc. (A) | 236 | 7,320 | ||||||
Cinemark Holdings, Inc. | 101 | 3,448 | ||||||
|
| |||||||
10,768 | ||||||||
|
| |||||||
Office REITs – 3.6% |
| |||||||
Corporate Office Properties Trust | 175 | 4,511 | ||||||
Lexington Corp. Properties Trust | 332 | 3,246 | ||||||
Parkway Properties, Inc. | 158 | 2,975 | ||||||
|
| |||||||
10,732 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 2.7% |
| |||||||
Basic Energy Services, Inc. (A) | 111 | 2,416 | ||||||
GulfMark Offshore, Inc. | 57 | 1,778 | ||||||
Key Energy Services, Inc. (A) | 457 | 2,211 | ||||||
McDermott International, Inc. (A) | 248 | 1,416 | ||||||
|
| |||||||
7,821 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 2.0% |
| |||||||
Western Refining, Inc. | 140 | 5,883 | ||||||
|
| |||||||
Oil & Gas Storage & Transportation – 4.5% |
| |||||||
Atlas Energy L.P. | 112 | 4,924 | ||||||
Atlas Pipeline Partners L.P. | 231 | 8,411 | ||||||
|
| |||||||
13,335 | ||||||||
|
| |||||||
Property & Casualty Insurance – 1.8% |
| |||||||
Argo Group International Holdings Ltd. | 107 | 5,393 | ||||||
|
| |||||||
Real Estate Operating Companies – 1.5% |
| |||||||
Forest City Enterprises, Inc., Class A (A) | 229 | 4,485 | ||||||
|
| |||||||
Regional Banks – 9.9% |
| |||||||
First Horizon National Corp. | 435 | 5,336 | ||||||
Synovus Financial Corp. | 159 | 3,765 | ||||||
Texas Capital Bancshares, Inc. (A) | 88 | 5,087 | ||||||
Webster Financial Corp. | 143 | 4,179 | ||||||
Western Alliance Bancorporation (A) | 329 | 7,851 | ||||||
Zions Bancorporation | 106 | 3,077 | ||||||
|
| |||||||
29,295 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Reinsurance – 5.3% |
| |||||||
Endurance Specialty Holdings Ltd. | 92 | $ | 5,060 | |||||
Maiden Holdings Ltd. | 400 | 4,426 | ||||||
Reinsurance Group of America, Inc. | 75 | 6,042 | ||||||
|
| |||||||
15,528 | ||||||||
|
| |||||||
Restaurants – 2.1% |
| |||||||
Krispy Kreme Doughnuts, Inc. (A) | 367 | 6,291 | ||||||
|
| |||||||
Retail REITs – 1.5% |
| |||||||
Kite Realty Group Trust | 185 | 4,489 | ||||||
|
| |||||||
Semiconductor Equipment – 2.7% |
| |||||||
Teradyne, Inc. | 424 | 8,213 | ||||||
|
| |||||||
Semiconductors – 2.5% |
| |||||||
Freescale Semiconductor, Inc. (A) | 142 | 2,775 | ||||||
Spansion, Inc. (A) | 204 | 4,649 | ||||||
|
| |||||||
7,424 | ||||||||
|
| |||||||
Specialized REITs – 1.4% |
| |||||||
Strategic Hotels & Resorts, Inc. (A) | 357 | 4,156 | ||||||
|
| |||||||
Specialty Chemicals – 2.8% |
| |||||||
Cytec Industries, Inc. | 94 | 4,427 | ||||||
Kraton Performance Polymers, Inc. (A) | 219 | 3,904 | ||||||
|
| |||||||
8,331 | ||||||||
|
| |||||||
Steel – 2.2% |
| |||||||
SunCoke Energy Partners L.P. | 217 | 6,386 | ||||||
|
| |||||||
Technology Distributors – 1.1% |
| |||||||
Insight Enterprises, Inc. (A) | 140 | 3,173 | ||||||
|
| |||||||
Trucking – 5.1% |
| |||||||
Con-way, Inc. | 46 | 2,180 | ||||||
Marten Transport Ltd. | 309 | 5,507 | ||||||
Saia, Inc. (A) | 150 | 7,419 | ||||||
|
| |||||||
15,106 | ||||||||
|
| |||||||
TOTAL COMMON |
| $ | 278,001 | |||||
(Cost: $224,479) | ||||||||
INVESTMENT FUNDS |
| |||||||
Asset Management & Custody Banks – 1.0% |
| |||||||
THL Credit, Inc. | 224 | 2,883 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| $ | 2,883 | |||||
(Cost: $2,871) |
|
2014 | SEMIANNUAL REPORT | 109 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Small Cap Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
SHORT-TERM SECURITIES | Principal | Value | ||||||
Commercial Paper – 2.8% |
| |||||||
GlaxoSmithKline Finance plc (GTD by GlaxoSmithKline plc), | $ | 3,000 | $ | 3,000 | ||||
McCormick & Co., Inc., | 5,000 | 5,000 | ||||||
|
| |||||||
8,000 | ||||||||
|
| |||||||
Master Note – 1.3% |
| |||||||
Toyota Motor Credit Corp., | 3,836 | 3,836 | ||||||
|
|
SHORT-TERM SECURITIES (Continued) | Principal | Value | ||||||
Municipal Obligations – Taxable – 0.8% |
| |||||||
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)), | $ | 2,493 | $ | 2,493 | ||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 14,329 | |||||
(Cost: $14,329) | ||||||||
TOTAL INVESTMENT |
| $ | 295,213 | |||||
(Cost: $241,679) | ||||||||
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1%) |
| (365 | ) | |||||
NET ASSETS – 100.0% |
| $ | 294,848 |
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, 2014. |
(C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. 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, 2014. 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 | $ | 278,001 | $ | — | $ | — | ||||||
Investment Funds | 2,883 | — | — | |||||||||
Short-Term Securities | — | 14,329 | — | |||||||||
Total | $ | 280,884 | $ | 14,329 | $ | — |
As of September 30, 2014, 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.
110 | SEMIANNUAL REPORT | 2014 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 95.6% | |||
Consumer Discretionary | 24.9% | |||
Information Technology | 23.5% | |||
Health Care | 17.3% | |||
Industrials | 15.7% | |||
Consumer Staples | 7.8% | |||
Energy | 3.9% | |||
Telecommunication Services | 2.5% | |||
Cash and Cash Equivalents | 4.4% |
Lipper Rankings
Category: Lipper Large-Cap Growth Funds | Rank | Percentile | ||
1 Year | 123/715 | 18 | ||
3 Year | 355/613 | 58 | ||
5 Year | 402/547 | 74 |
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 | |||
Visa, Inc., Class A | Information Technology | |||
MasterCard, Inc., Class A | Information Technology | |||
HCA Holdings, Inc. | Health Care | |||
Union Pacific Corp. | Industrials | |||
NIKE, Inc., Class B | Consumer Discretionary | |||
SBA Communications Corp. | Telecommunication Services | |||
Amazon.com, Inc. | Consumer Discretionary | |||
Allergan, Inc. | Health Care |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
2014 | SEMIANNUAL REPORT | 111 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Tax-Managed Equity Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Aerospace & Defense – 2.6% |
| |||||||
Boeing Co. (The) | 5 | $ | 693 | |||||
Precision Castparts Corp. | 3 | 751 | ||||||
|
| |||||||
1,444 | ||||||||
|
| |||||||
Apparel Retail – 1.6% |
| |||||||
Limited Brands, Inc. | 13 | 864 | ||||||
|
| |||||||
Application Software – 2.0% |
| |||||||
Adobe Systems, Inc. (A) | 16 | 1,093 | ||||||
|
| |||||||
Biotechnology – 8.4% |
| |||||||
Alexion Pharmaceuticals, Inc. (A) | 3 | 547 | ||||||
Biogen Idec, Inc. (A) | 4 | 1,257 | ||||||
Gilead Sciences, Inc. (A) | 18 | 1,882 | ||||||
Incyte Corp. (A) | 7 | 343 | ||||||
KYTHERA Biopharmaceuticals, Inc. (A) | 9 | 282 | ||||||
Vertex Pharmaceuticals, Inc. (A) | 3 | 326 | ||||||
|
| |||||||
4,637 | ||||||||
|
| |||||||
Brewers – 1.5% |
| |||||||
Anheuser-Busch InBev S.A. ADR | 7 | 811 | ||||||
|
| |||||||
Broadcasting – 1.7% |
| |||||||
CBS Corp., Class B | 18 | 940 | ||||||
|
| |||||||
Cable & Satellite – 3.9% |
| |||||||
Comcast Corp., Class A | 20 | 1,065 | ||||||
Time Warner Cable, Inc. | 7 | 1,047 | ||||||
|
| |||||||
2,112 | ||||||||
|
| |||||||
Casinos & Gaming – 2.7% |
| |||||||
Las Vegas Sands, Inc. | 16 | 981 | ||||||
Wynn Resorts Ltd. | 3 | 516 | ||||||
|
| |||||||
1,497 | ||||||||
|
| |||||||
Communications Equipment – 0.8% |
| |||||||
F5 Networks, Inc. (A) | 4 | 416 | ||||||
|
| |||||||
Construction Machinery & Heavy |
| |||||||
Caterpillar, Inc. | 8 | 743 | ||||||
|
| |||||||
Consumer Electronics – 1.4% |
| |||||||
Harman International Industries, Inc. | 8 | 784 | ||||||
|
| |||||||
Data Processing & Outsourced |
| |||||||
FleetCor Technologies, Inc. (A) | 7 | 995 | ||||||
MasterCard, Inc., Class A | 24 | 1,774 | ||||||
Visa, Inc., Class A | 9 | 1,852 | ||||||
|
| |||||||
4,621 | ||||||||
|
| |||||||
Food Retail – 1.4% |
| |||||||
Casey’s General Stores, Inc. | 10 | 739 | ||||||
|
| |||||||
Footwear – 2.6% |
| |||||||
NIKE, Inc., Class B | 16 | 1,415 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Health Care Facilities – 4.6% |
| |||||||
HCA Holdings, Inc. (A) | 21 | $ | 1,467 | |||||
Universal Health Services, Inc., Class B | 10 | 1,045 | ||||||
|
| |||||||
2,512 | ||||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 2.2% |
| |||||||
Hilton Worldwide Holdings, Inc. (A) | 27 | 660 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 6 | 534 | ||||||
|
| |||||||
1,194 | ||||||||
|
| |||||||
Hypermarkets & Super Centers – 1.1% |
| |||||||
Costco Wholesale Corp. | 5 | 609 | ||||||
|
| |||||||
Industrial Machinery – 3.5% |
| |||||||
Flowserve Corp. | 7 | 515 | ||||||
Pall Corp. | 7 | 599 | ||||||
Pentair, Inc. | 12 | 818 | ||||||
|
| |||||||
1,932 | ||||||||
|
| |||||||
Internet Retail – 6.3% |
| |||||||
Amazon.com, Inc. (A) | 4 | 1,387 | ||||||
JD.com, Inc. ADR (A) | 34 | 871 | ||||||
priceline.com, Inc. (A) | 1 | 1,159 | ||||||
|
| |||||||
3,417 | ||||||||
|
| |||||||
Internet Software & Services – 6.5% |
| |||||||
Facebook, Inc., Class A (A) | 14 | 1,111 | ||||||
Google, Inc., Class A (A) | 1 | 824 | ||||||
Google, Inc., Class C (A) | 1 | 808 | ||||||
Twitter, Inc. (A) | 16 | 815 | ||||||
|
| |||||||
3,558 | ||||||||
|
| |||||||
Movies & Entertainment – 1.9% |
| |||||||
Twenty-First Century Fox, Inc., Class A | 30 | 1,042 | ||||||
|
| |||||||
Oil & Gas Equipment & Services – 3.9% |
| |||||||
Halliburton Co. | 14 | 895 | ||||||
Schlumberger Ltd. | 12 | 1,221 | ||||||
|
| |||||||
2,116 | ||||||||
|
| |||||||
Packaged Foods & Meats – 0.9% |
| |||||||
Mead Johnson Nutrition Co. | 5 | 495 | ||||||
|
| |||||||
Personal Products – 1.3% |
| |||||||
Estee Lauder Co., Inc. (The), Class A | 9 | 687 | ||||||
|
| |||||||
Pharmaceuticals – 4.3% |
| |||||||
Allergan, Inc. | 8 | 1,355 | ||||||
Bristol-Myers Squibb Co. | 19 | 972 | ||||||
|
| |||||||
2,327 | ||||||||
|
| |||||||
Railroads – 6.5% |
| |||||||
Canadian Pacific Railway Ltd. | 6 | 1,245 | ||||||
Kansas City Southern | 7 | 837 | ||||||
Union Pacific Corp. | 13 | 1,447 | ||||||
|
| |||||||
3,529 | ||||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Restaurants – 0.6% |
| |||||||
Starbucks Corp. | 4 | $ | 312 | |||||
|
| |||||||
Semiconductor Equipment – 1.7% |
| |||||||
Applied Materials, Inc. | 43 | 923 | ||||||
|
| |||||||
Technology Hardware, Storage & |
| |||||||
Apple, Inc. | 22 | 2,179 | ||||||
|
| |||||||
Tobacco – 1.6% |
| |||||||
Philip Morris International, Inc. | 11 | 916 | ||||||
|
| |||||||
Trucking – 1.7% |
| |||||||
J.B. Hunt Transport Services, Inc. | 13 | 940 | ||||||
|
| |||||||
Wireless Telecommunication Service – 2.5% |
| |||||||
SBA Communications Corp. (A) | 13 | 1,387 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 52,191 | |||||
(Cost: $37,870) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Master Note – 2.8% |
| |||||||
Toyota Motor Credit Corp., | $ | 1,557 | 1,557 | |||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 1,557 | |||||
(Cost: $1,557) | ||||||||
TOTAL INVESTMENT |
| $ | 53,748 | |||||
(Cost: $39,427) | ||||||||
CASH AND OTHER ASSETS, |
| 899 | ||||||
NET ASSETS – 100.0% |
| $ | 54,647 |
112 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Tax-Managed Equity Fund (in thousands) | SEPTEMBER 30, 2014 (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, 2014. 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, 2014. 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 | $ | 52,191 | $ | — | $ | — | ||||||
Short-Term Securities | — | 1,557 | — | |||||||||
Total | $ | 52,191 | $ | 1,557 | $ | — |
As of September 30, 2014, 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.
2014 | SEMIANNUAL REPORT | 113 |
Table of Contents
PORTFOLIO HIGHLIGHTS
ALL DATA IS AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
Asset Allocation
Stocks | 94.3% | |||
Financials | 23.3% | |||
Energy | 20.0% | |||
Health Care | 13.5% | |||
Information Technology | 11.9% | |||
Consumer Discretionary | 11.7% | |||
Consumer Staples | 8.2% | |||
Materials | 5.7% | |||
Cash and Cash Equivalents | 5.7% |
Lipper Rankings
Category: Lipper Large-Cap Value Funds | Rank | Percentile | ||
1 Year | 15/478 | 4 | ||
3 Year | 60/421 | 15 | ||
5 Year | 106/373 | 29 | ||
10 Year | 61/246 | 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 | |||
Western Digital Corp. | Information Technology | |||
Citigroup, Inc. | Financials | |||
Capital One Financial Corp. | Financials | |||
SanDisk Corp. | Information Technology | |||
JPMorgan Chase & Co. | Financials | |||
Time Warner Cable, Inc. | Consumer Discretionary | |||
Philip Morris International, Inc. | Consumer Staples | |||
Occidental Petroleum Corp. | Energy | |||
Teva Pharmaceutical Industries Ltd. ADR | Health Care | |||
Xerox Corp. | Information Technology |
See your advisor or www.ivyfunds.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
114 | SEMIANNUAL REPORT | 2014 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
COMMON STOCKS | Shares | Value | ||||||
Asset Management & Custody Banks – 2.4% |
| |||||||
Blackstone Group L.P. (The) | 191 | $ | 6,007 | |||||
State Street Corp. | 23 | 1,656 | ||||||
|
| |||||||
7,663 | ||||||||
|
| |||||||
Biotechnology – 2.2% |
| |||||||
Amgen, Inc. (A) | 49 | 6,925 | ||||||
|
| |||||||
Cable & Satellite – 3.8% |
| |||||||
Time Warner Cable, Inc. (A) | 85 | 12,125 | ||||||
|
| |||||||
Consumer Finance – 4.4% |
| |||||||
Capital One Financial Corp. | 171 | 13,973 | ||||||
|
| |||||||
Department Stores – 1.9% |
| |||||||
Macy’s, Inc. (A) | 101 | 5,882 | ||||||
|
| |||||||
Diversified Chemicals – 3.0% |
| |||||||
Dow Chemical Co. (The) | 183 | 9,586 | ||||||
|
| |||||||
Drug Retail – 2.8% |
| |||||||
CVS Caremark Corp. | 111 | 8,827 | ||||||
|
| |||||||
Electronic Equipment & Instruments – 3.0% |
| |||||||
Xerox Corp. | 731 | 9,671 | ||||||
|
| |||||||
General Merchandise Stores – 2.4% |
| |||||||
Target Corp. | 122 | 7,622 | ||||||
|
| |||||||
Health Care Distributors – 2.0% |
| |||||||
McKesson Corp. (A) | 32 | 6,249 | ||||||
|
| |||||||
Health Care Facilities – 2.2% |
| |||||||
HCA Holdings, Inc. (A)(B) | 99 | 6,989 | ||||||
|
| |||||||
Homebuilding – 1.6% |
| |||||||
Pulte Homes, Inc. | 285 | 5,024 | ||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 2.0% |
| |||||||
Wyndham Worldwide Corp. | 79 | 6,403 | ||||||
|
| |||||||
Integrated Oil & Gas – 3.3% |
| |||||||
Occidental Petroleum Corp. | 108 | 10,346 | ||||||
|
| |||||||
Life & Health Insurance – 2.4% |
| |||||||
MetLife, Inc. | 141 | 7,558 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Managed Health Care – 3.9% |
| |||||||
Humana, Inc. | 65 | $ | 8,443 | |||||
WellPoint, Inc. | 36 | 4,306 | ||||||
|
| |||||||
12,749 | ||||||||
|
| |||||||
Multi-Line Insurance – 2.7% |
| |||||||
American International Group, Inc. | 158 | 8,551 | ||||||
|
| |||||||
Oil & Gas Refining & Marketing – 5.8% |
| |||||||
HollyFrontier Corp. | 67 | 2,940 | ||||||
Marathon Petroleum Corp. (A) | 112 | 9,512 | ||||||
Phillips 66 | 73 | 5,936 | ||||||
|
| |||||||
18,388 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 10.9% |
| |||||||
Atlas Energy L.P. (A) | 206 | 9,064 | ||||||
Atlas Pipeline Partners L.P. | 257 | 9,352 | ||||||
MarkWest Energy Partners L.P. | 56 | 4,294 | ||||||
Regency Energy Partners L.P. | 295 | 9,636 | ||||||
VTTI Energy Partners L.P. (B) | 92 | 2,315 | ||||||
|
| |||||||
34,661 | ||||||||
|
| |||||||
Other Diversified Financial Services – 8.6% |
| |||||||
Citigroup, Inc. | 280 | 14,520 | ||||||
JPMorgan Chase & Co. | 211 | 12,681 | ||||||
|
| |||||||
27,201 | ||||||||
|
| |||||||
Pharmaceuticals – 3.2% |
| |||||||
Teva Pharmaceutical Industries Ltd. ADR | 187 | 10,024 | ||||||
|
| |||||||
Reinsurance – 2.8% |
| |||||||
Reinsurance Group of America, Inc. | 113 | 9,039 | ||||||
|
| |||||||
Soft Drinks – 1.9% |
| |||||||
Coca-Cola Enterprises, Inc. | 134 | 5,944 | ||||||
|
| |||||||
Specialty Chemicals – 2.7% |
| |||||||
LyondellBasell Industries N.V., Class A | 79 | 8,541 | ||||||
|
|
COMMON STOCKS (Continued) | Shares | Value | ||||||
Technology Hardware, Storage & |
| |||||||
SanDisk Corp. | 139 | $ | 13,586 | |||||
Western Digital Corp. (A) | 149 | 14,539 | ||||||
|
| |||||||
28,125 | ||||||||
|
| |||||||
Tobacco – 3.5% |
| |||||||
Philip Morris International, Inc. | 136 | 11,325 | ||||||
|
| |||||||
TOTAL COMMON |
| $ | 299,391 | |||||
(Cost: $231,993) | ||||||||
SHORT-TERM SECURITIES | Principal | |||||||
Commercial Paper – 3.9% |
| |||||||
Becton Dickinson & Co., | $ | 5,000 | 5,000 | |||||
DTE Energy Co. (GTD by Detroit Edison Co.), | 1,624 | 1,624 | ||||||
Mondelez International, Inc., | 1,730 | 1,730 | ||||||
Wisconsin Electric Power Co., | 4,000 | 4,000 | ||||||
|
| |||||||
12,354 | ||||||||
|
| |||||||
Master Note – 0.8% |
| |||||||
Toyota Motor Credit Corp., | 2,691 | 2,691 | ||||||
|
| |||||||
TOTAL SHORT-TERM |
| $ | 15,045 | |||||
(Cost: $15,045) | ||||||||
TOTAL INVESTMENT |
| $ | 314,436 | |||||
(Cost: $247,038) | ||||||||
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.0% |
| 3,178 | ||||||
NET ASSETS – 100.0% |
| $ | 317,614 |
Notes to Schedule of Investments
(A) | All or a portion of the security position is held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
(B) | No dividends were paid during the preceding 12 months. |
(C) | Rate shown is the yield to maturity at September 30, 2014. |
(D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2014. Date shown represents the date that the variable rate resets. |
2014 | SEMIANNUAL REPORT | 115 |
Table of Contents
SCHEDULE OF INVESTMENTS
Ivy Value Fund (in thousands) | SEPTEMBER 30, 2014 (UNAUDITED) |
The following written options were outstanding at September 30, 2014 (contracts and exercise prices unrounded):
Underlying Security | Counterparty, if OTC | Type | Number of Contracts | Expiration Month | Exercise Price | Premium Received | Value | |||||||||||||||||
Amgen, Inc. | N/A | Call | 56 | October 2014 | $ | 145.00 | $ | 10 | $ | (6 | ) | |||||||||||||
Atlas Energy L.P. | N/A | Call | 202 | October 2014 | 50.00 | 13 | (5 | ) | ||||||||||||||||
First Republic Bank | N/A | Put | 96 | November 2014 | 40.00 | 5 | (3 | ) | ||||||||||||||||
HCA Holdings, Inc. | N/A | Call | 141 | December 2014 | 75.00 | 32 | (27 | ) | ||||||||||||||||
Macy’s, Inc. | N/A | Call | 208 | November 2014 | 65.00 | 16 | (5 | ) | ||||||||||||||||
Marathon Petroleum Corp. | N/A | Call | 98 | October 2014 | 95.00 | 16 | (1 | ) | ||||||||||||||||
McKesson Corp. | N/A | Call | 161 | October 2014 | 200.00 | 37 | (17 | ) | ||||||||||||||||
Time Warner Cable, Inc. | N/A | Call | 196 | January 2015 | 170.00 | 23 | (7 | ) | ||||||||||||||||
Western Digital Corp. | N/A | Call | 89 | October 2014 | 105.00 | 17 | (1 | ) | ||||||||||||||||
|
| |||||||||||||||||||||||
$ | 169 | $ | (72 | ) | ||||||||||||||||||||
|
|
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2014. 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 | $ | 299,391 | $ | — | $ | — | ||||||
Short-Term Securities | — | 15,045 | — | |||||||||
Total | $ | 299,391 | $ | 15,045 | $ | — | ||||||
Liabilities | ||||||||||||
Written Options | $ | 57 | $ | 15 | $ | — |
As of September 30, 2014, 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
See Accompanying Notes to Financial Statements.
116 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands, except per share amounts) | Ivy Bond Fund | Ivy Core Equity Fund | Ivy Cundill Global Value Fund | Ivy Dividend Opportunities Fund | Ivy Emerging Markets Equity Fund(1) | Ivy European Opportunities Fund | Ivy Global Bond Fund | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 692,418 | $ | 1,047,753 | $ | 370,909 | $ | 405,357 | $ | 643,466 | $ | 187,663 | $ | 315,070 | ||||||||||||||
Investments at Value | 692,418 | 1,047,753 | 370,909 | 405,357 | 643,466 | 187,663 | 315,070 | |||||||||||||||||||||
Cash | 32 | 1 | 432 | 1 | 358 | 1 | 4,201 | |||||||||||||||||||||
Cash denominated in foreign currencies at value+ | — | — | — | — | 1,599 | — | — | |||||||||||||||||||||
Restricted cash | — | — | — | — | 54 | — | — | |||||||||||||||||||||
Investment securities sold receivable | — | 23,711 | — | — | — | 4,981 | — | |||||||||||||||||||||
Dividends and interest receivable | 4,772 | 1,043 | 1,202 | 857 | 524 | 540 | 3,675 | |||||||||||||||||||||
Capital shares sold receivable | 2,198 | 5,295 | 395 | 521 | 748 | 204 | 687 | |||||||||||||||||||||
Receivable from affiliates | 4 | 258 | 2 | 5 | 480 | — | 299 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | — | — | 1,296 | — | — | 1,310 | — | |||||||||||||||||||||
Unrealized appreciation on swap agreements | — | — | — | — | 274 | — | — | |||||||||||||||||||||
Variation margin receivable | 43 | — | — | — | — | — | — | |||||||||||||||||||||
Prepaid and other assets | 58 | 73 | 57 | 60 | 69 | 53 | 48 | |||||||||||||||||||||
Total Assets | 699,525 | 1,078,134 | 374,293 | 406,801 | 647,572 | 194,752 | 323,980 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 15,181 | 21,132 | — | — | 1,336 | 303 | 7,802 | |||||||||||||||||||||
Capital shares redeemed payable | 1,299 | 1,594 | 457 | 782 | 855 | 410 | 704 | |||||||||||||||||||||
Distributions payable | 101 | — | — | — | — | — | — | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 79 | 111 | 127 | 30 | 77 | 80 | 9 | |||||||||||||||||||||
Distribution and service fees payable | 5 | 9 | 3 | 4 | 5 | 1 | 2 | |||||||||||||||||||||
Shareholder servicing payable | 152 | 204 | 140 | 97 | 269 | 80 | 87 | |||||||||||||||||||||
Investment management fee payable | 10 | 20 | 9 | 8 | 17 | 5 | 5 | |||||||||||||||||||||
Accounting services fee payable | 15 | 23 | 11 | 11 | 15 | 6 | 9 | |||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | — | — | — | — | 46 | |||||||||||||||||||||
Written options at value+ | — | — | — | — | 2,798 | — | — | |||||||||||||||||||||
Other liabilities | 24 | 12 | 11 | 6 | 136 | 11 | 68 | |||||||||||||||||||||
Total Liabilities | 16,866 | 23,105 | 758 | 938 | 5,508 | 896 | 8,732 | |||||||||||||||||||||
Total Net Assets | $ | 682,659 | $ | 1,055,029 | $ | 373,535 | $ | 405,863 | $ | 642,064 | $ | 193,856 | $ | 315,248 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 699,493 | $ | 790,544 | $ | 335,501 | $ | 264,654 | $ | 618,748 | $ | 296,526 | $ | 316,604 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | (971 | ) | 257 | 391 | 1,776 | 5,714 | 3,346 | 1,155 | ||||||||||||||||||||
Accumulated net realized gain (loss) | (22,493 | ) | 76,982 | (14,726 | ) | 32,513 | (83,941 | ) | (120,264 | ) | (2,617 | ) | ||||||||||||||||
Net unrealized appreciation | 6,630 | 187,246 | 52,369 | 106,920 | 101,543 | 14,248 | 106 | |||||||||||||||||||||
Total Net Assets | $ | 682,659 | $ | 1,055,029 | $ | 373,535 | $ | 405,863 | $ | 642,064 | $ | 193,856 | $ | 315,248 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 60,617 | 38,548 | 18,739 | 14,742 | 29,634 | 5,189 | 19,433 | |||||||||||||||||||||
Class B | 672 | 799 | 188 | 596 | 589 | 69 | 586 | |||||||||||||||||||||
Class C | 2,010 | 11,230 | 1,317 | 2,290 | 2,845 | 348 | 3,497 | |||||||||||||||||||||
Class E | 347 | 551 | 68 | 228 | 15 | 3 | N/A | |||||||||||||||||||||
Class I | 560 | 14,487 | 440 | 1,050 | 7,806 | 906 | 6,832 | |||||||||||||||||||||
Class R | 24 | 147 | 19 | 16 | 61 | 11 | 44 | |||||||||||||||||||||
Class R6 | 120 | 204 | 113 | 16 | 410 | 66 | 25 | |||||||||||||||||||||
Class Y | 258 | 5,141 | 229 | 511 | 700 | 175 | 928 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $10.57 | $14.76 | $17.75 | $20.90 | $15.35 | $28.70 | $10.06 | |||||||||||||||||||||
Class B | $10.57 | $12.88 | $16.43 | $20.59 | $12.85 | $26.52 | $10.05 | |||||||||||||||||||||
Class C | $10.57 | $13.22 | $16.78 | $20.68 | $13.41 | $27.16 | $10.06 | |||||||||||||||||||||
Class E | $10.57 | $14.69 | $17.84 | $20.84 | $15.55 | $28.93 | N/A | |||||||||||||||||||||
Class I | $10.57 | $16.09 | $18.16 | $20.96 | $15.76 | $28.98 | $10.06 | |||||||||||||||||||||
Class R | $10.57 | $14.69 | $17.72 | $20.88 | $15.30 | $28.69 | $10.04 | |||||||||||||||||||||
Class R6 | $10.57 | $16.09 | $18.16 | $20.99 | $15.77 | $28.99 | $10.06 | |||||||||||||||||||||
Class Y | $10.57 | $15.73 | $18.00 | $20.93 | $15.63 | $28.93 | $10.06 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 685,975 | $ | 860,507 | $ | 319,762 | $ | 298,437 | $ | 543,377 | $ | 174,703 | $ | 314,885 | ||||||||||||||
Cash denominated in foreign currencies at cost | — | — | — | — | 1,491 | — | — | |||||||||||||||||||||
Written options premiums received at cost | — | — | — | — | 3,901 | — | — |
(1) | Consolidated Statement of Assets and Liabilities (See Note 6 to Financial Statements). |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 117 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands, except per share amounts) | 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 | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 240,439 | $ | 661,663 | $ | 9,275,480 | $ | 2,534,882 | $ | 481,371 | $ | 1,519,822 | $ | 1,708,493 | ||||||||||||||
Investments in affiliated securities at value+ | — | — | 36,506 | — | — | — | — | |||||||||||||||||||||
Investments at Value | 240,439 | 661,663 | 9,311,986 | 2,534,882 | 481,371 | 1,519,822 | 1,708,493 | |||||||||||||||||||||
Cash | 48 | 263 | 26,028 | — | * | 1 | 1 | 1 | ||||||||||||||||||||
Cash denominated in foreign currencies at value+ | — | — | 65 | 10,359 | — | * | — | — | ||||||||||||||||||||
Restricted cash | — | — | — | 75 | — | — | — | |||||||||||||||||||||
Investment securities sold receivable | 8,550 | 523 | 494,783 | 51,851 | 167 | 3,336 | — | |||||||||||||||||||||
Dividends and interest receivable | 1,168 | 6,273 | 155,913 | 7,250 | 1,140 | 1,066 | 16,798 | |||||||||||||||||||||
Capital shares sold receivable | 393 | 1,591 | 20,570 | 10,832 | 682 | 2,281 | 5,202 | |||||||||||||||||||||
Receivable from affiliates | 92 | 4 | 112 | 5 | — | 158 | 2 | |||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | 2,501 | 2,848 | 9,481 | — | 1,042 | — | — | |||||||||||||||||||||
Variation margin receivable | — | — | — | — | — | — | 168 | |||||||||||||||||||||
Prepaid and other assets | 52 | 53 | 449 | 103 | 69 | 83 | 122 | |||||||||||||||||||||
Total Assets | 253,243 | 673,218 | 10,019,387 | 2,615,357 | 484,472 | 1,526,747 | 1,730,786 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 2,678 | — | 228,447 | 39,036 | — | 6,830 | — | |||||||||||||||||||||
Capital shares redeemed payable | 207 | 580 | 44,299 | 3,587 | 467 | 1,740 | 4,197 | |||||||||||||||||||||
Distributions payable | — | — | 3,142 | — | — | — | 140 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 2 | 45 | 182 | 74 | 94 | 133 | 74 | |||||||||||||||||||||
Distribution and service fees payable | 2 | 5 | 87 | 14 | 3 | 10 | 14 | |||||||||||||||||||||
Shareholder servicing payable | 69 | 180 | 1,918 | 564 | 141 | 385 | 302 | |||||||||||||||||||||
Investment management fee payable | 5 | 13 | 137 | 58 | 11 | 28 | 21 | |||||||||||||||||||||
Accounting services fee payable | 8 | 15 | 23 | 23 | 12 | 23 | 23 | |||||||||||||||||||||
Other liabilities | 30 | 37 | 132 | 168 | 15 | 16 | 17 | |||||||||||||||||||||
Total Liabilities | 3,001 | 875 | 278,367 | 43,524 | 743 | 9,165 | 4,788 | |||||||||||||||||||||
Total Net Assets | $ | 250,242 | $ | 672,343 | $ | 9,741,020 | $ | 2,571,833 | $ | 483,729 | $ | 1,517,582 | $ | 1,725,998 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 229,996 | $ | 673,537 | $ | 9,536,116 | $ | 2,166,833 | $ | 422,632 | $ | 962,325 | $ | 1,733,028 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | 1,303 | 5,159 | (1 | ) | 13,724 | (83 | ) | (1,695 | ) | (461 | ) | |||||||||||||||||
Accumulated net realized gain (loss) | 7,049 | (20,061 | ) | 142,101 | 239,711 | 11,225 | 38,308 | (15,141 | ) | |||||||||||||||||||
Net unrealized appreciation | 11,894 | 13,708 | 62,804 | 151,565 | 49,955 | 518,644 | 8,572 | |||||||||||||||||||||
Total Net Assets | $ | 250,242 | $ | 672,343 | $ | 9,741,020 | $ | 2,571,833 | $ | 483,729 | $ | 1,517,582 | $ | 1,725,998 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 16,150 | 36,330 | 400,608 | 60,358 | 9,005 | 51,505 | 138,057 | |||||||||||||||||||||
Class B | 145 | 396 | 17,678 | 809 | 110 | 676 | 1,406 | |||||||||||||||||||||
Class C | 657 | 2,164 | 221,501 | 7,659 | 719 | 4,797 | 11,446 | |||||||||||||||||||||
Class E | N/A | 178 | 1,206 | 242 | 3 | 408 | 349 | |||||||||||||||||||||
Class I | 1,622 | 3,813 | 385,586 | 50,555 | 1,635 | 14,630 | 4,797 | |||||||||||||||||||||
Class R | 23 | 18 | 6,015 | 473 | 26 | 1,720 | 63 | |||||||||||||||||||||
Class R6 | 108 | 111 | 485 | 232 | 57 | 236 | 359 | |||||||||||||||||||||
Class Y | 340 | 453 | 112,959 | 12,834 | 297 | 7,116 | 2,240 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $13.14 | $15.47 | $8.50 | $19.37 | $41.07 | $18.73 | $10.87 | |||||||||||||||||||||
Class B | $13.13 | $15.21 | $8.50 | $17.45 | $36.35 | $15.73 | $10.87 | |||||||||||||||||||||
Class C | $13.13 | $15.30 | $8.50 | $17.49 | $36.37 | $16.60 | $10.87 | |||||||||||||||||||||
Class E | N/A | $15.47 | $8.50 | $19.46 | $41.16 | $18.72 | $10.87 | |||||||||||||||||||||
Class I | $13.15 | $15.59 | $8.50 | $19.51 | $41.57 | $19.35 | $10.87 | |||||||||||||||||||||
Class R | $13.14 | $15.46 | $8.50 | $19.33 | $40.99 | $18.35 | $10.87 | |||||||||||||||||||||
Class R6 | $13.15 | $15.60 | $8.50 | $19.51 | $41.58 | $19.36 | $10.87 | |||||||||||||||||||||
Class Y | $13.14 | $15.53 | $8.50 | $19.49 | $41.18 | $19.06 | $10.87 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 231,026 | $ | 650,727 | $ | 9,223,507 | $ | 2,383,263 | $ | 432,421 | $ | 1,001,178 | $ | 1,700,829 | ||||||||||||||
Investments in affiliated securities at cost | — | — | 35,000 | — | — | — | — | |||||||||||||||||||||
Cash denominated in foreign currencies at cost | — | — | 65 | 10,352 | — | * | — | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
118 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (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 Small Cap Growth Fund | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value+ | $ | 414 | $ | 225,832 | $ | 4,865,614 | $ | 169,141 | $ | 156,541 | $ | 1,237,877 | $ | 1,053,702 | ||||||||||||||
Investments in affiliated securities at value+ | 245,271 | — | — | — | — | — | — | |||||||||||||||||||||
Investments at Value | 245,685 | 225,832 | 4,865,614 | 169,141 | 156,541 | 1,237,877 | 1,053,702 | |||||||||||||||||||||
Cash | 1 | 2 | 6,547 | 5 | 1 | 1 | 1 | |||||||||||||||||||||
Investment securities sold receivable | 100 | 1,284 | 3,958 | — | — | — | 6,952 | |||||||||||||||||||||
Dividends and interest receivable | — | * | 68 | 2,550 | 44 | 1,755 | 21,963 | 222 | ||||||||||||||||||||
Capital shares sold receivable | 321 | 564 | 10,084 | 396 | 300 | 12,154 | 1,388 | |||||||||||||||||||||
Receivable from affiliates | 19 | — | 63 | 635 | — | * | 8 | 6 | ||||||||||||||||||||
Prepaid and other assets | 43 | 46 | 157 | 39 | 41 | 80 | 77 | |||||||||||||||||||||
Total Assets | 246,169 | 227,796 | 4,888,973 | 170,260 | 158,638 | 1,272,083 | 1,062,348 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Investment securities purchased payable | 127 | 846 | 40,178 | — | — | — | 7,193 | |||||||||||||||||||||
Capital shares redeemed payable | 457 | 602 | 8,941 | 829 | 196 | 2,471 | 2,306 | |||||||||||||||||||||
Distributions payable | — | — | — | 1 | 27 | 342 | — | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees payable | 14 | 3 | 94 | 28 | 13 | 25 | 192 | |||||||||||||||||||||
Distribution and service fees payable | 2 | 2 | 22 | 1 | 2 | 9 | 10 | |||||||||||||||||||||
Shareholder servicing payable | 36 | 78 | 1,229 | 39 | 21 | 167 | 268 | |||||||||||||||||||||
Investment management fee payable | — | * | 6 | 106 | 2 | 2 | 16 | 24 | ||||||||||||||||||||
Accounting services fee payable | 5 | 8 | 23 | 6 | 6 | 22 | 23 | |||||||||||||||||||||
Unrealized depreciation on swap agreements | — | — | — | — | — | — | 570 | |||||||||||||||||||||
Written options at value+ | — | — | 233 | — | — | — | — | |||||||||||||||||||||
Other liabilities | 5 | 4 | 36 | 6 | 5 | 14 | 14 | |||||||||||||||||||||
Total Liabilities | 646 | 1,549 | 50,862 | 912 | 272 | 3,066 | 10,600 | |||||||||||||||||||||
Total Net Assets | $ | 245,523 | $ | 226,247 | $ | 4,838,111 | $ | 169,348 | $ | 158,366 | $ | 1,269,017 | $ | 1,051,748 | ||||||||||||||
NET ASSETS | ||||||||||||||||||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 239,958 | $ | 198,657 | $ | 3,682,314 | $ | 169,383 | $ | 149,802 | $ | 1,246,146 | $ | 721,519 | ||||||||||||||
Undistributed (distributions in excess of) net investment income | (312 | ) | (1,696 | ) | (9,831 | ) | — | 88 | 2,219 | (5,929 | ) | |||||||||||||||||
Accumulated net realized gain (loss) | (64,089 | ) | 11,432 | 464,274 | (35 | ) | (1,268 | ) | (9,501 | ) | 88,237 | |||||||||||||||||
Net unrealized appreciation | 69,966 | 17,854 | 701,354 | — | 9,744 | 30,153 | 247,921 | |||||||||||||||||||||
Total Net Assets | $ | 245,523 | $ | 226,247 | $ | 4,838,111 | $ | 169,348 | $ | 158,366 | $ | 1,269,017 | $ | 1,051,748 | ||||||||||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
Class A | 22,747 | 8,033 | 40,903 | 122,233 | 10,879 | 68,149 | 19,812 | |||||||||||||||||||||
Class B | 305 | 93 | 1,123 | 4,977 | 200 | 2,861 | 720 | |||||||||||||||||||||
Class C | 577 | 481 | 14,321 | 37,048 | 1,785 | 43,106 | 12,550 | |||||||||||||||||||||
Class E | 43 | N/A | 270 | 5,125 | N/A | N/A | 280 | |||||||||||||||||||||
Class I | 121 | 835 | 111,252 | N/A | 284 | 121,856 | 10,725 | |||||||||||||||||||||
Class R | 56 | 26 | 3,988 | N/A | N/A | N/A | 2,363 | |||||||||||||||||||||
Class R6 | N/A | 108 | 170 | N/A | N/A | N/A | 291 | |||||||||||||||||||||
Class Y | 165 | 94 | 28,737 | N/A | 57 | 5,774 | 11,990 | |||||||||||||||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||||||||||||||||||
Class A | $10.23 | $23.40 | $23.52 | $1.00 | $11.99 | $5.25 | $17.19 | |||||||||||||||||||||
Class B | $10.03 | $22.37 | $20.29 | $1.00 | $11.99 | $5.25 | $14.30 | |||||||||||||||||||||
Class C | $10.06 | $22.68 | $21.23 | $1.00 | $11.99 | $5.25 | $15.13 | |||||||||||||||||||||
Class E | $10.24 | N/A | $23.06 | $1.00 | N/A | N/A | $17.10 | |||||||||||||||||||||
Class I | $10.26 | $23.74 | $24.71 | N/A | $11.99 | $5.25 | $20.64 | |||||||||||||||||||||
Class R | $10.21 | $23.35 | $23.21 | N/A | N/A | N/A | $17.07 | |||||||||||||||||||||
Class R6 | N/A | $23.75 | $24.72 | N/A | N/A | N/A | $20.64 | |||||||||||||||||||||
Class Y | $10.23 | $24.03 | $24.26 | N/A | $11.99 | $5.25 | $19.90 | |||||||||||||||||||||
+COST | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at cost | $ | 414 | $ | 207,978 | $ | 4,164,330 | $ | 169,141 | $ | 146,797 | $ | 1,207,724 | $ | 805,211 | ||||||||||||||
Investments in affiliated securities at cost | 175,305 | — | — | — | — | — | — | |||||||||||||||||||||
Written options premiums received at cost | — | — | 303 | — | — | — | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 119 |
Table of Contents
STATEMENTS OF ASSETS AND LIABILITIES
Ivy Funds | AS OF SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands, except per share amounts) | Ivy Small Cap Value Fund | Ivy Tax- Managed Equity Fund | Ivy Value Fund | |||||||||
ASSETS | ||||||||||||
Investments in unaffiliated securities at value+ | $ | 295,213 | $ | 53,748 | $ | 314,436 | ||||||
Investments at Value | 295,213 | 53,748 | 314,436 | |||||||||
Cash | 1 | 1 | 1 | |||||||||
Investment securities sold receivable | 473 | 748 | — | |||||||||
Dividends and interest receivable | 207 | 44 | 384 | |||||||||
Capital shares sold receivable | 581 | 214 | 3,665 | |||||||||
Prepaid and other assets | 45 | 30 | 46 | |||||||||
Total Assets | 296,520 | 54,785 | 318,532 | |||||||||
LIABILITIES | ||||||||||||
Investment securities purchased payable | 1,132 | — | 202 | |||||||||
Capital shares redeemed payable | 367 | 120 | 518 | |||||||||
Independent Trustees and Chief Compliance Officer fees payable | 35 | 1 | 20 | |||||||||
Distribution and service fees payable | 2 | — | * | 2 | ||||||||
Shareholder servicing payable | 113 | 9 | 83 | |||||||||
Investment management fee payable | 7 | 1 | 6 | |||||||||
Accounting services fee payable | 9 | 4 | 9 | |||||||||
Written options at value+ | — | — | 72 | |||||||||
Other liabilities | 7 | 3 | 6 | |||||||||
Total Liabilities | 1,672 | 138 | 918 | |||||||||
Total Net Assets | $ | 294,848 | $ | 54,647 | $ | 317,614 | ||||||
NET ASSETS | ||||||||||||
Capital paid in (shares authorized – unlimited) | $ | 220,387 | $ | 39,212 | $ | 225,634 | ||||||
Undistributed (distributions in excess of) net investment income | 134 | (121 | ) | 3,554 | ||||||||
Accumulated net realized gain | 20,793 | 1,235 | 20,931 | |||||||||
Net unrealized appreciation | 53,534 | 14,321 | 67,495 | |||||||||
Total Net Assets | $ | 294,848 | $ | 54,647 | $ | 317,614 | ||||||
CAPITAL SHARES OUTSTANDING: | ||||||||||||
Class A | 12,757 | 2,676 | 11,019 | |||||||||
Class B | 208 | 74 | 224 | |||||||||
Class C | 1,119 | 111 | 736 | |||||||||
Class E | 8 | N/A | 6 | |||||||||
Class I | 1,772 | 107 | 359 | |||||||||
Class R | 98 | N/A | 15 | |||||||||
Class R6 | 158 | N/A | 10 | |||||||||
Class Y | 437 | 42 | 94 | |||||||||
NET ASSET VALUE PER SHARE: | ||||||||||||
Class A | $17.81 | $18.18 | $25.55 | |||||||||
Class B | $15.57 | $17.71 | $24.06 | |||||||||
Class C | $16.24 | $17.67 | $24.78 | |||||||||
Class E | $18.27 | N/A | $25.67 | |||||||||
Class I | $18.79 | $18.31 | $25.69 | |||||||||
Class R | $17.79 | N/A | $25.49 | |||||||||
Class R6 | $18.80 | N/A | $25.69 | |||||||||
Class Y | $18.43 | $18.21 | $25.61 | |||||||||
+COST | ||||||||||||
Investments in unaffiliated securities at cost | $ | 241,679 | $ | 39,427 | $ | 247,038 | ||||||
Written options premiums received at cost | — | — | 169 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
120 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands) | Ivy Bond Fund | Ivy Core Equity Fund | Ivy Cundill Global Value Fund | Ivy Dividend Opportunities Fund | Ivy Emerging Markets Equity Fund(1) | Ivy European Opportunities Fund | Ivy Global Bond Fund | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 195 | $ | 6,296 | $ | 3,858 | $ | 4,853 | $ | 10,101 | $ | 3,587 | $ | 867 | ||||||||||||||
Foreign dividend withholding tax | — | (66 | ) | (335 | ) | (16 | ) | (1,079 | ) | (479 | ) | (21 | ) | |||||||||||||||
Interest and amortization from unaffiliated securities | 10,368 | 15 | 243 | 5 | 57 | 1 | 6,093 | |||||||||||||||||||||
Foreign interest withholding tax | — | — | — | — | (1 | ) | — | — | ||||||||||||||||||||
Total Investment Income | 10,563 | 6,245 | 3,766 | 4,842 | 9,078 | 3,109 | 6,939 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 1,684 | 3,443 | 1,908 | 1,395 | 3,383 | 924 | 964 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 761 | 702 | 426 | 379 | 635 | 199 | 244 | |||||||||||||||||||||
Class B | 36 | 53 | 18 | 62 | 43 | 11 | 30 | |||||||||||||||||||||
Class C | 106 | 731 | 117 | 236 | 210 | 51 | 169 | |||||||||||||||||||||
Class E | 5 | 10 | 2 | 6 | — | * | — | * | N/A | |||||||||||||||||||
Class R | 1 | 5 | 1 | 1 | 2 | 1 | 1 | |||||||||||||||||||||
Class Y | 3 | 93 | 5 | 14 | 14 | 5 | 11 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 565 | 453 | 556 | 316 | 914 | 303 | 245 | |||||||||||||||||||||
Class B | 14 | 18 | 13 | 15 | 29 | 9 | 11 | |||||||||||||||||||||
Class C | 26 | 110 | 26 | 32 | 70 | 14 | 27 | |||||||||||||||||||||
Class E | 9 | 16 | 4 | 13 | — | * | — | * | N/A | |||||||||||||||||||
Class I | 4 | 144 | 6 | 16 | 115 | 23 | 51 | |||||||||||||||||||||
Class R | — | * | 2 | — | * | — | * | 1 | — | * | 1 | |||||||||||||||||
Class R6 | — | * | — | * | — | * | — | * | — | * | — | * | — | * | ||||||||||||||
Class Y | 2 | 57 | 4 | 8 | 13 | 3 | 7 | |||||||||||||||||||||
Registration fees | 60 | 62 | 55 | 52 | 62 | 48 | 46 | |||||||||||||||||||||
Custodian fees | 12 | 10 | 14 | 6 | 105 | 12 | 5 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 10 | 15 | 10 | 6 | 11 | 6 | 4 | |||||||||||||||||||||
Accounting services fee | 88 | 130 | 67 | 68 | 92 | 44 | 50 | |||||||||||||||||||||
Professional fees | 32 | 18 | 24 | 15 | 31 | 21 | 28 | |||||||||||||||||||||
Other | 29 | 70 | 33 | 19 | 111 | 28 | — | |||||||||||||||||||||
Total Expenses | 3,447 | 6,142 | 3,289 | 2,659 | 5,841 | 1,702 | 1,894 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (4 | ) | (258 | ) | (269 | ) | (5 | ) | (480 | ) | — | (299 | ) | |||||||||||||||
Total Net Expenses | 3,443 | 5,884 | 3,020 | 2,654 | 5,361 | 1,702 | 1,595 | |||||||||||||||||||||
Net Investment Income | 7,120 | 361 | 746 | 2,188 | 3,717 | 1,407 | 5,344 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 5,705 | 54,567 | 1,593 | 22,614 | 34,803 | 15,958 | 445 | |||||||||||||||||||||
Futures contracts | (1,080 | ) | — | — | — | — | — | — | ||||||||||||||||||||
Written options | — | — | — | — | 1,010 | — | — | |||||||||||||||||||||
Swap agreements | — | — | — | — | 126 | — | — | |||||||||||||||||||||
Forward foreign currency contracts | — | — | 96 | — | (106 | ) | 1,263 | (202 | ) | |||||||||||||||||||
Foreign currency exchange transactions | — | — | (14 | ) | 1 | (434 | ) | (13 | ) | (7 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 1,799 | (7,826 | ) | (8,268 | ) | (11,469 | ) | (19,439 | ) | (27,135 | ) | (1,325 | ) | |||||||||||||||
Futures contracts | 236 | — | — | — | — | — | — | |||||||||||||||||||||
Written options | — | — | — | — | 529 | — | — | |||||||||||||||||||||
Swap agreements | — | — | — | — | 841 | — | — | |||||||||||||||||||||
Forward foreign currency contracts | — | — | 1,345 | — | (172 | ) | 1,279 | 17 | ||||||||||||||||||||
Foreign currency exchange transactions | — | — | (58 | ) | — | * | (139 | ) | (41 | ) | (34 | ) | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 6,660 | 46,741 | (5,306 | ) | 11,146 | 17,019 | (8,689 | ) | (1,106 | ) | ||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 13,780 | $ | 47,102 | $ | (4,560 | ) | $ | 13,334 | $ | 20,736 | $ | (7,282 | ) | $ | 4,238 |
* | Not shown due to rounding. |
(1) | Consolidated Statement of Operations (See Note 6 to Financial Statements). |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 121 |
Table of Contents
STATEMENTS OF OPERATIONS
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands) | 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 | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | 7,064 | $ | 13,244 | $ | 1,120 | $ | 40,760 | $ | 6,714 | $ | 7,801 | $ | — | ||||||||||||||
Dividends from affiliated securities | — | 725 | — | — | — | — | ||||||||||||||||||||||
Foreign dividend withholding tax | (786 | ) | (1,284 | ) | — | (3,741 | ) | (755 | ) | (28 | ) | — | ||||||||||||||||
Interest and amortization from unaffiliated securities | 2 | 6,206 | 411,085 | 59 | 14 | 13 | 18,710 | |||||||||||||||||||||
Foreign interest withholding tax | — | — | — | — | * | — | * | — | — | |||||||||||||||||||
Total Investment Income | 6,280 | 18,166 | 412,930 | 37,078 | 5,973 | 7,786 | 18,710 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 822 | 2,215 | 28,757 | 9,931 | 2,035 | 5,112 | 3,735 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 253 | 671 | 5,001 | 1,420 | 434 | 1,351 | 1,859 | |||||||||||||||||||||
Class B | 10 | 32 | 800 | 71 | 24 | 55 | 85 | |||||||||||||||||||||
Class C | 42 | 158 | 9,842 | 641 | 138 | 393 | 622 | |||||||||||||||||||||
Class E | N/A | 3 | 13 | 6 | — | * | 9 | 4 | ||||||||||||||||||||
Class R | 1 | 1 | 104 | 18 | 2 | 78 | 1 | |||||||||||||||||||||
Class Y | 6 | 9 | 1,402 | 235 | 15 | 166 | 32 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 302 | 702 | 2,887 | 1,305 | 486 | 1,024 | 1,117 | |||||||||||||||||||||
Class B | 1 | 13 | 110 | 22 | 10 | 16 | 21 | |||||||||||||||||||||
Class C | 5 | 25 | 992 | 99 | 34 | 60 | 103 | |||||||||||||||||||||
Class E | N/A | 8 | 23 | 14 | — | * | 16 | 5 | ||||||||||||||||||||
Class I | 14 | 36 | 3,101 | 697 | 50 | 122 | 39 | |||||||||||||||||||||
Class R | — | * | — | * | 52 | 9 | 1 | 39 | 1 | |||||||||||||||||||
Class R6 | — | * | — | * | — | * | — | * | — | * | — | * | — | * | ||||||||||||||
Class Y | 3 | 6 | 928 | 148 | 10 | 101 | 21 | |||||||||||||||||||||
Registration fees | 49 | 57 | 335 | 78 | 57 | 64 | 116 | |||||||||||||||||||||
Custodian fees | 16 | 27 | 68 | 109 | 26 | 11 | 13 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 3 | 9 | 145 | 30 | 9 | 23 | 22 | |||||||||||||||||||||
Accounting services fee | 49 | 89 | 136 | 136 | 72 | 136 | 136 | |||||||||||||||||||||
Professional fees | 18 | 26 | 85 | 32 | 22 | 22 | 23 | |||||||||||||||||||||
Other | 29 | 57 | 716 | 85 | 50 | 58 | 82 | |||||||||||||||||||||
Total Expenses | 1,623 | 4,144 | 55,497 | 15,086 | 3,475 | 8,856 | 8,037 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (92 | ) | (4 | ) | (112 | ) | (5 | ) | — | (158 | ) | (2 | ) | |||||||||||||||
Total Net Expenses | 1,531 | 4,140 | 55,385 | 15,081 | 3,475 | 8,698 | 8,035 | |||||||||||||||||||||
Net Investment Income (Loss) | 4,749 | 14,026 | 357,545 | 21,997 | 2,498 | (912 | ) | 10,675 | ||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | 4,100 | 20,955 | 95,249 | 150,644 | 16,342 | 50,080 | 3,181 | |||||||||||||||||||||
Futures contracts | — | — | — | — | — | — | (5,740 | ) | ||||||||||||||||||||
Forward foreign currency contracts | 1,077 | 1,707 | 8,902 | 9,877 | 1,104 | — | — | |||||||||||||||||||||
Foreign currency exchange transactions | (28 | ) | (126 | ) | (1,009 | ) | (845 | ) | (39 | ) | — | — | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | (10,804 | ) | (33,574 | ) | (413,952 | ) | (153,968 | ) | (22,179 | ) | 44,366 | (4,280 | ) | |||||||||||||||
Investments in affiliated securities | — | — | 35 | — | — | — | — | |||||||||||||||||||||
Futures contracts | — | — | — | — | — | — | 2,532 | |||||||||||||||||||||
Forward foreign currency contracts | 2,708 | 2,911 | 11,331 | (319 | ) | 849 | — | — | ||||||||||||||||||||
Foreign currency exchange transactions | (28 | ) | (93 | ) | (204 | ) | (87 | ) | (36 | ) | — | — | ||||||||||||||||
Net Realized and Unrealized Gain (Loss) | (2,975 | ) | (8,220 | ) | (299,648 | ) | 5,302 | (3,959 | ) | 94,446 | (4,307 | ) | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,774 | $ | 5,806 | $ | 57,897 | $ | 27,299 | $ | (1,461 | ) | $ | 93,534 | $ | 6,368 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
122 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF OPERATIONS
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (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 Small Cap Growth Fund | |||||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||||||
Dividends from unaffiliated securities | $ | — | $ | 282 | $ | 21,140 | $ | — | $ | — | $ | — | $ | 2,466 | ||||||||||||||
Dividends from affiliated securities | 564 | — | — | — | — | — | — | |||||||||||||||||||||
Foreign dividend withholding tax | — | — | (100 | ) | — | — | — | — | ||||||||||||||||||||
Interest and amortization from unaffiliated securities | — | * | 8 | 53 | 162 | 2,824 | 34,750 | 21 | ||||||||||||||||||||
Total Investment Income | 564 | 290 | 21,093 | 162 | 2,824 | 34,750 | 2,487 | |||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||
Investment management fee | 66 | 1,146 | 19,344 | 342 | 386 | 3,079 | 4,777 | |||||||||||||||||||||
Distribution and service fees: | ||||||||||||||||||||||||||||
Class A | 311 | 245 | 1,758 | — | 151 | 460 | 465 | |||||||||||||||||||||
Class B | 17 | 12 | 121 | 29 | 12 | 74 | 57 | |||||||||||||||||||||
Class C | 31 | 63 | 1,520 | 165 | 107 | 1,117 | 1,041 | |||||||||||||||||||||
Class E | 1 | N/A | 8 | — | N/A | N/A | 6 | |||||||||||||||||||||
Class R | 1 | 1 | 244 | N/A | N/A | N/A | 102 | |||||||||||||||||||||
Class Y | 2 | 3 | 892 | N/A | 1 | 22 | 321 | |||||||||||||||||||||
Shareholder servicing: | ||||||||||||||||||||||||||||
Class A | 112 | 314 | 1,450 | 104 | 66 | 138 | 502 | |||||||||||||||||||||
Class B | 5 | 6 | 28 | 7 | 1 | 7 | 23 | |||||||||||||||||||||
Class C | 5 | 19 | 287 | 19 | 12 | 68 | 169 | |||||||||||||||||||||
Class E | — | * | N/A | 18 | 6 | N/A | N/A | 16 | ||||||||||||||||||||
Class I | — | * | 22 | 1,853 | N/A | 2 | 473 | 185 | ||||||||||||||||||||
Class R | — | * | 1 | 129 | N/A | N/A | N/A | 53 | ||||||||||||||||||||
Class R6 | N/A | — | * | — | * | N/A | N/A | N/A | — | * | ||||||||||||||||||
Class Y | 1 | 2 | 560 | N/A | — | * | 15 | 201 | ||||||||||||||||||||
Registration fees | 47 | 51 | 88 | 40 | 37 | 58 | 64 | |||||||||||||||||||||
Custodian fees | 3 | 7 | 30 | 6 | 4 | 8 | 12 | |||||||||||||||||||||
Independent Trustees and Chief Compliance Officer fees | 4 | 3 | 60 | 3 | 2 | 15 | 21 | |||||||||||||||||||||
Accounting services fee | 31 | 48 | 137 | 35 | 34 | 132 | 136 | |||||||||||||||||||||
Professional fees | 20 | 13 | 37 | 11 | 16 | 36 | 24 | |||||||||||||||||||||
Other | 28 | 28 | 284 | 12 | 8 | 33 | 65 | |||||||||||||||||||||
Total Expenses | 685 | 1,984 | 28,848 | 779 | 839 | 5,735 | 8,240 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Expenses in excess of limit | (19 | ) | — | (63 | ) | (634 | ) | — | * | (110 | ) | (6 | ) | |||||||||||||||
Total Net Expenses | 666 | 1,984 | 28,785 | 145 | 839 | 5,625 | 8,234 | |||||||||||||||||||||
Net Investment Income (Loss) | (102 | ) | (1,694 | ) | (7,692 | ) | 17 | 1,985 | 29,125 | (5,747 | ) | |||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | — | 222 | 147,659 | 1 | (476 | ) | 3,107 | 43,934 | ||||||||||||||||||||
Investments in affiliated securities | 2,030 | — | — | — | — | — | — | |||||||||||||||||||||
Written options | — | — | 3,056 | — | — | — | — | |||||||||||||||||||||
Foreign currency exchange transactions | — | — | (12 | ) | — | — | — | — | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||||||||||
Investments in unaffiliated securities | — | (37,187 | ) | (126,818 | ) | — | 3,589 | 49,920 | (122,133 | ) | ||||||||||||||||||
Investments in affiliated securities | 609 | — | — | — | — | — | — | |||||||||||||||||||||
Written options | — | — | (98 | ) | — | — | — | — | ||||||||||||||||||||
Swap agreements | — | — | — | — | — | — | (570 | ) | ||||||||||||||||||||
Net Realized and Unrealized Gain (Loss) | 2,639 | (36,965 | ) | 23,787 | 1 | 3,113 | 53,027 | (78,769 | ) | |||||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,537 | $ | (38,659 | ) | $ | 16,095 | $ | 18 | $ | 5,098 | $ | 82,152 | $ | (84,516 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 123 |
Table of Contents
STATEMENTS OF OPERATIONS
Ivy Funds | FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2014 (UNAUDITED) |
(In thousands) | Ivy Small Cap Value Fund | Ivy Tax- Managed Equity Fund | Ivy Value Fund | |||||||||
INVESTMENT INCOME | ||||||||||||
Dividends from unaffiliated securities | $ | 1,440 | $ | 251 | $ | 2,545 | ||||||
Foreign dividend withholding tax | — | — | * | (9 | ) | |||||||
Interest and amortization from unaffiliated securities | 13 | 1 | 7 | |||||||||
Total Investment Income | 1,453 | 252 | 2,543 | |||||||||
EXPENSES | ||||||||||||
Investment management fee | 1,288 | 161 | 1,030 | |||||||||
Distribution and service fees: | ||||||||||||
Class A | 300 | 55 | 331 | |||||||||
Class B | 18 | 5 | 26 | |||||||||
Class C | 97 | 9 | 77 | |||||||||
Class E | — | * | N/A | — | * | |||||||
Class R | 4 | N/A | 1 | |||||||||
Class Y | 11 | 1 | 2 | |||||||||
Shareholder servicing: | ||||||||||||
Class A | 403 | 33 | 296 | |||||||||
Class B | 10 | — | * | 10 | ||||||||
Class C | 26 | 1 | 14 | |||||||||
Class E | — | * | N/A | — | * | |||||||
Class I | 22 | 1 | 5 | |||||||||
Class R | 2 | N/A | — | * | ||||||||
Class R6 | — | * | N/A | — | * | |||||||
Class Y | 7 | 1 | 2 | |||||||||
Registration fees | 51 | 32 | 50 | |||||||||
Custodian fees | 6 | 2 | 6 | |||||||||
Independent Trustees and Chief Compliance Officer fees | 5 | 1 | 4 | |||||||||
Accounting services fee | 52 | 19 | 51 | |||||||||
Professional fees | 20 | 12 | 21 | |||||||||
Other | 21 | 5 | 26 | |||||||||
Total Expenses | 2,343 | 338 | 1,952 | |||||||||
Net Investment Income (Loss) | (890 | ) | (86 | ) | 591 | |||||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments in unaffiliated securities | 8,980 | 995 | 15,066 | |||||||||
Written options | 61 | — | 566 | |||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments in unaffiliated securities | (16,632 | ) | 2,785 | 4,483 | ||||||||
Written options | — | — | (236 | ) | ||||||||
Net Realized and Unrealized Gain (Loss) | (7,591 | ) | 3,780 | 19,879 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (8,481 | ) | $ | 3,694 | $ | 20,470 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
124 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 7,120 | $ | 13,747 | $ | 361 | $ | 1,803 | $ | 746 | $ | (758 | ) | |||||||||||
Net realized gain (loss) on investments | 4,625 | (4,218 | ) | 54,567 | 60,978 | 1,675 | 34,468 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | 2,035 | (8,024 | ) | (7,826 | ) | 83,270 | (6,981 | ) | 23,127 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 13,780 | 1,505 | 47,102 | 146,051 | (4,560 | ) | 56,837 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (7,695 | ) | (15,616 | ) | — | (1,301 | ) | — | (170 | ) | ||||||||||||||
Class B | (57 | ) | (165 | ) | — | — | — | — | ||||||||||||||||
Class C | (184 | ) | (600 | ) | — | — | — | — | ||||||||||||||||
Class E | (44 | ) | (113 | ) | — | (10 | ) | — | (3 | ) | ||||||||||||||
Class I | (71 | ) | (153 | ) | — | (643 | ) | — | (33 | ) | ||||||||||||||
Class R | (3 | ) | (6 | ) | — | — | * | — | — | * | ||||||||||||||
Class R6 | (4 | ) | N/A | — | N/A | — | N/A | |||||||||||||||||
Class Y | (33 | ) | (81 | ) | — | (279 | ) | — | (27 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (24,955 | ) | — | — | |||||||||||||||||
Class B | — | — | — | (642 | ) | — | — | |||||||||||||||||
Class C | — | — | — | (8,242 | ) | — | — | |||||||||||||||||
Class E | — | — | — | (334 | ) | — | — | |||||||||||||||||
Class I | — | — | — | (7,028 | ) | — | — | |||||||||||||||||
Class R | — | — | — | (31 | ) | — | — | |||||||||||||||||
Class R6 | — | N/A | — | N/A | — | N/A | ||||||||||||||||||
Class Y | — | — | — | (3,086 | ) | — | — | |||||||||||||||||
Total Distributions to Shareholders | (8,091 | ) | (16,734 | ) | — | (46,551 | ) | — | (233 | ) | ||||||||||||||
Capital Share Transactions | 76,625 | (4,368 | ) | 124,315 | 247,634 | 6,152 | 83,656 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | 82,314 | (19,597 | ) | 171,417 | 347,134 | 1,592 | 140,260 | |||||||||||||||||
Net Assets, Beginning of Period | 600,345 | 619,942 | 883,612 | 536,478 | 371,943 | 231,683 | ||||||||||||||||||
Net Assets, End of Period | $ | 682,659 | $ | 600,345 | $ | 1,055,029 | $ | 883,612 | $ | 373,535 | $ | 371,943 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (971 | ) | $ | — | $ | 257 | $ | (104 | ) | $ | 391 | $ | (341 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 125 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Dividend Opportunities Fund | Ivy Emerging Markets Equity Fund(1) | Ivy European Opportunities Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 2,188 | $ | 3,339 | $ | 3,717 | $ | 1,451 | $ | 1,407 | $ | 2,626 | ||||||||||||
Net realized gain on investments | 22,615 | 36,827 | 35,399 | 29,562 | 17,208 | 45,714 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (11,469 | ) | 26,399 | (18,380 | ) | 19,451 | (25,897 | ) | (8,315 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 13,334 | 66,565 | 20,736 | 50,464 | (7,282 | ) | 40,025 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (1,195 | ) | (2,303 | ) | — | (2,323 | ) | — | (443 | ) | ||||||||||||||
Class B | (4 | ) | (35 | ) | — | — | — | — | ||||||||||||||||
Class C | (30 | ) | (160 | ) | — | (16 | ) | — | — | |||||||||||||||
Class E | (15 | ) | (32 | ) | — | (2 | ) | — | (1 | ) | ||||||||||||||
Class I | (114 | ) | (198 | ) | — | (1,386 | ) | — | (309 | ) | ||||||||||||||
Class R | (1 | ) | (2 | ) | — | (1 | ) | — | (1 | ) | ||||||||||||||
Class R6 | (1 | ) | N/A | — | N/A | — | N/A | |||||||||||||||||
Class Y | (46 | ) | (99 | ) | — | (35 | ) | — | (12 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (4,100 | ) | — | — | — | — | |||||||||||||||||
Class B | — | (191 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (686 | ) | — | — | — | — | |||||||||||||||||
Class E | — | (64 | ) | — | — | — | — | |||||||||||||||||
Class I | — | (266 | ) | — | — | — | — | |||||||||||||||||
Class R | — | (5 | ) | — | — | — | — | |||||||||||||||||
Class R6 | — | N/A | — | N/A | — | N/A | ||||||||||||||||||
Class Y | — | (161 | ) | — | — | — | — | |||||||||||||||||
Total Distributions to Shareholders | (1,406 | ) | (8,302 | ) | — | (3,763 | ) | — | (766 | ) | ||||||||||||||
Capital Share Transactions | 9,108 | (353 | ) | (119,012 | ) | 26,177 | (9,226 | ) | (40,958 | ) | ||||||||||||||
Net Increase (Decrease) in Net Assets | 21,036 | 57,910 | (98,276 | ) | 72,878 | (16,508 | ) | (1,699 | ) | |||||||||||||||
Net Assets, Beginning of Period | 384,827 | 326,917 | 740,340 | 667,462 | 210,364 | 212,063 | ||||||||||||||||||
Net Assets, End of Period | $ | 405,863 | $ | 384,827 | $ | 642,064 | $ | 740,340 | $ | 193,856 | $ | 210,364 | ||||||||||||
Undistributed net investment income | $ | 1,776 | $ | 993 | $ | 5,714 | $ | 2,431 | $ | 3,346 | $ | 1,952 |
(1) | Consolidated Statements of Changes in Net Assets (See Note 6 to Financial Statements). |
See Accompanying Notes to Financial Statements.
126 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Global Bond Fund | Ivy Global Equity Income Fund | Ivy Global Income Allocation Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 5,344 | $ | 9,605 | $ | 4,749 | $ | 6,816 | $ | 14,026 | $ | 21,313 | ||||||||||||
Net realized gain (loss) on investments | 236 | (3,044 | ) | 5,149 | 1,893 | 22,536 | 3,198 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | (1,342 | ) | (2,593 | ) | (8,124 | ) | 15,392 | (30,756 | ) | 20,831 | ||||||||||||||
Net Increase in Net Assets Resulting from Operations | 4,238 | 3,968 | 1,774 | 24,101 | 5,806 | 45,342 | ||||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (2,985 | ) | (5,939 | ) | (4,231 | ) | (4,717 | ) | (10,855 | ) | (16,006 | ) | ||||||||||||
Class B | (69 | ) | (164 | ) | (37 | ) | (48 | ) | (102 | ) | (203 | ) | ||||||||||||
Class C | (391 | ) | (1,026 | ) | (150 | ) | (167 | ) | (552 | ) | (897 | ) | ||||||||||||
Class E | N/A | N/A | N/A | N/A | (54 | ) | (93 | ) | ||||||||||||||||
Class I | (1,073 | ) | (2,038 | ) | (410 | ) | (537 | ) | (1,040 | ) | (1,316 | ) | ||||||||||||
Class R | (5 | ) | (8 | ) | (6 | ) | (9 | ) | (5 | ) | (10 | ) | ||||||||||||
Class R6 | (1 | ) | N/A | (11 | ) | N/A | (14 | ) | N/A | |||||||||||||||
Class Y | (132 | ) | (191 | ) | (95 | ) | (149 | ) | (149 | ) | (252 | ) | ||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (294 | ) | — | (1,205 | ) | — | — | ||||||||||||||||
Class B | — | (10 | ) | — | (14 | ) | — | — | ||||||||||||||||
Class C | — | (61 | ) | — | (49 | ) | — | — | ||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | ||||||||||||||||||
Class I | — | (85 | ) | — | (110 | ) | — | — | ||||||||||||||||
Class R | — | — | * | — | (2 | ) | — | — | ||||||||||||||||
Class R6 | — | N/A | — | N/A | — | N/A | ||||||||||||||||||
Class Y | — | (9 | ) | — | (32 | ) | — | — | ||||||||||||||||
Total Distributions to Shareholders | (4,656 | ) | (9,825 | ) | (4,940 | ) | (7,039 | ) | (12,771 | ) | (18,777 | ) | ||||||||||||
Capital Share Transactions | 23,922 | 8,339 | 40,858 | 115,423 | 102,420 | 172,881 | ||||||||||||||||||
Net Increase in Net Assets | 23,504 | 2,482 | 37,692 | 132,485 | 95,455 | 199,446 | ||||||||||||||||||
Net Assets, Beginning of Period | 291,744 | 289,262 | 212,550 | 80,065 | 576,888 | 377,442 | ||||||||||||||||||
Net Assets, End of Period | $ | 315,248 | $ | 291,744 | $ | 250,242 | $ | 212,550 | $ | 672,343 | $ | 576,888 | ||||||||||||
Undistributed net investment income | $ | 1,155 | $ | 474 | $ | 1,303 | $ | 1,522 | $ | 5,159 | $ | 3,932 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 127 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy High Income Fund | Ivy International Core Equity Fund | Ivy International Growth Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income | $ | 357,545 | $ | 623,007 | $ | 21,997 | $ | 20,205 | $ | 2,498 | $ | 1,829 | ||||||||||||
Net realized gain on investments | 103,142 | 142,745 | 159,676 | 169,817 | 17,407 | 11,474 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (402,790 | ) | 62,708 | (154,374 | ) | 157,167 | (21,366 | ) | 43,648 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 57,897 | 828,460 | 27,299 | 347,189 | (1,461 | ) | 56,951 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (129,857 | ) | (238,598 | ) | — | (17,519 | ) | — | (3,444 | ) | ||||||||||||||
Class B | (4,601 | ) | (9,775 | ) | — | (172 | ) | — | (19 | ) | ||||||||||||||
Class C | (56,968 | ) | (101,286 | ) | — | (1,606 | ) | — | (131 | ) | ||||||||||||||
Class E | (318 | ) | (577 | ) | — | (74 | ) | — | (2 | ) | ||||||||||||||
Class I | (132,785 | ) | (220,782 | ) | — | (16,246 | ) | — | (724 | ) | ||||||||||||||
Class R | (1,283 | ) | (554 | ) | — | (35 | ) | — | (4 | ) | ||||||||||||||
Class R6 | (28 | ) | N/A | — | N/A | — | N/A | |||||||||||||||||
Class Y | (36,375 | ) | (63,213 | ) | — | (2,949 | ) | — | (134 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (57,013 | ) | — | (220 | ) | — | — | ||||||||||||||||
Class B | — | (2,504 | ) | — | (3 | ) | — | — | ||||||||||||||||
Class C | — | (26,402 | ) | — | (28 | ) | — | — | ||||||||||||||||
Class E | — | (144 | ) | — | (1 | ) | — | — | ||||||||||||||||
Class I | — | (52,595 | ) | — | (172 | ) | — | — | ||||||||||||||||
Class R | — | (230 | ) | — | (1 | ) | — | — | ||||||||||||||||
Class R6 | — | N/A | — | N/A | — | N/A | ||||||||||||||||||
Class Y | — | (15,081 | ) | — | (35 | ) | — | — | ||||||||||||||||
Total Distributions to Shareholders | (362,215 | ) | (788,754 | ) | — | (39,061 | ) | — | (4,458 | ) | ||||||||||||||
Capital Share Transactions | (1,433,505 | ) | 3,350,166 | 422,473 | 286,814 | 35,329 | 110,819 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (1,737,824 | ) | 3,389,872 | 449,772 | 594,942 | 33,868 | 163,312 | |||||||||||||||||
Net Assets, Beginning of Period | 11,478,844 | 8,088,972 | 2,122,061 | 1,527,119 | 449,861 | 286,549 | ||||||||||||||||||
Net Assets, End of Period | $ | 9,741,020 | $ | 11,478,844 | $ | 2,571,833 | $ | 2,122,061 | $ | 483,729 | $ | 449,861 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | (1 | ) | $ | 1,012 | $ | 13,724 | $ | (7,428 | ) | $ | (83 | ) | $ | (2,542 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
128 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Large Cap Growth Fund | Ivy Limited-Term Bond Fund | Ivy Managed International Opportunities Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (912 | ) | $ | 624 | $ | 10,675 | $ | 19,908 | $ | (102 | ) | $ | 2,212 | ||||||||||
Net realized gain (loss) on investments | 50,080 | 202,726 | (2,559 | ) | (11,349 | ) | 2,030 | 4,346 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 44,366 | 99,887 | (1,748 | ) | (20,907 | ) | 609 | 20,520 | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 93,534 | 303,237 | 6,368 | (12,348 | ) | 2,537 | 27,078 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | — | (10,127 | ) | (18,144 | ) | — | (2,105 | ) | |||||||||||||||
Class B | — | — | (45 | ) | (111 | ) | — | (13 | ) | |||||||||||||||
Class C | — | — | (368 | ) | (1,097 | ) | — | (32 | ) | |||||||||||||||
Class E | — | — | (22 | ) | (46 | ) | — | (3 | ) | |||||||||||||||
Class I | — | (198 | ) | (389 | ) | (1,234 | ) | — | (8 | ) | ||||||||||||||
Class R | — | — | (2 | ) | (3 | ) | — | (3 | ) | |||||||||||||||
Class R6 | — | N/A | (7 | ) | N/A | N/A | N/A | |||||||||||||||||
Class Y | — | (76 | ) | (173 | ) | (506 | ) | — | (11 | ) | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (114,458 | ) | — | (8,050 | ) | — | — | ||||||||||||||||
Class B | — | (1,454 | ) | — | (116 | ) | — | — | ||||||||||||||||
Class C | — | (9,257 | ) | — | (876 | ) | — | — | ||||||||||||||||
Class E | — | (729 | ) | — | (20 | ) | — | — | ||||||||||||||||
Class I | — | (12,274 | ) | — | (316 | ) | — | — | ||||||||||||||||
Class R | — | (3,262 | ) | — | (1 | ) | — | — | ||||||||||||||||
Class R6 | — | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | (14,050 | ) | — | (169 | ) | — | — | ||||||||||||||||
Total Distributions to Shareholders | — | (155,758 | ) | (11,133 | ) | (30,689 | ) | — | (2,175 | ) | ||||||||||||||
Capital Share Transactions | (41,905 | ) | (59,220 | ) | 56,681 | 83,642 | (23,588 | ) | 49,942 | |||||||||||||||
Net Increase (Decrease) in Net Assets | 51,629 | 88,259 | 51,916 | 40,605 | (21,051 | ) | 74,845 | |||||||||||||||||
Net Assets, Beginning of Period | 1,465,953 | 1,377,694 | 1,674,082 | 1,633,477 | 266,574 | 191,729 | ||||||||||||||||||
Net Assets, End of Period | $ | 1,517,582 | $ | 1,465,953 | $ | 1,725,998 | $ | 1,674,082 | $ | 245,523 | $ | 266,574 | ||||||||||||
Distributions in excess of net investment income | $ | (1,695 | ) | $ | (783 | ) | $ | (461 | ) | $ | (3 | ) | $ | (312 | ) | $ | (210 | ) |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 129 |
Table of Contents
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 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (1,694 | ) | $ | (2,416 | ) | $ | (7,692 | ) | $ | (21,189 | ) | $ | 17 | $ | 40 | ||||||||
Net realized gain on investments | 222 | 24,854 | 150,703 | 484,256 | 1 | 1 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (37,187 | ) | 31,330 | (126,916 | ) | 287,532 | — | — | ||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (38,659 | ) | 53,768 | 16,095 | 750,599 | 18 | 41 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | — | — | — | (13 | ) | (30 | ) | ||||||||||||||||
Class B | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||
Class C | — | — | — | — | (3 | ) | (8 | ) | ||||||||||||||||
Class E | N/A | N/A | — | — | — | * | (1 | ) | ||||||||||||||||
Class I | — | — | — | — | N/A | N/A | ||||||||||||||||||
Class R | — | — | — | — | N/A | N/A | ||||||||||||||||||
Class R6 | — | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | — | — | — | N/A | N/A | ||||||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (8,983 | ) | — | (50,715 | ) | — | — | ||||||||||||||||
Class B | — | (145 | ) | — | (893 | ) | — | — | ||||||||||||||||
Class C | — | (526 | ) | — | (8,830 | ) | — | — | ||||||||||||||||
Class E | N/A | N/A | — | (189 | ) | — | — | |||||||||||||||||
Class I | — | (746 | ) | — | (66,004 | ) | N/A | N/A | ||||||||||||||||
Class R | — | (21 | ) | — | (3,160 | ) | N/A | N/A | ||||||||||||||||
Class R6 | — | N/A | — | N/A | N/A | N/A | ||||||||||||||||||
Class Y | — | (64 | ) | — | (22,878 | ) | N/A | N/A | ||||||||||||||||
Total Distributions to Shareholders | — | (10,485 | ) | — | (152,669 | ) | (17 | ) | (40 | ) | ||||||||||||||
Capital Share Transactions | (1,630 | ) | 131,568 | 42,459 | 899,428 | (14,408 | ) | 7,597 | ||||||||||||||||
Net Increase (Decrease) in Net Assets | (40,289 | ) | 174,851 | 58,554 | 1,497,358 | (14,407 | ) | 7,598 | ||||||||||||||||
Net Assets, Beginning of Period | 266,536 | 91,685 | 4,779,557 | 3,282,199 | 183,755 | 176,157 | ||||||||||||||||||
Net Assets, End of Period | $ | 226,247 | $ | 266,536 | $ | 4,838,111 | $ | 4,779,557 | $ | 169,348 | $ | 183,755 | ||||||||||||
Distributions in excess of net investment income | $ | (1,696 | ) | $ | (2 | ) | $ | (9,831 | ) | $ | (2,127 | ) | $ | — | $ | — |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
130 | SEMIANNUAL REPORT | 2014 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Municipal Bond Fund | Ivy Municipal High Income Fund | Ivy Small Cap Growth Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,985 | $ | 4,181 | $ | 29,125 | $ | 59,583 | $ | (5,747 | ) | $ | (11,921 | ) | ||||||||||
Net realized gain (loss) on investments | (476 | ) | (424 | ) | 3,107 | (12,537 | ) | 43,934 | 121,849 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | 3,589 | (6,418 | ) | 49,920 | (116,421 | ) | (122,703 | ) | 119,148 | |||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 5,098 | (2,661 | ) | 82,152 | (69,375 | ) | (84,516 | ) | 229,076 | |||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | (1,682 | ) | (3,509 | ) | (8,679 | ) | (19,572 | ) | — | — | ||||||||||||||
Class B | (24 | ) | (60 | ) | (293 | ) | (616 | ) | — | — | ||||||||||||||
Class C | (217 | ) | (508 | ) | (4,447 | ) | (9,791 | ) | — | — | ||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | ||||||||||||||||||
Class I | (36 | ) | (58 | ) | (14,851 | ) | (28,622 | ) | — | — | ||||||||||||||
Class R | N/A | N/A | N/A | N/A | — | — | ||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | — | N/A | ||||||||||||||||||
Class Y | (8 | ) | (17 | ) | (418 | ) | (1,059 | ) | — | — | ||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | — | — | (1,250 | ) | — | (31,823 | ) | ||||||||||||||||
Class B | — | — | — | (50 | ) | — | (1,237 | ) | ||||||||||||||||
Class C | — | — | — | (748 | ) | — | * | (20,164 | ) | |||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | * | (372 | ) | ||||||||||||||||
Class I | — | — | — | (1,808 | ) | — | (17,576 | ) | ||||||||||||||||
Class R | N/A | N/A | N/A | N/A | — | (3,187 | ) | |||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | — | N/A | ||||||||||||||||||
Class Y | — | — | — | (60 | ) | — | (20,217 | ) | ||||||||||||||||
Total Distributions to Shareholders | (1,967 | ) | (4,152 | ) | (28,688 | ) | (63,576 | ) | — | (94,576 | ) | |||||||||||||
Capital Share Transactions | 16,137 | (25,009 | ) | 17,889 | (339,561 | ) | (76,551 | ) | 176,336 | |||||||||||||||
Net Increase (Decrease) in Net Assets | 19,268 | (31,822 | ) | 71,353 | (472,512 | ) | (161,067 | ) | 310,836 | |||||||||||||||
Net Assets, Beginning of Period | 139,098 | 170,920 | 1,197,664 | 1,670,176 | 1,212,815 | 901,979 | ||||||||||||||||||
Net Assets, End of Period | $ | 158,366 | $ | 139,098 | $ | 1,269,017 | $ | 1,197,664 | $ | 1,051,748 | $ | 1,212,815 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 88 | $ | 70 | $ | 2,219 | $ | 1,782 | $ | (5,929 | ) | $ | (182 | ) |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 131 |
Table of Contents
STATEMENTS OF CHANGES IN NET ASSETS
Ivy Funds
Ivy Small Cap Value Fund | Ivy Tax-Managed Equity Fund | Ivy Value Fund | ||||||||||||||||||||||
(In thousands) | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | Six months ended 9-30-14 (Unaudited) | Year ended 3-31-14 | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | ||||||||||||||||||||||||
Operations: | ||||||||||||||||||||||||
Net investment income (loss) | $ | (890 | ) | $ | (1,826 | ) | $ | (86 | ) | $ | (120 | ) | $ | 591 | $ | 554 | ||||||||
Net realized gain on investments | 9,041 | 40,510 | 995 | 1,676 | 15,632 | 18,062 | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (16,632 | ) | 16,893 | 2,785 | 5,924 | 4,247 | 27,148 | |||||||||||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (8,481 | ) | 55,577 | 3,694 | 7,480 | 20,470 | 45,764 | |||||||||||||||||
Distributions to Shareholders From: | ||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||
Class A | — | (878 | ) | — | — | — | (382 | ) | ||||||||||||||||
Class B | — | (5 | ) | — | — | — | — | |||||||||||||||||
Class C | — | (42 | ) | — | — | — | — | |||||||||||||||||
Class E | — | — | * | N/A | N/A | — | — | * | ||||||||||||||||
Class I | — | (122 | ) | — | — | — | (22 | ) | ||||||||||||||||
Class R | — | (2 | ) | N/A | N/A | — | — | * | ||||||||||||||||
Class R6 | — | N/A | N/A | N/A | — | N/A | ||||||||||||||||||
Class Y | — | (34 | ) | — | — | — | (5 | ) | ||||||||||||||||
Net realized gains: | ||||||||||||||||||||||||
Class A | — | (28,136 | ) | — | (1,039 | ) | — | (8,840 | ) | |||||||||||||||
Class B | — | (479 | ) | — | (24 | ) | — | (214 | ) | |||||||||||||||
Class C | — | (2,297 | ) | — | (40 | ) | — | (508 | ) | |||||||||||||||
Class E | — | (15 | ) | N/A | N/A | — | (5 | ) | ||||||||||||||||
Class I | — | (2,928 | ) | — | (39 | ) | — | (181 | ) | |||||||||||||||
Class R | — | (71 | ) | N/A | N/A | — | (13 | ) | ||||||||||||||||
Class R6 | — | N/A | N/A | N/A | — | N/A | ||||||||||||||||||
Class Y | — | (1,011 | ) | — | (19 | ) | — | (75 | ) | |||||||||||||||
Total Distributions to Shareholders | — | (36,020 | ) | — | (1,161 | ) | — | (10,245 | ) | |||||||||||||||
Capital Share Transactions | (1,131 | ) | 13,372 | 6,288 | 9,998 | 21,439 | 64,074 | |||||||||||||||||
Net Increase (Decrease) in Net Assets | (9,612 | ) | 32,929 | 9,982 | 16,317 | 41,909 | 99,593 | |||||||||||||||||
Net Assets, Beginning of Period | 304,460 | 271,531 | 44,665 | 28,348 | 275,705 | 176,112 | ||||||||||||||||||
Net Assets, End of Period | $ | 294,848 | $ | 304,460 | $ | 54,647 | $ | 44,665 | $ | 317,614 | $ | 275,705 | ||||||||||||
Undistributed (distributions in excess of) net investment income | $ | 134 | $ | 1,024 | $ | (121 | ) | $ | (35 | ) | $ | 3,554 | $ | 2,963 |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
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2014 | SEMIANNUAL REPORT | 133 |
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Ivy Funds | FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD |
IVY 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 9-30-2014 (unaudited) | $ | 10.46 | $ | 0.12 | $ | 0.13 | $ | 0.25 | $ | (0.14 | ) | $ | — | $ | (0.14 | ) | ||||||||||||
Year ended 3-31-2014 | 10.71 | 0.24 | (0.19 | ) | 0.05 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.26 | 0.39 | 0.65 | (0.31 | ) | (0.07 | ) | (0.38 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.17 | 0.51 | 0.68 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.29 | 0.40 | 0.69 | (0.32 | ) | (0.09 | ) | (0.41 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.33 | 1.07 | 1.40 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.07 | 0.13 | 0.20 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.15 | (0.20 | ) | (0.05 | ) | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.15 | 0.40 | 0.55 | (0.21 | ) | (0.07 | ) | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.06 | 0.51 | 0.57 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.18 | 0.40 | 0.58 | (0.21 | ) | (0.09 | ) | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.22 | 1.07 | 1.29 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.08 | 0.12 | 0.20 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.17 | (0.21 | ) | (0.04 | ) | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.18 | 0.40 | 0.58 | (0.24 | ) | (0.07 | ) | (0.31 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.09 | 0.51 | 0.60 | (0.26 | ) | — | (0.26 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.21 | 0.40 | 0.61 | (0.24 | ) | (0.09 | ) | (0.33 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.28 | 1.06 | 1.34 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.11 | 0.13 | 0.24 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.24 | (0.20 | ) | 0.04 | (0.29 | ) | — | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.25 | 0.40 | 0.65 | (0.31 | ) | (0.07 | ) | (0.38 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.17 | 0.51 | 0.68 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.28 | 0.40 | 0.68 | (0.31 | ) | (0.09 | ) | (0.40 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.34 | 1.07 | 1.41 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.13 | 0.13 | 0.26 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.28 | (0.20 | ) | 0.08 | (0.33 | ) | — | (0.33 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.29 | 0.40 | 0.69 | (0.35 | ) | (0.07 | ) | (0.42 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.20 | 0.51 | 0.71 | (0.37 | ) | — | (0.37 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.32 | 0.40 | 0.72 | (0.35 | ) | (0.09 | ) | (0.44 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.38 | 1.06 | 1.44 | (0.38 | ) | — | (0.38 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.10 | 0.13 | 0.23 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.21 | (0.19 | ) | 0.02 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||
Year ended 3-31-2013(6) | 10.69 | 0.02 | 0.08 | 0.10 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 10.58 | 0.04 | 0.00 | 0.04 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.46 | 0.12 | 0.13 | 0.25 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 10.71 | 0.25 | (0.20 | ) | 0.05 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 10.44 | 0.26 | 0.40 | 0.66 | (0.32 | ) | (0.07 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 10.10 | 0.18 | 0.51 | 0.69 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 9.82 | 0.30 | 0.40 | 0.70 | (0.33 | ) | (0.09 | ) | (0.42 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.35 | 1.07 | 1.42 | (0.36 | ) | — | (0.36 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
134 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 10.57 | 2.34 | % | $ | 641 | 1.03 | %(4) | 2.23 | %(4) | — | % | — | % | 74 | % | ||||||||||||||||
Year ended 3-31-2014 | 10.46 | 0.48 | 561 | 1.04 | 2.35 | — | — | 202 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.57 | 1.86 | 7 | 1.96 | (4) | 1.30 | (4) | — | — | 74 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | -0.45 | 7 | 1.98 | 1.45 | — | — | 202 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.57 | 1.93 | 21 | 1.82 | (4) | 1.44 | (4) | — | — | 74 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | -0.31 | 21 | 1.82 | 1.61 | — | — | 202 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.57 | 2.28 | 4 | 1.14 | (4) | 2.12 | (4) | 1.36 | (4) | 1.90 | (4) | 74 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | 0.38 | 4 | 1.14 | 2.26 | 1.35 | 2.05 | 202 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.57 | 2.49 | 6 | 0.74 | (4) | 2.51 | (4) | — | — | 74 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | 0.77 | 4 | 0.76 | 2.65 | — | — | 202 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.57 | 2.18 | — | * | 1.33 | (4) | 1.92 | (4) | — | — | 74 | |||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | 0.18 | — | * | 1.35 | 2.04 | — | — | 202 | |||||||||||||||||||||||
Year ended | 10.71 | 0.96 | — | * | 1.30 | (4) | 0.82 | (4) | — | — | 269 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 10.57 | 0.39 | 1 | 0.59 | (4) | 2.67 | (4) | — | — | 74 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 10.57 | 2.37 | 3 | 0.99 | (4) | 2.27 | (4) | — | — | 74 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.46 | 0.51 | 3 | 1.00 | 2.42 | — | — | 202 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 135 |
Table of Contents
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)(1) | Net Realized and Unrealized Gain 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 9-30-2014 (unaudited) | $ | 14.04 | $ | 0.01 | $ | 0.71 | $ | 0.72 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Year ended 3-31-2014 | 12.15 | 0.05 | 2.67 | 2.72 | (0.04 | ) | (0.79 | ) | — | (0.83 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 10.91 | 0.04 | 1.33 | 1.37 | (0.05 | ) | (0.08 | ) | — | (0.13 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 10.68 | 0.02 | 0.58 | 0.60 | — | (0.37 | ) | — | (0.37 | ) | ||||||||||||||||||||||
Year ended 3-31-2011 | 8.91 | (0.01 | ) | 1.95 | 1.94 | — | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 6.04 | 0.00 | 2.89 | 2.89 | — | — | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 12.32 | (0.05 | ) | 0.61 | 0.56 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 10.78 | (0.07 | ) | 2.36 | 2.29 | — | (0.75 | ) | — | (0.75 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 9.75 | (0.07 | ) | 1.18 | 1.11 | — | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 9.59 | (0.08 | ) | 0.52 | 0.44 | — | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||||
Year ended 3-31-2011 | 8.10 | (0.10 | ) | 1.76 | 1.66 | — | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.54 | (0.06 | ) | 2.62 | 2.56 | — | — | — | — | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 12.63 | (0.04 | ) | 0.63 | 0.59 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 11.03 | (0.05 | ) | 2.41 | 2.36 | — | (0.76 | ) | — | (0.76 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 9.95 | (0.04 | ) | 1.20 | 1.16 | — | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 9.77 | (0.06 | ) | 0.55 | 0.49 | — | (0.31 | ) | — | (0.31 | ) | |||||||||||||||||||||
Year ended 3-31-2011 | 8.23 | (0.07 | ) | 1.78 | 1.71 | — | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.61 | (0.04 | ) | 2.66 | 2.62 | — | — | — | — | |||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.00 | (0.01 | ) | 0.70 | 0.69 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 12.12 | 0.02 | 2.67 | 2.69 | (0.02 | ) | (0.79 | ) | — | (0.81 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 10.89 | 0.03 | 1.32 | 1.35 | (0.04 | ) | (0.08 | ) | — | (0.12 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 10.67 | 0.01 | 0.59 | 0.60 | — | (0.38 | ) | — | (0.38 | ) | ||||||||||||||||||||||
Year ended 3-31-2011 | 8.90 | 0.00 | 1.94 | 1.94 | — | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 3-31-2010 | 6.03 | 0.00 | 2.89 | 2.89 | — | — | (0.02 | ) | (0.02 | ) | ||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.29 | 0.03 | 0.77 | 0.80 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 13.15 | 0.09 | 2.91 | 3.00 | (0.07 | ) | (0.79 | ) | — | (0.86 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 11.78 | 0.08 | 1.44 | 1.52 | (0.07 | ) | (0.08 | ) | — | (0.15 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 11.50 | 0.05 | 0.64 | 0.69 | — | (0.41 | ) | — | (0.41 | ) | ||||||||||||||||||||||
Year ended 3-31-2011 | 9.55 | 0.03 | 2.09 | 2.12 | — | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 3-31-2010 | 6.47 | (0.01 | ) | 3.13 | 3.12 | — | — | (0.04 | ) | (0.04 | ) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.01 | (0.02 | ) | 0.70 | 0.68 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 12.13 | 0.01 | 2.67 | 2.68 | (0.01 | ) | (0.79 | ) | — | (0.80 | ) | |||||||||||||||||||||
Year ended | 11.15 | 0.00 | 0.98 | 0.98 | — | — | — | — | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 15.69 | 0.02 | 0.38 | 0.40 | — | — | — | — | ||||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.94 | 0.03 | 0.76 | 0.79 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 12.87 | 0.09 | 2.84 | 2.93 | (0.07 | ) | (0.79 | ) | — | (0.86 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 11.54 | 0.06 | 1.40 | 1.46 | (0.05 | ) | (0.08 | ) | — | (0.13 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 11.27 | 0.03 | 0.63 | 0.66 | — | (0.39 | ) | — | (0.39 | ) | ||||||||||||||||||||||
Year ended 3-31-2011 | 9.39 | 0.01 | 2.04 | 2.05 | — | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||||||
Year ended 3-31-2010 | 6.36 | 0.00 | 3.06 | 3.06 | — | — | (0.03 | ) | (0.03 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
136 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 14.76 | 5.13 | % | $ | 570 | 1.14 | %(4) | 0.11 | %(4) | 1.17 | %(4) | 0.08 | %(4) | 35 | % | ||||||||||||||||
Year ended 3-31-2014 | 14.04 | 22.76 | 499 | 1.15 | 0.35 | 1.20 | 0.30 | 61 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 12.88 | 4.55 | 10 | 2.11 | (4) | -0.84 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 12.32 | 21.62 | 11 | 2.12 | -0.62 | — | — | 61 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 13.22 | 4.67 | 148 | 1.91 | (4) | -0.64 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 12.63 | 21.79 | 144 | 1.94 | -0.44 | — | — | 61 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.69 | 4.93 | 8 | 1.35 | (4) | -0.08 | (4) | 1.45 | (4) | -0.18 | (4) | 35 | ||||||||||||||||||||
Year ended 3-31-2014 | 14.00 | 22.57 | 7 | 1.35 | 0.15 | 1.51 | -0.01 | 61 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.09 | 5.23 | 233 | 0.84 | (4) | 0.43 | (4) | 0.91 | (4) | 0.36 | (4) | 35 | ||||||||||||||||||||
Year ended 3-31-2014 | 15.29 | 23.18 | 153 | 0.84 | 0.63 | 0.91 | 0.56 | 61 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.69 | 4.85 | 2 | 1.50 | (4) | -0.24 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.01 | 22.41 | 2 | 1.50 | 0.04 | — | — | 61 | ||||||||||||||||||||||||
Year ended | 12.13 | 8.79 | — | * | 1.50 | (4) | -0.13 | (4) | — | — | 60 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 16.09 | 2.55 | 3 | 0.75 | (4) | 0.73 | (4) | — | — | 35 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.73 | 5.29 | 81 | 0.84 | (4) | 0.43 | (4) | 1.16 | (4) | 0.11 | (4) | 35 | ||||||||||||||||||||
Year ended 3-31-2014 | 14.94 | 23.14 | 68 | 0.84 | 0.64 | 1.16 | 0.32 | 61 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 137 |
Table of Contents
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)(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 | $ | 17.96 | $ | 0.04 | $ | (0.25 | ) | $ | (0.21 | ) | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2014 | 14.68 | (0.03 | ) | 3.32 | 3.29 | (0.01 | ) | — | — | (0.01 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 13.44 | 0.01 | 1.23 | 1.24 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2012 | 14.00 | 0.02 | (0.57 | ) | (0.55 | ) | (0.01 | ) | — | — | (0.01 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 12.63 | 0.03 | 1.34 | 1.37 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 8.55 | 0.04 | 4.15 | 4.19 | (0.08 | ) | — | (0.03 | ) | (0.11 | ) | |||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 16.72 | (0.06 | ) | (0.23 | ) | (0.29 | ) | — | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 13.81 | (0.19 | ) | 3.10 | 2.91 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2013 | 12.78 | (0.11 | ) | 1.14 | 1.03 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2012 | 13.43 | (0.09 | ) | (0.56 | ) | (0.65 | ) | — | — | — | — | |||||||||||||||||||||
Year ended 3-31-2011 | 12.22 | (0.07 | ) | 1.28 | 1.21 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2010 | 8.31 | (0.04 | ) | 3.99 | 3.95 | (0.03 | ) | — | (0.01 | ) | (0.04 | ) | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 17.03 | (0.02 | ) | (0.23 | ) | (0.25 | ) | — | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 13.99 | (0.12 | ) | 3.16 | 3.04 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2013 | 12.88 | (0.05 | ) | 1.16 | 1.11 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2012 | 13.48 | (0.05 | ) | (0.55 | ) | (0.60 | ) | — | — | — | — | |||||||||||||||||||||
Year ended 3-31-2011 | 12.23 | (0.03 | ) | 1.28 | 1.25 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2010 | 8.30 | 0.00 | 3.99 | 3.99 | (0.05 | ) | — | (0.01 | ) | (0.06 | ) | |||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 18.05 | 0.03 | (0.24 | ) | (0.21 | ) | — | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.78 | (0.03 | ) | 3.34 | 3.31 | (0.04 | ) | — | — | (0.04 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 13.49 | 0.04 | 1.25 | 1.29 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2012 | 14.04 | 0.05 | (0.57 | ) | (0.52 | ) | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 12.64 | 0.06 | 1.34 | 1.40 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 8.55 | 0.06 | 4.16 | 4.22 | (0.10 | ) | — | (0.03 | ) | (0.13 | ) | |||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 18.33 | 0.08 | (0.25 | ) | (0.17 | ) | — | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.98 | 0.05 | 3.39 | 3.44 | (0.09 | ) | — | — | (0.09 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 13.64 | 0.09 | 1.25 | 1.34 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2012 | 14.23 | 0.10 | (0.59 | ) | (0.49 | ) | (0.10 | ) | — | — | (0.10 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 12.76 | 0.11 | 1.36 | 1.47 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 8.64 | 0.07 | 4.22 | 4.29 | (0.13 | ) | — | (0.04 | ) | (0.17 | ) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 17.94 | 0.02 | (0.24 | ) | (0.22 | ) | — | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.68 | (0.05 | ) | 3.32 | 3.27 | (0.01 | ) | — | — | (0.01 | ) | |||||||||||||||||||||
Year ended 3-31-2013(6) | 13.62 | (0.01 | ) | 1.07 | 1.06 | — | — | — | — | |||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 18.57 | 0.04 | (0.45 | ) | (0.41 | ) | — | — | — | — | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 18.20 | 0.06 | (0.26 | ) | (0.20 | ) | — | — | — | — | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.86 | (0.01 | ) | 3.39 | 3.38 | (0.04 | ) | — | — | (0.04 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 13.56 | 0.09 | 1.21 | 1.30 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2012 | 14.15 | 0.11 | (0.59 | ) | (0.48 | ) | (0.11 | ) | — | — | (0.11 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 12.69 | 0.11 | 1.35 | 1.46 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 8.58 | 0.07 | 4.22 | 4.29 | (0.14 | ) | — | (0.04 | ) | (0.18 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
138 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 17.75 | -1.17 | % | $ | 334 | 1.54 | %(4) | 0.43 | %(4) | 1.68 | %(4) | 0.29 | %(4) | 3 | % | ||||||||||||||||
Year ended 3-31-2014 | 17.96 | 22.41 | 332 | 1.61 | -0.20 | 1.75 | -0.34 | 47 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.43 | -1.73 | 3 | 2.71 | (4) | -0.72 | (4) | 2.85 | (4) | -0.86 | (4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 16.72 | 21.07 | 4 | 2.72 | -1.23 | 2.86 | -1.37 | 47 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.78 | -1.47 | 22 | 2.19 | (4) | -0.21 | (4) | 2.33 | (4) | -0.35 | (4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 17.03 | 21.73 | 24 | 2.22 | -0.78 | 2.36 | -0.92 | 47 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.84 | -1.16 | 1 | 1.59 | (4) | 0.38 | (4) | 1.98 | (4) | (0.01 | )(4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 18.05 | 22.43 | 1 | 1.60 | -0.17 | 2.08 | -0.65 | 47 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.16 | -0.93 | 8 | 1.12 | (4) | 0.85 | (4) | 1.26 | (4) | 0.71 | (4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 18.33 | 22.98 | 7 | 1.14 | 0.27 | 1.28 | 0.13 | 47 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.72 | -1.23 | — | * | 1.71 | (4) | 0.26 | (4) | 1.85 | (4) | 0.12 | (4) | 3 | |||||||||||||||||||
Year ended 3-31-2014 | 17.94 | 22.30 | — | * | 1.72 | -0.28 | 1.86 | -0.42 | 47 | |||||||||||||||||||||||
Year ended | 14.68 | 7.78 | — | * | 1.66 | (4) | -0.37 | (4) | 1.71 | (4) | -0.42 | (4) | 26 | (7) | ||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 18.16 | -2.21 | 2 | 0.98 | (4) | 1.27 | (4) | 1.12 | (4) | 1.13 | (4) | 3 | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.00 | -1.10 | 4 | 1.38 | (4) | 0.61 | (4) | 1.52 | (4) | 0.47 | (4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 18.20 | 22.76 | 4 | 1.35 | -0.04 | 1.49 | -0.18 | 47 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 139 |
Table of Contents
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(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 | $ | 20.27 | $ | 0.12 | $ | 0.59 | $ | 0.71 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | ||||||||||||
Year ended 3-31-2014 | 17.20 | 0.19 | 3.33 | 3.52 | (0.16 | ) | (0.29 | ) | (0.45 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.70 | 0.23 | 1.48 | 1.71 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 16.14 | 0.18 | (0.44 | ) | (0.26 | ) | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.61 | 0.13 | 2.55 | 2.68 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.86 | 0.12 | 3.74 | 3.86 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended | 19.97 | 0.04 | 0.58 | 0.62 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.99 | 0.05 | 3.27 | 3.32 | (0.05 | ) | (0.29 | ) | (0.34 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.54 | 0.09 | 1.48 | 1.57 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.98 | 0.04 | (0.43 | ) | (0.39 | ) | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.49 | 0.00 | 2.52 | 2.52 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.79 | 0.00 | 3.71 | 3.71 | (0.01 | ) | — | (0.01 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended | 20.05 | 0.05 | 0.58 | 0.63 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 17.05 | 0.07 | 3.29 | 3.36 | (0.07 | ) | (0.29 | ) | (0.36 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.59 | 0.11 | 1.49 | 1.60 | (0.14 | ) | — | (0.14 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 16.03 | 0.07 | (0.43 | ) | (0.36 | ) | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.53 | 0.03 | 2.54 | 2.57 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.81 | 0.04 | 3.71 | 3.75 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended | 20.21 | 0.11 | 0.59 | 0.70 | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 17.16 | 0.17 | 3.32 | 3.49 | (0.15 | ) | (0.29 | ) | (0.44 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.66 | 0.21 | 1.49 | 1.70 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 16.10 | 0.17 | (0.44 | ) | (0.27 | ) | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.58 | 0.13 | 2.54 | 2.67 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.84 | 0.13 | 3.73 | 3.86 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended | 20.33 | 0.16 | 0.59 | 0.75 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 17.25 | 0.26 | 3.33 | 3.59 | (0.22 | ) | (0.29 | ) | (0.51 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.73 | 0.28 | 1.49 | 1.77 | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 16.17 | 0.24 | (0.45 | ) | (0.21 | ) | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.63 | 0.18 | 2.56 | 2.74 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.88 | 0.17 | 3.75 | 3.92 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended | 20.25 | 0.09 | 0.59 | 0.68 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 17.19 | 0.14 | 3.33 | 3.47 | (0.12 | ) | (0.29 | ) | (0.41 | ) | ||||||||||||||||||
Year ended 3-31-2013(6) | 15.79 | 0.01 | 1.39 | 1.40 | — | — | — | |||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 20.64 | 0.06 | 0.34 | 0.40 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended | 20.30 | 0.13 | 0.59 | 0.72 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 17.23 | 0.21 | 3.33 | 3.54 | (0.18 | ) | (0.29 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.72 | 0.24 | 1.50 | 1.74 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 16.16 | 0.19 | (0.44 | ) | (0.25 | ) | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.63 | 0.15 | 2.55 | 2.70 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.87 | 0.14 | 3.75 | 3.89 | (0.13 | ) | — | (0.13 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
140 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 20.90 | 3.51 | % | $ | 309 | 1.24 | %(4) | 1.18 | %(4) | — | % | — | % | 21 | % | ||||||||||||||||
Year ended 3-31-2014 | 20.27 | 20.70 | 291 | 1.27 | 1.03 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.59 | 3.14 | 12 | 2.02 | (4) | 0.41 | (4) | — | — | 21 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.97 | 19.70 | 13 | 2.05 | 0.25 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.68 | 3.21 | 47 | 1.91 | (4) | 0.51 | (4) | — | — | 21 | ||||||||||||||||||||||
Year ended 3-31-2014 | 20.05 | 19.85 | 47 | 1.93 | 0.37 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.84 | 3.44 | 5 | 1.37 | (4) | 1.05 | (4) | 1.60 | (4) | 0.82 | (4) | 21 | ||||||||||||||||||||
Year ended 3-31-2014 | 20.21 | 20.52 | 4 | 1.37 | 0.93 | 1.66 | 0.64 | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.96 | 3.66 | 22 | 0.93 | (4) | 1.50 | (4) | — | — | 21 | ||||||||||||||||||||||
Year ended 3-31-2014 | 20.33 | 21.06 | 19 | 0.94 | 1.36 | — | — | 43 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.88 | 3.35 | — | * | 1.52 | (4) | 0.91 | (4) | — | — | 21 | |||||||||||||||||||||
Year ended 3-31-2014 | 20.25 | 20.29 | — | * | 1.54 | 0.76 | — | — | 43 | |||||||||||||||||||||||
Year ended | 17.19 | 8.93 | — | * | 1.51 | (4) | 0.23 | (4) | — | — | 45 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.99 | 1.93 | — | * | 0.77 | (4) | 1.63 | (4) | — | — | 21 | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.93 | 3.54 | 11 | 1.18 | (4) | 1.25 | (4) | — | — | 21 | ||||||||||||||||||||||
Year ended 3-31-2014 | 20.30 | 20.74 | 11 | 1.19 | 1.11 | — | — | 43 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 141 |
Table of Contents
FINANCIAL HIGHLIGHTS
Ivy Funds | FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD |
IVY EMERGING MARKETS EQUITY 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 | $ | 15.04 | $ | 0.08 | $ | 0.23 | $ | 0.31 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2014 | 13.88 | 0.02 | 1.22 | 1.24 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 13.98 | 0.03 | (0.03 | ) | 0.00 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 16.94 | 0.01 | (2.39 | ) | (2.38 | ) | (0.06 | ) | (0.52 | ) | (0.58 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.84 | (0.01 | ) | 2.11 | 2.10 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.86 | (0.08 | ) | 6.06 | 5.98 | — | — | — | ||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended | 12.66 | 0.00 | 0.19 | 0.19 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 11.78 | (0.12 | ) | 1.00 | 0.88 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2013 | 11.92 | (0.10 | ) | (0.04 | ) | (0.14 | ) | — | * | — | — | * | ||||||||||||||||
Year ended 3-31-2012 | 14.64 | (0.13 | ) | (2.07 | ) | (2.20 | ) | — | 0.52 | 0.52 | ||||||||||||||||||
Year ended 3-31-2011 | 12.97 | (0.15 | ) | 1.82 | 1.67 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.83 | (0.19 | ) | 5.33 | 5.14 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended | 13.20 | 0.01 | 0.20 | 0.21 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 12.23 | (0.07 | ) | 1.06 | 0.99 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 12.36 | (0.06 | ) | (0.03 | ) | (0.09 | ) | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||
Year ended 3-31-2012 | 15.10 | (0.08 | ) | (2.14 | ) | (2.22 | ) | — | (0.52 | ) | (0.52 | ) | ||||||||||||||||
Year ended 3-31-2011 | 13.33 | (0.10 | ) | 1.87 | 1.77 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.01 | (0.17 | ) | 5.49 | 5.32 | — | — | — | ||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||
Six-month period ended | 15.23 | 0.10 | 0.22 | 0.32 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 14.04 | 0.06 | 1.25 | 1.31 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.12 | 0.09 | (0.03 | ) | 0.06 | (0.14 | ) | — | (0.14 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.15 | 0.06 | (2.41 | ) | (2.35 | ) | (0.16 | ) | (0.52 | ) | (0.68 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.98 | 0.05 | 2.12 | 2.17 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 8.90 | (0.01 | ) | 6.09 | 6.08 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended | 15.43 | 0.11 | 0.22 | 0.33 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 14.23 | 0.09 | 1.26 | 1.35 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.30 | 0.10 | (0.02 | ) | 0.08 | (0.15 | ) | — | (0.15 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.39 | 0.08 | (2.46 | ) | (2.38 | ) | (0.19 | ) | (0.52 | ) | (0.71 | ) | ||||||||||||||||
Year ended 3-31-2011 | 15.16 | 0.05 | 2.18 | 2.23 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 9.00 | (0.01 | ) | 6.17 | 6.16 | — | — | — | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended | 15.02 | 0.06 | 0.22 | 0.28 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 13.87 | (0.01 | ) | 1.23 | 1.22 | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||
Year ended 3-31-2013(7) | 14.07 | (0.04 | ) | (0.16 | ) | (0.20 | ) | — | — | — | ||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended | 16.41 | 0.00 | (0.64 | ) | (0.64 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended | 15.33 | 0.08 | 0.22 | 0.30 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 14.13 | 0.05 | 1.26 | 1.31 | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.22 | 0.09 | (0.05 | ) | 0.04 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.25 | 0.05 | (2.44 | ) | (2.39 | ) | (0.12 | ) | (0.52 | ) | (0.64 | ) | ||||||||||||||||
Year ended 3-31-2011 | 15.08 | 0.03 | 2.14 | 2.17 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 8.98 | (0.05 | ) | 6.15 | 6.10 | — | — | — |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class share is closed to investment. |
(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. |
(9) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
142 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 15.35 | 2.06 | % | $ | 455 | 1.50 | %(4) | 1.06 | %(4) | 1.68 | %(4) | 0.88 | %(4) | 47 | % | ||||||||||||||||
Year ended 3-31-2014 | 15.04 | 8.95 | 536 | 1.73 | 0.17 | — | — | 138 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 12.85 | 1.50 | 8 | 2.50 | (4) | 0.06 | (4) | 2.76 | (4) | -0.20 | (4) | 47 | ||||||||||||||||||||
Year ended 3-31-2014 | 12.66 | 7.47 | 9 | 3.00 | -1.04 | — | — | 138 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 13.41 | 1.59 | 38 | 2.40 | (4) | 0.17 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 13.20 | 8.06 | 44 | 2.47 | -0.59 | — | — | 138 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.55 | 2.10 | — | * | 1.33 | (4) | 1.25 | (4) | — | — | 47 | |||||||||||||||||||||
Year ended 3-31-2014 | 15.23 | 9.35 | — | * | 1.35 | 0.44 | — | — | 138 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.76 | 2.14 | 123 | 1.23 | (4) | 1.35 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.43 | 9.52 | 139 | 1.22 | 0.62 | — | — | 138 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.30 | 1.86 | 1 | 1.82 | (4) | 0.77 | (4) | — | — | 47 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.02 | 8.75 | 1 | 1.83 | -0.05 | — | — | 138 | ||||||||||||||||||||||||
Year ended | 13.87 | -1.35 | — | * | 1.80 | (4) | -1.09 | (4) | — | — | 142 | (8) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.77 | -3.90 | 6 | 1.05 | (4) | -0.02 | (4) | — | — | 47 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.63 | 1.96 | 11 | 1.50 | (4) | 1.05 | (4) | 1.55 | (4) | 1.00 | (4) | 47 | ||||||||||||||||||||
Year ended 3-31-2014 | 15.33 | 9.19 | 11 | 1.47 | 0.34 | — | — | 138 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 143 |
Table of Contents
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)(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 9-30-2014 (unaudited) | $ | 29.76 | $ | 0.20 | $ | (1.26 | ) | $ | (1.06 | ) | $ | — | $ | — | $ | — | ||||||||||||
Year ended 3-31-2014 | 24.70 | 0.32 | 4.82 | 5.14 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 22.89 | 0.07 | 1.83 | 1.90 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.61 | 0.07 | (1.72 | ) | (1.65 | ) | (0.07 | ) | — | (0.07 | ) | |||||||||||||||||
Year ended 3-31-2011 | 21.44 | (0.01 | ) | 3.24 | 3.23 | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 15.08 | 0.27 | 6.43 | 6.70 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 27.66 | 0.03 | (1.17 | ) | (1.14 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 23.16 | 0.01 | 4.49 | 4.50 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2013 | 21.62 | (0.15 | ) | 1.69 | 1.54 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 23.40 | (0.13 | ) | (1.65 | ) | (1.78 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 20.53 | (0.21 | ) | 3.08 | 2.87 | — | * | — | — | * | ||||||||||||||||||
Year ended 3-31-2010 | 14.50 | 0.10 | 6.14 | 6.24 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 28.25 | 0.10 | (1.19 | ) | (1.09 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 23.53 | 0.16 | 4.56 | 4.72 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2013 | 21.86 | (0.06 | ) | 1.73 | 1.67 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 23.58 | (0.06 | ) | (1.66 | ) | (1.72 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 20.63 | (0.14 | ) | 3.11 | 2.97 | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 14.55 | 0.18 | 6.17 | 6.35 | (0.27 | ) | — | (0.27 | ) | |||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.93 | 0.26 | (1.26 | ) | (1.00 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 24.84 | 0.44 | 4.85 | 5.29 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 23.02 | 0.18 | 1.84 | 2.02 | (0.20 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.76 | 0.18 | (1.74 | ) | (1.56 | ) | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||
Year ended 3-31-2011 | 21.48 | 0.09 | 3.28 | 3.37 | (0.09 | ) | — | (0.09 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 15.08 | 0.39 | 6.44 | 6.83 | (0.43 | ) | — | (0.43 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.97 | 0.28 | (1.27 | ) | (0.99 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 24.87 | 0.48 | 4.85 | 5.33 | (0.23 | ) | — | (0.23 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 23.04 | �� | 0.26 | 1.81 | 2.07 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 24.82 | 0.21 | (1.75 | ) | (1.54 | ) | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||
Year ended 3-31-2011 | 21.51 | 0.12 | 3.29 | 3.41 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 15.09 | 0.44 | 6.43 | 6.87 | (0.45 | ) | — | (0.45 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.75 | 0.18 | (1.24 | ) | (1.06 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 24.70 | 0.31 | 4.82 | 5.13 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2013(6) | 24.16 | 0.00 | 0.54 | 0.54 | — | — | — | |||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 29.18 | 0.00 | (0.19 | ) | (0.19 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 29.95 | 0.14 | (1.16 | ) | (1.02 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 24.86 | 0.44 | 4.81 | 5.25 | (0.16 | ) | — | (0.16 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 23.04 | 0.15 | 1.85 | 2.00 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 24.75 | 0.17 | (1.75 | ) | (1.58 | ) | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||
Year ended 3-31-2011 | 21.50 | 0.09 | 3.24 | 3.33 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 15.10 | 0.33 | 6.48 | 6.81 | (0.41 | ) | — | (0.41 | ) |
* | 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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(5) | Class share 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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
144 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 28.70 | -3.56 | % | $ | 150 | 1.69 | %(3) | 1.35 | %(3) | 89 | % | ||||||||||||
Year ended 3-31-2014 | 29.76 | 20.83 | 163 | 1.76 | 1.17 | 116 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||
Six-month period ended | 26.52 | -4.12 | 2 | 2.89 | (3) | 0.22 | (3) | 89 | ||||||||||||||||
Year ended 3-31-2014 | 27.66 | 19.43 | 2 | 2.91 | 0.04 | 116 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||
Six-month period ended | 27.16 | -3.86 | 9 | 2.33 | (3) | 0.72 | (3) | 89 | ||||||||||||||||
Year ended 3-31-2014 | 28.25 | 20.06 | 11 | 2.37 | 0.61 | 116 | ||||||||||||||||||
Year ended 3-31-2013 | 23.53 | 7.64 | 9 | 2.43 | -0.26 | 71 | ||||||||||||||||||
Year ended 3-31-2012 | 23.58 | -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 | ||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||
Six-month period ended | 28.93 | -3.34 | — | * | 1.29 | (3) | 1.72 | (3) | 89 | |||||||||||||||
Year ended 3-31-2014 | 29.93 | 21.34 | — | * | 1.33 | 1.62 | 116 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares | ||||||||||||||||||||||||
Six-month period ended | 28.98 | -3.30 | 26 | 1.20 | (3) | 1.86 | (3) | 89 | ||||||||||||||||
Year ended 3-31-2014 | 29.97 | 21.50 | 31 | 1.19 | 1.76 | 116 | ||||||||||||||||||
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 | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||
Six-month period ended | 28.69 | -3.56 | — | * | 1.79 | (3) | 1.22 | (3) | 89 | |||||||||||||||
Year ended 3-31-2014 | 29.75 | 20.73 | — | * | 1.79 | 1.15 | 116 | |||||||||||||||||
Year ended 3-31-2013(6) | 24.70 | 2.28 | — | * | 1.74 | (3) | 0.02 | (3) | 71 | (7) | ||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 28.99 | -0.65 | 2 | 1.03 | (3) | -0.08 | (3) | 89 | ||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||
Six-month period ended | 28.93 | -3.41 | 5 | 1.45 | (3) | 0.94 | (3) | 89 | ||||||||||||||||
Year ended 3-31-2014 | 29.95 | 21.17 | 3 | 1.46 | 1.57 | 116 | ||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 145 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 10.06 | $ | 0.18 | $ | (0.02 | ) | $ | 0.16 | $ | (0.16 | ) | $ | — | $ | (0.16 | ) | |||||||||||
Year ended 3-31-2014 | 10.26 | 0.35 | (0.19 | ) | 0.16 | (0.34 | ) | (0.02 | ) | (0.36 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.06 | 0.14 | (0.03 | ) | 0.11 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 10.25 | 0.27 | (0.18 | ) | 0.09 | (0.26 | ) | (0.02 | ) | (0.28 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.06 | 0.14 | (0.02 | ) | 0.12 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 10.25 | 0.27 | (0.18 | ) | 0.09 | (0.26 | ) | (0.02 | ) | (0.28 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.06 | 0.19 | (0.02 | ) | 0.17 | (0.17 | ) | — | (0.17 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 10.25 | 0.37 | (0.18 | ) | 0.19 | (0.36 | ) | (0.02 | ) | (0.38 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.05 | 0.15 | (0.03 | ) | 0.12 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 10.24 | 0.29 | (0.18 | ) | 0.11 | (0.28 | ) | (0.02 | ) | (0.30 | ) | |||||||||||||||||
Year ended 3-31-2013(6) | 10.17 | 0.09 | 0.04 | 0.13 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended | 10.15 | 0.07 | (0.10 | ) | (0.03 | ) | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.07 | 0.18 | (0.03 | ) | 0.15 | (0.16 | ) | — | (0.16 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 10.26 | 0.34 | (0.18 | ) | 0.16 | (0.33 | ) | (0.02 | ) | (0.35 | ) | |||||||||||||||||
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 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
146 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 10.06 | 1.54 | % | $ | 196 | 0.99 | %(4) | 3.50 | %(4) | 1.21 | %(4) | 3.28 | %(4) | 11 | % | ||||||||||||||||
Year ended 3-31-2014 | 10.06 | 1.65 | 187 | 0.99 | 3.43 | 1.25 | 3.17 | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 10.05 | 1.07 | 6 | 1.74 | (4) | 2.75 | (4) | 2.10 | (4) | 2.39 | (4) | 11 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.06 | 0.90 | 6 | 1.74 | 2.67 | 2.10 | 2.31 | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 10.06 | 1.17 | 35 | 1.74 | (4) | 2.76 | (4) | 1.87 | (4) | 2.63 | (4) | 11 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.06 | 0.90 | 33 | 1.74 | 2.67 | 1.88 | 2.53 | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 10.06 | 1.67 | 69 | 0.74 | (4) | 3.75 | (4) | 0.86 | (4) | 3.63 | (4) | 11 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.06 | 1.91 | 58 | 0.74 | 3.67 | 0.89 | 3.52 | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 10.04 | 1.20 | — | * | 1.46 | (4) | 3.03 | (4) | — | — | 11 | |||||||||||||||||||||
Year ended 3-31-2014 | 10.05 | 1.14 | — | * | 1.48 | 2.93 | — | — | 21 | |||||||||||||||||||||||
Year ended 3-31-2013(6) | 10.24 | 1.30 | — | * | 1.45 | (4) | 3.10 | (4) | — | — | 26 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 10.06 | -0.35 | — | * | 0.70 | (4) | 3.82 | (4) | — | — | 11 | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 10.06 | 1.44 | 9 | 0.99 | (4) | 3.50 | (4) | 1.11 | (4) | 3.38 | (4) | 11 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.07 | 1.65 | 8 | 0.99 | 3.42 | 1.13 | 3.28 | 21 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 147 |
Table of Contents
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 (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 | $ | 13.27 | $ | 0.27 | $ | (0.12 | ) | $ | 0.15 | $ | (0.28 | ) | $ | — | $ | (0.28 | ) | |||||||||||
Year ended 3-31-2014 | 11.82 | 0.57 | 1.44 | 2.01 | (0.46 | ) | (0.10 | ) | (0.56 | ) | ||||||||||||||||||
Year ended 3-31-2013(5) | 10.00 | 0.35 | 1.84 | 2.19 | (0.28 | ) | (0.09 | ) | (0.37 | ) | ||||||||||||||||||
Class B Shares(6) | ||||||||||||||||||||||||||||
Six-month period ended | 13.27 | 0.23 | (0.13 | ) | 0.10 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.81 | 0.47 | 1.46 | 1.93 | (0.37 | ) | (0.10 | ) | (0.47 | ) | ||||||||||||||||||
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 | 13.27 | 0.23 | (0.13 | ) | 0.10 | (0.24 | ) | — | (0.24 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.81 | 0.50 | 1.44 | 1.94 | (0.38 | ) | (0.10 | ) | (0.48 | ) | ||||||||||||||||||
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 | 13.28 | 0.29 | (0.12 | ) | 0.17 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.82 | 0.61 | 1.46 | 2.07 | (0.51 | ) | (0.10 | ) | (0.61 | ) | ||||||||||||||||||
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 | 13.28 | 0.25 | (0.13 | ) | 0.12 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.82 | 0.52 | 1.46 | 1.98 | (0.42 | ) | (0.10 | ) | (0.52 | ) | ||||||||||||||||||
Year ended 3-31-2013(7) | 11.28 | 0.11 | 0.46 | 0.57 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended | 13.37 | 0.10 | (0.21 | ) | (0.11 | ) | (0.11 | ) | — | (0.11 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended | 13.28 | 0.28 | (0.13 | ) | 0.15 | (0.29 | ) | — | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.82 | 0.58 | 1.46 | 2.04 | (0.48 | ) | (0.10 | ) | (0.58 | ) | ||||||||||||||||||
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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(7) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
148 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 13.14 | 1.08 | % | $ | 213 | 1.30 | %(4) | 4.03 | %(4) | 1.39 | %(4) | 3.94 | %(4) | 58 | % | ||||||||||||||||
Year ended 3-31-2014 | 13.27 | 17.46 | 184 | 1.30 | 4.51 | 1.48 | 4.33 | 98 | ||||||||||||||||||||||||
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(6) | ||||||||||||||||||||||||||||||||
Six-month period ended | 13.13 | 0.68 | 2 | 1.97 | (4) | 3.42 | (4) | — | — | 58 | ||||||||||||||||||||||
Year ended 3-31-2014 | 13.27 | 16.68 | 2 | 2.04 | 3.73 | 2.05 | 3.72 | 98 | ||||||||||||||||||||||||
Year ended 3-31-2013(5) | 11.81 | 22.41 | 1 | 2.01 | (4) | 2.89 | (4) | 2.21 | (4) | 2.69 | (4) | 73 | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 13.13 | 0.69 | 9 | 1.94 | (4) | 3.39 | (4) | — | — | 58 | ||||||||||||||||||||||
Year ended 3-31-2014 | 13.27 | 16.75 | 8 | 1.99 | 3.91 | 2.04 | 3.86 | 98 | ||||||||||||||||||||||||
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 | 13.15 | 1.26 | 21 | 0.94 | (4) | 4.30 | (4) | 0.98 | (4) | 4.26 | (4) | 58 | ||||||||||||||||||||
Year ended 3-31-2014 | 13.28 | 17.97 | 15 | 0.94 | 4.86 | 1.06 | 4.74 | 98 | ||||||||||||||||||||||||
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 | 13.14 | 0.87 | — | * | 1.59 | (4) | 3.75 | (4) | — | — | 58 | |||||||||||||||||||||
Year ended 3-31-2014 | 13.28 | 17.11 | — | * | 1.65 | 4.11 | 1.66 | 4.10 | 98 | |||||||||||||||||||||||
Year ended 3-31-2013(7) | 11.82 | 5.05 | — | * | 1.67 | (4) | 3.36 | (4) | 1.87 | (4) | 3.16 | (4) | 73 | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 13.15 | -0.86 | 1 | 0.82 | (4) | 4.91 | (4) | — | — | 58 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 13.14 | 1.05 | 4 | 1.19 | (4) | 4.14 | (4) | 1.23 | (4) | 4.10 | (4) | 58 | ||||||||||||||||||||
Year ended 3-31-2014 | 13.28 | 17.68 | 4 | 1.19 | 4.60 | 1.31 | 4.48 | 98 | ||||||||||||||||||||||||
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.
2014 | SEMIANNUAL REPORT | 149 |
Table of Contents
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(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 9-30-2014 (unaudited) | $ | 15.58 | $ | 0.35 | $ | (0.14 | ) | $ | 0.21 | $ | (0.32 | ) | $ | — | $ | (0.32 | ) | |||||||||||
Year ended 3-31-2014 | 14.79 | 0.68 | 0.70 | 1.38 | (0.59 | ) | — | (0.59 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.52 | 0.62 | 0.33 | 0.95 | (0.68 | ) | — | (0.68 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.19 | 0.57 | (0.57 | ) | 0.00 | (0.67 | ) | — | (0.67 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.59 | 0.36 | 1.54 | 1.90 | (0.30 | ) | — | (0.30 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.56 | 0.26 | 3.79 | 4.05 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.32 | 0.28 | (0.14 | ) | 0.14 | (0.25 | ) | — | (0.25 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.55 | 0.52 | 0.70 | 1.22 | (0.45 | ) | — | (0.45 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.29 | 0.48 | 0.32 | 0.80 | (0.54 | ) | — | (0.54 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 14.93 | 0.43 | (0.57 | ) | (0.14 | ) | (0.50 | ) | — | (0.50 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.40 | 0.23 | 1.51 | 1.74 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.52 | 0.12 | 3.76 | 3.88 | — | * | — | — | * | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.41 | 0.30 | (0.14 | ) | 0.16 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.64 | 0.57 | 0.70 | 1.27 | (0.50 | ) | — | (0.50 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.38 | 0.52 | 0.32 | 0.84 | (0.58 | ) | — | (0.58 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.02 | 0.49 | (0.58 | ) | (0.09 | ) | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||
Year ended 3-31-2011 | 13.46 | 0.28 | 1.52 | 1.80 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.53 | 0.18 | 3.77 | 3.95 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.58 | 0.35 | (0.14 | ) | 0.21 | (0.32 | ) | — | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.79 | 0.68 | 0.70 | 1.38 | (0.59 | ) | — | (0.59 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.52 | 0.62 | 0.33 | 0.95 | (0.68 | ) | — | (0.68 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.20 | 0.59 | (0.58 | ) | 0.01 | (0.69 | ) | — | (0.69 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.59 | 0.38 | 1.54 | 1.92 | (0.31 | ) | — | (0.31 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.54 | 0.27 | 3.80 | 4.07 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.70 | 0.38 | (0.14 | ) | 0.24 | (0.35 | ) | — | (0.35 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.90 | 0.74 | 0.71 | 1.45 | (0.65 | ) | — | (0.65 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.62 | 0.70 | 0.32 | 1.02 | (0.74 | ) | — | (0.74 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.31 | 0.64 | (0.58 | ) | 0.06 | (0.75 | ) | — | (0.75 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.67 | 0.45 | 1.53 | 1.98 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.57 | 0.33 | 3.80 | 4.13 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.57 | 0.34 | (0.15 | ) | 0.19 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.79 | 0.64 | 0.70 | 1.34 | (0.56 | ) | — | (0.56 | ) | |||||||||||||||||||
Year ended | 14.37 | 0.15 | 0.32 | 0.47 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended | 15.95 | 0.14 | (0.36 | ) | (0.22 | ) | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.64 | 0.37 | (0.15 | ) | 0.22 | (0.33 | ) | — | (0.33 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 14.85 | 0.71 | 0.70 | 1.41 | (0.62 | ) | — | (0.62 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 14.57 | 0.62 | 0.36 | 0.98 | (0.70 | ) | — | (0.70 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.25 | 0.59 | (0.57 | ) | 0.02 | (0.70 | ) | — | (0.70 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.63 | 0.41 | 1.53 | 1.94 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.57 | 0.28 | 3.80 | 4.08 | (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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
150 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 15.47 | 1.30 | % | $ | 562 | 1.29 | %(4) | 4.44 | %(4) | — | % | — | % | 49 | % | ||||||||||||||||
Year ended 3-31-2014 | 15.58 | 9.60 | 494 | 1.35 | 4.52 | 1.35 | 4.52 | 92 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.21 | 0.88 | 6 | 2.19 | (4) | 3.55 | (4) | — | — | 49 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.32 | 8.53 | 6 | 2.27 | 3.54 | — | — | 92 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.30 | 0.99 | 33 | 1.94 | (4) | 3.78 | (4) | — | — | 49 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.41 | 8.86 | 28 | 1.99 | 3.82 | 1.99 | 3.82 | 92 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.47 | 1.28 | 3 | 1.33 | (4) | 4.41 | (4) | 1.61 | (4) | 4.13 | (4) | 49 | ||||||||||||||||||||
Year ended 3-31-2014 | 15.58 | 9.56 | 3 | 1.33 | 4.51 | 1.70 | 4.14 | 92 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.59 | 1.48 | 59 | 0.93 | (4) | 4.80 | (4) | — | — | 49 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.70 | 10.07 | 39 | 0.93 | 4.90 | 0.94 | 4.89 | 92 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.46 | 1.19 | — | * | 1.51 | (4) | 4.23 | (4) | — | — | 49 | |||||||||||||||||||||
Year ended 3-31-2014 | 15.57 | 9.32 | — | * | 1.55 | 4.28 | — | — | 92 | |||||||||||||||||||||||
Year ended 3-31-2013(6) | 14.79 | 3.30 | — | * | 1.52 | (4) | 3.73 | (4) | 1.53 | (4) | 3.72 | (4) | 109 | (7) | ||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.60 | -1.39 | 2 | 0.77 | (4) | 5.68 | (4) | — | — | 49 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 15.53 | 1.36 | 7 | 1.17 | (4) | 4.58 | (4) | 1.18 | (4) | 4.57 | (4) | 49 | ||||||||||||||||||||
Year ended 3-31-2014 | 15.64 | 9.77 | 7 | 1.17 | 4.68 | 1.19 | 4.66 | 92 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 151 |
Table of Contents
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(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 9-30-2014 (unaudited) | $ | 8.75 | $ | 0.28 | $ | (0.24 | ) | $ | 0.04 | $ | (0.29 | ) | $ | — | $ | (0.29 | ) | |||||||||||
Year ended 3-31-2014 | 8.72 | 0.58 | 0.18 | 0.76 | (0.60 | ) | (0.13 | ) | (0.73 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.63 | 0.52 | 1.15 | (0.63 | ) | (0.10 | ) | (0.73 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.64 | 0.02 | 0.66 | (0.65 | ) | (0.17 | ) | (0.82 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.69 | 0.50 | 1.19 | (0.69 | ) | (0.36 | ) | (1.05 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.58 | 0.64 | 1.93 | 2.57 | (0.66 | ) | (0.17 | ) | (0.83 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.25 | (0.25 | ) | 0.00 | (0.25 | ) | — | (0.25 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.52 | 0.17 | 0.69 | (0.53 | ) | (0.13 | ) | (0.66 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.57 | 0.52 | 1.09 | (0.57 | ) | (0.10 | ) | (0.67 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.58 | 0.02 | 0.60 | (0.59 | ) | (0.17 | ) | (0.76 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.62 | 0.50 | 1.12 | (0.62 | ) | (0.36 | ) | (0.98 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.57 | 0.57 | 1.94 | 2.51 | (0.59 | ) | (0.17 | ) | (0.76 | ) | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.25 | (0.24 | ) | 0.01 | (0.26 | ) | — | (0.26 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.52 | 0.18 | 0.70 | (0.54 | ) | (0.13 | ) | (0.67 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.57 | 0.52 | 1.09 | (0.57 | ) | (0.10 | ) | (0.67 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.58 | 0.03 | 0.61 | (0.60 | ) | (0.17 | ) | (0.77 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.63 | 0.50 | 1.13 | (0.63 | ) | (0.36 | ) | (0.99 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.58 | 0.60 | 1.92 | 2.52 | (0.61 | ) | (0.17 | ) | (0.78 | ) | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.27 | (0.24 | ) | 0.03 | (0.28 | ) | — | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.55 | 0.17 | 0.72 | (0.56 | ) | (0.13 | ) | (0.69 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.59 | 0.52 | 1.11 | (0.59 | ) | (0.10 | ) | (0.69 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.62 | 0.01 | 0.63 | (0.62 | ) | (0.17 | ) | (0.79 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.67 | 0.50 | 1.17 | (0.67 | ) | (0.36 | ) | (1.03 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.57 | 0.61 | 1.95 | 2.56 | (0.64 | ) | (0.17 | ) | (0.81 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.29 | (0.24 | ) | 0.05 | (0.30 | ) | — | (0.30 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.60 | 0.18 | 0.78 | (0.62 | ) | (0.13 | ) | (0.75 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.65 | 0.52 | 1.17 | (0.65 | ) | (0.10 | ) | (0.75 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.66 | 0.03 | 0.69 | (0.68 | ) | (0.17 | ) | (0.85 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.72 | 0.50 | 1.22 | (0.72 | ) | (0.36 | ) | (1.08 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.58 | 0.69 | 1.91 | 2.60 | (0.69 | ) | (0.17 | ) | (0.86 | ) | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.27 | (0.25 | ) | 0.02 | (0.27 | ) | — | (0.27 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.52 | 0.21 | 0.73 | (0.57 | ) | (0.13 | ) | (0.70 | ) | ||||||||||||||||||
Year ended | 8.54 | 0.16 | 0.17 | 0.33 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended | 8.63 | 0.09 | (0.12 | ) | (0.03 | ) | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 8.75 | 0.28 | (0.24 | ) | 0.04 | (0.29 | ) | — | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 8.72 | 0.58 | 0.18 | 0.76 | (0.60 | ) | (0.13 | ) | (0.73 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 8.30 | 0.63 | 0.52 | 1.15 | (0.63 | ) | (0.10 | ) | (0.73 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 8.46 | 0.64 | 0.03 | 0.67 | (0.66 | ) | (0.17 | ) | (0.83 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 8.32 | 0.69 | 0.50 | 1.19 | (0.69 | ) | (0.36 | ) | (1.05 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 6.58 | 0.66 | 1.92 | 2.58 | (0.67 | ) | (0.17 | ) | (0.84 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
152 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 8.50 | 0.36 | % | $ | 3,406 | 0.93 | %(4) | 6.41 | %(4) | — | % | — | % | 28 | % | ||||||||||||||||
Year ended 3-31-2014 | 8.75 | 9.09 | 4,151 | 0.93 | 6.68 | — | — | 75 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | -0.02 | 150 | 1.68 | (4) | 5.67 | (4) | — | — | 28 | ||||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 8.28 | 165 | 1.68 | 5.96 | — | — | 75 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | 0.01 | 1,883 | 1.64 | (4) | 5.71 | (4) | — | — | 28 | ||||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 8.32 | 1,919 | 1.64 | 5.98 | — | — | 75 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | 0.20 | 10 | 1.25 | (4) | 6.10 | (4) | — | — | 28 | ||||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 8.69 | 10 | 1.27 | 6.34 | — | — | 75 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | 0.49 | 3,277 | 0.69 | (4) | 6.64 | (4) | — | — | 28 | ||||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 9.36 | 4,075 | 0.69 | 6.90 | — | — | 75 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | 0.19 | 51 | 1.29 | (4) | 6.08 | (4) | — | — | 28 | ||||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 8.71 | 30 | 1.28 | 6.00 | — | — | 75 | ||||||||||||||||||||||||
Year ended 3-31-2013(6) | 8.72 | 3.94 | — | * | 1.27 | (4) | 6.61 | (4) | — | — | 68 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 8.50 | -0.36 | 4 | 0.53 | (4) | 6.49 | (4) | — | — | 28 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 8.50 | 0.36 | 960 | 0.93 | (4) | 6.40 | (4) | 0.95 | (4) | 6.38 | (4) | 28 | ||||||||||||||||||||
Year ended 3-31-2014 | 8.75 | 9.09 | 1,129 | 0.93 | 6.67 | 0.94 | 6.66 | 75 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 153 |
Table of Contents
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(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 9-30-2014 (unaudited) | $ | 19.04 | $ | 0.17 | $ | 0.16 | $ | 0.33 | $ | — | $ | — | $ | — | ||||||||||||||
Year ended 3-31-2014 | 15.98 | 0.18 | 3.24 | 3.42 | (0.35 | ) | (0.01 | ) | (0.36 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.26 | 0.21 | 0.73 | 0.94 | (0.22 | ) | — | (0.22 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 17.14 | 0.27 | (1.66 | ) | (1.39 | ) | (0.27 | ) | (0.22 | ) | (0.49 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.84 | 0.18 | 2.27 | 2.45 | (0.15 | ) | — | (0.15 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.54 | 0.13 | 5.27 | 5.40 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.23 | 0.08 | 0.14 | 0.22 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 14.49 | 0.04 | 2.93 | 2.97 | (0.22 | ) | (0.01 | ) | (0.23 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 13.86 | 0.07 | 0.66 | 0.73 | (0.10 | ) | — | (0.10 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.64 | 0.14 | (1.53 | ) | (1.39 | ) | (0.17 | ) | (0.22 | ) | (0.39 | ) | ||||||||||||||||
Year ended 3-31-2011 | 13.59 | 0.05 | 2.06 | 2.11 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.77 | 0.02 | 4.82 | 4.84 | (0.02 | ) | — | (0.02 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.25 | 0.10 | 0.14 | 0.24 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 14.51 | 0.07 | 2.93 | 3.00 | (0.25 | ) | (0.01 | ) | (0.26 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 13.88 | 0.11 | 0.65 | 0.76 | (0.13 | ) | — | (0.13 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 15.65 | 0.17 | (1.53 | ) | (1.36 | ) | (0.19 | ) | (0.22 | ) | (0.41 | ) | ||||||||||||||||
Year ended 3-31-2011 | 13.58 | 0.07 | 2.08 | 2.15 | (0.08 | ) | — | (0.08 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 8.76 | 0.05 | 4.82 | 4.87 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.14 | 0.16 | 0.16 | 0.32 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.07 | 0.16 | 3.25 | 3.41 | (0.33 | ) | (0.01 | ) | (0.34 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.33 | 0.20 | 0.75 | 0.95 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 17.21 | 0.27 | (1.67 | ) | (1.40 | ) | (0.26 | ) | (0.22 | ) | (0.48 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.90 | 0.17 | 2.29 | 2.46 | (0.15 | ) | — | �� | (0.15 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 9.59 | 0.16 | 5.27 | 5.43 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.15 | 0.21 | 0.15 | 0.36 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.07 | 0.25 | 3.25 | 3.50 | (0.41 | ) | (0.01 | ) | (0.42 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.33 | 0.27 | 0.75 | 1.02 | (0.28 | ) | — | (0.28 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 17.22 | 0.32 | (1.66 | ) | (1.34 | ) | (0.33 | ) | (0.22 | ) | (0.55 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.90 | 0.23 | 2.30 | 2.53 | (0.21 | ) | — | (0.21 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.58 | 0.20 | 5.30 | 5.50 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.03 | 0.14 | 0.16 | 0.30 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 15.98 | 0.11 | 3.26 | 3.37 | (0.31 | ) | (0.01 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2013(6) | 15.40 | 0.04 | 0.54 | 0.58 | — | — | — | |||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 20.09 | 0.06 | (0.64 | ) | (0.58 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.16 | 0.18 | 0.15 | 0.33 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.08 | 0.21 | 3.25 | 3.46 | (0.37 | ) | (0.01 | ) | (0.38 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 15.35 | 0.24 | 0.73 | 0.97 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 17.23 | 0.29 | (1.66 | ) | (1.37 | ) | (0.29 | ) | (0.22 | ) | (0.51 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.92 | 0.20 | 2.28 | 2.48 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 9.59 | 0.04 | 5.43 | 5.47 | (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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
154 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 19.37 | 1.73 | % | $ | 1,169 | 1.35 | %(4) | 1.76 | %(4) | — | % | — | % | 46 | % | ||||||||||||||||
Year ended 3-31-2014 | 19.04 | 21.42 | 1,028 | 1.40 | 1.01 | — | — | 87 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.45 | 1.28 | 14 | 2.19 | (4) | 0.89 | (4) | — | — | 46 | ||||||||||||||||||||||
Year ended 3-31-2014 | 17.23 | 20.47 | 13 | 2.22 | 0.26 | — | — | 87 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.49 | 1.39 | 134 | 2.03 | (4) | 1.09 | (4) | — | — | 46 | ||||||||||||||||||||||
Year ended 3-31-2014 | 17.25 | 20.64 | 117 | 2.07 | 0.40 | — | — | 87 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.46 | 1.67 | 5 | 1.53 | (4) | 1.62 | (4) | 1.74 | (4) | 1.41 | (4) | 46 | ||||||||||||||||||||
Year ended 3-31-2014 | 19.14 | 21.32 | 4 | 1.53 | 0.90 | 1.85 | 0.58 | 87 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.51 | 1.88 | 986 | 1.02 | (4) | 2.08 | (4) | — | — | 46 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.15 | 21.93 | 802 | 1.04 | 1.39 | — | — | 87 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.33 | 1.58 | 9 | 1.62 | (4) | 1.40 | (4) | — | — | 46 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.03 | 21.19 | 5 | 1.64 | 0.61 | — | — | 87 | ||||||||||||||||||||||||
Year ended 3-31-2013(6) | 15.98 | 3.77 | — | * | 1.62 | (4) | 0.96 | (4) | — | — | 81 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 19.51 | -2.89 | 5 | 0.86 | (4) | 1.83 | (4) | — | — | 46 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.49 | 1.72 | 250 | 1.28 | (4) | 1.77 | (4) | — | — | 46 | ||||||||||||||||||||||
Year ended 3-31-2014 | 19.16 | 21.63 | 153 | 1.29 | 1.20 | — | — | 87 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 155 |
Table of Contents
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)(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 9-30-2014 (unaudited) | $ | 41.15 | $ | 0.22 | $ | (0.30 | ) | $ | (0.08 | ) | $ | — | $ | — | $ | — | ||||||||||||
Year ended 3-31-2014 | 35.50 | 0.19 | 5.92 | 6.11 | (0.46 | ) | — | (0.46 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 33.45 | 0.27 | 2.07 | 2.34 | (0.29 | ) | — | (0.29 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 33.23 | 0.26 | (0.04 | ) | 0.22 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 29.04 | 0.39 | 4.42 | 4.81 | (0.62 | ) | — | (0.62 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 19.83 | 0.27 | 9.18 | 9.45 | (0.24 | ) | — | (0.24 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 36.59 | 0.03 | (0.27 | ) | (0.24 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 31.63 | (0.16 | ) | 5.25 | 5.09 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 29.88 | (0.05 | ) | 1.84 | 1.79 | (0.04 | ) | — | (0.04 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 29.99 | (0.04 | ) | (0.07 | ) | (0.11 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 26.32 | 0.08 | 3.99 | 4.07 | (0.40 | ) | — | (0.40 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 18.06 | 0.02 | 8.29 | 8.31 | (0.05 | ) | — | (0.05 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 36.57 | 0.06 | (0.26 | ) | (0.20 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 31.61 | (0.08 | ) | 5.22 | 5.14 | (0.18 | ) | — | (0.18 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 29.85 | (0.02 | ) | 1.83 | 1.81 | (0.05 | ) | — | (0.05 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 29.93 | (0.02 | ) | (0.06 | ) | (0.08 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2011 | 26.27 | 0.10 | 3.97 | 4.07 | (0.41 | ) | — | (0.41 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 18.02 | 0.01 | 8.30 | 8.31 | (0.06 | ) | — | (0.06 | ) | |||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.19 | 0.27 | (0.30 | ) | (0.03 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 35.53 | 0.32 | 5.89 | 6.21 | (0.55 | ) | — | (0.55 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 33.52 | 0.35 | 2.07 | 2.42 | (0.41 | ) | — | (0.41 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 33.22 | 0.33 | (0.03 | ) | 0.30 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 29.04 | 0.45 | 4.42 | 4.87 | (0.69 | ) | — | (0.69 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 19.83 | 0.35 | 9.18 | 9.53 | (0.32 | ) | — | (0.32 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.57 | 0.30 | (0.30 | ) | 0.00 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 35.85 | 0.40 | 5.92 | 6.32 | (0.60 | ) | — | (0.60 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 33.84 | 0.33 | 2.16 | 2.49 | (0.48 | ) | — | (0.48 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 33.50 | 0.37 | (0.03 | ) | 0.34 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 29.26 | 0.69 | 4.28 | 4.97 | (0.73 | ) | — | (0.73 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 19.98 | 0.28 | 9.35 | 9.63 | (0.35 | ) | — | (0.35 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.11 | 0.11 | (0.23 | ) | (0.12 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 35.48 | 0.13 | 5.88 | 6.01 | (0.38 | ) | — | (0.38 | ) | |||||||||||||||||||
Year ended 3-31-2013(7) | 34.77 | 0.01 | 0.70 | 0.71 | — | — | — | |||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 42.56 | 0.07 | (1.05 | ) | (0.98 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.23 | 0.23 | (0.28 | ) | (0.05 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 35.57 | 0.30 | 5.87 | 6.17 | (0.51 | ) | — | (0.51 | ) | |||||||||||||||||||
Year ended 3-31-2013 | 33.54 | 0.27 | 2.10 | 2.37 | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 33.28 | 0.29 | (0.03 | ) | 0.26 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2011 | 29.06 | 0.58 | 4.31 | 4.89 | (0.67 | ) | — | (0.67 | ) | |||||||||||||||||||
Year ended 3-31-2010 | 19.86 | 0.28 | 9.23 | 9.51 | (0.31 | ) | — | (0.31 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class share is closed to investment. |
(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. |
(9) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
156 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 41.07 | -0.20 | % | $ | 371 | 1.45 | %(4) | 1.04 | %(4) | — | % | — | % | 35 | % | ||||||||||||||||
Year ended 3-31-2014 | 41.15 | 17.26 | 340 | 1.49 | 0.50 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 36.35 | -0.66 | 4 | 2.40 | (4) | 0.16 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 36.59 | 16.13 | 5 | 2.47 | -0.46 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 36.37 | -0.55 | 26 | 2.20 | (4) | 0.32 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 36.57 | 16.30 | 28 | 2.31 | -0.23 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.16 | -0.07 | — | * | 1.21 | (4) | 1.30 | (4) | — | — | 35 | |||||||||||||||||||||
Year ended 3-31-2014 | 41.19 | 17.58 | — | * | 1.22 | 0.84 | — | — | 46 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.57 | 0.00 | 68 | 1.09 | (4) | 1.41 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 41.57 | 17.73 | 66 | 1.11 | 1.02 | — | — | 46 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 40.99 | -0.29 | 1 | 1.70 | (4) | 0.51 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 41.11 | 17.01 | — | * | 1.70 | 0.33 | — | — | 46 | |||||||||||||||||||||||
Year ended 3-31-2013(7) | 35.48 | 2.04 | — | * | 1.70 | (4) | 0.15 | (4) | — | — | 40 | (8) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(9) | 41.58 | -2.30 | 2 | 0.93 | (4) | 1.12 | (4) | — | — | 35 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 41.18 | -0.12 | 12 | 1.36 | (4) | 1.11 | (4) | — | — | 35 | ||||||||||||||||||||||
Year ended 3-31-2014 | 41.23 | 17.38 | 11 | 1.38 | 0.79 | — | — | 46 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 157 |
Table of Contents
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 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 9-30-2014 (unaudited) | $ | 17.59 | $ | (0.01 | ) | $ | 1.15 | $ | 1.14 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 15.87 | 0.01 | 3.75 | 3.76 | — | (2.04 | ) | (2.04 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.84 | (0.08 | ) | 0.97 | 0.89 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.73 | (0.12 | ) | 3.21 | 3.09 | — | (1.98 | ) | (1.98 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.64 | (0.07 | ) | 1.03 | 0.96 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 14.36 | (0.11 | ) | 3.37 | 3.26 | — | (1.98 | ) | (1.98 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.57 | (0.01 | ) | 1.16 | 1.15 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 15.86 | 0.01 | 3.74 | 3.75 | — | (2.04 | ) | (2.04 | ) | |||||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.15 | 0.02 | 1.18 | 1.20 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.31 | 0.06 | 3.85 | 3.91 | (0.03 | ) | (2.04 | ) | (2.07 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.25 | (0.04 | ) | 1.14 | 1.10 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 15.62 | (0.04 | ) | 3.67 | 3.63 | — | (2.00 | ) | (2.00 | ) | ||||||||||||||||||
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 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 18.91 | 0.01 | 0.44 | 0.45 | — | — | — | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.89 | 0.00 | 1.17 | 1.17 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2014 | 16.11 | 0.03 | 3.80 | 3.83 | (0.01 | ) | (2.04 | ) | (2.05 | ) | ||||||||||||||||||
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 | ) |
(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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
158 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 18.73 | 6.48 | % | $ | 964 | 1.15 | %(4) | -0.11 | %(4) | 1.17 | %(4) | -0.13 | %(4) | 15 | % | ||||||||||||||||
Year ended 3-31-2014 | 17.59 | 24.21 | 1,090 | 1.15 | 0.07 | 1.19 | 0.03 | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.73 | 6.00 | 11 | 2.02 | (4) | -0.98 | (4) | — | — | 15 | ||||||||||||||||||||||
Year ended 3-31-2014 | 14.84 | 23.08 | 11 | 2.06 | -0.84 | — | — | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.60 | 6.14 | 80 | 1.88 | (4) | -0.84 | (4) | — | — | 15 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.64 | 23.17 | 78 | 1.90 | -0.68 | — | — | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.72 | 6.54 | 8 | 1.15 | (4) | -0.11 | (4) | 1.41 | (4) | -0.37 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2014 | 17.57 | 24.16 | 7 | 1.15 | 0.06 | 1.46 | -0.25 | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.35 | 6.61 | 282 | 0.88 | (4) | 0.17 | (4) | — | — | 15 | ||||||||||||||||||||||
Year ended 3-31-2014 | 18.15 | 24.52 | 118 | 0.88 | 0.34 | 0.88 | 0.34 | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.35 | 6.38 | 32 | 1.47 | (4) | -0.43 | (4) | — | — | 15 | ||||||||||||||||||||||
Year ended 3-31-2014 | 17.25 | 23.75 | 31 | 1.47 | -0.26 | — | — | 50 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 19.36 | 2.38 | 5 | 0.72 | (4) | 0.40 | (4) | — | — | 15 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.06 | 6.54 | 136 | 1.06 | (4) | -0.02 | (4) | 1.12 | (4) | -0.08 | (4) | 15 | ||||||||||||||||||||
Year ended 3-31-2014 | 17.89 | 24.30 | 131 | 1.06 | 0.16 | 1.13 | 0.09 | 50 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 159 |
Table of Contents
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(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 9-30-2014 (unaudited) | $ | 10.90 | $ | 0.07 | $ | (0.02 | ) | $ | 0.05 | $ | (0.08 | ) | $ | — | $ | (0.08 | ) | |||||||||||
Year ended 3-31-2014 | 11.20 | 0.14 | (0.23 | ) | (0.09 | ) | (0.15 | ) | (0.06 | ) | (0.21 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.17 | 0.08 | 0.25 | (0.18 | ) | (0.03 | ) | (0.21 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.20 | 0.20 | 0.40 | (0.23 | ) | (0.05 | ) | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.25 | 0.02 | 0.27 | (0.27 | ) | (0.02 | ) | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.31 | 0.33 | 0.64 | (0.32 | ) | (0.03 | ) | (0.35 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.03 | (0.03 | ) | 0.00 | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.05 | (0.23 | ) | (0.18 | ) | (0.06 | ) | (0.06 | ) | (0.12 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.07 | 0.09 | 0.16 | (0.09 | ) | (0.03 | ) | (0.12 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.11 | 0.20 | 0.31 | (0.14 | ) | (0.05 | ) | (0.19 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.16 | 0.02 | 0.18 | (0.18 | ) | (0.02 | ) | (0.20 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.22 | 0.33 | 0.55 | (0.23 | ) | (0.03 | ) | (0.26 | ) | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.03 | (0.03 | ) | 0.00 | (0.03 | ) | — | (0.03 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.06 | (0.23 | ) | (0.17 | ) | (0.07 | ) | (0.06 | ) | (0.13 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.08 | 0.09 | 0.17 | (0.10 | ) | (0.03 | ) | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.12 | 0.20 | 0.32 | (0.15 | ) | (0.05 | ) | (0.20 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.17 | 0.02 | 0.19 | (0.19 | ) | (0.02 | ) | (0.21 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.24 | 0.33 | 0.57 | (0.25 | ) | (0.03 | ) | (0.28 | ) | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.07 | (0.03 | ) | 0.04 | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.13 | (0.23 | ) | (0.10 | ) | (0.14 | ) | (0.06 | ) | (0.20 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.15 | 0.09 | 0.24 | (0.17 | ) | (0.03 | ) | (0.20 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.19 | 0.20 | 0.39 | (0.22 | ) | (0.05 | ) | (0.27 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.24 | 0.02 | 0.26 | (0.26 | ) | (0.02 | ) | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.31 | 0.34 | 0.65 | (0.33 | ) | (0.03 | ) | (0.36 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.08 | (0.02 | ) | 0.06 | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.17 | (0.23 | ) | (0.06 | ) | (0.18 | ) | (0.06 | ) | (0.24 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.19 | 0.09 | 0.28 | (0.21 | ) | (0.03 | ) | (0.24 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.23 | 0.20 | 0.43 | (0.26 | ) | (0.05 | ) | (0.31 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.28 | 0.02 | 0.30 | (0.30 | ) | (0.02 | ) | (0.32 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.35 | 0.33 | 0.68 | (0.36 | ) | (0.03 | ) | (0.39 | ) | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.05 | (0.02 | ) | 0.03 | (0.06 | ) | — | (0.06 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.11 | (0.23 | ) | (0.12 | ) | (0.12 | ) | (0.06 | ) | (0.18 | ) | ||||||||||||||||
Year ended 3-31-2013(6) | 11.19 | 0.02 | 0.02 | 0.04 | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 10.91 | 0.03 | (0.04 | ) | (0.01 | ) | (0.03 | ) | — | (0.03 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.90 | 0.07 | (0.02 | ) | 0.05 | (0.08 | ) | — | (0.08 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 11.20 | 0.14 | (0.23 | ) | (0.09 | ) | (0.15 | ) | (0.06 | ) | (0.21 | ) | ||||||||||||||||
Year ended 3-31-2013 | 11.16 | 0.17 | 0.08 | 0.25 | (0.18 | ) | (0.03 | ) | (0.21 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 11.04 | 0.21 | 0.19 | 0.40 | (0.23 | ) | (0.05 | ) | (0.28 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 11.06 | 0.25 | 0.02 | 0.27 | (0.27 | ) | (0.02 | ) | (0.29 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 10.77 | 0.32 | 0.33 | 0.65 | (0.33 | ) | (0.03 | ) | (0.36 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
160 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 10.87 | 0.40 | % | $ | 1,502 | 0.88 | %(4) | 1.31 | %(4) | — | % | — | % | 16 | % | ||||||||||||||||
Year ended 3-31-2014 | 10.90 | -0.74 | 1,446 | 0.89 | 1.31 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | -0.02 | 15 | 1.72 | (4) | 0.48 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -1.59 | 19 | 1.76 | 0.44 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | 0.02 | 124 | 1.65 | (4) | 0.54 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -1.47 | 131 | 1.63 | 0.56 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | 0.34 | 4 | 1.00 | (4) | 1.19 | (4) | 1.04 | (4) | 1.15 | (4) | 16 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -0.85 | 3 | 1.00 | 1.20 | 1.02 | 1.18 | 39 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | 0.53 | 52 | 0.64 | (4) | 1.55 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -0.50 | 49 | 0.64 | 1.54 | — | — | 39 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | 0.23 | 1 | 1.23 | (4) | 0.95 | (4) | — | — | 16 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -1.08 | — | * | 1.24 | 0.96 | — | — | 39 | |||||||||||||||||||||||
Year ended 3-31-2013(6) | 11.20 | 0.41 | — | * | 1.21 | (4) | 0.59 | (4) | — | — | 55 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 10.87 | -0.09 | 4 | 0.48 | (4) | 1.54 | (4) | — | — | 16 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.87 | 0.40 | 24 | 0.89 | (4) | 1.31 | (4) | 0.90 | (4) | 1.30 | (4) | 16 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.90 | -0.74 | 26 | 0.89 | 1.30 | 0.90 | 1.29 | 39 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 161 |
Table of Contents
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)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | From Net Investment Income | Distributions From Net Realized Gains | Distributions From Return of Capital | Total Distributions | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 10.15 | $ | 0.00 | $ | 0.08 | $ | 0.08 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Year ended 3-31-2014 | 8.98 | 0.11 | 1.17 | 1.28 | (0.11 | ) | — | — | (0.11 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.70 | 0.11 | 0.29 | 0.40 | (0.12 | ) | — | — | (0.12 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.56 | 0.14 | (0.86 | ) | (0.72 | ) | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.44 | 0.03 | 1.14 | 1.17 | (0.03 | ) | — | (0.02 | ) | (0.05 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.62 | 0.01 | 2.85 | 2.86 | (0.02 | ) | — | (0.02 | ) | (0.04 | ) | |||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 9.99 | (0.05 | ) | 0.09 | 0.04 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 8.85 | 0.03 | 1.17 | 1.20 | (0.06 | ) | — | — | (0.06 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.59 | 0.04 | 0.29 | 0.33 | (0.07 | ) | — | — | (0.07 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.48 | 0.06 | (0.87 | ) | (0.81 | ) | (0.08 | ) | — | — | (0.08 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.38 | (0.04 | ) | 1.14 | 1.10 | — | * | — | — | * | — | * | ||||||||||||||||||||
Year ended 3-31-2010 | 5.59 | (0.04 | ) | 2.83 | 2.79 | — | — | — | — | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.02 | (0.04 | ) | 0.08 | 0.04 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 8.87 | 0.04 | 1.17 | 1.21 | (0.06 | ) | — | — | (0.06 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.61 | 0.04 | 0.29 | 0.33 | (0.07 | ) | — | — | (0.07 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.49 | 0.07 | (0.86 | ) | (0.79 | ) | (0.09 | ) | — | — | (0.09 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.40 | (0.03 | ) | 1.13 | 1.10 | (0.01 | ) | — | — | * | (0.01 | ) | ||||||||||||||||||||
Year ended 3-31-2010 | 5.59 | (0.03 | ) | 2.84 | 2.81 | — | — | — | — | |||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.16 | 0.00 | 0.08 | 0.08 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 8.99 | 0.12 | 1.17 | 1.29 | (0.12 | ) | — | — | (0.12 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.70 | 0.12 | 0.30 | 0.42 | (0.13 | ) | — | — | (0.13 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.57 | 0.15 | (0.88 | ) | (0.73 | ) | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.45 | 0.05 | 1.13 | 1.18 | (0.04 | ) | — | (0.02 | ) | (0.06 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.62 | 0.01 | 2.86 | 2.87 | (0.02 | ) | — | (0.02 | ) | (0.04 | ) | |||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.17 | 0.01 | 0.08 | 0.09 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 9.01 | 0.14 | 1.15 | 1.29 | (0.13 | ) | — | — | (0.13 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.73 | 0.13 | 0.30 | 0.43 | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.58 | 0.16 | (0.85 | ) | (0.69 | ) | (0.16 | ) | — | — | (0.16 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.46 | 0.05 | 1.14 | 1.19 | (0.04 | ) | — | (0.03 | ) | (0.07 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.63 | 0.02 | 2.87 | 2.89 | (0.03 | ) | — | (0.03 | ) | (0.06 | ) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.13 | (0.01 | ) | 0.09 | 0.08 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 8.97 | 0.10 | 1.16 | 1.26 | (0.10 | ) | — | — | (0.10 | ) | ||||||||||||||||||||||
Year ended 3-31-2013(7) | 8.88 | (0.01 | ) | 0.10 | 0.09 | — | — | — | — | |||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.14 | 0.00 | 0.09 | 0.09 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 8.97 | 0.13 | 1.16 | 1.29 | (0.12 | ) | — | — | (0.12 | ) | ||||||||||||||||||||||
Year ended 3-31-2013 | 8.69 | 0.12 | 0.29 | 0.41 | (0.13 | ) | — | — | (0.13 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 9.55 | 0.16 | (0.88 | ) | (0.72 | ) | (0.14 | ) | — | — | (0.14 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 8.43 | 0.03 | 1.14 | 1.17 | (0.03 | ) | — | (0.02 | ) | (0.05 | ) | |||||||||||||||||||||
Year ended 3-31-2010 | 5.61 | 0.01 | 2.85 | 2.86 | (0.02 | ) | — | (0.02 | ) | (0.04 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class share is closed to investment. |
(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. |
(9) | Does not include expenses of the Underlying Ivy Funds in which the Fund invests. |
162 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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(9) | Investment Income (Loss) to Average Net Including Expense Waiver(9) | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(3)(9) | Ratio of Net Investment (Loss) to Average Net Assets Excluding Expense Waiver(3)(9) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 10.23 | 0.79 | % | $ | 233 | 0.48 | %(4) | -0.05 | %(4) | 0.49 | %(4) | -0.06 | %(4) | 1 | % | ||||||||||||||||
Year ended 3-31-2014 | 10.15 | 14.33 | 254 | 0.49 | 1.16 | — | — | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.03 | 0.40 | 3 | 1.33 | (4) | -0.89 | (4) | 1.47 | (4) | -1.03 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2014 | 9.99 | 13.53 | 3 | 1.39 | 0.28 | — | — | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.06 | 0.40 | 6 | 1.28 | (4) | -0.84 | (4) | 1.32 | (4) | -0.88 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.02 | 13.57 | 6 | 1.26 | 0.43 | — | — | 21 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.24 | 0.79 | — | * | 0.39 | (4) | 0.04 | (4) | — | — | 1 | |||||||||||||||||||||
Year ended 3-31-2014 | 10.16 | 14.38 | — | * | 0.40 | 1.24 | — | — | 21 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.26 | 0.88 | 1 | 0.16 | (4) | 0.28 | (4) | 0.22 | (4) | 0.22 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.17 | 14.41 | 1 | 0.16 | 1.47 | — | — | 21 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.21 | 0.79 | 1 | 0.63 | (4) | -0.19 | (4) | — | — | 1 | ||||||||||||||||||||||
Year ended 3-31-2014 | 10.13 | 14.12 | 1 | 0.63 | 1.01 | — | — | 21 | ||||||||||||||||||||||||
Year ended 3-31-2013(7) | 8.97 | 1.01 | — | * | 0.72 | (4) | -0.55 | (4) | — | — | 21 | (8) | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 10.23 | 0.89 | 2 | 0.38 | (4) | 0.04 | (4) | 0.56 | (4) | -0.14 | (4) | 1 | ||||||||||||||||||||
Year ended 3-31-2014 | 10.14 | 14.42 | 2 | 0.40 | 1.33 | — | — | 21 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 163 |
Table of Contents
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(1) | and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions From Net Investment Income | Distributions From Net Realized | Total Distributions | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 27.31 | $ | (0.17 | ) | $ | (3.74 | ) | $ | (3.91 | ) | $ | — | $ | — | $ | — | |||||||||||
Year ended 3-31-2014 | 20.45 | (0.36 | ) | 8.65 | 8.29 | — | (1.43 | ) | (1.43 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.27 | (0.25 | ) | 1.43 | 1.18 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.63 | (0.29 | ) | 1.27 | 0.98 | — | (1.34 | ) | (1.34 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 15.78 | (0.30 | ) | 4.80 | 4.50 | (0.05 | ) | (0.60 | ) | (0.65 | ) | |||||||||||||||||
Year ended 3-31-2010 | 9.77 | (0.29 | ) | 6.69 | 6.40 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 26.23 | (0.27 | ) | (3.59 | ) | (3.86 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 19.86 | (0.57 | ) | 8.36 | 7.79 | — | (1.42 | ) | (1.42 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 18.93 | (0.44 | ) | 1.37 | 0.93 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.27 | (0.49 | ) | 1.26 | 0.77 | — | (1.11 | ) | (1.11 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 15.63 | (0.52 | ) | 4.71 | 4.19 | — | (0.55 | ) | (0.55 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 9.76 | (0.51 | ) | 6.66 | 6.15 | — | (0.28 | ) | (0.28 | ) | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 26.56 | (0.26 | ) | (3.62 | ) | (3.88 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 20.05 | (0.52 | ) | 8.45 | 7.93 | — | (1.42 | ) | (1.42 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.04 | (0.38 | ) | 1.39 | 1.01 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.42 | (0.43 | ) | 1.25 | 0.82 | — | (1.20 | ) | (1.20 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 15.69 | (0.43 | ) | 4.75 | 4.32 | — | (0.59 | ) | (0.59 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 9.76 | (0.44 | ) | 6.68 | 6.24 | — | (0.31 | ) | (0.31 | ) | ||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 27.65 | (0.12 | ) | (3.79 | ) | (3.91 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 20.65 | (0.26 | ) | 8.75 | 8.49 | — | (1.49 | ) | (1.49 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.37 | (0.17 | ) | 1.45 | 1.28 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.73 | (0.21 | ) | 1.26 | 1.05 | — | (1.41 | ) | (1.41 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 15.79 | (0.22 | ) | 4.82 | 4.60 | (0.06 | ) | (0.60 | ) | (0.66 | ) | |||||||||||||||||
Year ended 3-31-2010 | 9.77 | (0.24 | ) | 6.68 | 6.44 | — | (0.42 | ) | (0.42 | ) | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 27.27 | (0.19 | ) | (3.73 | ) | (3.92 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 20.45 | (0.40 | ) | 8.64 | 8.24 | — | (1.42 | ) | (1.42 | ) | ||||||||||||||||||
Year ended 3-31-2013(6) | 17.77 | (0.10 | ) | 2.78 | 2.68 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 23.73 | (0.02 | ) | 0.04 | 0.02 | — | — | — | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 28.02 | (0.16 | ) | (3.83 | ) | (3.99 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 20.51 | (0.33 | ) | 9.29 | 8.96 | — | (1.45 | ) | (1.45 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.29 | (0.22 | ) | 1.44 | 1.22 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2012 | 19.64 | (0.26 | ) | 1.28 | 1.02 | — | (1.37 | ) | (1.37 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 15.70 | (0.26 | ) | 4.78 | 4.52 | — | (0.58 | ) | (0.58 | ) | ||||||||||||||||||
Year ended 3-31-2010 | 9.77 | (0.31 | ) | 6.63 | 6.32 | — | (0.39 | ) | (0.39 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
164 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, End of Period (in millions) | Ratio of Expenses to Assets Including Expense Waiver | 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 9-30-2014 (unaudited) | $ | 23.40 | -14.32 | % | $ | 187 | 1.64 | %(4) | -1.40 | %(4) | — | % | — | % | 25 | % | ||||||||||||||||
Year ended 3-31-2014 | 27.31 | 41.32 | 213 | 1.64 | -1.45 | — | — | 67 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 22.37 | -14.72 | 2 | 2.54 | (4) | -2.31 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2014 | 26.23 | 39.96 | 3 | 2.59 | -2.40 | — | — | 67 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 22.68 | -14.61 | 11 | 2.38 | (4) | -2.14 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2014 | 26.56 | 40.28 | 14 | 2.35 | -2.15 | — | — | 67 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.74 | -14.14 | 20 | 1.23 | (4) | -1.00 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2014 | 27.65 | 41.90 | 34 | 1.23 | -1.01 | — | — | 67 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.35 | -14.38 | 1 | 1.83 | (4) | -1.57 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2014 | 27.27 | 41.09 | — | * | 1.84 | -1.66 | — | — | 67 | |||||||||||||||||||||||
Year ended 3-31-2013(6) | 20.45 | 15.08 | — | * | 1.89 | (4) | -1.84 | (4) | — | — | 51 | (7) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 23.75 | 0.08 | 3 | 1.05 | (4) | -0.66 | (4) | — | — | 25 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.03 | -14.24 | 2 | 1.49 | (4) | -1.25 | (4) | — | — | 25 | ||||||||||||||||||||||
Year ended 3-31-2014 | 28.02 | 44.49 | 3 | 1.50 | -1.30 | — | — | 67 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 165 |
Table of Contents
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)(1) | 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 9-30-2014 (unaudited) | $ | 23.45 | $ | (0.05 | ) | $ | 0.12 | $ | 0.07 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 20.22 | (0.14 | ) | 4.17 | 4.03 | — | (0.80 | ) | (0.80 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 18.62 | (0.09 | ) | 1.80 | 1.71 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 18.36 | (0.12 | ) | 0.85 | 0.73 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.95 | (0.05 | ) | 4.46 | 4.41 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.57 | (0.06 | ) | 5.44 | 5.38 | — | — | — | ||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 20.30 | (0.12 | ) | 0.11 | (0.01 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 17.66 | (0.27 | ) | 3.61 | 3.34 | — | (0.70 | ) | (0.70 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 16.42 | (0.23 | ) | 1.58 | 1.35 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 16.40 | (0.25 | ) | 0.74 | 0.49 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 12.58 | (0.18 | ) | 4.00 | 3.82 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.81 | (0.16 | ) | 4.93 | 4.77 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 21.24 | (0.12 | ) | 0.11 | (0.01 | ) | — | — | — | |||||||||||||||||||
Year ended 3-31-2014 | 18.44 | (0.26 | ) | 3.77 | 3.51 | — | (0.71 | ) | (0.71 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 17.11 | (0.21 | ) | 1.65 | 1.44 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.04 | (0.23 | ) | 0.77 | 0.54 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.04 | (0.15 | ) | 4.15 | 4.00 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.06 | (0.14 | ) | 5.12 | 4.98 | — | — | — | ||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.02 | (0.08 | ) | 0.12 | 0.04 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 19.90 | (0.20 | ) | 4.09 | 3.89 | — | (0.77 | ) | (0.77 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 18.37 | (0.14 | ) | 1.78 | 1.64 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 18.17 | (0.15 | ) | 0.82 | 0.67 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.81 | (0.07 | ) | 4.43 | 4.36 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.48 | (0.05 | ) | 5.38 | 5.33 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.60 | (0.01 | ) | 0.12 | 0.11 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 21.17 | (0.07 | ) | 4.36 | 4.29 | — | (0.86 | ) | (0.86 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.43 | (0.04 | ) | 1.89 | 1.85 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 19.07 | (0.07 | ) | 0.90 | 0.83 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 14.42 | 0.01 | 4.64 | 4.65 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 8.81 | 0.00 | 5.61 | 5.61 | — | — | — | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.18 | (0.08 | ) | 0.11 | 0.03 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 20.02 | (0.19 | ) | 4.12 | 3.93 | — | (0.77 | ) | (0.77 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 18.49 | (0.15 | ) | 1.79 | 1.64 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 18.27 | (0.16 | ) | 0.85 | 0.69 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 13.90 | (0.08 | ) | 4.45 | 4.37 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.54 | (0.07 | ) | 5.43 | 5.36 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 24.38 | 0.01 | 0.33 | 0.34 | — | — | — | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.18 | (0.04 | ) | 0.12 | 0.08 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 20.83 | (0.12 | ) | 4.30 | 4.18 | — | (0.83 | ) | (0.83 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 19.17 | (0.09 | ) | 1.86 | 1.77 | — | (0.11 | ) | (0.11 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 18.86 | (0.10 | ) | 0.88 | 0.78 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
Year ended 3-31-2011 | 14.29 | (0.02 | ) | 4.59 | 4.57 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.74 | (0.01 | ) | 5.56 | 5.55 | — | — | — |
(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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
166 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | 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 | $23.52 | 0.30 | % | $ 962 | 1.26 | %(4) | -0.43 | %(4) | 1.27 | %(4) | -0.44 | %(4) | 17 | % | ||||||||||||||||||
Year ended | 23.45 | 20.09 | 1,558 | 1.34 | -0.63 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 20.22 | 9.28 | 1,160 | 1.31 | -0.52 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 18.62 | 4.29 | 636 | 1.40 | -0.69 | — | — | 29 | ||||||||||||||||||||||||
Year ended | 18.36 | 31.61 | 369 | 1.49 | -0.34 | — | — | 39 | ||||||||||||||||||||||||
Year ended | 13.95 | 62.78 | 162 | 1.65 | -0.51 | 1.67 | -0.53 | 40 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended | 20.29 | -0.05 | 23 | 2.06 | (4) | -1.20 | (4) | — | — | 17 | ||||||||||||||||||||||
Year ended | 20.30 | 19.14 | 26 | 2.10 | -1.39 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 17.66 | 8.27 | 21 | 2.21 | -1.42 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 16.42 | 3.33 | 17 | 2.35 | -1.63 | — | — | 29 | ||||||||||||||||||||||||
Year ended | 16.40 | 30.37 | 12 | 2.47 | -1.32 | — | — | 39 | ||||||||||||||||||||||||
Year ended | 12.58 | 61.08 | 7 | 2.68 | -1.53 | — | — | 40 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 21.23 | -0.05 | 304 | 2.02 | (4) | -1.15 | (4) | — | — | 17 | ||||||||||||||||||||||
Year ended | 21.24 | 19.25 | 295 | 2.01 | -1.31 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 18.44 | 8.46 | 183 | 2.07 | -1.28 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 17.11 | 3.50 | 135 | 2.14 | -1.44 | — | — | 29 | ||||||||||||||||||||||||
Year ended | 17.04 | 30.68 | 69 | 2.16 | -1.02 | — | — | 39 | ||||||||||||||||||||||||
Year ended | 13.04 | 61.79 | 17 | 2.35 | -1.21 | 2.38 | -1.24 | 40 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 23.06 | 0.17 | 6 | 1.60 | (4) | -0.73 | (4) | 1.66 | (4) | -0.79 | (4) | 17 | ||||||||||||||||||||
Year ended | 23.02 | 19.75 | 6 | 1.60 | -0.90 | 1.71 | -1.01 | 43 | ||||||||||||||||||||||||
Year ended | 19.90 | 8.97 | 4 | 1.60 | -0.81 | 1.90 | -1.11 | 32 | ||||||||||||||||||||||||
Year ended | 18.37 | 4.00 | 3 | 1.60 | -0.88 | 1.97 | -1.25 | 29 | ||||||||||||||||||||||||
Year ended | 18.17 | 31.57 | 3 | 1.60 | -0.44 | 2.09 | -0.93 | 39 | ||||||||||||||||||||||||
Year ended | 13.81 | 62.85 | 1 | 1.60 | -0.46 | 2.60 | -1.46 | 40 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 24.71 | 0.45 | 2,749 | 1.00 | (4) | -0.09 | (4) | — | — | 17 | ||||||||||||||||||||||
Year ended | 24.60 | 20.52 | 2,098 | 0.99 | -0.28 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 21.17 | 9.57 | 1,316 | 1.02 | -0.24 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 19.43 | 4.65 | 788 | 1.05 | -0.38 | — | — | 29 | ||||||||||||||||||||||||
Year ended | 19.07 | 32.25 | 116 | 1.08 | 0.04 | — | — | 39 | ||||||||||||||||||||||||
Year ended | 14.42 | 63.68 | 6 | 1.14 | -0.03 | — | — | 40 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 23.21 | 0.13 | 93 | 1.59 | (4) | -0.72 | (4) | — | — | 17 | ||||||||||||||||||||||
Year ended | 23.18 | 19.83 | 103 | 1.59 | -0.89 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 20.02 | 8.92 | 77 | 1.62 | -0.82 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 18.49 | 4.09 | 50 | 1.63 | -0.93 | — | — | 29 | ||||||||||||||||||||||||
Year ended | 18.27 | 31.44 | 21 | 1.63 | -0.48 | — | — | 39 | ||||||||||||||||||||||||
Year ended | 13.90 | 62.76 | 4 | 1.67 | -0.57 | — | — | 40 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 24.72 | 1.39 | 4 | 0.82 | (4) | 0.20 | (4) | — | — | 17 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 24.26 | 0.33 | 697 | 1.23 | (4) | -0.36 | (4) | — | — | 17 | ||||||||||||||||||||||
Year ended | 24.18 | 20.21 | 694 | 1.23 | -0.53 | — | — | 43 | ||||||||||||||||||||||||
Year ended | 20.83 | 9.33 | 521 | 1.27 | -0.48 | — | — | 32 | ||||||||||||||||||||||||
Year ended | 19.17 | 4.44 | 439 | 1.25 | -0.55 | 1.30 | -0.60 | 29 | ||||||||||||||||||||||||
Year ended | 18.86 | 31.98 | 207 | 1.25 | -0.10 | 1.34 | -0.19 | 39 | ||||||||||||||||||||||||
Year ended | 14.29 | 63.50 | 54 | 1.25 | -0.11 | 1.38 | -0.24 | 40 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 167 |
Table of Contents
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) | 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 9-30-2014 (unaudited) | $ | 1.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | — | * | $ | — | $ | — | * | ||||||||||||
Year ended 3-31-2014 | 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 | ) | ||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 1.00 | 0.00 | 0.00 | 0.00 | — | * | — | — | * | |||||||||||||||||||
Year ended 3-31-2014 | 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 | — | * | — | * | — | * | ||||||||||||||||||
Class C Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 1.00 | 0.00 | 0.00 | 0.00 | — | * | — | — | * | |||||||||||||||||||
Year ended 3-31-2014 | 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 | — | * | — | * | — | * | ||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 1.00 | 0.00 | 0.00 | 0.00 | — | * | — | — | * | |||||||||||||||||||
Year ended 3-31-2014 | 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 | — | * | — | * | — | * |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
168 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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) | Investment Income (Loss) to Average Net Assets Excluding Expense Waiver(3) | ||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||
Six-month period ended | $ | 1.00 | 0.01 | % | $ | 122 | 0.17 | %(4) | 0.02 | %(4) | 0.69 | %(4) | -0.50 | %(4) | ||||||||||||||
Year ended 3-31-2014 | 1.00 | 0.02 | 137 | 0.20 | 0.02 | 0.69 | -0.47 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended | 1.00 | 0.01 | 5 | 0.17 | (4) | 0.02 | (4) | 1.78 | (4) | -1.59 | (4) | |||||||||||||||||
Year ended 3-31-2014 | 1.00 | 0.02 | 7 | 0.20 | 0.02 | 1.74 | -1.52 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class C Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended | 1.00 | 0.01 | 37 | 0.17 | (4) | 0.02 | (4) | 1.64 | (4) | -1.45 | (4) | |||||||||||||||||
Year ended 3-31-2014 | 1.00 | 0.02 | 34 | 0.20 | 0.02 | 1.63 | -1.41 | |||||||||||||||||||||
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 | |||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended | 1.00 | 0.01 | 5 | 0.17 | (4) | 0.02 | (4) | 0.73 | (4) | -0.54 | (4) | |||||||||||||||||
Year ended 3-31-2014 | 1.00 | 0.02 | 6 | 0.20 | 0.02 | 0.73 | -0.51 | |||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 169 |
Table of Contents
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 | $ | 11.74 | $ | 0.17 | $ | 0.25 | $ | 0.42 | $ | (0.17 | ) | $ | — | $ | (0.17 | ) | ||||||||||||
Year ended 3-31-2014 | 12.19 | 0.34 | (0.45 | ) | (0.11 | ) | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended | 11.74 | 0.12 | 0.25 | 0.37 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 12.19 | 0.25 | (0.45 | ) | (0.20 | ) | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended | 11.74 | 0.12 | 0.25 | 0.37 | (0.12 | ) | — | (0.12 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 12.19 | 0.25 | (0.45 | ) | (0.20 | ) | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||
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 | ) | |||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended | 11.74 | 0.18 | 0.25 | 0.43 | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 12.19 | 0.36 | (0.45 | ) | (0.09 | ) | (0.36 | ) | — | (0.36 | ) | |||||||||||||||||
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(6) | 11.10 | 0.19 | 0.06 | 0.25 | (0.19 | ) | — | (0.19 | ) | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended | 11.74 | 0.17 | 0.25 | 0.42 | (0.17 | ) | — | (0.17 | ) | |||||||||||||||||||
Year ended 3-31-2014 | 12.19 | 0.34 | (0.45 | ) | (0.11 | ) | (0.34 | ) | — | (0.34 | ) | |||||||||||||||||
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(8) | 11.30 | 0.22 | (0.14 | ) | 0.08 | (0.22 | ) | — | (0.22 | ) |
* | 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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from November 4, 2009 (commencement of operations of the class) through March 31, 2010. |
(7) | For the fiscal year ended March 31, 2010. |
(8) | For the period from October 8, 2009 (recommencement of operations) through March 31, 2010. |
170 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Net Asset Value, End of Period | Total Return(2) | Net Assets, (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 9-30-2014 (unaudited) | $ | 11.99 | 3.57 | % | $ | 131 | 1.02 | %(4) | 2.81 | %(4) | — | % | — | % | 3 | % | ||||||||||||||||
Year ended 3-31-2014 | 11.74 | -0.86 | 113 | 1.02 | 2.90 | — | — | 7 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 11.99 | 3.17 | 2 | 1.78 | (4) | 2.06 | (4) | — | — | 3 | ||||||||||||||||||||||
Year ended 3-31-2014 | 11.74 | -1.63 | 2 | 1.79 | 2.12 | — | — | 7 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 11.99 | 3.17 | 21 | �� | 1.78 | (4) | 2.06 | (4) | — | — | 3 | |||||||||||||||||||||
Year ended 3-31-2014 | 11.74 | -1.62 | 21 | 1.78 | 2.12 | — | — | 7 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 11.99 | 3.67 | 3 | 0.82 | (4) | 2.99 | (4) | — | — | 3 | ||||||||||||||||||||||
Year ended 3-31-2014 | 11.74 | -0.65 | 2 | 0.81 | 3.11 | — | — | 7 | ||||||||||||||||||||||||
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 | 11.16 | 2.27 | — | * | 0.91 | (4) | 4.32 | (4) | — | — | 18 | (7) | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 11.99 | 3.56 | 1 | 1.02 | (4) | 2.81 | (4) | 1.06 | (4) | 2.77 | (4) | 3 | ||||||||||||||||||||
Year ended 3-31-2014 | 11.74 | -0.87 | 1 | 1.02 | 2.89 | 1.06 | 2.85 | 7 | ||||||||||||||||||||||||
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 | 11.16 | 0.68 | — | * | 1.15 | (4) | 4.10 | (4) | 1.17 | (4) | 4.08 | (4) | 18 | (7) |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 171 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 5.03 | $ | 0.12 | (3) | $ | 0.22 | $ | 0.34 | $ | (0.12 | ) | $ | — | $ | (0.12 | ) | |||||||||||
Year ended 3-31-2014 | 5.47 | 0.24 | (3) | (0.42 | ) | (0.18 | ) | (0.24 | ) | (0.02 | ) | (0.26 | ) | |||||||||||||||
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(6) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 5.03 | 0.10 | (3) | 0.22 | 0.32 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 5.47 | 0.20 | (3) | (0.42 | ) | (0.22 | ) | (0.20 | ) | (0.02 | ) | (0.22 | ) | |||||||||||||||
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 9-30-2014 (unaudited) | 5.03 | 0.10 | (3) | 0.22 | 0.32 | (0.10 | ) | — | (0.10 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 5.47 | 0.20 | (3) | (0.42 | ) | (0.22 | ) | (0.20 | ) | (0.02 | ) | (0.22 | ) | |||||||||||||||
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 9-30-2014 (unaudited) | 5.03 | 0.13 | (3) | 0.22 | 0.35 | (0.13 | ) | — | (0.13 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 5.47 | 0.24 | (3) | (0.42 | ) | (0.18 | ) | (0.24 | ) | (0.02 | ) | (0.26 | ) | |||||||||||||||
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 | ) | ||||||||||||||||
Year ended 3-31-2010(7) | 4.21 | 0.23 | (3) | 0.63 | 0.86 | (0.22 | ) | (0.01 | ) | (0.23 | ) | |||||||||||||||||
Period ended 5-17-2009(8) | 4.48 | 0.16 | (3) | (0.27 | ) | (0.11 | ) | (0.16 | ) | — | (0.16 | ) | ||||||||||||||||
Year ended 9-30-2008(8) | 5.00 | 0.24 | (0.51 | ) | (0.27 | ) | (0.25 | ) | — | (0.25 | ) | |||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 5.03 | 0.12 | (3) | 0.22 | 0.34 | (0.12 | ) | — | (0.12 | ) | ||||||||||||||||||
Year ended 3-31-2014 | 5.47 | 0.24 | (3) | (0.42 | ) | (0.18 | ) | (0.24 | ) | (0.02 | ) | (0.26 | ) | |||||||||||||||
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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(7) | 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. |
(8) | 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. |
(9) | 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. |
172 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | $ | 5.25 | 6.86 | % | $ | 358 | 0.86 | %(4) | 4.79 | %(4) | 0.87 | %(4) | 4.78 | %(4) | 4 | % | ||||||||||||||||
Year ended | 5.03 | -3.32 | 366 | 0.86 | 4.58 | 0.87 | 4.57 | 21 | ||||||||||||||||||||||||
Year ended | 5.47 | 8.71 | 545 | 0.84 | 3.91 | 0.85 | 3.90 | 9 | ||||||||||||||||||||||||
Year ended | 5.23 | 15.62 | 384 | 0.87 | 4.88 | 0.90 | 4.85 | 4 | ||||||||||||||||||||||||
Year ended | 4.75 | 2.71 | 146 | 0.94 | 4.63 | 0.98 | 4.59 | 13 | ||||||||||||||||||||||||
Year ended | 4.84 | 20.45 | 25 | 0.95 | (4) | 5.41 | (4) | 1.68 | (4) | 4.68 | (4) | 14 | (4) | |||||||||||||||||||
Class B Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended | 5.25 | 6.44 | 15 | 1.63 | (4) | 4.01 | (4) | 1.64 | (4) | 4.00 | (4) | 4 | ||||||||||||||||||||
Year ended | 5.03 | -4.07 | 15 | 1.64 | 3.82 | 1.65 | 3.81 | 21 | ||||||||||||||||||||||||
Year ended | 5.47 | 7.86 | 19 | 1.62 | 3.12 | 1.63 | 3.11 | 9 | ||||||||||||||||||||||||
Year ended | 5.23 | 14.70 | 12 | 1.67 | 4.07 | 1.70 | 4.04 | 4 | ||||||||||||||||||||||||
Year ended | 4.75 | 1.87 | 4 | 1.72 | 3.82 | 1.76 | 3.78 | 13 | ||||||||||||||||||||||||
Year ended | 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 | 5.25 | 6.47 | 226 | 1.59 | (4) | 4.05 | (4) | 1.60 | (4) | 4.04 | (4) | 4 | ||||||||||||||||||||
Year ended | 5.03 | -4.04 | 216 | 1.60 | 3.84 | 1.61 | 3.83 | 21 | ||||||||||||||||||||||||
Year ended | 5.47 | 7.92 | 323 | 1.57 | 3.17 | 1.59 | 3.15 | 9 | ||||||||||||||||||||||||
Year ended | 5.23 | 14.77 | 198 | 1.62 | 4.12 | 1.65 | 4.09 | 4 | ||||||||||||||||||||||||
Year ended | 4.75 | 1.91 | 65 | 1.67 | 3.89 | 1.71 | 3.85 | 13 | ||||||||||||||||||||||||
Year ended | 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 | 5.25 | 6.95 | 640 | 0.68 | (4) | 4.95 | (4) | 0.69 | (4) | 4.94 | (4) | 4 | ||||||||||||||||||||
Year ended | 5.03 | -3.16 | 586 | 0.69 | 4.76 | 0.70 | 4.75 | 21 | ||||||||||||||||||||||||
Year ended | 5.47 | 8.88 | 749 | 0.68 | 4.06 | 0.69 | 4.05 | 9 | ||||||||||||||||||||||||
Year ended | 5.23 | 15.82 | 416 | 0.70 | 5.04 | 0.74 | 5.00 | 4 | ||||||||||||||||||||||||
Year ended | 4.75 | 2.98 | 131 | 0.70 | 4.90 | 0.79 | 4.81 | 13 | ||||||||||||||||||||||||
Year ended | 4.84 | 20.68 | 8 | 0.70 | (4) | 5.77 | (4) | 1.53 | (4) | 4.94 | (4) | 14 | (4) | |||||||||||||||||||
Period ended | 4.21 | -4.72 | — | * | 0.87 | (4) | 6.35 | (4) | 0.91 | (4) | 6.31 | (4) | 28 | (4) | ||||||||||||||||||
Year ended | 4.48 | -5.67 | — | * | 0.70 | 5.03 | 0.74 | 4.99 | 26 | |||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended | 5.25 | 6.85 | 30 | 0.85 | (4) | 4.77 | (4) | 0.96 | (4) | 4.66 | (4) | 4 | ||||||||||||||||||||
Year ended | 5.03 | -3.32 | 15 | 0.85 | 4.52 | 0.95 | 4.42 | 21 | ||||||||||||||||||||||||
Year ended | 5.47 | 8.71 | 34 | 0.84 | 3.92 | 0.94 | 3.82 | 9 | ||||||||||||||||||||||||
Year ended | 5.23 | 15.65 | 26 | 0.87 | 4.83 | 0.99 | 4.71 | 4 | ||||||||||||||||||||||||
Year ended | 4.75 | 2.73 | 6 | 0.94 | 4.76 | 1.05 | 4.65 | 13 | ||||||||||||||||||||||||
Year ended | 4.84 | 19.02 | (9) | 1 | 1.10 | (4) | 5.10 | (4) | 1.76 | (4) | 4.44 | (4) | 14 | (4) |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 173 |
Table of Contents
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(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 9-30-2014 (unaudited) | $ | 18.51 | $ | (0.09 | ) | $ | (1.23 | ) | $ | (1.32 | ) | $ | — | $ | — | $ | — | |||||||||||
Year ended 3-31-2014 | 16.33 | (0.19 | ) | 4.04 | 3.85 | — | (1.67 | ) | (1.67 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 14.51 | (0.14 | ) | 2.35 | 2.21 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 15.39 | (0.17 | ) | (0.21 | ) | (0.38 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 11.40 | (0.13 | ) | 4.12 | 3.99 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.08 | (0.12 | ) | 4.44 | 4.32 | — | — | — | ||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.47 | (0.14 | ) | (1.03 | ) | (1.17 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 13.95 | (0.30 | ) | 3.42 | 3.12 | — | (1.60 | ) | (1.60 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 12.57 | (0.25 | ) | 2.02 | 1.77 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 13.56 | (0.28 | ) | (0.21 | ) | (0.49 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 10.15 | (0.23 | ) | 3.64 | 3.41 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 6.37 | (0.20 | ) | 3.98 | 3.78 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.35 | (0.13 | ) | (1.09 | ) | (1.22 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 14.63 | (0.28 | ) | 3.60 | 3.32 | — | (1.60 | ) | (1.60 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 13.12 | (0.21 | ) | 2.11 | 1.90 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 14.07 | (0.24 | ) | (0.21 | ) | (0.45 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 10.49 | (0.20 | ) | 3.78 | 3.58 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 6.56 | (0.16 | ) | 4.09 | 3.93 | — | — | — | ||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.43 | (0.10 | ) | (1.23 | ) | (1.33 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 16.27 | (0.22 | ) | 4.03 | 3.81 | — | (1.65 | ) | (1.65 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 14.47 | (0.15 | ) | 2.34 | 2.19 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 15.36 | (0.18 | ) | (0.21 | ) | (0.39 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 11.38 | (0.14 | ) | 4.12 | 3.98 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.06 | (0.11 | ) | 4.43 | 4.32 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 22.19 | (0.07 | ) | (1.48 | ) | (1.55 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 19.26 | (0.15 | ) | 4.80 | 4.65 | — | (1.72 | ) | (1.72 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 16.98 | (0.09 | ) | 2.76 | 2.67 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.83 | (0.13 | ) | (0.22 | ) | (0.35 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 13.14 | (0.09 | ) | 4.78 | 4.69 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 8.12 | (0.07 | ) | 5.09 | 5.02 | — | — | — | ||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.41 | (0.11 | ) | (1.23 | ) | (1.34 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 16.26 | (0.23 | ) | 4.02 | 3.79 | — | (1.64 | ) | (1.64 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 14.48 | (0.17 | ) | 2.34 | 2.17 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 15.38 | (0.19 | ) | (0.21 | ) | (0.40 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 11.40 | (0.15 | ) | 4.13 | 3.98 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.08 | (0.12 | ) | 4.44 | 4.32 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 20.97 | (0.01 | ) | (0.32 | ) | (0.33 | ) | — | — | — | ||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 21.42 | (0.09 | ) | (1.43 | ) | (1.52 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 18.66 | (0.20 | ) | 4.64 | 4.44 | — | (1.68 | ) | (1.68 | ) | ||||||||||||||||||
Year ended 3-31-2013 | 16.50 | (0.13 | ) | 2.68 | 2.55 | — | (0.39 | ) | (0.39 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.38 | (0.16 | ) | (0.22 | ) | (0.38 | ) | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||
Year ended 3-31-2011 | 12.85 | (0.12 | ) | 4.65 | 4.53 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 7.96 | (0.10 | ) | 4.99 | 4.89 | — | — | — |
(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 class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
174 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 17.19 | -7.13 | % | $ | 341 | 1.43 | %(4) | -0.99 | %(4) | — | % | — | % | 20 | % | ||||||||||||||||
Year ended 3-31-2014 | 18.51 | 24.27 | 406 | 1.43 | -1.07 | — | — | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 14.30 | -7.56 | 10 | 2.32 | (4) | -1.88 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2014 | 15.47 | 23.14 | 13 | 2.34 | -1.99 | — | — | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.13 | -7.46 | 190 | 2.07 | (4) | -1.63 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.35 | 23.43 | 225 | 2.08 | -1.73 | — | — | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.10 | -7.22 | 5 | 1.56 | (4) | -1.12 | (4) | 1.82 | (4) | -1.38 | (4) | 20 | ||||||||||||||||||||
Year ended 3-31-2014 | 18.43 | 24.13 | 5 | 1.56 | -1.21 | 1.87 | -1.52 | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 20.64 | -6.99 | 221 | 1.06 | (4) | -0.62 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2014 | 22.19 | 24.78 | 246 | 1.06 | -0.71 | — | — | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.07 | -7.28 | 40 | 1.66 | (4) | -1.22 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2014 | 18.41 | 23.99 | 42 | 1.66 | -1.30 | — | — | 45 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(6) | 20.64 | -1.57 | 6 | 0.89 | (4) | -0.41 | (4) | — | — | 20 | ||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.90 | -7.10 | 239 | 1.31 | (4) | -0.87 | (4) | — | — | 20 | ||||||||||||||||||||||
Year ended 3-31-2014 | 21.42 | 24.45 | 276 | 1.30 | -0.95 | — | — | 45 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 175 |
Table of Contents
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)(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 9-30-2014 (unaudited) | $ | 18.32 | $ | (0.05 | ) | $ | (0.46 | ) | $ | (0.51 | ) | $ | — | $ | — | $ | — | |||||||||||
Year ended 3-31-2014 | 17.23 | (0.11 | ) | 3.55 | 3.44 | (0.07 | ) | (2.28 | ) | (2.35 | ) | |||||||||||||||||
Year ended 3-31-2013 | 14.96 | 0.02 | 2.82 | 2.84 | — | (0.57 | ) | (0.57 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 18.12 | 0.00 | (1.69 | ) | (1.69 | ) | (0.01 | ) | (1.46 | ) | (1.47 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.99 | 0.03 | 3.10 | 3.13 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 9.87 | (0.07 | ) | 5.19 | 5.12 | — | — | — | ||||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.10 | (0.13 | ) | (0.40 | ) | (0.53 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 15.39 | (0.25 | ) | 3.14 | 2.89 | (0.02 | ) | (2.16 | ) | (2.18 | ) | |||||||||||||||||
Year ended 3-31-2013 | 13.48 | (0.13 | ) | 2.50 | 2.37 | — | (0.46 | ) | (0.46 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 16.66 | (0.15 | ) | (1.57 | ) | (1.72 | ) | — | (1.46 | ) | (1.46 | ) | ||||||||||||||||
Year ended 3-31-2011 | 13.95 | (0.15 | ) | 2.86 | 2.71 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 9.29 | (0.21 | ) | 4.87 | 4.66 | — | — | — | ||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.76 | (0.11 | ) | (0.41 | ) | (0.52 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 15.94 | (0.21 | ) | 3.26 | 3.05 | (0.04 | ) | (2.19 | ) | (2.23 | ) | |||||||||||||||||
Year ended 3-31-2013 | 13.92 | (0.08 | ) | 2.60 | 2.52 | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||||
Year ended 3-31-2012 | 17.09 | (0.10 | ) | (1.61 | ) | (1.71 | ) | — | (1.46 | ) | (1.46 | ) | ||||||||||||||||
Year ended 3-31-2011 | 14.25 | (0.08 | ) | 2.92 | 2.84 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010 | 9.45 | (0.16 | ) | 4.96 | 4.80 | — | — | — | ||||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.76 | (0.02 | ) | (0.47 | ) | (0.49 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 17.59 | (0.04 | ) | 3.63 | 3.59 | (0.09 | ) | (2.33 | ) | (2.42 | ) | |||||||||||||||||
Year ended 3-31-2013 | 15.25 | 0.10 | 2.85 | 2.95 | — | (0.61 | ) | (0.61 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 18.43 | 0.07 | (1.71 | ) | (1.64 | ) | (0.08 | ) | (1.46 | ) | (1.54 | ) | ||||||||||||||||
Year ended 3-31-2011 | 15.19 | 0.10 | 3.14 | 3.24 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 9.94 | (0.01 | ) | 5.26 | 5.25 | — | — | — | ||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 19.29 | (0.01 | ) | (0.49 | ) | (0.50 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 18.03 | (0.02 | ) | 3.72 | 3.70 | (0.10 | ) | (2.34 | ) | (2.44 | ) | |||||||||||||||||
Year ended 3-31-2013 | 15.61 | 0.11 | 2.94 | 3.05 | — | (0.63 | ) | (0.63 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 18.83 | 0.07 | (1.73 | ) | (1.66 | ) | (0.10 | ) | (1.46 | ) | (1.56 | ) | ||||||||||||||||
Year ended 3-31-2011 | 15.49 | 0.13 | 3.21 | 3.34 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 10.13 | 0.00 | 5.36 | 5.36 | — | — | — | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.31 | (0.07 | ) | (0.45 | ) | (0.52 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 17.23 | (0.13 | ) | 3.54 | 3.41 | (0.07 | ) | (2.26 | ) | (2.33 | ) | |||||||||||||||||
Year ended 3-31-2013(6) | 15.24 | (0.02 | ) | 2.01 | 1.99 | — | — | — | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 18.96 | 0.01 | (0.17 | ) | (0.16 | ) | — | — | — | |||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.94 | (0.04 | ) | (0.47 | ) | (0.51 | ) | — | — | — | ||||||||||||||||||
Year ended 3-31-2014 | 17.74 | (0.07 | ) | 3.66 | 3.59 | (0.08 | ) | (2.31 | ) | (2.39 | ) | |||||||||||||||||
Year ended 3-31-2013 | 15.38 | 0.01 | 2.95 | 2.96 | — | (0.60 | ) | (0.60 | ) | |||||||||||||||||||
Year ended 3-31-2012 | 18.58 | 0.04 | (1.72 | ) | (1.68 | ) | (0.06 | ) | (1.46 | ) | (1.52 | ) | ||||||||||||||||
Year ended 3-31-2011 | 15.33 | 0.08 | 3.17 | 3.25 | — | — | — | |||||||||||||||||||||
Year ended 3-31-2010 | 10.05 | (0.02 | ) | 5.30 | 5.28 | — | — | — |
* | 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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(5) | Class share 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. |
(8) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
176 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 9-30-2014 (unaudited) | $ | 17.81 | -2.78 | % | $ | 228 | 1.54 | %(3) | -0.58 | %(3) | 21 | % | ||||||||||||
Year ended 3-31-2014 | 18.32 | 21.10 | 244 | 1.57 | -0.62 | 61 | ||||||||||||||||||
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 | ||||||||||||||||||
Class B Shares(4) | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 15.57 | -3.29 | 3 | 2.51 | (3) | -1.56 | (3) | 21 | ||||||||||||||||
Year ended 3-31-2014 | 16.10 | 19.87 | 4 | 2.58 | -1.63 | 61 | ||||||||||||||||||
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 | ||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.24 | -3.10 | 18 | 2.21 | (3) | -1.26 | (3) | 21 | ||||||||||||||||
Year ended 3-31-2014 | 16.76 | 20.24 | 19 | 2.25 | -1.30 | 61 | ||||||||||||||||||
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 | ||||||||||||||||||
Class E Shares(5) | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.27 | -2.61 | — | * | 1.21 | (3) | -0.25 | (3) | 21 | |||||||||||||||
Year ended 3-31-2014 | 18.76 | 21.56 | — | * | 1.21 | -0.26 | 61 | |||||||||||||||||
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 | |||||||||||||||||
Class I Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.79 | -2.59 | 33 | 1.10 | (3) | -0.11 | (3) | 21 | ||||||||||||||||
Year ended 3-31-2014 | 19.29 | 21.67 | 26 | 1.10 | -0.15 | 61 | ||||||||||||||||||
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 | ||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.79 | -2.84 | 2 | 1.70 | (3) | -0.73 | (3) | 21 | ||||||||||||||||
Year ended 3-31-2014 | 18.31 | 20.91 | 1 | 1.70 | -0.78 | 61 | ||||||||||||||||||
Year ended 3-31-2013(6) | 17.23 | 13.06 | — | * | 1.68 | (3) | -0.44 | (3) | 52 | (7) | ||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(8) | 18.80 | -0.84 | 3 | 0.93 | (3) | 0.25 | (3) | 21 | ||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.43 | -2.69 | 8 | 1.35 | (3) | -0.40 | (3) | 21 | ||||||||||||||||
Year ended 3-31-2014 | 18.94 | 21.35 | 10 | 1.33 | -0.39 | 61 | ||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 177 |
Table of Contents
FINANCIAL HIGHLIGHTS
Ivy Funds | FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD |
IVY TAX-MANAGED EQUITY FUND
Net Asset Value, Beginning | Net Investment (Loss) | 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 9-30-2014 (unaudited) | $ | 16.84 | $ | (0.03 | )(3) | $ | 1.37 | $ | 1.34 | $ | — | $ | — | $ | — | |||||||||||||
Year ended 3-31-2014 | 14.13 | (0.05 | )(3) | 3.23 | 3.18 | — | (0.47 | ) | (0.47 | ) | ||||||||||||||||||
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(6) | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.45 | (0.08 | )(3) | 1.34 | 1.26 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.87 | (0.14 | )(3) | 3.15 | 3.01 | — | (0.43 | ) | (0.43 | ) | ||||||||||||||||||
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 9-30-2014 (unaudited) | 16.42 | (0.09 | )(3) | 1.34 | 1.25 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 13.85 | (0.15 | )(3) | 3.15 | 3.00 | — | (0.43 | ) | (0.43 | ) | ||||||||||||||||||
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 9-30-2014 (unaudited) | 16.93 | (0.01 | )(3) | 1.39 | 1.38 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 14.20 | 0.00 | (3) | 3.23 | 3.23 | — | (0.50 | ) | (0.50 | ) | ||||||||||||||||||
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 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2010(7) | 8.62 | (0.07 | )(3) | 2.26 | 2.19 | — | — | — | ||||||||||||||||||||
Period ended 5-17-2009(8) | 11.51 | (0.07 | )(3) | (2.82 | ) | (2.89 | ) | — | — | — | ||||||||||||||||||
Year ended 6-30-2008(8) | 11.00 | (0.12 | ) | 0.63 | 0.51 | — | — | — | ||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 16.86 | (0.03 | )(3) | 1.38 | 1.35 | — | — | — | ||||||||||||||||||||
Year ended 3-31-2014 | 14.15 | (0.04 | )(3) | 3.23 | 3.19 | — | (0.48 | ) | (0.48 | ) | ||||||||||||||||||
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) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(7) | 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. |
(8) | 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. |
(9) | 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. |
178 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Net Asset Value, End of Period | Total Return(1) | Net Assets, End of Period (in millions) | Ratio of Average Net Assets Expense Waiver | Investment Income (Loss) to Average Net Assets Including Expense Waiver | Ratio of Expenses to Average Net Assets Excluding Expense Waiver(2) | Ratio of Net Income (Loss) to Average Net Assets Excluding Expense Waiver(2) | Portfolio Turnover Rate | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 18.18 | 7.96 | % | $ | 49 | 1.33 | %(4) | -0.32 | %(4) | — | % | — | % | 12 | % | ||||||||||||||||
Year ended 3-31-2014 | 16.84 | 22.65 | 40 | 1.43 | -0.30 | — | — | 32 | ||||||||||||||||||||||||
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(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 17.71 | 7.66 | 1 | 1.98 | (4) | -0.95 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.45 | 21.80 | 1 | 2.06 | -0.92 | — | — | 32 | ||||||||||||||||||||||||
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 9-30-2014 (unaudited) | 17.67 | 7.61 | 2 | 2.04 | (4) | -1.02 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.42 | 21.76 | 2 | 2.09 | -0.96 | — | — | 32 | ||||||||||||||||||||||||
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 9-30-2014 (unaudited) | 18.31 | 8.15 | 2 | 1.08 | (4) | -0.06 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.93 | 22.91 | 1 | 1.15 | -0.02 | — | — | 32 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Year ended 3-31-2010(7) | 10.81 | 25.41 | 1 | 2.11 | (4) | -0.82 | (4) | 4.03 | (4) | -2.74 | (4) | 19 | (4) | |||||||||||||||||||
Period ended | 8.62 | -25.11 | — | * | 2.42 | (4) | -1.05 | (4) | — | — | 40 | |||||||||||||||||||||
Year ended 6-30-2008(8) | 11.51 | 4.64 | — | * | 2.11 | -0.97 | — | — | 27 | |||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 18.21 | 8.01 | 1 | 1.33 | (4) | -0.31 | (4) | — | — | 12 | ||||||||||||||||||||||
Year ended 3-31-2014 | 16.86 | 22.56 | 1 | 1.41 | -0.27 | — | — | 32 | ||||||||||||||||||||||||
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 | (9) | — | * | 2.52 | (4) | -1.11 | (4) | 4.28 | (4) | -2.87 | (4) | 19 | (4) |
See Accompanying Notes to Financial Statements.
2014 | SEMIANNUAL REPORT | 179 |
Table of Contents
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)(1) | Net Realized and Unrealized Gain (Loss) on Investments | Total from Investment Operations | Distributions | Distributions From Net Realized Gains | Distributions From Return of Capital | Total Distributions | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | $ | 23.82 | $ | 0.06 | $ | 1.67 | $ | 1.73 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Year ended 3-31-2014 | 20.30 | 0.07 | 4.42 | 4.49 | (0.04 | ) | (0.93 | ) | — | (0.97 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 17.57 | 0.15 | 2.73 | 2.88 | (0.15 | ) | — | — | (0.15 | ) | ||||||||||||||||||||||
Year ended 3-31-2012 | 17.93 | 0.13 | (0.19 | ) | (0.06 | ) | (0.12 | ) | (0.18 | ) | — | (0.30 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.56 | (0.02 | ) | 2.39 | 2.37 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2010 | 9.94 | 0.02 | 5.65 | 5.67 | (0.03 | ) | — | (0.02 | ) | (0.05 | ) | |||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 22.53 | (0.05 | ) | 1.58 | 1.53 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 19.28 | (0.12 | ) | 4.19 | 4.07 | — | (0.82 | ) | — | (0.82 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 16.72 | (0.03 | ) | 2.59 | 2.56 | — | — | * | — | — | * | |||||||||||||||||||||
Year ended 3-31-2012 | 17.15 | (0.07 | ) | (0.18 | ) | (0.25 | ) | — | (0.18 | ) | — | (0.18 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.12 | (0.25 | ) | 2.28 | 2.03 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2010 | 9.78 | (0.17 | ) | 5.51 | 5.34 | — | — | — | — | |||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.18 | (0.03 | ) | 1.63 | 1.60 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2014 | 19.80 | (0.09 | ) | 4.31 | 4.22 | — | (0.84 | ) | — | (0.84 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 17.16 | 0.02 | 2.67 | 2.69 | (0.05 | ) | — | * | — | (0.05 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 17.53 | 0.00 | (0.17 | ) | (0.17 | ) | (0.02 | ) | (0.18 | ) | — | (0.20 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.34 | (0.14 | ) | 2.33 | 2.19 | — | — | — | — | |||||||||||||||||||||||
Year ended 3-31-2010 | 9.86 | (0.08 | ) | 5.56 | 5.48 | — | — | — | — | |||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.90 | 0.08 | 1.69 | 1.77 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 20.36 | 0.11 | 4.44 | 4.55 | (0.09 | ) | (0.92 | ) | — | (1.01 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 17.61 | 0.20 | 2.74 | 2.94 | (0.19 | ) | — | * | — | (0.19 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 18.03 | 0.18 | (0.19 | ) | (0.01 | ) | (0.23 | ) | (0.18 | ) | — | (0.41 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.60 | 0.04 | 2.39 | 2.43 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 9.95 | 0.06 | 5.70 | 5.76 | (0.06 | ) | — | (0.05 | ) | (0.11 | ) | |||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.90 | 0.09 | 1.70 | 1.79 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 20.36 | 0.14 | 4.44 | 4.58 | (0.11 | ) | (0.93 | ) | — | (1.04 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 17.61 | 0.22 | 2.74 | 2.96 | (0.21 | ) | — | * | — | (0.21 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 18.05 | 0.21 | (0.20 | ) | 0.01 | (0.27 | ) | (0.18 | ) | — | (0.45 | ) | ||||||||||||||||||||
Year ended 3-31-2011 | 15.60 | 0.08 | 2.37 | 2.45 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 9.95 | 0.06 | 5.71 | 5.77 | (0.06 | ) | — | (0.06 | ) | (0.12 | ) | |||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 23.79 | 0.02 | 1.68 | 1.70 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 20.28 | 0.01 | 4.41 | 4.42 | (0.01 | ) | (0.90 | ) | — | (0.91 | ) | |||||||||||||||||||||
Year ended 3-31-2013(7) | 18.17 | 0.04 | 2.07 | 2.11 | — | — | — | — | ||||||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(9) | 24.96 | 0.04 | 0.69 | 0.73 | — | — | — | — | ||||||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited)(3) | 23.86 | 0.06 | 1.69 | 1.75 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2014 | 20.33 | 0.09 | 4.43 | 4.52 | (0.06 | ) | (0.93 | ) | — | (0.99 | ) | |||||||||||||||||||||
Year ended 3-31-2013 | 17.59 | 0.17 | 2.75 | 2.92 | (0.18 | ) | — | * | — | (0.18 | ) | |||||||||||||||||||||
Year ended 3-31-2012 | 17.99 | 0.14 | (0.17 | ) | (0.03 | ) | (0.19 | ) | (0.18 | ) | — | (0.37 | ) | |||||||||||||||||||
Year ended 3-31-2011 | 15.58 | 0.02 | 2.39 | 2.41 | — | — | — | — | ||||||||||||||||||||||||
Year ended 3-31-2010 | 9.95 | 0.04 | 5.67 | 5.71 | (0.04 | ) | — | (0.04 | ) | (0.08 | ) |
* | 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) | Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses. |
(4) | Annualized. |
(5) | These class shares are not available for direct investment. However, they are available for dividend reinvestment and exchange of the same class shares of another Ivy Fund or Waddell & Reed Advisors Fund. |
(6) | Class share is closed to investment. |
(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. |
(9) | For the period from July 31, 2014 (commencement of operations of the class) through September 30, 2014. |
180 | SEMIANNUAL REPORT | 2014 |
Table of Contents
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 | 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 9-30-2014 (unaudited) | $ | 25.55 | 7.26 | % | $ | 284 | 1.28 | %(4) | 0.45 | %(4) | — | % | — | % | 36 | % | ||||||||||||||||
Year ended 3-31-2014 | 23.82 | 22.44 | 248 | 1.31 | 0.30 | — | — | 58 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class B Shares(5) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.06 | 6.79 | 5 | 2.19 | (4) | -0.47 | (4) | — | — | 36 | ||||||||||||||||||||||
Year ended 3-31-2014 | 22.53 | 21.35 | 6 | 2.17 | -0.57 | — | — | 58 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 24.78 | 6.90 | 18 | 1.99 | (4) | -0.26 | (4) | — | — | 36 | ||||||||||||||||||||||
Year ended 3-31-2014 | 23.18 | 21.64 | 14 | 2.01 | -0.41 | — | — | 58 | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Class E Shares(6) | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.67 | 7.41 | — | * | 1.05 | (4) | 0.67 | (4) | — | — | 36 | |||||||||||||||||||||
Year ended 3-31-2014 | 23.90 | 22.73 | — | * | 1.09 | 0.51 | — | — | 58 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class I Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.69 | 7.49 | 9 | 0.96 | (4) | 0.76 | (4) | — | — | 36 | ||||||||||||||||||||||
Year ended 3-31-2014 | 23.90 | 22.85 | 5 | 0.99 | 0.63 | — | — | 58 | ||||||||||||||||||||||||
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 | |||||||||||||||||||||||
Class R Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 (unaudited) | 25.49 | 7.14 | — | * | 1.54 | (4) | 0.19 | (4) | — | — | 36 | |||||||||||||||||||||
Year ended 3-31-2014 | 23.79 | 22.13 | 1 | 1.57 | 0.03 | — | — | 58 | ||||||||||||||||||||||||
Year ended 3-31-2013 (7) | 20.28 | 11.61 | — | * | 1.55 | (4) | 0.73 | (4) | — | — | 57 | (8) | ||||||||||||||||||||
Class R6 Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 25.69 | 2.92 | — | * | 0.79 | (4) | 1.00 | (4) | — | — | 36 | |||||||||||||||||||||
Class Y Shares | ||||||||||||||||||||||||||||||||
Six-month period ended 9-30-2014 | 25.61 | 7.33 | 2 | 1.21 | (4) | 0.52 | (4) | — | — | 36 | ||||||||||||||||||||||
Year ended 3-31-2014 | 23.86 | 22.56 | 2 | 1.22 | 0.40 | — | — | 58 | ||||||||||||||||||||||||
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 |
See Accompanying Notes to Financial Statements.
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Ivy Funds | SEPTEMBER 30, 2014 (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 Emerging Markets Equity 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 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 Small Cap Growth Fund, Ivy Small Cap Value Fund, Ivy Tax-Managed Equity Fund and Ivy Value Fund (each, a “Fund”) are 24 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 (“SAI”). 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. Effective January 1, 2014, the Funds’ Class B shares are not available for purchase by new and existing investors. Class B shares will continue to be available for dividend reinvestment and exchanges from Class B shares of another fund within Ivy Funds. Class C shares are not available for direct investment in the Ivy Money Market Fund. Certain Funds may also offer Class E, Class I, Class R, Class R6 and/or Class Y shares. Class E shares are closed for all investments in the Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy International Growth Fund, Ivy Managed International Opportunities Fund, Ivy Small Cap Value Fund and Ivy Value Fund. Class A and Class E shares are sold at their offering price, which is normally net asset value (“NAV”) plus a front-end sales charge. For Class A shares, a 1% contingent deferred sales charge (“CDSC”) is only imposed on shares purchased at NAV for $1 million or more that are subsequently redeemed within 12 months of purchase. Class B and Class C shares are sold without a front-end sales charge, but may be subject to a CDSC. Class I, Class R, Class R6 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 NAV 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 and Class R6 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 typically 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, 2014, 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 2009.
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
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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.
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.
Loans. Certain Funds may invest in loans, the interest rates of which float or adjust periodically based upon a specified adjustment schedule, benchmark indicator, or prevailing interest rates of domestic or foreign corporations, partnerships and other entities (“Borrower”). Loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates generally include prime rates of one or more major U.S. banks, LIBOR rates or certificates of deposit rates. Loans often require prepayments from excess cash flow or permit the borrower to repay at its election. The degree to which borrowers repay cannot be predicted with accuracy. As a result, the actual maturity may be substantially less than the stated maturities. Loans are exempt from registration under the Securities Act of 1933, may contain certain restrictions on resale, and cannot be sold publicly. A Fund’s investments in loans may be in the form of participations in loans or assignments of all or a portion of loans from third parties.
When a Fund purchases assignments, it acquires all the rights and obligations under the loan agreement of the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than those held by the assigning lender. When a Fund purchases a participation of a loan interest, the Fund typically enters into a contractual agreement with the lender or other third party selling the participation. A participation interest in loans includes the right to receive payments of principal, interest and any fees to which it is entitled from the lender and only upon receipt by the lender of payments from the Borrower, but not from the Borrower directly. When investing in a participation interest, if a Borrower is unable to meet its obligations under a loan agreement, a Fund generally has no right to enforce compliance with the terms of the loan agreement. As a result, the Fund assumes the credit risk of the Borrower, the selling participant, and any other persons that are interpositioned between the Fund and the Borrower. If the lead lender in a typical lending syndicate becomes insolvent, enters Federal Deposit Insurance Corporation (“FDIC”) receivership or, if not FDIC insured, enters into bankruptcy, the Fund may incur certain costs and delays in receiving payment or may suffer a loss of principal and/or interest.
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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 NAV 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.
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.
Independent Trustees and Chief Compliance Officer Fees. Fees paid to the Independent 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.
Basis of Preparation. Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The accompanying financial statements were prepared in accordance with U.S. GAAP, including but not limited to ASC 946. U.S. GAAP requires the use of estimates made by management. Management believes that estimates and valuations are appropriate; however, actual results may differ from those estimates, and the valuations reflected in the accompanying financial statements may differ from the value ultimately realized upon sale or maturity.
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 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.
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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 procedures approved by 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 procedures 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 in accordance with the procedures adopted by 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 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.
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.
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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 provided by an independent pricing service. 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. OTC derivative products valued using pricing models with significant observable inputs 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.
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.
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 primarily 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 primarily 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
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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, 2014, 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 provided by an independent pricing service 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 portfolio securities. The cost of instruments acquired through the exercise of call options is increased by the premium paid to purchase the call. The proceeds from instruments 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 written call option is exercised, the premium is added to the proceeds from the sale of the underlying instrument 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 instruments 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 instrument. With written options, there may be times when a Fund will be required to purchase or sell instruments 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 instrument. 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.
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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. 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 financial instruments subject to master netting agreements as of September 30, 2014:
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 Receivable | |||||||||||||||||||||
Ivy Cundill Global Value Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 1,296 | $ | — | $ | 1,296 | $ | — | $ | (626 | ) | $ | — | $ | 670 | |||||||||||||
Ivy Emerging Markets Equity Fund | ||||||||||||||||||||||||||||
Investments in unaffiliated securities at value* | $ | 1,005 | $ | — | $ | 1,005 | $ | (187 | ) | $ | — | $ | (450 | ) | $ | 368 | ||||||||||||
Unrealized appreciation on swap agreements | 274 | — | 274 | (215 | ) | — | — | 59 | ||||||||||||||||||||
Total | $ | 1,279 | $ | — | $ | 1,279 | $ | (402 | ) | $ | — | $ | (450 | ) | $ | 427 | ||||||||||||
Ivy European Opportunities Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency | $ | 1,539 | $ | — | $ | 1,539 | $ | — | $ | (1,197 | ) | $ | — | $ | 342 | |||||||||||||
Ivy Global Equity Income Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency | $ | 2,821 | $ | — | $ | 2,821 | $ | — | $ | (2,471 | ) | $ | — | $ | 350 | |||||||||||||
Ivy Global Income Allocation Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 2,848 | $ | — | $ | 2,848 | $ | — | $ | (2,605 | ) | $ | — | $ | 243 | |||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency | $ | 12,066 | $ | — | $ | 12,066 | $ | (4,899 | ) | $ | (686 | ) | $ | (5,480 | ) | $ | 1,001 | |||||||||||
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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 Receivable | |||||||||||||||||||||
Ivy International Core Equity Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts | $ | 2,763 | $ | — | $ | 2,763 | $ | — | $ | (2,712 | ) | $ | — | $ | 51 | |||||||||||||
Ivy International Growth Fund | ||||||||||||||||||||||||||||
Unrealized appreciation on forward foreign currency contracts(1) | $ | 1,042 | $ | — | $ | 1,042 | $ | — | $ | (913 | ) | $ | — | $ | 129 | |||||||||||||
* | Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities. |
(1) | Amounts include 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 Payable | |||||||||||||||||||||
Ivy Emerging Markets Equity Fund | ||||||||||||||||||||||||||||
Written Options at value | $ | 402 | $ | — | $ | 402 | $ | (402 | ) | $ | — | $ | — | $ | — | |||||||||||||
Ivy Global Bond Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency contracts | $ | 46 | $ | — | $ | 46 | $ | — | $ | — | $ | — | $ | 46 | ||||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on forward foreign currency | $ | 4,899 | $ | — | $ | 4,899 | $ | (4,899 | ) | $ | — | $ | — | $ | — | |||||||||||||
Ivy Mid Cap Growth Fund | ||||||||||||||||||||||||||||
Written Options at value | $ | 233 | $ | — | $ | 233 | $ | — | $ | — | $ | — | $ | 233 | ||||||||||||||
Ivy Small Cap Growth Fund | ||||||||||||||||||||||||||||
Unrealized depreciation on swap agreements | $ | 570 | $ | — | $ | 570 | $ | — | $ | (279 | ) | $ | — | $ | 291 | |||||||||||||
(1) | Amounts include forward currency contracts that have an offset to an open and close contract, but have not settled. |
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Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of period ended September 30, 2014:
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* | $ 187 | $ — | ||||||||||||
Ivy Cundill Global Value Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 1,296 | — | ||||||||||||
Ivy Emerging Markets Equity Fund | Equity | Investments in unaffiliated securities at value** | 1,987 | Written options at value | 2,798 | |||||||||||
Equity | Unrealized appreciation on swap agreements | 274 | — | |||||||||||||
Ivy European Opportunities Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 1,310 | — | ||||||||||||
Ivy Global Bond Fund | Foreign currency | — | Unrealized depreciation on forward foreign currency contracts | 46 | ||||||||||||
Ivy Global Equity Income Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 2,501 | — | ||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 2,848 | — | ||||||||||||
Ivy High Income Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 9,481 | — | ||||||||||||
Ivy International Growth Fund | Foreign currency | Unrealized appreciation on forward foreign currency contracts | 1,042 | — | ||||||||||||
Ivy Limited-Term Bond Fund | Interest rate | Unrealized appreciation on futures contracts* | 928 | Unrealized depreciation on futures contracts* | (20) | |||||||||||
Ivy Mid Cap Growth Fund | Equity | — | Written options at value | 233 | ||||||||||||
Ivy Small Cap Growth Fund | Equity | — | Unrealized depreciation on swap agreements | 570 | ||||||||||||
Ivy Value Fund | Equity | — | Written options at value | 72 |
* | 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, 2014. |
** | Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments. |
Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2014:
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 | $ | — | $ | — | $ | (1,080 | ) | $ | — | $ | — | $ | (1,080 | ) | |||||||||||
Ivy Cundill Global Value Fund | Foreign currency | — | — | — | — | 96 | 96 | |||||||||||||||||||
Ivy Emerging Markets Equity Fund | Equity | 574 | 126 | — | 1,010 | — | 1,710 | |||||||||||||||||||
Foreign currency | — | — | — | — | (106 | ) | (106 | ) | ||||||||||||||||||
Ivy European Opportunities Fund | Foreign currency | — | — | — | — | 1,263 | 1,263 | |||||||||||||||||||
Ivy Global Bond Fund | Foreign currency | — | — | — | — | (202 | ) | (202 | ) | |||||||||||||||||
Ivy Global Equity Income Fund | Foreign currency | — | — | — | — | 1,077 | 1,077 | |||||||||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | — | — | — | — | 1,707 | 1,707 | |||||||||||||||||||
Ivy High Income Fund | Foreign currency | — | — | — | — | 8,902 | 8,902 | |||||||||||||||||||
Ivy International Core Equity Fund | Foreign currency | — | — | — | — | 9,877 | 9,877 | |||||||||||||||||||
Ivy International Growth Fund | Foreign currency | — | — | — | — | 1,104 | 1,104 | |||||||||||||||||||
Ivy Limited-Term Bond Fund | Interest rate | — | — | (5,740 | ) | — | — | (5,740 | ) | |||||||||||||||||
Ivy Mid Cap Growth Fund | Equity | (9,082 | ) | — | — | 3,056 | — | (6,026 | ) | |||||||||||||||||
Ivy Small Cap Value Fund | Equity | — | — | — | 61 | — | 61 | |||||||||||||||||||
Ivy Value Fund | Equity | — | — | — | 566 | — | 566 |
* | Purchased options are reported as investments in unaffiliated securities and are reflected in the accompanying Schedule of Investments. |
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Change in unrealized appreciation (depreciation) on derivatives recognized on the Statement of Operations for the period ended September 30, 2014:
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 | $ | — | $ | — | $ | 236 | $ | — | $ | — | $ | 236 | |||||||||||||
Ivy Cundill Global Value Fund | Foreign currency | — | — | — | — | 1,345 | 1,345 | |||||||||||||||||||
Ivy Emerging Markets Equity Fund | Equity | (1,320 | ) | 841 | — | 530 | — | 51 | ||||||||||||||||||
Foreign currency | — | — | — | — | (172 | ) | (172 | ) | ||||||||||||||||||
Ivy European Opportunities Fund | Foreign currency | — | — | — | — | 1,279 | 1,279 | |||||||||||||||||||
Ivy Global Bond Fund | Foreign currency | — | — | — | — | 17 | 17 | |||||||||||||||||||
Ivy Global Equity Income Fund | Foreign currency | — | — | — | — | 2,708 | 2,708 | |||||||||||||||||||
Ivy Global Income Allocation Fund | Foreign currency | — | — | — | — | 2,911 | 2,911 | |||||||||||||||||||
Ivy High Income Fund | Foreign currency | — | — | — | — | 11,331 | 11,331 | |||||||||||||||||||
Ivy International Core Equity Fund | Foreign currency | — | — | — | — | (319 | ) | (319 | ) | |||||||||||||||||
Ivy International Growth Fund | Foreign currency | — | — | — | — | 849 | 849 | |||||||||||||||||||
Ivy Limited-Term Bond Fund | Interest rate | — | — | 2,532 | — | — | 2,532 | |||||||||||||||||||
Ivy Mid Cap Growth Fund | Equity | (12 | ) | — | — | (98 | ) | — | (110 | ) | ||||||||||||||||
Ivy Small Cap Growth Fund | Equity | — | (570 | ) | — | — | — | (570 | ) | |||||||||||||||||
Ivy Value Fund | Equity | — | — | — | (236 | ) | — | (236 | ) |
* | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
During the period ended September 30, 2014, 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 | $ | — | $ | — | $ | — | $ | 27,520 | $ | — | $ | — | $ | — | ||||||||||||||
Ivy Cundill Global Value Fund | 23,391 | 23,269 | — | — | — | — | — | |||||||||||||||||||||
Ivy Emerging Markets Equity Fund | 16,675 | 16,630 | — | — | 3,870 | 1,313 | 942 | |||||||||||||||||||||
Ivy European Opportunities Fund | 27,580 | 27,376 | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Bond Fund | 3,542 | 3,559 | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Equity Income Fund. | 44,676 | 44,327 | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Income Allocation Fund | 77,774 | 77,358 | — | — | — | — | — | |||||||||||||||||||||
Ivy High Income Fund | 396,171 | 395,145 | — | — | — | — | — | |||||||||||||||||||||
Ivy International Core Equity Fund | 135,865 | 135,768 | — | — | — | — | — | |||||||||||||||||||||
Ivy International Growth Fund | 37,599 | 37,409 | — | — | — | — | — | |||||||||||||||||||||
Ivy Limited-Term Bond Fund | — | — | — | 372,647 | — | — | — | |||||||||||||||||||||
Ivy Mid Cap Growth Fund | — | — | — | — | — | 3,486 | 597 | |||||||||||||||||||||
Ivy Small Cap Growth Fund | — | — | — | — | 1,609 | — | — | |||||||||||||||||||||
Ivy Small Cap Value | — | — | — | — | — | — | 7 | |||||||||||||||||||||
Ivy Value Fund | — | — | — | — | — | — | 237 |
(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 foreign currency contracts.
Ivy Emerging Markets Equity 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 foreign currency 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.
Ivy European Opportunities 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 foreign currency contracts to either increase or decrease exposure to a given currency.
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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 foreign currency 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 foreign currency 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 foreign currency 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 foreign currency 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 foreign currency 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 foreign currency 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 options, both written and purchased, on either an index or on individual or baskets of equity securities.
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 Small Cap Value 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 written options 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 3-31-14 | Options written | Options closed | Options exercised | Options expired | Outstanding at 9-30-14 | ||||||||||||||||||
Ivy Emerging Markets Equity Fund | ||||||||||||||||||||||||
Number of Contracts | 3,485 | 22,924 | (2,940 | ) | — | (8,364 | ) | 15,105 | ||||||||||||||||
Premium Received | $ | 834 | $ | 4,381 | $ | (255 | ) | $ | — | $ | (1,059 | ) | $ | 3,901 | ||||||||||
Ivy Mid Cap Growth Fund | ||||||||||||||||||||||||
Number of Contracts | 9,181 | 93,112 | (73,153 | ) | (4,835 | ) | (20,210 | ) | 4,095 | |||||||||||||||
Premium Received | $ | 1,666 | $ | 3,643 | $ | (3,120 | ) | $ | (227 | ) | $ | (1,659 | ) | $ | 303 | |||||||||
Ivy Small Cap Value Fund | ||||||||||||||||||||||||
Number of Contracts | — | 675 | — | — | (675 | ) | — | |||||||||||||||||
Premium Received | $ | — | $ | 61 | $ | — | $ | — | $ | (61 | ) | $ | — | |||||||||||
Ivy Value Fund | ||||||||||||||||||||||||
Number of Contracts | 1,923 | 5,519 | (1,352 | ) | (682 | ) | (4,161 | ) | 1,247 | |||||||||||||||
Premium Received | $ | 961 | $ | 602 | $ | (467 | ) | $ | (492 | ) | $ | (435 | ) | $ | 169 |
6. | BASIS FOR CONSOLIDATION OF THE IVY EMERGING MARKETS EQUITY FUND |
Ivy EME, Ltd. (the “Subsidiary”), a Cayman Islands exempted company, was incorporated as a wholly owned subsidiary acting as an investment vehicle for the Ivy Emerging Markets Equity Fund (referred to as “the Fund” in this subsection). The Subsidiary acts as an investment vehicle for the Fund, in order to effect certain investments for the Fund consistent with the Fund’s investment objectives and policies as specified in its prospectus and SAI. The Fund’s investment portfolio has been consolidated and includes the portfolio holdings of the Fund and its Subsidiary. The consolidated financial statements include the accounts of the Fund and its Subsidiary. All inter-company transactions and balances have been eliminated. A subscription agreement was entered into between the Fund and its Subsidiary comprising the entire issued share capital of the Subsidiary 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 confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary 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.
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See the table below for details regarding the structure, incorporation and relationship as of September 30, 2014 of the Subsidiary to the Fund (amounts in thousands).
Subsidiary | Date of Incorporation | Subscription Agreement | Fund Net Assets | Subsidiary Net Assets | Percentage of Fund Net Assets | |||||||||||||||
Ivy EME, Ltd. | 1-31-13 | 4-10-13 | $ | 642,064 | $ | 357 | 0.06 | % |
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 $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 Emerging Markets Equity Fund | 1.000 | 1.000 | 0.850 | 0.830 | 0.830 | 0.800 | 0.760 | 0.760 | 0.760 | |||||||||||||||||||||||||
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 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 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, 2014.
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 and Administrative 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 International Opportunities 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.
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Under the Accounting and Administrative Services Agreement for the Ivy Managed International Opportunities Fund, the 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, the Ivy Managed International Opportunities Fund 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. For Class R6 shares, each Fund pays WISC a monthly fee equal to one-twelfth of 0.01 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 NAV 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.
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, 2014, 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 | $ | 140 | $ | — | * | $ | 7 | $ | 1 | $ | — | $ | 122 | |||||||||||
Ivy Core Equity Fund | 315 | 1 | 5 | 5 | — | 308 | ||||||||||||||||||
Ivy Cundill Global Value Fund | 79 | — | * | 1 | 1 | — | 69 | |||||||||||||||||
Ivy Dividend Opportunities Fund | 123 | 2 | 4 | 1 | — | 102 | ||||||||||||||||||
Ivy Emerging Markets Equity Fund | 167 | 1 | 8 | 3 | — | 168 | ||||||||||||||||||
Ivy European Opportunities Fund | 41 | — | * | 1 | — | * | — | 39 | ||||||||||||||||
Ivy Global Bond Fund | 44 | — | * | 4 | 1 | — | 86 |
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Gross Sales Commissions | CDSC | Commissions Paid(1) | ||||||||||||||||||||||
Class A | Class B | Class C | Class E | |||||||||||||||||||||
Ivy Global Equity Income Fund | $ | 88 | $ | — | * | $ | — | * | $ | 1 | $ | — | $ | 81 | ||||||||||
Ivy Global Income Allocation Fund | 192 | — | * | 4 | 1 | — | 160 | |||||||||||||||||
Ivy High Income Fund | 1,201 | 18 | 130 | 177 | — | 2,785 | ||||||||||||||||||
Ivy International Core Equity Fund | 378 | 4 | 6 | 6 | — | 443 | ||||||||||||||||||
Ivy International Growth Fund | 67 | — | * | 2 | — | * | — | 65 | ||||||||||||||||
Ivy Large Cap Growth Fund | 213 | 1 | 3 | 2 | — | 217 | ||||||||||||||||||
Ivy Limited-Term Bond Fund | 656 | 27 | 26 | 6 | — | 640 | ||||||||||||||||||
Ivy Managed International Opportunities Fund | 65 | — | * | 2 | — | * | — | 55 | ||||||||||||||||
Ivy Micro Cap Growth Fund | 169 | 1 | 1 | 3 | — | 154 | ||||||||||||||||||
Ivy Mid Cap Growth Fund | 284 | 2 | 18 | 19 | — | 444 | ||||||||||||||||||
Ivy Money Market Fund | — | — | * | 9 | 7 | — | 1 | |||||||||||||||||
Ivy Municipal Bond Fund | 36 | — | * | 4 | 1 | — | 37 | |||||||||||||||||
Ivy Municipal High Income Fund | 127 | 3 | 12 | 14 | — | 286 | ||||||||||||||||||
Ivy Small Cap Growth Fund | 201 | 28 | 4 | 6 | — | 220 | ||||||||||||||||||
Ivy Small Cap Value Fund | 77 | — | * | 2 | 1 | — | 76 | |||||||||||||||||
Ivy Tax-Managed Equity Fund | 14 | — | — | * | — | * | — | 14 | ||||||||||||||||
Ivy Value Fund | 65 | 1 | 1 | 1 | — | 60 |
* | 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, 2014 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 | 7-31-2015 | 1.14% | $ | 4 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Core Equity Fund | Class A | Contractual | 1-11-2013 | 7-31-2015 | 1.15% | $ | 73 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.35% | $ | 4 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class I | Contractual | 1-11-2013 | 7-31-2015 | 0.84% | $ | 63 | Shareholder Servicing | |||||||||
Class Y | Contractual | 1-11-2013 | 7-31-2015 | 0.84% | $ | 118 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Cundill Global Value Fund | All Classes | Contractual | 12-3-2012 | 7-31-2015 | N/A | $ | 267 | (1) | Investment Management Fee | |||||||
Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.59% | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Dividend Opportunities Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.37% | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Emerging Markets Equity Fund | Class A | Contractual | 3-17-2014 | 7-30-2016 | 1.50% | $ | 466 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class B | Contractual | 3-17-2014 | 7-30-2016 | 2.50% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | 3 | N/A |
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Fund Name | Share Class Name | Type of Expense Limit | Commencement Date | End Date | Expense Limit | Amount of Expense Waiver/ Reimbursement | Expense Reduced | |||||||||
Ivy European Opportunities Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Global Bond Fund | Class A | Contractual | 6-2-2008 | 7-31-2015 | 0.99% | $ | 222 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class B | Contractual | 6-2-2008 | 7-31-2015 | 1.74% | $ | 11 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class C | Contractual | 6-2-2008 | 7-31-2015 | 1.74% | $ | 22 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class I | Contractual | 6-2-2008 | 7-31-2015 | 0.74% | $ | 39 | Shareholder Servicing | |||||||||
Class Y | Contractual | 6-2-2008 | 7-31-2015 | 0.99% | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Global Equity Income Fund | Class A | Contractual | 6-4-2012 | 7-31-2015 | 1.30% | $ | 88 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class I | Contractual | 6-4-2012 | 7-31-2015 | 0.94% | $ | 3 | Shareholder Servicing | |||||||||
Class Y | Contractual | 6-4-2012 | 7-31-2015 | 1.19% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 6-4-2012 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Global Income Allocation Fund | Class E | Contractual | 6-4-2012 | 7-31-2015 | 1.33% | $ | 4 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 6-4-2012 | 7-31-2015 | 1.17% | $ | — | * | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy High Income Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.36% | $ | — | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | 112 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy International Core Equity Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.53% | $ | 5 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy International Growth Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Large Cap Growth Fund | Class A | Contractual | 6-1-2006 | 7-31-2015 | 1.15% | $ | 107 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.15% | $ | 10 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class I | Contractual | 6-13-2011 | 7-31-2015 | 0.88% | $ | — | Shareholder Servicing | |||||||||
Class Y | Contractual | 6-1-2006 | 7-31-2015 | 1.06% | $ | 41 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A |
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Fund Name | Share Class Name | Type of Expense Limit | Commencement Date | End Date | Expense Limit | Amount of Expense Waiver/ Reimbursement | Expense Reduced | |||||||||
Ivy Limited-Term Bond Fund | Class E | Contractual | 8-1-2010 | 7-31-2015 | 1.00% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Managed International Opportunities Fund | Class A | Contractual | 3-17-2014 | 7-31-2016 | 0.49% | $ | 14 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class B | Contractual | 3-17-2014 | 7-31-2016 | 1.40% | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class C | Contractual | 3-17-2014 | 7-31-2016 | 1.29% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class E | Contractual | 3-17-2014 | 7-31-2016 | 0.39% | $ | — | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class I | Contractual | 3-17-2014 | 7-31-2016 | 0.16% | $ | 1 | Shareholder Servicing | |||||||||
Class R | Contractual | 3-17-2014 | 7-31-2016 | 0.72% | $ | — | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 3-17-2014 | 7-31-2016 | 0.38% | $ | 1 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | 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 A | Contractual | 8-1-14 | 7-31-2015 | 1.31% | $ | 61 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.60% | $ | 2 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Money Market Fund | Class A | Voluntary | N/A | N/A | To maintain minimum yield(2) | $ | 329 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class B | Voluntary | N/A | N/A | To maintain minimum yield(2) | $ | 47 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class C | Voluntary | N/A | N/A | To maintain minimum yield(2) | $ | 243 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Class E | Voluntary | N/A | N/A | To maintain minimum yield(2) | $ | 15 | 12b-1 Fees and/or Shareholder Servicing | |||||||||
Ivy Municipal Bond Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | 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 | $ | 101 | Investment Management Fee | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | 9 | 12b-1 Fees and/or Shareholder Servicing |
2014 | SEMIANNUAL REPORT | 197 |
Table of Contents
Fund Name | Share Class Name | Type of Expense Limit | Commencement Date | End Date | Expense Limit | Amount of Expense Waiver/ Reimbursement | Expense Reduced | |||||||||
Ivy Small Cap Growth Fund | Class E | Contractual | 8-1-2008 | 7-31-2015 | 1.56% | $ | 6 | 12b-1 Fees and/or Shareholder Servicing | ||||||||
Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | |||||||||
Ivy Small Cap Value Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Tax-Managed Equity Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A | ||||||||
Ivy Value Fund | Class Y | Contractual | 8-1-2011 | 7-31-2015 | Not to exceed Class A | $ | — | N/A |
* | Not shown due to rounding. |
(1) | The Fund's management fee is being reduced by 0.14% of average daily net assets. |
(2) | Minimum yield was 0.02% throughout the period of this report. |
Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2014 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.
8. | INTERFUND LENDING PROGRAM |
Pursuant to an exemptive order issued by the SEC (“Order”), the Trust and the Advisors Fund Complex (Waddell & Reed Advisors Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios; referred to with the Funds for purposes of this section as Funds) have the ability to lend money to, and borrow money from, each other pursuant to a master interfund lending agreement (“Interfund Lending Program”). Under the Interfund Lending Program, the Funds may lend or borrow money for temporary purposes directly to or from one another (each an “Interfund Loan”), subject to meeting the conditions of the Order. The interest rate to be charged on an Interfund Loan is the average of the overnight repurchase agreement rate and the short-term bank loan rate. The Funds made no Interfund Loans under the Interfund Lending Program during the period ended September 30, 2014.
9. | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2014 follows:
3-31-14 Share Balance | Purchases at Cost | Sales at Cost | Realized Gain/(Loss)(1) | Distributions Received | 9-30-14 Share Balance | 9-30-14 Value | ||||||||||||||||||||||
Ivy High Income Fund | ||||||||||||||||||||||||||||
Maritime Finance Company Ltd. | 1,750 | $ | — | $ | — | $ | — | $ | 725 | 1,750 | $ | 36,506 | ||||||||||||||||
Ivy Managed International Opportunities Fund | ||||||||||||||||||||||||||||
Ivy Emerging Markets Equity Fund, Class I | 6,838 | $ | 296 | $ | 9,174 | $ | 850 | $ | — | 6,231 | $ | 98,203 | ||||||||||||||||
Ivy European Opportunities Fund, Class I | 884 | 74 | 1,760 | 746 | $ | — | $ | 803 | $ | 23,264 | ||||||||||||||||||
Ivy Global Income Allocation Fund, Class I | 1,704 | 639 | 2,455 | 51 | 564 | 1,587 | 24,749 | |||||||||||||||||||||
Ivy International Core Equity Fund, Class I | 2,814 | 148 | 4,777 | 236 | — | 2,568 | 50,102 | |||||||||||||||||||||
Ivy International Growth Fund, Class I | 1,293 | 148 | 4,866 | 147 | — | 1,178 | 48,953 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$ | 2,030 | $ | 564 | $ | 245,271 | |||||||||||||||||||||||
|
|
|
|
|
|
(1) | Included in Realized Gain/Loss, if applicable, are distributions from capital gains from the underlying securities. |
10. | 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, 2014, were as follows:
Purchases | Sales | |||||||||||||||
U.S. Government | Other Issuers | U.S. Government | Other Issuers | |||||||||||||
Ivy Bond Fund | $ | 360,764 | $ | 173,678 | $ | 314,978 | $ | 148,106 | ||||||||
Ivy Core Equity Fund | — | 436,325 | — | 333,158 | ||||||||||||
Ivy Cundill Global Value Fund | — | 28,855 | — | 7,878 | ||||||||||||
Ivy Dividend Opportunities Fund | — | 84,143 | — | 82,712 | ||||||||||||
Ivy Emerging Markets Equity Fund | — | 315,911 | — | 420,646 | ||||||||||||
Ivy European Opportunities Fund | — | 179,257 | — | 184,784 | ||||||||||||
Ivy Global Bond Fund | 14,981 | 51,369 | 5 | 31,250 | ||||||||||||
Ivy Global Equity Income Fund | — | 171,175 | — | 133,733 | ||||||||||||
Ivy Global Income Allocation Fund | — | 394,037 | — | 297,950 |
198 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Purchases | Sales | |||||||||||||||
U.S. Government | Other Issuers | U.S. Government | Other Issuers | |||||||||||||
Ivy High Income Fund | $ | — | $ | 3,040,642 | $ | — | $ | 4,645,059 | ||||||||
Ivy International Core Equity Fund | — | 1,487,588 | — | 1,043,410 | ||||||||||||
Ivy International Growth Fund | — | 205,249 | — | 156,727 | ||||||||||||
Ivy Large Cap Growth Fund | — | 224,997 | — | 258,983 | ||||||||||||
Ivy Limited-Term Bond Fund | — | 265,707 | 28,540 | 226,556 | ||||||||||||
Ivy Managed International Opportunities Fund | — | 1,306 | — | 25,063 | ||||||||||||
Ivy Micro Cap Growth Fund | — | 61,276 | — | 58,661 | ||||||||||||
Ivy Mid Cap Growth Fund | — | 816,564 | — | 796,918 | ||||||||||||
Ivy Money Market Fund | — | — | — | — | ||||||||||||
Ivy Municipal Bond Fund | — | 10,169 | — | 4,166 | ||||||||||||
Ivy Municipal High Income Fund | — | 46,790 | — | 77,895 | ||||||||||||
Ivy Small Cap Growth Fund | — | 221,586 | — | 316,878 | ||||||||||||
Ivy Small Cap Value Fund | — | 64,798 | — | 57,462 | ||||||||||||
Ivy Tax-Managed Equity Fund | — | 9,826 | — | 5,689 | ||||||||||||
Ivy Value Fund | — | 123,962 | — | 102,348 |
11. | 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 Bond Fund | Ivy Core Equity Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 13,364 | $ | 141,584 | 25,007 | $ | 261,119 | 10,777 | $ | 156,195 | 16,060 | $ | 213,280 | ||||||||||||||||||||
Class B | 122 | 1,288 | 146 | 1,521 | 51 | 648 | 241 | 2,779 | ||||||||||||||||||||||||
Class C | 416 | 4,403 | 486 | 5,084 | 1,109 | 14,579 | 2,256 | 26,789 | ||||||||||||||||||||||||
Class E | 31 | 330 | 45 | 469 | 81 | 1,179 | 142 | 1,876 | ||||||||||||||||||||||||
Class I | 290 | 3,078 | 305 | 3,180 | 8,733 | 140,084 | 12,308 | 178,464 | ||||||||||||||||||||||||
Class R | — | * | 2 | 24 | 257 | 32 | 474 | 121 | 1,623 | |||||||||||||||||||||||
Class R6 | 120 | 1,270 | N/A | N/A | 208 | 3,388 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 74 | 781 | 210 | 2,190 | 989 | 15,328 | 2,898 | 40,258 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 681 | 7,227 | 1,361 | 14,205 | — | — | 1,903 | 25,267 | ||||||||||||||||||||||||
Class B | 5 | 51 | 14 | 146 | — | — | 51 | 602 | ||||||||||||||||||||||||
Class C | 14 | 153 | 47 | 488 | — | — | 602 | 7,213 | ||||||||||||||||||||||||
Class E | 4 | 45 | 11 | 113 | — | — | 26 | 344 | ||||||||||||||||||||||||
Class I | 5 | 48 | 10 | 109 | — | — | 368 | 5,322 | ||||||||||||||||||||||||
Class R | — | * | — | * | — | — | — | — | 1 | 13 | ||||||||||||||||||||||
Class R6 | — | * | 3 | N/A | N/A | — | — | N/A | N/A | |||||||||||||||||||||||
Class Y | 3 | 32 | 7 | 77 | — | — | 168 | 2,376 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (7,109 | ) | (75,291 | ) | (24,512 | ) | (254,990 | ) | (7,809 | ) | (114,861 | ) | (8,719 | ) | (116,113 | ) | ||||||||||||||||
Class B | (100 | ) | (1,062 | ) | (534 | ) | (5,538 | ) | (109 | ) | (1,382 | ) | (324 | ) | (3,768 | ) | ||||||||||||||||
Class C | (452 | ) | (4,785 | ) | (2,135 | ) | (22,232 | ) | (1,241 | ) | (16,160 | ) | (1,902 | ) | (22,976 | ) | ||||||||||||||||
Class E | (30 | ) | (316 | ) | (145 | ) | (1,503 | ) | (20 | ) | (298 | ) | (29 | ) | (385 | ) | ||||||||||||||||
Class I | (146 | ) | (1,552 | ) | (432 | ) | (4,489 | ) | (4,283 | ) | (68,760 | ) | (7,227 | ) | (105,739 | ) | ||||||||||||||||
Class R | — | — | (23 | ) | (252 | ) | (5 | ) | (83 | ) | (24 | ) | (306 | ) | ||||||||||||||||||
Class R6 | — | * | (1 | ) | N/A | N/A | (4 | ) | (69 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (63 | ) | (663 | ) | (410 | ) | (4,322 | ) | (387 | ) | (5,947 | ) | (657 | ) | (9,285 | ) | ||||||||||||||||
Net increase (decrease) | 7,229 | $ | 76,625 | (518 | ) | $ | (4,368 | ) | 8,122 | $ | 124,315 | 18,263 | $ | 247,634 |
2014 | SEMIANNUAL REPORT | 199 |
Table of Contents
Ivy Cundill Global Value Fund | Ivy Dividend Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 2,425 | $ | 44,164 | 8,797 | $ | 149,096 | 2,215 | $ | 46,088 | 4,902 | $ | 91,270 | ||||||||||||||||||||
Class B | 4 | 62 | 58 | 915 | 17 | 350 | 111 | 1,994 | ||||||||||||||||||||||||
Class C | 39 | 680 | 202 | 3,297 | 164 | 3,398 | 432 | 7,886 | ||||||||||||||||||||||||
Class E | 14 | 263 | 16 | 273 | 21 | 426 | 27 | 492 | ||||||||||||||||||||||||
Class I | 204 | 3,799 | 163 | 2,843 | 1,161 | 24,619 | 2,574 | 48,752 | ||||||||||||||||||||||||
Class R | — | * | 1 | 19 | 297 | — | — | 16 | 287 | |||||||||||||||||||||||
Class R6 | 115 | 2,153 | N/A | N/A | 16 | 333 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 16 | 294 | 493 | 8,174 | 33 | 686 | 114 | 2,104 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 9 | 166 | 55 | 1,158 | 328 | 6,206 | ||||||||||||||||||||||||
Class B | — | — | — | * | — | * | — | * | 3 | 10 | 183 | |||||||||||||||||||||
Class C | — | — | — | — | 1 | 24 | 37 | 692 | ||||||||||||||||||||||||
Class E | — | — | — | * | 3 | 1 | 15 | 5 | 96 | |||||||||||||||||||||||
Class I | — | — | 2 | 27 | 2 | 50 | 10 | 181 | ||||||||||||||||||||||||
Class R | — | — | — | * | — | * | — | — | — | — | ||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | * | — | * | N/A | N/A | ||||||||||||||||||||||
Class Y | — | — | 1 | 11 | 2 | 44 | 13 | 249 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (2,113 | ) | (38,458 | ) | (3,723 | ) | (62,583 | ) | (1,882 | ) | (39,155 | ) | (5,166 | ) | (96,206 | ) | ||||||||||||||||
Class B | (69 | ) | (1,159 | ) | (238 | ) | (3,719 | ) | (49 | ) | (994 | ) | (158 | ) | (2,921 | ) | ||||||||||||||||
Class C | (131 | ) | (2,250 | ) | (285 | ) | (4,600 | ) | (196 | ) | (4,042 | ) | (428 | ) | (7,940 | ) | ||||||||||||||||
Class E | (10 | ) | (186 | ) | (4 | ) | (71 | ) | (13 | ) | (282 | ) | (27 | ) | (508 | ) | ||||||||||||||||
Class I | (144 | ) | (2,705 | ) | (80 | ) | (1,403 | ) | (1,054 | ) | (22,325 | ) | (2,489 | ) | (47,169 | ) | ||||||||||||||||
Class R | — | — | (18 | ) | (293 | ) | — | — | (16 | ) | (283 | ) | ||||||||||||||||||||
Class R6 | (1 | ) | (22 | ) | N/A | N/A | — | * | (5 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (26 | ) | (484 | ) | (494 | ) | (8,777 | ) | (61 | ) | (1,283 | ) | (309 | ) | (5,718 | ) | ||||||||||||||||
Net increase (decrease) | 323 | $ | 6,152 | 4,918 | $ | 83,656 | 433 | $ | 9,108 | (14 | ) | $ | (353 | ) | ||||||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy Emerging Markets Equity Fund | Ivy European Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 2,607 | $ | 37,913 | 6,390 | $ | 90,567 | 539 | $ | 15,951 | 1,477 | $ | 40,365 | ||||||||||||||||||||
Class B | 10 | 73 | 38 | 447 | 1 | 41 | 10 | 251 | ||||||||||||||||||||||||
Class C | 115 | 1,336 | 116 | 1,454 | 13 | 360 | 67 | 1,769 | ||||||||||||||||||||||||
Class E | — | — | — | * | 1 | — | — | * | — | — | ||||||||||||||||||||||
Class I | 463 | 6,800 | 934 | 13,846 | 62 | 1,820 | 113 | 3,178 | ||||||||||||||||||||||||
Class R | 9 | 136 | 19 | 283 | — | * | 1 | 11 | 275 | |||||||||||||||||||||||
Class R6 | 412 | 6,964 | N/A | N/A | 67 | 1,984 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 94 | 1,474 | 133 | 1,925 | 221 | 6,613 | 96 | 2,794 | ||||||||||||||||||||||||
Shares issued in connection with merger of Ivy Asset Strategy New Opportunities Fund: | ||||||||||||||||||||||||||||||||
Class A | N/A | N/A | 9,872 | 147,434 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class B | N/A | N/A | 339 | 4,265 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class C | N/A | N/A | 2,518 | 33,024 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class E | N/A | N/A | 7 | 109 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | N/A | N/A | 1,810 | 27,713 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class R | N/A | N/A | 41 | 609 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | N/A | N/A | 429 | 6,524 | N/A | N/A | N/A | N/A |
200 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Ivy Emerging Markets Equity Fund | Ivy European Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | $ | — | 152 | $ | 2,284 | — | $ | — | 16 | $ | 434 | ||||||||||||||||||||
Class B | — | — | — | * | — | * | — | — | — | — | ||||||||||||||||||||||
Class C | — | — | 1 | 14 | — | — | — | — | ||||||||||||||||||||||||
Class E | — | — | — | * | 1 | — | — | — | * | 1 | ||||||||||||||||||||||
Class I | — | — | 89 | 1,380 | — | — | 11 | 302 | ||||||||||||||||||||||||
Class R | — | — | — | — | — | — | — | * | — | * | ||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 2 | 34 | — | — | — | * | 13 | |||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (8,588 | ) | (134,337 | ) | (16,193 | ) | (229,145 | ) | (852 | ) | (25,162 | ) | (2,522 | ) | (67,978 | ) | ||||||||||||||||
Class B | (158 | ) | (2,075 | ) | (317 | ) | (3,723 | ) | (19 | ) | (525 | ) | (66 | ) | (1,639 | ) | ||||||||||||||||
Class C | (602 | ) | (8,247 | ) | (598 | ) | (7,504 | ) | (42 | ) | (1,186 | ) | (73 | ) | (1,864 | ) | ||||||||||||||||
Class E | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Class I | (1,678 | ) | (27,160 | ) | (4,165 | ) | (62,531 | ) | (175 | ) | (5,187 | ) | (576 | ) | (16,600 | ) | ||||||||||||||||
Class R | (2 | ) | (28 | ) | (24 | ) | (357 | ) | — | — | (10 | ) | (267 | ) | ||||||||||||||||||
Class R6 | (3 | ) | (42 | ) | N/A | N/A | (1 | ) | (42 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (114 | ) | (1,819 | ) | (169 | ) | (2,477 | ) | (134 | ) | (3,894 | ) | (70 | ) | (1,992 | ) | ||||||||||||||||
Net increase (decrease) | (7,435 | ) | $ | (119,012 | ) | 1,424 | $ | 26,177 | (320 | ) | $ | (9,226 | ) | (1,516 | ) | $ | (40,958 | ) | ||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy Global Bond Fund | Ivy Global Equity Income Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 4,077 | $ | 41,442 | 9,348 | $ | 93,944 | 4,325 | $ | 58,439 | 11,870 | $ | 149,251 | ||||||||||||||||||||
Class B | 64 | 655 | 186 | 1,880 | 135 | 1,843 | 235 | 2,950 | ||||||||||||||||||||||||
Class C | 715 | 7,279 | 882 | 8,922 | 758 | 10,377 | 1,457 | 18,759 | ||||||||||||||||||||||||
Class I | 1,974 | 20,043 | 3,945 | 39,715 | 2,485 | 34,154 | 3,828 | 49,428 | ||||||||||||||||||||||||
Class R | 14 | 140 | 34 | 348 | — | * | 2 | 22 | 279 | |||||||||||||||||||||||
Class R6 | 25 | 258 | N/A | N/A | 107 | 1,448 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 222 | 2,257 | 511 | 5,135 | 649 | 8,921 | 1,247 | 16,104 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 267 | 2,715 | 564 | 5,653 | 302 | 4,079 | 447 | 5,595 | ||||||||||||||||||||||||
Class B | 5 | 55 | 14 | 137 | 1 | 8 | 1 | 13 | ||||||||||||||||||||||||
Class C | 31 | 314 | 90 | 906 | 5 | 65 | 5 | 61 | ||||||||||||||||||||||||
Class I | 74 | 750 | 162 | 1,627 | 5 | 64 | 6 | 82 | ||||||||||||||||||||||||
Class R | — | * | 2 | — | * | 1 | — | * | — | * | — | — | ||||||||||||||||||||
Class R6 | — | * | — | * | N/A | N/A | 1 | 9 | N/A | N/A | ||||||||||||||||||||||
Class Y | 12 | 117 | 17 | 172 | — | * | 4 | — | * | 1 | ||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (3,483 | ) | (35,402 | ) | (8,360 | ) | (83,852 | ) | (2,321 | ) | (31,562 | ) | (3,457 | ) | (44,273 | ) | ||||||||||||||||
Class B | (61 | ) | (623 | ) | (269 | ) | (2,687 | ) | (130 | ) | (1,781 | ) | (213 | ) | (2,682 | ) | ||||||||||||||||
Class C | (559 | ) | (5,680 | ) | (1,909 | ) | (19,145 | ) | (672 | ) | (9,210 | ) | (1,250 | ) | (16,116 | ) | ||||||||||||||||
Class I | (958 | ) | (9,763 | ) | (4,105 | ) | (41,108 | ) | (1,987 | ) | (27,315 | ) | (3,708 | ) | (47,897 | ) | ||||||||||||||||
Class R | (4 | ) | (41 | ) | (25 | ) | (257 | ) | — | — | (22 | ) | (275 | ) | ||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | * | (1 | ) | N/A | N/A | ||||||||||||||||||||||
Class Y | (59 | ) | (596 | ) | (304 | ) | (3,052 | ) | (632 | ) | (8,686 | ) | (1,228 | ) | (15,857 | ) | ||||||||||||||||
Net increase | 2,356 | $ | 23,922 | 781 | $ | 8,339 | 3,031 | $ | 40,858 | 9,240 | $ | 115,423 |
2014 | SEMIANNUAL REPORT | 201 |
Table of Contents
Ivy Global Income Allocation Fund | ||||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | |||||||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A |
| 7,059 | $ | 112,136 | 16,886 | $ | 253,566 | |||||||||||||||||||||||||
Class B |
| 15 | 240 | 73 | 1,077 | |||||||||||||||||||||||||||
Class C |
| 481 | 7,561 | 621 | 9,166 | |||||||||||||||||||||||||||
Class E |
| 16 | 262 | 24 | 367 | |||||||||||||||||||||||||||
Class I |
| 1,708 | 27,521 | 1,067 | 16,325 | |||||||||||||||||||||||||||
Class R |
| — | * | — | * | 18 | 271 | |||||||||||||||||||||||||
Class R6 |
| 113 | 1,816 | N/A | N/A | |||||||||||||||||||||||||||
Class Y |
| 51 | 811 | 136 | 2,049 | |||||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A |
| 669 | 10,622 | 1,051 | 15,582 | |||||||||||||||||||||||||||
Class B |
| 6 | 89 | 12 | 175 | |||||||||||||||||||||||||||
Class C |
| 29 | 464 | 54 | 794 | |||||||||||||||||||||||||||
Class E |
| 3 | 54 | 6 | 93 | |||||||||||||||||||||||||||
Class I |
| 60 | 958 | 80 | 1,196 | |||||||||||||||||||||||||||
Class R |
| — | — | — | — | |||||||||||||||||||||||||||
Class R6 |
| 1 | 12 | N/A | N/A | |||||||||||||||||||||||||||
Class Y |
| 9 | 139 | 16 | 233 | |||||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A |
| (3,033 | ) | (48,127 | ) | (7,070 | ) | (106,163 | ) | |||||||||||||||||||||||
Class B | (48 | ) | (750 | ) | (132 | ) | (1,960 | ) | ||||||||||||||||||||||||
Class C |
| (187 | ) | (2,929 | ) | (546 | ) | (8,107 | ) | |||||||||||||||||||||||
Class E |
| (6 | ) | (102 | ) | (15 | ) | (229 | ) | |||||||||||||||||||||||
Class I |
| (463 | ) | (7,403 | ) | (684 | ) | (10,279 | ) | |||||||||||||||||||||||
Class R |
| — | — | (17 | ) | (267 | ) | |||||||||||||||||||||||||
Class R6 |
| (3 | ) | (47 | ) | N/A | N/A | |||||||||||||||||||||||||
Class Y |
| (57 | ) | (907 | ) | (67 | ) | (1,008 | ) | |||||||||||||||||||||||
Net increase |
| 6,423 | $ | 102,420 | 11,513 | $ | 172,881 | |||||||||||||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy High Income Fund | Ivy International Core Equity Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 75,532 | $ | 657,773 | 233,788 | $ | 2,032,610 | 13,733 | $ | 271,565 | 22,847 | $ | 403,209 | ||||||||||||||||||||
Class B | 241 | 2,100 | 3,488 | 30,336 | 164 | 2,945 | 91 | 1,456 | ||||||||||||||||||||||||
Class C | 30,567 | 266,218 | 80,935 | 703,799 | 1,423 | 25,499 | 1,411 | 22,922 | ||||||||||||||||||||||||
Class E | 129 | 1,120 | 348 | 3,026 | 30 | 605 | 38 | 681 | ||||||||||||||||||||||||
Class I | 168,992 | 1,468,463 | 307,838 | 2,673,616 | 13,353 | 266,205 | 13,145 | 236,118 | ||||||||||||||||||||||||
Class R | 2,713 | 23,614 | 3,402 | 29,609 | 247 | 4,863 | 249 | 4,568 | ||||||||||||||||||||||||
Class R6 | 486 | 4,215 | N/A | N/A | 234 | 4,695 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 29,096 | 253,259 | 90,452 | 785,950 | 5,680 | 113,959 | 2,124 | 38,191 | ||||||||||||||||||||||||
Shares issued in reinvestment of distributions to shareholders: | ||||||||||||||||||||||||||||||||
Class A | 13,503 | 117,319 | 30,064 | 260,999 | — | — | 934 | 16,834 | ||||||||||||||||||||||||
Class B | 408 | 3,547 | 1,075 | 9,329 | — | — | 9 | 154 | ||||||||||||||||||||||||
Class C | 5,156 | 44,770 | 11,489 | 99,724 | — | — | 81 | 1,323 | ||||||||||||||||||||||||
Class E | 37 | 323 | 83 | 717 | — | — | 4 | 75 | ||||||||||||||||||||||||
Class I | 10,883 | 94,512 | 22,197 | 192,720 | — | — | 766 | 13,882 | ||||||||||||||||||||||||
Class R | 142 | 1,235 | 84 | 728 | — | — | 2 | 30 | ||||||||||||||||||||||||
Class R6 | 3 | 23 | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | 3,453 | 29,993 | 7,456 | 64,736 | — | — | 151 | 2,743 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (163,026 | ) | (1,416,787 | ) | (142,396 | ) | (1,235,658 | ) | (7,334 | ) | (144,853 | ) | (13,179 | ) | (232,015 | ) | ||||||||||||||||
Class B | (1,791 | ) | (15,554 | ) | (3,176 | ) | (27,550 | ) | (109 | ) | (1,947 | ) | (191 | ) | (3,029 | ) | ||||||||||||||||
Class C | (33,693 | ) | (292,270 | ) | (45,002 | ) | (390,707 | ) | (547 | ) | (9,759 | ) | (1,424 | ) | (22,536 | ) | ||||||||||||||||
Class E | (91 | ) | (791 | ) | (199 | ) | (1,728 | ) | (17 | ) | (339 | ) | (20 | ) | (359 | ) | ||||||||||||||||
Class I | (260,282 | ) | (2,252,908 | ) | (152,154 | ) | (1,321,278 | ) | (4,686 | ) | (93,427 | ) | (7,663 | ) | (136,958 | ) | ||||||||||||||||
Class R | (278 | ) | (2,414 | ) | (78 | ) | (680 | ) | (23 | ) | (466 | ) | (17 | ) | (288 | ) | ||||||||||||||||
Class R6 | (3 | ) | (28 | ) | N/A | N/A | (2 | ) | (37 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (48,649 | ) | (421,237 | ) | (64,624 | ) | (560,132 | ) | (855 | ) | (17,035 | ) | (3,484 | ) | (60,187 | ) | ||||||||||||||||
Net increase (decrease) | (166,472 | ) | $ | (1,433,505 | ) | 385,070 | $ | 3,350,166 | 21,291 | $ | 422,473 | 15,874 | $ | 286,814 |
202 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Ivy International Growth Fund | Ivy Large Cap Growth Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 1,579 | $ | 66,079 | 4,165 | $ | 159,327 | 6,432 | $ | 116,740 | 15,807 | $ | 273,530 | ||||||||||||||||||||
Class B | 22 | 815 | 42 | 1,369 | 21 | 334 | 117 | 1,753 | ||||||||||||||||||||||||
Class C | 30 | 1,103 | 113 | 3,940 | 311 | 5,058 | 675 | 10,432 | ||||||||||||||||||||||||
Class E | 3 | 128 | — | — | * | 24 | 441 | 57 | 980 | |||||||||||||||||||||||
Class I | 273 | 11,613 | 549 | 22,161 | 9,441 | 184,933 | 1,736 | 30,510 | ||||||||||||||||||||||||
Class R | 20 | 837 | 12 | 471 | 160 | 2,875 | 311 | 5,252 | ||||||||||||||||||||||||
Class R6 | 57 | 2,451 | N/A | N/A | 236 | 4,659 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 72 | 3,073 | 39 | 1,528 | 467 | 8,761 | 850 | 14,846 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 84 | 3,286 | — | — | 6,486 | 109,684 | ||||||||||||||||||||||||
Class B | — | — | 1 | 18 | — | — | 83 | 1,184 | ||||||||||||||||||||||||
Class C | — | — | 3 | 117 | — | — | 469 | 7,061 | ||||||||||||||||||||||||
Class E | — | — | — | * | 2 | — | — | 43 | 729 | |||||||||||||||||||||||
Class I | — | — | 18 | 709 | — | — | 608 | 10,600 | ||||||||||||||||||||||||
Class R | — | — | — | * | 1 | — | — | 185 | 3,073 | |||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 3 | 132 | — | — | 781 | 13,433 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (829 | ) | (34,785 | ) | (1,550 | ) | �� | (59,317 | ) | (16,887 | ) | (314,057 | ) | (22,957 | ) | (395,542 | ) | |||||||||||||||
Class B | (45 | ) | (1,674 | ) | (37 | ) | (1,274 | ) | (119 | ) | (1,810 | ) | (211 | ) | (3,126 | ) | ||||||||||||||||
Class C | (69 | ) | (2,574 | ) | (112 | ) | (3,798 | ) | (522 | ) | (8,352 | ) | (1,111 | ) | (17,194 | ) | ||||||||||||||||
Class E | (3 | ) | (128 | ) | — | — | (32 | ) | (584 | ) | (41 | ) | (717 | ) | ||||||||||||||||||
Class I | (219 | ) | (9,292 | ) | (318 | ) | (12,211 | ) | (1,300 | ) | (24,870 | ) | (4,559 | ) | (79,360 | ) | ||||||||||||||||
Class R | (6 | ) | (249 | ) | (7 | ) | (275 | ) | (215 | ) | (3,848 | ) | (507 | ) | (8,611 | ) | ||||||||||||||||
Class R6 | — | * | (2 | ) | N/A | N/A | — | * | (8 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (49 | ) | (2,066 | ) | (143 | ) | (5,367 | ) | (658 | ) | (12,177 | ) | (2,148 | ) | (37,737 | ) | ||||||||||||||||
Net increase (decrease) | 836 | $ | 35,329 | 2,862 | $ | 110,819 | (2,641 | ) | $ | (41,905 | ) | (3,326 | ) | $ | (59,220 | ) | ||||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy Limited-Term Bond Fund | Ivy Managed International Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 31,195 | $ | 340,923 | 82,065 | $ | 901,644 | 1,868 | $ | 19,472 | 5,707 | $ | 54,288 | ||||||||||||||||||||
Class B | 88 | 964 | 412 | 4,520 | 4 | 47 | 17 | 158 | ||||||||||||||||||||||||
Class C | 2,972 | 32,432 | 3,956 | 43,684 | 29 | 293 | 43 | 406 | ||||||||||||||||||||||||
Class E | 94 | 1,031 | 120 | 1,316 | — | — | — | * | — | * | ||||||||||||||||||||||
Class I | 2,463 | 26,912 | 4,475 | 49,521 | 32 | 337 | 14 | 134 | ||||||||||||||||||||||||
Class R | 40 | 440 | 24 | 276 | — | — | 28 | 268 | ||||||||||||||||||||||||
Class R6 | 361 | 3,942 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 273 | 2,978 | 857 | 9,458 | 39 | 408 | 31 | 279 | ||||||||||||||||||||||||
Shares issued in connection with merger of Ivy Managed European/Pacific Fund: | ||||||||||||||||||||||||||||||||
Class A | N/A | N/A | N/A | N/A | N/A | N/A | 6,302 | 62,846 | ||||||||||||||||||||||||
Class B | N/A | N/A | N/A | N/A | N/A | N/A | 113 | 1,111 | ||||||||||||||||||||||||
Class C | N/A | N/A | N/A | N/A | N/A | N/A | 124 | 1,224 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | N/A | N/A | 21 | 206 | ||||||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | N/A | N/A | 39 | 388 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | N/A | N/A | 28 | 275 | ||||||||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | N/A | N/A | 70 | 697 |
2014 | SEMIANNUAL REPORT | 203 |
Table of Contents
Ivy Limited-Term Bond Fund | Ivy Managed International Opportunities Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 912 | $ | 9,966 | 2,301 | $ | 25,236 | — | $ | — | 212 | $ | 2,086 | ||||||||||||||||||||
Class B | 4 | 39 | 18 | 194 | — | — | 1 | 11 | ||||||||||||||||||||||||
Class C | 28 | 308 | 152 | 1,664 | — | — | 3 | 30 | ||||||||||||||||||||||||
Class E | 2 | 22 | 6 | 66 | — | — | — | * | 3 | |||||||||||||||||||||||
Class I | �� | 25 | 274 | 89 | 977 | — | — | — | * | 4 | ||||||||||||||||||||||
Class R | — | * | 1 | — | * | — | * | — | — | — | — | |||||||||||||||||||||
Class R6 | 1 | 6 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 14 | 156 | 52 | 569 | — | — | 1 | 9 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (26,633 | ) | (291,055 | ) | (59,860 | ) | (658,323 | ) | (4,087 | ) | (42,628 | ) | (7,583 | ) | (72,143 | ) | ||||||||||||||||
Class B | (395 | ) | (4,323 | ) | (971 | ) | (10,672 | ) | (34 | ) | (350 | ) | (60 | ) | (561 | ) | ||||||||||||||||
Class C | (3,603 | ) | (39,384 | ) | (11,461 | ) | (125,903 | ) | (74 | ) | (761 | ) | (103 | ) | (968 | ) | ||||||||||||||||
Class E | (39 | ) | (423 | ) | (201 | ) | (2,209 | ) | — | — | — | — | ||||||||||||||||||||
Class I | (2,184 | ) | (23,862 | ) | (10,570 | ) | (116,234 | ) | (10 | ) | (102 | ) | (28 | ) | (261 | ) | ||||||||||||||||
Class R | (2 | ) | (20 | ) | (23 | ) | (251 | ) | — | — | (28 | ) | (265 | ) | ||||||||||||||||||
Class R6 | (2 | ) | (22 | ) | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Class Y | (423 | ) | (4,624 | ) | (3,799 | ) | (41,891 | ) | (29 | ) | (304 | ) | (30 | ) | (283 | ) | ||||||||||||||||
Net increase (decrease) | 5,191 | $ | 56,681 | 7,642 | $ | 83,642 | (2,262 | ) | $ | (23,588 | ) | 4,922 | $ | 49,942 | ||||||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy Micro Cap Growth Fund | Ivy Mid Cap Growth Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 1,819 | $ | 44,713 | 4,862 | $ | 119,826 | 6,426 | $ | 150,899 | 22,970 | $ | 505,292 | ||||||||||||||||||||
Class B | 4 | 84 | 57 | 1,371 | 8 | 165 | 247 | 4,649 | ||||||||||||||||||||||||
Class C | 109 | 2,613 | 346 | 8,531 | 1,700 | 36,112 | 5,683 | 114,333 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | 23 | 529 | 58 | 1,262 | ||||||||||||||||||||||||
Class I | 722 | 18,062 | 1,344 | 35,094 | 37,350 | 935,699 | 40,711 | 934,760 | ||||||||||||||||||||||||
Class R | 11 | 278 | 30 | 670 | 581 | 13,505 | 1,996 | 43,369 | ||||||||||||||||||||||||
Class R6 | 118 | 2,878 | N/A | N/A | 171 | 4,338 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 61 | 1,566 | 130 | 3,472 | 4,864 | 117,566 | 11,376 | 259,587 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 362 | 8,860 | — | — | 2,227 | 49,407 | ||||||||||||||||||||||||
Class B | — | — | 6 | 142 | — | — | 44 | 845 | ||||||||||||||||||||||||
Class C | — | — | 21 | 507 | — | — | 353 | 7,123 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | 9 | 189 | ||||||||||||||||||||||||
Class I | — | — | 29 | 731 | — | — | 2,470 | 57,454 | ||||||||||||||||||||||||
Class R | — | — | — | * | — | * | — | — | 117 | 2,573 | ||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 2 | 63 | — | — | 836 | 19,119 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,549 | ) | (37,690 | ) | (1,407 | ) | (34,666 | ) | (31,972 | ) | (763,475 | ) | (16,142 | ) | (358,196 | ) | ||||||||||||||||
Class B | (39 | ) | (914 | ) | (20 | ) | (443 | ) | (157 | ) | (3,181 | ) | (208 | ) | (3,966 | ) | ||||||||||||||||
Class C | (152 | ) | (3,599 | ) | (80 | ) | (1,960 | ) | (1,250 | ) | (26,644 | ) | (2,104 | ) | (42,414 | ) | ||||||||||||||||
Class E | N/A | N/A | N/A | N/A | (18 | ) | (406 | ) | (17 | ) | (379 | ) | ||||||||||||||||||||
Class I | (1,119 | ) | (27,697 | ) | (320 | ) | (8,412 | ) | (11,395 | ) | (281,558 | ) | (20,030 | ) | (468,432 | ) | ||||||||||||||||
Class R | — | * | (2 | ) | (29 | ) | (648 | ) | (1,023 | ) | (23,774 | ) | (1,507 | ) | (32,445 | ) | ||||||||||||||||
Class R6 | (10 | ) | (246 | ) | N/A | N/A | — | * | (5 | ) | N/A | N/A | ||||||||||||||||||||
Class Y | (66 | ) | (1,676 | ) | (60 | ) | (1,570 | ) | (4,832 | ) | (117,311 | ) | (8,515 | ) | (194,702 | ) | ||||||||||||||||
Net increase (decrease) | (91 | ) | $ | (1,630 | ) | 5,273 | $ | 131,568 | 476 | $ | 42,459 | 40,574 | $ | 899,428 |
204 | SEMIANNUAL REPORT | 2014 |
Table of Contents
Ivy Money Market Fund | Ivy Municipal Bond Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 46,199 | $ | 46,199 | 213,404 | $ | 213,404 | 2,473 | $ | 29,405 | 4,023 | $ | 47,420 | ||||||||||||||||||||
Class B | 1,002 | 1,002 | 4,830 | 4,830 | 5 | 65 | 34 | 398 | ||||||||||||||||||||||||
Class C | 28,209 | 28,209 | 61,484 | 61,484 | 182 | 2,160 | 339 | 3,976 | ||||||||||||||||||||||||
Class E | 973 | 973 | 3,445 | 3,445 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | 139 | 1,659 | 120 | 1,395 | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | 11 | 126 | 2 | 19 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 13 | 13 | 28 | 28 | 129 | 1,536 | 272 | 3,188 | ||||||||||||||||||||||||
Class B | — | * | — | * | 1 | 1 | 1 | 17 | 3 | 42 | ||||||||||||||||||||||
Class C | 3 | 3 | 7 | 7 | 15 | 177 | 34 | 395 | ||||||||||||||||||||||||
Class E | 1 | 1 | 1 | 1 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | 2 | 23 | 3 | 34 | ||||||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | — | * | 2 | — | * | 5 | ||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (61,346 | ) | (61,346 | ) | (204,766 | ) | (204,766 | ) | (1,380 | ) | (16,388 | ) | (5,623 | ) | (65,756 | ) | ||||||||||||||||
Class B | (2,948 | ) | (2,948 | ) | (5,998 | ) | (5,998 | ) | (17 | ) | (204 | ) | (118 | ) | (1,390 | ) | ||||||||||||||||
Class C | (25,255 | ) | (25,255 | ) | (61,957 | ) | (61,957 | ) | (176 | ) | (2,084 | ) | (1,123 | ) | (13,163 | ) | ||||||||||||||||
Class E | (1,259 | ) | (1,259 | ) | (2,882 | ) | (2,882 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class I | N/A | N/A | N/A | N/A | (30 | ) | (357 | ) | (119 | ) | (1,387 | ) | ||||||||||||||||||||
Class Y | N/A | N/A | N/A | N/A | — | * | — | * | (16 | ) | (185 | ) | ||||||||||||||||||||
Net increase (decrease) | (14,408 | ) | $ | (14,408 | ) | 7,597 | $ | 7,597 | 1,354 | $ | 16,137 | (2,169 | ) | $ | (25,009 | ) | ||||||||||||||||
* Not shown due to rounding.
| ||||||||||||||||||||||||||||||||
Ivy Municipal High Income Fund | Ivy Small Cap Growth Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 12,270 | $ | 63,303 | 25,901 | $ | 131,877 | 2,705 | $ | 47,987 | 8,269 | $ | 147,571 | ||||||||||||||||||||
Class B | 128 | 661 | 272 | 1,410 | 14 | 209 | 162 | 2,414 | ||||||||||||||||||||||||
Class C | 5,029 | 25,895 | 9,358 | 47,679 | 424 | 6,622 | 1,667 | 26,456 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | 28 | 499 | 71 | 1,269 | ||||||||||||||||||||||||
Class I | 31,020 | 159,667 | 73,080 | 369,430 | 1,863 | 39,773 | 3,707 | 78,702 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | 471 | 8,309 | 1,345 | 23,825 | ||||||||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | 292 | 6,266 | N/A | N/A | ||||||||||||||||||||||||
Class Y | 3,507 | 18,233 | 1,605 | 8,199 | 1,104 | 22,744 | 3,516 | 72,265 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | 1,454 | 7,507 | 3,525 | 17,844 | — | — | 1,797 | 31,046 | ||||||||||||||||||||||||
Class B | 31 | 160 | 72 | 365 | — | — | 82 | 1,183 | ||||||||||||||||||||||||
Class C | 586 | 3,027 | 1,442 | 7,292 | — | — | 1,217 | 18,622 | ||||||||||||||||||||||||
Class E | N/A | N/A | N/A | N/A | — | — | 22 | 372 | ||||||||||||||||||||||||
Class I | 1,972 | 10,182 | 4,137 | 20,948 | — | — | 708 | 14,660 | ||||||||||||||||||||||||
Class R | N/A | N/A | N/A | N/A | — | — | 146 | 2,517 | ||||||||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||||||||
Class Y | 71 | 367 | 210 | 1,068 | — | — | 964 | 19,269 | ||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (18,424 | ) | (94,813 | ) | (56,121 | ) | (285,021 | ) | (4,820 | ) | (85,748 | ) | (5,417 | ) | (96,732 | ) | ||||||||||||||||
Class B | (187 | ) | (961 | ) | (914 | ) | (4,634 | ) | (107 | ) | (1,576 | ) | (188 | ) | (2,820 | ) | ||||||||||||||||
Class C | (5,587 | ) | (28,687 | ) | (26,738 | ) | (135,246 | ) | (1,656 | ) | (25,968 | ) | (2,015 | ) | (32,023 | ) | ||||||||||||||||
Class E | N/A | N/A | N/A | N/A | (14 | ) | (242 | ) | (21 | ) | (381 | ) | ||||||||||||||||||||
Class I | (27,764 | ) | (143,052 | ) | (97,523 | ) | (494,583 | ) | (2,247 | ) | (47,950 | ) | (2,454 | ) | (52,437 | ) | ||||||||||||||||
Class R | N/A | N/A | N/A | N/A | (396 | ) | (6,933 | ) | (538 | ) | (9,600 | ) | ||||||||||||||||||||
Class R6 | N/A | N/A | N/A | N/A | (1 | ) | (22 | ) | N/A | N/A | ||||||||||||||||||||||
Class Y | (697 | ) | (3,600 | ) | (5,190 | ) | (26,189 | ) | (1,977 | ) | (40,521 | ) | (3,373 | ) | (69,842 | ) | ||||||||||||||||
Net increase (decrease) | 3,409 | $ | 17,889 | (66,884 | ) | $ | (339,561 | ) | (4,317 | ) | $ | (76,551 | ) | 9,667 | $ | 176,336 |
2014 | SEMIANNUAL REPORT | 205 |
Table of Contents
Ivy Small Cap Value Fund | Ivy Tax-Managed Equity Fund | |||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||
Shares | Value | Shares | Value | Shares | Value | Shares | Value | |||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 1,454 | $ | 26,680 | 3,457 | $ | 61,992 | 600 | $ | 10,610 | 1,285 | $ | 19,995 | ||||||||||||||||||||
Class B | 5 | 76 | 27 | 434 | 18 | 344 | 94 | 1,520 | ||||||||||||||||||||||||
Class C | 102 | 1,709 | 296 | 4,873 | 15 | 262 | 72 | 1,163 | ||||||||||||||||||||||||
Class E | 8 | 144 | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | 744 | 14,525 | 603 | 11,485 | 30 | 535 | 127 | 2,103 | ||||||||||||||||||||||||
Class R | 40 | 727 | 64 | 1,156 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class R6 | 158 | 3,118 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | 61 | 1,162 | 259 | 4,789 | 4 | 75 | 22 | 381 | ||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 1,685 | 28,472 | — | — | 63 | 1,025 | ||||||||||||||||||||||||
Class B | — | — | 31 | 467 | — | — | — | * | 3 | |||||||||||||||||||||||
Class C | — | — | 127 | 1,974 | — | — | 2 | 25 | ||||||||||||||||||||||||
Class E | — | — | 1 | 16 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class I | — | — | 143 | 2,533 | — | — | 1 | 9 | ||||||||||||||||||||||||
Class R | — | — | 2 | 34 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Class Y | — | — | 42 | 728 | — | — | — | * | 9 | |||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (2,035 | ) | (37,370 | ) | (4,878 | ) | (87,509 | ) | (296 | ) | (5,242 | ) | (739 | ) | (11,619 | ) | ||||||||||||||||
Class B | (32 | ) | (509 | ) | (63 | ) | (1,003 | ) | (2 | ) | (35 | ) | (93 | ) | (1,496 | ) | ||||||||||||||||
Class C | (144 | ) | (2,413 | ) | (249 | ) | (4,086 | ) | (9 | ) | (159 | ) | (40 | ) | (675 | ) | ||||||||||||||||
Class E | (7 | ) | (144 | ) | — | — | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Class I | (295 | ) | (5,770 | ) | (504 | ) | (9,638 | ) | (6 | ) | (97 | ) | (119 | ) | (1,975 | ) | ||||||||||||||||
Class R | (6 | ) | (104 | ) | (19 | ) | (344 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||
Class R6 | (1 | ) | (16 | ) | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
Class Y | (154 | ) | (2,946 | ) | (162 | ) | (3,001 | ) | — | * | (5 | ) | (27 | ) | (470 | ) | ||||||||||||||||
Net increase (decrease) | (102 | ) | $ | (1,131 | ) | 862 | $ | 13,372 | 354 | $ | 6,288 | 648 | $ | 9,998 | ||||||||||||||||||
* Not shown due to rounding.
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Ivy Value Fund | ||||||||||||||||||||||||||||||||
Six months ended 9-30-14 | Year ended 3-31-14 | |||||||||||||||||||||||||||||||
Shares | Value | Shares | Value | |||||||||||||||||||||||||||||
Shares issued from sale of shares: | ||||||||||||||||||||||||||||||||
Class A | 2,548 | $ | 62,955 | 5,127 | $ | 113,237 | ||||||||||||||||||||||||||
Class B | 44 | 1,047 | 54 | 1,123 | ||||||||||||||||||||||||||||
Class C | 210 | 5,132 | 233 | 4,956 | ||||||||||||||||||||||||||||
Class E | 6 | 158 | — | — | ||||||||||||||||||||||||||||
Class I | 164 | 4,129 | 104 | 2,318 | ||||||||||||||||||||||||||||
Class R | — | * | 9 | 15 | 310 | |||||||||||||||||||||||||||
Class R6 | 10 | 260 | N/A | N/A | ||||||||||||||||||||||||||||
Class Y | 32 | 830 | 28 | 626 | ||||||||||||||||||||||||||||
Shares issued in reinvestment of | ||||||||||||||||||||||||||||||||
Class A | — | — | 408 | 9,054 | ||||||||||||||||||||||||||||
Class B | — | — | 10 | 203 | ||||||||||||||||||||||||||||
Class C | — | — | 22 | 471 | ||||||||||||||||||||||||||||
Class E | — | — | — | * | 6 | |||||||||||||||||||||||||||
Class I | — | — | 7 | 162 | ||||||||||||||||||||||||||||
Class R | — | — | — | — | ||||||||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | ||||||||||||||||||||||||||||
Class Y | — | — | 1 | 17 | ||||||||||||||||||||||||||||
Shares redeemed: | ||||||||||||||||||||||||||||||||
Class A | (1,947 | ) | (48,078 | ) | (2,756 | ) | (60,845 | ) | ||||||||||||||||||||||||
Class B | (68 | ) | (1,566 | ) | (99 | ) | (2,077 | ) | ||||||||||||||||||||||||
Class C | (96 | ) | (2,302 | ) | (112 | ) | (2,394 | ) | ||||||||||||||||||||||||
Class E | (6 | ) | (158 | ) | — | — | ||||||||||||||||||||||||||
Class I | (24 | ) | (592 | ) | (81 | ) | (1,807 | ) | ||||||||||||||||||||||||
Class R | — | * | (4 | ) | (14 | ) | (292 | ) | ||||||||||||||||||||||||
Class R6 | — | — | N/A | N/A | ||||||||||||||||||||||||||||
Class Y | (15 | ) | (381 | ) | (45 | ) | (994 | ) | ||||||||||||||||||||||||
Net increase | 858 | $ | 21,439 | 2,902 | $ | 64,074 |
*Not | shown due to rounding. |
206 | SEMIANNUAL REPORT | 2014 |
Table of Contents
12. | 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, 2014, Ivy High Income Fund had outstanding bridge loan commitments of $234,633. In connection with these commitments, the Fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income is included in interest income on the Statement of Operations.
13. | PURCHASE COMMITMENTS ($ 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, 2014 was $3,922. Cash and cash equivalents of $3,922 held by the Ivy High Income Fund have been segregated to meet these purchase commitments.
14. | FEDERAL INCOME TAX MATTERS ($ amounts in thousands) |
For Federal income tax purposes, cost of investments owned at September 30, 2014 and the related unrealized appreciation (depreciation) were as follows:
Fund | Cost of Investments | Gross Appreciation | Gross Depreciation | Net Unrealized Appreciation | ||||||||||||
Ivy Bond Fund | $ | 686,347 | $ | 15,036 | $ | 8,965 | $ | 6,071 | ||||||||
Ivy Core Equity Fund | 861,666 | 195,077 | 8,990 | 186,087 | ||||||||||||
Ivy Cundill Global Value Fund | 322,563 | 60,091 | 11,745 | 48,346 | ||||||||||||
Ivy Dividend Opportunities Fund | 298,535 | 109,581 | 2,759 | 106,822 | ||||||||||||
Ivy Emerging Markets Equity Fund | 544,110 | 117,616 | 18,260 | 99,356 | ||||||||||||
Ivy European Opportunities Fund | 175,762 | 18,616 | 6,715 | 11,901 | ||||||||||||
Ivy Global Bond Fund | 314,886 | 9,556 | 9,372 | 184 | ||||||||||||
Ivy Global Equity Income Fund | 231,448 | 14,475 | 5,484 | 8,991 | ||||||||||||
Ivy Global Income Allocation Fund | 651,062 | 33,630 | 23,029 | 10,601 | ||||||||||||
Ivy High Income Fund | 9,262,477 | 197,987 | 148,478 | 49,509 | ||||||||||||
Ivy International Core Equity Fund | 2,409,764 | 219,576 | 94,458 | 125,118 | ||||||||||||
Ivy International Growth Fund | 433,944 | 56,774 | 9,347 | 47,427 | ||||||||||||
Ivy Large Cap Growth Fund | 1,006,815 | 520,516 | 7,509 | 513,007 | ||||||||||||
Ivy Limited-Term Bond Fund | 1,701,339 | 13,867 | 6,713 | 7,154 | ||||||||||||
Ivy Managed International Opportunities Fund | 196,145 | 49,540 | — | 49,540 | ||||||||||||
Ivy Micro Cap Growth Fund | 208,401 | 36,893 | 19,462 | 17,431 | ||||||||||||
Ivy Mid Cap Growth Fund | 4,176,292 | 800,097 | 110,775 | 689,322 | ||||||||||||
Ivy Money Market Fund | 169,141 | — | — | — | ||||||||||||
Ivy Municipal Bond Fund | 146,709 | 12,050 | 2,218 | 9,832 | ||||||||||||
Ivy Municipal High Income Fund | 1,205,710 | 76,970 | 44,803 | 32,167 | ||||||||||||
Ivy Small Cap Growth Fund | 805,876 | 284,611 | 36,785 | 247,826 | ||||||||||||
Ivy Small Cap Value Fund | 242,654 | 58,170 | 5,611 | 52,559 | ||||||||||||
Ivy Tax-Managed Equity Fund | 39,427 | 14,532 | 211 | 14,321 | ||||||||||||
Ivy Value Fund | 247,338 | 68,369 | 1,271 | 67,098 |
For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2014 and the post-October and late-year ordinary activity 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 | $ | 16,766 | $ | 257 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Ivy Core Equity Fund | 13,627 | — | 32,924 | 23,477 | — | 331 | — | |||||||||||||||||||||
Ivy Cundill Global Value Fund | 233 | — | — | — | — | — | 219 | |||||||||||||||||||||
Ivy Dividend Opportunities Fund | 2,829 | 695 | 5,473 | 10,343 | — | — | — | |||||||||||||||||||||
Ivy Emerging Markets Equity Fund | 3,763 | 1,937 | — | — | — | — | — | |||||||||||||||||||||
Ivy European Opportunities Fund | 766 | 2,029 | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Bond Fund | 9,394 | 484 | 431 | — | — | 726 | — | |||||||||||||||||||||
Ivy Global Equity Income Fund | 6,771 | 1,783 | 268 | 1,637 | — | — | — | |||||||||||||||||||||
Ivy Global Income Allocation Fund | 18,777 | 4,101 | — | — | — | — | — | |||||||||||||||||||||
Ivy High Income Fund | 699,870 | 30,765 | 87,464 | 21,686 | — | — | — | |||||||||||||||||||||
Ivy International Core Equity Fund | 39,061 | 42,485 | — | 55,893 | — | — | — | |||||||||||||||||||||
Ivy International Growth Fund | 4,458 | — | — | — | — | — | 961 | |||||||||||||||||||||
Ivy Large Cap Growth Fund | 396 | — | 155,363 | 56,924 | — | — | 658 |
2014 | SEMIANNUAL REPORT | 207 |
Table of Contents
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 Limited-Term Bond Fund | $ | 21,175 | $ | 358 | $ | 9,541 | $ | — | $ | — | $ | 3,889 | $ | — | ||||||||||||||
Ivy Managed International Opportunities Fund | 2,175 | — | — | — | — | — | 197 | |||||||||||||||||||||
Ivy Micro Cap Growth Fund | 76 | 3,852 | 10,409 | 7,648 | — | — | — | |||||||||||||||||||||
Ivy Mid Cap Growth Fund | 59,552 | 43,889 | 93,116 | 279,940 | — | — | — | |||||||||||||||||||||
Ivy Money Market Fund | 42 | 27 | — | — | — | — | — | |||||||||||||||||||||
Ivy Municipal Bond Fund | 4,149 | 61 | — | — | — | 254 | — | |||||||||||||||||||||
Ivy Municipal High Income Fund | 62,511 | 675 | 1,122 | — | — | 2,802 | — | |||||||||||||||||||||
Ivy Small Cap Growth Fund | 3,618 | — | 90,958 | 48,139 | — | 3,209 | — | |||||||||||||||||||||
Ivy Small Cap Value Fund | 9,794 | 3,350 | 26,226 | 10,288 | — | — | — | |||||||||||||||||||||
Ivy Tax-Managed Equity Fund | 106 | — | 1,056 | 316 | — | 77 | 35 | |||||||||||||||||||||
Ivy Value Fund | 2,593 | 2,567 | 7,652 | 6,011 | — | — | — |
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, 2014 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 was 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 regulated investment company during the year ended March 31, 2014:
Pre-Enactment | Post-Enactment | |||||||||||||||||||||||||||
Fund | 2015 | 2016 | 2017 | 2018 | 2019 | Short- Term Capital Loss Carryover | Long- Term Capital Loss Carryover | |||||||||||||||||||||
Ivy Bond Fund | $ | 902 | $ | 6,969 | $ | 11,636 | $ | — | $ | — | $ | 3,886 | $ | 3,519 | ||||||||||||||
Ivy Core Equity Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Cundill Global Value Fund | — | — | — | 13,664 | — | — | — | |||||||||||||||||||||
Ivy Dividend Opportunities Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Emerging Markets Equity Fund | — | — | — | 606 | — | 92,425 | 23,028 | |||||||||||||||||||||
Ivy European Opportunities Fund | — | — | 4,481 | 132,101 | — | — | — | |||||||||||||||||||||
Ivy Global Bond Fund | — | — | — | — | — | 77 | 2,120 | |||||||||||||||||||||
Ivy Global Equity Income Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Global Income Allocation Fund | — | — | — | 34,018 | — | 5,903 | 2,599 | |||||||||||||||||||||
Ivy High Income Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy International Core Equity Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy International Growth Fund | — | — | — | 5,957 | — | — | — | |||||||||||||||||||||
Ivy Large Cap Growth Fund | — | — | 63,146 | — | — | — | — | |||||||||||||||||||||
Ivy Limited-Term Bond Fund | — | — | — | — | — | 9,472 | 335 | |||||||||||||||||||||
Ivy Managed International Opportunities Fund | — | — | 15,270 | 9,587 | 10,440 | — | 9,187 | |||||||||||||||||||||
Ivy Micro Cap Growth Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Mid Cap Growth Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Money Market Fund | — | — | — | — | 36 | — | — | |||||||||||||||||||||
Ivy Municipal Bond Fund | — | 34 | 101 | 84 | 146 | 174 | — | |||||||||||||||||||||
Ivy Municipal High Income Fund | — | — | — | — | — | 6,971 | 2,833 | |||||||||||||||||||||
Ivy Small Cap Growth Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Small Cap Value Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
Ivy Tax-Managed Equity Fund | — | — | — | — | — | — | — | |||||||||||||||||||||
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 $6,611 for the period ending March 31, 2015 and $4,298 for each period ending from March 31, 2016 through 2018 plus any unused limitations from prior years.
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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, 2015 through 2017 plus any unused limitations from prior years.
Ivy Asset Strategy New Opportunities Fund was merged into Ivy Emerging Markets Equity Fund as of March 17, 2014. At the time of the merger, Ivy Asset Strategy New Opportunities Fund had capital loss carryovers available to offset future gains of the Ivy Emerging Markets Equity Fund. These carryovers are annually limited to $7,827 plus any unused limitations from prior years.
Ivy Managed European/Pacific Fund was merged into Ivy Managed International Opportunities Fund as of March 17, 2014. At the time of the merger, Ivy Managed European/Pacific Fund had capital loss carryovers available to offset future gains of the Ivy Managed International Opportunities Fund. These carryovers are annually limited to $2,377 plus any unused limitations from prior years.
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RENEWAL OF INVESTMENT MANAGEMENT AGREEMENTS
Ivy Funds
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 11th and 12th, 2014, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (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, LLC (with respect to Ivy Micro Cap Growth Fund); |
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, all as outlined in a memorandum it had provided to the Board prior to the meeting, 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 Independent Trustees also considered the written responses and materials produced by IICO and each Subadviser in response to a 15(c) due diligence request list submitted by the Independent Trustees’ legal counsel prior to the meeting, as well as materials produced in response to a follow-up request list sent to IICO by independent legal counsel on behalf of the Independent Trustees. 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. (“Lipper”) 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 and discussed these materials during a telephonic meeting in July. 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 11th and at the August 12th 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 due diligence requests pursuant to Section 15(c) of the 1940 Act submitted on its behalf by independent legal counsel.
The Board likewise considered the knowledge it had received from its regular meetings, 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 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. In that regard, the Board discussed the transfer agency/shareholder servicing fees that Waddell & Reed Services Company provides the Funds. The Board noted that IICO had represented to the Board that IICO will update its analysis of the Funds’ shareholder servicing costs once up-to-date industry information is available, and will provide the results of that analysis to the Board. The Board considered the benefits that accrue to each service provider organization from its respective relationship with the Funds, including the fact that a variety of services are provided by affiliates of IICO, including distribution, administrative and Fund accounting services, and, as discussed above, shareholder servicing. After full consideration of these and other factors, the Board concluded that none of IICO, any Subadviser or any of their affiliates receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the 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. The Independent Trustees previously had discussed the asset growth of certain Funds with their independent fee consultant and independent legal counsel at the telephonic meeting in July 2014. The Independent Trustees then extensively considered IICO’s response to a supplemental request submitted by independent legal counsel on their behalf regarding the breakpoint schedules of certain Funds. After additional discussion with IICO on the Funds’ breakpoint schedules, IICO agreed to conduct a comprehensive study on those schedules and report back to the Board as soon as practicable. The Board nevertheless considered the fact that as the Funds’ assets have grown, the expenses of the Funds generally have fallen.
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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 quartile ranking for short- and long-term time periods and each Fund’s performance against its peers. The Board also examined the performance of each Fund against its respective Lipper index for the same periods. After extensively reviewing all of the performance information provided, the Board concluded that the Funds’ performance in each asset class was acceptable. Although the performance of some of the focus Funds identified by the independent fee consultant lagged that of their peers or respective Lipper index, the Board recognized that IICO, or the applicable Subadviser, had taken, or was taking, steps to address that underperformance, and determined to continue to monitor closely the performance of those Funds.
The Board also considered the expenses and 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.
Approval of Investment Subadvisory Agreement for Ivy Cundill Global Value Fund
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on November 12, 2013, the Board, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved a new investment subadvisory agreement (the “Subadvisory Agreement”) between Ivy Investment Management Company (“IICO”) and Mackenzie Financial Corporation (“Mackenzie”), on behalf of the Ivy Cundill Global Value Fund (the “Fund”).
The Independent Trustees were assisted in their consideration of the Subadvisory Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. The Board discussed that due to a change in control of Mackenzie, the prior subadvisory agreement that was renewed by the Board, including a majority of the Independent Trustees, at a meeting held on August 13, 2013, automatically was terminated pursuant to the 1940 Act. The Board noted that it had approved an interim subadvisory agreement between IICO and Mackenzie at a meeting held on October 22, 2013.
The Board considered that it had reviewed the prior Subadvisory Agreement between IICO and Mackenzie at its August Board meeting during which it authorized its continuation for another year. The Board discussed that it had reviewed and discussed extensively the information provided by Mackenzie on, among other things: the nature, extent and quality of services Mackenzie provides the Fund; the fees charged by Mackenzie for subadvisory services to the Fund; Mackenzie’s performance in advising the Fund; whether there are economies of scale with respect to the management of the Fund; and the anticipated profits to be realized by Mackenzie in connection with the operation of the Fund. The Board also considered IICO’s opinion that the change of control of Mackenzie’s parent is not expected to impact or interfere with the management or the business of Mackenzie with respect to its subadvisory services to the Fund. The Board also considered that the terms and conditions of the Subadvisory Agreement were identical in all material respects to the terms and conditions of the prior subadvisory agreement that it had approved, and that the factors upon which it had based its conclusion had not changed.
Approval of Investment Subadvisory Agreement for Ivy Micro Cap Growth Fund
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on February 26, 2013, the trustees, including all of the trustees who are not “interested persons” (the “Independent Trustees”), as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved an interim subadvisory agreement between Ivy Investment Management Company (“IICO”) and Wall Street Associates, LLC (“WSA”), on behalf of the Ivy Micro Cap Growth Fund (the “Fund”), and also approved a new subadvisory agreement with identical terms in all material respects (together with the interim subadvisory agreement, the “Subadvisory Agreement”).
The Independent Trustees were assisted in their consideration of the Subadvisory Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. The Board noted that due to a change in control of WSA, the subadvisory agreement that was renewed by the Board, including a majority of the Independent Trustees, at a meeting held on August 13, 2013, automatically would be terminated pursuant to the 1940 Act.
The Board discussed that, at its August meeting, it had considered and approved the renewal of the prior Subadvisory Agreement between WSA and IICO, and had examined, among other things: the nature, extent and quality of services WSA provides the Fund; any benefits derived by WSA from its relationship to the Fund; the fees charged by WSA for subadvisory services to the Fund; WSA’s performance in advising the Fund; whether there are economies of scale with respect to the management of the Fund; and the anticipated profits to be realized by WSA in connection with the operation of the Fund and whether the amount of profit is a fair entrepreneurial profit for the management of the Fund. The Board also considered that the terms and conditions of the Subadvisory Agreement that shareholders would be asked to approve were identical in all material respects to the terms and conditions of the prior subadvisory agreement.
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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.
Ivy Funds
On July 2, 2014, a special shareholder meeting (“Meeting”) for Ivy Micro Cap Growth Fund was held at the offices of Waddell & Reed Financial, Inc., 6300 Lamar Avenue, Overland Park, Kansas, 66202. The Meeting was held for the following purpose (and with the following results):
Proposal No. 1: To approve a new investment subadvisory agreement between Wall Street Associates, LLC, the Fund’s subadviser, and Ivy Investment Management Company (“IICO”), the Fund’s investment manager.
FUND NAME | FOR | AGAINST | ABSTAIN | TOTAL | ||||||||||||
Ivy Micro Cap Growth Fund | 5,456,177 | 259,162 | 306,914 | 6,022,253 |
Proposal No. 2: To approve the use of a “manager of managers” structure, whereby IICO will be able to hire and replace subadvisers for the fund without shareholder approval.
FUND NAME | FOR | AGAINST | ABSTAIN | TOTAL | ||||||||||||
Ivy Micro Cap Growth Fund | 4,766,706 | 884,511 | 371,036 | 6,022,253 |
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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 Emerging Markets Equity Fund
Ivy Emerging Markets Equity Local Currency Debt 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 International Opportunities Fund
Specialty Funds
Ivy Asset Strategy 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.
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SEMIANN-IVYFUNDS (9-14)
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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 |
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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.
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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 8, 2014
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 8, 2014
By | /s/ Joseph W. Kauten | |
Joseph W. Kauten, Vice President and Principal Financial Officer |
Date: December 8, 2014