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)
Wendy J. Hills
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, 2016
ITEM 1. REPORTS TO STOCKHOLDERS.
| | |
 | | Semiannual Report SEPTEMBER 30, 2016 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ticker | |
| | | Class A | | | Class B | | | Class C | | | Class E | | | Class I | | | Class R | | | Class R6 | | | Class Y | |
IVY FUNDS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Ivy Asset Strategy Fund | | | WASAX | | | | WASBX | | | | WASCX | | | | IASEX | | | | IVAEX | | | | IASRX | | | | IASTX | | | | WASYX | |
| | | | | | | | |
| Ivy Balanced Fund | | | IBNAX | | | | IBNBX | | | | IBNCX | | | | IVYEX | | | | IYBIX | | | | IYBFX | | | | IBARX | | | | IBNYX | |
| | | | | | | | |
| Ivy Energy Fund | | | IEYAX | | | | IEYBX | | | | IEYCX | | | | IVEEX | | | | IVEIX | | | | IYEFX | | | | IENRX | | | | IEYYX | |
| | | | | | | | |
| Ivy Global Natural Resources Fund | | | IGNAX | | | | IGNBX | | | | IGNCX | | | | IGNEX | | | | IGNIX | | | | IGNRX | | | | INRSX | | | | IGNYX | |
| | | | | | | | |
| Ivy LaSalle Global Real Estate Fund | | | IREAX | | | | IREBX | | | | IRECX | | | | | | | | IRESX | | | | IRERX | | | | | | | | IREYX | |
| | | | | | | | |
| Ivy LaSalle Global Risk-Managed Real Estate Fund | | | IVRAX | | | | IVRBX | | | | IVRCX | | | | | | | | IVIRX | | | | IVRRX | | | | | | | | IVRYX | |
| | | | | | | | |
| Ivy Real Estate Securities Fund | | | IRSAX | | | | IRSBX | | | | IRSCX | | | | IREEX | | | | IREIX | | | | IRSRX | | | | IRSEX | | | | IRSYX | |
| | | | | | | | |
| Ivy Science and Technology Fund | | | WSTAX | | | | WSTBX | | | | WSTCX | | | | ISTEX | | | | ISTIX | | | | WSTRX | | | | ISTNX | | | | WSTYX | |
IVY INVESTMENTSSM refers to the financial services offered by Ivy Distributors, Inc., a FINRA member broker dealer and the distributor of IVY FUNDS® mutual funds, and those financial services offered by its affiliates.
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
| | |
| PRESIDENT’S LETTER | | IVY FUNDS |
| | |
| | SEPTEMBER 30, 2016 (UNAUDITED) |
| Philip J. Sanders, CFA | | |
Dear Shareholder,
Over the six months since our last report to you, the financial markets held fairly steady, despite intermittent bouts of volatility. The S&P 500 Index rebounded from turbulence created by the United Kingdom’s vote in June to leave the European Union and, in July, reached a record high, though it has dropped slightly since then.
Concerns about global economic growth, the direction of interest rates, fluctuation in oil prices and the outcome of the U.S. presidential election are all contributors to concerns about the direction of markets as we look toward the end of 2016.
While financial markets dislike the uncertainty brought on by the above issues, domestic equities have performed fairly well, and we expect moderate positive returns for 2016.
Across the six-month fiscal period, the gradual U.S. economic expansion has continued. The U.S. remains a relative bright spot in the world, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Demand for cars, homes and furnishings has been healthy.
When interest rates in the U.S. will rise, and by how much, remains an area of focus, with many anticipating the Federal Reserve will raise rates in December of this year. Over the last 12 months, global economic concerns have altered the Fed’s timetable on further increases. We believe that job growth and inflation will be the most important determinants in the direction of long-term central bank policy.
Overseas, the European Central Bank and Bank of Japan are actively engaged in aggressive easing. As yet, these steps are not leading to any notable strengthening of economic activity.
China, in the face of economic softening, has turned toward more aggressive stimulus. We believe economic growth in China is likely to hold steady, which should support broader global growth.
While challenges remain, we do see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.
Economic Snapshot
| | | | | | | | |
| | | 9/30/16 | | | 3/31/16 | |
S&P 500 Index | | | 2,168.27 | | | | 2,059.74 | |
MSCI EAFE Index | | | 1,701.69 | | | | 1,652.04 | |
10-Year Treasury Yield | | | 1.60% | | | | 1.78% | |
U.S. unemployment rate | | | 5.0% | | | | 5.0% | |
30-year fixed mortgage rate | | | 3.42% | | | | 3.71% | |
Oil price per barrel | | $ | 48.24 | | | $ | 38.34 | |
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.
Respectfully,
Philip J. Sanders, CFA
President
The opinions expressed in this letter are those of the President of Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, exchange fees and account 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, 2016.
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. Fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Savings Incentive Match Plan for Employees (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. 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 full week of September of each year, the account will be assessed an account fee of $20. 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), exchange fees or account 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) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Asset Strategy Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,009.10 | | | $ | 5.42 | | | $ | 1,000 | | | $ | 1,019.66 | | | $ | 5.45 | | | | 1.09% | |
Class B** | | $ | 1,000 | | | $ | 1,006.10 | | | $ | 8.83 | | | $ | 1,000 | | | $ | 1,016.22 | | | $ | 8.87 | | | | 1.77% | |
Class C | | $ | 1,000 | | | $ | 1,005.50 | | | $ | 9.02 | | | $ | 1,000 | | | $ | 1,016.10 | | | $ | 9.07 | | | | 1.80% | |
Class E | | $ | 1,000 | | | $ | 1,009.60 | | | $ | 5.02 | | | $ | 1,000 | | | $ | 1,020.08 | | | $ | 5.05 | | | | 1.00% | |
Class I | | $ | 1,000 | | | $ | 1,010.40 | | | $ | 4.12 | | | $ | 1,000 | | | $ | 1,020.96 | | | $ | 4.14 | | | | 0.83% | |
Class R | | $ | 1,000 | | | $ | 1,007.80 | | | $ | 6.93 | | | $ | 1,000 | | | $ | 1,018.14 | | | $ | 6.96 | | | | 1.39% | |
Class R6 | | $ | 1,000 | | | $ | 1,011.40 | | | $ | 3.22 | | | $ | 1,000 | | | $ | 1,021.89 | | | $ | 3.24 | | | | 0.65% | |
Class Y | | $ | 1,000 | | | $ | 1,009.10 | | | $ | 5.32 | | | $ | 1,000 | | | $ | 1,019.82 | | | $ | 5.35 | | | | 1.06% | |
See footnotes on page 6.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Balanced Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,045.70 | | | $ | 5.73 | | | $ | 1,000 | | | $ | 1,019.48 | | | $ | 5.65 | | | | 1.12% | |
Class B** | | $ | 1,000 | | | $ | 1,042.00 | | | $ | 9.39 | | | $ | 1,000 | | | $ | 1,015.84 | | | $ | 9.27 | | | | 1.84% | |
Class C | | $ | 1,000 | | | $ | 1,042.50 | | | $ | 9.19 | | | $ | 1,000 | | | $ | 1,016.04 | | | $ | 9.07 | | | | 1.80% | |
Class E*** | | $ | 1,000 | | | $ | 1,046.70 | | | $ | 4.81 | | | $ | 1,000 | | | $ | 1,020.32 | | | $ | 4.75 | | | | 0.95% | |
Class I | | $ | 1,000 | | | $ | 1,047.40 | | | $ | 4.30 | | | $ | 1,000 | | | $ | 1,020.82 | | | $ | 4.24 | | | | 0.85% | |
Class R | | $ | 1,000 | | | $ | 1,044.30 | | | $ | 7.36 | | | $ | 1,000 | | | $ | 1,017.87 | | | $ | 7.26 | | | | 1.44% | |
Class R6 | | $ | 1,000 | | | $ | 1,048.00 | | | $ | 3.58 | | | $ | 1,000 | | | $ | 1,021.60 | | | $ | 3.54 | | | | 0.69% | |
Class Y | | $ | 1,000 | | | $ | 1,045.80 | | | $ | 5.63 | | | $ | 1,000 | | | $ | 1,019.60 | | | $ | 5.55 | | | | 1.09% | |
Ivy Energy Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,237.20 | | | $ | 8.05 | | | $ | 1,000 | | | $ | 1,017.85 | | | $ | 7.26 | | | | 1.44% | |
Class B** | | $ | 1,000 | | | $ | 1,232.30 | | | $ | 12.95 | | | $ | 1,000 | | | $ | 1,013.44 | | | $ | 11.68 | | | | 2.32% | |
Class C | | $ | 1,000 | | | $ | 1,233.10 | | | $ | 11.84 | | | $ | 1,000 | | | $ | 1,014.42 | | | $ | 10.68 | | | | 2.12% | |
Class E*** | | $ | 1,000 | | | $ | 1,239.30 | | | $ | 6.72 | | | $ | 1,000 | | | $ | 1,019.09 | | | $ | 6.06 | | | | 1.19% | |
Class I | | $ | 1,000 | | | $ | 1,239.40 | | | $ | 6.16 | | | $ | 1,000 | | | $ | 1,019.59 | | | $ | 5.55 | | | | 1.09% | |
Class R | | $ | 1,000 | | | $ | 1,235.70 | | | $ | 9.39 | | | $ | 1,000 | | | $ | 1,016.64 | | | $ | 8.47 | | | | 1.68% | |
Class R6 | | $ | 1,000 | | | $ | 1,240.60 | | | $ | 5.27 | | | $ | 1,000 | | | $ | 1,020.38 | | | $ | 4.75 | | | | 0.93% | |
Class Y | | $ | 1,000 | | | $ | 1,237.80 | | | $ | 7.50 | | | $ | 1,000 | | | $ | 1,018.34 | | | $ | 6.76 | | | | 1.34% | |
Ivy Global Natural Resources Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,141.30 | | | $ | 9.31 | | | $ | 1,000 | | | $ | 1,016.32 | | | $ | 8.77 | | | | 1.75% | |
Class B** | | $ | 1,000 | | | $ | 1,134.90 | | | $ | 15.05 | | | $ | 1,000 | | | $ | 1,010.95 | | | $ | 14.18 | | | | 2.82% | |
Class C | | $ | 1,000 | | | $ | 1,138.40 | | | $ | 12.72 | | | $ | 1,000 | | | $ | 1,013.21 | | | $ | 11.98 | | | | 2.36% | |
Class E | | $ | 1,000 | | | $ | 1,144.40 | | | $ | 6.75 | | | $ | 1,000 | | | $ | 1,018.75 | | | $ | 6.36 | | | | 1.26% | |
Class I | | $ | 1,000 | | | $ | 1,144.40 | | | $ | 6.54 | | | $ | 1,000 | | | $ | 1,018.92 | | | $ | 6.16 | | | | 1.22% | |
Class R | | $ | 1,000 | | | $ | 1,141.50 | | | $ | 9.53 | | | $ | 1,000 | | | $ | 1,016.20 | | | $ | 8.97 | | | | 1.77% | |
Class R6 | | $ | 1,000 | | | $ | 1,145.50 | | | $ | 5.47 | | | $ | 1,000 | | | $ | 1,019.95 | | | $ | 5.15 | | | | 1.02% | |
Class Y | | $ | 1,000 | | | $ | 1,143.80 | | | $ | 7.72 | | | $ | 1,000 | | | $ | 1,017.90 | | | $ | 7.26 | | | | 1.43% | |
Ivy LaSalle Global Real Estate Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,025.60 | | | $ | 7.70 | | | $ | 1,000 | | | $ | 1,017.51 | | | $ | 7.67 | | | | 1.51% | |
Class B** | | $ | 1,000 | | | $ | 1,019.00 | | | $ | 13.43 | | | $ | 1,000 | | | $ | 1,011.73 | | | $ | 13.38 | | | | 2.66% | |
Class C | | $ | 1,000 | | | $ | 1,018.80 | | | $ | 14.03 | | | $ | 1,000 | | | $ | 1,011.13 | | | $ | 13.98 | | | | 2.78% | |
Class I | | $ | 1,000 | | | $ | 1,024.50 | | | $ | 8.81 | | | $ | 1,000 | | | $ | 1,016.41 | | | $ | 8.77 | | | | 1.73% | |
Class R | | $ | 1,000 | | | $ | 1,022.20 | | | $ | 11.43 | | | $ | 1,000 | | | $ | 1,013.78 | | | $ | 11.38 | | | | 2.25% | |
Class Y | | $ | 1,000 | | | $ | 1,030.20 | | | $ | 7.71 | | | $ | 1,000 | | | $ | 1,017.51 | | | $ | 7.67 | | | | 1.51% | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,034.40 | | | $ | 7.63 | | | $ | 1,000 | | | $ | 1,017.58 | | | $ | 7.57 | | | | 1.51% | |
Class B** | | $ | 1,000 | | | $ | 1,031.30 | | | $ | 11.68 | | | $ | 1,000 | | | $ | 1,013.55 | | | $ | 11.58 | | | | 2.30% | |
Class C | | $ | 1,000 | | | $ | 1,031.00 | | | $ | 11.68 | | | $ | 1,000 | | | $ | 1,013.54 | | | $ | 11.58 | | | | 2.28% | |
Class I | | $ | 1,000 | | | $ | 1,036.40 | | | $ | 6.82 | | | $ | 1,000 | | | $ | 1,018.40 | | | $ | 6.76 | | | | 1.31% | |
Class R | | $ | 1,000 | | | $ | 1,032.40 | | | $ | 9.76 | | | $ | 1,000 | | | $ | 1,015.47 | | | $ | 9.67 | | | | 1.92% | |
Class Y | | $ | 1,000 | | | $ | 1,034.60 | | | $ | 7.73 | | | $ | 1,000 | | | $ | 1,017.49 | | | $ | 7.67 | | | | 1.51% | |
See footnotes on page 6.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Real Estate Securities Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,036.50 | | | $ | 7.33 | | | $ | 1,000 | | | $ | 1,017.86 | | | $ | 7.26 | | | | 1.44% | |
Class B** | | $ | 1,000 | | | $ | 1,031.80 | | | $ | 11.89 | | | $ | 1,000 | | | $ | 1,013.32 | | | $ | 11.78 | | | | 2.34% | |
Class C | | $ | 1,000 | | | $ | 1,032.90 | | | $ | 10.88 | | | $ | 1,000 | | | $ | 1,014.37 | | | $ | 10.78 | | | | 2.13% | |
Class E | | $ | 1,000 | | | $ | 1,036.40 | | | $ | 7.33 | | | $ | 1,000 | | | $ | 1,017.82 | | | $ | 7.26 | | | | 1.45% | |
Class I | | $ | 1,000 | | | $ | 1,038.50 | | | $ | 5.40 | | | $ | 1,000 | | | $ | 1,019.76 | | | $ | 5.35 | | | | 1.06% | |
Class R | | $ | 1,000 | | | $ | 1,035.80 | | | $ | 8.35 | | | $ | 1,000 | | | $ | 1,016.88 | | | $ | 8.27 | | | | 1.63% | |
Class R6 | | $ | 1,000 | | | $ | 1,039.60 | | | $ | 4.49 | | | $ | 1,000 | | | $ | 1,020.71 | | | $ | 4.45 | | | | 0.87% | |
Class Y | | $ | 1,000 | | | $ | 1,037.50 | | | $ | 6.42 | | | $ | 1,000 | | | $ | 1,018.76 | | | $ | 6.36 | | | | 1.26% | |
Ivy Science and Technology Fund | | | | | | | | | | | | | | | | | |
Class A | | $ | 1,000 | | | $ | 1,096.20 | | | $ | 7.02 | | | $ | 1,000 | | | $ | 1,018.40 | | | $ | 6.76 | | | | 1.33% | |
Class B** | | $ | 1,000 | | | $ | 1,091.80 | | | $ | 10.88 | | | $ | 1,000 | | | $ | 1,014.68 | | | $ | 10.48 | | | | 2.07% | |
Class C | | $ | 1,000 | | | $ | 1,092.40 | | | $ | 10.46 | | | $ | 1,000 | | | $ | 1,015.03 | | | $ | 10.08 | | | | 2.00% | |
Class E | | $ | 1,000 | | | $ | 1,095.90 | | | $ | 7.13 | | | $ | 1,000 | | | $ | 1,018.24 | | | $ | 6.86 | | | | 1.36% | |
Class I | | $ | 1,000 | | | $ | 1,097.80 | | | $ | 5.24 | | | $ | 1,000 | | | $ | 1,020.06 | | | $ | 5.05 | | | | 1.00% | |
Class R | | $ | 1,000 | | | $ | 1,094.60 | | | $ | 8.38 | | | $ | 1,000 | | | $ | 1,017.09 | | | $ | 8.07 | | | | 1.59% | |
Class R6 | | $ | 1,000 | | | $ | 1,098.80 | | | $ | 4.41 | | | $ | 1,000 | | | $ | 1,020.84 | | | $ | 4.24 | | | | 0.84% | |
Class Y | | $ | 1,000 | | | $ | 1,096.50 | | | $ | 6.50 | | | $ | 1,000 | | | $ | 1,018.84 | | | $ | 6.26 | | | | 1.24% | |
| * | Fund expenses for each share class are equal to the Fund’s annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by 183 days in the six-month period ended September 30, 2016, 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. |
The above illustrations are based on ongoing costs only and do not include any transactional costs, such as sales loads or exchange fees.
| | |
| PORTFOLIO HIGHLIGHTS | | IVY ASSET STRATEGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 58.7% | |
Information Technology | | | 13.0% | |
Consumer Discretionary | | | 11.1% | |
Health Care | | | 8.3% | |
Consumer Staples | | | 7.5% | |
Financials | | | 6.5% | |
Energy | | | 6.1% | |
Industrials | | | 4.2% | |
Materials | | | 2.0% | |
Bullion (Gold) | | | 7.7% | |
Purchased Options | | | 0.0% | |
Bonds | | | 26.1% | |
Corporate Debt Securities | | | 11.0% | |
United States Government and Government Agency Obligations | | | 9.2% | |
Other Government Securities | | | 5.9% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 7.5% | |
Lipper Rankings
| | | | | | |
Category: Lipper Alternative Global
Macro Funds | | Rank | | Percentile | |
1 Year | | 281/321 | | | 88 | |
3 Year | | 244/268 | | | 91 | |
5 Year | | 47/180 | | | 26 | |
10 Year | | 4/53 | | | 8 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
North America | | | 58.8% | |
United States | | | 54.0% | |
Mexico | | | 4.8% | |
Europe | | | 18.4% | |
United Kingdom | | | 12.9% | |
Other Europe | | | 5.5% | |
Bullion (Gold) | | | 7.7% | |
Pacific Basin | | | 5.8% | |
South America | | | 1.1% | |
Other | | | 0.7% | |
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options | | | 7.5% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Microsoft Corp. | | United States | | Information Technology | | Systems Software |
Kraft Foods Group, Inc. | | United States | | Consumer Staples | | Packaged Foods & Meats |
Halliburton Co. | | United States | | Energy | | Oil & Gas Equipment & Services |
Adobe Systems, Inc. | | United States | | Information Technology | | Application Software |
JPMorgan Chase & Co. | | United States | | Financials | | Other Diversified Financial Services |
Allergan plc | | United States | | Health Care | | Pharmaceuticals |
Chipotle Mexican Grill, Inc., Class A | | United States | | Consumer Discretionary | | Restaurants |
Alphabet, Inc., Class A | | United States | | Information Technology | | Internet Software & Services |
Home Depot, Inc. (The) | | United States | | Consumer Discretionary | | Home Improvement Retail |
Intuit, Inc. | | United States | | Information Technology | | Application Software |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Auto Parts & Equipment – 1.8% | |
Continental AG (A) | | | 259 | | | $ | 54,430 | |
Delphi Automotive plc | | | 809 | | | | 57,662 | |
| | | | | | | | |
| | | | | | | 112,092 | |
| | | | | | | | |
| |
Automobile Manufacturers – 0.8% | |
Suzuki Motor Corp. (A) | | | 1,479 | | | | 49,013 | |
| | | | | | | | |
| |
Cable & Satellite – 1.4% | |
Comcast Corp., Class A | | | 1,350 | | | | 89,546 | |
| | | | | | | | |
| |
Home Improvement Retail – 1.5% | |
Home Depot, Inc. (The) | | | 754 | | | | 97,051 | |
| | | | | | | | |
| |
Internet & Direct Marketing Retail – 1.3% | |
Amazon.com, Inc. (B) | | | 101 | | | | 84,602 | |
| | | | | | | | |
| |
Leisure Products – 2.2% | |
Media Group Holdings LLC, Series H (B)(C)(D)(E) | | | 640 | | | | 7,580 | |
Media Group Holdings LLC, Series I (B)(C)(D)(E) | | | 381 | | | | 61,505 | |
Media Group Holdings LLC, Series T (B)(C)(D)(E) | | | 80 | | | | 67,596 | |
| | | | | | | | |
| | | | | | | 136,681 | |
| | | | | | | | |
| |
Movies & Entertainment – 0.0% | |
Delta Topco Ltd. (B)(C) | | | 718,555 | | | | 1 | |
| | | | | | | | |
| |
Restaurants – 1.6% | |
Chipotle Mexican Grill, Inc., Class A (B) | | | 236 | | | | 99,988 | |
| | | | | | | | |
| |
Tires & Rubber – 0.5% | |
Bridgestone Corp. (A) | | | 907 | | | | 33,134 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 11.1% | | | | 702,108 | |
Consumer Staples | |
| |
Brewers – 1.2% | |
InBev N.V. (A) | | | 586 | | | | 76,690 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 3.5% | |
Kraft Foods Group, Inc. | | | 1,469 | | | | 131,481 | |
Mead Johnson Nutrition Co. | | | 212 | | | | 16,782 | |
Mondelez International, Inc., Class A | | | 1,667 | | | | 73,199 | |
| | | | | | | | |
| | | | | | | 221,462 | |
| | | | | | | | |
| |
Soft Drinks – 1.4% | |
Coca-Cola Co. (The) | | | 2,071 | | | | 87,645 | |
| | | | | | | | |
| |
Tobacco – 1.4% | |
ITC Ltd. (A) | | | 4,875 | | | | 17,673 | |
Philip Morris International, Inc. | | | 750 | | | | 72,934 | |
| | | | | | | | |
| | | | | | | 90,607 | |
| | | | | | | | |
| |
Total Consumer Staples – 7.5% | | | | 476,404 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Energy | |
| |
Oil & Gas Equipment & Services – 3.0% | |
Halliburton Co. | | | 2,507 | | | $ | 112,534 | |
Schlumberger Ltd. | | | 948 | | | | 74,535 | |
| | | | | | | | |
| | | | | | | 187,069 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 3.1% | |
Cabot Oil & Gas Corp. | | | 310 | | | | 8,007 | |
EOG Resources, Inc. | | | 905 | | | | 87,566 | |
Noble Energy, Inc. | | | 2,080 | | | | 74,325 | |
Pioneer Natural Resources Co. | | | 152 | | | | 28,267 | |
| | | | | | | | |
| | | | | | | 198,165 | |
| | | | | | | | |
| |
Total Energy – 6.1% | | | | 385,234 | |
Financials | |
| |
Diversified Banks – 1.4% | |
Axis Bank Ltd. (A) | | | 5,771 | | | | 46,925 | |
Banca Intesa S.p.A. (A) | | | 18,934 | | | | 41,985 | |
| | | | | | | | |
| | | | | | | 88,910 | |
| | | | | | | | |
| |
Life & Health Insurance – 1.5% | |
AIA Group Ltd. (A) | | | 14,212 | | | | 94,451 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 3.0% | |
Citigroup, Inc. | | | 1,882 | | | | 88,869 | |
JPMorgan Chase & Co. | | | 1,539 | | | | 102,501 | |
| | | | | | | | |
| | | | | | | 191,370 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 0.6% | |
Berkshire Hathaway, Inc., Class B (B) | | | 242 | | | | 34,890 | |
| | | | | | | | |
| |
Total Financials – 6.5% | | | | 409,621 | |
Health Care | |
| |
Biotechnology – 2.9% | |
Alexion Pharmaceuticals, Inc. (B) | | | 387 | | | | 47,477 | |
Amgen, Inc. | | | 273 | | | | 45,585 | |
Shire Pharmaceuticals Group plc ADR | | | 458 | | | | 88,784 | |
| | | | | | | | |
| | | | | | | 181,846 | |
| | | | | | | | |
| |
Health Care Equipment – 1.0% | |
Medtronic plc | | | 729 | | | | 63,016 | |
| | | | | | | | |
| |
Pharmaceuticals – 4.4% | |
Allergan plc (B) | | | 437 | | | | 100,686 | |
Bristol-Myers Squibb Co. | | | 823 | | | | 44,360 | |
Pfizer, Inc. | | | 2,731 | | | | 92,496 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 974 | | | | 44,801 | |
| | | | | | | | |
| | | | | | | 282,343 | |
| | | | | | | | |
| |
Total Health Care – 8.3% | | | | 527,205 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Industrials | |
| |
Aerospace & Defense – 1.2% | |
Lockheed Martin Corp. | | | 324 | | | $ | 77,574 | |
| | | | | | | | |
| |
Construction & Engineering – 0.6% | |
Larsen & Toubro Ltd. (A) | | | 1,896 | | | | 40,810 | |
| | | | | | | | |
| |
Construction Machinery & Heavy Trucks – 0.6% | |
PACCAR, Inc. | | | 589 | | | | 34,604 | |
| | | | | | | | |
| |
Industrial Conglomerates – 1.1% | |
General Electric Co. | | | 2,391 | | | | 70,824 | |
| | | | | | | | |
| |
Industrial Machinery – 0.2% | |
Parker Hannifin Corp. | | | 80 | | | | 9,992 | |
| | | | | | | | |
| |
Railroads – 0.5% | |
Union Pacific Corp. | | | 318 | | | | 30,995 | |
| | | | | | | | |
| | |
Total Industrials – 4.2% | | | | | | | 264,799 | |
Information Technology | | | | | | | | |
| |
Application Software – 3.2% | |
Adobe Systems, Inc. (B) | | | 1,008 | | | | 109,394 | |
Intuit, Inc. | | | 861 | | | | 94,708 | |
| | | | | | | | |
| | | | | | | 204,102 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 1.9% | |
FleetCor Technologies, Inc. (B) | | | 224 | | | | 38,874 | |
Visa, Inc., Class A | | | 1,006 | | | | 83,155 | |
| | | | | | | | |
| | | | | | | 122,029 | |
| | | | | | | | |
| |
Electronic Equipment & Instruments – 0.1% | |
Keyence Corp. (A) | | | 13 | | | | 9,635 | |
| | | | | | | | |
| |
Internet Software & Services – 3.1% | |
Alibaba Group Holding Ltd. ADR (B) | | | 745 | | | | 78,766 | |
Alphabet, Inc., Class A (B) | | | 121 | | | | 97,131 | |
Facebook, Inc., Class A (B) | | | 153 | | | | 19,674 | |
| | | | | | | | |
| | | | | | | 195,571 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 0.7% | |
Cognizant Technology Solutions Corp., Class A (B) | | | 965 | | | | 46,029 | |
| | | | | | | | |
| |
Semiconductor Equipment – 0.3% | |
ASML Holding N.V., Ordinary Shares(A) | | | 149 | | | | 16,304 | |
| | | | | | | | |
| |
Semiconductors – 1.6% | |
Micron Technology, Inc. (B) | | | 1,657 | | | | 29,459 | |
QUALCOMM, Inc. | | | 1,034 | | | | 70,795 | |
| | | | | | | | |
| | | | | | | 100,254 | |
| | | | | | | | |
| |
Systems Software – 2.1% | |
Microsoft Corp. | | | 2,326 | | | | 133,998 | |
| | | | | | | | |
| |
Total Information Technology — 13.0% | | | | 827,922 | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Materials | | | | | | | | |
| |
Diversified Chemicals – 0.3% | |
PPG Industries, Inc. | | | 216 | | | $ | 22,284 | |
| | | | | | | | |
| |
Diversified Metals & Mining – 1.0% | |
BHP Billiton plc (A) | | | 1,664 | | | | 25,068 | |
Rio Tinto plc (A) | | | 1,136 | | | | 37,916 | |
| | | | | | | | |
| | | | | | | 62,984 | |
| | | | | | | | |
| |
Paper Packaging – 0.7% | |
International Paper Co. | | | 914 | | | | 43,830 | |
| | | | | | | | |
| | |
Total Materials – 2.0% | | | | | | | 129,098 | |
| |
TOTAL COMMON STOCKS – 58.7% | | | $ | 3,722,391 | |
(Cost: $4,228,067) | | | | | | | | |
| | |
| PURCHASED OPTIONS | | Number of
Contracts
(Unrounded) | | | | |
NIKE, Inc., Class B, | | | | | | | | |
Call $65.00, Expires 10–21–16, OTC (Ctrpty: Citibank N.A.) | | | 20,670 | | | | 21 | |
| | | | | | | | |
| |
TOTAL PURCHASED OPTIONS – 0.0% | | | | 21 | |
(Cost: $3,646) | | | | | | | | |
| | |
CORPORATE DEBT
SECURITIES | | Principal | | | | |
Consumer Discretionary | | | | | | | | |
| |
Movies & Entertainment – 10.7% | |
Delta Topco Ltd., | | | | | | | | |
10.000%, 11–24–60 (C)(F) | | $ | 729,133 | | | | 677,601 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 10.7% | | | | 677,601 | |
Financials | | | | | | | | |
| |
Diversified Banks – 0.3% | |
Royal Bank of Scotland Group plc (The): | | | | | | | | |
7.500%, 12–29–49 | | | 14,766 | | | | 13,658 | |
8.625%, 12–29–49 | | | 6,547 | | | | 6,449 | |
| | | | | | | | |
| | | | | | | 20,107 | |
| | | | | | | | |
| | |
Total Financials – 0.3% | | | | | | | 20,107 | |
| |
TOTAL CORPORATE DEBT SECURITIES – 11.0% | | | $ | 697,708 | |
(Cost: $756,026) | | | | | | | | |
| | | | | | | | |
| | | Principal | | | Value | |
OTHER GOVERNMENT SECURITIES(G) | |
Brazil – 1.1% | |
Brazil Notas do Tesouro Nacional, | | | | | | | | |
10.000%, 1–1–21 (H) | | | BRL233,019 | | | $ | 70,101 | |
| | | | | | | | |
| |
Mexico – 4.8% | |
Mexican Bonos: | | | | | | | | |
8.000%, 6–11–20 (H) | | | MXN1,817,773 | | | | 101,068 | |
6.500%, 6–10–21 (H) | | | 1,281,900 | | | | 68,113 | |
10.000%, 12–5–24 (H) | | | 1,054,607 | | | | 68,710 | |
5.750%, 3–5–26 (H) | | | 1,333,419 | | | | 67,433 | |
| | | | | | | | |
| | | | | | | 305,324 | |
| | | | | | | | |
| |
TOTAL OTHER GOVERNMENT SECURITIES – 5.9% | | | $ | 375,425 | |
(Cost: $391,046) | | | | | | | | |
| |
UNITED STATES GOVERNMENT AGENCY OBLIGATIONS | | | | | |
Mortgage-Backed Obligations – 0.0% | |
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | | | | | | | | |
5.000%, 5–15–18 (I) | | $ | 102 | | | | 3 | |
5.500%, 3–15–23 (I) | | | 154 | | | | 10 | |
5.500%, 10–15–25 (I) | | | 403 | | | | 50 | |
5.500%, 1–15–33 (I) | | | 186 | | | | 35 | |
5.500%, 5–15–33 (I) | | | 332 | | | | 63 | |
6.000%, 11–15–35 (I) | | | 332 | | | | 73 | |
Federal National Mortgage Association Agency REMIC/CMO: | | | | | | | | |
5.500%, 6–25–23 (I) | | | 295 | | | | 32 | |
5.500%, 8–25–33 (I) | | | 615 | | | | 80 | |
5.500%, 12–25–33 (I) | | | 89 | | | | 1 | |
5.500%, 4–25–34 (I) | | | 623 | | | | 117 | |
5.500%, 8–25–35 (I) | | | 735 | | | | 128 | |
5.500%, 11–25–36 (I) | | | 1,108 | | | | 192 | |
Government National Mortgage Association Agency REMIC/CMO: | | | | | | | | |
7.000%, 5–20–33 (I) | | | 1,535 | | | | 422 | |
5.500%, 7–20–35 (I) | | | 427 | | | | 87 | |
| | | | | | | | |
| | | | | | | 1,293 | |
| | | | | | | | |
| | |
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0% | | | | | | $ | 1,293 | |
(Cost: $1,269) | | | | | | | | |
| | | | | | | | |
| | | Principal | | | Value | |
UNITED STATES GOVERNMENT OBLIGATIONS | |
Treasury Inflation Protected Obligations – 2.1% | |
U.S. Treasury Notes: | | | | | | | | |
0.125%, 4–15–21 | | $ | 36,339 | | | $ | 37,107 | |
0.625%, 1–15–26 | | | 74,584 | | | | 78,546 | |
0.125%, 7–15–26 | | | 15,059 | | | | 15,246 | |
| | | | | | | | |
| | | | | | | 130,899 | |
| | | | | | | | |
| |
Treasury Obligations – 7.1% | |
U.S. Treasury Bonds: | | | | | | | | |
2.250%, 11–15–25 (J) | | | 240,003 | | | | 253,504 | |
3.000%, 11–15–45 | | | 122,608 | | | | 140,338 | |
U.S. Treasury Notes, | | | | | | | | |
2.000%, 8–15–25 | | | 54,308 | | | | 56,238 | |
| | | | | | | | |
| | | | | | | 450,080 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 9.2% | | | $ | 580,979 | |
(Cost: $558,056) | | | | | | | | |
| | |
| BULLION – 7.7% | | Troy
Ounces | | | | |
Gold | | | 367 | | | | 483,592 | |
| | | | | | | | |
(Cost: $437,875) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
| |
Commercial Paper(K) – 3.4% | |
Campbell Soup Co., | | | | | | | | |
0.590%, 10–3–16 | | $ | 15,250 | | | | 15,249 | |
Clorox Co. (The): | | | | | | | | |
0.761%, 10–3–16 | | | 6,000 | | | | 6,000 | |
0.870%, 11–22–16 | | | 1,046 | | | | 1,045 | |
0.900%, 11–28–16 | | | 603 | | | | 602 | |
DTE Energy Co. (GTD by Detroit Edison Co.): | | | | | | | | |
0.660%, 10–4–16 | | | 1,500 | | | | 1,500 | |
0.690%, 10–5–16 | | | 1,200 | | | | 1,200 | |
0.610%, 10–6–16 | | | 7,000 | | | | 6,999 | |
DTE Gas Co., | | | | | | | | |
0.500%, 10–3–16 | | | 10,000 | | | | 9,999 | |
Ecolab, Inc., | | | | | | | | |
0.700%, 10–6–16 | | | 10,000 | | | | 9,999 | |
General Mills, Inc., | | | | | | | | |
0.580%, 10–6–16 | | | 10,000 | | | | 9,999 | |
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | | | | | | | | |
0.810%, 10–26–16 | | | 10,000 | | | | 9,994 | |
Medtronic Global Holdings SCA: | | | | | | | | |
0.720%, 10–3–16 | | | 10,000 | | | | 9,999 | |
0.730%, 11–7–16 | | | 8,000 | | | | 7,994 | |
Northern Illinois Gas Co., | | | | | | | | |
0.490%, 10–6–16 | | | 20,000 | | | | 19,998 | |
River Fuel Co. #2, Inc. (GTD by Bank of Nova Scotia), | | | | | | | | |
0.580%, 10–31–16 | | | 5,000 | | | | 4,997 | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Paper(K) (Continued) | |
River Fuel Funding Co. #3, Inc. (GTD by Bank of Nova Scotia), | | | | | | | | |
0.500%, 10–14–16 | | $ | 22,123 | | | $ | 22,119 | |
Rockwell Automation, Inc., | | | | | | | | |
0.520%, 10–3–16 | | | 11,175 | | | | 11,174 | |
Sysco Corp., | | | | | | | | |
0.560%, 10–3–16 | | | 6,270 | | | | 6,270 | |
United Technologies Corp.: | | | | | | | | |
0.790%, 10–17–16 | | | 19,000 | | | | 18,993 | |
0.790%, 10–18–16 | | | 4,020 | | | | 4,018 | |
0.850%, 11–16–16 | | | 10,000 | | | | 9,989 | |
Virginia Electric and Power Co., | | | | | | | | |
0.670%, 10–7–16 | | | 6,500 | | | | 6,499 | |
Wisconsin Gas LLC, | | | | | | | | |
0.460%, 10–4–16 | | | 20,000 | | | | 19,999 | |
| | | | | | | | |
| | | | | | | 214,635 | |
| | | | | | | | |
| |
Master Note – 0.0% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (L) | | | 2,892 | | | | 2,892 | |
| | | | | | | | |
| |
Municipal Obligations –2.8% | |
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–1–16 (L) | | | 16,600 | | | | 16,600 | |
CA Muni Fin Auth, Recovery Zone Fac Bonds (Chevron USA, Inc. Proj), Ser 2010C (GTD by Chevron Corp.), | | | | | | | | |
0.750%, 10–1–16 (L) | | | 2,386 | | | | 2,386 | |
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.830%, 10–7–16 (L) | | | 13,375 | | | | 13,375 | |
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (L) | | | 17,024 | | | | 17,024 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Municipal Obligations (Continued) | |
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.850%, 10–7–16 (L) | | $ | 24,000 | | | $ | 24,000 | |
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2008B (GTD by U.S. Bank N.A.), | | | | | | | | |
0.830%, 10–7–16 (L) | | | 1,905 | | | | 1,905 | |
IL Fin Auth, Var Rate Demand Rev Bonds (The Carle Fndtn), Ser 2009 (GTD by JPMorgan Chase Bank N.A.), | | | | | | | | |
0.880%, 10–7–16 (L) | | | 855 | | | | 855 | |
IL Fin Auth, Var Rate Demand Rev Bonds (The Univ of Chicago Med Ctr), Ser D (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.700%, 10–1–16 (L) | | | 9,000 | | | | 9,000 | |
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–1–16 (L) | | | 28,600 | | | | 28,600 | |
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2014C-C (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–1–16 (L) | | | 12,500 | | | | 12,500 | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.800%, 10–7–16 (L) | | | 5,000 | | | | 5,000 | |
NY Hsng Fin Agy, 625 W 57th Street Hsng Rev Bonds, Ser 2016A (GTD by Bank of New York Mellon (The)), | | | | | | | | |
0.780%, 10–7–16 (L) | | | 10,000 | | | | 10,000 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Municipal Obligations (Continued) | |
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.), | | | | | | | | |
0.840%, 10–7–16 (L) | | $ | 6,000 | | | $ | 6,000 | |
Sheridan Redev Agy CO Tax, Var Rfdg S Santa Fe Dr Corridor Redev PJ, Ser A-1 (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.960%, 10–7–16 (L) | | | 1,900 | | | | 1,900 | |
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL, | | | | | | | | |
0.850%, 10–7–16 (L) | | | 14,600 | | | | 14,600 | |
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011G (GTD by Bank of Nova Scotia), | | | | | | | | |
0.840%, 10–7–16 (L) | | | 6,000 | | | | 6,000 | |
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.910%, 10–1–16 (L) | | | 6,830 | | | | 6,830 | |
| | | | | | | | |
| | | | | | | 176,575 | |
| | | | | | | | |
United States Government Agency Obligations – 1.0% | |
Overseas Private Investment Corp. (GTD by U.S. Government): | | | | | | | | |
0.560%, 10–5–16 (L) | | | 5,450 | | | | 5,450 | |
0.750%, 10–5–16 (L) | | | 1,154 | | | | 1,154 | |
0.760%, 10–5–16 (L) | | | 25,605 | | | | 25,605 | |
0.800%, 10–5–16 (L) | | | 19,653 | | | | 19,653 | |
0.760%, 10–7–16 (L) | | | 5,431 | | | | 5,431 | |
0.800%, 10–7–16 (L) | | | 4,846 | | | | 4,846 | |
| | | | | | | | |
| | | | | | | 62,139 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 7.2% | | | $ | 456,241 | |
(Cost: $456,246) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.7% | | | $ | 6,317,650 | |
(Cost: $6,832,231) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3% | | | | 20,533 | |
| |
NET ASSETS – 100.0% | | | $ | 6,338,183 | |
| | | | | | |
| 10 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Consolidated Schedule of Investments
| (A) | Listed on an exchange outside the United States. |
| (B) | No dividends were paid during the preceding 12 months. |
| (C) | Restricted securities. At September 30, 2016, the Fund owned the following restricted securities: |
| | | | | | | | | | | | | | |
| Security | | Acquisition Date(s) | | Shares | | | Cost | | | Market Value | |
Delta Topco Ltd. | | 1–23–12 to 6–15–12 | | | 718,555 | | | $ | 339,126 | | | $ | 1 | |
Media Group Holdings LLC, Series H | | 8–29–13 to 10–31–13 | | | 640 | | | | 448,211 | | | | 7,580 | |
Media Group Holdings LLC, Series I | | 4–23–13 to 11–8–13 | | | 381 | | | | 140,081 | | | | 61,505 | |
Media Group Holdings LLC, Series T | | 7–2–13 to 1–23–15 | | | 80 | | | | 172,543 | | | | 67,596 | |
| | | | |
| | | | | Principal | | | | | | | |
| Delta Topco Ltd., 10.000%, 11–24–60 | | 4–1–12 to 1–1–16 | | | $729,133 | | | | 735,341 | | | | 677,601 | |
| | | | | | | | | | |
| | | | | | | | $ | 1,835,302 | | | | $814,283 | |
| | | | | | | | | | |
The total value of these securities represented 12.8% of net assets at September 30, 2016.
| (D) | 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. |
| (E) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
| (F) | Payment-in-kind bonds. |
| (G) | Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
| (H) | Principal amount and exercise prices are denominated in the indicated foreign currency, where applicable (BRL - Brazilian Real and MXN - Mexican Peso). |
| (I) | Interest-only security. Amount shown as principal represents notional amount for computation of interest. |
| (J) | All or a portion of securities with an aggregate value of $5,037 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
| (K) | Rate shown is the yield to maturity at September 30, 2016. |
| (L) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| British Pound | | | 22,300 | | | U.S. Dollar | | | 29,251 | | | 10–26–16 | | State Street Global Markets | | $ | 334 | | | $ | — | | | | | |
| Euro | | | 76,777 | | | U.S. Dollar | | | 86,456 | | | 10–26–16 | | State Street Global Markets | | | 117 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 451 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying Security | | Counterparty, if OTC | | Type | | | Number of
Contracts | | | Expiration Month | | | Exercise
Price | | | Premium
Received | | | Value | |
NIKE, Inc., Class B | | Citibank N.A. | | | Put | | | | 16,536 | | | | October 2016 | | | $ | 55.00 | | | $ | 3,748 | | | $ | (4,192 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 11 | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 565,426 | | | $ | — | | | $ | 136,682 | |
Consumer Staples | | | 476,404 | | | | — | | | | — | |
Energy | | | 385,234 | | | | — | | | | — | |
Financials | | | 409,621 | | | | — | | | | — | |
Health Care | | | 527,205 | | | | — | | | | — | |
Industrials | | | 264,799 | | | | — | | | | — | |
Information Technology | | | 827,922 | | | | — | | | | — | |
Materials | | | 129,098 | | | | — | | | | — | |
Total Common Stocks | | $ | 3,585,709 | | | $ | — | | | $ | 136,682 | |
Purchased Options | | | — | | | | 21 | | | | — | |
Corporate Debt Securities | | | — | | | | 20,107 | | | | 677,601 | |
Other Government Securities | | | — | | | | 375,425 | | | | — | |
United States Government Agency Obligations | | | — | | | | 1,293 | | | | — | |
United States Government Obligations | | | — | | | | 580,979 | | | | — | |
Bullion | | | 483,592 | | | | — | | | | — | |
Short-Term Securities | | | — | | | | 456,241 | | | | — | |
Total | | $ | 4,069,301 | | | $ | 1,434,066 | | | $ | 814,283 | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 451 | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Written Options | | $ | — | | | $ | 4,192 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between any levels.
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 | |
Beginning Balance 4-1-16 | | $ | 351,937 | | | $ | 729,133 | |
Net realized gain (loss) | | | — | | | | — | |
Net change in unrealized appreciation (depreciation) | | | (145,435 | ) | | | (51,532 | ) |
Purchases | | | — | | | | — | |
Sales | | | (69,820 | ) | | | — | |
Amortization/Accretion of premium/discount | | | — | | | | — | |
Transfers into Level 3 during the period | | | — | | | | — | |
Transfers out of Level 3 during the period | | | — | | | | — | |
| | | | |
Ending Balance 9-30-16 | | $ | 136,682 | | | $ | 677,601 | |
| | | | |
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9-30-16 | | $ | (145,435 | ) | | $ | (51,532 | ) |
| | | | |
| | | | | | |
| 12 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY ASSET STRATEGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Information about Level 3 fair value measurements:
| | | | | | | | | | | | |
| | | Fair Value
at 9-30-16 | | | Valuation Technique(s) | | Unobservable Input(s) | | Input
Value(s) | |
Assets | | | | | | | | | | | | |
| | | | |
Common Stocks | | $ | 67,596 | | | Discounted cash flows model | | Long-term growth rate | | | 2.50% | |
| | | | | | | | Weighted average cost of capital | | | 15% | |
| | | | | | | | Illiquidity discount | | | 10% | |
| | | 61,506 | | | Transaction | | Price | | | $28.14 to 344 | |
| | | | | | | | Illiquidity discount | | | 5 to 10% | |
| | | 7,580 | | | Discounted cash flows model | | Long-term growth rate | | | 2.5% | |
| | | | | | | | Weighted average cost of capital | | | 40% | |
| | | | | | | | Illiquidity discount | | | 10% | |
| | | | | | | | Methodology weighting | | | 75% | |
| | | | | | Discounted book value | | Discount factor | | | 100% | |
| | | | | | | | Methodology weighting | | | 25% | |
Corporate Debt Securities | | | 677,601 | | | Transaction | | Price | | | $28.14 | |
| | | | | | | | Illiquidity discount | | | 5% | |
Significant increases (decreases) in long-term growth rate inputs could result in a higher (lower) fair value measurement. However, significant increases (decreases) in weighted average cost of capital, discount factors, or illiquidity discount inputs could result in a higher (lower) fair value measurement.
During the period ended September 30, 2016, securities totaling $910,970 changed valuation techniques from discounted cash flows model to a transaction approach. The change in valuation techniques is primarily due to the discounted cash flows model no longer reflecting current market participant assumptions.
During the period ended September 30, 2016, securities totaling $60,093 changed valuation techniques from discounted cash flows model to a blended methodology of discounted cash flows model and discounted book value. The change in valuation techniques is primarily due to the blended methodology more closely reflecting current market participant assumptions.
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 | | | 54.0% | |
United Kingdom | | | 12.9% | |
Mexico | | | 4.8% | |
Ireland | | | 2.4% | |
India | | | 1.6% | |
Hong Kong | | | 1.5% | |
Japan | | | 1.4% | |
China | | | 1.3% | |
Belgium | | | 1.2% | |
Brazil | | | 1.1% | |
Other Countries | | | 2.6% | |
Other+ | | | 15.2% | |
| + | Includes gold bullion, options, cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 13 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY BALANCED FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | |
Asset Allocation | |
Stocks | | | 59.3% | |
Health Care | | | 13.9% | |
Information Technology | | | 11.5% | |
Consumer Discretionary | | | 9.5% | |
Consumer Staples | | | 7.7% | |
Financials | | | 4.8% | |
Energy | | | 4.4% | |
Industrials | | | 3.5% | |
Materials | | | 2.2% | |
Real Estate | | | 1.3% | |
Telecommunication Services | | | 0.5% | |
Bonds | | | 32.7% | |
Corporate Debt Securities | | | 29.4% | |
United States Government and Government Agency Obligations | | | 3.1% | |
Loans | | | 0.2% | |
Cash and Other Assets (Net of Liabilities),
and Cash Equivalents+ | | | 8.0% | |
Lipper Rankings
| | | | | | |
Category: Lipper Mixed-Asset
Target Allocation Growth Funds | | Rank | | Percentile | |
1 Year | | 431/501 | | | 86 | |
3 Year | | 283/458 | | | 62 | |
5 Year | | 186/402 | | | 47 | |
10 Year | | 24/309 | | | 8 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
| | | | |
| Company | | Sector | | Industry |
Carnival Corp. | | Consumer Discretionary | | Hotels, Resorts & Cruise Lines |
Shire Pharmaceuticals Group plc ADR | | Health Care | | Biotechnology |
Apple, Inc. | | Information Technology | | Technology Hardware, Storage & Peripherals |
Applied Materials, Inc. | | Information Technology | | Semiconductor Equipment |
JPMorgan Chase & Co. | | Financials | | Other Diversified Financial Services |
Comcast Corp., Class A | | Consumer Discretionary | | Cable & Satellite |
Allergan plc, Convertible Series A, 5.500% | | Health Care | | Pharmaceuticals |
Teva Pharmaceutical Industries Ltd., Convertible, 7.000% | | Health Care | | Pharmaceuticals |
Johnson & Johnson | | Health Care | | Pharmaceuticals |
PNC Financial Services Group, Inc. (The) | | Financials | | Regional Banks |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 14 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Auto Parts & Equipment – 1.3% | |
Johnson Controls, Inc. | | | 768 | | | $ | 35,722 | |
| | | | | | | | |
| |
Cable & Satellite – 1.5% | |
Comcast Corp., Class A | | | 614 | | | | 40,739 | |
| | | | | | | | |
| |
Casinos & Gaming – 1.1% | |
Las Vegas Sands, Inc. | | | 512 | | | | 29,444 | |
| | | | | | | | |
| |
General Merchandise Stores – 0.7% | |
Target Corp. | | | 280 | | | | 19,251 | |
| | | | | | | | |
| |
Home Improvement Retail – 0.8% | |
Home Depot, Inc. (The) | | | 166 | | | | 21,393 | |
| | | | | | | | |
| |
Homefurnishing Retail – 1.0% | |
Williams-Sonoma, Inc. | | | 531 | | | | 27,134 | |
| | | | | | | | |
| |
Hotels, Resorts & Cruise Lines – 2.0% | |
Carnival Corp. | | | 1,116 | | | | 54,476 | |
| | | | | | | | |
| |
Movies & Entertainment – 1.1% | |
Twenty-First Century Fox, Inc. | | | 1,150 | | | | 28,442 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 9.5% | | | | 256,601 | |
Consumer Staples | |
| |
Brewers – 1.0% | |
Anheuser-Busch InBev S.A. ADR | | | 201 | | | | 26,440 | |
| | | | | | | | |
| |
Distillers & Vintners – 0.8% | |
Constellation Brands, Inc. | | | 138 | | | | 22,901 | |
| | | | | | | | |
| |
Drug Retail – 1.0% | |
CVS Caremark Corp. | | | 300 | | | | 26,688 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 3.7% | |
J.M. Smucker Co. (The) | | | 254 | | | | 34,441 | |
Kraft Foods Group, Inc. | | | 353 | | | | 31,633 | |
Mead Johnson Nutrition Co. | | | 431 | | | | 34,017 | |
| | | | | | | | |
| | | | | | | 100,091 | |
| | | | | | | | |
| |
Soft Drinks – 1.2% | |
Coca-Cola Co. (The) | | | 735 | | | | 31,090 | |
| | | | | | | | |
| |
Total Consumer Staples—7.7% | | | | 207,210 | |
Energy | |
| |
Integrated Oil & Gas – 0.1% | |
Chevron Corp. | | | 30 | | | | 3,036 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 1.1% | |
Schlumberger Ltd. | | | 381 | | | | 29,962 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 2.4% | |
Newfield Exploration Co. (A) | | | 736 | | | | 31,971 | |
Noble Energy, Inc. | | | 894 | | | | 31,952 | |
| | | | | | | | |
| | | | | | | 63,923 | |
| | | | | | | | |
| |
Total Energy—3.6% | | | | 96,921 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Financials | |
| |
Financial Exchanges & Data – 1.3% | |
Intercontinental Exchange, Inc. | | | 131 | | | $ | 35,326 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 1.6% | |
JPMorgan Chase & Co. | | | 638 | | | | 42,498 | |
| | | | | | | | |
| |
Regional Banks – 1.4% | |
PNC Financial Services Group, Inc. (The) | | | 425 | | | | 38,275 | |
| | | | | | | | |
| |
Total Financials – 4.3% | | | | 116,099 | |
Health Care | |
| |
Biotechnology – 2.8% | |
Biogen, Inc. (A) | | | 84 | | | | 26,201 | |
Shire Pharmaceuticals Group plc ADR | | | 263 | | | | 50,925 | |
| | | | | | | | |
| | | | | | | 77,126 | |
| | | | | | | | |
| |
Health Care Equipment – 1.3% | |
Medtronic plc | | | 395 | | | | 34,150 | |
| | | | | | | | |
| |
Health Care Services – 0.9% | |
Laboratory Corp. of America Holdings (A) | | | 179 | | | | 24,623 | |
| | | | | | | | |
| |
Managed Health Care – 2.0% | |
Anthem, Inc. | | | 243 | | | | 30,469 | |
UnitedHealth Group, Inc. | | | 161 | | | | 22,519 | |
| | | | | | | | |
| | | | | | | 52,988 | |
| | | | | | | | |
| |
Pharmaceuticals – 3.9% | |
Allergan plc (A) | | | 130 | | | | 29,998 | |
Johnson & Johnson | | | 333 | | | | 39,313 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 772 | | | | 35,506 | |
| | | | | | | | |
| | | | | | | 104,817 | |
| | | | | | | | |
| |
Total Health Care – 10.9% | | | | 293,704 | |
Industrials | |
| |
Industrial Conglomerates – 1.0% | |
General Electric Co. | | | 882 | | | | 26,120 | |
| | | | | | | | |
| |
Railroads – 1.1% | |
Union Pacific Corp. | | | 314 | | | | 30,664 | |
| | | | | | | | |
| |
Trucking – 0.7% | |
Knight Transportation, Inc. | | | 612 | | | | 17,548 | |
| | | | | | | | |
| |
Total Industrials – 2.8% | | | | 74,332 | |
Information Technology | |
| |
Application Software – 1.4% | |
Autodesk, Inc. (A) | | | 525 | | | | 37,977 | |
| | | | | | | | |
| |
Communications Equipment – 1.3% | |
Harris Corp. | | | 376 | | | | 34,418 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
| |
Data Processing & Outsourced Services – 1.0% | |
FleetCor Technologies, Inc. (A) | | | 162 | | | $ | 28,092 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 1.0% | |
Cognizant Technology Solutions Corp., Class A (A) | | | 596 | | | | 28,440 | |
| | | | | | | | |
| |
Semiconductor Equipment – 1.7% | |
Applied Materials, Inc. | | | 1,518 | | | | 45,768 | |
| | | | | | | | |
| |
Semiconductors – 2.0% | |
Broadcom Corp., Class A | | | 163 | | | | 28,191 | |
Microchip Technology, Inc. | | | 401 | | | | 24,897 | |
| | | | | | | | |
| | | | | | | 53,088 | |
| | | | | | | | |
| |
Systems Software – 1.3% | |
Symantec Corp. | | | 1,361 | | | | 34,156 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 1.8% | |
Apple, Inc. | | | 429 | | | | 48,457 | |
| | | | | | | | |
| |
Total Information Technology – 11.5% | | | | 310,396 | |
Materials | |
| |
Commodity Chemicals – 0.4% | |
Valvoline, Inc. (A) | | | 479 | | | | 11,241 | |
| | | | | | | | |
| |
Diversified Chemicals – 1.3% | |
PPG Industries, Inc. | | | 345 | | | | 35,613 | |
| | | | | | | | |
| |
Total Materials – 1.7% | | | | 46,854 | |
Real Estate | |
| |
Specialized REITs – 1.3% | |
Crown Castle International Corp. | | | 372 | | | | 35,013 | |
| | | | | | | | |
| |
Total Real Estate – 1.3% | | | | 35,013 | |
| | |
TOTAL COMMON STOCKS – 53.3% | | | | | | $ | 1,437,130 | |
(Cost: $1,205,302) | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 15 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| PREFERRED STOCKS | | Shares | | | Value | |
Energy | |
| |
Oil & Gas Exploration & Production – 0.8% | |
Hess Corp., 8.000%, Convertible | | | 341 | | | $ | 22,540 | |
| | | | | | | | |
| |
Total Energy – 0.8% | | | | 22,540 | |
Financials | |
| |
Diversified Banks – 0.1% | |
First Republic Bank, Series G, 5.500% | | | 120 | | | | 3,239 | |
| | | | | | | | |
Other Diversified Financial Services – 0.4% | |
Citigroup, Inc., 6.300% | | | 366 | | | | 9,801 | |
| | | | | | | | |
| |
Total Financials – 0.5% | | | | 13,040 | |
Health Care | |
| |
Pharmaceuticals – 3.0% | |
Allergan plc, Convertible Series A, 5.500% | | | 49 | | | | 40,222 | |
Teva Pharmaceutical Industries Ltd., Convertible, 7.000% | | | 49 | | | | 39,853 | |
| | | | | | | | |
| | | | | | | 80,075 | |
| | | | | | | | |
| |
Total Health Care – 3.0% | | | | 80,075 | |
Industrials | |
| |
Environmental & Facilities Services – 0.7% | |
Stericycle, Inc., 5.250% | | | 282 | | | | 18,688 | |
| | | | | | | | |
| |
Total Industrials – 0.7% | | | | 18,688 | |
Materials | |
| |
Commodity Chemicals – 0.5% | |
A. Schulman, Inc., Convertible, 6.000% | | | 19 | | | | 14,562 | |
| | | | | | | | |
| |
Total Materials – 0.5% | | | | 14,562 | |
Telecommunication Services | |
| |
Integrated Telecommunication Services – 0.5% | |
Frontier Communications Corp., Convertible Series A, 11.125% | | | 152 | | | | 12,777 | |
| | | | | | | | |
| |
Total Telecommunication Services – 0.5% | | | | 12,777 | |
| |
TOTAL PREFERRED STOCKS – 6.0% | | | $ | 161,682 | |
(Cost: $181,916) | |
| | | | | | | | |
| CORPORATE DEBT SECURITIES | | Principal | | | Value | |
Consumer Discretionary | |
| |
Apparel, Accessories & Luxury Goods – 0.5% | |
Under Armour, Inc., | | | | | | | | |
3.250%, 6–15–26 | | $ | 12,500 | | | $ | 12,592 | |
| | | | | | | | |
| |
Automobile Manufacturers – 0.3% | |
General Motors Co., | | | | | | | | |
6.600%, 4–1–36 | | | 5,809 | | | | 7,002 | |
| | | | | | | | |
| |
Automotive Retail – 0.1% | |
AutoZone, Inc., | | | | | | | | |
3.125%, 4–21–26 | | | 3,000 | | | | 3,067 | |
| | | | | | | | |
| |
Broadcasting – 0.0% | |
Discovery Communications LLC, | | | | | | | | |
3.300%, 5–15–22 | | | 900 | | | | 924 | |
| | | | | | | | |
| |
Cable & Satellite – 0.4% | |
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal), | | | | | | | | |
3.150%, 3–1–26 | | | 4,712 | | | | 4,986 | |
Pearson Funding Five plc, | | | | | | | | |
3.250%, 5–8–23 (B) | | | 900 | | | | 882 | |
Viacom, Inc.: | | | | | | | | |
2.500%, 9–1–18 | | | 1,100 | | | | 1,111 | |
2.200%, 4–1–19 | | | 2,000 | | | | 2,006 | |
2.750%, 12–15–19 | | | 3,000 | | | | 3,047 | |
| | | | | | | | |
| | | | | | | 12,032 | |
| | | | | | | | |
| |
General Merchandise Stores – 0.0% | |
Dollar General Corp., | | | | | | | | |
1.875%, 4–15–18 | | | 1,000 | | | | 1,006 | |
| | | | | | | | |
| |
Homebuilding – 0.1% | |
Toll Brothers Finance Corp., | | | | | | | | |
4.375%, 4–15–23 | | | 1,500 | | | | 1,538 | |
| | | | | | | | |
| |
Hotels, Resorts & Cruise Lines – 0.0% | |
Hyatt Hotels Corp., | | | | | | | | |
3.375%, 7–15–23 | | | 500 | | | | 514 | |
| | | | | | | | |
| |
Housewares & Specialties – 0.2% | |
Newell Rubbermaid, Inc., | | | | | | | | |
4.200%, 4–1–26 | | | 5,400 | | | | 5,885 | |
| | | | | | | | |
| |
Publishing – 0.1% | |
Thomson Reuters Corp., | | | | | | | | |
3.350%, 5–15–26 | | | 2,100 | | | | 2,157 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 1.7% | | | | 46,717 | |
Consumer Staples | |
| |
Brewers – 0.2% | |
Molson Coors Brewing Co., | | | | | | | | |
3.000%, 7–15–26 | | | 1,500 | | | | 1,511 | |
SABMiller Holdings, Inc., | | | | | | | | |
2.200%, 8–1–18 (B) | | | 2,700 | | | | 2,736 | |
| | | | | | | | |
| | | | | | | 4,247 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
| |
Distillers & Vintners – 0.0% | |
Beam, Inc., | | | | | | | | |
1.750%, 6–15–18 | | $ | 1,000 | | | $ | 1,002 | |
| | | | | | | | |
| |
Food Distributors – 0.1% | |
Campbell Soup Co., | | | | | | | | |
2.500%, 8–2–22 | | | 2,400 | | | | 2,458 | |
Wm. Wrigley Jr. Co., | | | | | | | | |
2.400%, 10–21–18 (B) | | | 1,500 | | | | 1,524 | |
| | | | | | | | |
| | | | | | | 3,982 | |
| | | | | | | | |
| |
Household Products – 0.0% | |
Church & Dwight Co., Inc., | | | | | | | | |
2.875%, 10–1–22 | | | 500 | | | | 515 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 0.1% | |
Mead Johnson Nutrition Co., | | | | | | | | |
3.000%, 11–15–20 | | | 2,100 | | | | 2,187 | |
| | | | | | | | |
| |
Personal Products – 0.0% | |
Estee Lauder Co., Inc. (The), | | | | | | | | |
2.350%, 8–15–22 | | | 1,200 | | | | 1,228 | |
| | | | | | | | |
| |
Soft Drinks – 0.4% | |
Coca-Cola Co. (The), | | | | | | | | |
2.250%, 9–1–26 | | | 10,000 | | | | 9,941 | |
| | | | | | | | |
| |
Tobacco – 0.2% | |
BAT International Finance plc, | | | | | | | | |
2.750%, 6–15–20 (B) | | | 4,000 | | | | 4,142 | |
| | | | | | | | |
| |
Total Consumer Staples – 1.0% | | | | 27,244 | |
Energy | |
| |
Integrated Oil & Gas – 0.2% | |
Chevron Corp., | | | | | | | | |
2.954%, 5–16–26 | | | 6,000 | | | | 6,204 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 0.3% | |
Newpark Resources, Inc., Convertible, | | | | | | | | |
4.000%, 10–1–17 | | | 2,100 | | | | 2,080 | |
Schlumberger Holding Corp., | | | | | | | | |
2.350%, 12–21–18 (B) | | | 6,000 | | | | 6,112 | |
| | | | | | | | |
| | | | | | | 8,192 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 0.8% | |
BP Capital Markets plc (GTD by BP plc): | | | | | | | | |
2.241%, 9–26–18 | | | 4,250 | | | | 4,316 | |
2.315%, 2–13–20 | | | 3,000 | | | | 3,061 | |
Hess Corp., | | | | | | | | |
4.300%, 4–1–27 | | | 8,700 | | | | 8,772 | |
Occidental Petroleum Corp., | | | | | | | | |
2.600%, 4–15–22 | | | 3,000 | | | | 3,065 | |
ONEOK Partners L.P., | | | | | | | | |
3.200%, 9–15–18 | | | 2,750 | | | | 2,802 | |
| | | | | | | | |
| | | | | | | 22,016 | |
| | | | | | | | |
| | | | | | |
| 16 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
| |
Oil & Gas Storage & Transportation – 1.5% | |
Buckeye Partners L.P., | | | | | | | | |
2.650%, 11–15–18 | | $ | 6,300 | | | $ | 6,363 | |
Colorado Interstate Gas Co., | | | | | | | | |
4.150%, 8–15–26 (B) | | | 4,800 | | | | 4,762 | |
Hornbeck Offshore Services, Inc., Convertible, | | | | | | | | |
1.500%, 9–1–19 | | | 10,951 | | | | 6,242 | |
Kinder Morgan Energy Partners L.P., | | | | | | | | |
2.650%, 2–1–19 | | | 3,250 | | | | 3,277 | |
Plains All American Pipeline L.P. and PAA Finance Corp., | | | | | | | | |
4.650%, 10–15–25 | | | 3,500 | | | | 3,638 | |
Southern Natural Gas Co., | | | | | | | | |
5.900%, 4–1–17 (B) | | | 8,700 | | | | 8,885 | |
Williams Partners L.P., | | | | | | | | |
3.600%, 3–15–22 | | | 5,500 | | | | 5,596 | |
| | | | | | | | |
| | | | | | | 38,763 | |
| | | | | | | | |
| |
Total Energy – 2.8% | | | | 75,175 | |
| |
Financials | |
| |
Asset Management & Custody Banks – 0.6% | |
Ares Capital Corp.: | | | | | | | | |
4.875%, 11–30–18 | | | 6,500 | | | | 6,785 | |
3.875%, 1–15–20 | | | 10,000 | | | | 10,343 | |
| | | | | | | | |
| | | | | | | 17,128 | |
| | | | | | | | |
| |
Consumer Finance – 0.8% | |
American Express Co., | | | | | | | | |
4.900%, 12–29–49 | | | 5,800 | | | | 5,720 | |
Capital One Bank USA N.A.: | | | | | | | | |
2.150%, 11–21–18 | | | 3,150 | | | | 3,181 | |
2.250%, 2–13–19 | | | 4,000 | | | | 4,051 | |
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.), | | | | | | | | |
3.700%, 5–9–23 | | | 1,500 | | | | 1,526 | |
Hyundai Capital America, | | | | | | | | |
2.875%, 8–9–18 (B) | | | 1,550 | | | | 1,582 | |
Total System Services, Inc., | | | | | | | | |
2.375%, 6–1–18 | | | 5,538 | | | | 5,581 | |
| | | | | | | | |
| | | | | | | 21,641 | |
| | | | | | | | |
| |
Diversified Banks – 6.5% | |
ABN AMRO Bank N.V., | | | | | | | | |
2.500%, 10–30–18 (B) | | | 6,200 | | | | 6,311 | |
Australia & New Zealand Banking Group Ltd., | | | | | | | | |
4.400%, 5–19–26 (B) | | | 9,000 | | | | 9,558 | |
Bank of America Corp.: | | | | | | | | |
2.000%, 1–11–18 | | | 2,500 | | | | 2,511 | |
8.000%, 7–29–49 | | | 12,000 | | | | 12,240 | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
2.100%, 1–15–19 | | | 6,000 | | | | 6,100 | |
Bank of Nova Scotia (The): | | | | | | | | |
1.450%, 4–25–18 | | | 2,500 | | | | 2,505 | |
2.050%, 10–30–18 | | | 5,000 | | | | 5,059 | |
Barclays plc, | | | | | | | | |
5.200%, 5–12–26 | | | 6,000 | | | | 6,180 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
BNP Paribas S.A., | | | | | | | | |
2.450%, 3–17–19 | | $ | 4,500 | | | $ | 4,583 | |
Commonwealth Bank of Australia, | | | | | | | | |
2.250%, 3–13–19 | | | 4,750 | | | | 4,826 | |
DBS Group Holdings Ltd., | | | | | | | | |
2.246%, 7–16–19 (B) | | | 8,750 | | | | 8,895 | |
HSBC Holdings plc, | | | | | | | | |
3.400%, 3–8–21 | | | 7,500 | | | | 7,758 | |
ING Bank N.V.: | | | | | | | | |
2.500%, 10–1–19 (B) | | | 5,400 | | | | 5,511 | |
2.450%, 3–16–20 (B) | | | 7,200 | | | | 7,349 | |
2.750%, 3–22–21 (B) | | | 8,700 | | | | 8,984 | |
KeyBank N.A., | | | | | | | | |
2.500%, 12–15–19 | | | 4,000 | | | | 4,102 | |
Lloyds Bank plc (GTD by Lloyds Banking Group plc): | | | | | | | | |
2.300%, 11–27–18 | | | 2,000 | | | | 2,022 | |
2.350%, 9–5–19 | | | 2,650 | | | | 2,686 | |
Mizuho Bank Ltd., | | | | | | | | |
2.650%, 9–25–19 (B) | | | 5,200 | | | | 5,308 | |
Rabobank Capital Funding Trust III (GTD by Rabobank Nederland), | | | | | | | | |
5.254%, 12–29–49 (B) | | | 9,162 | | | | 9,166 | |
Royal Bank of Scotland Group plc (The), | | | | | | | | |
7.640%, 3–29–49 | | | 5,800 | | | | 5,626 | |
Skandinaviska Enskilda Banken AB, | | | | | | | | |
2.375%, 3–25–19 (B) | | | 4,000 | | | | 4,068 | |
Societe Generale S.A.: | | | | | | | | |
4.250%, 4–14–25 (B) | | | 2,750 | | | | 2,747 | |
5.922%, 4–29–49 (B) | | | 11,000 | | | | 11,098 | |
Standard Chartered plc, | | | | | | | | |
2.250%, 4–17–20 (B) | | | 10,700 | | | | 10,697 | |
Sumitomo Mitsui Banking Corp., | | | | | | | | |
2.450%, 1–16–20 | | | 4,000 | | | | 4,076 | |
U.S. Bancorp, | | | | | | | | |
3.100%, 4–27–26 | | | 3,600 | | | | 3,721 | |
Wells Fargo & Co., | | | | | | | | |
7.980%, 3–29–49 | | | 7,000 | | | | 7,316 | |
Westpac Banking Corp., | | | | | | | | |
2.250%, 7–30–18 | | | 5,000 | | | | 5,069 | |
| | | | | | | | |
| | | | | | | 176,072 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 1.1% | |
BGC Partners, Inc., | | | | | | | | |
5.375%, 12–9–19 | | | 6,500 | | | | 6,918 | |
Charles Schwab Corp. (The), | | | | | | | | |
2.200%, 7–25–18 | | | 1,000 | | | | 1,017 | |
Credit Suisse Group Funding (Guernsey) Ltd., | | | | | | | | |
2.750%, 3–26–20 | | | 4,000 | | | | 4,014 | |
Goldman Sachs Group, Inc. (The): | | | | | | | | |
2.900%, 7–19–18 | | | 1,350 | | | | 1,381 | |
2.625%, 1–31–19 | | | 4,000 | | | | 4,084 | |
2.600%, 4–23–20 | | | 3,400 | | | | 3,456 | |
Morgan Stanley: | | | | | | | | |
2.125%, 4–25–18 | | | 2,500 | | | | 2,521 | |
2.650%, 1–27–20 | | | 5,900 | | | | 6,029 | |
| | | | | | | | |
| | | | | | | 29,420 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
| |
Life & Health Insurance – 0.6% | |
AIA Group Ltd., | | | | | | | | |
2.250%, 3–11–19 (B) | | $ | 2,600 | | | $ | 2,634 | |
Citizens Financial Group, Inc., | | | | | | | | |
3.750%, 7–1–24 | | | 11,865 | | | | 11,873 | |
New York Life Global Funding, | | | | | | | | |
1.550%, 11–2–18 (B) | | | 700 | | | | 704 | |
| | | | | | | | |
| | | | | | | 15,211 | |
| | | | | | | | |
| |
Multi-Line Insurance – 0.6% | |
American International Group, Inc., | | | | | | | | |
2.300%, 7–16–19 | | | 2,750 | | | | 2,800 | |
Aon plc (GTD by Aon Corp.), | | | | | | | | |
2.800%, 3–15–21 | | | 6,000 | | | | 6,156 | |
Loews Corp., | | | | | | | | |
3.750%, 4–1–26 | | | 5,981 | | | | 6,357 | |
| | | | | | | | |
| | | | | | | 15,313 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 1.9% | |
Citigroup, Inc.: | | | | | | | | |
5.800%, 11–29–49 | | | 9,200 | | | | 9,258 | |
5.950%, 12–29–49 | | | 9,250 | | | | 9,432 | |
Fidelity National Financial, Inc., | | | | | | | | |
6.600%, 5–15–17 | | | 900 | | | | 925 | |
Fidelity National Information Services, Inc.: | | | | | | | | |
2.000%, 4–15–18 | | | 1,250 | | | | 1,261 | |
2.850%, 10–15–18 | | | 1,300 | | | | 1,334 | |
Fifth Street Finance Corp., | | | | | | | | |
4.875%, 3–1–19 | | | 6,700 | | | | 6,844 | |
JPMorgan Chase & Co.: | | | | | | | | |
7.900%, 4–29–49 | | | 6,000 | | | | 6,165 | |
5.000%, 12–29–49 | | | 6,000 | | | | 5,925 | |
Moody’s Corp., | | | | | | | | |
2.750%, 7–15–19 | | | 1,300 | | | | 1,337 | |
PennantPark Investment Corp., | | | | | | | | |
4.500%, 10–1–19 | | | 8,100 | | | | 8,073 | |
Total Capital, | | | | | | | | |
2.125%, 8–10–18 | | | 1,500 | | | | 1,525 | |
| | | | | | | | |
| | | | | | | 52,079 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 0.3% | |
Berkshire Hathaway Finance Corp., | | | | | | | | |
2.200%, 3–15–21 | | | 3,000 | | | | 3,089 | |
Hanover Insurance Group, Inc. (The), | | | | | | | | |
4.500%, 4–15–26 | | | 4,200 | | | | 4,367 | |
| | | | | | | | |
| | | | | | | 7,456 | |
| | | | | | | | |
| |
Regional Banks – 0.7% | |
PNC Bank N.A.: | | | | | | | | |
2.200%, 1–28–19 | | | 4,000 | | | | 4,064 | |
3.250%, 6–1–25 | | | 4,800 | | | | 5,056 | |
SunTrust Banks, Inc.: | | | | | | | | |
2.350%, 11–1–18 | | | 3,700 | | | | 3,764 | |
5.625%, 12–29–49 | | | 4,800 | | | | 4,962 | |
| | | | | | | | |
| | | | | | | 17,846 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 17 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Specialized Finance – 0.4% | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp., | | | | | | | | |
5.450%, 6–15–23 (B) | | $ | 8,100 | | | $ | 8,675 | |
Intercontinental Exchange, Inc., | | | | | | | | |
2.500%, 10–15–18 | | | 1,700 | | | | 1,740 | |
| | | | | | | | |
| | | | | | | 10,415 | |
| | | | | | | | |
| |
Total Financials – 13.5% | | | | 362,581 | |
Health Care | |
| |
Biotechnology – 0.4% | |
Amgen, Inc.: | | | | | | | | |
2.200%, 5–22–19 | | | 3,500 | | | | 3,565 | |
2.125%, 5–1–20 | | | 6,000 | | | | 6,091 | |
| | | | | | | | |
| | | | | | | 9,656 | |
| | | | | | | | |
| |
Health Care Equipment – 0.1% | |
Zimmer Holdings, Inc., | | | | | | | | |
2.700%, 4–1–20 | | | 3,000 | | | | 3,065 | |
| | | | | | | | |
| |
Health Care Facilities – 0.3% | |
Surgery Center Holdings, Inc., | | | | | | | | |
8.875%, 4–15–21 (B) | | | 9,000 | | | | 9,608 | |
| | | | | | | | |
| |
Health Care Services – 0.4% | |
Laboratory Corp. of America Holdings, | | | | | | | | |
2.500%, 11–1–18 | | | 1,450 | | | | 1,474 | |
Quest Diagnostics, Inc.: | | | | | | | | |
2.500%, 3–30–20 | | | 2,750 | | | | 2,783 | |
3.450%, 6–1–26 | | | 5,937 | | | | 6,190 | |
| | | | | | | | |
| | | | | | | 10,447 | |
| | | | | | | | |
| |
Health Care Supplies – 0.6% | |
Cardinal Health, Inc., | | | | | | | | |
2.400%, 11–15–19 | | | 3,900 | | | | 3,987 | |
Shire Acquisitions Investments Ireland Designated Activity Co., | | | | | | | | |
2.875%, 9–23–23 | | | 11,600 | | | | 11,653 | |
| | | | | | | | |
| | | | | | | 15,640 | |
| | | | | | | | |
| |
Managed Health Care – 0.4% | |
Aetna, Inc., | | | | | | | | |
2.200%, 3–15–19 | | | 2,600 | | | | 2,640 | |
UnitedHealth Group, Inc., | | | | | | | | |
2.700%, 7–15–20 | | | 1,700 | | | | 1,767 | |
WellPoint, Inc., | | | | | | | | |
1.875%, 1–15–18 | | | 7,200 | | | | 7,234 | |
| | | | | | | | |
| | | | | | | 11,641 | |
| | | | | | | | |
| |
Pharmaceuticals – 0.9% | |
AbbVie, Inc., | | | | | | | | |
3.200%, 5–14–26 | | | 4,200 | | | | 4,254 | |
Forest Laboratories, Inc., | | | | | | | | |
5.000%, 12–15–21 (B) | | | 9,500 | | | | 10,633 | |
Mylan, Inc., | | | | | | | | |
2.550%, 3–28–19 | | | 700 | | | | 709 | |
Perrigo Co. Ltd., | | | | | | | | |
2.300%, 11–8–18 | | | 8,850 | | | | 8,880 | |
| | | | | | | | |
| | | | | | | 24,476 | |
| | | | | | | | |
| |
Total Health Care – 3.1% | | | | 84,533 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Industrials | |
| |
Aerospace & Defense – 1.0% | |
BAE Systems Holdings, Inc., | | | | | | | | |
2.850%, 12–15–20 (B) | | $ | 4,150 | | | $ | 4,248 | |
Huntington Ingalls Industries, Inc., | | | | | | | | |
5.000%, 11–15–25 (B) | | | 19,085 | | | | 20,182 | |
TransDigm, Inc. (GTD by TransDigm Group, Inc.), | | | | | | | | |
6.000%, 7–15–22 | | | 3,500 | | | | 3,693 | |
| | | | | | | | |
| | | | | | | 28,123 | |
| | | | | | | | |
| |
Airlines – 0.2% | |
Southwest Airlines Co., | | | | | | | | |
2.650%, 11–5–20 | | | 4,300 | | | | 4,418 | |
| | | | | | | | |
| |
Railroads – 0.0% | |
Kansas City Southern de Mexico S.A. de C.V., | | | | | | | | |
2.350%, 5–15–20 | | | 873 | | | | 880 | |
| | | | | | | | |
| |
Trucking – 0.1% | |
Ryder System, Inc., | | | | | | | | |
2.450%, 11–15–18 | | | 2,150 | | | | 2,187 | |
| | | | | | | | |
| |
Total Industrials – 1.3% | | | | 35,608 | |
Information Technology | |
| |
Data Processing & Outsourced Services – 0.1% | |
Fiserv, Inc., | | | | | | | | |
2.700%, 6–1–20 | | | 2,900 | | | | 2,990 | |
| | | | | | | | |
| |
Electronic Equipment & Instruments – 0.1% | |
FLIR Systems, Inc., | | | | | | | | |
3.125%, 6–15–21 | | | 3,600 | | | | 3,716 | |
| | | | | | | | |
| |
Semiconductor Equipment – 0.2% | |
Lam Research Corp., | | | | | | | | |
3.450%, 6–15–23 | | | 4,200 | | | | 4,297 | |
| | | | | | | | |
| |
Semiconductors – 1.4% | |
Micron Technology, Inc., | | | | | | | | |
5.500%, 2–1–25 | | | 8,081 | | | | 7,920 | |
Micron Technology, Inc., Convertible, | | | | | | | | |
3.000%, 11–15–43 | | | 33,500 | | | | 29,773 | |
| | | | | | | | |
| | | | | | | 37,693 | |
| | | | | | | | |
| |
Systems Software – 0.2% | |
Oracle Corp., | | | | | | | | |
2.250%, 10–8–19 | | | 5,300 | | | | 5,431 | |
| | | | | | | | |
| |
Total Information Technology – 2.0% | | | | 54,127 | |
Materials | |
| |
Construction Materials – 0.6% | |
Hillman Group, Inc. (The), | | | | | | | | |
6.375%, 7–15–22 (B) | | | 16,330 | | | | 15,309 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Diversified Chemicals – 0.1% | |
Solvay Finance (America) LLC (GTD by Solvay S.A.), | | | | | | | | |
3.400%, 12–3–20 (B) | | $ | 3,250 | | | $ | 3,402 | |
| | | | | | | | |
| |
Diversified Metals & Mining – 0.1% | |
Anglo American plc, | | | | | | | | |
4.125%, 4–15–21 (B) | | | 2,200 | | | | 2,211 | |
| | | | | | | | |
| |
Specialty Chemicals – 0.1% | |
Albemarle Corp. (GTD by Albemarle Holdings Corp. and Albemarle Holdings II Corp.), | | | | | | | | |
3.000%, 12–1–19 | | | 1,650 | | | | 1,702 | |
RPM International, Inc., | | | | | | | | |
3.450%, 11–15–22 | | | 1,000 | | | | 1,024 | |
| | | | | | | | |
| | | | | | | 2,726 | |
| | | | | | | | |
| |
Total Materials – 0.9% | | | | 23,648 | |
Real Estate | |
| |
Specialized REITs – 0.2% | |
Crown Castle International Corp.: | | | | | | | | |
5.250%, 1–15–23 | | | 1,046 | | | | 1,185 | |
3.700%, 6–15–26 | | | 3,000 | | | | 3,132 | |
| | | | | | | | |
| | | | | | | 4,317 | �� |
| | | | | | | | |
| |
Total Real Estate – 0.2% | | | | 4,317 | |
Telecommunication Services | |
| |
Integrated Telecommunication Services – 0.8% | |
AT&T, Inc.: | | | | | | | | |
2.300%, 3–11–19 | | | 9,000 | | | | 9,151 | |
4.125%, 2–17–26 | | | 8,400 | | | | 9,082 | |
Verizon Communications, Inc., | | | | | | | | |
2.625%, 2–21–20 | | | 2,468 | | | | 2,538 | |
| | | | | | | | |
| | | | | | | 20,771 | |
| | | | | | | | |
| |
Wireless Telecommunication Service – 0.5% | |
American Tower Corp.: | | | | | | | | |
2.250%, 1–15–22 | | | 8,700 | | | | 8,683 | |
4.700%, 3–15–22 | | | 1,400 | | | | 1,556 | |
3.375%, 10–15–26 | | | 3,900 | | | | 3,956 | |
Virgin Media Finance plc, | | | | | | | | |
4.875%, 2–15–22 | | | 284 | | | | 241 | |
| | | | | | | | |
| | | | | | | 14,436 | |
| | | | | | | | |
| |
Total Telecommunication Services – 1.3% | | | | 35,207 | |
Utilities | |
| |
Electric Utilities – 0.9% | |
Electricite de France S.A., | | | | | | | | |
2.150%, 1–22–19 (B) | | | 4,000 | | | | 4,057 | |
Entergy Texas, Inc., | | | | | | | | |
2.550%, 6–1–21 | | | 3,900 | | | | 4,011 | |
Exelon Corp., | | | | | | | | |
2.450%, 4–15–21 | | | 3,600 | | | | 3,672 | |
Georgia Power Co., | | | | | | | | |
2.400%, 4–1–21 | | | 3,000 | | | | 3,086 | |
| | | | | | |
| 18 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Electric Utilities (Continued) | | | | | | | | |
PPL Energy Supply LLC, | | | | | | | | |
4.600%, 12–15–21 | | $ | 2,800 | | | $ | 2,079 | |
Southern Co. (The), | | | | | | | | |
2.950%, 7–1–23 | | | 6,000 | | | | 6,208 | |
| | | | | | | | |
| | | | | | | 23,113 | |
| | | | | | | | |
| |
Gas Utilities – 0.2% | |
Sempra Energy, | | | | | | | | |
2.400%, 3–15–20 | | | 4,150 | | | | 4,228 | |
| | | | | | | | |
| |
Independent Power Producers & Energy Traders –0.3% | |
Canadian Solar, Inc., Convertible, | | | | | | | | |
4.250%, 2–15–19 | | | 10,000 | | | | 8,975 | |
| | | | | | | | |
| |
Multi-Utilities – 0.2% | |
Dominion Resources, Inc., | | | | | | | | |
2.500%, 12–1–19 | | | 4,000 | | | | 4,096 | |
Public Service Electric and Gas Co., | | | | | | | | |
2.250%, 9–15–26 | | | 2,100 | | | | 2,094 | |
| | | | | | | | |
| | | | | | | 6,190 | |
| | | | | | | | |
| |
Total Utilities – 1.6% | | | | 42,506 | |
| |
TOTAL CORPORATE DEBT SECURITIES – 29.4% | | | $ | 791,663 | |
(Cost: $779,117) | |
| | |
| LOANS (C) | | | | | | |
Industrials | |
| |
Industrial Machinery – 0.2% | |
Dynacast International LLC, | | | | | | | | |
9.500%, 1–30–23 | | | 5,426 | | | | 5,290 | |
| | | | | | | | |
| |
Total Industrials – 0.2% | | | | 5,290 | |
| |
TOTAL LOANS – 0.2% | | | $ | 5,290 | |
(Cost: $5,316) | |
| | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS | | | | | | |
| |
Mortgage-Backed Obligations – 0.0% | |
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | | | | | | | | |
6.000%, 9–1–17 | | | 10 | | | | 10 | |
5.000%, 1–1–18 | | | 7 | | | | 7 | |
6.500%, 10–1–28 | | | 41 | | | | 47 | |
6.500%, 2–1–29 | | | 6 | | | | 7 | |
7.000%, 11–1–31 | | | 49 | | | | 58 | |
6.500%, 2–1–32 | | | 36 | | | | 42 | |
7.000%, 2–1–32 | | | 53 | | | | 62 | |
7.000%, 3–1–32 | | | 24 | | | | 29 | |
7.000%, 7–1–32 | | | 29 | | | | 34 | |
6.500%, 9–1–32 | | | 28 | | | | 32 | |
5.500%, 5–1–33 | | | 25 | | | | 28 | |
5.500%, 6–1–33 | | | 23 | | | | 26 | |
| | | | | | | | |
| | | | | | | 382 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.0% | | | $ | 382 | |
(Cost: $337) | |
| | | | | | | | |
UNITED STATES GOVERNMENT
OBLIGATIONS | | Principal | | | Value | |
| |
Treasury Inflation Protected Obligations – 3.1% | |
U.S. Treasury Notes: | | | | | | | | |
0.125%, 7–15–26 | | $ | 29,115 | | | $ | 29,475 | |
2.125%, 2–15–40 | | | 25,831 | | | | 34,502 | |
1.000%, 2–15–46 | | | 17,672 | | | | 19,643 | |
| | | | | | | | |
| | | | | | | 83,620 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 3.1% | | | $ | 83,620 | |
(Cost: $81,600) | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
| |
Commercial Paper (D) – 6.2% | |
Becton Dickinson & Co., | | | | | | | | |
0.850%, 11–16–16 | | | 5,000 | | | | 4,994 | |
Clorox Co. (The), | | | | | | | | |
0.761%, 10–3–16 | | | 7,200 | | | | 7,200 | |
E.I. du Pont de Nemours and Co., | | | | | | | | |
0.760%, 10–17–16 | | | 10,000 | | | | 9,996 | |
Ecolab, Inc., | | | | | | | | |
0.700%, 10–6–16 | | | 10,000 | | | | 9,999 | |
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.): | | | | | | | | |
0.650%, 10–4–16 | | | 10,000 | | | | 9,999 | |
0.790%, 10–19–16 | | | 10,000 | | | | 9,996 | |
Malayan Banking Berhad
(GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.460%, 10–12–16 | | | 4,000 | | | | 3,999 | |
Medtronic Global Holdings SCA: | | | | | | | | |
0.720%, 10–3–16 | | | 7,000 | | | | 7,000 | |
0.740%, 11–14–16 | | | 5,000 | | | | 4,995 | |
NBCUniversal Enterprise, Inc.: | | | | | | | | |
0.790%, 10–19–16 | | | 10,000 | | | | 9,996 | |
0.830%, 11–9–16 | | | 5,000 | | | | 4,995 | |
Pricoa Short Term Funding LLC: | | | | | | | | |
0.570%, 11–4–16 | | | 10,000 | | | | 9,994 | |
0.600%, 11–10–16 | | | 15,000 | | | | 14,990 | |
Regents of the University of California (The), | | | | | | | | |
0.580%, 10–18–16 | | | 10,000 | | | | 9,997 | |
River Fuel Co. #2, Inc.
(GTD by Bank of Nova Scotia), | | | | | | | | |
0.580%, 10–31–16 | | | 5,000 | | | | 4,998 | |
River Fuel Funding Co. #3, Inc.
(GTD by Bank of Nova Scotia), | | | | | | | | |
0.500%, 10–14–16 | | | 7,000 | | | | 6,999 | |
San Francisco City and Cnty, Pub Util Comnty Water Rev, Series A1T (Taxable), (GTD by Royal Bank of Canada), | | | | | | | | |
0.760%, 10–18–16 | | | 7,000 | | | | 7,000 | |
United Technologies Corp., | | | | | | | | |
0.810%, 10–27–16 | | | 8,010 | | | | 8,005 | |
Virginia Electric and Power Co.: | | | | | | | | |
0.700%, 10–4–16 | | | 5,000 | | | | 5,000 | |
0.600%, 10–6–16 | | | 15,000 | | | | 14,998 | |
| | | | | | | | |
| | | | | | | 165,150 | |
| | | | | | | | |
Master Note – 0.1% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (E) | | | 2,223 | | | | 2,223 | |
| | | | | | | | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Municipal Obligations – 2.4% | |
CA GO Bonds, Ser 2004B6
(GTD by U.S. Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (E) | | $ | 5,400 | | | $ | 5,400 | |
CA Infra and Econ Dev Bank, Var Rate Demand Rfdg Rev Bonds (LA Cnty Mus of Nat Hist Fndtn), Ser 2008A
(GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.780%, 10–1–16 (E) | | | 4,900 | | | | 4,900 | |
Dev Auth of Monroe Cnty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.), | | | | | | | | |
0.930%, 10–1–16 (E) | | | 10,000 | | | | 10,000 | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.800%, 10–7–16 (E) | | | 5,000 | | | | 5,000 | |
MS Business Fin Corp., Gulf Opp Zone Indl Dev Rev Bonds (Chevron USA, Inc. Proj), Ser 2007D (GTD by Chevron Corp.), | | | | | | | | |
0.830%, 10–1–16 (E) | | | 18,000 | | | | 18,000 | |
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.780%, 10–7–16 | | | 8,000 | | | | 8,000 | |
Muni Impvt Corp. of Los Angeles, Lease Rev, Ser B-1 (Taxable), (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.750%, 10–19–16 | | | 8,300 | | | | 8,299 | |
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.780%, 10–7–16 (E) | | | 5,500 | | | | 5,500 | |
| | | | | | | | |
| | | | | | | 65,099 | |
| | | | | | | | |
| |
United States Government Agency Obligations – 0.1% | |
Overseas Private Investment Corp. (GTD by U.S. Government): | | | | | | | | |
0.760%, 10–5–16 (E) | | | 736 | | | | 737 | |
0.800%, 10–5–16 (E) | | | 3,275 | | | | 3,275 | |
| | | | | | | | |
| | | | | | | 4,012 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 8.8% | | | $ | 236,484 | |
(Cost: $236,488) | |
| |
TOTAL INVESTMENT
SECURITIES – 100.8% | | | $ | 2,716,251 | |
(Cost: $2,490,076) | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.8)% | | | | (21,552 | ) |
| |
NET ASSETS – 100.0% | | | $ | 2,694,699 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 19 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BALANCED FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016 the total value of these securities amounted to $201,980 or 7.5% of net assets. |
| (C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (D) | Rate shown is the yield to maturity at September 30, 2016. |
| (E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 1,437,130 | | | $ | — | | | $ | — | |
Preferred Stocks | | | 147,120 | | | | 14,562 | | | | — | |
Corporate Debt Securities | | | — | | | | 791,663 | | | | — | |
Loans | | | — | | | | — | | | | 5,290 | |
United States Government Agency Obligations | | | — | | | | 382 | | | | — | |
United States Government Obligations | | | — | | | | 83,620 | | | | — | |
Short-Term Securities | | | — | | | | 236,484 | | | | — | |
Total | | $ | 1,584,250 | | | $ | 1,126,711 | | | $ | 5,290 | |
During the period ended September 30, 2016, there were no transfers between any levels.
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.
| | | | | | |
| 20 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY ENERGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.1% | |
Energy | | | 95.6% | |
Materials | | | 1.9% | |
Information Technology | | | 1.6% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.9% | |
Lipper Rankings
| | | | | | |
Category: Lipper Natural Resources
Funds | | Rank | | Percentile | |
1 Year | | 30/90 | | | 33 | |
3 Year | | 32/78 | | | 41 | |
5 Year | | 19/65 | | | 29 | |
10 Year | | 13/50 | | | 26 | |
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 | | | 96.0% | |
United States | | | 94.0% | |
Other North America | | | 2.0% | |
Europe | | | 3.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.9% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Continental Resources, Inc. | | United States | | Energy | | Oil & Gas Exploration & Production |
Schlumberger Ltd. | | United States | | Energy | | Oil & Gas Equipment & Services |
Parsley Energy, Inc., Class A | | United States | | Energy | | Oil & Gas Exploration & Production |
Pioneer Natural Resources Co. | | United States | | Energy | | Oil & Gas Exploration & Production |
Halliburton Co. | | United States | | Energy | | Oil & Gas Equipment & Services |
U.S. Silica Holdings, Inc. | | United States | | Energy | | Oil & Gas Equipment & Services |
EOG Resources, Inc. | | United States | | Energy | | Oil & Gas Exploration & Production |
Anadarko Petroleum Corp. | | United States | | Energy | | Oil & Gas Exploration & Production |
Cimarex Energy Co. | | United States | | Energy | | Oil & Gas Exploration & Production |
Newfield Exploration Co. | | United States | | Energy | | Oil & Gas Exploration & Production |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 21 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY ENERGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Energy | |
| |
Integrated Oil & Gas – 5.0% | |
Chevron Corp. | | | 47 | | | $ | 4,786 | |
Exxon Mobil Corp. | | | 135 | | | | 11,783 | |
Royal Dutch Shell plc, Class A (A) | | | 195 | | | | 4,855 | |
Suncor Energy, Inc. | | | 181 | | | | 5,031 | |
| | | | | | | | |
| | | | | | | 26,455 | |
| | | | | | | | |
| |
Oil & Gas Drilling – 2.5% | |
Patterson-UTI Energy, Inc. | | | 583 | | | | 13,043 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 26.2% | |
Baker Hughes, Inc. | | | 357 | | | | 18,010 | |
Core Laboratories N.V. | | | 103 | | | | 11,604 | |
FMC Technologies, Inc. (B) | | | 89 | | | | 2,645 | |
Forum Energy Technologies, Inc. (B) | | | 627 | | | | 12,446 | |
Halliburton Co. | | | 518 | | | | 23,262 | |
RPC, Inc. (B) | | | 663 | | | | 11,134 | |
Schlumberger Ltd. | | | 315 | | | | 24,802 | |
Superior Energy Services, Inc. | | | 774 | | | | 13,863 | |
U.S. Silica Holdings, Inc. | | | 471 | | | | 21,946 | |
| | | | | | | | |
| | | | | | | 139,712 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 53.6% | |
Anadarko Petroleum Corp. | | | 337 | | | | 21,360 | |
Cimarex Energy Co. | | | 159 | | | | 21,358 | |
Concho Resources, Inc. (B) | | | 144 | | | | 19,723 | |
Continental Resources, Inc. (B) | | | 490 | | | | 25,481 | |
Devon Energy Corp. | | | 182 | | | | 8,032 | |
Diamondback Energy, Inc. (B) | | | 148 | | | | 14,302 | |
EOG Resources, Inc. | | | 224 | | | | 21,639 | |
Gulfport Energy Corp. (B) | | | 211 | | | | 5,948 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Oil & Gas Exploration & Production (Continued) | |
Laredo Petroleum Holdings, Inc. (B) | | | 743 | | | $ | 9,582 | |
Marathon Oil Corp. | | | 735 | | | | 11,615 | |
Newfield Exploration Co. (B) | | | 471 | | | | 20,465 | |
Noble Energy, Inc. | | | 72 | | | | 2,570 | |
Oasis Petroleum LLC (B) | | | 1,268 | | | | 14,541 | |
Parsley Energy, Inc., Class A (B) | | | 722 | | | | 24,182 | |
Pioneer Natural Resources Co. | | | 127 | | | | 23,615 | |
Range Resources Corp. | | | 162 | | | | 6,285 | |
RSP Permian, Inc. (B) | | | 436 | | | | 16,902 | |
Whiting Petroleum Corp. (B) | | | 1,099 | | | | 9,606 | |
WPX Energy, Inc. (B) | | | 634 | | | | 8,366 | |
| | | | | | | | |
| | | | | | | 285,572 | |
| | | | | | | | |
| |
Oil & Gas Refining & Marketing – 2.1% | |
Marathon Petroleum Corp. | | | 55 | | | | 2,245 | |
MPLX L.P. | | | 177 | | | | 5,995 | |
Phillips 66 | | | 33 | | | | 2,661 | |
| | | | | | | | |
| | | | | | | 10,901 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 6.2% | |
Enbridge, Inc. | | | 121 | | | | 5,366 | |
Enterprise Products Partners L.P. | | | 291 | | | | 8,048 | |
Phillips 66 Partners L.P. | | | 122 | | | | 5,932 | |
Shell Midstream Partners L.P. | | | 70 | | | | 2,233 | |
Tallgrass Energy GP L.P., Class A | | | 409 | | | | 9,842 | |
Valero Energy Partners L.P. | | | 40 | | | | 1,741 | |
| | | | | | | | |
| | | | | | | 33,162 | |
| | | | | | | | |
| |
Total Energy – 95.6% | | | | 508,845 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Information Technology | |
| |
Data Processing & Outsourced Services – 1.6% | |
Wright Express Corp. (B) | | | 79 | | | $ | 8,572 | |
| | | | | | | | |
| |
Total Information Technology – 1.6% | | | | 8,572 | |
Materials | |
| |
Specialty Chemicals – 1.9% | |
Flotek Industries,
Inc. (B)(C) | | | 142 | | | | 2,068 | |
Flotek Industries, Inc. (B) | | | 558 | | | | 8,120 | |
| | | | | | | | |
| | | | | | | 10,188 | |
| | | | | | | | |
| |
Total Materials – 1.9% | | | | 10,188 | |
| |
TOTAL COMMON STOCKS – 99.1% | | | $ | 527,605 | |
(Cost: $439,945) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Master Note – 1.1% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (D) | | $ | 5,642 | | | | 5,642 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 1.1% | | | $ | 5,642 | |
(Cost: $5,642) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.2% | | | $ | 533,247 | |
(Cost: $445,587) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% | | | | (850 | ) |
| |
NET ASSETS – 100.0% | | | $ | 532,397 | |
Notes to Schedule of Investments
| (A) | Listed on an exchange outside the United States. |
| (B) | No dividends were paid during the preceding 12 months. |
| (C) | 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, 2016 the total value of these securities amounted to $2,068 or 0.4% of net assets. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 527,605 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 5,642 | | | | — | |
Total | | $ | 527,605 | | | $ | 5,642 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
| | | | | | |
| 22 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY ENERGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Country Diversification
| | | | |
(as a % of net assets) | |
United States | | | 94.0% | |
Netherlands | | | 2.2% | |
Canada | | | 2.0% | |
Other Countries | | | 0.9% | |
Other+ | | | 0.9% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 23 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY GLOBAL NATURAL RESOURCES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 94.6% | |
Energy | | | 66.9% | |
Materials | | | 23.1% | |
Industrials | | | 4.6% | |
Utilities | | | 0.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 5.4% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Natural
Resources Funds | | Rank | | Percentile | |
1 Year | | 105/137 | | | 77 | |
3 Year | | 65/130 | | | 50 | |
5 Year | | 49/115 | | | 43 | |
10 Year | | 44/55 | | | 79 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
North America | | | 84.6% | |
United States | | | 79.1% | |
Canada | | | 5.5% | |
Europe | | | 10.0% | |
United Kingdom | | | 9.0% | |
Other Europe | | | 1.0% | |
Pacific Basin | | | 0.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 5.4% | |
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 |
EOG Resources, Inc. | | United States | | Energy | �� | Oil & Gas Exploration & Production |
Concho Resources, Inc. | | United States | | Energy | | Oil & Gas Exploration & Production |
Chevron Corp. | | United States | | Energy | | Integrated Oil & Gas |
BHP Billiton plc | | United Kingdom | | Materials | | Diversified Metals & Mining |
Enterprise Products Partners L.P. | | United States | | Energy | | Oil & Gas Storage & Transportation |
Pioneer Natural Resources Co. | | United States | | Energy | | Oil & Gas Exploration & Production |
Cimarex Energy Co. | | United States | | Energy | | Oil & Gas Exploration & Production |
Flowserve Corp. | | United States | | Industrials | | Industrial Machinery |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 24 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL NATURAL RESOURCES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Canada | |
| |
Energy – 2.0% | |
Suncor Energy, Inc. | | | 529 | | | $ | 14,679 | |
| | | | | | | | |
| |
Materials – 3.5% | |
Potash Corp. of Saskatchewan, Inc. | | | 1,175 | | | | 19,174 | |
West Fraser Timber Co. Ltd. | | | 222 | | | | 6,835 | |
| | | | | | | | |
| | | | | | | 26,009 | |
| | | | | | | | |
| |
Total Canada – 5.5% | | | | 40,688 | |
China | |
| | |
Materials – 0.0% | | | | | | | | |
China Metal Recycling (Holdings) Ltd. (A) | | | 30,000 | | | | — | |
| | | | | | | | |
| |
Total China – 0.0% | | | | — | |
Netherlands | |
| | |
Energy – 1.0% | | | | | | | | |
Core Laboratories N.V. | | | 62 | | | | 6,976 | |
| | | | | | | | |
| |
Total Netherlands – 1.0% | | | | 6,976 | |
United Kingdom | |
| | |
Materials – 9.0% | | | | | | | | |
BHP Billiton plc | | | 1,774 | | | | 26,723 | |
Randgold Resources Ltd. ADR | | | 200 | | | | 19,985 | |
Rio Tinto plc | | | 596 | | | | 19,903 | |
| | | | | | | | |
| | | | | | | 66,611 | |
| | | | | | | | |
| |
Total United Kingdom – 9.0% | | | | 66,611 | |
United States | |
| | |
Energy – 63.9% | | | | | | | | |
Baker Hughes, Inc. | | | 248 | | | | 12,514 | |
Cabot Oil & Gas Corp. | | | 625 | | | | 16,122 | |
Chevron Corp. | | | 268 | | | | 27,557 | |
Cimarex Energy Co. | | | 181 | | | | 24,294 | |
Concho Resources, Inc. (A) | | | 209 | | | | 28,713 | |
Continental Resources, Inc. (A) | | | 315 | | | | 16,360 | |
Diamondback Energy, Inc. (A) | | | 100 | | | | 9,611 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Energy (Continued) | | | | | | | | |
Enterprise Products Partners L.P. | | | 921 | | | $ | 25,457 | |
EOG Resources, Inc. | | | 349 | | | | 33,757 | |
EQT Midstream Partners L.P. | | | 95 | | | | 7,268 | |
Exxon Mobil Corp. | | | 214 | | | | 18,717 | |
Halliburton Co. | | | 1,099 | | | | 49,319 | |
Helmerich & Payne, Inc. | | | 237 | | | | 15,953 | |
Magellan Midstream Partners L.P. | | | 303 | | | | 21,420 | |
Marathon Petroleum Corp. | | | 186 | | | | 7,554 | |
MPLX L.P. | | | 216 | | | | 7,300 | |
Noble Energy, Inc. | | | 528 | | | | 18,855 | |
Patterson-UTI Energy, Inc. | | | 848 | | | | 18,967 | |
Phillips 66 | | | 156 | | | | 12,550 | |
Pioneer Natural Resources Co. | | | 134 | | | | 24,896 | |
RPC, Inc. (A) | | | 1,193 | | | | 20,047 | |
Schlumberger Ltd. | | | 549 | | | | 43,194 | |
Shell Midstream Partners L.P. | | | 119 | | | | 3,831 | |
U.S. Silica Holdings, Inc. | | | 109 | | | | 5,082 | |
Valero Energy Partners L.P. | | | 36 | | | | 1,555 | |
| | | | | | | | |
| | | | | | | 470,893 | |
| | | | | | | | |
| |
Industrials – 4.6% | |
Flowserve Corp. | | | 467 | | | | 22,516 | |
Union Pacific Corp. | | | 120 | | | | 11,665 | |
| | | | | | | | |
| | | | | | | 34,181 | |
| | | | | | | | |
| |
Materials – 8.2% | |
Air Products and Chemicals, Inc. | | | 120 | | | | 18,048 | |
Dow Chemical Co. (The) | | | 403 | | | | 20,872 | |
Sherwin-Williams Co. (The) | | | 52 | | | | 14,317 | |
Southern Copper Corp. | | | 282 | | | | 7,410 | |
| | | | | | | | |
| | | | | | | 60,647 | |
| | | | | | | | |
| |
Total United States – 76.7% | | | | 565,721 | |
| |
TOTAL COMMON STOCKS – 92.2% | | | $ | 679,996 | |
(Cost: $630,527) | |
| | |
| INVESTMENT FUNDS | | | | | | |
United States – 2.4% | |
SPDR Gold Trust (A) | | | 143 | | | | 18,004 | |
| | | | | | | | |
| |
TOTAL INVESTMENT FUNDS – 2.4% | | | $ | 18,004 | |
(Cost: $16,971) | |
| | | | | | | | |
| PREFERRED STOCKS | | Shares | | | Value | |
United States | |
| |
Utilities – 0.0% | |
Konarka Technologies, Inc., 8.000%, Convertible (A)(B) | | | 3,500 | | | $ | — | |
| | | | | | | | |
| |
Total United States – 0.0% | | | | — | |
| |
TOTAL PREFERRED STOCKS – 0.0% | | | $ | — | |
(Cost: $10,850) | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (C) – 5.2% | | | | | |
BorgWarner, Inc. | | | | | | | | |
0.700%, 10–6–16 | | $ | 10,000 | | | | 9,999 | |
Kroger Co. (The) | | | | | | | | |
0.630%, 10–3–16 | | | 10,000 | | | | 9,999 | |
McCormick & Co., Inc. | | | | | | | | |
0.500%, 10–3–16 | | | 5,000 | | | | 5,000 | |
St. Jude Medical, Inc. | | | | | | | | |
0.700%, 10–3–16 | | | 3,562 | | | | 3,562 | |
Wisconsin Gas LLC | | | | | | | | |
0.460%, 10–7–16 | | | 10,000 | | | | 9,999 | |
| | | | | | | | |
| | | | | | | 38,559 | |
| | | | | | | | |
| |
Master Note – 0.4% | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (D) | | | 2,683 | | | | 2,683 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 5.6% | | | $ | 41,242 | |
(Cost: $41,243) | |
| |
TOTAL INVESTMENT SECURITIES – 100.2% | | | $ | 739,242 | |
(Cost: $699,591) | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.2)% | | | | (1,569 | ) |
| |
NET ASSETS – 100.0% | | | $ | 737,673 | |
Notes to Schedule of Investments
| (A) | No dividends were paid during the preceding 12 months. |
| (B) | Restricted security. At September 30, 2016, the Fund owned the following restricted security: |
| | | | | | | | | | |
| Security | | Acquisition Date(s) | | Shares | | Cost | | | Market Value |
| Konarka Technologies, Inc., 8.000%, Convertible | | 8–31–07 | | 3,500 | | $ | 10,850 | | | $ — |
| | | | | | | |
The total value of this security represented 0.0% of net assets at September 30, 2016.
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 25 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL NATURAL RESOURCES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| British Pound | | | 32,474 | | | U.S. Dollar | | | 42,592 | | | 10–26–16 | | UBS AG | | $ | 481 | | | $ | — | | | | | |
| Canadian Dollar | | | 29,008 | | | U.S. Dollar | | | 22,281 | | | 10–26–16 | | UBS AG | | | 167 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 648 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 679,996 | | | $ | — | | | $ | — | |
Investment Funds | | | 18,004 | | | | — | | | | — | |
Preferred Stocks | | | — | | | | — | | | | — | |
Short-Term Securities | | | — | | | | 41,242 | | | | — | |
Total | | $ | 698,000 | | | $ | 41,242 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 648 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
ADR = American Depositary Receipts
Market Sector Diversification
| | | | |
(as a % of net assets) | |
Energy | | | 66.9% | |
Materials | | | 23.1% | |
Industrials | | | 4.6% | |
Utilities | | | 0.0% | |
Other+ | | | 5.4% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 26 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY LASALLE GLOBAL REAL ESTATE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 98.1% | |
Real Estate | | | 98.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 1.9% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Real Estate
Funds | | Rank | | Percentile | |
1 Year | | 167/178 | | | 94 | |
3 Year | | 113/134 | | | 84 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
North America | | | 56.3% | |
United States | | | 54.4% | |
Other North America | | | 1.9% | |
Pacific Basin | | | 27.0% | |
Japan | | | 12.7% | |
Hong Kong | | | 9.4% | |
Australia | | | 3.9% | |
Other Pacific Basin | | | 1.0% | |
Europe | | | 14.8% | |
United Kingdom | | | 5.8% | |
Other Europe | | | 9.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 1.9% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Simon Property Group, Inc. | | United States | | Real Estate | | Retail REITs |
Equity Residential | | United States | | Real Estate | | Residential REITs |
Mitsui Fudosan Co. Ltd. | | Japan | | Real Estate | | Diversified Real Estate Activities |
Mitsubishi Estate Co. Ltd. | | Japan | | Real Estate | | Diversified Real Estate Activities |
Sun Hung Kai Properties Ltd. | | Hong Kong | | Real Estate | | Diversified Real Estate Activities |
Welltower, Inc. | | United States | | Real Estate | | Health Care REITs |
AvalonBay Communities, Inc. | | United States | | Real Estate | | Residential REITs |
Boston Properties, Inc. | | United States | | Real Estate | | Office REITs |
ProLogis | | United States | | Real Estate | | Industrial REITs |
Camden Property Trust | | United States | | Real Estate | | Residential REITs |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 27 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Australia | |
| |
Real Estate – 3.9% | |
GPT Group | | | 50 | | | $ | 194 | |
Mirvac Group | | | 163 | | | | 279 | |
Scentre Group | | | 100 | | | | 361 | |
Westfield Corp. | | | 77 | | | | 576 | |
| | | | | | | | |
| | | | | | | 1,410 | |
| | | | | | | | |
| |
Total Australia – 3.9% | | | | 1,410 | |
Austria | |
| |
Real Estate – 0.4% | |
Buwog AG | | | 6 | | | | 154 | |
| | | | | | | | |
| |
Total Austria – 0.4% | | | | 154 | |
Canada | |
| |
Real Estate – 1.7% | |
Canadian Apartment Properties REIT | | | 2 | | | | 44 | |
Canadian REIT | | | 3 | | | | 104 | |
Dream Office Real Estate Investment Trust | | | 1 | | | | 13 | |
H&R Real Estate Investment Trust | | | 13 | | | | 219 | |
RioCan | | | 7 | | | | 146 | |
SmartREIT | | | 3 | | | | 72 | |
| | | | | | | | |
| | | | | | | 598 | |
| | | | | | | | |
| |
Total Canada – 1.7% | | | | 598 | |
France | |
| |
Real Estate – 3.4% | |
Gecina | | | 1 | | | | 212 | |
Mercialys S.A. | | | 6 | | | | 153 | |
Unibail-Rodamco | | | 3 | | | | 853 | |
| | | | | | | | |
| | | | | | | 1,218 | |
| | | | | | | | |
| |
Total France – 3.4% | | | | 1,218 | |
Germany | |
| |
Real Estate – 2.3% | |
Ado Properties S.A. | | | 4 | | | | 153 | |
alstria office AG | | | 10 | | | | 142 | |
Deutsche EuroShop AG | | | 2 | | | | 103 | |
Deutsche Wohnen AG | | | 12 | | | | 427 | |
| | | | | | | | |
| | | | | | | 825 | |
| | | | | | | | |
| |
Total Germany – 2.3% | | | | 825 | |
Hong Kong | |
| |
Real Estate – 9.4% | |
Hongkong Land Holdings Ltd. | | | 74 | | | | 525 | |
Link (The) | | | 96 | | | | 702 | |
Sun Hung Kai Properties Ltd. | | | 102 | | | | 1,540 | |
Swire Properties Ltd. | | | 209 | | | | 611 | |
| | | | | | | | |
| | | | | | | 3,378 | |
| | | | | | | | |
| |
Total Hong Kong – 9.4% | | | | 3,378 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Japan | |
| |
Real Estate – 12.7% | |
AEON Mall Co. Ltd. | | | 2 | | | $ | 30 | |
Daiwa Office Investment Corp. | | | — | * | | | 208 | |
Global One Corp. | | | — | * | | | 88 | |
Ichigo Hotel Investment Corp. | | | — | * | | | 106 | |
Kenedix Office Investment Corp. | | | — | * | | | 227 | |
Mitsubishi Estate Co. Ltd. | | | 83 | | | | 1,545 | |
Mitsui Fudosan Co. Ltd. | | | 75 | | | | 1,580 | |
Mitsui Fudosan Logistics Park, Inc. (A) | | | — | * | | | 151 | |
ORIX JREIT, Inc. | | | — | * | | | 168 | |
Sumitomo Realty & Development Co. Ltd. | | | 8 | | | | 205 | |
Tokyu, Inc. | | | — | * | | | 243 | |
| | | | | | | | |
| | | | | | | 4,551 | |
| | | | | | | | |
| |
Total Japan – 12.7% | | | | 4,551 | |
Mexico | |
| |
Real Estate – 0.2% | |
Prologis Property Mexico S.A. de C.V. | | | 33 | | | | 54 | |
| | | | | | | | |
| |
Total Mexico – 0.2% | | | | 54 | |
Netherlands | |
| |
Real Estate – 0.2% | |
Vastned Retail N.V. | | | 2 | | | | 80 | |
| | | | | | | | |
| |
Total Netherlands – 0.2% | | | | 80 | |
Norway | |
| |
Real Estate – 0.4% | |
Entra ASA | | | 14 | | | | 160 | |
| | | | | | | | |
| |
Total Norway – 0.4% | | | | 160 | |
Singapore | |
| |
Real Estate – 1.0% | |
CapitaCommercial Trust | | | 45 | | | | 53 | |
CapitaLand Ltd. | | | 80 | | | | 186 | |
Global Logistic Properties Ltd. | | | 39 | | | | 53 | |
Mapletree Commercial Trust | | | 49 | | | | 58 | |
| | | | | | | | |
| | | | | | | 350 | |
| | | | | | | | |
| |
Total Singapore – 1.0% | | | | 350 | |
Spain | |
| |
Real Estate – 0.7% | |
Axiare Patrimonio SOCIMI S.A. | | | 4 | | | | 50 | |
Merlin Properties Socimi S.A. | | | 18 | | | | 210 | |
| | | | | | | | |
| | | | | | | 260 | |
| | | | | | | | |
| |
Total Spain – 0.7% | | | | 260 | |
Sweden | |
| |
Real Estate – 1.1% | |
Fabege AB | | | 13 | | | | 241 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate (Continued) | |
Hufvudstaden AB | | | 8 | | | $ | 140 | |
| | | | | | | | |
| | | | | | | 381 | |
| | | | | | | | |
| |
Total Sweden – 1.1% | | | | 381 | |
Switzerland | |
| |
Real Estate – 0.5% | |
PSP Swiss Property Ltd., Registered Shares | | | 2 | | | | 165 | |
| | | | | | | | |
| |
Total Switzerland – 0.5% | | | | 165 | |
United Kingdom | |
| |
Real Estate – 5.8% | |
Big Yellow Group plc | | | 13 | | | | 135 | |
Derwent London plc | | | 12 | | | | 421 | |
Great Portland Estates plc | | | 16 | | | | 131 | |
Hammerson plc | | | 38 | | | | 291 | |
Land Securities Group plc | | | 58 | | | | 796 | |
LondonMetric Property plc | | | 85 | | | | 177 | |
Shaftesbury plc | | | 9 | | | | 109 | |
| | | | | | | | |
| | | | | | | 2,060 | |
| | | | | | | | |
| |
Total United Kingdom – 5.8% | | | | 2,060 | |
United States | |
| |
Real Estate – 54.4% | |
Acadia Realty Trust | | | 4 | | | | 145 | |
American Assets Trust, Inc. | | | 1 | | | | 63 | |
American Campus Communities, Inc. | | | 2 | | | | 77 | |
American Tower Corp., Class A | | | 6 | | | | 704 | |
AvalonBay Communities, Inc. | | | 6 | | | | 1,120 | |
Boston Properties, Inc. | | | 8 | | | | 1,092 | |
Brixmor Property Group, Inc. | | | 17 | | | | 464 | |
Camden Property Trust | | | 11 | | | | 899 | |
Columbia Property Trust, Inc. | | | 3 | | | | 62 | |
Corporate Office Properties Trust | | | 10 | | | | 295 | |
Cousins Properties, Inc. | | | 9 | | | | 99 | |
Crown Castle International Corp. | | | 2 | | | | 181 | |
CubeSmart | | | 21 | | | | 563 | |
DuPont Fabros Technology, Inc. | | | 6 | | | | 245 | |
EastGroup Properties, Inc. | | | 2 | | | | 122 | |
Equinix, Inc. | | | 1 | | | | 232 | |
Equity Residential | | | 26 | | | | 1,659 | |
Federal Realty Investment Trust | | | 1 | | | | 189 | |
General Growth Properties, Inc. | | | 21 | | | | 593 | |
Healthcare Trust of America, Inc., Class A | | | 5 | | | | 163 | |
Host Hotels & Resorts, Inc. | | | 10 | | | | 158 | |
Hudson Pacific Properties, Inc. | | | 9 | | | | 288 | |
LaSalle Hotel Properties | | | 16 | | | | 372 | |
Life Storage, Inc. | | | 4 | | | | 367 | |
Paramount Group, Inc. | | | 16 | | | | 267 | |
ProLogis | | | 18 | | | | 952 | |
Public Storage, Inc. | | | 3 | | | | 588 | |
Retail Properties of America, Inc. | | | 17 | | | | 288 | |
RLJ Lodging Trust | | | 15 | | | | 309 | |
Senior Housing Properties Trust | | | 11 | | | | 248 | |
Simon Property Group, Inc. | | | 13 | | | | 2,634 | |
SL Green Realty Corp. | | | 4 | | | | 464 | |
| | | | | | |
| 28 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LASALLE GLOBAL REAL ESTATE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate (Continued) | |
Spirit Realty Capital, Inc. | | | 28 | | | $ | 379 | |
Sunstone Hotel Investors, Inc. | | | 23 | | | | 290 | |
Taubman Centers, Inc. | | | 5 | | | | 385 | |
VEREIT, Inc. | | | 20 | | | | 204 | |
Vornado Realty Trust | | | 9 | | | | 897 | |
Welltower, Inc. | | | 19 | | | | 1,456 | |
| | | | | | | | |
| | | | | | | 19,513 | |
| | | | | | | | |
| |
Total United States – 54.4% | | | | 19,513 | |
| |
TOTAL COMMON STOCKS – 98.1% | | | $ | 35,157 | |
(Cost: $32,355) | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Master Note – 0.8% | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (B) | | $ | 289 | | | $ | 289 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 0.8% | | | $ | 289 | |
(Cost: $289) | |
| |
TOTAL INVESTMENT SECURITIES – 98.9% | | | $ | 35,446 | |
(Cost: $32,644) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1% | | | | 395 | |
| |
NET ASSETS – 100.0% | | | $ | 35,841 | |
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, 2016. 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, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Assets | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | |
Common Stocks | | $ | 35,157 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 289 | | | | — | |
Total | | $ | 35,157 | | | $ | 289 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trusts
Market Sector Diversification
| | | | |
(as a % of net assets) | |
Real Estate | | | 98.1% | |
Other+ | | | 1.9% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 29 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 97.4% | |
Real Estate | | | 97.4% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.6% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Real
Estate Funds | | Rank | | Percentile | |
1 Year | | 17/178 | | | 10 | |
3 Year | | 7/134 | | | 6 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
North America | | | 56.6% | |
United States | | | 54.9% | |
Other North America | | | 1.7% | |
Pacific Basin | | | 25.8% | |
Japan | | | 9.5% | |
Hong Kong | | | 9.5% | |
Australia | | | 5.6% | |
Other Pacific Basin | | | 1.2% | |
Europe | | | 15.0% | |
United Kingdom | | | 6.0% | |
France | | | 3.5% | |
Other Europe | | | 5.5% | |
Cash and Other Assets (Net of Liabilities),
and Cash Equivalents+ | | | 2.6% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Simon Property Group, Inc. | | United States | | Real Estate | | Retail REITs |
Equity Residential | | United States | | Real Estate | | Residential REITs |
Welltower, Inc. | | United States | | Real Estate | | Health Care REITs |
Boston Properties, Inc. | | United States | | Real Estate | | Office REITs |
Swire Properties Ltd. | | Hong Kong | | Real Estate | | Real Estate Operating Companies |
Hongkong Land Holdings Ltd. | | Hong Kong | | Real Estate | | Real Estate Operating Companies |
AvalonBay Communities, Inc. | | United States | | Real Estate | | Residential REITs |
Public Storage, Inc. | | United States | | Real Estate | | Specialized REITs |
ProLogis | | United States | | Real Estate | | Industrial REITs |
Camden Property Trust | | United States | | Real Estate | | Residential REITs |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 30 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
SCHEDULE OF INVESTMENTS | | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND
(in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Australia | |
| |
Real Estate – 5.6% | |
GPT Group | | | 501 | | | $ | 1,939 | |
Scentre Group | | | 659 | | | | 2,371 | |
Westfield Corp. | | | 342 | | | | 2,548 | |
| | | | | | | | |
| | | | | | | 6,858 | |
| | | | | | | | |
| |
Total Australia – 5.6% | | | | 6,858 | |
Canada | |
| |
Real Estate – 1.7% | |
Allied Properties | | | 4 | | | | 110 | |
Boardwalk | | | 2 | | | | 92 | |
Canadian REIT | | | 19 | | | | 667 | |
RioCan | | | 36 | | | | 746 | |
SmartREIT | | | 17 | | | | 457 | |
| | | | | | | | |
| | | | | | | 2,072 | |
| | | | | | | | |
| |
Total Canada – 1.7% | | | | 2,072 | |
France | |
| |
Real Estate – 3.5% | |
Gecina | | | 5 | | | | 732 | |
Mercialys S.A. | | | 26 | | | | 628 | |
Unibail-Rodamco | | | 11 | | | | 2,996 | |
| | | | | | | | |
| | | | | | | 4,356 | |
| | | | | | | | |
| |
Total France – 3.5% | | | | 4,356 | |
Germany | |
| |
Real Estate – 2.9% | |
Ado Properties S.A. | | | 15 | | | | 596 | |
alstria office AG | | | 67 | | | | 917 | |
Deutsche EuroShop AG | | | 13 | | | | 593 | |
Deutsche Wohnen AG | | | 36 | | | | 1,308 | |
LEG Immobilien AG | | | 2 | | | | 222 | |
| | | | | | | | |
| | | | | | | 3,636 | |
| | | | | | | | |
| |
Total Germany – 2.9% | | | | 3,636 | |
Hong Kong | |
| |
Real Estate – 9.5% | |
Hongkong Land Holdings Ltd. | | | 641 | | | | 4,548 | |
Link (The) | | | 352 | | | | 2,587 | |
Swire Properties Ltd. | | | 1,560 | | | | 4,565 | |
| | | | | | | | |
| | | | | | | 11,700 | |
| | | | | | | | |
| |
Total Hong Kong – 9.5% | | | | 11,700 | |
Japan | |
| |
Real Estate – 9.5% | |
Activia Properties, Inc. | | | — | * | | | 503 | |
Comforia Residential, Inc. | | | — | * | | | 283 | |
Daiwa Office Investment Corp. | | | — | * | | | 1,586 | |
Hulic, Inc. | | | 1 | | | | 1,037 | |
Kenedix Office Investment Corp. | | | — | * | | | 2,427 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate (Continued) | |
Mitsui Fudosan Logistics Park, Inc. (A) | | | — | * | | $ | 466 | |
Nippon Building Fund, Inc. | | | — | * | | | 1,681 | |
ORIX JREIT, Inc. | | | 1 | | | | 2,595 | |
Sekisui House REIT, Inc. | | | — | * | | | 279 | |
Tokyu, Inc. | | | 1 | | | | 927 | |
| | | | | | | | |
| | | | | | | 11,784 | |
| | | | | | | | |
| |
Total Japan – 9.5% | | | | 11,784 | |
Netherlands | |
| |
Real Estate – 0.6% | |
Vastned Retail N.V. | | | 18 | | | | 728 | |
| | | | | | | | |
| |
Total Netherlands – 0.6% | | | | 728 | |
Singapore | |
| |
Real Estate – 1.2% | |
CapitaCommercial Trust | | | 402 | | | | 469 | |
CapitaMall Trust | | | 288 | | | | 458 | |
Mapletree Commercial Trust | | | 520 | | | | 610 | |
| | | | | | | | |
| | | | | | | 1,537 | |
| | | | | | | | |
| |
Total Singapore – 1.2% | | | | 1,537 | |
Spain | |
| |
Real Estate – 0.6% | |
Axiare Patrimonio SOCIMI S.A. | | | 57 | | | | 750 | |
| | | | | | | | |
| |
Total Spain – 0.6% | | | | 750 | |
Sweden | |
| |
Real Estate – 0.9% | |
Hufvudstaden AB | | | 67 | | | | 1,153 | |
| | | | | | | | |
| |
Total Sweden – 0.9% | | | | 1,153 | |
Switzerland | |
| |
Real Estate – 0.5% | |
PSP Swiss Property Ltd., Registered Shares | | | 6 | | | | 590 | |
| | | | | | | | |
| |
Total Switzerland – 0.5% | | | | 590 | |
| |
United Kingdom | |
| |
Real Estate – 6.0% | |
Big Yellow Group plc | | | 44 | | | | 441 | |
Derwent London plc | | | 46 | | | | 1,545 | |
Hammerson plc | | | 135 | | | | 1,029 | |
Land Securities Group plc | | | 207 | | | | 2,832 | |
LondonMetric Property plc | | | 367 | | | | 761 | |
Shaftesbury plc | | | 58 | | | | 733 | |
| | | | | | | | |
| | | | | | | 7,341 | |
| | | | | | | | |
| |
Total United Kingdom – 6.0% | | | | 7,341 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
United States | |
| |
Real Estate – 54.9% | |
Acadia Realty Trust | | | 12 | | | $ | 426 | |
American Assets Trust, Inc. | | | 15 | | | | 661 | |
American Campus Communities, Inc. | | | 21 | | | | 1,054 | |
AvalonBay Communities, Inc. | | | 22 | | | | 3,839 | |
Boston Properties, Inc. | | | 36 | | | | 4,931 | |
Brixmor Property Group, Inc. | | | 57 | | | | 1,589 | |
Camden Property Trust | | | 37 | | | | 3,097 | |
Corporate Office Properties Trust | | | 38 | | | | 1,066 | |
Cousins Properties, Inc. | | | 31 | | | | 323 | |
CubeSmart | | | 71 | | | | 1,932 | |
EastGroup Properties, Inc. | | | 15 | | | | 1,071 | |
Equity Residential | | | 98 | | | | 6,318 | |
Federal Realty Investment Trust | | | 10 | | | | 1,505 | |
General Growth Properties, Inc. | | | 81 | | | | 2,233 | |
Healthcare Trust of America, Inc., Class A | | | 23 | | | | 734 | |
Hudson Pacific Properties, Inc. | | | 36 | | | | 1,181 | |
Life Storage, Inc. | | | 14 | | | | 1,266 | |
National Retail Properties, Inc. | | | 23 | | | | 1,154 | |
Paramount Group, Inc. | | | 99 | | | | 1,623 | |
ProLogis | | | 63 | | | | 3,392 | |
Public Storage, Inc. | | | 17 | | | | 3,786 | |
Regency Centers Corp. | | | 12 | | | | 942 | |
Retail Properties of America, Inc. | | | 58 | | | | 972 | |
Senior Housing Properties Trust | | | 35 | | | | 800 | |
Simon Property Group, Inc. | | | 47 | | | | 9,775 | |
Spirit Realty Capital, Inc. | | | 87 | | | | 1,158 | |
Taubman Centers, Inc. | | | 23 | | | | 1,732 | |
Ventas, Inc. | | | 12 | | | | 814 | |
Vornado Realty Trust | | | 31 | | | | 3,091 | |
Welltower, Inc. | | | 71 | | | | 5,293 | |
| | | | | | | | |
| | | | | | | 67,758 | |
| | | | | | | | |
| |
Total United States – 54.9% | | | | 67,758 | |
| |
TOTAL COMMON STOCKS – 97.4% | | | $ | 120,263 | |
(Cost: $109,196) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Master Note – 2.0% | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (B) | | $ | 2,460 | | | | 2,460 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 2.0% | | | $ | 2,460 | |
(Cost: $2,460) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.4% | | | $ | 122,723 | |
(Cost: $111,656) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6% | | | | 762 | |
| |
NET ASSETS – 100.0% | | | $ | 123,485 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 31 | |
| | |
SCHEDULE OF INVESTMENTS | | IVY LASALLE GLOBAL RISK-MANAGED REAL ESTATE FUND
(in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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, 2016. 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 | | $ | 120,263 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 2,460 | | | | — | |
Total | | $ | 120,263 | | | $ | 2,460 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trusts
Market Sector Diversification
| | | | |
(as a % of net assets) | |
Real Estate | | | 97.4% | |
Other+ | | | 2.6% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 32 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY REAL ESTATE SECURITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 98.0% | |
Real Estate | | | 98.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.0% | |
Lipper Rankings
| | | | | | |
| Category: Lipper Real Estate Funds | | Rank | | Percentile | |
1 Year | | 180/264 | | | 68 | |
3 Year | | 100/231 | | | 44 | |
5 Year | | 106/202 | | | 53 | |
10 Year | | 93/132 | | | 70 | |
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. | | | | Real Estate | | Retail REITs |
Public Storage, Inc. | | | | Real Estate | | Specialized REITs |
ProLogis | | | | Real Estate | | Industrial REITs |
AvalonBay Communities, Inc. | | | | Real Estate | | Residential REITs |
Equinix, Inc. | | | | Real Estate | | Specialized REITs |
Welltower, Inc. | | | | Real Estate | | Health Care REITs |
Vornado Realty Trust | | | | Real Estate | | Office REITs |
General Growth Properties, Inc. | | | | Real Estate | | Retail REITs |
Ventas, Inc. | | | | Real Estate | | Health Care REITs |
Boston Properties, Inc. | | | | Real Estate | | Office REITs |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 33 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY REAL ESTATE SECURITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Real Estate | |
| |
Diversified REITs – 3.1% | |
Liberty Property Trust | | | 230 | | | $ | 9,276 | |
Spirit Realty Capital, Inc. | | | 306 | | | | 4,072 | |
STORE Capital Corp. | | | 307 | | | | 9,033 | |
| | | | | | | | |
| | | | | | | 22,381 | |
| | | | | | | | |
| |
Health Care REITs – 10.3% | |
Care Capital Properties, Inc. | | | 84 | | | | 2,380 | |
HCP, Inc. | | | 294 | | | | 11,142 | |
Physicians Realty Trust | | | 353 | | | | 7,593 | |
Ventas, Inc. | | | 282 | | | | 19,912 | |
Welltower, Inc. | | | 438 | | | | 32,749 | |
| | | | | | | | |
| | | | | | | 73,776 | |
| | | | | | | | |
| |
Hotel & Resort REITs – 3.0% | |
Host Hotels & Resorts, Inc. | | | 833 | | | | 12,975 | |
Pebblebrook Hotel Trust | | | 96 | | | | 2,559 | |
RLJ Lodging Trust | | | 144 | | | | 3,024 | |
Sunstone Hotel Investors, Inc. | | | 226 | | | | 2,896 | |
| | | | | | | | |
| | | | | | | 21,454 | |
| | | | | | | | |
| |
Industrial REITs – 9.0% | |
Duke Realty Corp. | | | 555 | | | | 15,163 | |
First Industrial Realty Trust, Inc. | | | 503 | | | | 14,186 | |
ProLogis | | | 653 | | | | 34,948 | |
| | | | | | | | |
| | | | | | | 64,297 | |
| | | | | | | | |
| |
Office REITs – 14.3% | |
Alexandria Real Estate Equities, Inc. | | | 173 | | | | 18,806 | |
Boston Properties, Inc. | | | 144 | | | | 19,558 | |
Brandywine Realty Trust | | | 471 | | | | 7,360 | |
Highwoods Properties, Inc. | | | 204 | | | | 10,653 | |
Kilroy Realty Corp. | | | 187 | | | | 12,952 | |
SL Green Realty Corp. | | | 58 | | | | 6,274 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Office REITs (Continued) | |
Vornado Realty Trust | | | 271 | | | $ | 27,378 | |
| | | | | | | | |
| | | | | | | 102,981 | |
| | | | | | | | |
| |
Residential REITs – 18.5% | |
American Campus Communities, Inc. | | | 317 | | | | 16,100 | |
Apartment Investment and Management Co., Class A | | | 46 | | | | 2,092 | |
AvalonBay Communities, Inc. | | | 195 | | | | 34,686 | |
Camden Property Trust | | | 125 | | | | 10,493 | |
Education Realty Trust, Inc. | | | 205 | | | | 8,826 | |
Equity Lifestyle Properties, Inc. | | | 82 | | | | 6,295 | |
Equity Residential | | | 232 | | | | 14,936 | |
Essex Property Trust, Inc. | | | 83 | | | | 18,567 | |
Mid-America Apartment Communities, Inc. | | | 74 | | | | 6,918 | |
Sun Communities, Inc. | | | 180 | | | | 14,103 | |
| | | | | | | | |
| | | | | | | 133,016 | |
| | | | | | | | |
| |
Retail REITs – 22.4% | |
Brixmor Property Group, Inc. | | | 414 | | | | 11,494 | |
DDR Corp. | | | 689 | | | | 12,008 | |
Federal Realty Investment Trust | | | 49 | | | | 7,520 | |
General Growth Properties, Inc. | | | 755 | | | | 20,850 | |
Kimco Realty Corp. | | | 550 | | | | 15,912 | |
Macerich Co. (The) | | | 78 | | | | 6,292 | |
Pennsylvania Real Estate Investment Trust | | | 214 | | | | 4,933 | |
Simon Property Group, Inc. | | | 349 | | | | 72,158 | |
Weingarten Realty Investors | | | 246 | | | | 9,577 | |
| | | | | | | | |
| | | | | | | 160,744 | |
| | | | | | | | |
| |
Specialized REITs – 17.4% | |
CubeSmart | | | 297 | | | | 8,086 | |
CyrusOne, Inc. | | | 292 | | | | 13,871 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Specialized REITs (Continued) | |
Digital Realty Trust, Inc. | | | 133 | | | $ | 12,888 | |
Equinix, Inc. | | | 96 | | | | 34,624 | |
Extra Space Storage, Inc. | | | 107 | | | | 8,505 | |
Life Storage, Inc. | | | 115 | | | | 10,246 | |
Public Storage, Inc. | | | 163 | | | | 36,416 | |
| | | | | | | | |
| | | | | | | 124,636 | |
| | | | | | | | |
| |
Total Real Estate – 98.0% | | | | 703,285 | |
| |
TOTAL COMMON STOCKS – 98.0% | | | $ | 703,285 | |
(Cost: $489,846) | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (A) – 1.3% | | | | | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | $ | 9,288 | | | | 9,288 | |
| | | | | | | | |
| |
Master Note – 0.4% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (B) | | | 3,083 | | | | 3,083 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 1.7% | | | $ | 12,371 | |
(Cost: $12,371) | |
| |
TOTAL INVESTMENT SECURITIES – 99.7% | | | $ | 715,656 | |
(Cost: $502,217) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.3% | | | | 2,251 | |
| |
NET ASSETS – 100.0% | | | $ | 717,907 | |
Notes to Schedule of Investments
| (A) | Rate shown is the yield to maturity at September 30, 2016. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 703,285 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 12,371 | | | | — | |
Total | | $ | 703,285 | | | $ | 12,371 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trusts
See Accompanying Notes to Financial Statements.
| | | | | | |
| 34 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY SCIENCE AND TECHNOLOGY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 98.6% | |
Information Technology | | | 72.2% | |
Health Care | | | 16.7% | |
Consumer Discretionary | | | 3.0% | |
Telecommunication Services | | | 2.0% | |
Real Estate | | | 2.0% | |
Utilities | | | 1.1% | |
Industrials | | | 0.9% | |
Materials | | | 0.6% | |
Consumer Staples | | | 0.1% | |
Warrants | | | 0.0% | |
Purchased Options | | | 0.0% | |
Bonds | | | 0.6% | |
Corporate Debt Securities | | | 0.6% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.8% | |
Lipper Rankings
| | | | | | |
Category: Lipper Science &
Technology Funds | | Rank | | Percentile | |
1 Year | | 151/161 | | | 94 | |
3 Year | | 140/148 | | | 94 | |
5 Year | | 96/141 | | | 68 | |
10 Year | | 38/117 | | | 33 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
North America | | | 81.5% | |
United States | | | 81.5% | |
Europe | | | 7.1% | |
Netherlands | | | 3.7% | |
Other Europe | | | 3.4% | |
Pacific Basin | | | 5.7% | |
India | | | 4.2% | |
Other Pacific Basin | | | 1.5% | |
Other | | | 3.6% | |
Israel | | | 3.6% | |
Bahamas/Caribbean | | | 1.3% | |
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Purchased Options | | | 0.8% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Micron Technology, Inc. | | United States | | Information Technology | | Semiconductors |
Alliance Data Systems Corp. | | United States | | Information Technology | | Data Processing & Outsourced Services |
Aspen Technology, Inc. | | United States | | Information Technology | | Application Software |
Euronet Worldwide, Inc. | | United States | | Information Technology | | Data Processing & Outsourced Services |
WNS (Holdings) Ltd. ADR | | India | | Information Technology | | Data Processing & Outsourced Services |
Microsemi Corp. | | United States | | Information Technology | | Semiconductors |
Microsoft Corp. | | United States | | Information Technology | | Systems Software |
Vertex Pharmaceuticals, Inc. | | United States | | Health Care | | Biotechnology |
ACI Worldwide, Inc. | | United States | | Information Technology | | Application Software |
NXP Semiconductors N.V. | | Netherlands | | Information Technology | | Semiconductors |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 35 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Consumer Electronics – 3.0% | |
Garmin Ltd. | | | 1,492 | | | $ | 71,794 | |
Harman International Industries, Inc. | | | 651 | | | | 54,945 | |
| | | | | | | | |
| | | | | | | 126,739 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 3.0% | | | | 126,739 | |
Consumer Staples | |
| |
Agricultural Products – 0.1% | |
Arcadia Biosciences, Inc. (A)(B) | | | 3,127 | | | | 6,004 | |
| | | | | | | | |
| |
Total Consumer Staples – 0.1% | | | | 6,004 | |
Health Care | |
| |
Biotechnology – 7.9% | |
Evogene Ltd. (A)(B) | | | 1,852 | | | | 11,815 | |
FibroGen, Inc. (A) | | | 993 | | | | 20,545 | |
Isis Pharmaceuticals, Inc. (A) | | | 3,217 | | | | 117,871 | |
Kite Pharma, Inc. (A) | | | 371 | | | | 20,741 | |
Seres Therapeutics, Inc. (A) | | | 196 | | | | 2,414 | |
Vertex Pharmaceuticals, Inc. (A) | | | 1,806 | | | | 157,457 | |
| | | | | | | | |
| | | | | | | 330,843 | |
| | | | | | | | |
| |
Health Care Equipment – 0.4% | |
Avinger, Inc. (A)(B) | | | 3,395 | | | | 16,193 | |
| | | | | | | | |
| |
Health Care Facilities – 1.4% | |
Tenet Healthcare Corp. (A) | | | 2,672 | | | | 60,550 | |
| | | | | | | | |
| |
Health Care Technology – 3.6% | |
Cerner Corp. (A) | | | 2,450 | | | | 151,257 | |
| | | | | | | | |
| |
Managed Health Care – 0.9% | |
Anthem, Inc. | | | 309 | | | | 38,683 | |
| | | | | | | | |
| |
Pharmaceuticals – 2.5% | |
Teva Pharmaceutical Industries Ltd. ADR | | | 2,261 | | | | 104,038 | |
| | | | | | | | |
| |
Total Health Care – 16.7% | | | | 701,564 | |
Industrials | |
| |
Building Products – 0.8% | |
Advanced Drainage Systems, Inc. | | | 1,416 | | | | 34,081 | |
| | | | | | | | |
| |
Construction & Engineering – 0.1% | |
Abengoa S.A., Class B (A)(C) | | | 24,387 | | | | 5,890 | |
| | | | | | | | |
| |
Total Industrials – 0.9% | | | | 39,971 | |
Information Technology | |
| |
Application Software – 11.7% | |
ACI Worldwide, Inc. (A)(B) | | | 8,116 | | | | 157,297 | |
Aspen Technology, Inc. (A)(B) | | | 4,019 | | | | 188,031 | |
Globant S.A. (A) | | | 1,036 | | | | 43,619 | |
Mobileye N.V. (A) | | | 788 | | | | 33,551 | |
Silver Spring Networks, Inc. (A)(B) | | | 4,810 | | | | 68,202 | |
| | | | | | | | |
| | | | | | | 490,700 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Communications Equipment – 0.5% | |
Nokia Corp., Series A ADR | | | 3,857 | | | $ | 22,334 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 13.7% | |
Alliance Data Systems Corp. (A) | | | 884 | | | | 189,537 | |
Euronet Worldwide, Inc. (A)(D) | | | 2,285 | | | | 187,008 | |
QIWI plc ADR | | | 1,402 | | | | 20,527 | |
WNS (Holdings) Ltd. ADR (A)(B) | | | 5,887 | | | | 176,302 | |
| | | | | | | | |
| | | | | | | 573,374 | |
| | | | | | | | |
| |
Electronic Components – 2.1% | |
Universal Display Corp. (A) | | | 1,596 | | | | 88,620 | |
| | | | | | | | |
| |
Internet Software & Services – 10.4% | |
Alibaba Group Holding Ltd. ADR (A) | | | 609 | | | | 64,437 | |
Alphabet, Inc., Class A (A) | | | 113 | | | | 90,457 | |
Alphabet, Inc., Class C (A) | | | 147 | | | | 113,906 | |
Facebook, Inc., Class A (A) | | | 1,024 | | | | 131,374 | |
Pandora Media, Inc. (A) | | | 2,499 | | | | 35,814 | |
| | | | | | | | |
| | | | | | | 435,988 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 4.0% | |
Acxiom Corp. (A)(B) | | | 4,483 | | | | 119,465 | |
CSRA, Inc. | | | 1,079 | | | | 29,025 | |
Virtusa Corp. (A) | | | 764 | | | | 18,852 | |
| | | | | | | | |
| | | | | | | 167,342 | |
| | | | | | | | |
| |
Semiconductor Equipment – 1.8% | |
Nanometrics, Inc. (A)(B) | | | 1,254 | | | | 28,016 | |
Photronics, Inc. (A)(B) | | | 4,528 | | | | 46,687 | |
| | | | | | | | |
| | | | | | | 74,703 | |
| | | | | | | | |
| |
Semiconductors – 22.6% | |
Advanced Micro Devices, Inc. (A) | | | 3,403 | | | | 23,517 | |
Cypress Semiconductor Corp. | | | 7,654 | | | | 93,067 | |
Dialog Semiconductor plc (A)(C) | | | 1,327 | | | | 51,157 | |
Marvell Technology Group Ltd. | | | 4,011 | | | | 53,226 | |
Micron Technology, Inc. (A) | | | 12,464 | | | | 221,603 | |
Microsemi Corp. (A) | | | 4,184 | | | | 175,638 | |
NXP Semiconductors N.V. (A) | | | 1,514 | | | | 154,423 | |
Rambus, Inc. (A)(B) | | | 6,452 | | | | 80,649 | |
Semtech Corp. (A)(B) | | | 3,356 | | | | 93,051 | |
| | | | | | | | |
| | | | | | | 946,331 | |
| | | | | | | | |
| |
Systems Software – 4.2% | |
Microsoft Corp. | | | 3,029 | | | | 174,493 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 1.2% | |
Apple, Inc. | | | 237 | | | | 26,838 | |
Hewlett-Packard Co. | | | 1,615 | | | | 25,079 | |
| | | | | | | | |
| | | | | | | 51,917 | |
| | | | | | | | |
| |
Total Information Technology – 72.2% | | | | 3,025,802 | |
Materials | |
| |
Commodity Chemicals – 0.5% | |
BioAmber, Inc. (A)(B) | | | 4,711 | | | | 19,973 | |
| | | | | | | | |
| | | | | | | | |
COMMON STOCKS
(Continued) | | Shares | | | Value | |
Fertilizers & Agricultural Chemicals – 0.1% | |
Marrone Bio Innovations, Inc. (A)(B) | | | 2,608 | | | $ | 4,485 | |
| | | | | | | | |
| |
Total Materials – 0.6% | | | | 24,458 | |
Real Estate | |
| |
Specialized REITs – 2.0% | |
QTS Realty Trust, Inc., Class A | | | 1,564 | | | | 82,652 | |
| | | | | | | | |
| |
Total Real Estate – 2.0% | | | | 82,652 | |
Telecommunication Services | |
| |
Alternative Carriers – 2.0% | |
Zayo Group Holdings, Inc. (A) | | | 2,808 | | | | 83,420 | |
| | | | | | | | |
| |
Total Telecommunication Services – 2.0% | | | | 83,420 | |
Utilities | |
| |
Independent Power Producers & Energy Traders – 1.1% | |
Atlantica Yield plc | | | 2,417 | | | | 45,955 | |
| | | | | | | | |
| |
Total Utilities – 1.1% | | | | 45,955 | |
| |
TOTAL COMMON STOCKS – 98.6% | | | $ | 4,136,565 | |
(Cost: $2,791,824) | |
| | |
| WARRANTS | | | | | | |
Commodity Chemicals – 0.0% | |
BioAmber, Inc.,
expires 5–9–17 (B)(E) | | | 1,276 | | | | 587 | |
| | | | | | | | |
| |
Fertilizers & Agricultural Chemicals – 0.0% | |
Marrone Bio Innovations, Inc.,
expires 8–20–23 (B)(E)(F) | | | 2,390 | | | | — | |
| | | | | | | | |
| | |
TOTAL WARRANTS – 0.0% | | | | | | $ | 587 | |
(Cost: $447) | |
| | |
| PURCHASED OPTIONS | | Number of
Contracts
(Unrounded) | | | | |
Teva Pharmaceutical Industries Ltd. ADR: | | | | | | | | |
Call $57.50,
Expires 10–21–16, OTC (Ctrpty: Goldman Sachs International) | | | 5,299 | | | | 16 | |
Call $60.00,
Expires 12–16–16 | | | 5,301 | | | | 18 | |
| | | | | | | | |
| |
TOTAL PURCHASED OPTIONS – 0.0% | | | $ | 34 | |
(Cost: $1,987) | |
| | | | | | |
| 36 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| CORPORATE DEBT SECURITIES | | Principal | | | Value | |
Materials | |
| |
Fertilizers & Agricultural Chemicals – 0.6% | |
Marrone Bio Innovations, Inc., | | | | | | | | |
8.000%, 8–20–20 (B)(F) | | $ | 23,900 | | | $ | 24,373 | |
| | | | | | | | |
| |
Total Materials – 0.6% | | | | 24,373 | |
| |
TOTAL CORPORATE DEBT SECURITIES – 0.6% | | | $ | 24,373 | |
(Cost: $23,900) | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (G) – 0.4% | | | | | |
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | | | | | | | | |
0.640%, 10–6–16 | | | 5,000 | | | | 4,999 | |
Kroger Co. (The), | | | | | | | | |
0.630%, 10–3–16 | | | 5,000 | | | | 5,000 | |
Northern Illinois Gas Co., | | | | | | | | |
0.420%, 10–3–16 | | | 6,025 | | | | 6,025 | |
| | | | | | | | |
| | | | | | | 16,024 | |
| | | | | | | | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Master Note – 0.0% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (H) | | $ | 41 | | | $ | 41 | |
| | | | | | | | |
| |
Municipal Obligations – 0.2% | | | | | |
City of Whittier, Hlth Fac Rev Bonds (Presbyterian Intercmnty Hosp), Ser 2009 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.830%, 10–7–16 (H) | | | 8,000 | | | | 8,000 | |
| | | | | | | | |
| | |
TOTAL SHORT-TERM
SECURITIES – 0.6% | | | | | | $ | 24,065 | |
(Cost: $24,065) | |
| |
TOTAL INVESTMENT SECURITIES – 99.8% | | | $ | 4,185,624 | |
(Cost: $2,842,223) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% | | | | 7,567 | |
| |
NET ASSETS – 100.0% | | | $ | 4,193,191 | |
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) | All or a portion of securities with an aggregate value of $7,201 are held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
| (E) | 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. |
| (F) | Restricted securities. At September 30, 2016, the Fund owned the following restricted securities: |
| | | | | | | | | | | | |
| Security | | Acquisition Date(s) | | Principal | | Cost | | | Market Value | |
| Marrone Bio Innovations, Inc., 8.000%, 8–20–20 | | 8–20–15 | | $23,900 | | $ | 23,900 | | | | $24,373 | |
| | | | |
| | | | | Shares | | | | | | |
| Marrone Bio Innovations, Inc., expires 8–20–23 | | 8–20–15 | | 2,390 | | $ | — | | | $ | — | |
| | | | | | | | |
| | | | | | $ | 23,900 | | | | $24,373 | |
| | | | | | | | |
The total value of these securities represented 0.6% of net assets at September 30, 2016.
| (G) | Rate shown is the yield to maturity at September 30, 2016. |
| (H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):
| | | | | | | | | | | | | | | | | | | | | | |
| Underlying Security | | Counterparty, if OTC | | Type | | Number of
Contracts | | | Expiration
Month | | Exercise
Price | | | Premium
Received | | | Value | |
| Teva Pharmaceutical Industries Ltd. ADR | | Goldman Sachs International | | Call | | | 5,299 | | | October 2016 | | $ | 65.00 | | | $ | 201 | | | $ | (13 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 37 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SCIENCE AND TECHNOLOGY FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 4,136,565 | | | $ | — | | | $ | — | |
Warrants | | | — | | | | 587 | | | | — | |
Purchased Options | | | 18 | | | | 16 | | | | — | |
Corporate Debt Securities | | | — | | | | 24,373 | | | | — | |
Short-Term Securities | | | — | | | | 24,065 | | | | — | |
Total | | $ | 4,136,583 | | | $ | 49,041 | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Written Options | | $ | — | | | $ | 13 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
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 | | | 81.5% | |
India | | | 4.2% | |
Netherlands | | | 3.7% | |
Israel | | | 3.6% | |
China | | | 1.5% | |
Bermuda | | | 1.3% | |
Spain | | | 1.2% | |
Germany | | | 1.2% | |
Other Countries | | | 1.0% | |
Other+ | | | 0.8% | |
| + | Includes options, cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 38 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | Ivy Funds |
AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | | Ivy Asset
Strategy
Fund(1) | | | Ivy
Balanced
Fund | | | Ivy
Energy
Fund | | | Ivy Global
Natural
Resources
Fund | | | Ivy LaSalle
Global
Real Estate
Fund | | | Ivy LaSalle
Global
Risk-Managed
Real Estate
Fund | | | Ivy Real
Estate
Securities
Fund | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value+ | | $ | 5,697,377 | | | $ | 2,716,251 | | | $ | 533,247 | | | $ | 739,242 | | | $ | 35,446 | | | $ | 122,723 | | | $ | 715,656 | |
Investments in affiliated securities at value+ | | | 136,681 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Bullion at value+ | | | 483,592 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Investments at Value | | | 6,317,650 | | | | 2,716,251 | | | | 533,247 | | | | 739,242 | | | | 35,446 | | | | 122,723 | | | | 715,656 | |
Cash | | | 28,819 | | | | 331 | | | | 1 | | | | 1 | | | | 1 | | | | 1 | | | | 1 | |
Cash denominated in foreign currencies at value+ | | | — | | | | — | | | | — | | | | — | | | | 114 | | | | — | * | | | — | |
Investment securities sold receivable | | | — | | | | 8,946 | | | | — | | | | — | | | | 176 | | | | 297 | | | | 1,438 | |
Dividends and interest receivable | | | 69,367 | | | | 9,696 | | | | 195 | | | | 572 | | | | 215 | | | | 710 | | | | 2,694 | |
Capital shares sold receivable | | | 2,266 | | | | 3,009 | | | | 787 | | | | 295 | | | | 31 | | | | 791 | | | | 771 | |
Receivable from affiliates | | | 56 | | | | — | | | | — | | | | 24 | | | | 68 | | | | 50 | | | | 5 | |
Unrealized appreciation on forward foreign currency contracts | | | 451 | | | | — | | | | — | | | | 648 | | | | — | | | | — | | | | — | |
Prepaid and other assets | | | 237 | | | | 141 | | | | 60 | | | | 56 | | | | 28 | | | | 40 | | | | 64 | |
Total Assets | | | 6,418,846 | | | | 2,738,374 | | | | 534,290 | | | | 740,838 | | | | 36,079 | | | | 124,612 | | | | 720,629 | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased payable | | | 9,678 | | | | 32,716 | | | | — | | | | — | | | | 186 | | | | 994 | | | | 1,436 | |
Capital shares redeemed payable | | | 62,159 | | | | 10,052 | | | | 1,675 | | | | 2,068 | | | | 28 | | | | 91 | | | | 947 | |
Independent Trustees and Chief Compliance Officer fees payable | | | 1,181 | | | | 59 | | | | 9 | | | | 548 | | | | — | * | | | 1 | | | | 75 | |
Distribution and service fees payable | | | 88 | | | | 33 | | | | 5 | | | | 7 | | | | — | * | | | 1 | | | | 4 | |
Shareholder servicing payable | | | 2,796 | | | | 659 | | | | 160 | | | | 443 | | | | 11 | | | | 23 | | | | 198 | |
Investment management fee payable | | | 104 | | | | 48 | | | | 12 | | | | 19 | | | | 1 | | | | 3 | | | | 16 | |
Accounting services fee payable | | | 23 | | | | 23 | | | | 12 | | | | 17 | | | | 2 | | | | 4 | | | | 15 | |
Written options at value+ | | | 4,192 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Other liabilities | | | 442 | | | | 85 | | | | 20 | | | | 63 | | | | 10 | | | | 10 | | | | 31 | |
Total Liabilities | | | 80,663 | | | | 43,675 | | | | 1,893 | | | | 3,165 | | | | 238 | | | | 1,127 | | | | 2,722 | |
Total Net Assets | | $ | 6,338,183 | | | $ | 2,694,699 | | | $ | 532,397 | | | $ | 737,673 | | | $ | 35,841 | | | $ | 123,485 | | | $ | 717,907 | |
NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 6,815,801 | | | $ | 2,463,239 | | | $ | 546,406 | | | $ | 2,885,893 | | | $ | 33,884 | | | $ | 113,863 | | | $ | 462,760 | |
Undistributed (distributions in excess of) net investment income | | | 258,460 | | | | 7,796 | | | | (2,165 | ) | | | 1,222 | | | | (131 | ) | | | (942 | ) | | | 2,445 | |
Accumulated net realized gain (loss) | | | (220,654 | ) | | | (2,511 | ) | | | (99,504 | ) | | | (2,189,741 | ) | | | (713 | ) | | | (503 | ) | | | 39,263 | |
Net unrealized appreciation (depreciation) | | | (515,424 | ) | | | 226,175 | | | | 87,660 | | | | 40,299 | | | | 2,801 | | | | 11,067 | | | | 213,439 | |
Total Net Assets | | $ | 6,338,183 | | | $ | 2,694,699 | | | $ | 532,397 | | | $ | 737,673 | | | $ | 35,841 | | | $ | 123,485 | | | $ | 717,907 | |
CAPITAL SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 88,322 | | | | 35,478 | | | | 14,427 | | | | 24,404 | | | | 1,203 | | | | 4,378 | | | | 10,342 | |
Class B | | | 9,693 | | | | 3,601 | | | | 329 | | | | 736 | | | | 28 | | | | 94 | | | | 151 | |
Class C | | | 120,109 | | | | 36,809 | | | | 7,611 | | | | 9,353 | | | | 102 | | | | 755 | | | | 673 | |
Class E | | | 2,124 | | | | 8 | | | | 10 | | | | 336 | | | | N/A | | | | N/A | | | | 141 | |
Class I | | | 66,149 | | | | 31,760 | | | | 11,514 | | | | 12,722 | | | | 1,910 | | | | 4,812 | | | | 7,455 | |
Class R | | | 3,861 | | | | 534 | | | | 1,890 | | | | 1,870 | | | | 47 | | | | 218 | | | | 70 | |
Class R6 | | | 849 | | | | 387 | | | | 669 | | | | 726 | | | | N/A | | | | N/A | | | | 107 | |
Class Y | | | 16,066 | | | | 4,212 | | | | 3,634 | | | | 2,430 | | | | 66 | | | | 448 | | | | 5,384 | |
NET ASSET VALUE PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $21.02 | | | | $23.95 | | | | $13.30 | | | | $14.30 | | | | $10.69 | | | | $11.53 | | | | $29.48 | |
Class B | | | $19.85 | | | | $23.72 | | | | $12.20 | | | | $12.20 | | | | $10.61 | | | | $11.49 | | | | $28.61 | |
Class C | | | $19.98 | | | | $23.80 | | | | $12.43 | | | | $12.01 | | | | $10.61 | | | | $11.49 | | | | $28.99 | |
Class E | | | $21.09 | | | | $24.06 | | | | $13.62 | | | | $14.66 | | | | N/A | | | | N/A | | | | $29.48 | |
Class I | | | $21.28 | | | | $23.95 | | | | $13.77 | | | | $14.90 | | | | $10.67 | | | | $11.55 | | | | $29.63 | |
Class R | | | $20.79 | | | | $23.92 | | | | $13.21 | | | | $14.12 | | | | $10.65 | | | | $11.51 | | | | $29.48 | |
Class R6 | | | $21.34 | | | | $23.98 | | | | $13.82 | | | | $14.96 | | | | N/A | | | | N/A | | | | $29.67 | |
Class Y | | | $21.07 | | | | $23.95 | | | | $13.48 | | | | $14.64 | | | | $10.80 | | | | $11.54 | | | | $29.50 | |
+COST | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at cost | | $ | 5,633,521 | | | $ | 2,490,076 | | | $ | 445,587 | | | $ | 699,591 | | | $ | 32,644 | | | $ | 111,656 | | | $ | 502,217 | |
Investments in affiliated securities at cost | | | 760,835 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Bullion at cost | | | 437,875 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Cash denominated in foreign currencies at cost | | | — | | | | — | | | | — | | | | — | | | | 114 | | | | — | | | | — | |
Written options premiums received at cost | | | 3,748 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| * | Not shown due to rounding. |
| (1) | Consolidated Statement of Assets and Liabilities (See Note 6 in Notes to Financial Statements). |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 39 | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | Ivy Funds |
AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | |
| (In thousands, except per share amounts) | | Ivy Science
and
Technology
Fund | |
ASSETS | | | | |
Investments in unaffiliated securities at value+ | | $ | 3,144,494 | |
Investments in affiliated securities at value+ | | | 1,041,130 | |
Investments at Value | | | 4,185,624 | |
Cash | | | 1 | |
Investment securities sold receivable | | | 40,889 | |
Dividends and interest receivable | | | 2,821 | |
Capital shares sold receivable | | | 3,785 | |
Receivable from affiliates | | | 25 | |
Prepaid and other assets | | | 161 | |
Total Assets | | | 4,233,306 | |
| |
LIABILITIES | | | | |
Investment securities purchased payable | | | 20,812 | |
Capital shares redeemed payable | | | 17,467 | |
Independent Trustees and Chief Compliance Officer fees payable | | | 164 | |
Distribution and service fees payable | | | 37 | |
Shareholder servicing payable | | | 1,390 | |
Investment management fee payable | | | 93 | |
Accounting services fee payable | | | 23 | |
Written options at value+ | | | 13 | |
Other liabilities | | | 116 | |
Total Liabilities | | | 40,115 | |
Total Net Assets | | $ | 4,193,191 | |
| |
NET ASSETS | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 2,991,522 | |
Distributions in excess of net investment income | | | (24,616 | ) |
Accumulated net realized loss | | | (117,304 | ) |
Net unrealized appreciation | | | 1,343,589 | |
Total Net Assets | | $ | 4,193,191 | |
| |
CAPITAL SHARES OUTSTANDING: | | | | |
Class A | | | 24,220 | |
Class B | | | 1,147 | |
Class C | | | 16,909 | |
Class E | | | 440 | |
Class I | | | 22,384 | |
Class R | | | 2,082 | |
Class R6 | | | 1,567 | |
Class Y | | | 13,252 | |
| |
NET ASSET VALUE PER SHARE: | | | | |
Class A | | | $50.81 | |
Class B | | | $42.93 | |
Class C | | | $44.46 | |
Class E | | | $50.50 | |
Class I | | | $55.43 | |
Class R | | | $49.75 | |
Class R6 | | | $55.62 | |
Class Y | | | $53.40 | |
| |
+COST | | | | |
Investments in unaffiliated securities at cost | | $ | 2,086,445 | |
Investments in affiliated securities at cost | | | 755,778 | |
Written options premiums received at cost | | | 201 | |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 40 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF OPERATIONS | | Ivy Funds |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | |
| (In thousands) | | Ivy Asset
Strategy
Fund(1) | | | Ivy
Balanced
Fund | | | Ivy
Energy
Fund | | | Ivy Global
Natural
Resources
Fund | |
INVESTMENT INCOME | | | | | | | | | | | | | | | | |
Dividends from unaffiliated securities | | $ | 34,160 | | | $ | 18,526 | | | $ | 2,282 | | | $ | 5,448 | |
Foreign dividend withholding tax | | | (1,057 | ) | | | (376 | ) | | | (48 | ) | | | (91 | ) |
Interest and amortization from unaffiliated securities | | | 49,492 | | | | 16,938 | | | | 30 | | | | 79 | |
Foreign interest withholding tax | | | — | * | | | — | | | | — | | | | — | |
Total Investment Income | | | 82,595 | | | | 35,088 | | | | 2,264 | | | | 5,436 | |
| | | | |
EXPENSES | | | | | | | | | | | | | | | | |
Investment management fee | | | 23,782 | | | | 9,129 | | | | 2,097 | | | | 3,511 | |
Distribution and service fees: | | | | | | | | | | | | | | | | |
Class A | | | 3,108 | | | | 1,364 | | | | 248 | | | | 484 | |
Class B | | | 1,182 | | | | 425 | | | | 19 | | | | 47 | |
Class C | | | 15,190 | | | | 4,514 | | | | 444 | | | | 566 | |
Class E | | | 62 | | | | — | * | | | — | * | | | 6 | |
Class R | | | 231 | | | | 34 | | | | 56 | | | | 64 | |
Class Y | | | 527 | | | | 145 | | | | 61 | | | | 44 | |
Shareholder servicing: | | | | | | | | | | | | | | | | |
Class A | | | 2,457 | | | | 982 | | | | 257 | | | | 910 | |
Class B | | | 157 | | | | 66 | | | | 7 | | | | 36 | |
Class C | | | 2,427 | | | | 521 | | | | 86 | | | | 193 | |
Class E | | | 84 | | | | — | * | | | — | * | | | 24 | |
Class I | | | 1,629 | | | | 462 | | | | 102 | | | | 143 | |
Class R | | | 119 | | | | 17 | | | | 28 | | | | 33 | |
Class R6 | | | 1 | | | | — | * | | | — | * | | | 1 | |
Class Y | | | 353 | | | | 91 | | | | 40 | | | | 29 | |
Registration fees | | | 114 | | | | 118 | | | | 65 | | | | 52 | |
Custodian fees | | | 190 | | | | 17 | | | | 8 | | | | 11 | |
Independent Trustees and Chief Compliance Officer fees | | | 138 | | | | 44 | | | | 8 | | | | 12 | |
Accounting services fee | | | 138 | | | | 137 | | | | 73 | | | | 93 | |
Professional fees | | | 732 | | | | 41 | | | | 19 | | | | 35 | |
Other | | | 812 | | | | 94 | | | | 29 | | | | 70 | |
Total Expenses | | | 53,433 | | | | 18,201 | | | | 3,647 | | | | 6,364 | |
Less: | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (56 | ) | | | — | | | | — | | | | (24 | ) |
Total Net Expenses | | | 53,377 | | | | 18,201 | | | | 3,647 | | | | 6,340 | |
Net Investment Income (Loss) | | | 29,218 | | | | 16,887 | | | | (1,383 | ) | | | (904 | ) |
| | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 208,327 | | | | 17,273 | | | | (18,551 | ) | | | 3,769 | |
Written options | | | 5,073 | | | | 7,189 | | | | — | | | | — | |
Forward foreign currency contracts | | | (918 | ) | | | — | | | | — | | | | 4,747 | |
Foreign currency exchange transactions | | | (665 | ) | | | — | | | | (2 | ) | | | 5 | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | (32,062 | ) | | | 84,707 | | | | 122,149 | | | | 88,872 | |
Investments in affiliated securities | | | (114,765 | ) | | | — | | | | — | | | | — | |
Written options | | | (444 | ) | | | (2,654 | ) | | | — | | | | — | |
Forward foreign currency contracts | | | 1,183 | | | | — | | | | — | | | | 393 | |
Foreign currency exchange transactions | | | 427 | | | | — | | | | — | | | | (13 | ) |
Net Realized and Unrealized Gain | | | 66,156 | | | | 106,515 | | | | 103,596 | | | | 97,773 | |
Net Increase in Net Assets Resulting from Operations | | $ | 95,374 | | | $ | 123,402 | | | $ | 102,213 | | | $ | 96,869 | |
| * | Not shown due to rounding. |
| (1) | Consolidated Statement of Operations (See Note 6 in Notes to Financial Statements). |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 41 | |
| | |
| STATEMENTS OF OPERATIONS | | Ivy Funds |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | |
| (In thousands) | | Ivy LaSalle
Global Real
Estate
Fund | | | Ivy LaSalle
Global
Risk-Managed
Real Estate
Fund | | | Ivy Real
Estate
Securities
Fund | | | Ivy Science
and
Technology
Fund | |
INVESTMENT INCOME | | | | | | | | | | | | | | | | |
Dividends from unaffiliated securities | | $ | 565 | | | $ | 1,957 | | | $ | 8,952 | | | $ | 13,991 | |
Foreign dividend withholding tax | | | (22 | ) | | | (73 | ) | | | — | | | | (268 | ) |
Interest and amortization from unaffiliated securities | | | — | * | | | 5 | | | | 23 | | | | 105 | |
Interest and amortization from affiliated securities | | | — | | | | — | | | | — | | | | 948 | |
Total Investment Income | | | 543 | | | | 1,889 | | | | 8,975 | | | | 14,776 | |
| | | | |
EXPENSES | | | | | | | | | | | | | | | | |
Investment management fee | | | 166 | | | | 521 | | | | 3,232 | | | | 18,388 | |
Distribution and service fees: | | | | | | | | | | | | | | | | |
Class A | | | 25 | | | | 77 | | | | 504 | | | | 1,884 | |
Class B | | | 2 | | | | 5 | | | | 22 | | | | 249 | |
Class C | | | 5 | | | | 30 | | | | 97 | | | | 3,913 | |
Class E | | | N/A | | | | N/A | | | | 5 | | | | 27 | |
Class R | | | 1 | | | | 6 | | | | 4 | | | | 267 | |
Class Y | | | 1 | | | | 6 | | | | 196 | | | | 907 | |
Shareholder servicing: | | | | | | | | | | | | | | | | |
Class A | | | 41 | | | | 63 | | | | 651 | | | | 1,823 | |
Class B | | | — | * | | | 1 | | | | 11 | | | | 57 | |
Class C | | | 1 | | | | 4 | | | | 27 | | | | 648 | |
Class E | | | N/A | | | | N/A | | | | 11 | | | | 54 | |
Class I | | | 11 | | | | 30 | | | | 116 | | | | 1,070 | |
Class R | | | 1 | | | | 3 | | | | 2 | | | | 137 | |
Class R6 | | | N/A | | | | N/A | | | | — | * | | | 4 | |
Class Y | | | 1 | | | | 4 | | | | 118 | | | | 569 | |
Registration fees | | | 39 | | | | 44 | | | | 58 | | | | 102 | |
Custodian fees | | | 14 | | | | 16 | | | | 9 | | | | 214 | |
Independent Trustees and Chief Compliance Officer fees | | | — | * | | | 2 | | | | 12 | | | | 78 | |
Accounting services fee | | | 15 | | | | 29 | | | | 93 | | | | 138 | |
Professional fees | | | 21 | | | | 22 | | | | 28 | | | | 66 | |
Other | | | 11 | | | | 10 | | | | 34 | | | | 165 | |
Total Expenses | | | 355 | | | | 873 | | | | 5,230 | | | | 30,760 | |
Less: | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (69 | ) | | | (45 | ) | | | (364 | ) | | | (25 | ) |
Total Net Expenses | | | 286 | | | | 828 | | | | 4,866 | | | | 30,735 | |
Net Investment Income (Loss) | | | 257 | | | | 1,061 | | | | 4,109 | | | | (15,959 | ) |
| | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 436 | | | | 655 | | | | 40,681 | | | | (26,540 | ) |
Investments in affiliated securities | | | — | | | | — | | | | — | | | | 35,943 | |
Written options | | | — | | | | — | | | | — | | | | 3,551 | |
Foreign currency exchange transactions | | | (5 | ) | | | (21 | ) | | | — | | | | 1 | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 128 | | | | 2,301 | | | | (19,476 | ) | | | 482,687 | |
Investments in affiliated securities | | | — | | | | — | | | | — | | | | (71,775 | ) |
Written options | | | — | | | | — | | | | — | | | | (1,237 | ) |
Foreign currency exchange transactions | | | (1 | ) | | | — | * | | | — | | | | — | * |
Net Realized and Unrealized Gain | | | 558 | | | | 2,935 | | | | 21,205 | | | | 422,630 | |
Net Increase in Net Assets Resulting from Operations | | $ | 815 | | | $ | 3,996 | | | $ | 25,314 | | | $ | 406,671 | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | |
| 42 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | Ivy Funds |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Asset Strategy Fund(1) | | | Ivy Balanced Fund | | | Ivy Energy Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 29,218 | | | $ | 90,773 | | | $ | 16,887 | | | $ | 26,505 | | | $ | (1,383 | ) | | $ | (1,205 | ) |
Net realized gain (loss) on investments | | | 211,817 | | | | (495,776 | ) | | | 24,462 | | | | 35,466 | | | | (18,553 | ) | | | (56,489 | ) |
Net change in unrealized appreciation (depreciation) | | | (145,661 | ) | | | (2,549,877 | ) | | | 82,053 | | | | (196,783 | ) | | | 122,149 | | | | (59,079 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 95,374 | | | | (2,954,880 | ) | | | 123,402 | | | | (134,812 | ) | | | 102,213 | | | | (116,773 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (10,489 | ) | | | (4,150 | ) | | | (13,081 | ) | | | — | | | | — | |
Class B | | | — | | | | — | | | | (62 | ) | | | (294 | ) | | | — | | | | — | |
Class C | | | — | | | | — | | | | (776 | ) | | | (3,453 | ) | | | — | | | | — | |
Class E | | | — | | | | (139 | ) | | | (1 | ) | | | (2 | ) | | | — | | | | — | |
Class I | | | — | | | | (24,092 | ) | | | (2,833 | ) | | | (4,163 | ) | | | — | | | | — | |
Class R | | | — | | | | — | | | | (32 | ) | | | (98 | ) | | | — | | | | — | |
Class R6 | | | — | | | | (501 | ) | | | (52 | ) | | | (49 | ) | | | — | | | | — | |
Class Y | | | — | | | | (1,819 | ) | | | (442 | ) | | | (1,596 | ) | | | — | | | | — | |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (244,925 | ) | | | — | | | | (60,494 | ) | | | — | | | | — | |
Class B | | | — | | | | (24,891 | ) | | | — | | | | (3,461 | ) | | | — | | | | — | |
Class C | | | — | | | | (332,675 | ) | | | — | | | | (38,343 | ) | | | — | | | | — | |
Class E | | | — | | | | (3,492 | ) | | | — | | | | (9 | ) | | | — | | | | — | |
Class I | | | — | | | | (299,183 | ) | | | — | | | | (16,265 | ) | | | — | | | | — | |
Class R | | | — | | | | (7,609 | ) | | | — | | | | (625 | ) | | | — | | | | — | |
Class R6 | | | — | | | | (4,657 | ) | | | — | | | | (181 | ) | | | — | | | | — | |
Class Y | | | — | | | | (42,467 | ) | | | — | | | | (6,651 | ) | | | — | | | | — | |
Total Distributions to Shareholders | | | — | | | | (996,939 | ) | | | (8,348 | ) | | | (148,765 | ) | | | — | | | | — | |
Capital Share Transactions | | | (4,054,350 | ) | | | (10,951,731 | ) | | | (218,564 | ) | | | 551,690 | | | | 4,981 | | | | 105,554 | |
Net Increase (Decrease) in Net Assets | | | (3,958,976 | ) | | | (14,903,550 | ) | | | (103,510 | ) | | | 268,113 | | | | 107,194 | | | | (11,219 | ) |
Net Assets, Beginning of Period | | | 10,297,159 | | | | 25,200,709 | | | | 2,798,209 | | | | 2,530,096 | | | | 425,203 | | | | 436,422 | |
Net Assets, End of Period | | $ | 6,338,183 | | | $ | 10,297,159 | | | $ | 2,694,699 | | | $ | 2,798,209 | | | $ | 532,397 | | | $ | 425,203 | |
Undistributed (distributions in excess of) net investment income | | $ | 258,460 | | | $ | 229,907 | | | $ | 7,796 | | | $ | (743 | ) | | $ | (2,165 | ) | | $ | (780 | ) |
| (1) | Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements). |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 43 | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | Ivy Funds |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Global Natural
Resources Fund | | | Ivy LaSalle Global Real
Estate Fund | | | Ivy LaSalle Global
Risk-Managed Real Estate
Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | | | | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (904 | ) | | $ | 1,364 | | | $ | 257 | | | $ | 554 | | | $ | 1,061 | | | $ | 1,353 | |
Net realized gain (loss) on investments | | | 8,521 | | | | (121,589 | ) | | | 431 | | | | (609 | ) | | | 634 | | | | 93 | |
Net change in unrealized appreciation (depreciation) | | | 89,252 | | | | (111,501 | ) | | | 127 | | | | (800 | ) | | | 2,301 | | | | 2,854 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 96,869 | | | | (231,726 | ) | | | 815 | | | | (855 | ) | | | 3,996 | | | | 4,300 | |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | (415 | ) | | | (371 | ) | | | (1,767 | ) | | | (565 | ) |
Class B | | | — | | | | — | | | | (4 | ) | | | — | * | | | (20 | ) | | | (1 | ) |
Class C | | | — | | | | — | | | | (12 | ) | | | — | | | | (110 | ) | | | (8 | ) |
Class E | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | — | | | | — | | | | (44 | ) | | | (30 | ) | | | (292 | ) | | | (135 | ) |
Class R | | | — | | | | — | | | | (7 | ) | | | (2 | ) | | | (49 | ) | | | (13 | ) |
Class R6 | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | — | | | | — | | | | (10 | ) | | | (11 | ) | | | (83 | ) | | | (46 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | (569 | ) | | | — | | | | (469 | ) |
Class B | | | — | | | | — | | | | — | | | | (5 | ) | | | — | | | | (6 | ) |
Class C | | | — | | | | — | | | | — | | | | (16 | ) | | | — | | | | (35 | ) |
Class E | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | — | | | | — | | | | — | | | | (49 | ) | | | — | | | | (100 | ) |
Class R | | | — | | | | — | | | | — | | | | (9 | ) | | | — | | | | (21 | ) |
Class R6 | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | — | | | | — | | | | — | | | | (17 | ) | | | — | | | | (41 | ) |
Total Distributions to Shareholders | | | — | | | | — | | | | (492 | ) | | | (1,079 | ) | | | (2,321 | ) | | | (1,440 | ) |
Capital Share Transactions | | | (69,299 | ) | | | (188,815 | ) | | | 1,334 | | | | 1,955 | | | | 35,149 | | | | 20,251 | |
Net Increase (Decrease) in Net Assets | | | 27,570 | | | | (420,541 | ) | | | 1,657 | | | | 21 | | | | 36,824 | | | | 23,111 | |
Net Assets, Beginning of Period | | | 710,103 | | | | 1,130,644 | | | | 34,184 | | | | 34,163 | | | | 86,661 | | | | 63,550 | |
Net Assets, End of Period | | $ | 737,673 | | | $ | 710,103 | | | $ | 35,841 | | | $ | 34,184 | | | $ | 123,485 | | | $ | 86,661 | |
Undistributed (distributions in excess of) net investment income | | $ | 1,222 | | | $ | 2,121 | | | $ | (131 | ) | | $ | 109 | | | $ | (942 | ) | | $ | 339 | |
* Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | |
| 44 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | Ivy Funds |
| | | | | | | | | | | | | | | | |
| | | Ivy Real Estate Securities
Fund | | | Ivy Science and Technology
Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 4,109 | | | $ | 8,646 | | | $ | (15,959 | ) | | $ | (42,301 | ) |
Net realized gain on investments | | | 40,681 | | | | 18,864 | | | | 12,955 | | | | 28,521 | |
Net change in unrealized appreciation (depreciation) | | | (19,476 | ) | | | (9,534 | ) | | | 409,675 | | | | (997,819 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 25,314 | | | | 17,976 | | | | 406,671 | | | | (1,011,599 | ) |
| | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | |
Class A | | | (2,492 | ) | | | (5,170 | ) | | | — | | | | — | |
Class B | | | (11 | ) | | | (6 | ) | | | — | | | | — | |
Class C | | | (57 | ) | | | (50 | ) | | | — | | | | — | |
Class E | | | (21 | ) | | | (32 | ) | | | — | | | | — | |
Class I | | | (612 | ) | | | (178 | ) | | | — | | | | — | |
Class R | | | (8 | ) | | | (14 | ) | | | — | | | | — | |
Class R6 | | | (25 | ) | | | (49 | ) | | | — | | | | — | |
Class Y | | | (996 | ) | | | (1,871 | ) | | | — | | | | — | |
Net realized gains: | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (23,374 | ) | | | — | | | | (50,726 | ) |
Class B | | | — | | | | (232 | ) | | | — | | | | (1,735 | ) |
Class C | | | — | | | | (836 | ) | | | — | | | | (26,741 | ) |
Class E | | | — | | | | (155 | ) | | | — | | | | (548 | ) |
Class I | | | — | | | | (582 | ) | | | — | | | | (40,456 | ) |
Class R | | | — | | | | (78 | ) | | | — | | | | (2,949 | ) |
Class R6 | | | — | | | | (144 | ) | | | — | | | | (993 | ) |
Class Y | | | — | | | | (7,056 | ) | | | — | | | | (20,848 | ) |
Total Distributions to Shareholders | | | (4,222 | ) | | | (39,827 | ) | | | — | | | | (144,996 | ) |
Capital Share Transactions | | | (8,243 | ) | | | (46,465 | ) | | | (1,202,592 | ) | | | (169,491 | ) |
Net Increase (Decrease) in Net Assets | | | 12,849 | | | | (68,316 | ) | | | (795,921 | ) | | | (1,326,086 | ) |
Net Assets, Beginning of Period | | | 705,058 | | | | 773,374 | | | | 4,989,112 | | | | 6,315,198 | |
Net Assets, End of Period | | $ | 717,907 | | | $ | 705,058 | | | $ | 4,193,191 | | | $ | 4,989,112 | |
Undistributed (distributions in excess of) net investment income | | $ | 2,445 | | | $ | 2,558 | | | $ | (24,616 | ) | | $ | (8,658 | ) |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 45 | |
| | |
| CONSOLIDATED STATEMENT OF CASH FLOWS | | IVY FUNDS |
FOR THE PERIOD ENDED SEPTEMBER 30, 2016
| | | | |
| (In thousands) | | Ivy Asset Strategy Fund | |
Cash flows provided by operating activities: | |
Net increase in net assets resulting from operations | | $ | 95,374 | |
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities: | | | | |
Purchases of long-term investment securities | | | (1,479,041 | ) |
Proceeds from sales of long-term investment securities | | | 3,235,645 | |
Proceeds of bullion, net | | | 211,919 | |
Proceeds from sales of purchased options, net | | | 16,044 | |
Purchases of short-term portfolio investment securities, net | | | 2,107,531 | |
Increase in dividends and interest receivable | | | (27,153 | ) |
Increase in receivables from affiliates | | | (12 | ) |
Increase in prepaid and other assets | | | (83 | ) |
Decrease in Trustees and Chief Compliance Officer fees payable | | | (34 | ) |
Decrease in service fee payable | | | (49 | ) |
Decrease in shareholder servicing fees payable | | | (510 | ) |
Decrease in investment management fee payable | | | (60 | ) |
Increase in written options | | | 4,192 | |
Net unrealized loss on foreign currency transactions | | | (5,170 | ) |
Proceeds from currency transactions | | | (4,359 | ) |
Increase in other liabilities | | | 390 | |
Net change in unrealized depreciation on investments in unaffiliated securities | | | 32,062 | |
Net change in unrealized depreciation on investments in affiliated securities | | | 114,765 | |
Net change in unrealized depreciation on written options | | | 444 | |
Net change in unrealized appreciation on forward foreign currency contracts | | | (1,183 | ) |
Net change in unrealized appreciation on foreign currency exchange transactions | | | (427 | ) |
Net realized gain on investments, written options, swap agreements and foreign currency transactions | | | (211,817 | ) |
Net cash provided by operating activities | | | 4,088,468 | |
Cash flows used for financing activities: | | | | |
Proceeds from sale of shares | | | 616,465 | |
Payment on shares redeemed | | | (4,704,154 | ) |
Net cash used for financing activities | | | (4,087,689 | ) |
Net increase in cash and foreign currency | | | 779 | |
Cash and foreign currency, at beginning of year | | | 28,040 | |
Cash and foreign currency, at end of year | | $ | 28,819 | |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 46 | | SEMIANNUAL REPORT | | 2016 | | |
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| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 47 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY ASSET STRATEGY FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income
(Loss)(1) | | | Net Realized
and Unrealized
Gain (Loss) on
Investments | | | Total from
Investment
Operations | | | Distributions
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 20.83 | | | $ | 0.10 | | | $ | 0.09 | | | $ | 0.19 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 25.89 | | | | 0.15 | | | | (3.78 | ) | | | (3.63 | ) | | | (0.06 | ) | | | (1.37 | ) | | | (1.43 | ) |
Year ended 3-31-2015 | | | 31.61 | | | | 0.26 | | | | (1.01 | ) | | | (0.75 | ) | | | (0.12 | ) | | | (4.85 | ) | | | (4.97 | ) |
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 | ) |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.73 | | | | 0.03 | | | | 0.09 | | | | 0.12 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.73 | | | | (0.04 | ) | | | (3.59 | ) | | | (3.63 | ) | | | — | | | | (1.37 | ) | | | (1.37 | ) |
Year ended 3-31-2015 | | | 30.54 | | | | 0.03 | | | | (0.96 | ) | | | (0.93 | ) | | | (0.03 | ) | | | (4.85 | ) | | | (4.88 | ) |
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 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.87 | | | | 0.02 | | | | 0.09 | | | | 0.11 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.88 | | | | (0.02 | ) | | | (3.62 | ) | | | (3.64 | ) | | | — | | | | (1.37 | ) | | | (1.37 | ) |
Year ended 3-31-2015 | | | 30.69 | | | | 0.04 | | | | (0.97 | ) | | | (0.93 | ) | | | (0.03 | ) | | | (4.85 | ) | | | (4.88 | ) |
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 | ) |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.89 | | | | 0.11 | | | | 0.09 | | | | 0.20 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.96 | | | | 0.13 | | | | (3.78 | ) | | | (3.65 | ) | | | (0.05 | ) | | | (1.37 | ) | | | (1.42 | ) |
Year ended 3-31-2015 | | | 31.67 | | | | 0.23 | | | | (0.98 | ) | | | (0.75 | ) | | | (0.11 | ) | | | (4.85 | ) | | | (4.96 | ) |
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 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.06 | | | | 0.13 | | | | 0.09 | | | | 0.22 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 26.15 | | | | 0.23 | | | | (3.84 | ) | | | (3.61 | ) | | | (0.11 | ) | | | (1.37 | ) | | | (1.48 | ) |
Year ended 3-31-2015 | | | 31.88 | | | | 0.33 | | | | (1.02 | ) | | | (0.69 | ) | | | (0.19 | ) | | | (4.85 | ) | | | (5.04 | ) |
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 | ) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.63 | | | | 0.07 | | | | 0.09 | | | | 0.16 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.68 | | | | 0.05 | | | | (3.73 | ) | | | (3.68 | ) | | | — | | | | (1.37 | ) | | | (1.37 | ) |
Year ended 3-31-2015 | | | 31.45 | | | | 0.14 | | | | (1.00 | ) | | | (0.86 | ) | | | (0.06 | ) | | | (4.85 | ) | | | (4.91 | ) |
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 | ) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.10 | | | | 0.15 | | | | 0.09 | | | | 0.24 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 26.21 | | | | 0.22 | | | | (3.81 | ) | | | (3.59 | ) | | | (0.15 | ) | | | (1.37 | ) | | | (1.52 | ) |
Year ended 3-31-2015(6) | | | 31.79 | | | | 0.22 | | | | (0.78 | ) | | | (0.56 | ) | | | (0.17 | ) | | | (4.85 | ) | | | (5.02 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.88 | | | | 0.10 | | | | 0.09 | | | | 0.19 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.94 | | | | 0.15 | | | | (3.78 | ) | | | (3.63 | ) | | | (0.06 | ) | | | (1.37 | ) | | | (1.43 | ) |
Year ended 3-31-2015 | | | 31.67 | | | | 0.25 | | | | (1.01 | ) | | | (0.76 | ) | | | (0.12 | ) | | | (4.85 | ) | | | (4.97 | ) |
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 | ) |
| * | 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 48 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 21.02 | | | | 0.91 | % | | $ | 1,866 | | | | 1.09 | %(4) | | | 0.96 | %(4) | | | — | % | | | — | % | | | 25 | % |
Year ended 3-31-2016 | | | 20.83 | | | | -14.39 | | | | 3,153 | | | | 0.99 | | | | 0.61 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015 | | | 25.89 | | | | -2.28 | | | | 6,332 | | | | 0.96 | | | | 0.86 | | | | — | | | | — | | | | 75 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.85 | | | | 0.61 | | | | 193 | | | | 1.77 | (4) | | | 0.27 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 19.73 | | | | -15.06 | | | | 287 | | | | 1.76 | | | | -0.16 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015 | | | 24.73 | | | | -3.01 | | | | 571 | | | | 1.71 | | | | 0.11 | | | | — | | | | — | | | | 75 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.98 | | | | 0.55 | | | | 2,397 | | | | 1.80 | (4) | | | 0.24 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 19.87 | | | | -15.01 | | | | 3,792 | | | | 1.71 | | | | -0.10 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015 | | | 24.88 | | | | -2.99 | | | | 7,807 | | | | 1.68 | | | | 0.13 | | | | — | | | | — | | | | 75 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.09 | | | | 0.96 | | | | 45 | | | | 1.00 | (4) | | | 1.04 | (4) | | | 1.23 | (4) | | | 0.81 | (4) | | | 25 | |
Year ended 3-31-2016 | | | 20.89 | | | | -14.41 | | | | 53 | | | | 1.00 | | | | 0.53 | | | | 1.14 | | | | 0.39 | | | | 68 | |
Year ended 3-31-2015 | | | 25.96 | | | | -2.29 | | | | 72 | | | | 1.00 | | | | 0.79 | | | | 1.10 | | | | 0.69 | | | | 75 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.28 | | | | 1.04 | | | | 1,400 | | | | 0.83 | (4) | | | 1.20 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 21.06 | | | | -14.17 | | | | 2,382 | | | | 0.74 | | | | 0.95 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015 | | | 26.15 | | | | -2.06 | | | | 9,112 | | | | 0.74 | | | | 1.08 | | | | — | | | | — | | | | 75 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.79 | | | | 0.78 | | | | 81 | | | | 1.39 | (4) | | | 0.65 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 20.63 | | | | -14.69 | | | | 106 | | | | 1.34 | | | | 0.20 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015 | | | 25.68 | | | | -2.67 | | | | 161 | | | | 1.33 | | | | 0.47 | | | | — | | | | — | | | | 75 | |
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 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.34 | | | | 1.14 | | | | 17 | | | | 0.65 | (4) | | | 1.37 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 21.10 | | | | -14.09 | | | | 12 | | | | 0.60 | | | | 0.89 | | | | — | | | | — | | | | 68 | |
Year ended 3-31-2015(6) | | | 26.21 | | | | -1.67 | | | | 12 | | | | 0.59 | (4) | | | 1.18 | (4) | | | — | | | | — | | | | 75 | (7) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.07 | | | | 0.91 | | | | 339 | | | | 1.06 | (4) | | | 0.98 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 20.88 | | | | -14.36 | | | | 512 | | | | 0.99 | | | | 0.63 | | | | 1.00 | | | | 0.62 | | | | 68 | |
Year ended 3-31-2015 | | | 25.94 | | | | -2.31 | | | | 1,134 | | | | 0.96 | | | | 0.85 | | | | 0.98 | | | | 0.83 | | | | 75 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 49 | |
| | |
| 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) | | | 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 9-30-2016 (unaudited) | | $ | 22.99 | | | $ | 0.16 | | | $ | 0.89 | | | $ | 1.05 | | | $ | (0.09 | ) | | $ | — | | | $ | (0.09 | ) |
Year ended 3-31-2016 | | | 25.65 | | | | 0.29 | | | | (1.51 | ) | | | (1.22 | ) | | | (0.26 | ) | | | (1.18 | ) | | | (1.44 | ) |
Year ended 3-31-2015 | | | 24.38 | | | | 0.20 | | | | 1.97 | | | | 2.17 | | | | (0.16 | ) | | | (0.74 | ) | | | (0.90 | ) |
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 | ) |
Class B Shares(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.78 | | | | 0.08 | | | | 0.88 | | | | 0.96 | | | | (0.02 | ) | | | — | | | | (0.02 | ) |
Year ended 3-31-2016 | | | 25.45 | | | | 0.11 | | | | (1.50 | ) | | | (1.39 | ) | | | (0.10 | ) | | | (1.18 | ) | | | (1.28 | ) |
Year ended 3-31-2015 | | | 24.19 | | | | 0.01 | | | | 1.97 | | | | 1.98 | | | | — | | | | (0.72 | ) | | | (0.72 | ) |
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 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.85 | | | | 0.08 | | | | 0.89 | | | | 0.97 | | | | (0.02 | ) | | | — | | | | (0.02 | ) |
Year ended 3-31-2016 | | | 25.53 | | | | 0.13 | | | | (1.52 | ) | | | (1.39 | ) | | | (0.11 | ) | | | (1.18 | ) | | | (1.29 | ) |
Year ended 3-31-2015 | | | 24.26 | | | | 0.02 | | | | 1.97 | | | | 1.99 | | | | — | * | | | (0.72 | ) | | | (0.72 | ) |
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 | ) |
Class E Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.09 | | | | 0.19 | | | | 0.89 | | | | 1.08 | | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2016 | | | 25.76 | | | | 0.33 | | | | (1.53 | ) | | | (1.20 | ) | | | (0.29 | ) | | | (1.18 | ) | | | (1.47 | ) |
Year ended 3-31-2015 | | | 24.48 | | | | 0.23 | | | | 1.99 | | | | 2.22 | | | | (0.20 | ) | | | (0.74 | ) | | | (0.94 | ) |
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 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.98 | | | | 0.20 | | | | 0.89 | | | | 1.09 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Year ended 3-31-2016 | | | 25.63 | | | | 0.36 | | | | (1.52 | ) | | | (1.16 | ) | | | (0.31 | ) | | | (1.18 | ) | | | (1.49 | ) |
Year ended 3-31-2015 | | | 24.36 | | | | 0.26 | | | | 1.98 | | | | 2.24 | | | | (0.23 | ) | | | (0.74 | ) | | | (0.97 | ) |
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 | ) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.96 | | | | 0.13 | | | | 0.89 | | | | 1.02 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2016 | | | 25.65 | | | | 0.22 | | | | (1.53 | ) | | | (1.31 | ) | | | (0.20 | ) | | | (1.18 | ) | | | (1.38 | ) |
Year ended 3-31-2015 | | | 24.37 | | | | 0.11 | | | | 1.98 | | | | 2.09 | | | | (0.07 | ) | | | (0.74 | ) | | | (0.81 | ) |
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 9-30-2016 (unaudited) | | | 23.01 | | | | 0.21 | | | | 0.89 | | | | 1.10 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 25.66 | | | | 0.39 | | | | (1.52 | ) | | | (1.13 | ) | | | (0.34 | ) | | | (1.18 | ) | | | (1.52 | ) |
Year ended 3-31-2015(7) | | | 24.66 | | | | 0.22 | | | | 1.72 | | | | 1.94 | | | | (0.20 | ) | | | (0.74 | ) | | | (0.94 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.99 | | | | 0.17 | | | | 0.88 | | | | 1.05 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 25.66 | | | | 0.29 | | | | (1.52 | ) | | | (1.23 | ) | | | (0.26 | ) | | | (1.18 | ) | | | (1.44 | ) |
Year ended 3-31-2015 | | | 24.38 | | | | 0.20 | | | | 1.99 | | | | 2.19 | | | | (0.17 | ) | | | (0.74 | ) | | | (0.91 | ) |
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 | ) |
| * | 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. |
| (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 March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 50 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value, End of
Period | | | Total
Return(2) | | | Net Assets,
End of Period
(in millions) | | | Ratio of
Expenses to
Average Net
Assets | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets | | | Portfolio
Turnover
Rate | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 23.95 | | | | 4.57 | % | | $ | 850 | | | | 1.12 | %(3) | | | 1.41 | %(3) | | | 23 | % |
Year ended 3-31-2016 | | | 22.99 | | | | -4.92 | | | | 1,311 | | | | 1.10 | | | | 1.21 | | | | 56 | |
Year ended 3-31-2015 | | | 25.65 | | | | 9.06 | | | | 1,207 | | | | 1.11 | | | | 0.78 | | | | 33 | |
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 | |
Class B Shares(4) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.72 | | | | 4.20 | | | | 85 | | | | 1.84 | (3) | | | 0.67 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 22.78 | | | | -5.62 | | | | 80 | | | | 1.83 | | | | 0.48 | | | | 56 | |
Year ended 3-31-2015 | | | 25.45 | | | | 8.28 | | | | 74 | | | | 1.84 | | | | 0.04 | | | | 33 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.80 | | | | 4.25 | | | | 877 | | | | 1.80 | (3) | | | 0.71 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 22.85 | | | | -5.62 | | | | 892 | | | | 1.79 | | | | 0.53 | | | | 56 | |
Year ended 3-31-2015 | | | 25.53 | | | | 8.34 | | | | 736 | | | | 1.80 | | | | 0.09 | | | | 33 | |
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 | |
Class E Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.06 | | | | 4.67 | | | | — | * | | | 0.95 | (3) | | | 1.57 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 23.09 | | | | -4.82 | | | | — | * | | | 0.95 | | | | 1.36 | | | | 56 | |
Year ended 3-31-2015 | | | 25.76 | | | | 9.22 | | | | — | * | | | 0.96 | | | | 0.92 | | | | 33 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.95 | | | | 4.74 | | | | 761 | | | | 0.85 | (3) | | | 1.64 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 22.98 | | | | -4.70 | | | | 373 | | | | 0.84 | | | | 1.47 | | | | 56 | |
Year ended 3-31-2015 | | | 25.63 | | | | 9.34 | | | | 315 | | | | 0.86 | | | | 1.03 | | | | 33 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.92 | | | | 4.43 | | | | 13 | | | | 1.44 | (3) | | | 1.07 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 22.96 | | | | -5.29 | | | | 13 | | | | 1.44 | | | | 0.89 | | | | 56 | |
Year ended 3-31-2015 | | | 25.65 | | | | 8.71 | | | | 9 | | | | 1.46 | | | | 0.43 | | | | 33 | |
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 9-30-2016 (unaudited) | | | 23.98 | | | | 4.80 | | | | 9 | | | | 0.69 | (3) | | | 1.80 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 23.01 | | | | -4.57 | | | | 5 | | | | 0.69 | | | | 1.60 | | | | 56 | |
Year ended 3-31-2015 (7) | | | 25.66 | | | | 8.01 | | | | 4 | | | | 0.70 | (3) | | | 1.29 | (3) | | | 33 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.95 | | | | 4.58 | | | | 100 | | | | 1.09 | (3) | | | 1.42 | (3) | | | 23 | |
Year ended 3-31-2016 | | | 22.99 | | | | -4.95 | | | | 124 | | | | 1.09 | | | | 1.16 | | | | 56 | |
Year ended 3-31-2015 | | | 25.66 | | | | 9.10 | | | | 185 | | | | 1.11 | | | | 0.79 | | | | 33 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 51 | |
| | |
| 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
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 9-30-2016 (unaudited) | | $ | 10.75 | | | $ | (0.03 | ) | | $ | 2.58 | | | $ | 2.55 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 14.03 | | | | (0.03 | ) | | | (3.25 | ) | | | (3.28 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.38 | | | | (0.05 | ) | | | (2.30 | ) | | | (2.35 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.90 | | | | (0.08 | ) | | | 2.38 | | | | 2.30 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.04 | | | | (0.13 | ) | | | (3.01 | ) | | | (3.14 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 15.35 | | | | (0.17 | ) | | | (2.14 | ) | | | (2.31 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.08 | | | | (0.07 | ) | | | 2.42 | | | | 2.35 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.24 | | | | (0.10 | ) | | | (3.06 | ) | | | (3.16 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 15.55 | | | | (0.13 | ) | | | (2.18 | ) | | | (2.31 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class E Shares(6) | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.99 | | | | (0.02 | ) | | | 2.65 | | | | 2.63 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.30 | | | | 0.01 | | | | (3.32 | ) | | | (3.31 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.65 | | | | (0.01 | ) | | | (2.34 | ) | | | (2.35 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.11 | | | | (0.01 | ) | | | 2.67 | | | | 2.66 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.44 | | | | 0.02 | | | | (3.35 | ) | | | (3.33 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.80 | | | | 0.02 | | | | (2.38 | ) | | | (2.36 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.69 | | | | (0.05 | ) | | | 2.57 | | | | 2.52 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.98 | | | | (0.05 | ) | | | (3.24 | ) | | | (3.29 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.35 | | | | (0.08 | ) | | | (2.29 | ) | | | (2.37 | ) | | | — | | | | — | | | | — | |
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 9-30-2016 (unaudited) | | | 11.14 | | | | 0.00 | * | | | 2.68 | | | | 2.68 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.46 | | | | 0.04 | | | | (3.36 | ) | | | (3.32 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015(8) | | | 18.03 | | | | 0.03 | | | | (3.60 | ) | | | (3.57 | ) | | | — | | | | — | | | | — | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.89 | | | | (0.03 | ) | | | 2.62 | | | | 2.59 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.19 | | | | (0.01 | ) | | | (3.29 | ) | | | (3.30 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.55 | | | | (0.04 | ) | | | (2.32 | ) | | | (2.36 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
| * | 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. |
| (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 March 31, 2015. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
| | | | | | |
| 52 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 13.30 | | | | 23.72 | % | | $ | 191 | | | | 1.44 | %(4) | | | -0.51 | %(4) | | | — | % | | | — | % | | | 20 | % |
Year ended 3-31-2016 | | | 10.75 | | | | -23.38 | | | | 192 | | | | 1.49 | | | | -0.23 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 14.03 | | | | -14.35 | | | | 213 | | | | 1.48 | | | | -0.33 | | | | — | | | | — | | | | 22 | |
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 | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.20 | | | | 23.23 | | | | 4 | | | | 2.32 | (4) | | | -1.40 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 9.90 | | | | -24.08 | | | | 3 | | | | 2.36 | | | | -1.11 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 13.04 | | | | -15.05 | | | | 5 | | | | 2.29 | | | | -1.17 | | | | — | | | | — | | | | 22 | |
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 | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.43 | | | | 23.31 | | | | 95 | | | | 2.12 | (4) | | | -1.21 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 10.08 | | | | -23.87 | | | | 79 | | | | 2.16 | | | | -0.89 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 13.24 | | | | -14.85 | | | | 82 | | | | 2.09 | | | | -0.92 | | | | — | | | | — | | | | 22 | |
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 | |
Class E Shares(6) | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.62 | | | | 23.93 | | | | — | * | | | 1.19 | (4) | | | -0.28 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 10.99 | | | | -23.15 | | | | — | * | | | 1.20 | | | | 0.05 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 14.30 | | | | -14.11 | | | | — | * | | | 1.20 | | | | -0.08 | | | | — | | | | — | | | | 22 | |
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 | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.77 | | | | 23.94 | | | | 159 | | | | 1.09 | (4) | | | -0.20 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 11.11 | | | | -23.06 | | | | 85 | | | | 1.10 | | | | 0.16 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 14.44 | | | | -14.05 | | | | 82 | | | | 1.09 | | | | 0.10 | | | | — | | | | — | | | | 22 | |
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 | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.21 | | | | 23.57 | | | | 25 | | | | 1.68 | (4) | | | -0.77 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 10.69 | | | | -23.53 | | | | 19 | | | | 1.70 | | | | -0.43 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 13.98 | | | | -14.50 | | | | 15 | | | | 1.69 | | | | -0.53 | | | | — | | | | — | | | | 22 | |
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 9-30-2016 (unaudited) | | | 13.82 | | | | 24.06 | | | | 9 | | | | 0.93 | (4) | | | -0.05 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 11.14 | | | | -22.96 | | | | 5 | | | | 0.95 | | | | 0.35 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015(8) | | | 14.46 | | | | -19.80 | | | | 2 | | | | 0.93 | (4) | | | 0.34 | (4) | | | — | | | | — | | | | 22 | (10) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.48 | | | | 23.78 | | | | 49 | | | | 1.34 | (4) | | | -0.42 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 10.89 | | | | -23.26 | | | | 42 | | | | 1.36 | | | | -0.08 | | | | — | | | | — | | | | 31 | |
Year ended 3-31-2015 | | | 14.19 | | | | -14.26 | | | | 37 | | | | 1.34 | | | | -0.22 | | | | — | | | | — | | | | 22 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 53 | |
| | |
| 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
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 12.53 | | | $ | (0.02 | ) | | $ | 1.79 | | | $ | 1.77 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 16.13 | | | | 0.03 | | | | (3.63 | ) | | | (3.60 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 19.07 | | | | 0.00 | * | | | (2.94 | ) | | | (2.94 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.75 | | | | (0.08 | ) | | | 1.53 | | | | 1.45 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.98 | | | | (0.11 | ) | | | (3.12 | ) | | | (3.23 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.67 | | | | (0.15 | ) | | | (2.54 | ) | | | (2.69 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.55 | | | | (0.05 | ) | | | 1.51 | | | | 1.46 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.67 | | | | (0.06 | ) | | | (3.06 | ) | | | (3.12 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.26 | | | | (0.10 | ) | | | (2.49 | ) | | | (2.59 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.81 | | | | 0.02 | | | | 1.83 | | | | 1.85 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.43 | | | | 0.09 | | | | (3.71 | ) | | | (3.62 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 19.36 | | | | 0.06 | | | | (2.99 | ) | | | (2.93 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.02 | | | | 0.02 | | | | 1.86 | | | | 1.88 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.69 | | | | 0.10 | | | | (3.77 | ) | | | (3.67 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 19.63 | | | | 0.09 | | | | (3.03 | ) | | | (2.94 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.37 | | | | (0.02 | ) | | | 1.77 | | | | 1.75 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.94 | | | | 0.01 | | | | (3.58 | ) | | | (3.57 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 18.87 | | | | (0.02 | ) | | | (2.91 | ) | | | (2.93 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.06 | | | | 0.03 | | | | 1.87 | | | | 1.90 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.70 | | | | 0.13 | | | | (3.77 | ) | | | (3.64 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015(6) | | | 20.86 | | | | 0.11 | | | | (4.27 | ) | | | (4.16 | ) | | | — | | | | — | | | | — | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.80 | | | | 0.00 | * | | | 1.84 | | | | 1.84 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.45 | | | | 0.06 | | | | (3.71 | ) | | | (3.65 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 19.39 | | | | 0.04 | | | | (2.98 | ) | | | (2.94 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
| * | 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
| | | | | | |
| 54 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 14.30 | | | | 14.13 | % | | $ | 348 | | | | 1.75 | %(4) | | | -0.28 | %(4) | | | — | % | | | — | % | | | 42 | % |
Year ended 3-31-2016 | | | 12.53 | | | | -22.32 | | | | 415 | | | | 1.66 | | | | 0.18 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 16.13 | | | | -15.42 | | | | 645 | | | | 1.57 | | | | -0.03 | | | | — | | | | — | | | | 22 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.20 | | | | 13.49 | | | | 9 | | | | 2.82 | (4) | | | -1.35 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 10.75 | | | | -23.10 | | | | 10 | | | | 2.65 | | | | -0.85 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 13.98 | | | | -16.14 | | | | 21 | | | | 2.47 | | | | -0.95 | | | | — | | | | — | | | | 22 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.01 | | | | 13.84 | | | | 112 | | | | 2.36 | (4) | | | -0.89 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 10.55 | | | | -22.82 | | | | 110 | | | | 2.30 | | | | -0.47 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 13.67 | | | | -15.93 | | | | 187 | | | | 2.20 | | | | -0.65 | | | | — | | | | — | | | | 22 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.66 | | | | 14.44 | | | | 5 | | | | 1.26 | (4) | | | 0.22 | (4) | | | 2.25 | (4) | | | -0.77 | (4) | | | 42 | |
Year ended 3-31-2016 | | | 12.81 | | | | -22.03 | | | | 4 | | | | 1.26 | | | | 0.59 | | | | 2.21 | | | | -0.36 | | | | 17 | |
Year ended 3-31-2015 | | | 16.43 | | | | -15.13 | | | | 6 | | | | 1.27 | | | | 0.32 | | | | 2.03 | | | | -0.44 | | | | 22 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.90 | | | | 14.44 | | | | 190 | | | | 1.22 | (4) | | | 0.26 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 13.02 | | | | -21.99 | | | | 103 | | | | 1.16 | | | | 0.67 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 16.69 | | | | -14.98 | | | | 174 | | | | 1.11 | | | | 0.47 | | | | — | | | | — | | | | 22 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.12 | | | | 14.15 | | | | 27 | | | | 1.77 | (4) | | | -0.29 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 12.37 | | | | -22.40 | | | | 24 | | | | 1.75 | | | | 0.10 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 15.94 | | | | -15.53 | | | | 33 | | | | 1.69 | | | | -0.12 | | | | — | | | | — | | | | 22 | |
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 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.96 | | | | 14.55 | | | | 11 | | | | 1.02 | (4) | | | 0.45 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 13.06 | | | | -21.80 | | | | 11 | | | | 1.00 | | | | 0.92 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015(6) | | | 16.70 | | | | -19.94 | | | | 5 | | | | 0.95 | (4) | | | 0.97 | (4) | | | — | | | | — | | | | 22 | (7) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.64 | | | | 14.38 | | | | 36 | | | | 1.43 | (4) | | | 0.05 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 12.80 | | | | -22.19 | | | | 33 | | | | 1.40 | | | | 0.42 | | | | — | | | | — | | | | 17 | |
Year ended 3-31-2015 | | | 16.45 | | | | -15.16 | | | | 60 | | | | 1.35 | | | | 0.20 | | | | — | | | | — | | | | 22 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 55 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LASALLE GLOBAL REAL ESTATE 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 9-30-2016 (unaudited) | | $ | 10.58 | | | $ | 0.06 | | | $ | 0.20 | | | $ | 0.26 | | | $ | (0.15 | ) | | $ | — | | | $ | (0.15 | ) |
Year ended 3-31-2016 | | | 11.15 | | | | 0.17 | | | | (0.41 | ) | | | (0.24 | ) | | | (0.13 | ) | | | (0.20 | ) | | | (0.33 | ) |
Year ended 3-31-2015 | | | 9.83 | | | | 0.13 | | | | 1.46 | | | | 1.59 | | | | (0.19 | ) | | | (0.08 | ) | | | (0.27 | ) |
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 9-30-2016 (unaudited) | | | 10.56 | | | | 0.02 | | | | 0.18 | | | | 0.20 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 11.10 | | | | 0.06 | | | | (0.40 | ) | | | (0.34 | ) | | | (0.01 | ) | | | (0.19 | ) | | | (0.20 | ) |
Year ended 3-31-2015 | | | 9.79 | | | | 0.01 | | | | 1.46 | | | | 1.47 | | | | (0.08 | ) | | | (0.08 | ) | | | (0.16 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.00 | * | | | (0.12 | ) | | | (0.12 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.55 | | | | 0.02 | | | | 0.17 | | | | 0.19 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 11.10 | | | | 0.04 | | | | (0.41 | ) | | | (0.37 | ) | | | — | | | | (0.18 | ) | | | (0.18 | ) |
Year ended 3-31-2015 | | | 9.80 | | | | (0.01 | ) | | | 1.47 | | | | 1.46 | | | | (0.08 | ) | | | (0.08 | ) | | | (0.16 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.00 | * | | | (0.11 | ) | | | (0.11 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.57 | | | | 0.12 | | | | 0.13 | | | | 0.25 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 11.14 | | | | 0.17 | | | | (0.42 | ) | | | (0.25 | ) | | | (0.12 | ) | | | (0.20 | ) | | | (0.32 | ) |
Year ended 3-31-2015 | | | 9.82 | | | | 0.12 | | | | 1.46 | | | | 1.58 | | | | (0.18 | ) | | | (0.08 | ) | | | (0.26 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.09 | | | | (0.11 | ) | | | (0.02 | ) | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.57 | | | | 0.04 | | | | 0.19 | | | | 0.23 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 11.12 | | | | 0.10 | | | | (0.41 | ) | | | (0.31 | ) | | | (0.04 | ) | | | (0.20 | ) | | | (0.24 | ) |
Year ended 3-31-2015 | | | 9.81 | | | | 0.05 | | | | 1.46 | | | | 1.51 | | | | (0.12 | ) | | | (0.08 | ) | | | (0.20 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.04 | | | | (0.11 | ) | | | (0.07 | ) | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.64 | | | | 0.08 | | | | 0.23 | | | | 0.31 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 11.22 | | | | 0.17 | | | | (0.42 | ) | | | (0.25 | ) | | | (0.13 | ) | | | (0.20 | ) | | | (0.33 | ) |
Year ended 3-31-2015 | | | 9.89 | | | | 0.12 | | | | 1.48 | | | | 1.60 | | | | (0.19 | ) | | | (0.08 | ) | | | (0.27 | ) |
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. |
| (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%. |
.
| | | | | | |
| 56 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 10.69 | | | | 2.56 | % | | $ | 13 | | | | 1.51 | %(4) | | | 1.14 | %(4) | | | 2.17 | %(4) | | | 0.48 | %(4) | | | 21 | % |
Year ended 3-31-2016 | | | 10.58 | | | | -2.00 | | | | 29 | | | | 1.51 | | | | 1.67 | | | | 2.12 | | | | 1.06 | | | | 59 | |
Year ended 3-31-2015 | | | 11.15 | | | | 16.31 | | | | 28 | | | | 1.51 | | | | 1.22 | | | | 2.14 | | | | 0.59 | | | | 63 | |
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 9-30-2016 (unaudited) | | | 10.61 | | | | 1.90 | | | | — | * | | | 2.66 | (4) | | | 0.43 | (4) | | | — | | | | — | | | | 21 | |
Year ended 3-31-2016 | | | 10.56 | | | | -3.03 | | | | — | * | | | 2.56 | | | | 0.62 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.10 | | | | 15.05 | | | | — | * | | | 2.66 | | | | 0.06 | | | | — | | | | — | | | | 63 | |
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 9-30-2016 (unaudited) | | | 10.61 | | | | 1.88 | | | | 1 | | | | 2.78 | (4) | | | 0.37 | (4) | | | — | | | | — | | | | 21 | |
Year ended 3-31-2016 | | | 10.55 | | | | -3.21 | | | | 1 | | | | 2.74 | | | | 0.41 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.10 | | | | 14.92 | | | | 1 | | | | 2.68 | | | | -0.09 | | | | — | | | | — | | | | 63 | |
Year ended 3-31-2014 | | | 9.80 | | | | -1.03 | | | | 1 | | | | 2.67 | (7) | | | — | | | | 3.12 | | | | -0.45 | | | | 36 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.67 | | | | 2.45 | | | | 20 | | | | 1.73 | (4) | | | 2.15 | (4) | | | — | | | | — | | | | 21 | |
Year ended 3-31-2016 | | | 10.57 | | | | -2.11 | | | | 3 | | | | 1.59 | | | | 1.59 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.14 | | | | 16.14 | | | | 3 | | | | 1.62 | | | | 1.08 | | | | — | | | | — | | | | 63 | |
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 9-30-2016 (unaudited) | | | 10.65 | | | | 2.22 | | | | 1 | | | | 2.25 | (4) | | | 0.84 | (4) | | | — | | | | — | | | | 21 | |
Year ended 3-31-2016 | | | 10.57 | | | | -2.68 | | | | — | * | | | 2.20 | | | | 0.99 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.12 | | | | 15.40 | | | | 1 | | | | 2.25 | | | | 0.50 | | | | — | | | | — | | | | 63 | |
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 9-30-2016 (unaudited) | | | 10.80 | | | | 3.02 | | | | 1 | | | | 1.51 | (4) | | | 1.54 | (4) | | | 1.94 | (4) | | | 1.11 | (4) | | | 21 | |
Year ended 3-31-2016 | | | 10.64 | | | | -2.08 | | | | 1 | | | | 1.51 | | | | 1.63 | | | | 1.86 | | | | 1.28 | | | | 59 | |
Year ended 3-31-2015 | | | 11.22 | | | | 16.32 | | | | 1 | | | | 1.51 | | | | 1.15 | | | | 1.90 | | | | 0.76 | | | | 63 | |
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.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 57 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LASALLE 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 9-30-2016 (unaudited) | | $ | 11.39 | | | $ | 0.09 | | | $ | 0.29 | | | $ | 0.38 | | | $ | (0.24 | ) | | $ | — | | | $ | (0.24 | ) |
Year ended 3-31-2016 | | | 11.06 | | | | 0.22 | | | | 0.35 | | | | 0.57 | | | | (0.13 | ) | | | (0.11 | ) | | | (0.24 | ) |
Year ended 3-31-2015 | | | 9.72 | | | | 0.14 | | | | 1.48 | | | | 1.62 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
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 9-30-2016 (unaudited) | | | 11.38 | | | | 0.06 | | | | 0.29 | | | | 0.35 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
Year ended 3-31-2016 | | | 11.04 | | | | 0.15 | | | | 0.33 | | | | 0.48 | | | | (0.03 | ) | | | (0.11 | ) | | | (0.14 | ) |
Year ended 3-31-2015 | | | 9.70 | | | | 0.06 | | | | 1.46 | | | | 1.52 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.03 | | | | (0.23 | ) | | | (0.20 | ) | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.38 | | | | 0.08 | | | | 0.27 | | | | 0.35 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
Year ended 3-31-2016 | | | 11.04 | | | | 0.13 | | | | 0.33 | | | | 0.46 | | | | (0.02 | ) | | | (0.10 | ) | | | (0.12 | ) |
Year ended 3-31-2015 | | | 9.70 | | | | 0.05 | | | | 1.47 | | | | 1.52 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.03 | | | | (0.23 | ) | | | (0.20 | ) | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.39 | | | | 0.15 | | | | 0.26 | | | | 0.41 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2016 | | | 11.07 | | | | 0.24 | | | | 0.34 | | | | 0.58 | | | | (0.15 | ) | | | (0.11 | ) | | | (0.26 | ) |
Year ended 3-31-2015 | | | 9.72 | | | | 0.15 | | | | 1.47 | | | | 1.62 | | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.12 | | | | (0.24 | ) | | | (0.12 | ) | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.39 | | | | 0.08 | | | | 0.28 | | | | 0.36 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
Year ended 3-31-2016 | | | 11.05 | | | | 0.18 | | | | 0.34 | | | | 0.52 | | | | (0.07 | ) | | | (0.11 | ) | | | (0.18 | ) |
Year ended 3-31-2015 | | | 9.70 | | | | 0.09 | | | | 1.47 | | | | 1.56 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
Year ended 3-31-2014 | | | 10.00 | | | | 0.06 | | | | (0.24 | ) | | | (0.18 | ) | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.40 | | | | 0.11 | | | | 0.28 | | | | 0.39 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2016 | | | 11.07 | | | | 0.23 | | | | 0.33 | | | | 0.56 | | | | (0.12 | ) | | | (0.11 | ) | | | (0.23 | ) |
Year ended 3-31-2015 | | | 9.72 | | | | 0.13 | | | | 1.50 | | | | 1.63 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
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. |
| (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%. |
.
| | | | | | |
| 58 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 11.53 | | | | 3.44 | % | | $ | 50 | | | | 1.51 | %(4) | | | 1.62 | %(4) | | | 1.64 | %(4) | | | 1.49 | %(4) | | | 27 | % |
Year ended 3-31-2016 | | | 11.39 | | | | 5.27 | | | | 65 | | | | 1.51 | | | | 2.08 | | | | 1.76 | | | | 1.83 | | | | 59 | |
Year ended 3-31-2015 | | | 11.06 | | | | 16.77 | | | | 43 | | | | 1.50 | | | | 1.31 | | | | 1.83 | | | | 0.98 | | | | 53 | |
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 9-30-2016 (unaudited) | | | 11.49 | | | | 3.13 | | | | 1 | | | | 2.30 | (4) | | | 1.10 | (4) | | | — | | | | — | | | | 27 | |
Year ended 3-31-2016 | | | 11.38 | | | | 4.36 | | | | 1 | | | | 2.33 | | | | 1.42 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.04 | | | | 15.74 | | | | 1 | | | | 2.34 | | | | 0.57 | | | | — | | | | — | | | | 53 | |
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 9-30-2016 (unaudited) | | | 11.49 | | | | 3.10 | | | | 9 | | | | 2.28 | (4) | | | 1.40 | (4) | | | — | | | | — | | | | 27 | |
Year ended 3-31-2016 | | | 11.38 | | | | 4.34 | | | | 4 | | | | 2.35 | | | | 1.24 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.04 | | | | 15.72 | | | | 3 | | | | 2.38 | | | | 0.43 | | | | — | | | | — | | | | 53 | |
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 9-30-2016 (unaudited) | | | 11.55 | | | | 3.64 | | | | 55 | | | | 1.31 | (4) | | | 2.64 | (4) | | | 1.33 | (4) | | | 2.62 | (4) | | | 27 | |
Year ended 3-31-2016 | | | 11.39 | | | | 5.37 | | | | 11 | | | | 1.39 | | | | 2.25 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.07 | | | | 16.79 | | | | 10 | | | | 1.47 | | | | 1.46 | | | | — | | | | — | | | | 53 | |
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 9-30-2016 (unaudited) | | | 11.51 | | | | 3.24 | | | | 3 | | | | 1.92 | (4) | | | 1.45 | (4) | | | — | | | | — | | | | 27 | |
Year ended 3-31-2016 | | | 11.39 | | | | 4.78 | | | | 2 | | | | 1.99 | | | | 1.66 | | | | — | | | | — | | | | 59 | |
Year ended 3-31-2015 | | | 11.05 | | | | 16.15 | | | | 2 | | | | 2.07 | | | | 0.88 | | | | — | | | | — | | | | 53 | |
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 9-30-2016 (unaudited) | | | 11.54 | | | | 3.46 | | | | 5 | | | | 1.51 | (4) | | | 1.85 | (4) | | | 1.57 | (4) | | | 1.79 | (4) | | | 27 | |
Year ended 3-31-2016 | | | 11.40 | | | | 5.25 | | | | 4 | | | | 1.51 | | | | 2.19 | | | | 1.67 | | | | 2.03 | | | | 59 | |
Year ended 3-31-2015 | | | 11.07 | | | | 16.87 | | | | 5 | | | | 1.51 | | | | 1.26 | | | | 1.71 | | | | 1.06 | | | | 53 | |
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.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 59 | |
| | |
| 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 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 9-30-2016 (unaudited) | | $ | 28.60 | | | $ | 0.12 | | | $ | 0.92 | | | $ | 1.04 | | | $ | (0.16 | ) | | $ | — | | | $ | (0.16 | ) |
Year ended 3-31-2016 | | | 29.38 | | | | 0.33 | | | | 0.52 | | | | 0.85 | | | | (0.29 | ) | | | (1.34 | ) | | | (1.63 | ) |
Year ended 3-31-2015 | | | 24.35 | | | | 0.21 | | | | 5.86 | | | | 6.07 | | | | (0.17 | ) | | | (0.87 | ) | | | (1.04 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.80 | | | | 0.02 | | | | 0.86 | | | | 0.88 | | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2016 | | | 28.58 | | | | 0.11 | | | | 0.48 | | | | 0.59 | | | | (0.03 | ) | | | (1.34 | ) | | | (1.37 | ) |
Year ended 3-31-2015 | | | 23.77 | | | | (0.03 | ) | | | 5.67 | | | | 5.64 | | | | — | | | | (0.83 | ) | | | (0.83 | ) |
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 | | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.15 | | | | 0.05 | | | | 0.88 | | | | 0.93 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 28.92 | | | | 0.13 | | | | 0.52 | | | | 0.65 | | | | (0.08 | ) | | | (1.34 | ) | | | (1.42 | ) |
Year ended 3-31-2015 | | | 24.02 | | | | 0.00 | * | | | 5.78 | | | | 5.78 | | | | (0.01 | ) | | | (0.87 | ) | | | (0.88 | ) |
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 | | | | — | | | | — | | | | — | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.60 | | | | 0.16 | | | | 0.88 | | | | 1.04 | | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Year ended 3-31-2016 | | | 29.37 | | | | 0.30 | | | | 0.54 | | | | 0.84 | | | | (0.27 | ) | | | (1.34 | ) | | | (1.61 | ) |
Year ended 3-31-2015 | | | 24.35 | | | | 0.13 | | | | 5.87 | | | | 6.00 | | | | (0.11 | ) | | | (0.87 | ) | | | (0.98 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.75 | | | | 0.35 | | | | 0.75 | | | | 1.10 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2016 | | | 29.53 | | | | 0.44 | | | | 0.54 | | | | 0.98 | | | | (0.42 | ) | | | (1.34 | ) | | | (1.76 | ) |
Year ended 3-31-2015 | | | 24.50 | | | | 0.32 | | | | 5.90 | | | | 6.22 | | | | (0.32 | ) | | | (0.87 | ) | | | (1.19 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.59 | | | | 0.14 | | | | 0.88 | | | | 1.02 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 29.37 | | | | 0.31 | | | | 0.49 | | | | 0.80 | | | | (0.24 | ) | | | (1.34 | ) | | | (1.58 | ) |
Year ended 3-31-2015 | | | 24.35 | | | | 0.20 | | | | 5.81 | | | | 6.01 | | | | (0.12 | ) | | | (0.87 | ) | | | (0.99 | ) |
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 | ) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.78 | | | | 0.25 | | | | 0.89 | | | | 1.14 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2016 | | | 29.56 | | | | 0.50 | | | | 0.52 | | | | 1.02 | | | | (0.46 | ) | | | (1.34 | ) | | | (1.80 | ) |
Year ended 3-31-2015 (6) | | | 26.13 | | | | 0.20 | | | | 4.34 | | | | 4.54 | | | | (0.24 | ) | | | (0.87 | ) | | | (1.11 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.62 | | | | 0.18 | | | | 0.89 | | | | 1.07 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2016 | | | 29.40 | | | | 0.40 | | | | 0.51 | | | | 0.91 | | | | (0.35 | ) | | | (1.34 | ) | | | (1.69 | ) |
Year ended 3-31-2015 | | | 24.39 | | | | 0.28 | | | | 5.84 | | | | 6.12 | | | | (0.24 | ) | | | (0.87 | ) | | | (1.11 | ) |
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 | ) |
| * | 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
| | | | | | |
| 60 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 29.48 | | | | 3.65 | % | | $ | 305 | | | | 1.44 | %(4) | | | 0.79 | %(4) | | | 1.54 | %(4) | | | 0.69 | %(4) | | | 29 | % |
Year ended 3-31-2016 | | | 28.60 | | | | 3.41 | | | | 507 | | | | 1.47 | | | | 1.22 | | | | 1.57 | | | | 1.12 | | | | 66 | |
Year ended 3-31-2015 | | | 29.38 | | | | 25.19 | | | | 543 | | | | 1.46 | | | | 0.78 | | | | 1.56 | | | | 0.68 | | | | 48 | |
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 | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.61 | | | | 3.18 | | | | 4 | | | | 2.34 | (4) | | | 0.13 | (4) | | | 2.44 | (4) | | | 0.03 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 27.80 | | | | 2.48 | | | | 5 | | | | 2.37 | | | | 0.41 | | | | 2.47 | | | | 0.31 | | | | 66 | |
Year ended 3-31-2015 | | | 28.58 | | | | 23.95 | | | | 6 | | | | 2.41 | | | | -0.10 | | | | 2.51 | | | | -0.20 | | | | 48 | |
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 | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 28.99 | | | | 3.29 | | | | 20 | | | | 2.13 | (4) | | | 0.37 | (4) | | | 2.23 | (4) | | | 0.27 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.15 | | | | 2.67 | | | | 19 | | | | 2.18 | | | | 0.48 | | | | 2.28 | | | | 0.38 | | | | 66 | |
Year ended 3-31-2015 | | | 28.92 | | | | 24.27 | | | | 21 | | | | 2.18 | | | | 0.01 | | | | 2.28 | | | | -0.09 | | | | 48 | |
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 | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 29.48 | | | | 3.64 | | | | 4 | | | | 1.45 | (4) | | | 1.10 | (4) | | | 1.79 | (4) | | | 0.76 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.60 | | | | 3.36 | | | | 4 | | | | 1.52 | | | | 1.11 | | | | 1.87 | | | | 0.76 | | | | 66 | |
Year ended 3-31-2015 | | | 29.37 | | | | 24.88 | | | | 4 | | | | 1.67 | | | | 0.49 | | | | 1.93 | | | | 0.23 | | | | 48 | |
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 | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 29.63 | | | | 3.85 | | | | 221 | | | | 1.06 | (4) | | | 2.29 | (4) | | | 1.16 | (4) | | | 2.19 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.75 | | | | 3.86 | | | | 13 | | | | 1.03 | | | | 1.58 | | | | 1.13 | | | | 1.48 | | | | 66 | |
Year ended 3-31-2015 | | | 29.53 | | | | 25.74 | | | | 13 | | | | 1.02 | | | | 1.18 | | | | 1.12 | | | | 1.08 | | | | 48 | |
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 | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 29.48 | | | | 3.58 | | | | 2 | | | | 1.63 | (4) | | | 0.95 | (4) | | | 1.73 | (4) | | | 0.85 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.59 | | | | 3.21 | | | | 2 | | | | 1.65 | | | | 1.13 | | | | 1.75 | | | | 1.03 | | | | 66 | |
Year ended 3-31-2015 | | | 29.37 | | | | 24.92 | | | | 2 | | | | 1.64 | | | | 0.72 | | | | 1.74 | | | | 0.62 | | | | 48 | |
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 | |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 29.67 | | | | 3.96 | | | | 3 | | | | 0.87 | (4) | | | 1.66 | (4) | | | 0.97 | (4) | | | 1.56 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.78 | | | | 4.02 | | | | 3 | | | | 0.87 | | | | 1.83 | | | | 0.97 | | | | 1.73 | | | | 66 | |
Year ended 3-31-2015 (6) | | | 29.56 | | | | 17.66 | | | | 4 | | | | 0.86 | (4) | | | 1.10 | (4) | | | 0.96 | (4) | | | 1.00 | (4) | | | 48 | (7) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 29.50 | | | | 3.75 | | | | 159 | | | | 1.26 | (4) | | | 1.25 | (4) | | | 1.36 | (4) | | | 1.15 | (4) | | | 29 | |
Year ended 3-31-2016 | | | 28.62 | | | | 3.62 | | | | 152 | | | | 1.26 | | | | 1.46 | | | | 1.36 | | | | 1.36 | | | | 66 | |
Year ended 3-31-2015 | | | 29.40 | | | | 25.41 | | | | 180 | | | | 1.26 | | | | 1.05 | | | | 1.36 | | | | 0.95 | | | | 48 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 61 | |
| | |
| 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
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 9-30-2016 (unaudited) | | $ | 46.35 | | | $ | (0.16 | ) | | $ | 4.62 | | | $ | 4.46 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 55.95 | | | | (0.35 | ) | | | (7.99 | ) | | | (8.34 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 52.71 | | | | (0.36 | ) | | | 4.77 | | | | 4.41 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 39.32 | | | | (0.29 | ) | | | 3.90 | | | | 3.61 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 48.01 | | | | (0.63 | ) | | | (6.80 | ) | | | (7.43 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 45.73 | | | | (0.65 | ) | | | 4.10 | | | | 3.45 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 40.70 | | | | (0.28 | ) | | | 4.04 | | | | 3.76 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 49.63 | | | | (0.63 | ) | | | (7.04 | ) | | | (7.67 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 47.21 | | | | (0.65 | ) | | | 4.24 | | | | 3.59 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 46.08 | | | | (0.17 | ) | | | 4.59 | | | | 4.42 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 55.70 | | | | (0.42 | ) | | | (7.94 | ) | | | (8.36 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 52.57 | | | | (0.45 | ) | | | 4.75 | | | | 4.30 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 50.49 | | | | (0.09 | ) | | | 5.03 | | | | 4.94 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 60.64 | | | | (0.22 | ) | | | (8.67 | ) | | | (8.89 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 56.87 | | | | (0.23 | ) | | | 5.17 | | | | 4.94 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 45.45 | | | | (0.22 | ) | | | 4.52 | | | | 4.30 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 55.05 | | | | (0.49 | ) | | | (7.85 | ) | | | (8.34 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 52.04 | | | | (0.52 | ) | | | 4.70 | | | | 4.18 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 50.62 | | | | (0.05 | ) | | | 5.05 | | | | 5.00 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 60.70 | | | | (0.12 | ) | | | (8.70 | ) | | | (8.82 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015(6) | | | 57.21 | | | | (0.12 | ) | | | 4.78 | | | | 4.66 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 48.70 | | | | (0.15 | ) | | | 4.85 | | | | 4.70 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 58.68 | | | | (0.34 | ) | | | (8.38 | ) | | | (8.72 | ) | | | — | | | | (1.26 | ) | | | (1.26 | ) |
Year ended 3-31-2015 | | | 55.20 | | | | (0.35 | ) | | | 5.00 | | | | 4.65 | | | | — | | | | (1.17 | ) | | | (1.17 | ) |
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 | ) |
| (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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
.
| | | | | | |
| 62 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 50.81 | | | | 9.62 | % | | $ | 1,231 | | | | 1.33 | %(4) | | | -0.69 | %(4) | | | — | % | | | — | % | | | 4 | % |
Year ended 3-31-2016 | | | 46.35 | | | | -15.10 | | | | 1,790 | | | | 1.28 | | | | -0.69 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 55.95 | | | | 8.48 | | | | 2,198 | | | | 1.26 | | | | -0.67 | | | | — | | | | — | | | | 32 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 42.93 | | | | 9.18 | | | | 49 | | | | 2.07 | (4) | | | -1.42 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 39.32 | | | | -15.71 | | | | 52 | | | | 2.02 | | | | -1.42 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 48.01 | | | | 7.67 | | | | 69 | | | | 2.01 | | | | -1.42 | | | | — | | | | — | | | | 32 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 44.46 | | | | 9.24 | | | | 750 | | | | 2.00 | (4) | | | -1.35 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 40.70 | | | | -15.68 | | | | 833 | | | | 1.97 | | | | -1.37 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 49.63 | | | | 7.73 | | | | 999 | | | | 1.95 | | | | -1.37 | | | | — | | | | — | | | | 32 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 50.50 | | | | 9.59 | | | | 22 | | | | 1.36 | (4) | | | -0.70 | (4) | | | 1.60 | (4) | | | -0.94 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 46.08 | | | | -15.21 | | | | 21 | | | | 1.41 | | | | -0.82 | | | | 1.54 | | | | -0.95 | | | | 24 | |
Year ended 3-31-2015 | | | 55.70 | | | | 8.29 | | | | 22 | | | | 1.43 | | | | -0.84 | | | | 1.55 | | | | -0.96 | | | | 32 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 55.43 | | | | 9.78 | | | | 1,241 | | | | 1.00 | (4) | | | -0.35 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 50.49 | | | | -14.84 | | | | 1,364 | | | | 0.97 | | | | -0.39 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 60.64 | | | | 8.79 | | | | 1,871 | | | | 0.97 | | | | -0.39 | | | | — | | | | — | | | | 32 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 49.75 | | | | 9.46 | | | | 104 | | | | 1.59 | (4) | | | -0.94 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 45.45 | | | | -15.35 | | | | 110 | | | | 1.57 | | | | -0.98 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 55.05 | | | | 8.15 | | | | 114 | | | | 1.57 | | | | -0.98 | | | | — | | | | — | | | | 32 | |
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 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 55.62 | | | | 9.88 | | | | 87 | | | | 0.84 | (4) | | | -0.18 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 50.62 | | | | -14.71 | | | | 65 | | | | 0.83 | | | | -0.22 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015(6) | | | 60.70 | | | | 8.25 | | | | 12 | | | | 0.82 | (4) | | | -0.32 | (4) | | | — | | | | — | | | | 32 | (7) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 53.40 | | | | 9.65 | | | | 709 | | | | 1.24 | (4) | | | -0.59 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 48.70 | | | | -15.04 | | | | 754 | | | | 1.22 | | | | -0.63 | | | | — | | | | — | | | | 24 | |
Year ended 3-31-2015 | | | 58.68 | | | | 8.53 | | | | 1,030 | | | | 1.22 | | | | -0.63 | | | | — | | | | — | | | | 32 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 63 | |
| | |
| NOTES TO FINANCIAL STATEMENTS | | IVY FUNDS (tabular amounts in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
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 LaSalle Global Real Estate Fund, Ivy LaSalle 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. 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 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 approved 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.
Income Taxes. It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and to 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. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The Funds’ tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax returns. Management of the Trust periodically reviews all tax positions to assess whether 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 the date of these financial statements, management believes that no liability for unrecognized tax positions is required.
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| 64 | | SEMIANNUAL REPORT | | 2016 | | |
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 exceed net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a return of capital for tax purposes.
Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”), the Dodd Frank Wall Street Reform and Consumer Protection Act, or the interpretive rules and regulations of the U.S. Commodities Futures Trading Commission 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.
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 non-investment-grade bonds, that 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.
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 65 | |
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, the debtor of which may be a domestic or foreign corporation, partnership or other entity (“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, the London Interbank Offered Rate (“LIBOR”) 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, as amended, 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 direct 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 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 cash or in 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 Trustees 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 Chief Compliance Officer of the Funds are shown on the Statement of Operations.
Indemnification. 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
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| 66 | | SEMIANNUAL REPORT | | 2016 | | |
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 financial instruments 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 the last reported sales price, 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 approved 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 based on quotes that are obtained from an independent pricing service approved by the Board as described in the preceding paragraph above.
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 financial instruments are valued at fair value, as determined in good faith by the Board or Valuation Committee 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 financial instruments. 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 financial instruments and for determining whether the value of the applicable securities or financial instruments should be re-evaluated in light of such significant events. The Board 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 financial instruments 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 financial instrument cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or financial instrument 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 its 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 are sold.
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 67 | |
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 its 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, as obtained from an independent pricing service, 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, are provided by an independent pricing service. Swaps derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. 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
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| 68 | | SEMIANNUAL REPORT | | 2016 | | |
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 ask 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 used by and obtained from an independent pricing service 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 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 to the extent that significant inputs to valuation are unobservable, because they trade infrequently, if at all 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 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. 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 and/or affiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 69 | |
affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2016, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities.
| 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.
Ivy Asset Strategy Fund and Ivy Global Natural Resources Fund enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).
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. 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.
Ivy Asset Strategy Fund, Ivy Balanced Fund and Ivy Science and Technology Fund purchase and write call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.
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 with collateral, which is generally held by the Fund’s custodian or broker. 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.
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| 70 | | SEMIANNUAL REPORT | | 2016 | | |
Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 2016:
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 Asset Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value* | | $ | 21 | | | $ | — | | | $ | 21 | | | $ | (21 | ) | | $ | — | | | $ | — | | | $ | — | |
Unrealized appreciation on forward foreign currency contracts | | | 451 | | | | — | | | | 451 | | | | — | | | | — | | | | (451 | ) | | | — | |
Total | | $ | 472 | | | $ | — | | | $ | 472 | | | $ | (21 | ) | | $ | — | | | $ | (451 | ) | | $ | — | |
Ivy Global Natural Resources Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized appreciation on forward foreign currency contracts | | $ | 648 | | | $ | — | | | $ | 648 | | | $ | — | | | $ | (631 | ) | | $ | — | | | $ | 17 | |
Ivy Science and Technology Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value* | | $ | 16 | | | $ | — | | | $ | 16 | | | $ | (13 | ) | | $ | — | | | $ | — | | | $ | 3 | |
| * | Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities. |
Liabilities
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | Gross Amounts Not Offset on the
Statement of Assets and Liabilities | |
| Fund | | Gross
Amounts of
Recognized
Liabilities | | | Gross
Amounts
Offset on
the
Statement
of Assets
and
Liabilities | | | Net Amounts of
Liabilities
Presented on
the Statement
of Assets and
Liabilities | | | Financial
Instruments
and
Derivatives
Available for
Offset | | | Non-Cash
Collateral
Pledged | | | Cash Collateral
Pledged | | | Net Amount
Payable | |
Ivy Asset Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Written options at value | | $ | 4,192 | | | $ | — | | | $ | 4,192 | | | $ | (21 | ) | | $ | (4,171 | ) | | $ | — | | | $ | — | |
Ivy Science and Technology Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Written options at value | | $ | 13 | | | $ | — | | | $ | 13 | | | $ | (13 | ) | | $ | — | | | $ | — | | | $ | — | |
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 71 | |
Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of September 30, 2016:
| | | | | | | | | | | | | | |
| | | | | 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* | | | $21 | | | Written options at value | | | $4,192 | |
| | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 451 | | | | | | — | |
| Ivy Global Natural Resources Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 648 | | | | | | — | |
| Ivy Science and Technology Fund | | Equity | | Investments in unaffiliated securities at value* | | | 34 | | | Written options at value | | | 13 | |
| * | 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, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 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 | | $ | (3,193) | | | $ | — | | | $ | — | | | $ | 5,073 | | | $ | — | | | $ | 1,880 | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | (918 | ) | | | (918 | ) |
Ivy Balanced Fund | | Equity | | | (38,339 | ) | | | — | | | | — | | | | 7,189 | | | | — | | | | (31,150 | ) |
| Ivy Global Natural Resources Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 4,747 | | | | 4,747 | |
Ivy Science and Technology Fund | | Equity | | | (83 | ) | | | — | | | | — | | | | 3,551 | | | | — | | | | 3,468 | |
| * | 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, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 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 | | $ | (3,625) | | | $ | — | | | $ | — | | | $ | (444) | | | $ | — | | | $ | (4,069) | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 1,183 | | | | 1,183 | |
Ivy Balanced Fund | | Equity | | | 15,179 | | | | — | | | | — | | | | (2,654 | ) | | | — | | | | 12,525 | |
| Ivy Global Natural Resources Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 393 | | | | 393 | |
Ivy Science and Technology Fund | | Equity | | | (1,460 | ) | | | — | | | | — | | | | (1,237 | ) | | | — | | | | (2,697 | ) |
| * | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
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| 72 | | SEMIANNUAL REPORT | | 2016 | | |
During the period ended September 30, 2016, the average derivative volume was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Forward foreign
currency contracts(1) | | | Long futures
contracts(1) | | | Short futures
contracts(1) | | | Swap
agreements(2) | | | Purchased options(1) | | | Written options(1) | |
| Ivy Asset Strategy Fund | | $ | 18 | | | $ | — | | | $ | — | | | $ | — | | | $ | 1,664 | | | $ | 5,018 | |
| Ivy Balanced Fund | | | — | | | | — | | | | — | | | | — | | | | 2,853 | | | | 428 | |
| Ivy Global Natural Resources Fund | | | 766 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Ivy Science and Technology Fund | | | — | | | | — | | | | — | | | | — | | | | 461 | | | | 1,669 | |
| (1) | Average value outstanding during the period. |
| (2) | Average notional amount outstanding during the period. |
| 5. | | WRITTEN OPTION ACTIVITY ($ amounts in thousands) |
Transactions in written options were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Outstanding
at 3-31-16 | | | Options
written | | | Options
closed | | | Options
exercised | | | Options
expired | | | Outstanding
at 9-30-16 | |
Ivy Asset Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | N/A | | | | 69,074 | | | | (11,709 | ) | | | (21,206 | ) | | | (19,623 | ) | | | 16,536 | |
Premium Received | | | N/A | | | $ | 23,091 | | | $ | (2,370 | ) | | $ | (14,062 | ) | | $ | (2,911 | ) | | $ | 3,748 | |
Ivy Balanced Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 7,515 | | | | 4,028 | | | | — | | | | — | | | | (11,543 | ) | | | N/A | |
Premium Received | | $ | 4,565 | | | $ | 2,624 | | | $ | — | | | $ | — | | | $ | (7,189 | ) | | | N/A | |
Ivy Science and Technology Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 29,318 | | | | 104,115 | | | | (86,347 | ) | | | (4,061 | ) | | | (37,726 | ) | | | 5,299 | |
Premium Received | | $ | 1,462 | | | $ | 19,638 | | | $ | (19,280 | ) | | $ | (410 | ) | | $ | (1,209 | ) | | $ | 201 | |
| 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. The Subsidiary and each 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, 2016 of the Subsidiary and each 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 | | | $ | 6,338,183 | | | $ | 484,096 | | | | 7.64 | % |
Ivy ASF III (SBP), LLC | | | 4-9-13 | | | | 4-23-13 | | | $ | 6,338,183 | | | | 137,473 | | | | 2.17 | |
Ivy ASF, LLC | | | 12-10-12 | | | | 12-18-12 | | | $ | 6,338,183 | | | | 27,276 | | | | 0.43 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 73 | |
| 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 | | | $3,000 to
$5,000M | | | $5,000 to
$8,000M | | | $8,000 to
$10,000M | | | $10,000 to
$13,000M | | | $13,000 to
$28,000M | | | $28,000 to
$53,000M | | | Over $53,000M | |
Ivy Asset Strategy Fund | | | 0.700 | % | | | 0.700 | % | | | 0.650 | % | | | 0.600 | % | | | 0.550 | % | | | 0.550 | % | | | 0.550 | % | | | 0.550 | % | | | 0.550 | % | | | 0.545 | % | | | 0.540 | % |
Ivy Balanced Fund | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.540 | | | | 0.540 | | | | 0.530 | | | | 0.530 | | | | 0.530 | | | | 0.530 | |
Ivy Energy Fund | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.750 | | | | 0.750 | | | | 0.740 | | | | 0.740 | | | | 0.740 | | | | 0.740 | |
Ivy Global Natural Resources Fund | | | 1.000 | | | | 0.850 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.700 | |
Ivy LaSalle Global Real Estate Fund | | | 0.950 | | | | 0.950 | | | | 0.920 | | | | 0.870 | | | | 0.840 | | | | 0.820 | | | | 0.820 | | | | 0.800 | | | | 0.800 | | | | 0.800 | | | | 0.800 | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | 0.950 | | | | 0.950 | | | | 0.920 | | | | 0.870 | | | | 0.840 | | | | 0.820 | | | | 0.820 | | | | 0.800 | | | | 0.800 | | | | 0.800 | | | | 0.800 | |
Ivy Real Estate Securities Fund | | | 0.900 | | | | 0.900 | | | | 0.870 | | | | 0.840 | | | | 0.800 | | | | 0.760 | | | | 0.760 | | | | 0.720 | | | | 0.720 | | | | 0.720 | | | | 0.720 | |
Ivy Science and Technology Fund | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.760 | | | | 0.755 | | | | 0.755 | | | | 0.750 | | | | 0.750 | | | | 0.750 | |
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, 2016.
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”), LaSalle serves as subadviser to Ivy LaSalle Global Real Estate Fund and Ivy LaSalle 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 applicable costs 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.
Each Fund also pays WISC a monthly administrative 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
| | | | | | |
| 74 | | SEMIANNUAL REPORT | | 2016 | | |
that fee if the number of total shareholder accounts within the Complex (Waddell & Reed Advisors Funds, InvestEd Portfolios and Ivy Funds) reaches certain levels. 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. 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. The Fund will reimburse WISC for such costs if the annual rate of the third-party per account charges for a Fund are less than or equal to $12.00 per account or an annual fee of 0.14 of 1% that is based on average daily net assets.
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 (up to $18.00 per account), or a fixed rate fee (up to an annual fee of 0.20 of 1% that is based on average daily net assets), 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 Distributors, Inc. (“IDI”) 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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, IDI 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 IDI. During the period ended September 30, 2016, IDI 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 | | $ | 265 | | | $ | — | * | | $ | 386 | | | $ | 200 | | | $ | — | | | $ | 317 | |
Ivy Balanced Fund | | | 407 | | | | 3 | | | | 62 | | | | 50 | | | | — | | | | 530 | |
Ivy Energy Fund | | | 105 | | | | — | * | | | 3 | | | | 10 | | | | — | | | | 113 | |
Ivy Global Natural Resources Fund | | | 143 | | | | 1 | | | | 5 | | | | 1 | | | | — | | | | 145 | |
Ivy LaSalle Global Real Estate Fund | | | 13 | | | | — | | | | — | * | | | — | * | | | N/A | | | | 13 | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | 59 | | | | — | | | | — | * | | | — | * | | | N/A | | | | 75 | |
Ivy Real Estate Securities Fund | | | 164 | | | | — | * | | | 4 | | | | 1 | | | | — | | | | 158 | |
Ivy Science and Technology Fund | | | 317 | | | | 6 | | | | 43 | | | | 60 | | | | — | | | | 359 | |
| * | Not shown due to rounding. |
| (1) | IDI reallowed/paid this portion of the sales charge to financial advisors and selling broker-dealers. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 75 | |
Expense Reimbursements and/or Waivers. Fund and class expense limitations and related waivers/reimbursements for the period ended September 30, 2016 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 | | 7-31-2017 | | 1.00% | | | $ | 56 | | | 12b-1 Fees and/or Shareholder
Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Balanced Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Energy Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Global Natural Resources Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.27% | | | $ | 24 | | | 12b-1 Fees and/or Shareholder
Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy LaSalle Global Real Estate Fund | | Class A | | Contractual | | 4-1-2013 | | 7-31-2017 | | 1.51% | | | $ | 67 | | | 12b-1 Fees and/or Shareholder
Servicing |
| | | Class Y | | Contractual | | 4-1-2013 | | 7-31-2017 | | Not to exceed Class A | | | $ | 2 | | | 12b-1 Fees and/or Shareholder Servicing |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | Class A | | Contractual | | 4-1-2013 | | 7-31-2017 | | 1.51% | | | $ | 40 | | | 12b-1 Fees and/or Shareholder Servicing Shareholder Servicing |
| | Class I | | Contractual | | 4-1-2016 | | 7-31-2017 | | 1.16% | | | $ | 4 | | |
| | | Class Y | | Contractual | | 4-1-2013 | | 7-31-2017 | | Not to exceed Class A | | | $ | 1 | | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Real Estate Securities Fund | | All Classes | | Contractual | | 12-3-2012 | | 7-31-2017 | | N/A | | | $ | 359 | (1) | | Investment Management Fee |
| | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.45% | | | $ | 5 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | – | | | N/A |
Ivy Science and Technology Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.30%(2) | | | $ | 25 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | – | | | N/A |
| (1) | The Fund’s investment management fee is being reduced by 0.10% of average daily net assets until July 31, 2017. |
| (2) | Reflects the lower contractual expense limit which went into effect August 1, 2016. |
Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2016 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, 2016.
| | | | | | |
| 76 | | SEMIANNUAL REPORT | | 2016 | | |
| 9. | | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2016 follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3-31-16 Share Balance | | | Purchases
at cost | | | Sales at
Cost | | | Realized
Gain/(Loss) | | | Distributions
Received | | | 9-30-16 Share Balance | | | 9-30-16 Value | |
Ivy Asset Strategy Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Media Group Holdings LLC, Series H(1) | | | 640 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | 640 | | | $ | 7,580 | |
Media Group Holdings LLC, Series I(1) | | | 381 | | | | — | | | | — | | | | — | | | | — | | | | 381 | | | | 61,505 | |
Media Group Holdings LLC, Series T(1) | | | 80 | | | | — | | | | — | | | | — | | | | — | | | | 80 | | | | 67,596 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | — | | | $ | — | | | | | | | $ | 136,681 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3-31-16 Share Balance | | | Purchases
at cost | | | Sales at
Cost | | | Realized Gain/
(Loss) | | | Distributions
Received | | | 9-30-16 Share Balance | | | 9-30-16 Value | |
Ivy Science and Technology Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACI Worldwide, Inc.(1) | | | 8,611 | | | $ | — | | | $ | 11,767 | | | $ | (2,115 | ) | | $ | — | | | | 8,116 | | | $ | 157,297 | |
Acxiom Corp. (1) | | | 6,256 | | | | — | | | | 48,921 | | | | (6,775 | ) | | | — | | | | 4,483 | | | | 119,465 | |
Arcadia Biosciences, Inc.(1) | | | 3,161 | | | | — | | | | 273 | | | | (205 | ) | | | — | | | | 3,127 | | | | 6,004 | |
Aspen Technology, Inc.(1) | | | 5,192 | | | | — | | | | 36,639 | | | | 15,785 | | | | — | | | | 4,019 | | | | 188,031 | |
Avinger, Inc.(1) | | | 1,363 | | | | 7,392 | | | | 1,076 | | | | (538 | ) | | | — | | | | 3,395 | | | | 16,193 | |
BioAmber, Inc(1). | | | 4,883 | | | | — | | | | 2,066 | | | | (1,453 | ) | | | — | | | | 4,711 | | | | 19,973 | |
BioAmber, Inc, Warrants. | | | 1,276 | | | | — | | | | — | | | | — | | | | — | | | | 1,276 | | | | 587 | |
Euronet Worldwide, Inc.(1)(2) | | | 3,271 | | | | — | | | | 43,988 | | | | 31,126 | | | | — | | | | N/A | | | | N/A | |
Evogene Ltd.(1) | | | 1,852 | | | | — | | | | — | | | | — | | | | — | | | | 1,852 | | | | 11,815 | |
Marrone Bio Innovations, Inc.(1) | | | 2,608 | | | | — | | | | — | | | | — | | | | — | | | | 2,608 | | | | 4,485 | |
Marrone Bio Innovations, Inc, Warrants. | | | 2,390 | | | | — | | | | — | | | | — | | | | — | | | | 2,390 | | | | — | |
Nanometrics, Inc.(1) | | | 1,438 | | | | — | | | | 3,487 | | | | (131 | ) | | | — | | | | 1,254 | | | | 28,016 | |
Photronics, Inc(1) | | | 4,528 | | | | — | | | | — | | | | — | | | | — | | | | 4,528 | | | | 46,687 | |
Rambus, Inc.(1) | | | 6,607 | | | | — | | | | 1,968 | | | | (20 | ) | | | — | | | | 6,452 | | | | 80,649 | |
Semtech Corp.(1) | | | 3,890 | | | | — | | | | 14,746 | | | | (1,311 | ) | | | — | | | | 3,356 | | | | 93,051 | |
Silver Spring Networks, Inc.(1) | | | 4,810 | | | | — | | | | — | | | | — | | | | — | | | | 4,810 | | | | 68,202 | |
WNS (Holdings) Ltd. ADR(1) | | | 6,346 | | | | — | | | | 11,716 | | | | 1,580 | | | | — | | | | 5,887 | | | | 176,302 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 35,943 | | | $ | — | | | | | | | $ | 1,016,757 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 3-31-16
Principal
Balance | | | | | | | | | | | | Interest
Received | | | 9-30-16
Principal
Balance | | | | |
Marrone Bio Innovations, Inc., 8.000%, 8-20-20 | | $ | 23,900 | | | $ | — | | | $ | — | | | $ | — | | | $ | 948 | | | $ | 23,900 | | | $ | 24,373 | |
| (1) | No dividends were paid during the preceding 12 months. |
| (2) | No longer affiliated as of September 30, 2016. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 77 | |
| 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, 2016, were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases | | | Sales | |
| | | U.S. Government | | | Other Issuers | | | U.S. Government | | | Other Issuers | |
Ivy Asset Strategy Fund | | $ | 51,391 | | | $ | 1,431,103 | | | $ | 1,008,267 | | | $ | 2,152,898 | |
Ivy Balanced Fund | | | 81,651 | | | | 534,081 | | | | 18,675 | | | | 521,132 | |
Ivy Energy Fund | | | — | | | | 109,419 | | | | — | | | | 94,949 | |
Ivy Global Natural Resources Fund | | | — | | | | 299,250 | | | | — | | | | 387,538 | |
Ivy LaSalle Global Real Estate Fund | | | — | | | | 8,009 | | | | — | | | | 7,270 | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | — | | | | 62,246 | | | | — | | | | 29,307 | |
Ivy Real Estate Securities Fund | | | — | | | | 208,117 | | | | — | | | | 220,852 | |
Ivy Science and Technology Fund | | | — | | | | 189,992 | | | | — | | | | 1,478,210 | |
| 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
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 3,989 | | | $ | 83,911 | | | | 22,948 | | | $ | 551,405 | | | | 6,765 | | | $ | 158,075 | | | | 21,298 | | | $ | 513,404 | |
Class B | | | 25 | | | | 502 | | | | 267 | | | | 5,877 | | | | 574 | | | | 13,266 | | | | 1,129 | | | | 26,117 | |
Class C | | | 1,065 | | | | 21,404 | | | | 13,159 | | | | 299,265 | | | | 5,003 | | | | 116,038 | | | | 15,378 | | | | 363,828 | |
Class E | | | 108 | | | | 2,297 | | | | 314 | | | | 7,601 | | | | — | | | | — | | | | — | | | | — | |
Class I | | | 21,740 | | | | 458,333 | | | | 38,032 | | | | 921,901 | | | | 22,777 | | | | 526,929 | | | | 7,443 | | | | 177,748 | |
Class R | | | 361 | | | | 7,527 | | | | 1,279 | | | | 30,102 | | | | 61 | | | | 1,425 | | | | 367 | | | | 9,060 | |
Class R6 | | | 522 | | | | 11,121 | | | | 3,915 | | | | 101,824 | | | | 211 | | | | 4,931 | | | | 162 | | | | 3,872 | |
Class Y | | | 668 | | | | 14,101 | | | | 5,868 | | | | 142,021 | | | | 786 | | | | 18,402 | | | | 2,019 | | | | 48,921 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 10,548 | | | | 235,013 | | | | 164 | | | | 3,856 | | | | 2,921 | | | | 69,248 | |
Class B | | | — | | | | — | | | | 968 | | | | 20,489 | | | | 2 | | | | 47 | | | | 130 | | | | 3,055 | |
Class C | | | — | | | | — | | | | 12,107 | | | | 257,989 | | | | 26 | | | | 610 | | | | 1,444 | | | | 34,019 | |
Class E | | | — | | | | — | | | | 162 | | | | 3,631 | | | | — | * | | | 1 | | | | — | * | | | 11 | |
Class I | | | — | | | | — | | | | 10,105 | | | | 227,453 | | | | 101 | | | | 2,397 | | | | 663 | | | | 15,716 | |
Class R | | | — | | | | — | | | | 283 | | | | 6,259 | | | | 1 | | | | 27 | | | | 26 | | | | 611 | |
Class R6 | | | — | | | | — | | | | 214 | | | | 4,824 | | | | 2 | | | | 52 | | | | 10 | | | | 230 | |
Class Y | | | — | | | | — | | | | 1,687 | | | | 37,676 | | | | 16 | | | | 384 | | | | 286 | | | | 6,787 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (67,041 | ) | | | (1,407,762 | ) | | | (126,737 | ) | | | (2,961,582 | ) | | | (28,485 | ) | | | (660,827 | ) | | | (14,265 | ) | | | (342,248 | ) |
Class B | | | (4,881 | ) | | | (97,294 | ) | | | (9,780 | ) | | | (213,453 | ) | | | (491 | ) | | | (11,455 | ) | | | (662 | ) | | | (15,714 | ) |
Class C | | | (71,791 | ) | | | (1,441,262 | ) | | | (148,185 | ) | | | (3,251,127 | ) | | | (7,250 | ) | | | (169,381 | ) | | | (6,624 | ) | | | (157,888 | ) |
Class E | | | (518 | ) | | | (10,987 | ) | | | (729 | ) | | | (17,115 | ) | | | — | | | | — | | | | — | | | | — | |
Class I | | | (68,698 | ) | | | (1,463,968 | ) | | | (283,465 | ) | | | (6,589,289 | ) | | | (7,327 | ) | | | (172,739 | ) | | | (4,176 | ) | | | (100,151 | ) |
Class R | | | (1,658 | ) | | | (34,606 | ) | | | (2,657 | ) | | | (61,416 | ) | | | (101 | ) | | | (2,400 | ) | | | (161 | ) | | | (3,852 | ) |
Class R6 | | | (237 | ) | | | (5,096 | ) | | | (4,032 | ) | | | (88,444 | ) | | | (52 | ) | | | (1,232 | ) | | | (96 | ) | | | (2,431 | ) |
Class Y | | | (9,117 | ) | | | (192,571 | ) | | | (26,758 | ) | | | (622,635 | ) | | | (1,992 | ) | | | (46,970 | ) | | | (4,095 | ) | | | (98,653 | ) |
Net increase (decrease) | | | (195,463 | ) | | $ | (4,054,350 | ) | | | (480,487 | ) | | $ | (10,951,731 | ) | | | (9,209 | ) | | $ | (218,564 | ) | | | 23,197 | | | $ | 551,690 | |
| * | Not shown due to rounding. |
| | | | | | |
| 78 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Energy Fund | | | Ivy Global Natural Resources Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | |
Class A | | | 3,145 | | | $ | 37,677 | | | | 10,111 | | | $ | 120,043 | | | | 1,338 | | | $ | 17,962 | | | | 5,731 | | | $ | 76,137 | |
Class B | | | 45 | | | | 504 | | | | 111 | | | | 1,212 | | | | 15 | | | | 164 | | | | 23 | | | | 268 | |
Class C | | | 787 | | | | 8,898 | | | | 3,899 | | | | 44,748 | | | | 223 | | | | 2,536 | | | | 843 | | | | 9,631 | |
Class E | | | — | | | | — | | | | — | | | | — | | | | 27 | | | | 375 | | | | 65 | | | | 902 | |
Class I | | | 6,096 | | | | 76,287 | | | | 6,815 | | | | 82,314 | | | | 7,135 | | | | 99,514 | | | | 2,891 | | | | 42,195 | |
Class R | | | 407 | | | | 4,884 | | | | 902 | | | | 10,514 | | | | 268 | | | | 3,591 | | | | 574 | | | | 7,745 | |
Class R6 | | | 435 | | | | 5,464 | | | | 359 | | | | 4,569 | | | | 65 | | | | 923 | | | | 727 | | | | 9,654 | |
Class Y | | | 1,194 | | | | 14,279 | | | | 3,225 | | | | 38,975 | | | | 223 | | | | 3,093 | | | | 584 | | | | 8,054 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class R | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class Y | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Shares redeemed: | |
Class A | | | (6,600 | ) | | | (79,558 | ) | | | (7,435 | ) | | | (86,675 | ) | | | (10,024 | ) | | | (134,486 | ) | | | (12,644 | ) | | | (175,626 | ) |
Class B | | | (60 | ) | | | (669 | ) | | | (139 | ) | | | (1,500 | ) | | | (180 | ) | | | (2,069 | ) | | | (634 | ) | | | (7,813 | ) |
Class C | | | (1,008 | ) | | | (11,430 | ) | | | (2,226 | ) | | | (23,954 | ) | | | (1,300 | ) | | | (14,805 | ) | | | (4,062 | ) | | | (47,940 | ) |
Class E | | | — | | | | — | | | | — | | | | — | | | | (42 | ) | | | (585 | ) | | | (83 | ) | | | (1,162 | ) |
Class I | | | (2,270 | ) | | | (28,625 | ) | | | (4,821 | ) | | | (57,789 | ) | | | (2,288 | ) | | | (32,358 | ) | | | (5,427 | ) | | | (76,283 | ) |
Class R | | | (264 | ) | | | (3,231 | ) | | | (219 | ) | | | (2,586 | ) | | | (359 | ) | | | (4,798 | ) | | | (679 | ) | | | (9,485 | ) |
Class R6 | | | (171 | ) | | | (2,169 | ) | | | (93 | ) | | | (1,145 | ) | | | (213 | ) | | | (3,045 | ) | | | (143 | ) | | | (1,959 | ) |
Class Y | | | (1,405 | ) | | | (17,330 | ) | | | (2,019 | ) | | | (23,172 | ) | | | (381 | ) | | | (5,311 | ) | | | (1,641 | ) | | | (23,133 | ) |
Net increase (decrease) | | | 331 | | | $ | 4,981 | | | | 8,470 | | | $ | 105,554 | | | | (5,493 | ) | | $ | (69,299 | ) | | | (13,875 | ) | | $ | (188,815 | ) |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 79 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy LaSalle Global Real Estate Fund | | | Ivy LaSalle Global Risk-Managed Real Estate
Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | |
Class A | | | 273 | | | $ | 2,901 | | | | 1,129 | | | $ | 11,908 | | | | 3,481 | | | $ | 39,730 | | | | 3,245 | | | $ | 34,844 | |
Class B | | | 2 | | | | 23 | | | | 4 | | | | 38 | | | | 25 | | | | 282 | | | | 22 | | | | 245 | |
Class C | | | 23 | | | | 250 | | | | 21 | | | | 218 | | | | 419 | | | | 4,833 | | | | 71 | | | | 754 | |
Class I | | | 1,849 | | | | 18,915 | | | | 32 | | | | 342 | | | | 5,077 | | | | 56,764 | | | | 86 | | | | 918 | |
Class R | | | 1 | | | | 8 | | | | 1 | | | | 15 | | | | 17 | | | | 202 | | | | 1 | | | | 10 | |
Class Y | | | 4 | | | | 51 | | | | 29 | | | | 304 | | | | 478 | | | | 5,537 | | | | 79 | | | | 866 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 40 | | | | 412 | | | | 93 | | | | 934 | | | | 143 | | | | 1,585 | | | | 83 | | | | 868 | |
Class B | | | — | * | | | 1 | | | | — | * | | | 1 | | | | 1 | | | | 9 | | | | — | * | | | 1 | |
Class C | | | 1 | | | | 6 | | | | 1 | | | | 8 | | | | 5 | | | | 59 | | | | 1 | | | | 16 | |
Class I | | | 2 | | | | 18 | | | | 2 | | | | 21 | | | | 7 | | | | 83 | | | | 2 | | | | 21 | |
Class R | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class Y | | | 1 | | | | 1 | | | | 1 | | | | 8 | | | | 1 | | | | 10 | | | | 2 | | | | 17 | |
Shares redeemed: | |
Class A | | | (1,853 | ) | | | (18,913 | ) | | | (1,059 | ) | | | (10,931 | ) | | | (4,922 | ) | | | (54,918 | ) | | | (1,412 | ) | | | (14,960 | ) |
Class B | | | (1 | ) | | | (11 | ) | | | (2 | ) | | | (18 | ) | | | (3 | ) | | | (30 | ) | | | (71 | ) | | | (738 | ) |
Class C | | | (13 | ) | | | (136 | ) | | | (20 | ) | | | (204 | ) | | | (26 | ) | | | (300 | ) | | | (25 | ) | | | (268 | ) |
Class I | | | (187 | ) | | | (2,013 | ) | | | (25 | ) | | | (262 | ) | | | (1,194 | ) | | | (13,902 | ) | | | (86 | ) | | | (892 | ) |
Class R | | | — | * | | | (1 | ) | | | — | * | | | (3 | ) | | | — | * | | | — | * | | | (1 | ) | | | (6 | ) |
Class Y | | | (17 | ) | | | (178 | ) | | | (40 | ) | | | (424 | ) | | | (414 | ) | | | (4,795 | ) | | | (132 | ) | | | (1,445 | ) |
Net increase | | | 125 | | | $ | 1,334 | | | | 167 | | | $ | 1,955 | | | | 3,095 | | | $ | 35,149 | | | | 1,865 | | | $ | 20,251 | |
| * | Not shown due to rounding. |
| | | | | | |
| 80 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Real Estate Securities Fund | | | Ivy Science and Technology Fund | |
| | | Six months ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 1,441 | | | $ | 42,122 | | | | 3,890 | | | $ | 106,596 | | | | 2,110 | | | $ | 99,536 | | | | 11,585 | | | $ | 601,356 | |
Class B | | | 19 | | | | 557 | | | | 7 | | | | 189 | | | | 39 | | | | 1,584 | | | | 183 | | | | 7,964 | |
Class C | | | 113 | | | | 3,300 | | | | 132 | | | | 3,567 | | | | 591 | | | | 24,516 | | | | 4,753 | | | | 221,674 | |
Class E | | | 26 | | | | 781 | | | | 21 | | | | 561 | | | | 38 | | | | 1,834 | | | | 105 | | | | 5,343 | |
Class I | | | 7,779 | | | | 226,781 | | | | 328 | | | | 9,121 | | | | 7,081 | | | | 352,910 | | | | 11,473 | | | | 652,285 | |
Class R | | | 22 | | | | 665 | | | | 40 | | | | 1,080 | | | | 240 | | | | 11,154 | | | | 1,017 | | | | 51,832 | |
Class R6 | | | 15 | | | | 449 | | | | 22 | | | | 603 | | | | 517 | | | | 26,547 | | | | 1,177 | | | | 63,617 | |
Class Y | | | 415 | | | | 12,364 | | | | 532 | | | | 14,790 | | | | 1,150 | | | | 57,339 | | | | 4,242 | | | | 230,423 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 84 | | | | 2,441 | | | | 1,064 | | | | 28,062 | | | | — | | | | — | | | | 939 | | | | 47,673 | |
Class B | | | — | * | | | 10 | | | | 9 | | | | 220 | | | | — | | | | — | | | | 35 | | | | 1,501 | |
Class C | | | 2 | | | | 54 | | | | 32 | | | | 839 | | | | — | | | | — | | | | 486 | | | | 21,684 | |
Class E | | | 1 | | | | 21 | | | | 7 | | | | 187 | | | | — | | | | — | | | | 11 | | | | 548 | |
Class I | | | 21 | | | | 597 | | | | 26 | | | | 678 | | | | — | | | | — | | | | 599 | | | | 33,085 | |
Class R | | | — | * | | | 6 | | | | 3 | | | | 82 | | | | — | | | | — | | | | 55 | | | | 2,728 | |
Class R6 | | | 1 | | | | 25 | | | | 7 | | | | 193 | | | | — | | | | — | | | | 18 | | | | 990 | |
Class Y | | | 34 | | | | 979 | | | | 333 | | | | 8,788 | | | | — | | | | — | | | | 358 | | | | 19,079 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (8,959 | ) | | | (258,950 | ) | | | (5,701 | ) | | | (155,961 | ) | | | (16,534 | ) | | | (775,736 | ) | | | (13,172 | ) | | | (661,718 | ) |
Class B | | | (34 | ) | | | (977 | ) | | | (72 | ) | | | (1,880 | ) | | | (224 | ) | | | (9,002 | ) | | | (331 | ) | | | (14,108 | ) |
Class C | | | (100 | ) | | | (2,898 | ) | | | (237 | ) | | | (6,374 | ) | | | (4,141 | ) | | | (172,880 | ) | | | (4,902 | ) | | | (214,346 | ) |
Class E | | | (11 | ) | | | (330 | ) | | | (23 | ) | | | (619 | ) | | | (48 | ) | | | (2,270 | ) | | | (55 | ) | | | (2,681 | ) |
Class I | | | (811 | ) | | | (24,512 | ) | | | (339 | ) | | | (9,232 | ) | | | (11,703 | ) | | | (610,204 | ) | | | (15,913 | ) | | | (844,167 | ) |
Class R | | | (8 | ) | | | (247 | ) | | | (48 | ) | | | (1,291 | ) | | | (573 | ) | | | (26,781 | ) | | | (729 | ) | | | (36,266 | ) |
Class R6 | | | (15 | ) | | | (451 | ) | | | (43 | ) | | | (1,190 | ) | | | (230 | ) | | | (12,021 | ) | | | (120 | ) | | | (6,317 | ) |
Class Y | | | (376 | ) | | | (11,030 | ) | | | (1,662 | ) | | | (45,474 | ) | | | (3,378 | ) | | | (169,118 | ) | | | (6,672 | ) | | | (351,670 | ) |
Net decrease | | | (341 | ) | | $ | (8,243 | ) | | | (1,672 | ) | | $ | (46,465 | ) | | | (25,065 | ) | | $ | (1,202,592 | ) | | | (4,858 | ) | | $ | (169,491 | ) |
| * | 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, 2016 and the related unrealized appreciation (depreciation) were as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Appreciation | | | Gross
Depreciation | | | Net Unrealized
Appreciation
(Depreciation) | |
Ivy Asset Strategy Fund | | $ | 6,701,458 | | | $ | 546,415 | | | $ | 930,223 | | | $ | (383,808 | ) |
Ivy Balanced Fund | | | 2,494,608 | | | | 290,421 | | | | 68,778 | | | | 221,643 | |
Ivy Energy Fund | | | 455,085 | | | | 91,500 | | | | 13,338 | | | | 78,162 | |
Ivy Global Natural Resources Fund | | | 710,177 | | | | 109,224 | | | | 80,159 | | | | 29,065 | |
Ivy LaSalle Global Real Estate Fund | | | 33,655 | | | | 3,256 | | | | 1,465 | | | | 1,791 | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | 115,836 | | | | 8,316 | | | | 1,429 | | | | 6,887 | |
Ivy Real Estate Securities Fund | | | 513,658 | | | | 204,873 | | | | 2,875 | | | | 201,998 | |
Ivy Science and Technology Fund | | | 2,844,043 | | | | 1,617,139 | | | | 275,558 | | | | 1,341,581 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 81 | |
For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2016 and the post-October and late-year ordinary activity were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gains | | | Tax Return
of Capital | | | Post-
October
Capital
Losses
Deferred | | | Late-Year
Ordinary
Losses
Deferred | |
Ivy Asset Strategy Fund | | $ | — | | | $ | — | | | $ | — | | | $ | 281,518 | | | $ | 12,091 | |
Ivy Balanced Fund | | | — | | | | 372 | | | | — | | | | 33,162 | | | | 696 | |
Ivy Energy Fund | | | — | | | | — | | | | — | | | | — | | | | 1,202 | |
Ivy Global Natural Resources Fund | | | 1,433 | | | | — | | | | — | | | | — | | | | — | |
Ivy LaSalle Global Real Estate Fund | | | 492 | | | | — | | | | — | | | | 512 | | | | — | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | 2,328 | | | | 284 | | | | — | | | | — | | | | — | |
Ivy Real Estate Securities Fund | | | 2,633 | | | | 12,141 | | | | — | | | | — | | | | — | |
Ivy Science and Technology Fund | | | — | | | | — | | | | — | | | | 128,973 | | | | 8,511 | |
Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses and certain specified ordinary items incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal certain ordinary losses that generated between each January 1 and the end of its fiscal year.
The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2016 and 2015 were as follows:
| | | | | | | | | | | | | | | | |
| | | March 31, 2016 | | | March 31, 2015 | |
| Fund | | Distributed
Ordinary
Income(1) | | | Distributed
Long-Term
Capital Gains | | | Distributed
Ordinary
Income(1) | | | Distributed
Long-Term
Capital Gains | |
Ivy Asset Strategy Fund | | $ | 37,222 | | | $ | 959,717 | | | $ | 112,911 | | | $ | 4,634,585 | |
Ivy Balanced Fund | | | 48,087 | | | | 100,678 | | | | 17,735 | | | | 57,005 | |
Ivy Energy Fund | | | — | | | | — | | | | — | | | | — | |
Ivy Global Natural Resources Fund | | | — | | | | — | | | | — | | | | — | |
Ivy LaSalle Global Real Estate Fund | | | 711 | | | | 368 | | | | 642 | | | | 132 | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | 912 | | | | 528 | | | | 1,265 | | | | — | |
Ivy Real Estate Securities Fund | | | 10,986 | | | | 28,841 | | | | 13,669 | | | | 12,139 | |
Ivy Science and Technology Fund | | | — | | | | 144,996 | | | | — | | | | 124,817 | |
Dividends from net investment income and short-term capital gains are treated as ordinary income dividends for federal income tax purposes.
Accumulated capital losses represent net capital loss carryovers as of March 31, 2016 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, 2016:
| | | | | | | | | | | | | | | | |
| | | Pre-Enactment | | | Post-Enactment | |
| Fund | | 2017 | | | 2018 | | | Short-Term
Capital
Loss
Carryover | | | Long-Term
Capital
Loss
Carryover | |
Ivy Asset Strategy Fund | | $ | — | | | $ | — | | | $ | 4,076 | | | $ | — | |
Ivy Balanced Fund | | | — | | | | — | | | | — | | | | — | |
Ivy Energy Fund | | | — | | | | 6,022 | | | | 36,821 | | | | 27,087 | |
Ivy Global Natural Resources Fund | | | — | | | | 1,529,206 | | | | 277,990 | | | | 373,570 | |
Ivy LaSalle Global Real Estate Fund | | | — | | | | — | | | | — | | | | — | |
Ivy LaSalle Global Risk-Managed Real Estate Fund | | | — | | | | — | | | | — | | | | — | |
Ivy Real Estate Securities Fund | | | — | | | | — | | | | — | | | | — | |
Ivy Science and Technology Fund | | | — | | | | — | | | | — | | | | — | |
| | | | | | |
| 82 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| 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 8th and 9th, 2016, 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 (the “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); |
| • | | 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 |
| • | | Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund) (each such subadviser referred to herein as a “Subadviser”). |
The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, 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 Broadridge, Inc. (“Broadridge”) 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 2016. 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 at the August 9, 2016 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 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 took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also 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
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 83 | |
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 Management 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 Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year.
Performance of the Funds and Costs of Services Provided
The Board considered 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 the percentile ranking of each Fund over various periods of time. 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 or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.
Independent Fee Consultant Review
During July of 2016, and as part of their regularly scheduled meetings, the Independent Trustees reviewed a substantial amount of information in connection with considering the continuation of the Management Agreement currently in effect between IICO and the Funds. Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:
| 1. | The nature, extent and quality of IICO’s services to the Funds, including performance; |
| 2. | Management fees (including any components thereof) charged by other mutual fund companies for like services; |
| 3. | Management fees (including any components thereof) charged to institutional and other clients of IICO for like services; |
| 4. | Costs to IICO and its affiliates of supplying services pursuant to the management fee agreement, and profit margins of IICO and its affiliates from supplying such services; and |
| 5. | Possible economies of scale as a Fund grows larger. |
The following summarizes the findings of the independent fee consultant retained by the Independent Trustees.1
Summary Findings
The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For
| 1 | The independent fee consultant’s evaluation was based on information provided by IICO, Broadridge, other information providers and other independent analyses. The term “management fees” refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by a Fund to IICO, as a percentage of average net assets. The term “total expenses” refers to the total annual expenses, net of any fee waivers, paid by a Fund, as a percentage of average net assets. Where these terms are used in reference to groups of Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2016. Broadridge report data reflects Class A shares. |
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| 84 | | SEMIANNUAL REPORT | | 2016 | | |
the 36 months ended March 31, 2016, approximately 10% of the Funds were in the top quartile of performance and 40% of the Funds were in the top two quartiles of performance, although short-term performance of the Funds had declined after an extended period of superior long-term performance, which bears monitoring. The independent fee consultant noted that the Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure, and that these factors could allow IICO to overcome recent short-term performance challenges.
The report further indicated that total expenses of the Funds, on average, were 4% below the average total expenses of their respective Broadridge Expense Group peers and 15% below the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 6% below the average management fees of their respective Broadridge Expense Group peers and 10% below the average management fees for their Broadridge Expense Universes. The independent fee consultant noted that the Funds, generally small account size relative to the Expense Groups introduces certain biases in the Broadridge analyses that work against the Funds in Broadridge expense comparisons and, as a result, the Broadridge findings may be considered conservative. The independent fee consultant found that within the larger Broadridge averages, the management fees and total expenses of individual Funds and share classes are reasonable relative to their performance.
The report also stated that the management fees IICO charges to the Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, the average spread between management fees IICO charged to the Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.
The report stated that while it was difficult to confirm overall economies of scale, it was clear that the Funds’ shareholders generally are benefitting from lower expenses as the Funds’ assets grow.
The report also noted that IICO’s overall profitability from managing the Funds and its other operations is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the Funds and their shareholders. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, both of which can benefit the Funds’ investors.
Finally, the report also examined the fees that IICO retains on Funds that are subadvised by unaffiliated subadvisers, and indicated that those fees are reasonable relative to the industry. The report also stated that the subadvisory fees that IICO earns for serving as a subadviser to an unaffiliated fund when compared to fees of similar Funds likewise are reasonable relative to the industry.
Conclusions
The independent fee consultant’s report concluded that it believes that the services provided by IICO and its affiliates and expenses incurred by the Funds in the previous 12 months are reasonable and provide adequate justification for renewal of the Funds’ existing Management Agreement and Investment Subadvisory Agreements.
Approvals for Ivy California Municipal High Income Fund
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 9, 2016, 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 amendment to the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, on behalf of Ivy California Municipal High Income Fund (the “Fund”), to include the Fund under the Management Agreement. The Fund is a newly created series of the Trust.
The Independent Trustees were assisted in their consideration of the Management Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel had provided the Board with a memorandum prior to the meeting that discussed the various factors that the Board should consider as part of its review of the Management Agreement, including, among other things, the nature and quality of the services proposed to be provided to the Fund by IICO, IICO’s potential profitability (including any fall-out benefits) from its proposed relationship with the Fund, projected economies of scale, the role played by the Independent Trustees and information on comparative fees and expenses. The material factors and conclusions that formed the basis for the Board’s determination to approve the Management Agreement are discussed below.
In considering the Management Agreement, the Board noted that although the Fund had not yet commenced operations, the Fund appeared to be designed to be able to achieve acceptable performance. The Board also considered the proposed expenses of the Fund, the cost of the services proposed to be provided by IICO, including as compared to the other Funds in
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 85 | |
the Trust family and comparable funds. The Board also noted the proposed expense cap agreement, and concluded that the proposed expenses of the Fund were acceptable. The Board did not discuss possible economies of scale because the Fund had not yet commenced operations. The Board noted that it would monitor profitability once the Fund began operations. The Board considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objectives and strategies of the Fund, the Board’s experience with IICO, and other materials previously provided to the Board on the Fund. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services proposed to be provided to the Fund by IICO based upon its current experiences with IICO, such as IICO’s ability to monitor adherence to the Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees on Fund matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable laws and regulations. The Board also took into account IICO’s compliance environment. The Board concluded that the nature and extent of services to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other Funds of the Trust. The Board also discussed whether IICO would derive any other direct or indirect benefits from serving as investment adviser to the Fund. The Board considered the benefits that would accrue to IICO from its relationship with the Fund, including the fact that a variety of services for the Fund were proposed to be provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After consideration of these and other factors, the Board concluded that neither IICO nor any of its affiliates would receive any additional direct benefits that would preclude the Board from approving the Management Agreement for the Fund.
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| 86 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PROXY VOTING INFORMATION | | IVY FUNDS |
Proxy Voting Guidelines
A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Proxy Voting Records
Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on Form N-PX through the Ivy Investments’ website at www.ivyinvestments.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.ivyinvestments.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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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 Mid Cap Income Opportunities 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 Growth Fund
Ivy Global Income Allocation Fund
Ivy International Core Equity Fund
Ivy Managed International Opportunities Fund
Speciality Funds
Ivy Apollo Multi-Asset Income Fund
Ivy Asset Strategy Fund
Ivy Balanced Fund
Ivy Energy Fund
Ivy Global Natural Resources Fund
Ivy LaSalle Global Real Estate Fund
Ivy LaSalle Global Risk-Managed Real Estate Fund
Ivy Real Estate Securities Fund
Ivy Science and Technology Fund
Fixed Income Funds
Ivy Apollo Strategic Income Fund
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
Ivy Targeted Return Bond Fund
1.800.777.6472
Visit us online at www.ivyinvestments.com
The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Distributors, Inc.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which may be obtained at www.ivyinvestments.com or from a financial advisor. Read it carefully before investing.
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 91 | |
SEMIANN-IVYSPEC (9-16)
| | |
 | | Semiannual Report SEPTEMBER 30, 2016 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ticker | |
| | | Class A | | | Class B | | | Class C | | | Class E | | | Class I | | | Class R | | | Class R6 | | | Class Y | |
IVY FUNDS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Ivy Bond Fund | | | IBOAX | | | | IBOBX | | | | IBOCX | | | | IVBEX | | | | IVBIX | | | | IYBDX | | | | IBNDX | | | | IBOYX | |
| | | | | | | | |
| Ivy Core Equity Fund | | | WCEAX | | | | WCEBX | | | | WTRCX | | | | ICFEX | | | | ICIEX | | | | IYCEX | | | | ICEQX | | | | WCEYX | |
| | | | | | | | |
| Ivy Cundill Global Value Fund | | | ICDAX | | | | ICDBX | | | | ICDCX | | | | ICVEX | | | | ICVIX | | | | IYCUX | | | | ICNGX | | | | ICDYX | |
| | | | | | | | |
| Ivy Dividend Opportunities Fund | | | IVDAX | | | | IVDBX | | | | IVDCX | | | | IDIEX | | | | IVDIX | | | | IYDVX | | | | IDOTX | | | | IVDYX | |
| | | | | | | | |
| Ivy Emerging Markets Equity Fund | | | IPOAX | | | | IPOBX | | | | IPOCX | | | | IPOEX | | | | IPOIX | | | | IYPCX | | | | IMEGX | | | | IPOYX | |
| | | | | | | | |
| Ivy European Opportunities Fund | | | IEOAX | | | | IEOBX | | | | IEOCX | | | | IVEOX | | | | IEOIX | | | | IYEUX | | | | IEURX | | | | IEOYX | |
| | | | | | | | |
| Ivy Global Bond Fund | | | IVSAX | | | | IVSBX | | | | IVSCX | | | | | | | | IVSIX | | | | IYGOX | | | | IVBDX | | | | IVSYX | |
| | | | | | | | |
| Ivy Global Equity Income Fund | | | IBIAX | | | | IBIBX | | | | IBICX | | | | | | | | IBIIX | | | | IYGEX | | | | IICNX | | | | IBIYX | |
| | | | | | | | |
| Ivy Global Growth Fund | | | IVINX | | | | IVIBX | | | | IVNCX | | | | IIGEX | | | | IGIIX | | | | IYIGX | | | | ITGRX | | | | IVIYX | |
| | | | | | | | |
| Ivy Global Income Allocation Fund | | | IVBAX | | | | IVBBX | | | | IVBCX | | | | IIBEX | | | | IIBIX | | | | IYGBX | | | | ILIAX | | | | IVBYX | |
| | | | | | | | |
| Ivy High Income Fund | | | WHIAX | | | | WHIBX | | | | WRHIX | | | | IVHEX | | | | IVHIX | | | | IYHIX | | | | IHIFX | | | | WHIYX | |
| | | | | | | | |
| Ivy International Core Equity Fund | | | IVIAX | | | | IIFBX | | | | IVIFX | | | | IICEX | | | | ICEIX | | | | IYITX | | | | IINCX | | | | IVVYX | |
| | | | | | | | |
| Ivy Large Cap Growth Fund | | | WLGAX | | | | WLGBX | | | | WLGCX | | | | ILCEX | | | | IYGIX | | | | WLGRX | | | | ILGRX | | | | WLGYX | |
| | | | | | | | |
| Ivy Limited-Term Bond Fund | | | WLTAX | | | | WLTBX | | | | WLBCX | | | | IVLEX | | | | ILTIX | | | | IYLTX | | | | ILMDX | | | | WLTYX | |
| | | | | | | | |
| Ivy Managed International Opportunities Fund | | | IVTAX | | | | IVTBX | | | | IVTCX | | | | IVTEX | | | | IVTIX | | | | IYMGX | | | | | | | | IVTYX | |
| | | | | | | | |
| Ivy Micro Cap Growth Fund | | | IGWAX | | | | IGWBX | | | | IGWCX | | | | | | | | IGWIX | | | | IYMRX | | | | IMIGX | | | | IGWYX | |
| | | | | | | | |
| Ivy Mid Cap Growth Fund | | | WMGAX | | | | WMGBX | | | | WMGCX | | | | IMCEX | | | | IYMIX | | | | WMGRX | | | | IGRFX | | | | WMGYX | |
| | | | | | | | |
| Ivy Mid Cap Income Opportunities Fund | | | IVOAX | | | | | | | | IVOCX | | | | IVOEX | | | | IVOIX | | | | IVORX | | | | IVOSX | | | | IVOYX | |
| | | | | | | | |
| Ivy Money Market Fund | | | WRAXX | | | | WRBXX | | | | WRCXX | | | | IVEXX | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| Ivy Municipal Bond Fund | | | WMBAX | | | | WMBBX | | | | WMBCX | | | | | | | | IMBIX | | | | | | | | | | | | WMBYX | |
| | | | | | | | |
| Ivy Municipal High Income Fund | | | IYIAX | | | | IYIBX | | | | IYICX | | | | | | | | WYMHX | | | | | | | | | | | | IYIYX | |
| | | | | | | | |
| Ivy Small Cap Growth Fund | | | WSGAX | | | | WSGBX | | | | WRGCX | | | | ISGEX | | | | IYSIX | | | | WSGRX | | | | IRGFX | | | | WSCYX | |
| | | | | | | | |
| Ivy Small Cap Value Fund | | | IYSAX | | | | IYSBX | | | | IYSCX | | | | IYVIX | | | | IVVIX | | | | IYSMX | | | | ISPVX | | | | IYSYX | |
| | | | | | | | |
| Ivy Tax-Managed Equity Fund | | | IYEAX | | | | IYEBX | | | | IYECX | | | | | | | | WYTMX | | | | | | | | | | | | IYEYX | |
| | | | | | | | |
| Ivy Value Fund | | | IYVAX | | | | IYVBX | | | | IYVCX | | | | IVVEX | | | | IYAIX | | | | IYVLX | | | | IVALX | | | | IYVYX | |
IVY INVESTMENTSSM refers to the financial services offered by Ivy Distributors, Inc., a FINRA member broker dealer and the distributor of IVY FUNDS® mutual funds, and those financial services offered by its affiliates.
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
| | |
| PRESIDENT’S LETTER | | IVY FUNDS |
| | |
| | SEPTEMBER 30, 2016 (UNAUDITED) |
| Philip J. Sanders, CFA | | |
Dear Shareholder,
Over the six months since our last report to you, the financial markets held fairly steady, despite intermittent bouts of volatility. The S&P 500 Index rebounded from turbulence created by the United Kingdom’s vote in June to leave the European Union and, in July, reached a record high, though it has dropped slightly since then.
Concerns about global economic growth, the direction of interest rates, fluctuation in oil prices and the outcome of the U.S. presidential election are all contributors to concerns about the direction of markets as we look toward the end of 2016.
While financial markets dislike the uncertainty brought on by the above issues, domestic equities have performed fairly well, and we expect moderate positive returns for 2016.
Across the six-month fiscal period, the gradual U.S. economic expansion has continued. The U.S. remains a relative bright spot in the world, supported primarily by the U.S. consumer, who is benefitting from lower energy prices, lower inflation in general and an improved labor market. Demand for cars, homes and furnishings has been healthy.
When interest rates in the U.S. will rise, and by how much, remains an area of focus, with many anticipating the Federal Reserve will raise rates in December of this year. Over the last 12 months, global economic concerns have altered the Fed’s timetable on further increases. We believe that job growth and inflation will be the most important determinants in the direction of long-term central bank policy.
Overseas, the European Central Bank and Bank of Japan are actively engaged in aggressive easing. As yet, these steps are not leading to any notable strengthening of economic activity.
China, in the face of economic softening, has turned toward more aggressive stimulus. We believe economic growth in China is likely to hold steady, which should support broader global growth.
While challenges remain, we do see potential catalysts for growth in several areas and industries and our team continues to seek investment opportunities around the globe.
Economic Snapshot
| | | | | | | | |
| | | 9/30/16 | | | 3/31/16 | |
S&P 500 Index | | | 2,168.27 | | | | 2,059.74 | |
MSCI EAFE Index | | | 1,701.69 | | | | 1,652.04 | |
10-Year Treasury Yield | | | 1.60% | | | | 1.78% | |
U.S. unemployment rate | | | 5.0% | | | | 5.0% | |
30-year fixed mortgage rate | | | 3.42% | | | | 3.71% | |
Oil price per barrel | | $ | 48.24 | | | $ | 38.34 | |
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.
Respectfully,
Philip J. Sanders, CFA
President
The opinions expressed in this letter are those of the President of Ivy Funds and are current only through the end of the period of the report, as stated on the cover. The President’s views are subject to change at any time, based on market and other conditions, and no forecasts can be guaranteed.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, exchange fees and account 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, 2016.
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. Fees apply to Individual Retirement Accounts (IRAs), IRA Rollovers, Roth IRAs, Conversion Roth IRAs, Simplified Employee Pension (SEP), Savings Incentive Match Plan for Employees (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. 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 full week of September of each year, the account will be assessed an account fee of $20. 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), exchange fees or account 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) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Bond Fund | |
Class A | | $ | 1,000 | | | $ | 1,042.80 | | | $ | 5.31 | | | $ | 1,000 | | | $ | 1,019.85 | | | $ | 5.25 | | | | 1.04% | |
Class B** | | $ | 1,000 | | | $ | 1,037.60 | | | $ | 10.49 | | | $ | 1,000 | | | $ | 1,014.80 | | | $ | 10.38 | | | | 2.05% | |
Class C | | $ | 1,000 | | | $ | 1,039.10 | | | $ | 8.97 | | | $ | 1,000 | | | $ | 1,016.22 | | | $ | 8.87 | | | | 1.77% | |
Class E | | $ | 1,000 | | | $ | 1,042.80 | | | $ | 5.31 | | | $ | 1,000 | | | $ | 1,019.82 | | | $ | 5.25 | | | | 1.05% | |
Class I | | $ | 1,000 | | | $ | 1,044.40 | | | $ | 3.88 | | | $ | 1,000 | | | $ | 1,021.30 | | | $ | 3.84 | | | | 0.75% | |
Class R | | $ | 1,000 | | | $ | 1,041.40 | | | $ | 6.84 | | | $ | 1,000 | | | $ | 1,018.39 | | | $ | 6.76 | | | | 1.33% | |
Class R6 | | $ | 1,000 | | | $ | 1,045.20 | | | $ | 3.07 | | | $ | 1,000 | | | $ | 1,022.10 | | | $ | 3.03 | | | | 0.59% | |
Class Y | | $ | 1,000 | | | $ | 1,043.20 | | | $ | 5.01 | | | $ | 1,000 | | | $ | 1,020.14 | | | $ | 4.95 | | | | 0.98% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Core Equity Fund | |
Class A | | $ | 1,000 | | | $ | 1,058.10 | | | $ | 5.97 | | | $ | 1,000 | | | $ | 1,019.31 | | | $ | 5.86 | | | | 1.15% | |
Class B** | | $ | 1,000 | | | $ | 1,053.50 | | | $ | 10.99 | | | $ | 1,000 | | | $ | 1,014.40 | | | $ | 10.78 | | | | 2.13% | |
Class C | | $ | 1,000 | | | $ | 1,054.50 | | | $ | 9.86 | | | $ | 1,000 | | | $ | 1,015.45 | | | $ | 9.67 | | | | 1.92% | |
Class E | | $ | 1,000 | | | $ | 1,058.40 | | | $ | 6.18 | | | $ | 1,000 | | | $ | 1,019.03 | | | $ | 6.06 | | | | 1.21% | |
Class I | | $ | 1,000 | | | $ | 1,059.80 | | | $ | 4.33 | | | $ | 1,000 | | | $ | 1,020.87 | | | $ | 4.24 | | | | 0.84% | |
Class R | | $ | 1,000 | | | $ | 1,056.00 | | | $ | 7.71 | | | $ | 1,000 | | | $ | 1,017.54 | | | $ | 7.57 | | | | 1.50% | |
Class R6 | | $ | 1,000 | | | $ | 1,060.40 | | | $ | 3.91 | | | $ | 1,000 | | | $ | 1,021.28 | | | $ | 3.84 | | | | 0.76% | |
Class Y | | $ | 1,000 | | | $ | 1,059.90 | | | $ | 4.33 | | | $ | 1,000 | | | $ | 1,020.87 | | | $ | 4.24 | | | | 0.84% | |
Ivy Cundill Global Value Fund | |
Class A | | $ | 1,000 | | | $ | 1,052.30 | | | $ | 8.62 | | | $ | 1,000 | | | $ | 1,016.71 | | | $ | 8.47 | | | | 1.67% | |
Class B** | | $ | 1,000 | | | $ | 1,044.90 | | | $ | 15.54 | | | $ | 1,000 | | | $ | 1,009.85 | | | $ | 15.27 | | | | 3.04% | |
Class C | | $ | 1,000 | | | $ | 1,049.60 | | | $ | 11.38 | | | $ | 1,000 | | | $ | 1,013.93 | | | $ | 11.18 | | | | 2.22% | |
Class E | | $ | 1,000 | | | $ | 1,054.10 | | | $ | 7.19 | | | $ | 1,000 | | | $ | 1,018.06 | | | $ | 7.06 | | | | 1.40% | |
Class I | | $ | 1,000 | | | $ | 1,055.30 | | | $ | 6.17 | | | $ | 1,000 | | | $ | 1,019.07 | | | $ | 6.06 | | | | 1.20% | |
Class R | | $ | 1,000 | | | $ | 1,051.70 | | | $ | 9.03 | | | $ | 1,000 | | | $ | 1,016.30 | | | $ | 8.87 | | | | 1.75% | |
Class R6 | | $ | 1,000 | | | $ | 1,055.90 | | | $ | 5.14 | | | $ | 1,000 | | | $ | 1,020.05 | | | $ | 5.05 | | | | 1.00% | |
Class Y | | $ | 1,000 | | | $ | 1,053.70 | | | $ | 7.29 | | | $ | 1,000 | | | $ | 1,018.00 | | | $ | 7.16 | | | | 1.41% | |
Ivy Dividend Opportunities Fund | |
Class A | | $ | 1,000 | | | $ | 1,049.10 | | | $ | 6.45 | | | $ | 1,000 | | | $ | 1,018.76 | | | $ | 6.36 | | | | 1.26% | |
Class B** | | $ | 1,000 | | | $ | 1,044.80 | | | $ | 10.43 | | | $ | 1,000 | | | $ | 1,014.83 | | | $ | 10.28 | | | | 2.04% | |
Class C | | $ | 1,000 | | | $ | 1,045.80 | | | $ | 9.82 | | | $ | 1,000 | | | $ | 1,015.45 | | | $ | 9.67 | | | | 1.92% | |
Class E | | $ | 1,000 | | | $ | 1,048.90 | | | $ | 6.15 | | | $ | 1,000 | | | $ | 1,019.09 | | | $ | 6.06 | | | | 1.19% | |
Class I | | $ | 1,000 | | | $ | 1,050.00 | | | $ | 4.92 | | | $ | 1,000 | | | $ | 1,020.24 | | | $ | 4.85 | | | | 0.97% | |
Class R | | $ | 1,000 | | | $ | 1,047.00 | | | $ | 7.88 | | | $ | 1,000 | | | $ | 1,017.38 | | | $ | 7.77 | | | | 1.53% | |
Class R6 | | $ | 1,000 | | | $ | 1,051.20 | | | $ | 4.10 | | | $ | 1,000 | | | $ | 1,021.08 | | | $ | 4.04 | | | | 0.81% | |
Class Y | | $ | 1,000 | | | $ | 1,048.90 | | | $ | 6.15 | | | $ | 1,000 | | | $ | 1,019.09 | | | $ | 6.06 | | | | 1.19% | |
Ivy Emerging Markets Equity Fund | |
Class A | | $ | 1,000 | | | $ | 1,151.60 | | | $ | 8.28 | | | $ | 1,000 | | | $ | 1,017.40 | | | $ | 7.77 | | | | 1.52% | |
Class B** | | $ | 1,000 | | | $ | 1,146.40 | | | $ | 13.42 | | | $ | 1,000 | | | $ | 1,012.57 | | | $ | 12.58 | | | | 2.50% | |
Class C | | $ | 1,000 | | | $ | 1,147.00 | | | $ | 12.77 | | | $ | 1,000 | | �� | $ | 1,013.16 | | | $ | 11.98 | | | | 2.38% | |
Class E*** | | $ | 1,000 | | | $ | 1,152.60 | | | $ | 7.32 | | | $ | 1,000 | | | $ | 1,018.24 | | | $ | 6.86 | | | | 1.36% | |
Class I | | $ | 1,000 | | | $ | 1,153.30 | | | $ | 6.78 | | | $ | 1,000 | | | $ | 1,018.73 | | | $ | 6.36 | | | | 1.26% | |
Class R | | $ | 1,000 | | | $ | 1,150.00 | | | $ | 10.00 | | | $ | 1,000 | | | $ | 1,015.81 | | | $ | 9.37 | | | | 1.84% | |
Class R6 | | $ | 1,000 | | | $ | 1,154.20 | | | $ | 5.92 | | | $ | 1,000 | | | $ | 1,019.54 | | | $ | 5.55 | | | | 1.10% | |
Class Y | | $ | 1,000 | | | $ | 1,151.70 | | | $ | 8.28 | | | $ | 1,000 | | | $ | 1,017.40 | | | $ | 7.77 | | | | 1.52% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy European Opportunities Fund | |
Class A | | $ | 1,000 | | | $ | 1,034.60 | | | $ | 8.65 | | | $ | 1,000 | | | $ | 1,016.58 | | | $ | 8.57 | | | | 1.69% | |
Class B** | | $ | 1,000 | | | $ | 1,028.80 | | | $ | 14.30 | | | $ | 1,000 | | | $ | 1,010.92 | | | $ | 14.18 | | | | 2.82% | |
Class C | | $ | 1,000 | | | $ | 1,031.30 | | | $ | 11.88 | | | $ | 1,000 | | | $ | 1,013.40 | | | $ | 11.78 | | | | 2.33% | |
Class E*** | | $ | 1,000 | | | $ | 1,036.30 | | | $ | 6.72 | | | $ | 1,000 | | | $ | 1,018.45 | | | $ | 6.66 | | | | 1.32% | |
Class I | | $ | 1,000 | | | $ | 1,037.40 | | | $ | 6.21 | | | $ | 1,000 | | | $ | 1,019.00 | | | $ | 6.16 | | | | 1.21% | |
Class R | | $ | 1,000 | | | $ | 1,033.90 | | | $ | 9.15 | | | $ | 1,000 | | | $ | 1,016.05 | | | $ | 9.07 | | | | 1.80% | |
Class R6 | | $ | 1,000 | | | $ | 1,037.90 | | | $ | 5.40 | | | $ | 1,000 | | | $ | 1,019.78 | | | $ | 5.35 | | | | 1.06% | |
Class Y | | $ | 1,000 | | | $ | 1,035.50 | | | $ | 7.73 | | | $ | 1,000 | | | $ | 1,017.49 | | | $ | 7.67 | | | | 1.51% | |
Ivy Global Bond Fund | |
Class A | | $ | 1,000 | | | $ | 1,051.50 | | | $ | 5.03 | | | $ | 1,000 | | | $ | 1,020.12 | | | $ | 4.95 | | | | 0.99% | |
Class B** | | $ | 1,000 | | | $ | 1,047.50 | | | $ | 8.91 | | | $ | 1,000 | | | $ | 1,016.37 | | | $ | 8.77 | | | | 1.74% | |
Class C | | $ | 1,000 | | | $ | 1,048.60 | | | $ | 8.91 | | | $ | 1,000 | | | $ | 1,016.37 | | | $ | 8.77 | | | | 1.74% | |
Class I | | $ | 1,000 | | | $ | 1,053.90 | | | $ | 3.80 | | | $ | 1,000 | | | $ | 1,021.37 | | | $ | 3.74 | | | | 0.74% | |
Class R | | $ | 1,000 | | | $ | 1,048.80 | | | $ | 7.68 | | | $ | 1,000 | | | $ | 1,017.61 | | | $ | 7.57 | | | | 1.49% | |
Class R6 | | $ | 1,000 | | | $ | 1,052.70 | | | $ | 3.90 | | | $ | 1,000 | | | $ | 1,021.31 | | | $ | 3.84 | | | | 0.75% | |
Class Y | | $ | 1,000 | | | $ | 1,051.50 | | | $ | 5.03 | | | $ | 1,000 | | | $ | 1,020.12 | | | $ | 4.95 | | | | 0.99% | |
Ivy Global Equity Income Fund | |
Class A | | $ | 1,000 | | | $ | 1,042.80 | | | $ | 6.54 | | | $ | 1,000 | | | $ | 1,018.63 | | | $ | 6.46 | | | | 1.30% | |
Class B** | | $ | 1,000 | | | $ | 1,040.10 | | | $ | 10.00 | | | $ | 1,000 | | | $ | 1,015.27 | | | $ | 9.87 | | | | 1.96% | |
Class C | | $ | 1,000 | | | $ | 1,040.20 | | | $ | 9.89 | | | $ | 1,000 | | | $ | 1,015.36 | | | $ | 9.77 | | | | 1.94% | |
Class I | | $ | 1,000 | | | $ | 1,045.60 | | | $ | 4.60 | | | $ | 1,000 | | | $ | 1,020.54 | | | $ | 4.55 | | | | 0.89% | |
Class R | | $ | 1,000 | | | $ | 1,042.20 | | | $ | 7.96 | | | $ | 1,000 | | | $ | 1,017.29 | | | $ | 7.87 | | | | 1.55% | |
Class R6 | | $ | 1,000 | | | $ | 1,046.20 | | | $ | 4.19 | | | $ | 1,000 | | | $ | 1,021.01 | | | $ | 4.14 | | | | 0.81% | |
Class Y | | $ | 1,000 | | | $ | 1,044.30 | | | $ | 6.03 | | | $ | 1,000 | | | $ | 1,019.12 | | | $ | 5.96 | | | | 1.19% | |
Ivy Global Growth Fund | |
Class A | | $ | 1,000 | | | $ | 1,031.10 | | | $ | 7.62 | | | $ | 1,000 | | | $ | 1,017.61 | | | $ | 7.57 | | | | 1.49% | |
Class B** | | $ | 1,000 | | | $ | 1,025.20 | | | $ | 13.57 | | | $ | 1,000 | | | $ | 1,011.72 | | | $ | 13.48 | | | | 2.66% | |
Class C | | $ | 1,000 | | | $ | 1,027.20 | | | $ | 11.25 | | | $ | 1,000 | | | $ | 1,013.97 | | | $ | 11.18 | | | | 2.21% | |
Class E | | $ | 1,000 | | | $ | 1,032.50 | | | $ | 6.10 | | | $ | 1,000 | | | $ | 1,019.04 | | | $ | 6.06 | | | | 1.20% | |
Class I | | $ | 1,000 | | | $ | 1,032.90 | | | $ | 5.69 | | | $ | 1,000 | | | $ | 1,019.48 | | | $ | 5.65 | | | | 1.12% | |
Class R | | $ | 1,000 | | | $ | 1,030.00 | | | $ | 8.63 | | | $ | 1,000 | | | $ | 1,016.58 | | | $ | 8.57 | | | | 1.69% | |
Class R6 | | $ | 1,000 | | | $ | 1,033.60 | | | $ | 4.78 | | | $ | 1,000 | | | $ | 1,020.34 | | | $ | 4.75 | | | | 0.95% | |
Class Y | | $ | 1,000 | | | $ | 1,031.50 | | | $ | 6.91 | | | $ | 1,000 | | | $ | 1,018.31 | | | $ | 6.86 | | | | 1.35% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Global Income Allocation Fund | |
Class A | | $ | 1,000 | | | $ | 1,056.60 | | | $ | 6.58 | | | $ | 1,000 | | | $ | 1,018.63 | | | $ | 6.46 | | | | 1.29% | |
Class B** | | $ | 1,000 | | | $ | 1,051.00 | | | $ | 11.18 | | | $ | 1,000 | | | $ | 1,014.17 | | | $ | 10.98 | | | | 2.17% | |
Class C | | $ | 1,000 | | | $ | 1,053.10 | | | $ | 9.75 | | | $ | 1,000 | | | $ | 1,015.54 | | | $ | 9.57 | | | | 1.90% | |
Class E | | $ | 1,000 | | | $ | 1,055.70 | | | $ | 6.89 | | | $ | 1,000 | | | $ | 1,018.42 | | | $ | 6.76 | | | | 1.33% | |
Class I | | $ | 1,000 | | | $ | 1,058.10 | | | $ | 4.94 | | | $ | 1,000 | | | $ | 1,020.31 | | | $ | 4.85 | | | | 0.95% | |
Class R | | $ | 1,000 | | | $ | 1,054.60 | | | $ | 7.91 | | | $ | 1,000 | | | $ | 1,017.40 | | | $ | 7.77 | | | | 1.53% | |
Class R6 | | $ | 1,000 | | | $ | 1,058.80 | | | $ | 4.01 | | | $ | 1,000 | | | $ | 1,021.15 | | | $ | 3.94 | | | | 0.78% | |
Class Y | | $ | 1,000 | | | $ | 1,057.00 | | | $ | 5.97 | | | $ | 1,000 | | | $ | 1,019.22 | | | $ | 5.86 | | | | 1.17% | |
Ivy High Income Fund | |
Class A | | $ | 1,000 | | | $ | 1,110.40 | | | $ | 5.17 | | | $ | 1,000 | | | $ | 1,020.16 | | | $ | 4.95 | | | | 0.98% | |
Class B** | | $ | 1,000 | | | $ | 1,106.30 | | | $ | 9.06 | | | $ | 1,000 | | | $ | 1,016.45 | | | $ | 8.67 | | | | 1.72% | |
Class C | | $ | 1,000 | | | $ | 1,106.50 | | | $ | 8.85 | | | $ | 1,000 | | | $ | 1,016.68 | | | $ | 8.47 | | | | 1.67% | |
Class E | | $ | 1,000 | | | $ | 1,109.30 | | | $ | 6.33 | | | $ | 1,000 | | | $ | 1,019.09 | | | $ | 6.06 | | | | 1.19% | |
Class I | | $ | 1,000 | | | $ | 1,111.80 | | | $ | 3.80 | | | $ | 1,000 | | | $ | 1,021.44 | | | $ | 3.64 | | | | 0.72% | |
Class R | | $ | 1,000 | | | $ | 1,108.60 | | | $ | 6.96 | | | $ | 1,000 | | | $ | 1,018.49 | | | $ | 6.66 | | | | 1.31% | |
Class R6 | | $ | 1,000 | | | $ | 1,113.00 | | | $ | 2.96 | | | $ | 1,000 | | | $ | 1,022.25 | | | $ | 2.83 | | | | 0.56% | |
Class Y | | $ | 1,000 | | | $ | 1,110.50 | | | $ | 5.07 | | | $ | 1,000 | | | $ | 1,020.27 | | | $ | 4.85 | | | | 0.96% | |
Ivy International Core Equity Fund | |
Class A | | $ | 1,000 | | | $ | 1,058.20 | | | $ | 6.69 | | | $ | 1,000 | | | $ | 1,018.55 | | | $ | 6.56 | | | | 1.30% | |
Class B** | | $ | 1,000 | | | $ | 1,052.70 | | | $ | 11.50 | | | $ | 1,000 | | | $ | 1,013.89 | | | $ | 11.28 | | | | 2.23% | |
Class C | | $ | 1,000 | | | $ | 1,054.70 | | | $ | 10.17 | | | $ | 1,000 | | | $ | 1,015.17 | | | $ | 9.98 | | | | 1.97% | |
Class E | | $ | 1,000 | | | $ | 1,057.20 | | | $ | 7.10 | | | $ | 1,000 | | | $ | 1,018.22 | | | $ | 6.96 | | | | 1.37% | |
Class I | | $ | 1,000 | | | $ | 1,059.10 | | | $ | 5.04 | | | $ | 1,000 | | | $ | 1,020.20 | | | $ | 4.95 | | | | 0.97% | |
Class R | | $ | 1,000 | | | $ | 1,056.30 | | | $ | 8.02 | | | $ | 1,000 | | | $ | 1,017.24 | | | $ | 7.87 | | | | 1.56% | |
Class R6 | | $ | 1,000 | | | $ | 1,060.20 | | | $ | 4.22 | | | $ | 1,000 | | | $ | 1,020.95 | | | $ | 4.14 | | | | 0.82% | |
Class Y | | $ | 1,000 | | | $ | 1,057.80 | | | $ | 6.38 | | | $ | 1,000 | | | $ | 1,018.89 | | | $ | 6.26 | | | | 1.23% | |
Ivy Large Cap Growth Fund | |
Class A | | $ | 1,000 | | | $ | 1,061.20 | | | $ | 5.98 | | | $ | 1,000 | | | $ | 1,019.31 | | | $ | 5.86 | | | | 1.15% | |
Class B** | | $ | 1,000 | | | $ | 1,056.30 | | | $ | 10.80 | | | $ | 1,000 | | | $ | 1,014.61 | | | $ | 10.58 | | | | 2.09% | |
Class C | | $ | 1,000 | | | $ | 1,057.30 | | | $ | 9.67 | | | $ | 1,000 | | | $ | 1,015.72 | | | $ | 9.47 | | | | 1.87% | |
Class E | | $ | 1,000 | | | $ | 1,061.20 | | | $ | 5.98 | | | $ | 1,000 | | | $ | 1,019.32 | | | $ | 5.86 | | | | 1.15% | |
Class I | | $ | 1,000 | | | $ | 1,062.50 | | | $ | 4.54 | | | $ | 1,000 | | | $ | 1,020.68 | | | $ | 4.45 | | | | 0.88% | |
Class R | | $ | 1,000 | | | $ | 1,059.40 | | | $ | 7.62 | | | $ | 1,000 | | | $ | 1,017.72 | | | $ | 7.47 | | | | 1.47% | |
Class R6 | | $ | 1,000 | | | $ | 1,063.30 | | | $ | 3.71 | | | $ | 1,000 | | | $ | 1,021.44 | | | $ | 3.64 | | | | 0.71% | |
Class Y | | $ | 1,000 | | | $ | 1,062.10 | | | $ | 5.46 | | | $ | 1,000 | | | $ | 1,019.77 | | | $ | 5.35 | | | | 1.06% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Limited-Term Bond Fund | |
Class A | | $ | 1,000 | | | $ | 1,016.60 | | | $ | 4.44 | | | $ | 1,000 | | | $ | 1,020.67 | | | $ | 4.45 | | | | 0.88% | |
Class B** | | $ | 1,000 | | | $ | 1,012.50 | | | $ | 8.55 | | | $ | 1,000 | | | $ | 1,016.55 | | | $ | 8.57 | | | | 1.70% | |
Class C | | $ | 1,000 | | | $ | 1,012.90 | | | $ | 8.15 | | | $ | 1,000 | | | $ | 1,016.98 | | | $ | 8.17 | | | | 1.61% | |
Class E | | $ | 1,000 | | | $ | 1,016.10 | | | $ | 5.04 | | | $ | 1,000 | | | $ | 1,020.10 | | | $ | 5.05 | | | | 0.98% | |
Class I | | $ | 1,000 | | | $ | 1,017.90 | | | $ | 3.23 | | | $ | 1,000 | | | $ | 1,021.88 | | | $ | 3.24 | | | | 0.64% | |
Class R | | $ | 1,000 | | | $ | 1,014.80 | | | $ | 6.25 | | | $ | 1,000 | | | $ | 1,018.86 | | | $ | 6.26 | | | | 1.24% | |
Class R6 | | $ | 1,000 | | | $ | 1,018.60 | | | $ | 2.42 | | | $ | 1,000 | | | $ | 1,022.65 | | | $ | 2.43 | | | | 0.48% | |
Class Y | | $ | 1,000 | | | $ | 1,016.70 | | | $ | 4.44 | | | $ | 1,000 | | | $ | 1,020.67 | | | $ | 4.45 | | | | 0.88% | |
Ivy Managed International Opportunities Fund(3) | |
Class A | | $ | 1,000 | | | $ | 1,055.00 | | | $ | 2.47 | | | $ | 1,000 | | | $ | 1,022.63 | | | $ | 2.43 | | | | 0.49% | |
Class B** | | $ | 1,000 | | | $ | 1,051.90 | | | $ | 7.18 | | | $ | 1,000 | | | $ | 1,018.07 | | | $ | 7.06 | | | | 1.40% | |
Class C | | $ | 1,000 | | | $ | 1,051.70 | | | $ | 6.46 | | | $ | 1,000 | | | $ | 1,018.78 | | | $ | 6.36 | | | | 1.26% | |
Class E*** | | $ | 1,000 | | | $ | 1,054.90 | | | $ | 2.05 | | | $ | 1,000 | | | $ | 1,023.12 | | | $ | 2.02 | | | | 0.39% | |
Class I | | $ | 1,000 | | | $ | 1,055.80 | | | $ | 0.82 | | | $ | 1,000 | | | $ | 1,024.31 | | | $ | 0.81 | | | | 0.14% | |
Class R | | $ | 1,000 | | | $ | 1,053.00 | | | $ | 3.49 | | | $ | 1,000 | | | $ | 1,021.65 | | | $ | 3.44 | | | | 0.68% | |
Class Y | | $ | 1,000 | | | $ | 1,055.00 | | | $ | 1.95 | | | $ | 1,000 | | | $ | 1,023.17 | | | $ | 1.92 | | | | 0.38% | |
Ivy Micro Cap Growth Fund | |
Class A | | $ | 1,000 | | | $ | 1,302.10 | | | $ | 9.90 | | | $ | 1,000 | | | $ | 1,016.46 | | | $ | 8.67 | | | | 1.72% | |
Class B** | | $ | 1,000 | | | $ | 1,295.40 | | | $ | 15.26 | | | $ | 1,000 | | | $ | 1,011.79 | | | $ | 13.38 | | | | 2.65% | |
Class C | | $ | 1,000 | | | $ | 1,296.90 | | | $ | 14.36 | | | $ | 1,000 | | | $ | 1,012.60 | | | $ | 12.58 | | | | 2.49% | |
Class I | | $ | 1,000 | | | $ | 1,304.40 | | | $ | 7.49 | | | $ | 1,000 | | | $ | 1,018.54 | | | $ | 6.56 | | | | 1.30% | |
Class R | | $ | 1,000 | | | $ | 1,300.90 | | | $ | 10.70 | | | $ | 1,000 | | | $ | 1,015.81 | | | $ | 9.37 | | | | 1.85% | |
Class R6 | | $ | 1,000 | | | $ | 1,305.80 | | | $ | 6.34 | | | $ | 1,000 | | | $ | 1,019.59 | | | $ | 5.55 | | | | 1.09% | |
Class Y | | $ | 1,000 | | | $ | 1,303.40 | | | $ | 8.75 | | | $ | 1,000 | | | $ | 1,017.44 | | | $ | 7.67 | | | | 1.52% | |
Ivy Mid Cap Growth Fund | |
Class A | | $ | 1,000 | | | $ | 1,070.70 | | | $ | 6.83 | | | $ | 1,000 | | | $ | 1,018.51 | | | $ | 6.66 | | | | 1.31% | |
Class B** | | $ | 1,000 | | | $ | 1,066.60 | | | $ | 10.85 | | | $ | 1,000 | | | $ | 1,014.57 | | | $ | 10.58 | | | | 2.09% | |
Class C | | $ | 1,000 | | | $ | 1,066.50 | | | $ | 10.54 | | | $ | 1,000 | | | $ | 1,014.85 | | | $ | 10.28 | | | | 2.04% | |
Class E | | $ | 1,000 | | | $ | 1,070.60 | | | $ | 6.73 | | | $ | 1,000 | | | $ | 1,018.57 | | | $ | 6.56 | | | | 1.30% | |
Class I | | $ | 1,000 | | | $ | 1,072.00 | | | $ | 5.39 | | | $ | 1,000 | | | $ | 1,019.83 | | | $ | 5.25 | | | | 1.05% | |
Class R | | $ | 1,000 | | | $ | 1,069.20 | | | $ | 8.38 | | | $ | 1,000 | | | $ | 1,016.95 | | | $ | 8.17 | | | | 1.62% | |
Class R6 | | $ | 1,000 | | | $ | 1,073.20 | | | $ | 4.46 | | | $ | 1,000 | | | $ | 1,020.74 | | | $ | 4.34 | | | | 0.87% | |
Class Y | | $ | 1,000 | | | $ | 1,071.10 | | | $ | 6.52 | | | $ | 1,000 | | | $ | 1,018.74 | | | $ | 6.36 | | | | 1.26% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Mid Cap Income Opportunities Fund | |
Class A | | $ | 1,000 | | | $ | 1,078.30 | | | $ | 7.17 | | | $ | 1,000 | | | $ | 1,018.19 | | | $ | 6.96 | | | | 1.35% | |
Class C | | $ | 1,000 | | | $ | 1,074.20 | | | $ | 10.79 | | | $ | 1,000 | | | $ | 1,014.67 | | | $ | 10.48 | | | | 2.07% | |
Class E | | $ | 1,000 | | | $ | 1,079.40 | | | $ | 6.65 | | | $ | 1,000 | | | $ | 1,018.72 | | | $ | 6.46 | | | | 1.28% | |
Class I | | $ | 1,000 | | | $ | 1,080.60 | | | $ | 5.62 | | | $ | 1,000 | | | $ | 1,019.66 | | | $ | 5.45 | | | | 1.05% | |
Class R | | $ | 1,000 | | | $ | 1,075.40 | | | $ | 9.13 | | | $ | 1,000 | | | $ | 1,016.22 | | | $ | 8.87 | | | | 1.78% | |
Class R6 | | $ | 1,000 | | | $ | 1,080.60 | | | $ | 5.31 | | | $ | 1,000 | | | $ | 1,019.96 | | | $ | 5.15 | | | | 1.03% | |
Class Y | | $ | 1,000 | | | $ | 1,078.30 | | | $ | 7.17 | | | $ | 1,000 | | | $ | 1,018.19 | | | $ | 6.96 | | | | 1.35% | |
Ivy Money Market Fund | |
Class A | | $ | 1,000 | | | $ | 1,000.10 | | | $ | 2.90 | | | $ | 1,000 | | | $ | 1,022.18 | | | $ | 2.93 | | | | 0.58% | |
Class B** | | $ | 1,000 | | | $ | 1,000.10 | | | $ | 2.90 | | | $ | 1,000 | | | $ | 1,022.18 | | | $ | 2.93 | | | | 0.58% | |
Class C | | $ | 1,000 | | | $ | 1,000.00 | | | $ | 2.90 | | | $ | 1,000 | | | $ | 1,022.17 | | | $ | 2.93 | | | | 0.58% | |
Class E | | $ | 1,000 | | | $ | 1,000.10 | | | $ | 2.90 | | | $ | 1,000 | | | $ | 1,022.16 | | | $ | 2.93 | | | | 0.58% | |
Ivy Municipal Bond Fund | |
Class A | | $ | 1,000 | | | $ | 1,018.20 | | | $ | 5.05 | | | $ | 1,000 | | | $ | 1,020.10 | | | $ | 5.05 | | | | 0.99% | |
Class B** | | $ | 1,000 | | | $ | 1,014.40 | | | $ | 8.86 | | | $ | 1,000 | | | $ | 1,016.30 | | | $ | 8.87 | | | | 1.75% | |
Class C | | $ | 1,000 | | | $ | 1,014.40 | | | $ | 8.76 | | | $ | 1,000 | | | $ | 1,016.39 | | | $ | 8.77 | | | | 1.73% | |
Class I | | $ | 1,000 | | | $ | 1,019.20 | | | $ | 4.04 | | | $ | 1,000 | | | $ | 1,021.11 | | | $ | 4.04 | | | | 0.79% | |
Class Y | | $ | 1,000 | | | $ | 1,018.20 | | | $ | 5.05 | | | $ | 1,000 | | | $ | 1,020.08 | | | $ | 5.05 | | | | 0.99% | |
Ivy Municipal High Income Fund | |
Class A | | $ | 1,000 | | | $ | 1,038.30 | | | $ | 4.38 | | | $ | 1,000 | | | $ | 1,020.77 | | | $ | 4.34 | | | | 0.86% | |
Class B** | | $ | 1,000 | | | $ | 1,034.30 | | | $ | 8.24 | | | $ | 1,000 | | | $ | 1,016.93 | | | $ | 8.17 | | | | 1.62% | |
Class C | | $ | 1,000 | | | $ | 1,034.50 | | | $ | 8.04 | | | $ | 1,000 | | | $ | 1,017.14 | | | $ | 7.97 | | | | 1.58% | |
Class I | | $ | 1,000 | | | $ | 1,039.20 | | | $ | 3.47 | | | $ | 1,000 | | | $ | 1,021.67 | | | $ | 3.44 | | | | 0.68% | |
Class Y | | $ | 1,000 | | | $ | 1,038.30 | | | $ | 4.38 | | | $ | 1,000 | | | $ | 1,020.77 | | | $ | 4.34 | | | | 0.86% | |
Ivy Small Cap Growth Fund | |
Class A | | $ | 1,000 | | | $ | 1,105.30 | | | $ | 7.47 | | | $ | 1,000 | | | $ | 1,017.97 | | | $ | 7.16 | | | | 1.42% | |
Class B** | | $ | 1,000 | | | $ | 1,101.10 | | | $ | 11.77 | | | $ | 1,000 | | | $ | 1,013.83 | | | $ | 11.28 | | | | 2.24% | |
Class C | | $ | 1,000 | | | $ | 1,101.60 | | | $ | 10.93 | | | $ | 1,000 | | | $ | 1,014.68 | | | $ | 10.48 | | | | 2.07% | |
Class E | | $ | 1,000 | | | $ | 1,105.40 | | | $ | 7.58 | | | $ | 1,000 | | | $ | 1,017.86 | | | $ | 7.26 | | | | 1.44% | |
Class I | | $ | 1,000 | | | $ | 1,107.70 | | | $ | 5.69 | | | $ | 1,000 | | | $ | 1,019.65 | | | $ | 5.45 | | | | 1.08% | |
Class R | | $ | 1,000 | | | $ | 1,104.60 | | | $ | 8.73 | | | $ | 1,000 | | | $ | 1,016.73 | | | $ | 8.37 | | | | 1.66% | |
Class R6 | | $ | 1,000 | | | $ | 1,109.00 | | | $ | 4.85 | | | $ | 1,000 | | | $ | 1,020.49 | | | $ | 4.65 | | | | 0.91% | |
Class Y | | $ | 1,000 | | | $ | 1,106.10 | | | $ | 6.95 | | | $ | 1,000 | | | $ | 1,018.48 | | | $ | 6.66 | | | | 1.31% | |
See footnotes on page 10.
| | |
| ILLUSTRATION OF FUND EXPENSES | | IVY FUNDS |
(UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual(1) | | | Hypothetical(2) | | | Annualized
Expense Ratio
Based on the
Six-Month
Period | |
| Fund | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | | Beginning
Account
Value
3-31-16 | | | Ending
Account
Value
9-30-16 | | | Expenses
Paid During
Period* | | |
Ivy Small Cap Value Fund | |
Class A | | $ | 1,000 | | | $ | 1,166.20 | | | $ | 8.34 | | | $ | 1,000 | | | $ | 1,017.40 | | | $ | 7.77 | | | | 1.53% | |
Class B** | | $ | 1,000 | | | $ | 1,160.20 | | | $ | 13.39 | | | $ | 1,000 | | | $ | 1,012.64 | | | $ | 12.48 | | | | 2.48% | |
Class C | | $ | 1,000 | | | $ | 1,162.20 | | | $ | 12.00 | | | $ | 1,000 | | | $ | 1,013.95 | | | $ | 11.18 | | | | 2.22% | |
Class E*** | | $ | 1,000 | | | $ | 1,168.10 | | | $ | 6.61 | | | $ | 1,000 | | | $ | 1,018.97 | | | $ | 6.16 | | | | 1.22% | |
Class I | | $ | 1,000 | | | $ | 1,168.60 | | | $ | 6.18 | | | $ | 1,000 | | | $ | 1,019.42 | | | $ | 5.76 | | | | 1.13% | |
Class R | | $ | 1,000 | | | $ | 1,164.70 | | | $ | 9.20 | | | $ | 1,000 | | | $ | 1,016.52 | | | $ | 8.57 | | | | 1.70% | |
Class R6 | | $ | 1,000 | | | $ | 1,169.50 | | | $ | 5.21 | | | $ | 1,000 | | | $ | 1,020.25 | | | $ | 4.85 | | | | 0.96% | |
Class Y | | $ | 1,000 | | | $ | 1,167.00 | | | $ | 7.48 | | | $ | 1,000 | | | $ | 1,018.21 | | | $ | 6.96 | | | | 1.37% | |
Ivy Tax-Managed Equity Fund | |
Class A | | $ | 1,000 | | | $ | 1,043.90 | | | $ | 6.13 | | | $ | 1,000 | | | $ | 1,019.08 | | | $ | 6.06 | | | | 1.20% | |
Class B** | | $ | 1,000 | | | $ | 1,039.90 | | | $ | 9.79 | | | $ | 1,000 | | | $ | 1,015.50 | | | $ | 9.67 | | | | 1.91% | |
Class C | | $ | 1,000 | | | $ | 1,039.50 | | | $ | 9.99 | | | $ | 1,000 | | | $ | 1,015.27 | | | $ | 9.87 | | | | 1.96% | |
Class I | | $ | 1,000 | | | $ | 1,045.10 | | | $ | 5.01 | | | $ | 1,000 | | | $ | 1,020.19 | | | $ | 4.95 | | | | 0.97% | |
Class Y | | $ | 1,000 | | | $ | 1,043.30 | | | $ | 6.13 | | | $ | 1,000 | | | $ | 1,019.03 | | | $ | 6.06 | | | | 1.20% | |
Ivy Value Fund | |
Class A | | $ | 1,000 | | | $ | 1,065.30 | | | $ | 7.02 | | | $ | 1,000 | | | $ | 1,018.25 | | | $ | 6.86 | | | | 1.36% | |
Class B** | | $ | 1,000 | | | $ | 1,059.70 | | | $ | 12.36 | | | $ | 1,000 | | | $ | 1,013.05 | | | $ | 12.08 | | | | 2.40% | |
Class C | | $ | 1,000 | | | $ | 1,062.00 | | | $ | 10.31 | | | $ | 1,000 | | | $ | 1,015.10 | | | $ | 10.08 | | | | 1.99% | |
Class E*** | | $ | 1,000 | | | $ | 1,066.50 | | | $ | 5.68 | | | $ | 1,000 | | | $ | 1,019.57 | | | $ | 5.55 | | | | 1.10% | |
Class I | | $ | 1,000 | | | $ | 1,067.20 | | | $ | 5.27 | | | $ | 1,000 | | | $ | 1,019.98 | | | $ | 5.15 | | | | 1.01% | |
Class R | | $ | 1,000 | | | $ | 1,063.90 | | | $ | 8.26 | | | $ | 1,000 | | | $ | 1,017.11 | | | $ | 8.07 | | | | 1.59% | |
Class R6 | | $ | 1,000 | | | $ | 1,067.80 | | | $ | 4.34 | | | $ | 1,000 | | | $ | 1,020.86 | | | $ | 4.24 | | | | 0.85% | |
Class Y | | $ | 1,000 | | | $ | 1,066.00 | | | $ | 6.30 | | | $ | 1,000 | | | $ | 1,018.99 | | | $ | 6.16 | | | | 1.20% | |
| * | 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, 2016, 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) | 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.
| | | | | | |
| 10 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 1.1% | |
Financials | | | 0.8% | |
Real Estate | | | 0.3% | |
Bonds | | | 95.8% | |
Corporate Debt Securities | | | 41.0% | |
United States Government and Government Agency Obligations | | | 35.2% | |
Asset-Backed Securities | | | 12.4% | |
Mortgage-Backed Securities | | | 5.9% | |
Municipal Bonds – Taxable | | | 1.3% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 3.1% | |
Lipper Rankings
| | | | | | |
Category: Lipper Corporate Debt
Funds A Rated | | Rank | | Percentile | |
1 Year | | 25/46 | | | 54 | |
3 Year | | 21/41 | | | 50 | |
5 Year | | 20/37 | | | 53 | |
10 Year | | 24/30 | | | 78 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Quality Weightings
| | | | |
Investment Grade | | | 85.7% | |
AAA | | | 4.6% | |
AA | | | 37.9% | |
A | | | 9.3% | |
BBB | | | 33.9% | |
Non-Investment Grade | | | 10.1% | |
BB | | | 7.1% | |
B | | | 0.4% | |
CCC | | | 0.3% | |
Below CCC | | | 0.1% | |
Non-rated | | | 2.2% | |
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities | | | 4.2% | |
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.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 11 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| PREFERRED STOCKS | | Shares | | | Value | |
| |
Financials | |
| |
Diversified Banks – 0.6% | |
Wells Fargo & Co., 5.850% | | | 173 | | | $ | 4,628 | |
| | | | | | | | |
| | |
Reinsurance – 0.2% | | | | | | | | |
Pitney Bowes International Holdings, Inc., Series F, 6.125% (A) | | | 2 | | | | 1,545 | |
| | | | | | | | |
| |
Total Financials – 0.8% | | | | 6,173 | |
Real Estate | |
| |
Specialized REITs – 0.3% | |
Ventas, Inc., 5.450% | | | 100 | | | | 2,703 | |
| | | | | | | | |
| |
Total Real Estate – 0.3% | | | | 2,703 | |
| |
TOTAL PREFERRED STOCKS – 1.1% | | | $ | 8,876 | |
(Cost: $8,424) | | | | | | | | |
| | |
| ASSET-BACKED SECURITIES | | Principal | | | | |
Air Canada Enhanced Equipment Trust Series 2015-2, Class AA, | | | | | | | | |
6.625%, 5–15–18 (A) | | $ | 460 | | | | 478 | |
Air Canada Pass Through Certificates, Series 2015-1, Class C, | | | | | | | | |
5.000%, 3–15–20 (A) | | | 5,030 | | | | 5,080 | |
America West Airlines, Inc., Pass Through Certificates, Series 1999-1, | | | | | | | | |
7.930%, 1–2–19 | | | 537 | | | | 570 | |
America West Airlines, Inc., Pass Through Certificates, Series 2000-1, | | | | | | | | |
8.057%, 7–2–20 | | | 703 | | | | 794 | |
American Airlines Class B Pass Through Certificates, Series 2013-2, | | | | | | | | |
5.600%, 7–15–20 (A) | | | 2,918 | | | | 3,053 | |
American Airlines Pass-Through Trusts, Pass-Through Certificates, Series 2013-1, | | | | | | | | |
3.700%, 5–1–23 | | | 908 | | | | 888 | |
American Airlines, Inc., Class A Pass Through Certificates, Series 2013-2, | | | | | | | | |
5.625%, 1–15–21 (A) | | | 5,272 | | | | 5,515 | |
Aventura Mall Trust, Series 2013-AVM, Class B, | | | | | | | | |
3.743%, 12–5–32 (A)(B) | | | 3,600 | | | | 3,821 | |
Capital One Multi-Asset Execution Trust, Series 2004-B3, | | | | | | | | |
1.254%, 1–18–22 (B) | | | 2,000 | | | | 2,007 | |
CarMax Auto Owner Trust 2013-2, Class D: | | | | | | | | |
1.880%, 11–15–19 (B) | | | 1,300 | | | | 1,311 | |
2.060%, 11–15–19 | | | 1,000 | | | | 1,002 | |
CarMax Auto Owner Trust 2013-4, Class D, | | | | | | | | |
2.600%, 4–15–20 | | | 2,000 | | | | 2,016 | |
Chrysler Capital Auto Receivables Trust 2013-AA, Class D, | | | | | | | | |
2.930%, 8–17–20 (A) | | | 1,400 | | | | 1,412 | |
| | | | | | | | |
ASSET-BACKED SECURITIES
(Continued) | | Principal | | | Value | |
Continental Airlines 2001-1 A-1, | | | | | | | | |
8.048%, 11–1–20 | | $ | 565 | | | $ | 632 | |
Continental Airlines Pass Through Certificates, Series 2009-2, | | | | | | | | |
7.250%, 11–10–19 | | | 1,239 | | | | 1,416 | |
Continental Airlines Pass Through Certificates, Series 2010-1B, | | | | | | | | |
6.000%, 1–12–19 | | | 1,262 | | | | 1,351 | |
Continental Airlines, Inc. Class B Pass Through Certificates, Series 2012-1B, | | | | | | | | |
6.250%, 4–11–20 | | | 696 | | | | 746 | |
CVS Caremark Corp. Pass-Through Trust: | | | | | | | | |
6.036%, 12–10–28 | | | 3,709 | | | | 4,304 | |
6.943%, 1–10–30 | | | 3,037 | | | | 3,703 | |
Delta Air Lines, Inc. Class A Pass Through Certificates, Series 2010-2, | | | | | | | | |
4.250%, 7–30–23 | | | 2,265 | | | | 2,339 | |
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1A, | | | | | | | | |
4.750%, 5–7–20 | | | 1,611 | | | | 1,740 | |
Delta Air Lines, Inc. Pass-Through Certificates, Series 2012-1B, | | | | | | | | |
6.875%, 5–7–19 (A) | | | 3,886 | | | | 4,196 | |
Earnest Student Loan Program LLC, Series 2016-B, Class A2, | | | | | | | | |
3.020%, 5–25–34 (A) | | | 3,423 | | | | 3,435 | |
Fan Engine Securitization Ltd., Series 2013-1X, | | | | | | | | |
3.000%, 10–15–19 (A) | | | 665 | | | | 665 | |
Foursight Capital Automobile Receivables Trust, Series 2016-1, Class B: | | | | | | | | |
2.340%, 1–15–21 (A) | | | 2,180 | | | | 2,182 | |
3.710%, 1–18–22 (A) | | | 3,202 | | | | 3,198 | |
Hawaiian Airlines Pass Through Certificates, Series 2013-1, | | | | | | | | |
4.950%, 1–15–22 | | | 3,876 | | | | 3,876 | |
Hyundai Auto Receivables Trust 2014-A, Class D: | | | | | | | | |
2.020%, 8–15–19 | | | 1,000 | | | | 1,007 | |
1.780%, 7–15–20 | | | 2,500 | | | | 2,508 | |
2.530%, 7–15–20 | | | 1,000 | | | | 1,010 | |
2.510%, 12–15–20 | | | 2,000 | | | | 2,011 | |
Longtrain Leasing III LLC, Series 2015A-1, | | | | | | | | |
2.980%, 1–15–45 (A) | | | 1,147 | | | | 1,131 | |
Longtrain Leasing III LLC, Series 2015A-2, | | | | | | | | |
4.060%, 1–15–45 (A) | | | 6,275 | | | | 5,898 | |
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC), | | | | | | | | |
2.240%, 4–16–18 (A) | | | 3,120 | | | | 3,130 | |
SoFi Professional Loan Program LLC, Series 2014-B, | | | | | | | | |
1.775%, 8–25–32 (A)(B) | | | 2,573 | | | | 2,598 | |
SoFi Professional Loan Program LLC, Series 2015-A2, | | | | | | | | |
2.420%, 3–25–30 (A) | | | 1,826 | | | | 1,848 | |
| | | | | | | | |
ASSET-BACKED SECURITIES
(Continued) | | Principal | | | Value | |
Tal Advantage V LLC, | | | | | | | | |
3.510%, 2–22–39 (A) | | $ | 701 | | | $ | 689 | |
TCF Auto Receivables Owner Trust 2015-2, Class A3, | | | | | | | | |
2.060%, 4–15–20 (A)(B) | | | 3,665 | | | | 3,693 | |
U.S. Airways, Inc. Class C Pass-Through Certificates, Series 2012-2, | | | | | | | | |
5.450%, 6–3–18 | | | 2,000 | | | | 2,050 | |
U.S. Airways, Inc., Series 2012-2, Class A, | | | | | | | | |
6.750%, 6–3–21 | | | 1,907 | | | | 2,074 | |
United Airlines Pass-Through Certificates, Series 2014-1B, | | | | | | | | |
4.750%, 4–11–22 | | | 1,042 | | | | 1,066 | |
United Airlines Pass-Through Certificates, Series 2014-2B, | | | | | | | | |
4.625%, 9–3–22 | | | 3,698 | | | | 3,754 | |
Virgin Australia 2013-1B Trust, | | | | | | | | |
6.000%, 10–23–20 (A) | | | 1,251 | | | | 1,270 | |
Wheels SPV LLC 2016-1A, Class A3, | | | | | | | | |
1.870%, 5–20–25 (A) | | | 925 | | | | 926 | |
| |
TOTAL ASSET-BACKED SECURITIES – 12.4% | | | $ | 98,393 | |
(Cost: $96,871) | |
| | |
| CORPORATE DEBT SECURITIES | | | | | | |
Consumer Discretionary | |
| |
Automobile Manufacturers – 0.3% | |
General Motors Co., | | | | | | | | |
6.750%, 4–1–46 | | | 2,000 | | | | 2,513 | |
| | | | | | | | |
| | |
Cable & Satellite – 0.7% | | | | | | | | |
DISH DBS Corp., | | | | | | | | |
7.750%, 7–1–26 (A) | | | 3,000 | | | | 3,188 | |
Viacom, Inc., | | | | | | | | |
3.450%, 10–4–26 | | | 2,600 | | | | 2,598 | |
| | | | | | | | |
| | | | | | | 5,786 | |
| | | | | | | | |
| |
Hotels, Resorts & Cruise Lines – 0.4% | |
Host Hotels & Resorts, Inc. and Host Hotels & Resorts L.P., | | | | | | | | |
5.250%, 3–15–22 | | | 3,150 | | | | 3,485 | |
| | | | | | | | |
| |
Housewares & Specialties – 0.5% | |
Newell Rubbermaid, Inc., | | | | | | | | |
5.000%, 11–15–23 (A) | | | 3,518 | | | | 3,746 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 1.9% | | | | 15,530 | |
Consumer Staples | |
| |
Food Distributors – 0.5% | |
Flowers Foods, Inc.: | | | | | | | | |
4.375%, 4–1–22 | | | 1,840 | | | | 1,990 | |
3.500%, 10–1–26 | | | 2,400 | | | | 2,396 | |
| | | | | | | | |
| | | | | | | 4,386 | |
| | | | | | | | |
| | |
Total Consumer Staples – 0.5% | | | | | | | 4,386 | |
| | | | | | |
| 12 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Energy | |
| |
Oil & Gas Drilling – 0.1% | |
Noble Holding International Ltd., | | | | | | | | |
4.000%, 3–16–18 (B) | | $ | 350 | | | $ | 345 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 0.6% | |
Enterprise Products Operating L.P. (GTD by Enterprise Products Partners L.P.), | | | | | | | | |
7.034%, 1–15–68 | | | 4,763 | | | | 5,033 | |
| | | | | | | | |
| |
Oil & Gas Refining & Marketing – 1.5% | |
NuStar Logistics L.P. (GTD by NuStar Energy L.P. and NuStar Pipeline Operating Partnership L.P.): | | | | | | | | |
8.150%, 4–15–18 (B) | | | 5,345 | | | | 5,772 | |
4.800%, 9–1–20 | | | 2,340 | | | | 2,346 | |
6.750%, 2–1–21 | | | 1,011 | | | | 1,089 | |
Tesoro Corp., | | | | | | | | |
4.250%, 10–1–17 | | | 2,535 | | | | 2,586 | |
| | | | | | | | |
| | | | | | | 11,793 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 4.7% | |
Boardwalk Pipeline Partners L.P., | | | | | | | | |
5.200%, 6–1–18 | | | 2,500 | | | | 2,543 | |
Boardwalk Pipelines L.P. (GTD by Boardwalk Pipeline Partners L.P.): | | | | | | | | |
5.750%, 9–15–19 | | | 3,975 | | | | 4,235 | |
3.375%, 2–1–23 | | | 1,731 | | | | 1,643 | |
Buckeye Partners L.P., | | | | | | | | |
5.600%, 10–15–44 | | | 7,481 | | | | 7,765 | |
Gulfstream Natural Gas System LLC, | | | | | | | | |
4.600%, 9–15–25 (A) | | | 1,975 | | | | 2,072 | |
Regency Energy Partners L.P. and Regency Energy Finance Corp.: | | | | | | | | |
6.500%, 7–15–21 | | | 3,600 | | | | 3,725 | |
5.875%, 3–1–22 | | | 3,000 | | | | 3,307 | |
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.), | | | | | | | | |
6.850%, 2–15–40 | | | 1,265 | | | | 1,450 | |
Tennessee Gas Pipeline Co., | | | | | | | | |
8.375%, 6–15–32 | | | 4,000 | | | | 4,994 | |
Tesoro Logistics L.P. and Tesoro Logistics Finance Corp.: | | | | | | | | |
6.125%, 10–15–21 | | | 1,000 | | | | 1,045 | |
6.375%, 5–1–24 | | | 250 | | | | 268 | |
Transcanada Trust, | | | | | | | | |
5.875%, 8–15–76 | | | 4,100 | | | | 4,338 | |
| | | | | | | | |
| | | | | | | 37,385 | |
| | | | | | | | |
| |
Total Energy – 6.9% | | | | 54,556 | |
Financials | |
| |
Consumer Finance – 4.8% | |
Capital One Bank USA N.A., | | | | | | | | |
1.617%, 9–13–19 (B) | | | 2,300 | | | | 2,299 | |
Capital One Financial Corp., | | | | | | | | |
3.750%, 7–28–26 | | | 4,300 | | | | 4,323 | |
Capital One Financial Corp., Series E, | | | | | | | | |
5.550%, 12–29–49 | | | 5,770 | | | | 5,871 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Consumer Finance (Continued) | |
Discover Bank: | | | | | | | | |
8.700%, 11–18–19 | | $ | 458 | | | $ | 528 | |
3.100%, 6–4–20 | | | 4,525 | | | | 4,655 | |
3.450%, 7–27–26 | | | 3,975 | | | | 4,001 | |
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.): | | | | | | | | |
2.400%, 5–9–19 | | | 1,000 | | | | 1,003 | |
3.500%, 7–10–19 | | | 1,645 | | | | 1,694 | |
3.150%, 1–15–20 | | | 1,400 | | | | 1,427 | |
4.375%, 9–25–21 | | | 1,080 | | | | 1,154 | |
5.250%, 3–1–26 | | | 3,600 | | | | 3,942 | |
Synchrony Financial, | | | | | | | | |
2.600%, 1–15–19 | | | 5,850 | | | | 5,919 | |
Union 13 Leasing LLC, | | | | | | | | |
1.870%, 6–28–24 | | | 775 | | | | 779 | |
| | | | | | | | |
| | | | | | | 37,595 | |
| | | | | | | | |
| |
Diversified Banks – 2.6% | |
Bank of America Corp.: | | | | | | | | |
5.875%, 1–5–21 | | | 665 | | | | 763 | |
4.000%, 1–22–25 | | | 3,250 | | | | 3,370 | |
3.950%, 4–21–25 | | | 1,515 | | | | 1,569 | |
Citizens Bank N.A., | | | | | | | | |
2.300%, 12–3–18 | | | 2,500 | | | | 2,529 | |
Comerica, Inc., | | | | | | | | |
4.000%, 7–27–25 | | | 2,150 | | | | 2,254 | |
Compass Bank, | | | | | | | | |
3.875%, 4–10–25 | | | 5,000 | | | | 4,894 | |
Huntington Bancshares, Inc., | | | | | | | | |
3.150%, 3–14–21 | | | 2,925 | | | | 3,032 | |
Huntington National Bank, | | | | | | | | |
2.200%, 11–6–18 | | | 2,000 | | | | 2,025 | |
| | | | | | | | |
| | | | | | | 20,436 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 2.1% | |
Goldman Sachs Group, Inc. (The): | | | | | | | | |
1.755%, 4–25–19 (B) | | | 4,304 | | | | 4,336 | |
5.250%, 7–27–21 | | | 1,000 | | | | 1,129 | |
Morgan Stanley: | | | | | | | | |
5.500%, 7–28–21 | | | 1,090 | | | | 1,243 | |
3.125%, 7–27–26 | | | 1,650 | | | | 1,667 | |
5.450%, 12–29–29 | | | 3,700 | | | | 3,712 | |
Raymond James Financial, Inc., | | | | | | | | |
4.950%, 7–15–46 | | | 4,800 | | | | 4,898 | |
| | | | | | | | |
| | | | | | | 16,985 | |
| | | | | | | | |
| |
Life & Health Insurance – 0.5% | |
Unum Group, | | | | | | | | |
5.750%, 8–15–42 | | | 3,750 | | | | 4,251 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 2.5% | |
Citigroup, Inc.: | | | | | | | | |
4.400%, 6–10–25 | | | 5,000 | | | | 5,297 | |
5.950%, 12–29–49 | | | 4,450 | | | | 4,539 | |
JPMorgan Chase & Co., | | | | | | | | |
5.000%, 12–29–49 | | | 2,600 | | | | 2,568 | |
TIAA Asset Management Finance Co. LLC: | | | | | | | | |
2.950%, 11–1–19 (A) | | | 2,500 | | | | 2,576 | |
4.125%, 11–1–24 (A) | | | 2,125 | | | | 2,241 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Other Diversified Financial Services (Continued) | |
Ulani MSN 37894 LLC, | | | | | | | | |
2.184%, 12-20-24 | | $ | 2,679 | | | $ | 2,722 | |
| | | | | | | | |
| | | | | | | 19,943 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 0.7% | |
Liberty Mutual Group, Inc., | | | | | | | | |
6.500%, 5–1–42 (A) | | | 4,361 | | | | 5,433 | |
| | | | | | | | |
| |
Regional Banks – 0.7% | |
Synovus Financial Corp.: | | | | | | | | |
7.875%, 2–15–19 | | | 3,025 | | | | 3,350 | |
5.750%, 12–15–25 | | | 2,000 | | | | 2,120 | |
| | | | | | | | |
| | | | | | | 5,470 | |
| | | | | | | | |
| |
Specialized Finance – 0.8% | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.: | | | | | | | | |
5.450%, 6–15–23 (A) | | | 3,540 | | | | 3,791 | |
8.350%, 7–15–46 (A) | | | 1,930 | | | | 2,312 | |
| | | | | | | | |
| | | | | | | 6,103 | |
| | | | | | | | |
| | |
Total Financials – 14.7% | | | | | | | 116,216 | |
Health Care | |
| |
Health Care Facilities – 0.3% | |
NYU Hospitals Center, | | | | | | | | |
4.428%, 7–1–42 | | | 2,170 | | | | 2,329 | |
| | | | | | | | |
| |
Health Care Supplies – 1.3% | |
Bio-Rad Laboratories, Inc., | | | | | | | | |
4.875%, 12–15–20 | | | 5,000 | | | | 5,472 | |
Express Scripts Holding Co., | | | | | | | | |
3.000%, 7–15–23 | | | 3,175 | | | | 3,226 | |
Sinai Health System, | | | | | | | | |
3.034%, 1–20–36 | | | 1,770 | | | | 1,849 | |
| | | | | | | | |
| | | | | | | 10,547 | |
| | | | | | | | |
| |
Managed Health Care – 0.8% | |
Aetna, Inc.: | | | | | | | | |
2.800%, 6–15–23 | | | 900 | | | | 919 | |
4.250%, 6–15–36 | | | 2,312 | | | | 2,400 | |
4.375%, 6–15–46 | | | 2,800 | | | | 2,940 | |
| | | | | | | | |
| | | | | | | 6,259 | |
| | | | | | | | |
| |
Pharmaceuticals – 0.7% | |
Teva Pharmaceutical Finance Netherlands III B.V. (GTD by Teva Pharmaceutical Industries Ltd.), | | | | | | | | |
2.800%, 7–21–23 | | | 5,350 | | | | 5,366 | |
| | | | | | | | |
| | |
Total Health Care – 3.1% | | | | | | | 24,501 | |
Industrials | |
| |
Airlines – 0.4% | |
British Airways plc, | | | | | | | | |
5.625%, 6–20–20 (A) | | | 1,298 | | | | 1,366 | |
U.S. Airways Group, Inc., Class A, | | | | | | | | |
6.250%, 4–22–23 | | | 914 | | | | 1,035 | |
U.S. Airways Group, Inc., Class B, | | | | | | | | |
8.500%, 4–22–17 | | | 397 | | | | 412 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 13 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Airlines (Continued) | |
United Air Lines, Inc., | | | | | | | | |
10.400%, 11–1–16 | | $ | 192 | | | $ | 192 | |
| | | | | | | | |
| | | | | | | 3,005 | |
| | | | | | | | |
| |
Industrial Machinery – 0.8% | |
Pentair Finance S.A., | | | | | | | | |
3.625%, 9–15–20 | | | 6,000 | | | | 6,215 | |
| | | | | | | | |
| |
Railroads – 0.9% | |
BNSF Funding Trust I, | | | | | | | | |
6.613%, 12–15–55 | | | 6,280 | | | | 7,246 | |
| | | | | | | | |
| |
Trucking – 0.1% | |
Tagua Leasing LLC, | | | | | | | | |
1.900%, 7–12–24 | | | 892 | | | | 897 | |
| | | | | | | | |
| | |
Total Industrials – 2.2% | | | | | | | 17,363 | |
Information Technology | |
| |
Application Software – 0.7% | |
Block Financial LLC (GTD by H&R Block, Inc.), | | | | | | | | |
4.125%, 10–1–20 | | | 5,000 | | | | 5,241 | |
| | | | | | | | |
| |
Systems Software – 0.5% | |
Microsoft Corp., | | | | | | | | |
3.950%, 8–8–56 | | | 4,175 | | | | 4,229 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 0.3% | |
Hewlett Packard Enterprise Co., | | | | | | | | |
2.850%, 10–5–18 (A) | | | 2,300 | | | | 2,343 | |
| | | | | | | | |
| |
Total Information Technology – 1.5% | | | | 11,813 | |
Materials | |
| |
Aluminum – 0.1% | |
Kaiser Aluminum Corp., | | | | | | | | |
5.875%, 5–15–24 | | | 1,000 | | | | 1,045 | |
| | | | | | | | |
| |
Commodity Chemicals – 0.3% | |
Westlake Chemical Corp., | | | | | | | | |
5.000%, 8–15–46 (A) | | | 1,925 | | | | 1,948 | |
| | | | | | | | |
| | |
Total Materials – 0.4% | | | | | | | 2,993 | |
Real Estate | |
| |
Retail REITs – 0.4% | |
Retail Properties of America, Inc., | | | | | | | | |
4.000%, 3–15–25 | | | 2,950 | | | | 2,936 | |
| | | | | | | | |
| |
Specialized REITs – 1.5% | |
American Tower Trust I, | | | | | | | | |
1.551%, 3–15–18 (A) | | | 3,070 | | | | 3,063 | |
Crown Castle International Corp., | | | | | | | | |
6.113%, 1–15–20 (A) | | | 5,215 | | | | 5,779 | |
Hospitality Properties Trust, | | | | | | | | |
4.650%, 3–15–24 | | | 1,200 | | | | 1,234 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Specialized REITs (Continued) | |
Ventas Realty L.P. and Ventas Capital Corp., | | | | | | | | |
2.700%, 4–1–20 | | $ | 1,867 | | | $ | 1,913 | |
| | | | | | | | |
| | | | | | | 11,989 | |
| | | | | | | | |
| | |
Total Real Estate – 1.9% | | | | | | | 14,925 | |
Telecommunication Services | |
| |
Integrated Telecommunication Services – 0.8% | |
AT&T, Inc., | | | | | | | | |
4.500%, 3–9–48 (A) | | | 1,930 | | | | 1,941 | |
Frontier Communications Corp.: | | | | | | | | |
8.875%, 9–15–20 | | | 3,105 | | | | 3,350 | |
6.250%, 9–15–21 | | | 750 | | | | 721 | |
| | | | | | | | |
| | | | | | | 6,012 | |
| | | | | | | | |
| |
Wireless Telecommunication Service – 0.2% | |
T-Mobile USA, Inc.: | | | | | | | | |
6.625%, 4–1–23 | | | 500 | | | | 537 | |
6.000%, 4–15–24 | | | 1,250 | | | | 1,337 | |
| | | | | | | | |
| | | | | | | 1,874 | |
| | | | | | | | |
| |
Total Telecommunication Services – 1.0% | | | | 7,886 | |
Utilities | |
| |
Electric Utilities – 5.1% | |
AES Corp. (The), | | | | | | | | |
6.000%, 5–15–26 | | | 3,000 | | | | 3,165 | |
Cleco Corporate Holdings LLC: | | | | | | | | |
3.743%, 5–1–26 (A) | | | 2,200 | | | | 2,292 | |
4.973%, 5–1–46 (A) | | | 3,875 | | | | 4,237 | |
Duke Energy Corp.: | | | | | | | | |
2.650%, 9–1–26 | | | 1,825 | | | | 1,793 | |
3.750%, 9–1–46 | | | 3,300 | | | | 3,209 | |
El Paso Electric Co., | | | | | | | | |
5.000%, 12–1–44 | | | 2,225 | | | | 2,628 | |
Entergy Corp., | | | | | | | | |
4.000%, 7–15–22 | | | 2,400 | | | | 2,604 | |
Exelon Corp., | | | | | | | | |
5.100%, 6–15–45 | | | 2,550 | | | | 2,966 | |
Exelon Generation Co. LLC, | | | | | | | | |
2.950%, 1–15–20 | | | 4,535 | | | | 4,674 | |
Indianapolis Power & Light Co., | | | | | | | | |
4.700%, 9–1–45 (A) | | | 3,750 | | | | 4,276 | |
IPALCO Enterprises, Inc., | | | | | | | | |
3.450%, 7–15–20 | | | 2,800 | | | | 2,870 | |
Massachusetts Electric Co., | | | | | | | | |
4.004%, 8–15–46 (A) | | | 5,600 | | | | 5,839 | |
| | | | | | | | |
| | | | | | | 40,553 | |
| | | | | | | | |
Gas Utilities – 1.2% | |
AGL Capital Corp., | | | | | | | | |
3.875%, 11–15–25 | | | 3,250 | | | | 3,494 | |
Brooklyn Union Gas Co., | | | | | | | | |
4.504%, 3–10–46 (A) | | | 2,875 | | | | 3,255 | |
Southern Co. Gas Capital Corp., | | | | | | | | |
3.950%, 10–1–46 | | | 2,800 | | | | 2,838 | |
| | | | | | | | |
| | | | | | | 9,587 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Multi-Utilities – 0.6% | |
Dominion Resources, Inc.: | | | | | | | | |
2.962%, 7–1–19 (B) | | $ | 1,300 | | | $ | 1,334 | |
5.750%, 10–1–54 | | | 3,300 | | | | 3,415 | |
| | | | | | | | |
| | | | | | | 4,749 | |
| | | | | | | | |
| | |
Total Utilities — 6.9% | | | | | | | 54,889 | |
| | |
TOTAL CORPORATE DEBT SECURITIES – 41.0% | | | | | | $ | 325,058 | |
(Cost: $313,261) | | | | | | | | |
| | |
| MORTGAGE-BACKED SECURITIES | | | | | | |
Commercial Mortgage-Backed Securities – 4.1% | |
7 WTC Depositor LLC Trust 2012-WTC Commercial Mortgage Pass-Through Certificates, Series 2012-7WTC, | | | | | | | | |
4.082%, 3–13–31 (A) | | | 984 | | | | 993 | |
BAMLL Commercial Mortgage Securities Trust 2014-520M, Class A, | | | | | | | | |
4.325%, 8–15–46 (A)(B) | | | 4,130 | | | | 4,752 | |
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2013-SMPD, | | | | | | | | |
3.008%, 1–12–30 (A)(B) | | | 1,240 | | | | 1,235 | |
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2015-GC35, Class A4, | | | | | | | | |
3.209%, 5–10–49 | | | 2,585 | | | | 2,724 | |
Citigroup Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-P5, | | | | | | | | |
3.396%, 10–10–49 | | | 4,340 | | | | 4,470 | |
Credit Suisse Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2014-ICE, Class B, | | | | | | | | |
3.304%, 9–15–37 (A) | | | 1,500 | | | | 1,567 | |
GS Mortgage Securities Corp. Trust, Commercial Mortgage Pass-Through Certificates, Series 2012-BWTR, | | | | | | | | |
3.440%, 11–5–34 (A)(B) | | | 1,000 | | | | 1,019 | |
Helios Leasing I LLC, | | | | | | | | |
2.018%, 5–29–24 | | | 959 | | | | 968 | |
Hometown Commercial Capital LLC, Hometown Commercial Mortgage Pass-Through Notes 2006-1, | | | | | | | | |
5.506%, 11–11–38 (A) | | | 157 | | | | 131 | |
Hometown Commercial Trust, Commercial Mortgage-Backed Notes, Series 2007-1, | | | | | | | | |
6.057%, 6–11–39 (A) | | | 76 | | | | 54 | |
| | | | | | |
| 14 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MORTGAGE-BACKED SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Mortgage-Backed Securities (Continued) | |
JPMorgan Chase Commercial Mortgage Securities Trust 2009-IWST, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST: | | | | | | | | |
7.151%, 12–5–27 (A) | | $ | 1,425 | | | $ | 1,616 | |
7.694%, 12–5–27 (A)(B) | | | 2,600 | | | | 2,949 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2009-IWST, | | | | | | | | |
2.151%, 12–5–27 (A)(B) | | | 5,684 | | | | 309 | |
JPMorgan Chase Commercial Mortgage Securities Trust, Commercial Mortgage Pass-Through Certificates, Series 2016-JP3, | | | | | | | | |
3.144%, 8–15–49 | | | 1,031 | | | | 1,057 | |
Mellon Residential Funding, | | | | | | | | |
6.750%, 6–25–28 | | | 1 | | | | 1 | |
Multi Security Asset Trust L.P., Commercial Mortgage-Backed Securities Pass-Through Certificates, Series 2005-RR4, | | | | | | | | |
5.880%, 11–28–35 (A)(B) | | | 1,280 | | | | 1,250 | |
Vornado DP LLC Trust 2010, Commercial Mortgage Pass-Through Certificates, Series 2010-VNO, | | | | | | | | |
5.280%, 9–13–28 (A) | | | 1,200 | | | | 1,310 | |
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class AS, | | | | | | | | |
2.814%, 8–15–49 | | | 4,600 | | | | 4,678 | |
Wells Fargo Commerical Mortgage Trust, Series 2012-LC5 A3, | | | | | | | | |
3.148%, 5–15–48 | | | 700 | | | | 734 | |
WFRBS Commercial Mortgage Trust 2011-C5, | | | | | | | | |
3.667%, 11–15–44 (B) | | | 435 | | | | 471 | |
| | | | | | | | |
| | | | | | | 32,288 | |
| | | | | | | | |
| |
Other Mortgage-Backed Securities – 1.8% | |
Banc of America Mortgage Trust 2004-03, | | | | | | | | |
4.875%, 4–25–19 | | | 21 | | | | 20 | |
Bear Stearns Mortgage Securities, Inc., | | | | | | | | |
8.000%, 11–25–29 | | | 109 | | | | 85 | |
C-Bass 2006-MH1 Trust, | | | | | | | | |
5.276%, 10–25–36 (A)(B) | | | 2,508 | | | | 2,594 | |
CCG Receivables Trust, Series 2015-1, Class A3, | | | | | | | | |
1.920%, 1–17–23 (A)(B) | | | 3,000 | | | | 3,020 | |
CHL Mortgage Pass-Through Trust 2004-J4, | | | | | | | | |
5.250%, 5–25–34 | | | 74 | | | | 72 | |
Collateralized Mortgage Obligation Trust, | | | | | | | | |
5.000%, 7–1–18 | | | 2 | | | | 2 | |
| | | | | | | | |
MORTGAGE-BACKED SECURITIES
(Continued) | | Principal | | | Value | |
Other Mortgage-Backed Securities (Continued) | |
COMM 2012-9W57 Mortgage Trust, Class A, | | | | | | | | |
2.365%, 2–10–29 (A) | | $ | 2,250 | | | $ | 2,255 | |
Connecticut Avenue Securities, Series 2013-C01, | | | | | | | | |
1.475%, 5–25–24 (B) | | | 1,305 | | | | 1,306 | |
CountryPlace Manufactured Housing Contract Trust 2005-1: | | | | | | | | |
4.800%, 12–15–35 (A)(B) | | | 20 | | | | 20 | |
5.200%, 12–15–35 (A)(B) | | | 300 | | | | 312 | |
CWHEQ Home Equity Loan Trust, Series 2007-S2, | | | | | | | | |
5.934%, 5–25–37 (B) | | | 273 | | | | 263 | |
GMACM Home Equity Loan Trust 2007-HE1, | | | | | | | | |
5.952%, 8–25–37 (B) | | | 570 | | | | 546 | |
Green Tree Financial Corp., Manufactured Housing Contract, Pass-Through Certificates, Series 1993-3A7, | | | | | | | | |
6.400%, 10–15–18 | | | 6 | | | | 5 | |
JPMorgan Mortgage Trust 2004-A3, | | | | | | | | |
3.212%, 7–25–34 (B) | | | 151 | | | | 152 | |
Merrill Lynch Mortgage Investors, Inc., Mortgage Pass-Through Certificates, Series 1997-C2, | | | | | | | | |
6.250%, 12–10–29 | | | 326 | | | | 326 | |
Morgan Stanley Capital I Trust 2012-STAR, Class A-2, | | | | | | | | |
3.201%, 8–5–34 (A) | | | 1,350 | | | | 1,408 | |
Morgan Stanley Capital I Trust 2012-STAR, Class B, | | | | | | | | |
3.451%, 8–5–34 (A) | | | 930 | | | | 965 | |
Origen Manufactured Housing Contract Trust 2005-A, | | | | | | | | |
5.860%, 6–15–36 (B) | | | 43 | | | | 45 | |
Origen Manufactured Housing Contract Trust 2005-B, | | | | | | | | |
5.910%, 1–15–37 | | | 549 | | | | 566 | |
Prudential Home Mortgage Securities: | | | | | | | | |
6.647%, 4–28–24 (A)(B) | | | — | * | | | — | * |
7.850%, 9–28–24 (A)(B) | | | 1 | | | | 1 | |
RASC, Series 2003-KS10 Trust, | | | | | | | | |
6.410%, 12–25–33 | | | 158 | | | | 73 | |
Salomon Brothers Mortgage Securities VII, Inc., Mortgage Pass-Through Certificates, Series 1997-HUD1, | | | | | | | | |
6.423%, 12–25–30 (B) | | | 742 | | | | 499 | |
Structured Asset Mortgage Investments, Inc., | | | | | | | | |
1.558%, 5–2–30 (B) | | | 6 | | | | 1 | |
| | | | | | | | |
| | | | | | | 14,536 | |
| | | | | | | | |
| |
TOTAL MORTGAGE-BACKED SECURITIES – 5.9% | | | $ | 46,824 | |
(Cost: $47,313) | | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS – TAXABLE | | Principal | | | Value | |
Alabama – 0.1% | |
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013T, | | | | | | | | |
3.435%, 12–15–25 | | $ | 470 | | | $ | 507 | |
| | | | | | | | |
| |
Florida – 0.1% | |
Sarasota Cnty, FL, Cap Impvt Rev Bonds, Ser 2010A, | | | | | | | | |
7.016%, 10–1–40 | | | 520 | | | | 614 | |
| | | | | | | | |
| |
New York – 0.9% | |
Port Auth of NY & NJ Consolidated Bonds, 168th Ser, | | | | | | | | |
4.926%, 10–1–51 | | | 3,190 | | | | 3,992 | |
Port Auth of NY & NJ Consolidated Bonds, Ser 174, | | | | | | | | |
4.458%, 10–1–62 | | | 3,000 | | | | 3,477 | |
| | | | | | | | |
| | | | | | | 7,469 | |
| | | | | | | | |
| |
Washington – 0.2% | |
Pub Util Dist No. 1, Douglas Cnty, WA, Wells Hydroelec Bonds, Ser 2010A, | | | | | | | | |
5.450%, 9–1–40 | | | 1,205 | | | | 1,481 | |
| | | | | | | | |
| | |
TOTAL MUNICIPAL BONDS – TAXABLE – 1.3% | | | | | | $ | 10,071 | |
(Cost: $8,272) | | | | | | | | |
| |
UNITED STATES GOVERNMENT AGENCY
OBLIGATIONS | | | | |
Mortgage-Backed Obligations – 24.9% | |
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | | | | | | | | |
2.725%, 9–25–24 (B) | | | 5,500 | | | | 5,671 | |
3.325%, 5–25–28 (B) | | | 2,500 | | | | 2,583 | |
1.875%, 1–25–29 (B) | | | 742 | | | | 745 | |
5.300%, 1–15–33 | | | 84 | | | | 94 | |
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | | | | | | | | |
5.500%, 12–1–17 | | | 18 | | | | 18 | |
5.500%, 9–1–19 | | | 50 | | | | 52 | |
5.000%, 4–1–23 | | | 234 | | | | 250 | |
3.500%, 8–1–26 | | | 630 | | | | 669 | |
2.500%, 3–1–28 | | | 629 | | | | 654 | |
2.500%, 4–1–28 | | | 604 | | | | 627 | |
5.000%, 5–1–29 | | | 66 | | | | 73 | |
3.500%, 5–1–32 | | | 1,283 | | | | 1,371 | |
6.500%, 9–1–32 | | | 42 | | | | 50 | |
6.000%, 11–1–33 | | | 49 | | | | 56 | |
5.500%, 5–1–34 | | | 465 | | | | 536 | |
6.500%, 5–1–34 | | | 120 | | | | 145 | |
5.500%, 6–1–34 | | | 139 | | | | 158 | |
5.000%, 9–1–34 | | | 2 | | | | 2 | |
5.500%, 9–1–34 | | | 4 | | | | 5 | |
5.500%, 10–1–34 | | | 193 | | | | 218 | |
5.500%, 7–1–35 | | | 61 | | | | 69 | |
5.000%, 8–1–35 | | | 62 | | | | 69 | |
5.500%, 10–1–35 | | | 65 | | | | 75 | |
5.000%, 11–1–35 | | | 169 | | | | 188 | |
5.000%, 12–1–35 | | | 38 | | | | 42 | |
6.500%, 7–1–36 | | | 59 | | | | 68 | |
7.000%, 12–1–37 | | | 56 | | | | 61 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 15 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Mortgage-Backed Obligations (Continued) | |
5.500%, 2–1–39 | | $ | 301 | | | $ | 343 | |
5.000%, 11–1–39 | | | 149 | | | | 168 | |
5.000%, 1–1–40 | | | 948 | | | | 1,070 | |
5.000%, 3–1–40 | | | 1,427 | | | | 1,614 | |
5.000%, 4–1–40 | | | 286 | | | | 319 | |
5.000%, 8–1–40 | | | 261 | | | | 289 | |
4.000%, 10–1–40 | | | 806 | | | | 864 | |
4.000%, 11–1–40 | | | 849 | | | | 937 | |
4.500%, 1–1–41 | | | 762 | | | | 837 | |
4.000%, 2–1–41 | | | 1,521 | | | | 1,655 | |
4.000%, 3–1–41 | | | 484 | | | | 530 | |
4.500%, 3–1–41 | | | 392 | | | | 433 | |
4.500%, 4–1–41 | | | 1,065 | | | | 1,184 | |
4.000%, 6–1–41 | | | 529 | | | | 580 | |
4.000%, 8–1–41 | | | 344 | | | | 373 | |
4.000%, 11–1–41 | | | 3,814 | | | | 4,113 | |
3.500%, 3–1–42 | | | 1,911 | | | | 2,041 | |
3.000%, 8–1–42 | | | 1,270 | | | | 1,332 | |
3.500%, 8–1–42 | | | 3,314 | | | | 3,533 | |
3.000%, 1–1–43 | | | 1,551 | | | | 1,628 | |
3.000%, 2–1–43 | | | 1,889 | | | | 1,989 | |
3.500%, 7–1–44 | | | 2,616 | | | | 2,760 | |
3.500%, 12–1–44 | | | 5,190 | | | | 5,475 | |
3.500%, 5–25–45 | | | 6,712 | | | | 6,917 | |
3.000%, 7–1–45 | | | 9,172 | | | | 9,542 | |
3.500%, 3–1–46 | | | 2,757 | | | | 2,908 | |
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | | | | | | | | |
6.000%, 9–1–17 | | | 3 | | | | 3 | |
6.000%, 1–1–18 | | | 16 | | | | 16 | |
5.500%, 2–1–18 | | | 13 | | | | 14 | |
5.500%, 3–1–18 | | | 3 | | | | 3 | |
5.000%, 5–1–18 | | | 50 | | | | 51 | |
5.000%, 6–1–18 | | | 11 | | | | 11 | |
5.000%, 7–1–18 | | | 6 | | | | 6 | |
5.000%, 10–1–18 | | | 39 | | | | 40 | |
5.500%, 9–1–19 | | | 17 | | | | 18 | |
3.000%, 9–1–22 | | | 757 | | | | 796 | |
5.000%, 7–1–23 | | | 127 | | | | 141 | |
6.000%, 8–1–23 | | | 131 | | | | 145 | |
5.500%, 2–1–24 | | | 54 | | | | 61 | |
4.500%, 4–1–25 | | | 198 | | | | 210 | |
3.500%, 11–1–25 | | | 400 | | | | 426 | |
3.500%, 6–1–26 | | | 618 | | | | 654 | |
3.000%, 10–1–27 | | | 4,755 | | | | 4,992 | |
2.500%, 11–1–27 | | | 1,203 | | | | 1,241 | |
2.500%, 10–1–28 | | | 705 | | | | 730 | |
6.000%, 8–1–29 | | | 46 | | | | 53 | |
7.500%, 5–1–31 | | | 18 | | | | 20 | |
7.000%, 9–1–31 | | | 7 | | | | 9 | |
7.000%, 11–1–31 | | | 96 | | | | 112 | |
6.500%, 12–1–31 | | | 9 | | | | 11 | |
6.500%, 2–1–32 | | | 91 | | | | 105 | |
7.000%, 2–1–32 | | | 72 | | | | 86 | |
7.000%, 3–1–32 | | | 107 | | | | 129 | |
6.500%, 4–1–32 | | | 18 | | | | 22 | |
6.500%, 5–1–32 | | | 36 | | | | 42 | |
6.500%, 7–1–32 | | | 11 | | | | 13 | |
6.500%, 8–1–32 | | | 18 | | | | 22 | |
6.000%, 9–1–32 | | | 21 | | | | 25 | |
6.500%, 9–1–32 | | | 42 | | | | 48 | |
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Mortgage-Backed Obligations (Continued) | |
6.000%, 10–1–32 | | $ | 343 | | | $ | 401 | |
6.500%, 10–1–32 | | | 44 | | | | 52 | |
6.000%, 11–1–32 | | | 251 | | | | 295 | |
3.500%, 12–1–32 | | | 1,877 | | | | 2,002 | |
6.000%, 3–1–33 | | | 445 | | | | 522 | |
5.500%, 4–1–33 | | | 304 | | | | 350 | |
6.000%, 4–1–33 | | | 16 | | | | 19 | |
5.500%, 5–1–33 | | | 32 | | | | 37 | |
6.000%, 6–1–33 | | | 74 | | | | 85 | |
6.500%, 8–1–33 | | | 16 | | | | 19 | |
6.000%, 10–1–33 | | | 40 | | | | 46 | |
6.000%, 12–1–33 | | | 84 | | | | 98 | |
5.500%, 1–1–34 | | | 150 | | | | 170 | |
6.000%, 1–1–34 | | | 47 | | | | 54 | |
5.000%, 3–1–34 | | | 293 | | | | 330 | |
5.500%, 3–1–34 | | | 29 | | | | 34 | |
5.500%, 4–1–34 | | | 29 | | | | 33 | |
5.000%, 5–1–34 | | | 17 | | | | 19 | |
6.000%, 8–1–34 | | | 75 | | | | 87 | |
5.500%, 9–1–34 | | | 238 | | | | 273 | |
6.000%, 9–1–34 | | | 92 | | | | 106 | |
6.500%, 9–1–34 | | | 193 | | | | 222 | |
5.500%, 11–1–34 | | | 308 | | | | 350 | |
6.000%, 11–1–34 | | | 133 | | | | 154 | |
6.500%, 11–1–34 | | | 9 | | | | 11 | |
5.000%, 12–1–34 | | | 433 | | | | 486 | |
5.500%, 1–1–35 | | | 301 | | | | 344 | |
5.500%, 2–1–35 | | | 701 | | | | 805 | |
6.500%, 3–1–35 | | | 170 | | | | 204 | |
5.000%, 4–1–35 | | | 81 | | | | 91 | |
5.500%, 4–1–35 | | | 167 | | | | 190 | |
4.500%, 5–1–35 | | | 242 | | | | 266 | |
5.500%, 6–1–35 | | | 8 | | | | 8 | |
4.500%, 7–1–35 | | | 237 | | | | 260 | |
5.000%, 7–1–35 | | | 583 | | | | 653 | |
5.500%, 7–1–35 | | | 74 | | | | 84 | |
5.500%, 8–1–35 | | | 9 | | | | 10 | |
5.500%, 10–1–35 | | | 319 | | | | 369 | |
5.500%, 11–1–35 | | | 173 | | | | 197 | |
5.500%, 12–1–35 | | | 186 | | | | 211 | |
5.000%, 2–1–36 | | | 45 | | | | 50 | |
5.500%, 2–1–36 | | | 91 | | | | 97 | |
6.500%, 2–1–36 | | | 39 | | | | 45 | |
5.500%, 9–1–36 | | | 214 | | | | 243 | |
5.500%, 11–1–36 | | | 85 | | | | 97 | |
6.000%, 11–1–36 | | | 60 | | | | 69 | |
6.000%, 1–1–37 | | | 43 | | | | 50 | |
6.000%, 5–1–37 | | | 113 | | | | 133 | |
5.500%, 6–1–37 | | | 59 | | | | 68 | |
6.000%, 8–1–37 | | | 57 | | | | 66 | |
6.000%, 9–1–37 | | | 70 | | | | 82 | |
7.000%, 10–1–37 | | | 17 | | | | 18 | |
5.500%, 3–1–38 | | | 208 | | | | 242 | |
5.000%, 4–1–38 | | | 280 | | | | 318 | |
5.500%, 5–1–38 | | | 59 | | | | 67 | |
6.000%, 10–1–38 | | | 192 | | | | 222 | |
6.000%, 12–1–38 | | | 119 | | | | 138 | |
4.500%, 6–1–39 | | | 169 | | | | 188 | |
5.000%, 12–1–39 | | | 382 | | | | 433 | |
5.500%, 12–1–39 | | | 251 | | | | 287 | |
5.000%, 3–1–40 | | | 899 | | | | 1,014 | |
6.000%, 6–1–40 | | | 113 | | | | 129 | |
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Mortgage-Backed Obligations (Continued) | |
4.500%, 10–1–40 | | $ | 766 | | | $ | 843 | |
4.000%, 12–1–40 | | | 1,119 | | | | 1,206 | |
3.500%, 4–1–41 | | | 1,959 | | | | 2,091 | |
4.000%, 4–1–41 | | | 1,272 | | | | 1,387 | |
4.500%, 4–1–41 | | | 1,963 | | | | 2,175 | |
5.000%, 4–1–41 | | | 234 | | | | 266 | |
4.500%, 7–1–41 | | | 1,037 | | | | 1,139 | |
4.000%, 8–1–41 | | | 836 | | | | 901 | |
4.000%, 9–1–41 | | | 1,343 | | | | 1,461 | |
3.500%, 10–1–41 TBA | | | 1,285 | | | | 1,356 | |
4.000%, 10–1–41 TBA | | | 5,467 | | | | 5,893 | |
3.500%, 11–1–41 | | | 3,286 | | | | 3,510 | |
3.500%, 1–1–42 | | | 4,122 | | | | 4,370 | |
3.000%, 3–1–42 | | | 1,214 | | | | 1,264 | |
3.500%, 4–1–42 | | | 5,973 | | | | 6,325 | |
3.500%, 8–1–42 | | | 1,981 | | | | 2,114 | |
3.000%, 9–1–42 | | | 2,090 | | | | 2,186 | |
3.000%, 10–1–42 | | | 3,580 | | | | 3,722 | |
3.500%, 1–1–43 | | | 1,084 | | | | 1,148 | |
3.500%, 2–1–43 | | | 1,435 | | | | 1,545 | |
3.500%, 3–1–43 | | | 2,015 | | | | 2,166 | |
3.000%, 5–1–43 | | | 7,215 | | | | 7,524 | |
4.000%, 1–1–44 | | | 1,233 | | | | 1,360 | |
4.000%, 4–1–44 | | | 3,453 | | | | 3,710 | |
3.500%, 5–1–45 | | | 2,165 | | | | 2,288 | |
3.500%, 6–1–45 | | | 2,096 | | | | 2,230 | |
3.500%, 7–1–45 | | | 1,601 | | | | 1,691 | |
3.500%, 8–1–45 | | | 2,273 | | | | 2,409 | |
3.500%, 9–1–45 | | | 1,386 | | | | 1,467 | |
3.000%, 12–1–45 | | | 1,440 | | | | 1,498 | |
3.000%, 1–1–46 | | | 3,844 | | | | 4,001 | |
Government National Mortgage Association Agency REMIC/CMO: | | | | | | | | |
0.643%, 7–16–40 (B)(C) | | | 121 | | | | — | * |
0.000%, 3–16–42 (B)(C) | | | 616 | | | | — | * |
0.009%, 6–17–45 (B)(C) | | | 398 | | | | — | * |
Government National Mortgage Association Fixed Rate Pass-Through Certificates: | | | | | | | | |
6.250%, 7–15–24 | | | 56 | | | | 62 | |
4.000%, 8–20–31 | | | 693 | | | | 749 | |
5.000%, 7–15–33 | | | 175 | | | | 197 | |
5.000%, 7–15–34 | | | 123 | | | | 138 | |
5.500%, 12–15–34 | | | 159 | | | | 182 | |
5.000%, 1–15–35 | | | 170 | | | | 191 | |
3.250%, 11–20–35 | | | 667 | | | | 708 | |
5.000%, 12–15–35 | | | 288 | | | | 324 | |
4.000%, 6–20–36 | | | 1,071 | | | | 1,158 | |
5.500%, 7–15–38 | | | 166 | | | | 191 | |
5.500%, 10–15–38 | | | 201 | | | | 231 | |
5.500%, 2–15–39 | | | 58 | | | | 66 | |
5.000%, 12–15–39 | | | 145 | | | | 165 | |
5.000%, 1–15–40 | | | 934 | | | | 1,045 | |
4.500%, 6–15–40 | | | 480 | | | | 540 | |
5.000%, 7–15–40 | | | 227 | | | | 255 | |
4.000%, 12–20–40 | | | 570 | | | | 635 | |
4.000%, 1–15–41 | | | 745 | | | | 804 | |
4.000%, 10–15–41 | | | 456 | | | | 493 | |
3.500%, 10–20–43 | | | 1,881 | | | | 2,002 | |
3.000%, 10–1–44 | | | 365 | | | | 382 | |
4.000%, 12–20–44 | | | 742 | | | | 796 | |
3.500%, 2–20–45 | | | 3,318 | | | | 3,525 | |
| | | | | | |
| 16 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Mortgage-Backed Obligations (Continued) | |
3.000%, 3–15–45 | | $ | 3,622 | | | $ | 3,798 | |
3.000%, 3–20–45 | | | 2,061 | | | | 2,163 | |
3.500%, 3–20–45 | | | 2,218 | | | | 2,357 | |
3.500%, 4–20–45 | | | 5,004 | | | | 5,317 | |
3.500%, 4–20–46 | | | 1,489 | | | | 1,583 | |
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 1, | | | | | | | | |
7.242%, 2–15–25 (B) | | | 64 | | | | 72 | |
U.S. Department of Veterans Affairs, Guaranteed REMIC Pass-Through Certificates, Vendee Mortgage Trust 1995-1, Class 2, | | | | | | | | |
7.793%, 2–15–25 | | | 17 | | | | 19 | |
| | | | | | | | |
| | | | | | | 197,635 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 24.9% | | | $ | 197,635 | |
(Cost: $192,148) | | | | | | | | |
| | |
UNITED STATES GOVERNMENT
OBLIGATIONS | | | | | | |
Treasury Obligations – 10.3% | |
U.S. Treasury Bonds: | | | | | | | | |
5.375%, 2–15–31 (D) | | | 4,940 | | | | 7,215 | |
2.500%, 5–15–46 | | | 14,407 | | | | 14,960 | |
| | | | | | | | |
UNITED STATES GOVERNMENT
OBLIGATIONS (Continued) | | Principal | | | Value | |
Treasury Obligations (Continued) | |
U.S. Treasury Notes: | | | | | | | | |
0.875%, 5–15–19 | | $ | 6,075 | | | $ | 6,078 | |
0.750%, 7–15–19 | | | 1,410 | | | | 1,405 | |
0.875%, 9–15–19 | | | 400 | | | | 400 | |
1.125%, 8–31–21 | | | 21,016 | | | | 20,996 | |
1.375%, 8–31–23 | | | 25,540 | | | | 25,469 | |
1.500%, 8–15–26 | | | 4,750 | | | | 4,707 | |
| | | | | | | | |
| | | | | | | 81,230 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 10.3% | | | $ | 81,230 | |
(Cost: $79,493) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (E) – 4.5% | |
BorgWarner, Inc., | | | | | | | | |
0.700%, 10–6–16 | | | 5,000 | | | | 4,999 | |
Campbell Soup Co., | | | | | | | | |
0.590%, 10–3–16 | | | 8,000 | | | | 8,000 | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | | 9,800 | | | | 9,799 | |
John Deere Canada ULC (GTD by Deere & Co.), | | | | | | | | |
0.450%, 11–7–16 | | | 5,000 | | | | 4,998 | |
Virginia Electric and Power Co., | | | | | | | | |
0.690%, 10–19–16 | | | 5,000 | | | | 4,998 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Paper (E) (Continued) | |
Wisconsin Electric Power Co., | | | | | | | | |
0.490%, 10–4–16 | | $ | 2,444 | | | $ | 2,444 | |
| | | | | | | | |
| | | | | | | 35,238 | |
| | | | | | | | |
| |
Master Note – 0.3% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (F) | | | 2,634 | | | | 2,634 | |
| | | | | | | | |
| |
Municipal Obligations – 0.6% | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.800%, 10–7–16 (F) | | | 5,000 | | | | 5,000 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 5.4% | | | $ | 42,872 | |
(Cost: $42,873) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 102.3% | | | $ | 810,959 | |
(Cost: $788,655) | | | | | | | | |
| | |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.3)% | | | | | | | (18,457 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 792,502 | |
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, 2016 the total value of these securities amounted to $145,221 or 18.3% of net assets. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (C) | Interest-only security. Amount shown as principal represents notional amount for computation of interest. |
| (D) | All or a portion of securities with an aggregate value of $409 have been pledged as collateral on open futures contracts. |
| (E) | Rate shown is the yield to maturity at September 30, 2016. |
| (F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):
| | | | | | | | | | | | | | | | |
| Description | | Type | | Expiration Date | | Number of
Contracts | | | Value | | | Unrealized
Appreciation
(Depreciation) | |
| U.S. 10-Year Treasury Note | | Short | | 12–30–16 | | | 240 | | | $ | (31,470) | | | $ | (171 | ) |
| U.S. 5-Year Treasury Note | | Long | | 1–5–17 | | | 459 | | | | 55,776 | | | | 267 | |
| | | | | | | | | | | | |
| | | | | | | | | | $ | 24,306 | | | $ | 96 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 17 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 7,331 | | | $ | 1,545 | | | $ | — | |
Asset-Backed Securities | | | — | | | | 97,728 | | | | 665 | |
Corporate Debt Securities | | | — | | | | 325,058 | | | | — | |
Mortgage-Backed Securities | | | — | | | | 46,824 | | | | — | * |
Municipal Bonds | | | — | | | | 10,071 | | | | — | |
United States Government Agency Obligations | | | — | | | | 197,635 | | | | — | |
United States Government Obligations | | | — | | | | 81,230 | | | | — | |
Short-Term Securities | | | — | | | | 42,872 | | | | — | |
Total | | $ | 7,331 | | | $ | 802,963 | | | $ | 665 | |
Futures Contracts | | $ | 267 | | | $ | — | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Futures Contracts | | $ | 171 | | | $ | — | | | $ | — | |
During the period ended September 30, 2016, securities totaling $1 were transferred from Level 3 to Level 2 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 3 represent the values as of the beginning of the reporting period. 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.
| | | | | | |
| 18 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY CORE EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.4% | |
Information Technology | | | 24.0% | |
Consumer Discretionary | | | 15.5% | |
Consumer Staples | | | 13.1% | |
Health Care | | | 12.0% | |
Energy | | | 11.2% | |
Industrials | | | 8.9% | |
Financials | | | 6.7% | |
Real Estate | | | 4.0% | |
Materials | | | 2.4% | |
Telecommunication Services | | | 1.6% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.6% | |
Lipper Rankings
| | | | | | |
Category: Lipper Large-Cap Core
Funds | | Rank | | Percentile | |
1 Year | | 623/854 | | | 73 | |
3 Year | | 633/769 | | | 83 | |
5 Year | | 454/684 | | | 67 | |
10 Year | | 95/535 | | | 18 | |
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 |
Philip Morris International, Inc. | | Consumer Staples | | Tobacco |
Microsoft Corp. | | Information Technology | | Systems Software |
Halliburton Co. | | Energy | | Oil & Gas Equipment & Services |
NXP Semiconductors N.V. | | Information Technology | | Semiconductors |
Union Pacific Corp. | | Industrials | | Railroads |
Kraft Foods Group, Inc. | | Consumer Staples | | Packaged Foods & Meats |
Cimarex Energy Co. | | Energy | | Oil & Gas Exploration & Production |
Shire Pharmaceuticals Group plc ADR | | Health Care | | Biotechnology |
Adobe Systems, Inc. | | Information Technology | | Application Software |
American Tower Corp., Class A | | Real Estate | | Specialized REITs |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 19 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Auto Parts & Equipment – 3.5% | |
Johnson Controls, Inc. | | | 431 | | | $ | 20,071 | |
Magna International, Inc. | | | 379 | | | | 16,278 | |
| | | | | | | | |
| | | | | | | 36,349 | |
| | | | | | | | |
| |
Broadcasting – 1.2% | |
CBS Corp., Class B | | | 227 | | | | 12,442 | |
| | | | | | | | |
| |
Cable & Satellite – 2.4% | |
Comcast Corp., Class A | | | 370 | | | | 24,526 | |
| | | | | | | | |
| |
Home Improvement Retail – 1.3% | |
Home Depot, Inc. (The) | | | 107 | | | | 13,724 | |
| | | | | | | | |
| |
Housewares & Specialties – 1.9% | |
Newell Rubbermaid, Inc. | | | 384 | | | | 20,195 | |
| | | | | | | | |
| |
Internet & Direct Marketing Retail – 2.7% | |
Amazon.com, Inc. (A) | | | 34 | | | | 28,064 | |
| | | | | | | | |
| |
Movies & Entertainment – 1.5% | |
Twenty-First Century Fox, Inc., Class A | | | 629 | | | | 15,237 | |
| | | | | | | | |
| |
Restaurants – 1.0% | |
Chipotle Mexican Grill, Inc., Class A (A) | | | 24 | | | | 10,291 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 15.5% | | | | 160,828 | |
Consumer Staples | |
| |
Brewers – 2.7% | |
Molson Coors Brewing Co., Class B | | | 260 | | | | 28,559 | |
| | | | | | | | |
| |
Hypermarkets & Super Centers – 1.2% | |
Costco Wholesale Corp. | | | 79 | | | | 12,003 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 5.7% | |
Kellogg Co. | | | 189 | | | | 14,626 | |
Kraft Foods Group, Inc. | | | 330 | | | | 29,574 | |
Mead Johnson Nutrition Co. | | | 184 | | | | 14,522 | |
| | | | | | | | |
| | | | | | | 58,722 | |
| | | | | | | | |
| |
Tobacco – 3.5% | |
Philip Morris International, Inc. | | | 378 | | | | 36,727 | |
| | | | | | | | |
| |
Total Consumer Staples – 13.1% | | | | 136,011 | |
Energy | |
| |
Oil & Gas Drilling – 1.3% | |
Helmerich & Payne, Inc. | | | 189 | | | | 12,726 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 3.1% | |
Halliburton Co. | | | 721 | | | | 32,352 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 6.8% | |
Cabot Oil & Gas Corp. | | | 754 | | | | 19,445 | |
Cimarex Energy Co. | | | 217 | | | | 29,217 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Oil & Gas Exploration & Production (Continued) | |
EOG Resources, Inc. | | | 228 | | | $ | 22,089 | |
| | | | | | | | |
| | | | | | | 70,751 | |
| | | | | | | | |
| |
Total Energy – 11.2% | | | | 115,829 | |
Financials | |
| |
Financial Exchanges & Data – 2.1% | |
CME Group, Inc. | | | 210 | | | | 21,991 | |
| | | | | | | | |
| |
Multi-Line Insurance – 2.3% | |
American International Group, Inc. | | | 404 | | | | 23,956 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 2.3% | |
JPMorgan Chase & Co. | | | 359 | | | | 23,892 | |
| | | | | | | | |
| |
Total Financials – 6.7% | | | | 69,839 | |
Health Care | |
| |
Biotechnology – 4.6% | |
Alexion Pharmaceuticals, Inc. (A) | | | 154 | | | | 18,912 | |
Shire Pharmaceuticals Group plc ADR | | | 150 | | | | 29,072 | |
| | | | | | | | |
| | | | | | | 47,984 | |
| | | | | | | | |
| |
Health Care Facilities – 1.9% | |
HCA Holdings, Inc. (A) | | | 258 | | | | 19,490 | |
| | | | | | | | |
| |
Pharmaceuticals – 5.5% | |
Allergan plc (A) | | | 109 | | | | 25,217 | |
Bristol-Myers Squibb Co. | | | 207 | | | | 11,151 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 463 | | | | 21,282 | |
| | | | | | | | |
| | | | | | | 57,650 | |
| | | | | | | | |
| |
Total Health Care – 12.0% | | | | 125,124 | |
Industrials | |
| |
Aerospace & Defense – 1.3% | |
Rockwell Collins, Inc. | | | 156 | | | | 13,182 | |
| | | | | | | | |
| |
Railroads – 6.5% | |
Canadian Pacific Railway Ltd. | | | 104 | | | | 15,943 | |
Kansas City Southern | | | 217 | | | | 20,250 | |
Union Pacific Corp. | | | 322 | | | | 31,416 | |
| | | | | | | | |
| | | | | | | 67,609 | |
| | | | | | | | |
| |
Trucking – 1.1% | |
J.B. Hunt Transport Services, Inc. | | | 144 | | | | 11,660 | |
| | | | | | | | |
| |
Total Industrials – 8.9% | | | | 92,451 | |
Information Technology | |
| |
Application Software – 2.8% | |
Adobe Systems, Inc. (A) | | | 266 | | | | 28,904 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 4.8% | |
MasterCard, Inc., Class A | | | 247 | | | | 25,139 | |
Visa, Inc., Class A | | | 299 | | | | 24,728 | |
| | | | | | | | |
| | | | | | | 49,867 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Internet Software & Services – 4.9% | |
Alibaba Group Holding Ltd. ADR (A) | | | 226 | | | $ | 23,877 | |
Facebook, Inc., Class A (A) | | | 214 | | | | 27,411 | |
| | | | | | | | |
| | | | | | | 51,288 | |
| | | | | | | | |
| |
Semiconductor Equipment – 2.8% | |
Applied Materials, Inc. | | | 947 | | | | 28,540 | |
| | | | | | | | |
| |
Semiconductors – 5.2% | |
Analog Devices, Inc. | | | 338 | | | | 21,797 | |
NXP Semiconductors N.V. (A) | | | 314 | | | | 32,047 | |
| | | | | | | | |
| | | | | | | 53,844 | |
| | | | | | | | |
| |
Systems Software – 3.5% | |
Microsoft Corp. | | | 637 | | | | 36,691 | |
| | | | | | | | |
| |
Total Information Technology – 24.0% | | | | 249,134 | |
Materials | |
| |
Industrial Gases – 1.1% | |
Air Products and Chemicals, Inc. | | | 75 | | | | 11,200 | |
| | | | | | | | |
| |
Specialty Chemicals – 1.3% | |
Sherwin-Williams Co. (The) | | | 48 | | | | 13,391 | |
| | | | | | | | |
| |
Total Materials – 2.4% | | | | 24,591 | |
Real Estate | |
| |
Specialized REITs – 4.0% | |
American Tower Corp., Class A | | | 254 | | | | 28,831 | |
Crown Castle International Corp. | | | 132 | | | | 12,417 | |
| | | | | | | | |
| | | | | | | 41,248 | |
| | | | | | | | |
| |
Total Real Estate – 4.0% | | | | 41,248 | |
Telecommunication Services | |
| |
Alternative Carriers – 1.6% | |
Level 3 Communications, Inc. (A) | | | 371 | | | | 17,198 | |
| | | | | | | | |
| |
Total Telecommunication Services – 1.6% | | | | 17,198 | |
| |
TOTAL COMMON STOCKS – 99.4% | | | $ | 1,032,253 | |
(Cost: $873,805) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (B) – 0.7% | |
Northern Illinois Gas Co., | | | | | | | | |
0.420%, 10-3–16 | | $ | 7,107 | | | | 7,106 | |
| | | | | | | | |
| | |
Master Note – 0.2% | | | | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (C) | | | 2,009 | | | | 2,009 | |
| | | | | | | | |
| | | | | | |
| 20 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
SHORT-TERM SECURITIES (Continued) | | | | | Value | |
| |
TOTAL SHORT-TERM SECURITIES – 0.9% | | | $ | 9,115 | |
(Cost: $9,116) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.3% | | | $ | 1,041,368 | |
(Cost: $882,921) | | | | | | | | |
| | |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.3)% | | | | | | | (3,537 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 1,037,831 | |
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, 2016. |
| (C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 1,032,253 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 9,115 | | | | — | |
Total | | $ | 1,032,253 | | | $ | 9,115 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
REIT = Real Estate Investment Trusts
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 21 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY CUNDILL GLOBAL VALUE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 100.0% | |
Financials | | | 28.5% | |
Industrials | | | 15.9% | |
Energy | | | 12.1% | |
Consumer Discretionary | | | 11.9% | |
Health Care | | | 11.5% | |
Information Technology | | | 9.0% | |
Materials | | | 5.3% | |
Consumer Staples | | | 3.1% | |
Telecommunication Services | | | 1.7% | |
Real Estate | | | 1.0% | |
Cash and Other Assets (Net of Liabilities) | | | 0.0% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Multi-Cap
Value Funds | | Rank | | Percentile | |
1 Year | | 103/110 | | | 93 | |
3 Year | | 72/75 | | | 95 | |
5 Year | | 49/56 | | | 86 | |
10 Year | | 32/36 | | | 87 | |
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 | | | 67.1% | |
United States | | | 61.7% | |
Canada | | | 5.4% | |
Europe | | | 18.8% | |
France | | | 6.1% | |
Other Europe | | | 12.7% | |
Pacific Basin | | | 14.1% | |
Japan | | | 6.2% | |
South Korea | | | 4.2% | |
Other Pacific Basin | | | 3.7% | |
Cash and Other Assets (Net of Liabilities) | | | 0.0% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
American International Group, Inc. | | United States | | Financials | | Multi-Line Insurance |
Citigroup, Inc. | | United States | | Financials | | Other Diversified Financial Services |
Chesapeake Energy Corp., 5.750%, Cumulative | | United States | | Energy | | Oil & Gas Exploration & Production |
Wells Fargo & Co. | | United States | | Financials | | Diversified Banks |
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares | | Germany | | Financials | | Reinsurance |
Deere & Co. | | United States | | Industrials | | Construction Machinery & Heavy Trucks |
Goldman Sachs Group, Inc. (The) | | United States | | Financials | | Investment Banking & Brokerage |
Bank of America Corp. | | United States | | Financials | | Diversified Banks |
International Business Machines Corp. | | United States | | Information Technology | | IT Consulting & Other Services |
Apache Corp. | | United States | | Energy | | Oil & Gas Exploration & Production |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| | | | | | |
| 22 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY CUNDILL GLOBAL VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Canada | |
| |
Consumer Discretionary – 1.7% | |
Magna International, Inc. | | | 79 | | | $ | 3,399 | |
| | | | | | | | |
| |
Energy – 2.1% | |
Cenovus Energy, Inc. | | | 287 | | | | 4,123 | |
| | | | | | | | |
| |
Materials – 1.6% | |
Canfor Corp. (A) | | | 285 | | | | 3,167 | |
| | | | | | | | |
| | |
Total Canada – 5.4% | | | | | | | 10,689 | |
China | |
| |
Information Technology – 0.7% | |
Baidu.com, Inc. ADR (A) | | | 7 | | | | 1,357 | |
| | | | | | | | |
| | |
Total China – 0.7% | | | | | | | 1,357 | |
France | |
| |
Health Care – 2.0% | |
Sanofi-Aventis | | | 52 | | | | 3,963 | |
| | | | | | | | |
| |
Industrials – 4.1% | |
Compagnie de Saint-Gobain | | | 93 | | | | 4,025 | |
Vinci | | | 53 | | | | 4,091 | |
| | | | | | | | |
| | | | | | | 8,116 | |
| | | | | | | | |
| | |
Total France – 6.1% | | | | | | | 12,079 | |
Germany | |
| |
Financials – 3.4% | |
Munchener Ruckversicherungs-Gesellschaft AG, Registered Shares | | | 37 | | | | 6,861 | |
| | | | | | | | |
| | |
Total Germany – 3.4% | | | | | | | 6,861 | |
Hong Kong | |
| |
Financials – 2.0% | |
First Pacific Co. Ltd. | | | 5,655 | | | | 4,024 | |
| | | | | | | | |
| |
Real Estate – 1.0% | |
Cheung Kong (Holdings) Ltd. | | | 158 | | | | 2,009 | |
| | | | | | | | |
| | |
Total Hong Kong – 3.0% | | | | | | | 6,033 | |
Italy | |
| |
Consumer Discretionary – 2.6% | |
Mediaset S.p.A. | | | 1,651 | | | | 5,181 | |
| | | | | | | | |
| | |
Total Italy – 2.6% | | | | | | | 5,181 | |
Japan | |
| |
Consumer Discretionary – 3.4% | |
Honda Motor Co. Ltd. | | | 191 | | | | 5,433 | |
SANKYO Co. Ltd. | | | 40 | | | | 1,357 | |
| | | | | | | | |
| | | | | | | 6,790 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Information Technology – 1.1% | |
Hitachi Ltd. | | | 474 | | | $ | 2,191 | |
| | | | | | | | |
| |
Telecommunication Services – 1.7% | |
SoftBank Group Corp. | | | 54 | | | | 3,447 | |
| | | | | | | | |
| | |
Total Japan – 6.2% | | | | | | | 12,428 | |
Luxembourg | |
| |
Energy – 1.7% | |
Tenaris S.A. | | | 240 | | | | 3,418 | |
| | | | | | | | |
| | |
Total Luxembourg – 1.7% | | | | | | | 3,418 | |
South Korea | |
| |
Information Technology – 2.1% | |
Samsung Electronics Co. Ltd. | | | 3 | | | | 4,148 | |
| | | | | | | | |
| |
Materials – 2.1% | |
POSCO | | | 21 | | | | 4,282 | |
| | | | | | | | |
| | |
Total South Korea – 4.2% | | | | | | | 8,430 | |
Switzerland | |
| |
Health Care – 2.1% | |
Novartis AG, Registered Shares | | | 52 | | | | 4,088 | |
| | | | | | | | |
| | |
Total Switzerland – 2.1% | | | | | | | 4,088 | |
United Kingdom | |
| |
Industrials – 2.9% | |
G4S plc | | | 1,302 | | | | 3,844 | |
Weir Group plc (The) | | | 90 | | | | 1,990 | |
| | | | | | | | |
| | | | | | | 5,834 | |
| | | | | | | | |
| |
Total United Kingdom – 2.9% | | | | 5,834 | |
United States | |
| |
Consumer Discretionary – 4.2% | |
TRI Pointe Group, Inc. (A) | | | 320 | | | | 4,217 | |
Twenty-First Century Fox, Inc., Class A | | | 172 | | | | 4,170 | |
| | | | | | | | |
| | | | | | | 8,387 | |
| | | | | | | | |
| |
Consumer Staples – 3.1% | |
CVS Caremark Corp. | | | 44 | | | | 3,948 | |
Wal-Mart Stores, Inc. | | | 32 | | | | 2,310 | |
| | | | | | | | |
| | | | | | | 6,258 | |
| | | | | | | | |
| |
Energy – 3.8% | |
Apache Corp. | | | 87 | | | | 5,537 | |
Rowan Cos., Inc. | | | 127 | | | | 1,932 | |
| | | | | | | | |
| | | | | | | 7,469 | |
| | | | | | | | |
| |
Financials – 23.1% | |
American International Group, Inc. | | | 240 | | | | 14,238 | |
Bank of America Corp. | | | 388 | | | | 6,070 | |
Citigroup, Inc. (B) | | | 257 | | | | 12,150 | |
Goldman Sachs Group, Inc. (The) | | | 38 | | | | 6,086 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Financials (Continued) | |
Wells Fargo & Co. | | | 170 | | | $ | 7,549 | |
| | | | | | | | |
| | | | | | | 46,093 | |
| | | | | | | | |
| |
Health Care – 7.4% | |
Da Vita, Inc. (A) | | | 80 | | | | 5,278 | |
HCA Holdings, Inc. (A) | | | 67 | | | | 5,047 | |
McKesson Corp. | | | 26 | | | | 4,418 | |
| | | | | | | | |
| | | | | | | 14,743 | |
| | | | | | | | |
| |
Industrials – 8.9% | |
Deere & Co. | | | 76 | | | | 6,482 | |
Nielsen Holdings plc | | | 38 | | | | 2,015 | |
Union Pacific Corp. | | | 50 | | | | 4,841 | |
Westinghouse Air Brake Technologies Corp. | | | 55 | | | | 4,498 | |
| | | | | | | | |
| | | | | | | 17,836 | |
| | | | | | | | |
| |
Information Technology – 5.1% | |
International Business Machines Corp. | | | 38 | | | | 6,054 | |
Oracle Corp. | | | 107 | | | | 4,201 | |
| | | | | | | | |
| | | | | | | 10,255 | |
| | | | | | | | |
| |
Materials – 1.6% | |
Axalta Coating Systems Ltd. (A) | | | 113 | | | | 3,207 | |
| | | | | | | | |
| |
Total United States – 57.2% | | | | 114,248 | |
| |
TOTAL COMMON STOCKS – 95.5% | | | $ | 190,646 | |
(Cost: $169,406) | | | | | | | | |
| | |
| PREFERRED STOCKS | | | | | | |
United States | |
| | |
Energy – 4.5% | | | | | | | | |
Chesapeake Energy Corp., 5.750%, Cumulative, Series A | | | 15 | | | | 7,817 | |
Chesapeake Energy Corp., 5.750%, Cumulative | | | 2 | | | | 1,220 | |
| | | | | | | | |
| |
Total United States – 4.5% | | | | 9,037 | |
| |
TOTAL PREFERRED STOCKS – 4.5% | | | $ | 9,037 | |
(Cost: $13,390) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.0% | | | $ | 199,683 | |
(Cost: $182,796) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – 0.0% | | | | (27 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 199,656 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 23 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY CUNDILL GLOBAL VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Schedule of Investments
| (A) | No dividends were paid during the preceding 12 months. |
| (B) | All or a portion of securities with an aggregate value of $269 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| Japanese Yen | | | 579,100 | | | U.S. Dollar | | | 5,748 | | | 11–30–16 | | Morgan Stanley International | | $ | 24 | | | $ | — | | | | | |
| Japanese Yen | | | 576,410 | | | U.S. Dollar | | | 5,666 | | | 12–7–16 | | Morgan Stanley International | | | — | | | | 34 | | | | | |
| Euro | | | 11,400 | | | U.S. Dollar | | | 12,816 | | | 12–23–16 | | Morgan Stanley International | | | — | | | | 39 | | | | | |
| Euro | | | 805 | | | U.S. Dollar | | | 902 | | | 12–16–16 | | State Street Global Markets | | | — | | | | 6 | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 24 | | | $ | 79 | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 190,646 | | | $ | — | | | $ | — | |
Preferred Stocks | | | 1,220 | | | | 7,817 | | | | — | |
Total | | $ | 191,866 | | | $ | 7,817 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 24 | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 79 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
OTC = Over the Counter
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
| Financials | | | 28.5% | |
| Industrials | | | 15.9% | |
| Energy | | | 12.1% | |
| Consumer Discretionary | | | 11.9% | |
| Health Care | | | 11.5% | |
| Information Technology | | | 9.0% | |
| Materials | | | 5.3% | |
| Consumer Staples | | | 3.1% | |
| Telecommunication Services | | | 1.7% | |
| Real Estate | | | 1.0% | |
| Other+ | | | 0.0% | |
| + | Includes cash and other assets (net of liabilities) |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 24 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY DIVIDEND OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 90.2% | |
Information Technology | | | 14.6% | |
Health Care | | | 12.7% | |
Industrials | | | 11.8% | |
Financials | | | 11.0% | |
Consumer Discretionary | | | 10.2% | |
Energy | | | 9.3% | |
Consumer Staples | | | 7.7% | |
Materials | | | 6.2% | |
Real Estate | | | 4.7% | |
Utilities | | | 2.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 9.8% | |
Lipper Rankings
| | | | | | |
Category: Lipper Equity Income
Funds | | Rank | | Percentile | |
1 Year | | 423/512 | | | 83 | |
3 Year | | 316/434 | | | 73 | |
5 Year | | 186/312 | | | 60 | |
10 Year | | 150/208 | | | 72 | |
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 |
Pfizer, Inc. | | Health Care | | Pharmaceuticals |
Microsoft Corp. | | Information Technology | | Systems Software |
JPMorgan Chase & Co. | | Financials | | Other Diversified Financial Services |
Teva Pharmaceutical Industries Ltd. ADR | | Health Care | | Pharmaceuticals |
Chevron Corp. | | Energy | | Integrated Oil & Gas |
Philip Morris International, Inc. | | Consumer Staples | | Tobacco |
Comcast Corp., Class A | | Consumer Discretionary | | Cable & Satellite |
General Electric Co. | | Industrials | | Industrial Conglomerates |
Enterprise Products Partners L.P. | | Energy | | Oil & Gas Storage & Transportation |
Union Pacific Corp. | | Industrials | | Railroads |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 25 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY DIVIDEND OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Advertising – 1.6% | |
Omnicom Group, Inc. | | | 68 | | | $ | 5,754 | |
| | | | | | | | |
| |
Apparel Retail – 0.6% | |
Limited Brands, Inc. | | | 33 | | | | 2,304 | |
| | | | | | | | |
| |
Cable & Satellite – 2.5% | |
Comcast Corp., Class A | | | 140 | | | | 9,301 | |
| | | | | | | | |
| |
Casinos & Gaming – 0.6% | |
International Game Technology plc | | | 95 | | | | 2,320 | |
| | | | | | | | |
| |
Home Improvement Retail – 1.7% | |
Home Depot, Inc. (The) | | | 49 | | | | 6,286 | |
| | | | | | | | |
| |
Housewares & Specialties – 1.6% | |
Newell Rubbermaid, Inc. | | | 109 | | | | 5,748 | |
| | | | | | | | |
| |
Restaurants – 1.6% | |
McDonalds Corp. | | | 53 | | | | 6,108 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 10.2% | | | | 37,821 | |
Consumer Staples | |
| |
Brewers – 1.6% | |
Anheuser-Busch InBev S.A. ADR | | | 46 | | | | 6,019 | |
| | | | | | | | |
| | |
Drug Retail – 1.7% | | | | | | | | |
CVS Caremark Corp. | | | 71 | | | | 6,292 | |
| | | | | | | | |
| | |
Packaged Foods & Meats – 1.8% | | | | | | | | |
Unilever plc (A) | | | 138 | | | | 6,541 | |
| | | | | | | | |
| | |
Tobacco – 2.6% | | | | | | | | |
Philip Morris International, Inc. | | | 99 | | | | 9,644 | |
| | | | | | | | |
| |
Total Consumer Staples – 7.7% | | | | 28,496 | |
Energy | |
| |
Integrated Oil & Gas – 4.8% | |
Chevron Corp. | | | 95 | | | | 9,731 | |
Suncor Energy, Inc. | | | 293 | | | | 8,142 | |
| | | | | | | | |
| | | | | | | 17,873 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 1.9% | |
Noble Energy, Inc. | | | 193 | | | | 6,914 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 2.6% | |
Enterprise Products Partners L.P. | | | 318 | | | | 8,779 | |
Noble Midstream Partners L.P. (B) | | | 38 | | | | 1,074 | |
| | | | | | | | |
| | | | | | | 9,853 | |
| | | | | | | | |
| |
Total Energy – 9.3% | | | | 34,640 | |
Financials | |
| |
Diversified Banks – 1.0% | |
Wells Fargo & Co. | | | 82 | | | | 3,609 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 0.9% | |
Morgan Stanley | | | 102 | | | | 3,280 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Multi-Line Insurance – 2.2% | |
American International Group, Inc. | | | 136 | | | $ | 8,076 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 3.8% | |
JPMorgan Chase & Co. | | | 216 | | | | 14,377 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 1.8% | |
ACE Ltd. | | | 53 | | | | 6,634 | |
| | | | | | | | |
| |
Regional Banks – 1.3% | |
KeyCorp | | | 303 | | | | 3,691 | |
PNC Financial Services Group, Inc. (The) | | | 13 | | | | 1,158 | |
| | | | | | | | |
| | | | | | | 4,849 | |
| | | | | | | | |
| |
Total Financials – 11.0% | | | | 40,825 | |
Health Care | |
| |
Health Care Equipment – 2.1% | |
Medtronic plc | | | 90 | | | | 7,761 | |
| | | | | | | | |
| |
Managed Health Care – 1.8% | |
Anthem, Inc. | | | 53 | | | | 6,654 | |
| | | | | | | | |
| |
Pharmaceuticals – 8.8% | |
Bristol-Myers Squibb Co. | | | 58 | | | | 3,114 | |
Pfizer, Inc. | | | 499 | | | | 16,884 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 276 | | | | 12,690 | |
| | | | | | | | |
| | | | | | | 32,688 | |
| | | | | | | | |
| | |
Total Health Care – 12.7% | | | | | | | 47,103 | |
Industrials | |
| |
Aerospace & Defense – 3.9% | |
BAE Systems plc (A) | | | 704 | | | | 4,781 | |
Boeing Co. (The) | | | 23 | | | | 3,083 | |
Honeywell International, Inc. | | | 58 | | | | 6,779 | |
| | | | | | | | |
| | | | | | | 14,643 | |
| | | | | | | | |
| |
Construction Machinery & Heavy Trucks – 1.2% | |
PACCAR, Inc. | | | 73 | | | | 4,276 | |
| | | | | | | | |
| |
Industrial Conglomerates – 2.4% | |
General Electric Co. | | | 305 | | | | 9,033 | |
| | | | | | | | |
| |
Industrial Machinery – 1.0% | |
Eaton Corp. | | | 59 | | | | 3,903 | |
| | | | | | | | |
| |
Railroads – 2.2% | |
Union Pacific Corp. | | | 84 | | | | 8,149 | |
| | | | | | | | |
| |
Research & Consulting Services – 1.1% | |
Nielsen Holdings plc | | | 75 | | | | 4,015 | |
| | | | | | | | |
| | |
Total Industrials – 11.8% | | | | | | | 44,019 | |
Information Technology | |
| |
Communications Equipment – 4.0% | |
Harris Corp. | | | 86 | | | | 7,846 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Communications Equipment (Continued) | |
Nokia Corp., Series A ADR | | | 1,192 | | | $ | 6,902 | |
| | | | | | | | |
| | | | | | | 14,748 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 0.9% | |
Paychex, Inc. | | | 61 | | | | 3,556 | |
| | | | | | | | |
| |
Semiconductor Equipment – 1.3% | |
Applied Materials, Inc. | | | 158 | | | | 4,768 | |
| | | | | | | | |
| |
Semiconductors – 4.2% | |
Analog Devices, Inc. | | | 124 | | | | 8,017 | |
Cypress Semiconductor Corp. | | | 626 | | | | 7,616 | |
| | | | | | | | |
| | | | | | | 15,633 | |
| | | | | | | | |
| |
Systems Software – 4.2% | |
Microsoft Corp. | | | 274 | | | | 15,783 | |
| | | | | | | | |
| |
Total Information Technology – 14.6% | | | | 54,488 | |
Materials | |
| |
Diversified Chemicals – 2.8% | |
Dow Chemical Co. (The) | | | 71 | | | | 3,659 | |
PPG Industries, Inc. | | | 67 | | | | 6,889 | |
| | | | | | | | |
| | | | | | | 10,548 | |
| | | | | | | | |
| |
Industrial Gases – 1.7% | |
Air Products and Chemicals, Inc. | | | 42 | | | | 6,380 | |
| | | | | | | | |
| |
Paper Packaging – 1.7% | |
International Paper Co. | | | 131 | | | | 6,281 | |
| | | | | | | | |
| |
Total Materials – 6.2% | | | | 23,209 | |
Real Estate | |
| |
Industrial REITs – 1.0% | |
ProLogis | | | 71 | | | | 3,791 | |
| | | | | | | | |
| |
Specialized REITs – 3.7% | |
Communications Sales & Leasing, Inc. | | | 108 | | | | 3,388 | |
Crown Castle International Corp. | | | 82 | | | | 7,711 | |
Life Storage, Inc. | | | 30 | | | | 2,668 | |
| | | | | | | | |
| | | | | | | 13,767 | |
| | | | | | | | |
| | |
Total Real Estate – 4.7% | | | | | | | 17,558 | |
Utilities | |
| |
Electric Utilities – 2.0% | |
Exelon Corp. | | | 162 | | | | 5,388 | |
PPL Corp. | | | 64 | | | | 2,200 | |
| | | | | | | | |
| | | | | | | 7,588 | |
| | | | | | | | |
| |
Total Utilities – 2.0% | | | | 7,588 | |
| |
TOTAL COMMON STOCKS – 90.2% | | | $ | 335,747 | |
(Cost: $269,539) | | | | | | | | |
| | | | | | |
| 26 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY DIVIDEND OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Commercial Paper (C) – 5.8% | | | | | |
Northern Illinois Gas Co., | | | | | | | | |
0.420%, 10–3–16 | | $ | 9,714 | | | $ | 9,713 | |
United Technologies Corp., | | | | | | | | |
0.850%, 11–16–16 | | | 5,000 | | | | 4,995 | |
Virginia Electric and Power Co.: | | | | | | | | |
0.690%, 10–19–16 | | | 5,000 | | | | 4,998 | |
0.720%, 11–2–16 | | | 2,000 | | | | 1,999 | |
| | | | | | | | |
| | | | | | | 21,705 | |
| | | | | | | | |
| |
Master Note – 0.9% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (D) | | | 3,408 | | | | 3,408 | |
| | | | | | | | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Municipal Obligations – 3.1% | |
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (D) | | $ | 9,000 | | | $ | 9,000 | |
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.780%, 10–7–16 (D) | | | 2,500 | | | | 2,500 | |
| | | | | | | | |
| | | | | | | 11,500 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 9.8% | | | $ | 36,613 | |
(Cost: $36,614) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.0% | | | $ | 372,360 | |
(Cost: $306,153) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0% | | | | 4 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 372,364 | |
Notes to Schedule of Investments
| (A) | Listed on an exchange outside the United States. |
| (B) | No dividends were paid during the preceding 12 months. |
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 335,747 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 36,613 | | | | — | |
Total | | $ | 335,747 | | | $ | 36,613 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
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.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 27 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY EMERGING MARKETS EQUITY FUNDS |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.2% | |
Information Technology | | | 32.1% | |
Financials | | | 15.4% | |
Consumer Discretionary | | | 14.3% | |
Consumer Staples | | | 11.1% | |
Energy | | | 6.9% | |
Materials | | | 5.6% | |
Health Care | | | 5.5% | |
Real Estate | | | 3.0% | |
Utilities | | | 2.4% | |
Industrials | | | 1.9% | |
Telecommunication Services | | | 1.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.8% | |
Lipper Rankings
| | | | | | |
Category: Lipper Emerging Markets
Funds | | Rank | | Percentile | |
1 Year | | 199/839 | | | 24 | |
3 Year | | 18/587 | | | 4 | |
5 Year | | 53/424 | | | 13 | |
10 Year | | 36/170 | | | 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.
Country Weightings
| | | | |
Pacific Basin | | | 63.6% | |
South Korea | | | 17.6% | |
China | | | 14.2% | |
India | | | 10.5% | |
Taiwan | | | 8.9% | |
Other Pacific Basin | | | 12.4% | |
South America | | | 18.8% | |
Brazil | | | 18.8% | |
Europe | | | 9.7% | |
Russia | | | 7.3% | |
Other Europe | | | 2.4% | |
North America | | | 4.0% | |
Other | | | 3.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.8% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Samsung Electronics Co. Ltd. | | South Korea | | Information Technology | | Semiconductors |
Sberbank of Russia ADR | | Russia | | Financials | | Diversified Banks |
Raia Drogasil S.A. | | Brazil | | Consumer Staples | | Drug Retail |
Petroleo Brasileiro S.A. | | Brazil | | Energy | | Integrated Oil & Gas |
Naspers Ltd., Class N | | South Africa | | Consumer Discretionary | | Cable & Satellite |
Alibaba Group Holding Ltd. ADR | | China | | Information Technology | | Internet Software & Services |
Tencent Holdings Ltd. | | China | | Information Technology | | Internet Software & Services |
Taiwan Semiconductor Manufacturing Co. Ltd. | | Taiwan | | Information Technology | | Semiconductors |
Largan Precision Co. Ltd. | | Taiwan | | Information Technology | | Electronic Components |
PJSC LUKOIL ADR | | Russia | | Energy | | Integrated Oil & Gas |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 28 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Brazil | |
| |
Consumer Discretionary – 1.0% | |
Kroton Educacional S.A. | | | 1,316 | | | $ | 6,031 | |
| | | | | | | | |
| |
Consumer Staples – 5.0% | |
Hypermarcas S.A. | | | 985 | | | | 8,522 | |
Raia Drogasil S.A. | | | 1,014 | | | | 20,846 | |
| | | | | | | | |
| | | | | | | 29,368 | |
| | | | | | | | |
| |
Energy – 3.2% | |
Petroleo Brasileiro S.A. (A) | | | 4,564 | | | | 19,227 | |
| | | | | | | | |
Financials – 4.7% | |
Banco Bradesco S.A. | | | 1,070 | | | | 9,855 | |
Banco do Brasil S.A. | | | 880 | | | | 6,209 | |
Itau Unibanco Holdings S.A. | | | 1,089 | | | | 11,971 | |
| | | | | | | | |
| | | | | | | 28,035 | |
| | | | | | | | |
| |
Information Technology – 1.6% | |
MercadoLibre, Inc. | | | 51 | | | | 9,458 | |
| | | | | | | | |
| |
Materials – 1.3% | |
Vale S.A. | | | 1,401 | | | | 7,705 | |
| | | | | | | | |
| |
Real Estate – 1.0% | |
BRMalls Participacoes S.A. (A) | | | 1,504 | | | | 5,725 | |
| | | | | | | | |
| |
Utilities – 1.0% | |
Companhia de Saneamento Basico do Estado de Sao Paulo - SABESP | | | 617 | | | | 5,732 | |
| | | | | | | | |
| |
Total Brazil – 18.8% | | | | 111,281 | |
China | |
| |
Consumer Discretionary – 2.6% | |
Brilliance China Automotive Holdings Ltd. | | | 6,982 | | | | 7,831 | |
BYD Co. Ltd., H Shares (A) | | | 1,098 | | | | 7,206 | |
| | | | | | | | |
| | | | | | | 15,037 | |
| | | | | | | | |
| |
Consumer Staples – 1.4% | |
WH Group Ltd. | | | 10,492 | | | | 8,441 | |
| | | | | | | | |
| |
Information Technology – 10.2% | |
Alibaba Group Holding Ltd. ADR (A) | | | 174 | | | | 18,457 | |
Baidu.com, Inc. ADR (A) | | | 38 | | | | 6,866 | |
NetEase.com, Inc. ADR | | | 31 | | | | 7,496 | |
Sunny Optical Technology (Group) Co. Ltd. | | | 2,185 | | | | 10,787 | |
Tencent Holdings Ltd. | | | 619 | | | | 16,998 | |
| | | | | | | | |
| | | | | | | 60,604 | |
| | | | | | | | |
| |
Total China – 14.2% | | | | 84,082 | |
Hong Kong | |
| |
Consumer Staples – 1.2% | |
China Resources Beer (Holdings) Co. Ltd. | | | 3,227 | | | | 6,848 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Information Technology – 1.4% | |
AAC Technologies Holdings, Inc. | | | 853 | | | $ | 8,567 | |
| | | | | | | | |
| |
Total Hong Kong – 2.6% | | | | 15,415 | |
India | |
| |
Consumer Discretionary – 3.4% | |
Maruti Suzuki India Ltd. | | | 165 | | | | 13,582 | |
Page Industries Ltd. | | | 30 | | | | 6,797 | |
| | | | | | | | |
| | | | | | | 20,379 | |
| | | | | | | | |
| |
Consumer Staples – 1.0% | |
ITC Ltd. | | | 1,712 | | | | 6,206 | |
| | | | | | | | |
| |
Financials – 3.6% | |
Axis Bank Ltd. | | | 876 | | | | 7,123 | |
HDFC Bank Ltd. | | | 435 | | | | 8,315 | |
YES BANK Ltd. | | | 310 | | | | 5,834 | |
| | | | | | | | |
| | | | | | | 21,272 | |
| | | | | | | | |
| |
Health Care – 1.5% | |
Biocon Ltd. | | | 618 | | | | 8,658 | |
| | | | | | | | |
| |
Industrials – 1.0% | |
Larsen & Toubro Ltd. | | | 263 | | | | 5,662 | |
| | | | | | | | |
| |
Total India – 10.5% | | | | 62,177 | |
Indonesia | |
| |
Financials – 1.4% | |
PT Bank Mandiri (Persero) Tbk | | | 9,382 | | | | 8,051 | |
| | | | | | | | |
| |
Real Estate – 1.0% | |
PT Lippo Karawaci Tbk | | | 81,662 | | | | 6,195 | |
| | | | | | | | |
| |
Telecommunication Services – 1.0% | |
PT Telekomunikasi Indonesia Persero Tbk | | | 17,424 | | | | 5,754 | |
| | | | | | | | |
| |
Total Indonesia – 3.4% | | | | 20,000 | |
Malaysia | |
| |
Industrials – 0.9% | |
AirAsia Berhad | | | 7,942 | | | | 5,358 | |
| | | | | | | | |
| |
Total Malaysia – 0.9% | | | | 5,358 | |
Mexico | |
| |
Materials – 2.8% | |
CEMEX S.A.B. de C.V. (A) | | | 9,982 | | | | 7,923 | |
Mexichem S.A.B. de C.V. | | | 3,969 | | | | 8,869 | |
| | | | | | | | |
| | | | | | | 16,792 | |
| | | | | | | | |
| |
Total Mexico – 2.8% | | | | 16,792 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Netherlands | |
| |
Information Technology – 2.4% | |
Yandex N.V., Class A (A) | | | 680 | | | $ | 14,306 | |
| | | | | | | | |
| |
Total Netherlands – 2.4% | | | | 14,306 | |
Philippines | |
| |
Materials – 1.0% | |
Cemex Holdings Philippines, Inc. (A) | | | 22,878 | | | | 5,661 | |
| | | | | | | | |
| |
Total Philippines – 1.0% | | | | 5,661 | |
Russia | |
| |
Consumer Staples – 1.0% | |
Magnit PJSC GDR | | | 135 | | | | 5,641 | |
| | | | | | | | |
| |
Energy – 2.5% | |
PJSC LUKOIL ADR | | | 304 | | | | 14,797 | |
| | | | | | | | |
| |
Financials – 3.8% | |
Sberbank of Russia ADR | | | 2,428 | | | | 22,769 | |
| | | | | | | | |
| |
Total Russia – 7.3% | | | | 43,207 | |
South Africa | |
| |
Consumer Discretionary – 3.1% | |
Naspers Ltd., Class N | | | 108 | | | | 18,671 | |
| | | | | | | | |
| |
Total South Africa – 3.1% | | | | 18,671 | |
South Korea | |
| |
Consumer Discretionary – 1.1% | |
Hanssem Co. Ltd. Corp. | | | 40 | | | | 6,444 | |
| | | | | | | | |
| |
Consumer Staples – 1.5% | |
Cosmax, Inc. | | | 67 | | | | 9,186 | |
| | | | | | | | |
| |
Health Care – 4.0% | |
Celltrion, Inc. | | | 96 | | | | 9,266 | |
Hugel, Inc. (A) | | | 12 | | | | 4,623 | |
Vieworks Co. Ltd. | | | 163 | | | | 9,623 | |
| | | | | | | | |
| | | | | | | 23,512 | |
| | | | | | | | |
| |
Information Technology – 9.1% | |
Naver Corp. | | | 16 | | | | 13,101 | |
Samsung Electronics Co. Ltd. | | | 21 | | | | 30,455 | |
SK hynix, Inc. | | | 289 | | | | 10,541 | |
| | | | | | | | |
| | | | | | | 54,097 | |
| | | | | | | | |
| |
Materials – 0.5% | |
POSCO | | | 15 | | | | 2,999 | |
| | | | | | | | |
| |
Utilities – 1.4% | |
Korea Electric Power Corp. | | | 171 | | | | 8,361 | |
| | | | | | | | |
| |
Total South Korea – 17.6% | | | | 104,599 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 29 | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Taiwan | |
| |
Consumer Discretionary – 1.5% | |
Eclat Textile Co. Ltd. | | | 761 | | | $ | 9,080 | |
| | | | | | | | |
| |
Information Technology – 7.4% | |
Advanced Semiconductor Engineering, Inc. | | | 4,909 | | | | 5,889 | |
Hon Hai Precision Industry Co. Ltd. | | | 2,305 | | | | 5,808 | |
Largan Precision Co. Ltd. | | | 127 | | | | 15,315 | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | 2,860 | | | | 16,652 | |
| | | | | | | | |
| | | | | | | 43,664 | |
| | | | | | | | |
| |
Total Taiwan – 8.9% | | | | 52,744 | |
Thailand | |
| |
Consumer Discretionary – 1.6% | |
Minor International Public Co. Ltd. | | | 8,551 | | | | 9,624 | |
| | | | | | | | |
| |
Total Thailand – 1.6% | | | | 9,624 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Turkey | |
| |
Financials – 1.9% | |
Akbank T.A.S. | | | 2,106 | | | $ | 5,642 | |
Turkiye Garanti Bankasi Anonim Sirketi | | | 2,159 | | | | 5,721 | |
| | | | | | | | |
| | | | | | | 11,363 | |
| | | | | | | | |
| |
Real Estate – 1.0% | |
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. | | | 5,763 | | | | 5,839 | |
| | | | | | | | |
| |
Total Turkey – 2.9% | | | | 17,202 | |
United States | |
| |
Energy – 1.2% | |
Halliburton Co. | | | 165 | | | | 7,410 | |
| | | | | | | | |
| |
Total United States – 1.2% | | | | 7,410 | |
| |
TOTAL COMMON STOCKS – 99.2% | | | $ | 588,529 | |
(Cost: $458,902) | | | | | | | | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Master Note – 0.7% | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10-5-16 (B) | | $ | 3,958 | | | $ | 3,958 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 0.7% | | | $ | 3,958 | |
(Cost: $3,958) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.9% | | | $ | 592,487 | |
(Cost: $462,860) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES (C) – 0.1% | | | | 620 | |
| |
NET ASSETS – 100.0% | | | $ | 593,107 | |
Notes to Consolidated 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, 2016. Date shown represents the date that the variable rate resets. |
| (C) | Cash of $2,860 is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| U.S. Dollar | | | 17,596 | | | Malaysian Ringgit | | | 72,100 | | | 10–26–16 | | Deutsche Bank AG | | $ | — | | | $ | 145 | | | | | |
| U.S. Dollar | | | 19,245 | | | South African Rand | | | 262,240 | | | 10–26–16 | | Deutsche Bank AG | | | — | | | | 217 | | | | | |
| U.S. Dollar | | | 17,471 | | | Mexican Peso | | | 343,800 | | | 10–26–16 | | Morgan Stanley International | | | 213 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 213 | | | $ | 362 | | | | | |
| | | | | | | | | | | | | | | | | | |
The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying Security | | Counterparty, if OTC | | Type | | Number of
Contracts | | | Expiration Month | | Exercise Price | | | Premium
Received | | | Value | | | | |
| YPF Sociedad Amonima ADR | | UBS AG | | Put | | | 2,000 | | | February 2017 | | $ | 28.00 | | | $ | 2,010 | | | $ | (1,968 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 30 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| CONSOLIDATED SCHEDULE OF INVESTMENTS | | IVY EMERGING MARKETS EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 588,529 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 3,958 | | | | — | |
Total | | $ | 588,529 | | | $ | 3,958 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 213 | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 362 | | | $ | — | |
Written Options | | $ | — | | | $ | 1,968 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GDR = Global Depositary Receipts
OTC = Over the Counter
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
| Information Technology | | | 32.1% | |
| Financials | | | 15.4% | |
| Consumer Discretionary | | | 14.3% | |
| Consumer Staples | | | 11.1% | |
| Energy | | | 6.9% | |
| Materials | | | 5.6% | |
| Health Care | | | 5.5% | |
| Real Estate | | | 3.0% | |
| Utilities | | | 2.4% | |
| Industrials | | | 1.9% | |
| Telecommunication Services | | | 1.0% | |
| Other+ | | | 0.8% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 31 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY EUROPEAN OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.1% | |
Consumer Staples | | | 15.1% | |
Health Care | | | 14.5% | |
Industrials | | | 12.3% | |
Consumer Discretionary | | | 12.1% | |
Financials | | | 11.3% | |
Information Technology | | | 9.8% | |
Energy | | | 9.4% | |
Materials | | | 5.3% | |
Utilities | | | 5.1% | |
Telecommunication Services | | | 3.2% | |
Real Estate | | | 1.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.9% | |
Lipper Rankings
| | | | | | |
Category: Lipper European Region
Funds | | Rank | | Percentile | |
1 Year | | 106/157 | | | 68 | |
3 Year | | 35/104 | | | 34 | |
5 Year | | 60/91 | | | 66 | |
10 Year | | 52/70 | | | 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.
Country Weightings
| | | | |
Europe | | | 97.5% | |
France | | | 26.7% | |
United Kingdom | | | 25.8% | |
Netherlands | | | 12.0% | |
Germany | | | 8.6% | |
Switzerland | | | 7.6% | |
Ireland | | | 4.9% | |
Spain | | | 3.9% | |
Other Europe | | | 8.0% | |
North America | | | 1.4% | |
Pacific Basin | | | 0.2% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.9% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Shire plc | | United Kingdom | | Health Care | | Pharmaceuticals |
CRH plc | | Ireland | | Materials | | Construction Materials |
Renault S.A. | | France | | Consumer Discretionary | | Automobile Manufacturers |
NXP Semiconductors N.V. | | Netherlands | | Information Technology | | Semiconductors |
Thales | | France | | Industrials | | Aerospace & Defense |
Marine Harvest ASA | | Norway | | Consumer Staples | | Packaged Foods & Meats |
BNP Paribas S.A. | | France | | Financials | | Diversified Banks |
Roche Holdings AG, Genusscheine | | Switzerland | | Health Care | | Pharmaceuticals |
Royal Dutch Shell plc, Class A | | United Kingdom | | Energy | | Integrated Oil & Gas |
Prudential plc | | United Kingdom | | Financials | | Life & Health Insurance |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 32 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
France | | | | | | | | |
| |
Consumer Discretionary – 6.3% | |
Compagnie Generale des Etablissements Michelin, Class B | | | 30 | | | $ | 3,350 | |
LVMH Moet Hennessy – Louis Vuitton | | | 7 | | | | 1,147 | |
Renault S.A. | | | 64 | | | | 5,292 | |
Valeo S.A. | | | 54 | | | | 3,152 | |
| | | | | | | | |
| | | | | | | 12,941 | |
| | | | | | | | |
| |
Consumer Staples – 1.5% | |
Danone | | | 14 | | | | 1,033 | |
Pernod Ricard | | | 17 | | | | 2,032 | |
| | | | | | | | |
| | | | | | | 3,065 | |
| | | | | | | | |
| |
Energy – 1.8% | |
Total S.A. | | | 76 | | | | 3,607 | |
| | | | | | | | |
| |
Financials – 3.9% | |
Axa S.A. | | | 151 | | | | 3,208 | |
BNP Paribas S.A. | | | 92 | | | | 4,734 | |
| | | | | | | | |
| | | | | | | 7,942 | |
| | | | | | | | |
| |
Health Care – 0.2% | |
Innate Pharma S.A. (A) | | | 42 | | | | 521 | |
| | | | | | | | |
| |
Industrials – 7.2% | |
Compagnie de Saint-Gobain | | | 63 | | | | 2,717 | |
Safran | | | 31 | | | | 2,264 | |
Schneider Electric S.A. | | | 33 | | | | 2,315 | |
Thales | | | 54 | | | | 4,961 | |
Vinci | | | 31 | | | | 2,409 | |
| | | | | | | | |
| | | | | | | 14,666 | |
| | | | | | | | |
| |
Information Technology – 1.6% | |
Cap Gemini S.A. | | | 33 | | | | 3,189 | |
| | | | | | | | |
| |
Telecommunication Services – 2.0% | |
Orange S.A. | | | 259 | | | | 4,045 | |
| | | | | | | | |
| |
Utilities – 2.2% | |
ENGIE | | | 152 | | | | 2,361 | |
Suez Environment Co. | | | 124 | | | | 2,040 | |
| | | | | | | | |
| | | | | | | 4,401 | |
| | | | | | | | |
| | |
Total France – 26.7% | | | | | | | 54,377 | |
Germany | | | | | | | | |
| |
Health Care – 3.1% | |
Fresenius SE & Co. KGaA | | | 31 | | | | 2,465 | |
Merck KGaA | | | 36 | | | | 3,881 | |
| | | | | | | | |
| | | | | | | 6,346 | |
| | | | | | | | |
| |
Industrials – 1.6% | |
KION Holding 1 GmbH | | | 52 | | | | 3,347 | |
| | | | | | | | |
| |
Information Technology – 2.9% | |
Infineon Technologies AG | | | 186 | | | | 3,313 | |
SAP AG | | | 28 | | | | 2,509 | |
| | | | | | | | |
| | | | | | | 5,822 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate – 1.0% | |
Deutsche Wohnen AG | | | 55 | | | $ | 2,010 | |
| | | | | | | | |
| | |
Total Germany – 8.6% | | | | | | | 17,525 | |
Ireland | | | | | | | | |
| |
Consumer Staples – 1.5% | |
Glanbia plc | | | 104 | | | | 2,000 | |
Kerry Group plc, Class A | | | 14 | | | | 1,136 | |
| | | | | | | | |
| | | | | | | 3,136 | |
| | | | | | | | |
| |
Industrials – 0.5% | |
Ryanair Holdings plc | | | 78 | | | | 1,068 | |
| | | | | | | | |
| |
Materials – 2.9% | |
CRH plc | | | 176 | | | | 5,879 | |
| | | | | | | | |
| | |
Total Ireland – 4.9% | | | | | | | 10,083 | |
Isle Of Man | | | | | | | | |
| |
Information Technology – 1.0% | |
Paysafe Group plc (A) | | | 344 | | | | 1,987 | |
| | | | | | | | |
| | |
Total Isle Of Man – 1.0% | | | | | | | 1,987 | |
Malaysia | | | | | | | | |
| |
Consumer Staples – 0.2% | |
PureCircle Ltd. (A) | | | 107 | | | | 382 | |
| | | | | | | | |
| | |
Total Malaysia – 0.2% | | | | | | | 382 | |
Netherlands | | | | | | | | |
| |
Consumer Discretionary – 1.7% | |
Koninklijke Philips Electronics N.V., Ordinary Shares | | | 119 | | | | 3,528 | |
| | | | | | | | |
| |
Consumer Staples – 4.4% | |
Heineken N.V. | | | 22 | | | | 1,924 | |
Koninklijke Ahold Delhaize N.V. | | | 174 | | | | 3,958 | |
Unilever N.V., Certicaaten Van Aandelen | | | 66 | | | | 3,062 | |
| | | | | | | | |
| | | | | | | 8,944 | |
| | | | | | | | |
| |
Financials – 2.1% | |
ING Groep N.V., Certicaaten Van Aandelen | | | 342 | | | | 4,227 | |
| | | | | | | | |
| |
Information Technology – 2.5% | |
NXP Semiconductors N.V. (A) | | | 49 | | | | 5,006 | |
| | | | | | | | |
| |
Materials – 1.3% | |
Royal DSM Heerlen | | | 40 | | | | 2,712 | |
| | | | | | | | |
| | |
Total Netherlands – 12.0% | | | | | | | 24,417 | |
Norway | | | | | | | | |
| |
Consumer Staples – 2.3% | |
Marine Harvest ASA | | | 267 | | | | 4,770 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Energy – 1.0% | |
DNO International ASA (A) | | | 1,913 | | | $ | 1,940 | |
| | | | | | | | |
| | |
Total Norway – 3.3% | | | | | | | 6,710 | |
Russia | | | | | | | | |
| |
Energy – 2.0% | |
PJSC LUKOIL ADR | | | 84 | | | | 4,096 | |
| | | | | | | | |
| | |
Total Russia – 2.0% | | | | | | | 4,096 | |
Spain | | | | | | | | |
| |
Financials – 1.4% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | 497 | | | | 3,008 | |
| | | | | | | | |
| |
Health Care – 1.1% | |
Grifols S.A. ADR | | | 141 | | | | 2,252 | |
| | | | | | | | |
| |
Utilities – 1.4% | |
Iberdrola S.A. | | | 413 | | | | 2,810 | |
| | | | | | | | |
| | |
Total Spain – 3.9% | | | | | | | 8,070 | |
Sweden | | | | | | | | |
| |
Financials – 1.7% | |
Skandinaviska Enskilda Banken AB, Series A | | | 354 | | | | 3,561 | |
| | | | | | | | |
| | |
Total Sweden – 1.7% | | | | | | | 3,561 | |
Switzerland | | | | | | | | |
| |
Consumer Staples – 1.7% | |
Nestle S.A., Registered Shares | | | 44 | | | | 3,449 | |
| | | | | | | | |
| |
Health Care – 3.5% | |
Lonza Group Ltd., Registered Shares | | | 13 | | | | 2,427 | |
Roche Holdings AG, Genusscheine | | | 19 | | | | 4,730 | |
| | | | | | | | |
| | | | | | | 7,157 | |
| | | | | | | | |
| |
Information Technology – 1.3% | |
STMicroelectronics N.V. | | | 321 | | | | 2,619 | |
| | | | | | | | |
| |
Materials – 1.1% | |
Syngenta AG (A) | | | 5 | | | | 2,187 | |
| | | | | | | | |
| | |
Total Switzerland – 7.6% | | | | | | | 15,412 | |
United Kingdom | | | | | | | | |
| |
Consumer Discretionary – 4.1% | |
GKN plc | | | 607 | | | | 2,519 | |
UBM plc | | | 352 | | | | 3,254 | |
WPP Group plc | | | 109 | | | | 2,565 | |
| | | | | | | | |
| | | | | | | 8,338 | |
| | | | | | | | |
| |
Consumer Staples – 3.5% | |
Diageo plc | | | 72 | | | | 2,073 | |
Imperial Tobacco Group plc | | | 80 | | | | 4,125 | |
Reckitt Benckiser Group plc | | | 11 | | | | 990 | |
| | | | | | | | |
| | | | | | | 7,188 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 33 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Energy – 4.6% | |
Genel Energy plc (A) | | | 1,400 | | | $ | 1,742 | |
Royal Dutch Shell plc, Class A | | | 184 | | | | 4,553 | |
Tullow Oil plc | | | 927 | | | | 3,041 | |
| | | | | | | | |
| | | | | | | 9,336 | |
| | | | | | | | |
| |
Financials – 2.2% | |
Prudential plc | | | 256 | | | | 4,542 | |
| | | | | | | | |
| |
Health Care – 5.2% | |
AstraZeneca plc | | | 53 | | | | 3,448 | |
Shire plc | | | 111 | | | | 7,182 | |
| | | | | | | | |
| | | | | | | 10,630 | |
| | | | | | | | |
| |
Industrials – 3.0% | |
Ashtead Group plc | | | 192 | | | | 3,165 | |
BAE Systems plc | | | 440 | | | | 2,991 | |
| | | | | | | | |
| | | | | | | 6,156 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Information Technology – 0.5% | |
JUST EAT plc (A) | | | 133 | | | $ | 922 | |
| | | | | | | | |
| |
Telecommunication Services – 1.2% | |
Vodafone Group plc | | | 821 | | | | 2,360 | |
| | | | | | | | |
| |
Utilities – 1.5% | |
National Grid plc | | | 214 | | | | 3,024 | |
| | | | | | | | |
| |
Total United Kingdom – 25.8% | | | | 52,496 | |
United States | | | | | | | | |
| |
Health Care – 1.4% | |
Allergan plc (A) | | | 12 | | | | 2,860 | |
| | | | | | | | |
| | |
Total United States – 1.4% | | | | | | | 2,860 | |
| |
TOTAL COMMON STOCKS – 99.1% | | | $ | 201,976 | |
(Cost: $189,820) | | | | | | | | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Master Note – 0.3% | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (B) | | $ | 538 | | | $ | 538 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 0.3% | | | $ | 538 | |
(Cost: $538) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.4% | | | $ | 202,514 | |
(Cost: $190,358) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.6% | | | | 1,204 | |
| |
NET ASSETS – 100.0% | | | $ | 203,718 | |
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, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| British Pound | | | 9,253 | | | U.S. Dollar | | | 12,134 | | | 10–26–16 | | Citibank N.A. | | $ | 136 | | | $ | — | | | | | |
| Euro | | | 24,945 | | | U.S. Dollar | | | 28,090 | | | 10–26–16 | | State Street Global Markets | | | 38 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 174 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 201,976 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 538 | | | | — | |
Total | | $ | 201,976 | | | $ | 538 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 174 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
ADR = American Depositary Receipts
| | | | | | |
| 34 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY EUROPEAN OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Market Sector Diversification
| | | | |
(as a % of net assets) | |
Consumer Staples | | | 15.1% | |
Health Care | | | 14.5% | |
Industrials | | | 12.3% | |
Consumer Discretionary | | | 12.1% | |
Financials | | | 11.3% | |
Information Technology | | | 9.8% | |
Energy | | | 9.4% | |
Materials | | | 5.3% | |
Utilities | | | 5.1% | |
Telecommunication Services | | | 3.2% | |
Real Estate | | | 1.0% | |
Other+ | | | 0.9% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 35 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY GLOBAL BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 5.6% | |
Utilities | | | 2.2% | |
Energy | | | 1.4% | |
Financials | | | 1.0% | |
Information Technology | | | 1.0% | |
Bonds | | | 89.9% | |
Corporate Debt Securities | | | 69.0% | |
United States Government and Government Agency Obligations | | | 16.1% | |
Loans | | | 2.5% | |
Other Government Securities | | | 2.3% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 4.5% | |
Quality Weightings
| | | | |
Investment Grade | | | 39.2% | |
AA | | | 16.1% | |
A | | | 2.3% | |
BBB | | | 20.8% | |
Non-Investment Grade | | | 50.7% | |
BB | | | 24.0% | |
B | | | 18.0% | |
CCC | | | 3.3% | |
Non-rated | | | 5.4% | |
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities | | | 10.1% | |
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.
Lipper Rankings
| | | | | | |
Category: Lipper Global Income
Funds | | Rank | | Percentile | |
1 Year | | 79/207 | | | 38 | |
3 Year | | 135/192 | | | 70 | |
5 Year | | 60/139 | | | 43 | |
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 | | | 41.8% | |
United States | | | 33.2% | |
Mexico | | | 5.3% | |
Other North America | | | 3.3% | |
Europe | | | 26.3% | |
United Kingdom | | | 8.3% | |
Luxembourg | | | 6.2% | |
Netherlands | | | 5.2% | |
Other Europe | | | 6.6% | |
South America | | | 18.0% | |
Brazil | | | 5.4% | |
Chile | | | 4.5% | |
Argentina | | | 3.7% | |
Columbia | | | 3.6% | |
Other South America | | | 0.8% | |
Pacific Basin | | | 5.5% | |
Bahamas/Caribbean | | | 2.2% | |
Other | | | 1.7% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 4.5% | |
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 36 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Brazil | |
| |
Utilities – 1.3% | |
Alupar Investimento S.A. | | | 212 | | | $ | 1,045 | |
Transmissora Alianca de Energia Eletrica S.A. | | | 181 | | | | 1,162 | |
| | | | | | | | |
| | | | | | | 2,207 | |
| | | | | | | | |
| |
Total Brazil – 1.3% | | | | 2,207 | |
Chile | | | | | | | | |
| | |
Utilities – 0.4% | | | | | | | | |
Aguas Andinas S.A. | | | 1,051 | | | | 675 | |
| | | | | | | | |
| |
Total Chile – 0.4% | | | | 675 | |
Panama | |
| |
Financials – 1.0% | |
Banco Latinoamericano de Comercio Exterior S.A. | | | 61 | | | | 1,715 | |
| | | | | | | | |
| |
Total Panama – 1.0% | | | | 1,715 | |
United Kingdom | |
| |
Energy – 1.4% | |
Royal Dutch Shell plc, Class A | | | 87 | | | | 2,151 | |
Seadrill Partners LLC | | | 69 | | | | 242 | |
| | | | | | | | |
| | | | | | | 2,393 | |
| | | | | | | | |
| |
Total United Kingdom – 1.4% | | | | 2,393 | |
United States | | | | | | | | |
| |
Information Technology – 1.0% | |
Intel Corp. | | | 46 | | | | 1,741 | |
| | | | | | | | |
| |
Utilities – 0.5% | |
PPL Corp. | | | 24 | | | | 845 | |
| | | | | | | | |
| |
Total United States – 1.5% | | | | 2,586 | |
| | |
TOTAL COMMON STOCKS – 5.6% | | | | | | $ | 9,576 | |
(Cost: $11,590) | | | | | | | | |
| | |
| CORPORATE DEBT SECURITIES | | Principal | | | | |
Argentina | |
| |
Energy – 1.9% | |
Pan American Energy LLC: | | | | | | | | |
7.875%, 5–7–21 | | $ | 500 | | | | 536 | |
7.875%, 5–7–21 (A) | | | 1,000 | | | | 1,072 | |
YPF Sociedad Anonima: | | | | | | | | |
8.875%, 12–19–18 (A) | | | 1,300 | | | | 1,440 | |
8.500%, 3–23–21 (A) | | | 250 | | | | 279 | |
| | | | | | | | |
| | | | | | | 3,327 | |
| | | | | | | | |
| |
Industrials – 0.6% | |
Aeropuertos Argentina 2000 S.A.: | | | | | | | | |
10.750%, 12–1–20 | | | 60 | | | | 65 | |
10.750%, 12–1–20 (A) | | | 828 | | | | 904 | |
| | | | | | | | |
| | | | | | | 969 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Utilities – 0.1% | |
Transportadora de Gas del Sur S.A. | | | | | | | | |
7.875%, 5–14–17 | | $ | 188 | | | $ | 189 | |
| | | | | | | | |
| |
Total Argentina – 2.6% | | | | 4,485 | |
Brazil | |
| |
Energy – 0.0% | |
Lancer Finance Co. (SPV) Ltd. | | | | | | | | |
5.850%,
12–12–16 (A)(B) | | | 252 | | | | — | * |
| | | | | | | | |
| |
Financials – 0.0% | |
Banco Cruzeiro do Sul S.A. | | | | | | | | |
8.500%, 2–20–15 (A)(B) | | | 1,500 | | | | 30 | |
| | | | | | | | |
| |
Industrials – 2.0% | |
Embraer Overseas Ltd. | | | | | | | | |
6.375%, 1–24–17 | | | 2,675 | | | | 2,702 | |
Odebrecht Drilling Norbe VII/IX Ltd. | | | | | | | | |
6.350%, 6–30–21 (A) | | | 2,119 | | | | 646 | |
| | | | | | | | |
| | | | | | | 3,348 | |
| | | | | | | | |
| |
Materials – 2.1% | |
Suzano Trading Ltd. | | | | | | | | |
5.875%, 1–23–21 (A) | | | 2,500 | | | | 2,612 | |
Vale Overseas Ltd.: | | | | | | | | |
4.625%, 9–15–20 | | | 500 | | | | 514 | |
6.250%, 8–10–26 | | | 425 | | | | 444 | |
| | | | | | | | |
| | | | | | | 3,570 | |
| | | | | | | | |
| |
Total Brazil – 4.1% | | | | 6,948 | |
British Virgin Islands | |
| |
Energy – 0.5% | |
QGOG Atlantic/Alaskan Rigs Ltd.: | | | | | | | | |
5.250%, 7–30–18 (A) | | | 921 | | | | 797 | |
5.250%, 7–30–18 | | | 101 | | | | 87 | |
| | | | | | | | |
| | | | | | | 884 | |
| | | | | | | | |
| |
Total British Virgin Islands – 0.5% | | | | 884 | |
Canada | |
| |
Financials – 0.7% | |
Bank of Montreal | | | | | | | | |
1.800%, 7–31–18 | | | 1,100 | | | | 1,108 | |
| | | | | | | | |
| | |
Total Canada – 0.7% | | | | | | | 1,108 | |
Cayman Islands | |
| |
Financials – 0.5% | |
Banco Bradesco S.A. | | | | | | | | |
4.500%, 1–12–17 (A) | | | 900 | | | | 906 | |
| | | | | | | | |
| |
Industrials – 0.1% | |
Odebrecht Offshore Drilling Finance | | | | | | | | |
6.750%, 10–1–22 (A) | | | 428 | | | | 79 | |
| | | | | | | | |
| |
Telecommunication Services – 0.7% | |
Sable International Finance Ltd. | | | | | | | | |
6.875%, 8–1–22 (A) | | | 1,200 | | | | 1,245 | |
| | | | | | | | |
| |
Total Cayman Islands – 1.3% | | | | 2,230 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Chile | | | | | | | | |
| |
Industrials – 1.7% | |
Guanay Finance Ltd. | | | | | | | | |
6.000%, 12–15–20 (A) | | $ | 1,306 | | | $ | 1,334 | |
LATAM Airlines Group S.A. | | | | | | | | |
7.250%,
6–9–20 (A) | | | 1,500 | | | | 1,537 | |
| | | | | | | | |
| | | | | | | 2,871 | |
| | | | | | | | |
| |
Materials – 2.4% | |
Inversiones CMPC S.A. (GTD by Empresas CMPC S.A.): | | | | | | | | |
4.750%,
1–19–18 (A) | | | 2,925 | | | | 2,998 | |
4.375%,
5–15–23 (A) | | | 1,000 | | | | 1,043 | |
| | | | | | | | |
| | | | | | | 4,041 | |
| | | | | | | | |
| |
Total Chile – 4.1% | | | | 6,912 | |
Columbia | |
| |
Energy – 1.2% | |
Empresas Publicas de Medellin E.S.P. | | | | | | | | |
8.375%,
2–1–21 (C) | | COP | 6,300,000 | | | | 2,106 | |
| | | | | | | | |
| |
Financials – 1.0% | |
Banco de Bogota S.A. | | | | | | | | |
5.000%,
1–15–17 (A) | | $ | 1,600 | | | | 1,612 | |
| | | | | | | | |
| |
Utilities – 1.4% | |
Emgesa S.A. E.S.P. | | | | | | | | |
8.750%,
1–25–21 (C) | | COP | 6,930,000 | | | | 2,377 | |
| | | | | | | | |
| |
Total Columbia – 3.6% | | | | 6,095 | |
France | |
| |
Financials – 0.8% | |
Societe Generale S.A. | | | | | | | | |
5.922%,
4–29–49 (A) | | $ | 1,350 | | | | 1,362 | |
| | | | | | | | |
| |
Total France – 0.8% | | | | 1,362 | |
Hong Kong | |
| |
Telecommunication Services – 0.6% | |
Hutchison Whampoa Ltd. | | | | | | | | |
1.625%,
10–31–17 (A) | | | 1,000 | | | | 1,001 | |
| | | | | | | | |
| |
Total Hong Kong – 0.6% | | | | 1,001 | |
India | |
| |
Financials – 0.7% | |
ICICI Bank Ltd. | | | | | | | | |
4.750%,
11–25–16 (A) | | | 1,250 | | | | 1,255 | |
| | | | | | | | |
| |
Industrials – 0.8% | |
Adani Ports and Special Economic Zone Ltd. | | | | | | | | |
3.500%,
7–29–20 (A) | | | 1,300 | | | | 1,317 | |
| | | | | | | | |
| |
Utilities – 0.2% | |
Tata Electric Co. | | | | | | | | |
8.500%, 8–19–17 | | | 250 | | | | 260 | |
| | | | | | | | |
| |
Total India – 1.7% | | | | 2,832 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 37 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Indonesia | |
| |
Utilities – 1.5% | |
Majapahit Holding B.V. | | | | | | | | |
7.750%, 10–17–16 | | $ | 2,500 | | | $ | 2,500 | |
| | | | | | | | |
| |
Total Indonesia – 1.5% | | | | 2,500 | |
Ireland | |
| |
Energy – 0.5% | |
Novatek Finance Ltd. | | | | | | | | |
7.750%,
2–21–17 (A)(C) | | RUB | 55,000 | | | | 868 | |
| | | | | | | | |
| |
Financials – 0.8% | |
MTS International Funding Ltd. | | | | | | | | |
5.000%, 5–30–23 (A) | | $ | 750 | | | | 783 | |
VEB Finance Ltd. | | | | | | | | |
5.375%, 2–13–17 (A) | | | 600 | | | | 606 | |
| | | | | | | | |
| | | | | | | 1,389 | |
| | | | | | | | |
| |
Industrials – 0.2% | |
Russian Railways via RZD Capital Ltd. | | | | | | | | |
8.300%, 4–2–19 (C) | | RUB | 19,000 | | | | 297 | |
| | | | | | | | |
| |
Telecommunication Services – 0.4% | |
Mobile TeleSystems OJSC | | | | | | | | |
5.000%, 5–30–23 | | $ | 700 | | | | 730 | |
| | | | | | | | |
| |
Total Ireland – 1.9% | | | | 3,284 | |
Jamaica | |
| |
Telecommunication Services – 0.4% | |
Digicel Group Ltd. | | | | | | | | |
6.000%, 4–15–21 (A) | | | 800 | | | | 712 | |
| | | | | | | | |
| |
Total Jamaica – 0.4% | | | | 712 | |
Luxembourg | |
| |
Consumer Discretionary – 1.0% | |
Altice S.A. | | | | | | | | |
7.625%, 2–15–25 (A) | | | 1,700 | | | | 1,749 | |
| | | | | | | | |
| |
Consumer Staples – 0.3% | |
Minerva Luxembourg S.A. | | | | | | | | |
6.500%, 9–20–26 (A) | | | 500 | | | | 491 | |
| | | | | | | | |
| |
Financials – 3.2% | |
OJSC Russian Agricultural Bank | | | | | | | | |
5.100%, 7–25–18 (A) | | | 2,950 | | | | 3,033 | |
VTB Capital S.A. | | | | | | | | |
6.000%, 4–12–17 (A) | | | 2,335 | | | | 2,378 | |
| | | | | | | | |
| | | | | | | 5,411 | |
| | | | | | | | |
| |
Information Technology – 1.7% | |
BC Luxco 1 S.A.: | | | | | | | | |
7.375%, 1–29–20 | | | 550 | | | | 571 | |
7.375%, 1–29–20 (A) | | | 2,200 | | | | 2,282 | |
| | | | | | | | |
| | | | | | | 2,853 | |
| | | | | | | | |
| |
Total Luxembourg – 6.2% | | | | 10,504 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Mexico | |
| |
Consumer Discretionary – 0.9% | |
Tenedora Nemak S.A. de C.V. | | | | | | | | |
5.500%, 2–28–23 (A) | | $ | 1,500 | | | $ | 1,528 | |
| | | | | | | | |
| |
Consumer Staples – 0.6% | |
Sigma Alimentos S.A. de C.V. | | | | | | | | |
5.625%, 4–14–18 (A) | | | 1,000 | | | | 1,055 | |
| | | | | | | | |
| |
Materials – 3.8% | |
C5 Capital (SPV) Ltd. | | | | | | | | |
5.115%,
12–29–49 (A)(D) | | | 1,600 | | | | 1,288 | |
CEMEX S.A.B. de C.V.: | | | | | | | | |
6.500%, 12–10–19 (A) | | | 3,600 | | | | 3,816 | |
7.250%, 1–15–21 (A) | | | 1,200 | | | | 1,278 | |
| | | | | | | | |
| | | | | | | 6,382 | |
| | | | | | | | |
| |
Total Mexico – 5.3% | | | | 8,965 | |
Netherlands | |
| |
Consumer Discretionary – 1.0% | |
VTR Finance B.V. | | | | | | | | |
6.875%, 1–15–24 (A) | | | 1,680 | | | | 1,739 | |
| | | | | | | | |
| |
Consumer Staples – 0.6% | |
Marfrig Holdings (Europe) B.V.: | | | | | | | | |
6.875%, 6–24–19 (A) | | | 500 | | | | 509 | |
8.000%, 6–8–23 (A) | | | 550 | | | | 563 | |
| | | | | | | | |
| | | | | | | 1,072 | |
| | | | | | | | |
| |
Energy – 1.0% | |
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.): | | | | | | | | |
4.875%, 3–17–20 | | | 1,375 | | | | 1,389 | |
8.375%, 5–23–21 | | | 300 | | | | 329 | |
| | | | | | | | |
| | | | | | | 1,718 | |
| | | | | | | | |
| |
Materials – 0.4% | |
Cimpor Financial Operations B.V. (GTD by InterCement Participacoes S.A. and InterCement Brasil S.A.) | | | | | | | | |
5.750%, 7–17–24 (A) | | | 850 | | | | 727 | |
| | | | | | | | |
| |
Telecommunication Services – 0.3% | |
VimpleCom Holdings B.V. | | | | | | | | |
9.000%,
2–13–18 (A)(C) | | RUB | 25,000 | | | | 395 | |
| | | | | | | | |
| |
Utilities – 1.9% | |
Listrindo Capital B.V. | | | | | | | | |
6.950%, 2–21–19 (A) | | $ | 2,550 | | | | 2,642 | |
Majapahit Holding B.V. | | | | | | | | |
7.750%, 1–20–20 (A) | | | 500 | | | | 575 | |
| | | | | | | | |
| | | | | | | 3,217 | |
| | | | | | | | |
| |
Total Netherlands – 5.2% | | | | 8,868 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Panama | |
| |
Financials – 1.6% | |
Banco Latinoamericano de Comercio Exterior S.A. | | | | | | | | |
3.750%, 4–4–17 (A) | | $ | 2,700 | | | $ | 2,717 | |
| | | | | | | | |
| |
Total Panama – 1.6% | | | | 2,717 | |
Peru | |
| |
Real Estate – 0.8% | |
InRetail Shopping Malls | | | | | | | | |
5.250%, 10–10–21 (A) | | | 1,300 | | | | 1,352 | |
| | | | | | | | |
| |
Total Peru – 0.8% | | | | 1,352 | |
Russia | |
| |
Materials – 0.7% | |
Uralkali Finance Ltd. | | | | | | | | |
3.723%, 4–30–18 (A) | | | 1,100 | | | | 1,097 | |
| | | | | | | | |
| |
Total Russia – 0.7% | | | | 1,097 | |
Singapore | |
| |
Consumer Staples – 2.3% | |
Olam International Ltd.: | | | | | | | | |
5.750%, 9–20–17 | | | 1,150 | | | | 1,174 | |
7.500%, 8–12–20 | | | 2,500 | | | | 2,790 | |
| | | | | | | | |
| | | | | | | 3,964 | |
| | | | | | | | |
| |
Telecommunication Services – 0.9% | |
TBG Global Pte. Ltd. | | | | | | | | |
4.625%, 4–3–18 (A) | | | 1,500 | | | | 1,519 | |
| | | | | | | | |
| |
Total Singapore – 3.2% | | | | 5,483 | |
Spain | |
| |
Financials – 1.0% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | | | | | | |
9.000%, 5–29–49 | | | 1,600 | | | | 1,638 | |
| | | | | | | | |
| |
Total Spain – 1.0% | | | | 1,638 | |
United Arab Emirates | |
| |
Financials – 1.2% | |
ICICI Bank Ltd.: | | | | | | | | |
4.800%, 5–22–19 (A) | | | 500 | | | | 533 | |
3.500%, 3–18–20 (A) | | | 1,400 | | | | 1,448 | |
| | | | | | | | |
| | | | | | | 1,981 | |
| | | | | | | | |
| |
Total United Arab Emirates – 1.2% | | | | 1,981 | |
United Kingdom | | | | | | | | |
| |
Financials – 6.3% | |
Barclays plc | | | | | | | | |
8.250%, 12–29–49 | | | 1,500 | | | | 1,498 | |
HSBC Holdings plc | | | | | | | | |
5.625%, 12–29–49 | | | 1,200 | | | | 1,185 | |
| | | | | | |
| 38 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Financials (Continued) | |
Royal Bank of Scotland Group plc (The) | | | | | | | | |
7.640%, 3–29–49 | | $ | 2,000 | | | $ | 1,940 | |
State Bank of India: | | | | | | | | |
4.125%, 8–1–17 (A) | | | 1,200 | | | | 1,223 | |
3.250%, 4–18–18 (A) | | | 3,750 | | | | 3,822 | |
3.622%, 4–17–19 (A) | | | 1,000 | | | | 1,036 | |
| | | | | | | | |
| | | | | | | 10,704 | |
| | | | | | | | |
| |
Materials – 0.6% | |
Vedanta Resources plc | | | | | | | | |
6.000%, 1–31–19 (A) | | | 1,050 | | | | 1,039 | |
| | | | | | | | |
| | |
Total United Kingdom – 6.9% | | | | | | | 11,743 | |
United States | | | | | | | | |
| |
Consumer Discretionary – 0.8% | |
BakerCorp International, Inc. | | | | | | | | |
8.250%, 6–1–19 | | | 725 | | | | 585 | |
Globo Comunicacoe e Participacoes S.A. | | | | | | | | |
5.307%, 5–11–22 (A) | | | 850 | | | | 861 | |
| | | | | | | | |
| | | | | | | 1,446 | |
| | | | | | | | |
| |
Consumer Staples – 0.8% | |
SABMiller Holdings, Inc. | | | | | | | | |
2.200%, 8–1–18 (A) | | | 854 | | | | 865 | |
Simmons Foods, Inc. | | | | | | | | |
7.875%, 10–1–21 (A) | | | 475 | | | | 474 | |
| | | | | | | | |
| | | | | | | 1,339 | |
| | | | | | | | |
| |
Energy – 1.0% | |
Brand Energy & Infrastructure Services | | | | | | | | |
8.500%, 12–1–21 (A) | | | 1,300 | | | | 1,300 | |
PBF Holding Co. LLC | | | | | | | | |
8.250%, 2–15–20 | | | 425 | | | | 438 | |
| | | | | | | | |
| | | | | | | 1,738 | |
| | | | | | | | |
| | |
Financials – 1.5% | | | | | | | | |
Citigroup, Inc. | | | | | | | | |
8.400%, 4–29–49 | | | 1,250 | | | | 1,372 | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp. | | | | | | | | |
3.480%, 6–1–19 (A) | | | 450 | | | | 463 | |
Wells Fargo & Co. | | | | | | | | |
7.980%, 3–29–49 | | | 750 | | | | 784 | |
| | | | | | | | |
| | | | | | | 2,619 | |
| | | | | | | | |
| |
Health Care – 0.4% | |
Fresenius U.S. Finance II, Inc. | | | | | | | | |
4.500%, 1–15–23 (A) | | | 675 | | | | 704 | |
| | | | | | | | |
| |
Industrials – 1.0% | |
TransDigm, Inc. (GTD by TransDigm Group, Inc.) | | | | | | | | |
6.000%, 7–15–22 | | | 1,607 | | | | 1,695 | |
| | | | | | | | |
| |
Information Technology – 2.5% | |
Alliance Data Systems Corp. | | | | | | | | |
5.250%, 12–1–17 (A) | | | 3,300 | | | | 3,366 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Information Technology (Continued) | |
Micron Technology, Inc. | | | | | | | | |
5.875%, 2–15–22 | | $ | 850 | | | $ | 872 | |
| | | | | | | | |
| | | | | | | 4,238 | |
| | | | | | | | |
| |
Materials – 0.7% | |
Hillman Group, Inc. (The) | | | | | | | | |
6.375%, 7–15–22 (A) | | | 1,218 | | | | 1,142 | |
| | | | | | | | |
| |
Real Estate – 1.2% | |
Aircastle Ltd. | | | | | | | | |
4.625%, 12–15–18 | | | 1,900 | | | | 1,981 | |
| | | | | | | | |
| |
Telecommunication Services – 3.2% | |
American Tower Corp. | | | | | | | | |
3.400%, 2–15–19 | | | 1,400 | | | | 1,455 | |
T-Mobile USA, Inc. | | | | | | | | |
6.000%, 3–1–23 | | | 2,977 | | | | 3,180 | |
Verizon Communications, Inc. | | | | | | | | |
2.625%, 2–21–20 | | | 697 | | | | 717 | |
| | | | | | | | |
| | | | | | | 5,352 | |
| | | | | | | | |
| |
Total United States – 13.1% | | | | 22,254 | |
| |
TOTAL CORPORATE DEBT
SECURITIES – 69.0% | | | $ | 116,955 | |
(Cost: $123,589) | | | | | | | | |
| | |
OTHER GOVERNMENT
SECURITIES (E) | | | | | | |
Argentina – 1.1% | |
Province of Buenos Aires | | | | | | | | |
9.950%, 6–9–21 | | | 1,596 | | | | 1,836 | |
| | | | | | | | |
| |
Russia – 0.7% | |
Russian Federation | | | | | | | | |
3.500%, 1–16–19 (A) | | | 1,200 | | | | 1,225 | |
| | | | | | | | |
| |
Supranational – 0.5% | |
Central American Bank for Economic Integration | | | | | | | | |
3.875%, 2–9–17 (A) | | | 800 | | | | 806 | |
| | | | | | | | |
| |
TOTAL OTHER GOVERNMENT
SECURITIES – 2.3% | | | $ | 3,867 | |
(Cost: $3,505) | | | | | | | | |
| |
| LOANS (D) | |
United States | | | | | | | | |
| |
Energy – 0.1% | |
Empresas ICA S.A. | | | | | | | | |
9.300%, 6–20–17 (B) | | | 942 | | | | 75 | |
| | | | | | | | |
| |
Industrials – 1.5% | |
TransDigm, Inc.: | | | | | | | | |
3.750%, 2–28–20 | | | 486 | | | | 485 | |
3.838%, 2–28–20 | | | 2,128 | | | | 2,127 | |
| | | | | | | | |
| | | | | | | 2,612 | |
| | | | | | | | |
| | | | | | | | |
| LOANS (D) (Continued) | | Principal | | | Value | |
Information Technology – 0.4% | |
Magic Newco LLC | | | | | | | | |
5.000%, 12–12–18 | | $ | 738 | | | $ | 739 | |
| | | | | | | | |
| |
Materials – 0.5% | |
BakerCorp International, Inc. | | | | | | | | |
4.250%, 2–7–20 | | | 882 | | | | 756 | |
| | | | | | | | |
| | |
Total United States – 2.5% | | | | | | | 4,182 | |
| | | | | | | 4,182 | |
| | | | | | | | |
| | |
TOTAL LOANS – 2.5% | | | | | | $ | 4,182 | |
(Cost: $5,160) | | | | | | | | |
| | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS | | | | | | |
United States – 0.1% | |
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | | | | | | | | |
4.000%, 7–15–23 (F) | | | — | * | | | — | * |
4.000%, 2–15–24 (F) | | | 75 | | | | 3 | |
4.000%, 4–15–24 (F) | | | 138 | | | | 11 | |
5.500%, 1–15–38 (F) | | | 326 | | | | 60 | |
Federal National Mortgage Association Fixed Rate Pass-Through Certificates | | | | | | | | |
5.000%, 3–1–22 | | | 41 | | | | 43 | |
| | | | | | | | |
| | | | | | | 117 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 0.1% | | | $ | 117 | |
(Cost: $1,229) | | | | | | | | |
| | |
UNITED STATES GOVERNMENT
OBLIGATIONS | | | | | | |
United States – 16.0% | |
U.S. Treasury Bonds | | | | | | | | |
2.250%, 11–15–25 | | | 1,800 | | | | 1,901 | |
U.S. Treasury Notes: | | | | | | | | |
0.875%, 2–28–17 | | | 9,000 | | | | 9,019 | |
3.500%, 5–15–20 | | | 1,980 | | | | 2,154 | |
2.625%, 11–15–20 | | | 4,500 | | | | 4,777 | |
2.125%, 8–15–21 | | | 3,500 | | | | 3,655 | |
1.750%, 5–15–22 | | | 5,475 | | | | 5,613 | |
| | | | | | | | |
| | | | | | | 27,119 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 16.0% | | | $ | 27,119 | |
(Cost: $26,280) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (G) – 2.3% | |
J.M. Smucker Co. (The) | | | | | | | | |
0.700%, 10–3–16 | | | 3,987 | | | | 3,987 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 39 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Master Note – 1.0% | | | | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (H) | | $ | 1,627 | | | $ | 1,627 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 3.3% | | | $ | 5,614 | |
(Cost: $5,614) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 98.8% | | | $ | 167,430 | |
(Cost: $176,967) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.2% | | | | 2,001 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 169,431 | |
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, 2016 the total value of these securities amounted to $79,478 or 46.9% of net assets. |
| (B) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
| (C) | Principal amounts are denominated in the indicated foreign currency, where applicable (COP - Columbian Peso and RUB - Russian Ruble). |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (E) | Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
| (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, 2016. |
| (H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| British Pound | | | 1,500 | | | U.S. Dollar | | | 1,968 | | | 10–26–16 | | Barclays Capital, Inc. | | $ | 22 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 9,576 | | | $ | — | | | $ | — | |
Corporate Debt Securities | | | — | | | | 116,955 | | | | — | |
Other Government Securities | | | — | | | | 3,867 | | | | — | |
Loans | | | — | | | | 4,107 | | | | 75 | |
United States Government Agency Obligations | | | — | | | | 117 | | | | — | |
United States Government Obligations | | | — | | | | 27,119 | | | | — | |
Short-Term Securities | | | — | | | | 5,614 | | | | — | |
Total | | $ | 9,576 | | | $ | 157,779 | | | $ | 75 | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 22 | | | $ | — | |
| | | | | | |
| 40 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
During the period ended September 30, 2016, securities totaling $755 were transferred from Level 3 to Level 2 due to increased availability of observable market data due to increased market activity or information for these securities. Transfers out of Level 3 represent the values as of the beginning of the reporting period. 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
REMIC = Real Estate Mortgage Investment Conduit
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
Financials | | | 20.3% | |
United States Government and Government Agency Obligations | | | 16.1% | |
Materials | | | 11.2% | |
Industrials | | | 7.9% | |
Energy | | | 7.6% | |
Utilities | | | 7.3% | |
Telecommunication Services | | | 6.5% | |
Information Technology | | | 5.6% | |
Consumer Staples | | | 4.6% | |
Consumer Discretionary | | | 3.7% | |
Other Government Securities | | | 2.3% | |
Real Estate | | | 2.0% | |
Health Care | | | 0.4% | |
Other+ | | | 4.5% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 41 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY GLOBAL EQUITY INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 98.8% | |
Health Care | | | 15.9% | |
Consumer Staples | | | 15.2% | |
Telecommunication Services | | | 13.4% | |
Energy | | | 12.9% | |
Consumer Discretionary | | | 9.4% | |
Industrials | | | 7.6% | |
Utilities | | | 6.4% | |
Financials | | | 6.2% | |
Information Technology | | | 6.1% | |
Materials | | | 4.8% | |
Real Estate | | | 0.9% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 1.2% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Equity
Income Funds | | Rank | | Percentile | |
1 Year | | 155/170 | | | 91 | |
3 Year | | 82/143 | | | 57 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Country Weightings
| | | | |
Europe | | | 53.2% | |
United Kingdom | | | 20.3% | |
France | | | 10.2% | |
Netherlands | | | 4.8% | |
Spain | | | 4.6% | |
Norway | | | 3.6% | |
Other Europe | | | 9.7% | |
North America | | | 35.7% | |
United States | | | 32.5% | |
Other North America | | | 3.2% | |
Pacific Basin | | | 7.5% | |
Japan | | | 3.9% | |
Other Pacific Basin | | | 3.6% | |
Other | | | 2.4% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 1.2% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Pfizer, Inc. | | United States | | Health Care | | Pharmaceuticals |
AT&T, Inc. | | United States | | Telecommunication Services | | Integrated Telecommunication Services |
Johnson & Johnson | | United States | | Health Care | | Pharmaceuticals |
Merck & Co., Inc. | | United States | | Health Care | | Pharmaceuticals |
Total S.A. | | France | | Energy | | Integrated Oil & Gas |
Marine Harvest ASA | | Norway | | Consumer Staples | | Packaged Foods & Meats |
Royal Dutch Shell plc, Class A | | United Kingdom | | Energy | | Integrated Oil & Gas |
Microsoft Corp. | | United States | | Information Technology | | Systems Software |
Chevron Corp. | | United States | | Energy | | Integrated Oil & Gas |
QUALCOMM, Inc. | | United States | | Information Technology | | Semiconductors |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 42 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Australia | |
| |
Materials – 1.0% | |
Amcor Ltd. | | | 314 | | | $ | 3,641 | |
| | | | | | | | |
| |
Telecommunication Services – 1.1% | |
Telstra Corp. Ltd. ADR | | | 943 | | | | 3,738 | |
| | | | | | | | |
| |
Total Australia – 2.1% | | | | 7,379 | |
Canada | |
| |
Energy – 1.4% | |
Inter Pipeline Ltd. | | | 239 | | | | 5,050 | |
| | | | | | | | |
| |
Financials – 1.8% | |
Bank of Montreal | | | 94 | | | | 6,163 | |
| | | | | | | | |
| |
Total Canada – 3.2% | | | | 11,213 | |
China | |
| |
Consumer Discretionary – 1.5% | |
ANTA Sports Products Ltd. | | | 1,921 | | | | 5,212 | |
| | | | | | | | |
| |
Total China – 1.5% | | | | 5,212 | |
France | |
| |
Energy – 2.8% | |
Total S.A. | | | 210 | | | | 9,935 | |
| | | | | | | | |
| |
Industrials – 2.7% | |
Safran | | | 49 | | | | 3,498 | |
Schneider Electric S.A. | | | 27 | | | | 1,896 | |
Vinci | | | 51 | | | | 3,915 | |
| | | | | | | | |
| | | | | | | 9,309 | |
| | | | | | | | |
| |
Real Estate – 0.9% | |
Unibail-Rodamco | | | 12 | | | | 3,179 | |
| | | | | | | | |
| |
Telecommunication Services – 1.9% | |
Orange S.A. | | | 419 | | | | 6,552 | |
| | | | | | | | |
| |
Utilities – 1.9% | |
ENGIE | | | 442 | | | | 6,843 | |
| | | | | | | | |
| |
Total France – 10.2% | | | | 35,818 | |
Ireland | |
| |
Materials – 1.3% | |
CRH plc | | | 135 | | | | 4,511 | |
| | | | | | | | |
| |
Total Ireland – 1.3% | | | | 4,511 | |
Israel | |
| |
Health Care – 1.3% | |
Teva Pharmaceutical Industries Ltd. ADR | | | 101 | | | | 4,640 | |
| | | | | | | | |
| |
Telecommunication Services – 1.1% | |
Bezeq – Israel Telecommunication Corp. Ltd. (The) | | | 2,037 | | | | 3,844 | |
| | | | | | | | |
| |
Total Israel – 2.4% | | | | 8,484 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Italy | |
| |
Energy – 1.7% | |
Eni S.p.A. | | | 405 | | | $ | 5,837 | |
| | | | | | | | |
| |
Industrials – 0.9% | |
Atlantia S.p.A. | | | 127 | | | | 3,224 | |
| | | | | | | | |
| |
Total Italy – 2.6% | | | | 9,061 | |
Japan | |
| |
Consumer Discretionary – 2.7% | |
Bridgestone Corp. | | | 121 | | | | 4,421 | |
Sekisui House Ltd. | | | 308 | | | | 5,189 | |
| | | | | | | | |
| | | | | | | 9,610 | |
| | | | | | | | |
| |
Telecommunication Services – 1.2% | |
Nippon Telegraph and Telephone Corp. | | | 91 | | | | 4,141 | |
| | | | | | | | |
| |
Total Japan – 3.9% | | | | 13,751 | |
Netherlands | |
| |
Consumer Discretionary – 0.5% | |
Koninklijke Philips Electronics N.V., Ordinary Shares | | | 65 | | | | 1,913 | |
| | | | | | | | |
| |
Consumer Staples – 2.0% | |
Unilever N.V., Certicaaten Van Aandelen | | | 152 | | | | 7,003 | |
| | | | | | | | |
| |
Financials – 1.2% | |
ING Groep N.V., Certicaaten Van Aandelen | | | 355 | | | | 4,383 | |
| | | | | | | | |
| |
Materials – 1.1% | |
Royal DSM Heerlen | | | 57 | | | | 3,833 | |
| | | | | | | | |
| |
Total Netherlands – 4.8% | | | | 17,132 | |
Norway | |
| |
Consumer Staples – 2.6% | |
Marine Harvest ASA | | | 503 | | | | 9,012 | |
| | | | | | | | |
| |
Telecommunication Services – 1.0% | | | | | |
Telenor ASA | | | 211 | | | | 3,620 | |
| | | | | | | | |
| |
Total Norway – 3.6% | | | | 12,632 | |
Russia | |
| |
Energy – 2.0% | |
PJSC LUKOIL ADR | | | 148 | | | | 7,192 | |
| | | | | | | | |
| |
Total Russia – 2.0% | | | | 7,192 | |
Spain | |
| |
Financials – 1.5% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | 855 | | | | 5,169 | |
| | | | | | | | |
| |
Utilities – 3.1% | |
Enagas S.A. | | | 128 | | | | 3,857 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Utilities (Continued) | |
Iberdrola S.A. | | | 1,037 | | | $ | 7,053 | |
| | | | | | | | |
| | | | | | | 10,910 | |
| | | | | | | | |
| |
Total Spain – 4.6% | | | | 16,079 | |
Sweden | |
| |
Telecommunication Services – 1.0% | |
TeliaSonera AB | | | 831 | | | | 3,720 | |
| | | | | | | | |
| |
Total Sweden – 1.0% | | | | 3,720 | |
Switzerland | |
| |
Consumer Staples – 1.4% | |
Nestle S.A., Registered Shares | | | 62 | | | | 4,885 | |
| | | | | | | | |
| |
Health Care – 1.4% | |
Roche Holdings AG, Genusscheine | | | 20 | | | | 4,865 | |
| | | | | | | | |
| |
Total Switzerland – 2.8% | | | | 9,750 | |
United Kingdom | |
| |
Consumer Discretionary – 3.8% | |
Bellway plc | | | 121 | | | | 3,700 | |
UBM plc | | | 559 | | | | 5,174 | |
WPP Group plc | | | 188 | | | | 4,427 | |
| | | | | | | | |
| | | | | | | 13,301 | |
| | | | | | | | |
| |
Consumer Staples – 4.6% | |
British American Tobacco plc | | | 82 | | | | 5,236 | |
Diageo plc | | | 151 | | | | 4,329 | |
Imperial Tobacco Group plc | | | 132 | | | | 6,789 | |
| | | | | | | | |
| | | | | | | 16,354 | |
| | | | | | | | |
| |
Energy – 2.5% | |
Royal Dutch Shell plc, Class A | | | 359 | | | | 8,899 | |
| | | | | | | | |
| |
Financials – 1.7% | |
HSBC Holdings plc | | | 578 | | | | 4,333 | |
Prudential plc | | | 99 | | | | 1,759 | |
| | | | | | | | |
| | | | | | | 6,092 | |
| | | | | | | | |
| |
Health Care – 2.0% | |
AstraZeneca plc | | | 106 | | | | 6,894 | |
| | | | | | | | |
| |
Industrials – 1.5% | |
BAE Systems plc | | | 752 | | | | 5,106 | |
| | | | | | | | |
| |
Telecommunication Services – 2.8% | |
BT Group plc | | | 850 | | | | 4,287 | |
Vodafone Group plc | | | 1,882 | | | | 5,408 | |
| | | | | | | | |
| | | | | | | 9,695 | |
| | | | | | | | |
| |
Utilities – 1.4% | |
National Grid plc | | | 355 | | | | 5,020 | |
| | | | | | | | |
| |
Total United Kingdom – 20.3% | | | | 71,361 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 43 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
United States | |
| |
Consumer Discretionary – 0.9% | |
Omnicom Group, Inc. | | | 38 | | | $ | 3,221 | |
| | | | | | | | |
| |
Consumer Staples – 4.6% | |
Altria Group, Inc. | | | 72 | | | | 4,572 | |
Philip Morris International, Inc. | | | 50 | | | | 4,824 | |
Procter & Gamble Co. (The) | | | 76 | | | | 6,865 | |
| | | | | | | | |
| | | | | | | 16,261 | |
| | | | | | | | |
| |
Energy – 2.5% | |
Chevron Corp. | | | 83 | | | | 8,574 | |
| | | | | | | | |
| |
Health Care – 11.2% | |
Eli Lilly and Co. | | | 58 | | | | 4,648 | |
Johnson & Johnson | | | 96 | | | | 11,284 | |
Merck & Co., Inc. | | | 171 | | | | 10,697 | |
Pfizer, Inc. | | | 380 | | | | 12,860 | |
| | | | | | | | |
| | | | | | | 39,489 | |
| | | | | | | | |
| |
Industrials – 2.5% | |
Eaton Corp. | | | 63 | | | | 4,107 | |
Lockheed Martin Corp. | | | 20 | | | | 4,749 | |
| | | | | | | | |
| | | | | | | 8,856 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Information Technology – 6.1% | |
Cisco Systems, Inc. | | | 162 | | | $ | 5,127 | |
Microsoft Corp. | | | 154 | | | | 8,866 | |
QUALCOMM, Inc. | | | 110 | | | | 7,562 | |
| | | | | | | | |
| | | | | | | 21,555 | |
| | | | | | | | |
| | |
Materials – 1.4% | | | | | | | | |
International Paper Co. | | | 105 | | | | 5,031 | |
| | | | | | | | |
| |
Telecommunication Services – 3.3% | | | | | |
AT&T, Inc. | | | 287 | | | | 11,670 | |
| | | | | | | | |
| |
Total United States – 32.5% | | | | 114,657 | |
| |
TOTAL COMMON STOCKS – 98.8% | | | $ | 347,952 | |
(Cost: $331,579) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (A) – 3.0% | | | | | |
Campbell Soup Co. | | | | | | | | |
0.590%, 10–3–16 | | $ | 2,833 | | | | 2,833 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Paper (A) (Continued) | |
NBCUniversal Enterprise, Inc. | | | | | | | | |
0.790%, 10–19–16 | | $ | 4,000 | | | $ | 3,998 | |
Wisconsin Electric Power Co. | | | | | | | | |
0.450%, 10–3–16 | | | 3,652 | | | | 3,652 | |
| | | | | | | | |
| | | | | | | 10,483 | |
| | | | | | | | |
| | |
Master Note – 0.2% | | | | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (B) | | | 694 | | | | 694 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 3.2% | | | $ | 11,177 | |
(Cost: $11,178) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 102.0% | | | $ | 359,129 | |
(Cost: $342,757) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (2.0)% | | | | (7,047 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 352,082 | |
Notes to Schedule of Investments
| (A) | Rate shown is the yield to maturity at September 30, 2016. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| Australian Dollar | | | 9,073 | | | U.S. Dollar | | | 6,941 | | | | 10–26–16 | | | Citibank N.A. | | $ | 2 | | | $ | — | |
| British Pound | | | 20,804 | | | U.S. Dollar | | | 27,284 | | | | 10–26–16 | | | Citibank N.A. | | | 307 | | | | — | |
| Euro | | | 39,595 | | | U.S. Dollar | | | 44,587 | | | | 10–26–16 | | | State Street Global Markets | | | 60 | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 369 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| 44 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL EQUITY INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 33,257 | | | $ | — | | | $ | — | |
Consumer Staples | | | 53,515 | | | | — | | | | — | |
Energy | | | 45,487 | | | | — | | | | — | |
Financials | | | 21,807 | | | | — | | | | — | |
Health Care | | | 55,888 | | | | — | | | | — | |
Industrials | | | 26,495 | | | | — | | | | — | |
Information Technology | | | 21,555 | | | | — | | | | — | |
Materials | | | 17,016 | | | | — | | | | — | |
Real Estate | | | 3,179 | | | | — | | | | — | |
Telecommunication Services | | | 43,136 | | | | 3,844 | | | | — | |
Utilities | | | 22,773 | | | | — | | | | — | |
Total Common Stocks | | $ | 344,108 | | | $ | 3,844 | | | $ | — | |
Short-Term Securities | | | — | | | | 11,177 | | | | — | |
Total | | $ | 344,108 | | | $ | 15,021 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 369 | | | $ | — | |
During the period ended September 30, 2016, securities totaling $4,693 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. Transfers out of Level 1 represent the values as of the beginning of the reporting period.
The following acronym is used throughout this schedule:
ADR = American Depositary Receipts
| | | | |
Market Sector Diversification | |
(as a % of net assets) | |
Health Care | | | 15.9% | |
Consumer Staples | | | 15.2% | |
Telecommunication Services | | | 13.4% | |
Energy | | | 12.9% | |
Consumer Discretionary | | | 9.4% | |
Industrials | | | 7.6% | |
Utilities | | | 6.4% | |
Financials | | | 6.2% | |
Information Technology | | | 6.1% | |
Materials | | | 4.8% | |
Real Estate | | | 0.9% | |
Other+ | | | 1.2% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 45 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY GLOBAL GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 92.3% | |
Information Technology | | | 29.4% | |
Health Care | | | 18.4% | |
Consumer Discretionary | | | 17.9% | |
Industrials | | | 10.8% | |
Consumer Staples | | | 9.4% | |
Energy | | | 5.4% | |
Financials | | | 1.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 7.7% | |
Lipper Rankings
| | | | | | |
Category: Lipper Global Large-Cap
Growth Funds | | Rank | | Percentile | |
1 Year | | 97/122 | | | 79 | |
3 Year | | 93/103 | | | 90 | |
5 Year | | 65/70 | | | 92 | |
10 Year | | 42/51 | | | 81 | |
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 | | | 58.0% | |
United States | | | 55.8% | |
Other North America | | | 2.2% | |
Europe | | | 22.3% | |
Germany | | | 5.3% | |
United Kingdom | | | 4.3% | |
Netherlands | | | 4.2% | |
France | | | 3.9% | |
Other Europe | | | 4.6% | |
Pacific Basin | | | 8.3% | |
China | | | 7.1% | |
Other Pacific Basin | | | 1.2% | |
Other | | | 2.1% | |
South America | | | 1.6% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 7.7% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Amazon.com, In. | | United States | | Consumer Discretionary | | Internet & Direct Marketing Retail |
Visa, Inc., Class A | | United States | | Information Technology | | Data Processing & Outsourced Services |
Alphabet, Inc., Class C | | United States | | Information Technology | | Internet Software & Services |
MasterCard, Inc., Class A | | United States | | Information Technology | | Data Processing & Outsourced Services |
Allergan plc | | United States | | Health Care | | Pharmaceuticals |
Alibaba Group Holding Ltd. ADR | | China | | Information Technology | | Internet Software & Services |
Fresenius SE & Co. KGaA | | Germany | | Health Care | | Health Care Services |
Halliburton Co. | | United States | | Energy | | Oil & Gas Equipment & Services |
J.B. Hunt Transport Services, Inc. | | United States | | Industrials | | Trucking |
Facebook, Inc., Class A | | United States | | Information Technology | | Internet Software & Services |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 46 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Belgium | |
| |
Consumer Staples – 2.4% | |
InBev N.V. | | | 90 | | | $ | 11,823 | |
| | | | | | | | |
| |
Total Belgium – 2.4% | | | | 11,823 | |
Brazil | |
| |
Information Technology – 1.6% | |
MercadoLibre, Inc. | | | 41 | | | | 7,564 | |
| | | | | | | | |
| |
Total Brazil – 1.6% | | | | 7,564 | |
Canada | | | | | | | | |
| | |
Industrials – 1.0% | | | | | | | | |
Canadian Pacific Railway Ltd. | | | 32 | | | | 4,955 | |
| | | | | | | | |
| | |
Total Canada – 1.0% | | | | | | | 4,955 | |
China | | | | | | | | |
| |
Consumer Discretionary – 1.3% | |
JD.com, Inc. ADR (A) | | | 239 | | | | 6,236 | |
| | | | | | | | |
| |
Information Technology – 5.8% | |
Alibaba Group Holding Ltd. ADR (A) | | | 151 | | | | 15,968 | |
Tencent Holdings Ltd. | | | 442 | | | | 12,132 | |
| | | | | | | | |
| | | | | | | 28,100 | |
| | | | | | | | |
| | |
Total China – 7.1% | | | | | | | 34,336 | |
France | | | | | | | | |
| | |
Consumer Staples – 1.0% | | | | | | | | |
Pernod Ricard | | | 41 | | | | 4,897 | |
| | | | | | | | |
| | |
Industrials – 2.9% | | | | | | | | |
European Aeronautic Defence and Space Co. | | | 140 | | | | 8,478 | |
Safran | | | 76 | | | | 5,488 | |
| | | | | | | | |
| | | | | | | 13,966 | |
| | | | | | | | |
| | |
Total France – 3.9% | | | | | | | 18,863 | |
Germany | | | | | | | | |
| |
Consumer Discretionary – 1.5% | |
Continental AG | | | 34 | | | | 7,171 | |
| | | | | | | | |
| | |
Health Care – 3.1% | | | | | | | | |
Fresenius SE & Co. KGaA | | | 185 | | | | 14,777 | |
| | | | | | | | |
| | |
Industrials – 0.7% | | | | | | | | |
Siemens AG | | | 31 | | | | 3,643 | |
| | | | | | | | |
| | |
Total Germany – 5.3% | | | | | | | 25,591 | |
Ireland | | | | | | | | |
| | |
Health Care – 1.5% | | | | | | | | |
Medtronic plc | | | 85 | | | | 7,360 | |
| | | | | | | | |
| | |
Total Ireland – 1.5% | | | | | | | 7,360 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Israel | | | | | | | | |
| | |
Health Care – 2.1% | | | | | | | | |
Teva Pharmaceutical Industries Ltd. ADR | | | 220 | | | $ | 10,120 | |
| | | | | | | | |
| | |
Total Israel – 2.1% | | | | | | | 10,120 | |
Mexico | | | | | | | | |
| | |
Consumer Staples – 1.2% | | | | | | | | |
Wal-Mart de Mexico S.A.B. de C.V. | | | 2,686 | | | | 5,881 | |
| | | | | | | | |
| | |
Total Mexico – 1.2% | | | | | | | 5,881 | |
Netherlands | | | | | | | | |
| |
Consumer Discretionary – 1.1% | |
Koninklijke Philips Electronics N.V., Ordinary Shares | | | 169 | | | | 4,999 | |
| | | | | | | | |
| |
Information Technology – 3.1% | |
ASML Holding N.V., NY Registry Shares | | | 59 | | | | 6,498 | |
NXP Semiconductors N.V. (A) | | | 84 | | | | 8,593 | |
| | | | | | | | |
| | | | | | | 15,091 | |
| | | | | | | | |
| | |
Total Netherlands – 4.2% | | | | | | | 20,090 | |
South Korea | | | | | | | | |
| |
Information Technology – 1.2% | |
Samsung Electronics Co. Ltd. | | | 4 | | | | 5,615 | |
| | | | | | | | |
| | |
Total South Korea – 1.2% | | | | | | | 5,615 | |
Switzerland | | | | | | | | |
| | |
Industrials – 0.7% | | | | | | | | |
Adecco S.A. | | | 62 | | | | 3,486 | |
| | | | | | | | |
| | |
Total Switzerland – 0.7% | | | | | | | 3,486 | |
United Kingdom | | | | | | | | |
| |
Consumer Discretionary – 1.0% | |
Compass Group plc | | | 249 | | | | 4,815 | |
| | | | | | | | |
| | |
Consumer Staples – 1.8% | | | | | | | | |
Coca-Cola European Partners plc | | | 215 | | | | 8,585 | |
| | | | | | | | |
| | |
Financials – 1.0% | | | | | | | | |
Prudential plc | | | 266 | | | | 4,703 | |
| | | | | | | | |
| | |
Health Care – 0.5% | | | | | | | | |
Shire plc | | | 39 | | | | 2,498 | |
| | | | | | | | |
| | |
Total United Kingdom – 4.3% | | | | | | | 20,601 | |
United States | | | | | | | | |
| |
Consumer Discretionary – 13.0% | |
Amazon.com, Inc. (A) | | | 34 | | | | 28,209 | |
Home Depot, Inc. (The) | | | 70 | | | | 9,071 | |
Johnson Controls, Inc. | | | 237 | | | | 11,010 | |
Limited Brands, Inc. | | | 102 | | | | 7,252 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Consumer Discretionary (Continued) | |
Newell Rubbermaid, Inc. | | | 139 | | | $ | 7,335 | |
| | | | | | | | |
| | | | | | | 62,877 | |
| | | | | | | | |
| | |
Consumer Staples – 3.0% | | | | | | | | |
Coca-Cola Co. (The) | | | 169 | | | | 7,171 | |
Kraft Foods Group, Inc. | | | 83 | | | | 7,385 | |
| | | | | | | | |
| | | | | | | 14,556 | |
| | | | | | | | |
| | |
Energy – 5.4% | | | | | | | | |
EOG Resources, Inc. | | | 50 | | | | 4,840 | |
Halliburton Co. | | | 309 | | | | 13,883 | |
Schlumberger Ltd. | | | 91 | | | | 7,167 | |
| | | | | | | | |
| | | | | | | 25,890 | |
| | | | | | | | |
| | |
Health Care – 11.2% | | | | | | | | |
Allergan plc (A) | | | 74 | | | | 17,068 | |
Biogen, Inc. (A) | | | 20 | | | | 6,355 | |
Bristol-Myers Squibb Co. | | | 42 | | | | 2,282 | |
Gilead Sciences, Inc. | | | 69 | | | | 5,478 | |
HCA Holdings, Inc. (A) | | | 165 | | | | 12,512 | |
Thermo Fisher Scientific, Inc. | | | 67 | | | | 10,630 | |
| | | | | | | | |
| | | | | | | 54,325 | |
| | | | | | | | |
| | |
Industrials – 5.5% | | | | | | | | |
J.B. Hunt Transport Services, Inc. | | | 167 | | | | 13,526 | |
Kansas City Southern | | | 45 | | | | 4,165 | |
Rockwell Collins, Inc. | | | 104 | | | | 8,737 | |
| | | | | | | | |
| | | | | | | 26,428 | |
| | | | | | | | |
| |
Information Technology – 17.7% | |
Alphabet, Inc., Class C (A) | | | 27 | | | | 21,292 | |
Cognizant Technology Solutions Corp., Class A (A) | | | 164 | | | | 7,826 | |
Facebook, Inc., Class A (A) | | | 103 | | | | 13,224 | |
MasterCard, Inc., Class A | | | 181 | | | | 18,456 | |
Visa, Inc., Class A | | | 302 | | | | 24,985 | |
| | | | | | | | |
| | | | | | | 85,783 | |
| | | | | | | | |
| |
Total United States – 55.8% | | | | 269,859 | |
| |
TOTAL COMMON STOCKS – 92.3% | | | $ | 446,144 | |
(Cost: $377,415) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (B) – 6.5% | |
CVS Health Corp. | | | | | | | | |
0.700%, 10–3–16 | | $ | 7,359 | | | | 7,359 | |
Kroger Co. (The) | | | | | | | | |
0.630%, 10–3–16 | | | 10,000 | | | | 9,999 | |
McCormick & Co., Inc. | | | | | | | | |
0.500%, 10–3–16 | | | 5,000 | | | | 5,000 | |
Northern Illinois Gas Co. | | | | | | | | |
0.770%, 10–13–16 | | | 5,000 | | | | 4,999 | |
Wisconsin Gas LLC | | | | | | | | |
0.460%, 10–7–16 | | | 4,000 | | | | 3,999 | |
| | | | | | | | |
| | | | | | | 31,356 | |
| | | | | | �� | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 47 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Master Note – 1.0% | | | | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (C) | | $ | 4,763 | | | $ | 4,763 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 7.5% | | | $ | 36,119 | |
(Cost: $36,120) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.8% | | | $ | 482,263 | |
(Cost: $413,535) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.2% | | | | 891 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 483,154 | |
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, 2016. |
| (C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| Euro | | | 32,600 | | | U.S. Dollar | | | 36,713 | | | 10–26–16 | | Citibank N.A. | | $ | 53 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 446,144 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 36,119 | | | | — | |
Total | | $ | 446,144 | | | $ | 36,119 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 53 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
ADR = American Depositary Receipts
| | | | | | |
| 48 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
Information Technology | | | 29.4% | |
Health Care | | | 18.4% | |
Consumer Discretionary | | | 17.9% | |
Industrials | | | 10.8% | |
Consumer Staples | | | 9.4% | |
Energy | | | 5.4% | |
Financials | | | 1.0% | |
Other+ | | | 7.7% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 49 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY GLOBAL INCOME ALLOCATION FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 57.0% | |
Financials | | | 14.0% | |
Industrials | | | 8.9% | |
Consumer Discretionary | | | 7.7% | |
Consumer Staples | | | 7.5% | |
Health Care | | | 4.1% | |
Information Technology | | | 3.7% | |
Energy | | | 3.2% | |
Telecommunication Services | | | 3.0% | |
Materials | | | 1.9% | |
Utilities | | | 1.5% | |
Real Estate | | | 1.5% | |
Bonds | | | 40.7% | |
Corporate Debt Securities | | | 32.3% | |
Loans | | | 3.8% | |
United States Government and Government Agency Obligations | | | 2.9% | |
Other Government Securities | | | 1.7% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.3% | |
Lipper Rankings
| | | | | | |
Category: Lipper Flexible Portfolio
Funds | | Rank | | Percentile | |
1 Year | | 227/604 | | | 38 | |
3 Year | | 271/443 | | | 62 | |
5 Year | | 218/324 | | | 68 | |
10 Year | | 104/140 | | | 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.
Country Weightings
| | | | |
North America | | | 45.0% | |
United States | | | 40.6% | |
Canada | | | 3.8% | |
Other North America | | | 0.6% | |
Europe | | | 39.1% | |
United Kingdom | | | 10.8% | |
Spain | | | 6.4% | |
France | | | 3.8% | |
Other Europe | | | 18.1% | |
Pacific Basin | | | 9.7% | |
Australia | | | 6.4% | |
Other Pacific Basin | | | 3.3% | |
South America | | | 2.5% | |
Other | | | 1.3% | |
Bahamas/Caribbean | | | 0.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.3% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Ferrovial S.A. | | Spain | | Industrials | | Construction & Engineering |
Sampo plc, A Shares | | Finland | | Financials | | Multi-Line Insurance |
Ares Capital Corp. | | United States | | Financials | | Asset Management & Custody Banks |
ProSiebenSat. 1 Media SE | | Germany | | Consumer Discretionary | | Broadcasting |
Caltex Australia Ltd. | | Australia | | Energy | | Oil & Gas Refining & Marketing |
Communications Sales & Leasing, Inc. | | United States | | Real Estate | | Specialized REITs |
Atlantica Yield plc | | Spain | | Utilities | | Independent Power Producers & Energy Traders |
Kraft Foods Group, Inc. | | United States | | Consumer Staples | | Packaged Foods & Meats |
National Australia Bank Ltd. | | Australia | | Financials | | Diversified Banks |
Limited Brands, Inc. | | United States | | Consumer Discretionary | | Apparel Retail |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 50 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Australia | | | | | | | | |
| | |
Energy – 1.5% | | | | | | | | |
Caltex Australia Ltd. | | | 425 | | | $ | 11,141 | |
| | | | | | | | |
| | |
Financials – 1.5% | | | | | | | | |
National Australia Bank Ltd. | | | 500 | | | | 10,665 | |
| | | | | | | | |
| | |
Industrials – 0.4% | | | | | | | | |
Spotless Group Holdings Ltd. | | | 3,930 | | | | 3,218 | |
| | | | | | | | |
| | |
Materials – 1.9% | | | | | | | | |
Amcor Ltd. | | | 483 | | | | 5,604 | |
Orora Ltd. | | | 3,500 | | | | 8,438 | |
| | | | | | | | |
| | | | | | | 14,042 | |
| | | | | | | | |
| |
Total Australia – 5.3% | | | | 39,066 | |
Belgium | | | | | | | | |
| | |
Consumer Staples – 1.2% | | | | | | | | |
Anheuser-Busch InBev S.A. ADR | | | 68 | | | | 8,936 | |
| | | | | | | | |
| |
Total Belgium – 1.2% | | | | 8,936 | |
Canada | | | | | | | | |
| | |
Energy – 1.7% | | | | | | | | |
Inter Pipeline Ltd. | | | 360 | | | | 7,601 | |
Vermilion Energy, Inc. | | | 129 | | | | 4,998 | |
| | | | | | | | |
| | | | | | | 12,599 | |
| | | | | | | | |
| |
Total Canada – 1.7% | | | | 12,599 | |
Denmark | | | | | | | | |
| | |
Financials – 1.1% | | | | | | | | |
Danske Bank A.S. | | | 270 | | | | 7,879 | |
| | | | | | | | |
| |
Total Denmark – 1.1% | | | | 7,879 | |
Finland | | | | | | | | |
| | |
Financials – 1.8% | | | | | | | | |
Sampo plc, A Shares | | | 300 | | | | 13,345 | |
| | | | | | | | |
| |
Information Technology – 1.2% | | | | | |
Nokia Corp., Series A ADR | | | 1,600 | | | | 9,264 | |
| | | | | | | | |
| |
Total Finland – 3.0% | | | | 22,609 | |
France | | | | | | | | |
| | |
Financials – 0.9% | | | | | | | | |
Axa S.A. | | | 318 | | | | 6,767 | |
| | | | | | | | |
| | |
Industrials – 1.0% | | | | | | | | |
Compagnie de Saint-Gobain | | | 163 | | | | 7,032 | |
| | | | | | | | |
| |
Telecommunication Services – 0.8% | |
Orange S.A. | | | 387 | | | | 6,057 | |
| | | | | | | | |
| |
Total France – 2.7% | | | | 19,856 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Germany | | | | | | | | |
| |
Consumer Discretionary – 1.6% | |
ProSiebenSat. 1 Media SE | | | 280 | | | $ | 11,990 | |
| | | | | | | | |
| | |
Industrials – 1.1% | | | | | | | | |
Deutsche Post AG | | | 250 | | | | 7,813 | |
| | | | | | | | |
| |
Total Germany – 2.7% | | | | 19,803 | |
Israel | | | | | | | | |
| | |
Health Care – 0.8% | | | | | | | | |
Teva Pharmaceutical Industries Ltd. ADR | | | 136 | | | | 6,257 | |
| | | | | | | | |
| |
Total Israel – 0.8% | | | | 6,257 | |
Italy | | | | | | | | |
| | |
Financials – 1.1% | | | | | | | | |
Banca Intesa S.p.A. | | | 3,000 | | | | 6,652 | |
Intesa Sanpaolo S.p.A. | | | 889 | | | | 1,862 | |
| | | | | | | | |
| | | | | | | 8,514 | |
| | | | | | | | |
| |
Total Italy – 1.1% | | | | 8,514 | |
Japan | | | | | | | | |
| |
Consumer Discretionary – 1.0% | |
Bridgestone Corp. | | | 200 | | | | 7,309 | |
| | | | | | | | |
| |
Total Japan – 1.0% | | | | 7,309 | |
New Zealand | | | | | | | | |
| |
Consumer Discretionary – 0.8% | |
SKYCITY Entertainment Group Ltd. | | | 1,779 | | | | 5,933 | |
| | | | | | | | |
| |
Total New Zealand – 0.8% | | | | 5,933 | |
Singapore | | | | | | | | |
| |
Consumer Discretionary – 0.4% | |
Asian Pay Television Trust | | | 8,571 | | | | 3,205 | |
| | | | | | | | |
| |
Telecommunication Services – 1.0% | |
Singapore Telecommunications Ltd. | | | 2,450 | | | | 7,133 | |
| | | | | | | | |
| |
Total Singapore – 1.4% | | | | 10,338 | |
Spain | | | | | | | | |
| | |
Industrials – 3.0% | | | | | | | | |
ACS Actividades de Construccion y Servicios S.A. | | | 253 | | | | 7,639 | |
Ferrovial S.A. | | | 691 | | | | 14,713 | |
| | | | | | | | |
| | | | | | | 22,352 | |
| | | | | | | | |
| | |
Utilities – 1.5% | | | | | | | | |
Atlantica Yield plc | | | 567 | | | | 10,785 | |
| | | | | | | | |
| |
Total Spain – 4.5% | | | | 33,137 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Switzerland | | | | | | | | |
| | |
Consumer Staples – 1.1% | | | | | | | | |
Nestle S.A., Registered Shares | | | 100 | | | $ | 7,879 | |
| | | | | | | | |
| | |
Industrials – 1.3% | | | | | | | | |
Adecco S.A. | | | 170 | | | | 9,572 | |
| | | | | | | | |
| |
Total Switzerland – 2.4% | | | | 17,451 | |
United Kingdom | | | | | | | | |
| |
Consumer Discretionary – 1.1% | |
Taylor Wimpey plc | | | 4,080 | | | | 8,150 | |
| | | | | | | | |
| | |
Consumer Staples – 1.2% | | | | | | | | |
Imperial Tobacco Group plc | | | 170 | | | | 8,755 | |
| | | | | | | | |
| | |
Financials – 2.2% | | | | | | | | |
Legal & General Group plc | | | 2,991 | | | | 8,478 | |
St. James’s Place plc | | | 625 | | | | 7,680 | |
| | | | | | | | |
| | | | | | | 16,158 | |
| | | | | | | | |
| | |
Industrials – 1.0% | | | | | | | | |
BAE Systems plc | | | 1,100 | | | | 7,471 | |
| | | | | | | | |
| |
Total United Kingdom – 5.5% | | | | 40,534 | |
United States | | | | | | | | |
| |
Consumer Discretionary – 2.8% | |
Limited Brands, Inc. | | | 150 | | | | 10,616 | |
McDonalds Corp. | | | 90 | | | | 10,382 | |
| | | | | | | | |
| | | | | | | 20,998 | |
| | | | | | | | |
| | |
Consumer Staples – 4.0% | | | | | | | | |
Kraft Foods Group, Inc. | | | 120 | | | | 10,741 | |
Philip Morris International, Inc. | | | 88 | | | | 8,533 | |
Procter & Gamble Co. (The) | | | 115 | | | | 10,321 | |
| | | | | | | | |
| | | | | | | 29,595 | |
| | | | | | | | |
| | |
Financials – 3.6% | | | | | | | | |
American Capital Agency Corp. | | | 400 | | | | 7,816 | |
Blackstone Mortgage Trust, Inc., Class A | | | 340 | | | | 10,005 | |
Fortress Transportation and Infrastructure Investors LLC | | | 698 | | | | 8,737 | |
| | | | | | | | |
| | | | | | | 26,558 | |
| | | | | | | | |
| | |
Health Care – 1.8% | | | | | | | | |
Bristol-Myers Squibb Co. | | | 106 | | | | 5,742 | |
Pfizer, Inc. | | | 220 | | | | 7,451 | |
| | | | | | | | |
| | | | | | | 13,193 | |
| | | | | | | | |
| | |
Industrials – 1.1% | | | | | | | | |
Lockheed Martin Corp. | | | 35 | | | | 8,390 | |
| | | | | | | | |
| |
Information Technology – 2.5% | |
Paychex, Inc. | | | 174 | | | | 10,086 | |
Texas Instruments, Inc. | | | 120 | | | | 8,422 | |
| | | | | | | | |
| | | | | | | 18,508 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 51 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate – 1.5% | | | | | | | | |
Communications Sales & Leasing, Inc. | | | 350 | | | $ | 10,994 | |
| | | | | | | | |
| |
Total United States – 17.3% | | | | 128,236 | |
| |
TOTAL COMMON STOCKS – 52.5% | | | $ | 388,457 | |
(Cost: $389,838) | | | | | | | | |
| | |
| INVESTMENT FUNDS | | | | | | |
United States – 1.8% | | | | | | | | |
Ares Capital Corp. | | | 861 | | | | 13,341 | |
| | | | | | | | |
| |
TOTAL INVESTMENT FUNDS – 1.8% | | | $ | 13,341 | |
(Cost: $14,861) | | | | | | | | |
| | |
| PREFERRED STOCKS | | | | | | |
Israel | | | | | | | | |
| | |
Health Care – 0.5% | | | | | | | | |
Teva Pharmaceutical Industries Ltd., Convertible,
7.000% | | | 5 | | | | 4,066 | |
| | | | | | | | |
| | |
Total Israel – 0.5% | | | | | | | 4,066 | |
United States | | | | | | | | |
| | |
Health Care – 1.0% | | | | | | | | |
Allergan plc, Convertible Series A, 5.500% | | | 9 | | | | 7,388 | |
| | | | | | | | |
| |
Telecommunication Services – 1.2% | |
Frontier Communications Corp., Convertible Series A,
11.125% | | | 104 | | | | 8,694 | |
| | | | | | | | |
| |
Total United States – 2.2% | | | | 16,082 | |
| |
TOTAL PREFERRED STOCKS – 2.7% | | | $ | 20,148 | |
(Cost: $22,839) | | | | | | | | |
| | |
| CORPORATE DEBT SECURITIES | | Principal | | | | |
Argentina | | | | | | | | |
| | |
Industrials – 0.7% | | | | | | | | |
Aeropuertos Argentina 2000 S.A.: | | | | | | | | |
10.750%, 12–1–20 | | $ | 3,868 | | | | 4,221 | |
10.750%, 12–1–20 (A) | | | 595 | | | | 649 | |
| | | | | | | | |
| | | | | | | 4,870 | |
| | | | | | | | |
| | |
Total Argentina – 0.7% | | | | | | | 4,870 | |
Australia | | | | | | | | |
| | |
Materials – 0.9% | | | | | | | | |
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC | | | | | | | | |
7.125%, 5–1–18 (A) | | | 1,028 | | | | 1,050 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Materials (Continued) | | | | | | | | |
FMG Resources Pty Ltd. | | | | | | | | |
6.875%,
4–1–22 (A) | | $ | 5,750 | | | $ | 5,950 | |
| | | | | | | | |
| | | | | | | 7,000 | |
| | | | | | | | |
| |
Total Australia – 0.9% | | | | 7,000 | |
Barbados | | | | | | | | |
| |
Consumer Discretionary – 0.1% | |
Columbus International, Inc. | | | | | | | | |
7.375%,
3–30–21 (A) | | | 1,000 | | | | 1,061 | |
| | | | | | | | |
| |
Total Barbados – 0.1% | | | | 1,061 | |
Brazil | | | | | | | | |
| |
Consumer Staples – 0.3% | | | | | |
AmBev International Finance Co. Ltd. | | | | | | | | |
9.500%,
7–24–17 (B)(C) | | BRL | 7,500 | | | | 2,295 | |
| | | | | | | | |
| | |
Materials – 0.6% | | | | | | | | |
Vale Overseas Ltd. | | | | | | | | |
6.250%, 8–10–26 | | $ | 4,375 | | | | 4,570 | |
| | | | | | | | |
| |
Total Brazil – 0.9% | | | | 6,865 | |
Canada | | | | | | | | |
| |
Information Technology – 0.9% | |
Kronos Acquisition Holdings, Inc. | | | | | | | | |
9.000%,
8–15–23 (A) | | | 6,250 | | | | 6,441 | |
| | | | | | | | |
| | |
Materials – 0.5% | | | | | | | | |
St. Mary’s Cement, Inc. | | | | | | | | |
5.750%,
1–28–27 (A) | | | 4,000 | | | | 3,944 | |
| | | | | | | | |
| |
Total Canada – 1.4% | | | | 10,385 | |
Columbia | | | | | | | | |
| | |
Energy – 0.2% | | | | | | | | |
Empresas Publicas de Medellin E.S.P. | | | | | | | | |
8.375%,
2–1–21 (B) | | COP | 3,888,000 | | | | 1,300 | |
| | | | | | | | |
| |
Total Columbia – 0.2% | | | | 1,300 | |
France | | | | | | | | |
| | |
Financials – 1.1% | | | | | | | | |
Societe Generale Group | | | | | | | | |
7.375%,
12–29–49 (A) | | $ | 1,000 | | | | 980 | |
Societe Generale S.A. | | | | | | | | |
8.250%,
11–29–49 | | | 7,000 | | | | 7,096 | |
| | | | | | | | |
| | | | | | | 8,076 | |
| | | | | | | | |
| |
Total France – 1.1% | | | | 8,076 | |
Ireland | | | | | | | | |
| | |
Energy – 0.1% | | | | | | | | |
Novatek Finance Ltd. | | | | | | | | |
7.750%,
2–21–17 (A)(B) | | RUB | 25,000 | | | | 395 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Financials – 0.7% | | | | | | | | |
Aquarius + Investments plc (GTD by Swiss Reinsurance Co. Ltd.) | | | | | | | | |
6.375%, 9–1–24 | | $ | 5,000 | | | $ | 5,233 | |
| | | | | | | | |
| | |
Industrials – 0.1% | | | | | | | | |
Russian Railways via RZD Capital Ltd. | | | | | | | | |
8.300%, 4–2–19 (B) | | RUB | 50,000 | | | | 782 | |
| | | | | | | | |
| | |
Total Ireland – 0.9% | | | | | | | 6,410 | |
Italy | | | | | | | | |
| | |
Financials – 0.4% | | | | | | | | |
Intesa Sanpaolo S.p.A. | | | | | | | | |
7.700%,
12–29–49 (A) | | $ | 3,000 | | | | 2,625 | |
| | | | | | | | |
| | |
Total Italy – 0.4% | | | | | | | 2,625 | |
Luxembourg | | | | | | | | |
| |
Consumer Discretionary – 1.6% | |
Altice Financing S.A. | | | | | | | | |
7.500%,
5–15–26 (A) | | | 2,612 | | | | 2,720 | |
Altice S.A. | | | | | | | | |
7.625%,
2–15–25 (A) | | | 9,188 | | | | 9,452 | |
| | | | | | | | |
| | | | | | | 12,172 | |
| | | | | | | | |
| |
Information Technology – 1.0% | |
BC Luxco 1 S.A. | | | | | | | | |
7.375%,
1–29–20 (A) | | | 7,000 | | | | 7,262 | |
| | | | | | | | |
| |
Total Luxembourg – 2.6% | | | | 19,434 | |
Mexico | | | | | | | | |
| | |
Financials – 0.3% | | | | | | | | |
Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. | | | | | | | | |
7.250%,
9–27–23 (A) | | | 2,150 | | | | 2,146 | |
| | | | | | | | |
| |
Telecommunication Services – 0.3% | |
America Movil S.A.B. de C.V. | | | | | | | | |
6.450%,
12–5–22 (B) | | MXN | 47,000 | | | | 2,361 | |
| | | | | | | | |
| | |
Total Mexico – 0.6% | | | | | | | 4,507 | |
Netherlands | | | | | | | | |
| | |
Energy – 1.6% | | | | | | | | |
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.) | | | | | | | | |
8.750%, 5–23–26 | | $ | 11,000 | | | | 12,155 | |
| | | | | | | | |
| | |
Materials – 0.6% | | | | | | | | |
Constellium N.V. | | | | | | | | |
8.000%,
1–15–23 (A) | | | 4,253 | | | | 4,285 | |
| | | | | | | | |
| |
Telecommunication Services – 0.1% | |
VimpleCom Holdings B.V. | | | | | | | | |
9.000%,
2–13–18 (A)(B) | | RUB | 50,000 | | | | 790 | |
| | | | | | | | |
| |
Total Netherlands – 2.3% | | | | 17,230 | |
| | | | | | |
| 52 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Norway | | | | | | | | |
| | |
Energy – 0.4% | | | | | | | | |
Det norske oljeselskap ASA | | | | | | | | |
10.250%,
5–27–22 (A) | | $ | 2,600 | | | $ | 2,886 | |
| | | | | | | | |
| | |
Total Norway – 0.4% | | | | | | | 2,886 | |
Singapore | |
| |
Consumer Staples – 0.0% | |
Olam International Ltd. | | | | | | | | |
6.000%, 8–10–18 (B) | | SGD | 250 | | | | 188 | |
| | | | | | | | |
| |
Total Singapore – 0.0% | | | | 188 | |
Spain | |
| |
Financials – 1.2% | |
Banco Bilbao Vizcaya Argentaria S.A. | | | | | | | | |
9.000%, 5–29–49 | | $ | 8,800 | | | | 9,012 | |
| | | | | | | | |
| |
Industrials – 0.7% | |
ACI Airport Sudamerica S.A. | | | | | | | | |
6.875%,
11–29–32 (A) | | | 5,000 | | | | 4,862 | |
| | | | | | | | |
| | |
Total Spain – 1.9% | | | | | | | 13,874 | |
United Kingdom | |
| |
Financials – 5.3% | |
Barclays plc | | | | | | | | |
8.250%, 12–29–49 | | | 11,085 | | | | 11,071 | |
Lloyds Banking Group plc | | | | | | | | |
7.500%, 4–30–49 | | | 5,000 | | | | 5,164 | |
Royal Bank of Scotland Group plc (The): | | | | | | | | |
7.640%, 3–29–49 | | | 11,000 | | | | 10,670 | |
7.500%, 12–29–49 | | | 8,000 | | | | 7,400 | |
Standard Chartered plc | | | | | | | | |
7.500%,
12–29–49 (A) | | | 5,000 | | | | 4,955 | |
| | | | | | | | |
| | | | | | | 39,260 | |
| | | | | | | | |
| |
Total United Kingdom – 5.3% | | | | 39,260 | |
United States | |
| |
Consumer Discretionary – 1.4% | |
BakerCorp International, Inc. | | | | | | | | |
8.250%, 6–1–19 | | | 6,000 | | | | 4,845 | |
L Brands, Inc. | | | | | | | | |
6.750%, 7–1–36 | | | 5,000 | | | | 5,378 | |
| | | | | | | | |
| | | | | | | 10,223 | |
| | | | | | | | |
| |
Energy – 1.8% | |
Energy Transfer Partners L.P. | | | | | | | | |
7.500%, 7–1–38 | | | 5,000 | | | | 5,743 | |
PBF Holding Co. LLC and PBF Finance Corp. | | | | | | | | |
7.000%, 11–15–23 (A) | | | 5,000 | | | | 4,713 | |
Whiting Petroleum Corp. | | | | | | | | |
6.500%, 10–1–18 | | | 3,000 | | | | 2,955 | |
| | | | | | | | |
| | | | | | | 13,411 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Financials – 6.1% | |
Bank of America Corp.: | | | | | | | | |
8.000%, 7–29–49 | | $ | 6,000 | | | $ | 6,120 | |
6.250%, 9–29–49 | | | 3,000 | | | | 3,124 | |
Bank of New York Mellon Corp. (The) | | | | | | | | |
4.625%, 12–29–49 | | | 3,000 | | | | 2,955 | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.: | | | | | | | | |
6.020%,
6–15–26 (A) | | | 1,500 | | | | 1,645 | |
8.350%,
7–15–46 (A) | | | 3,000 | | | | 3,594 | |
JPMorgan Chase & Co.: | | | | | | | | |
7.900%, 4–29–49 | | | 3,000 | | | | 3,083 | |
6.125%, 12–29–49 | | | 3,000 | | | | 3,173 | |
New Cotai LLC and New Cotai Capital Corp. | | | | | | | | |
10.625%,
5–1–19 (A)(D) | | | 13,898 | | | | 7,644 | |
UBS AG, Stamford Branch | | | | | | | | |
7.625%, 8–17–22 | | | 2,000 | | | | 2,330 | |
Wells Fargo & Co. | | | | | | | | |
7.980%, 3–29–49 | | | 10,534 | | | | 11,009 | |
| | | | | | | | |
| | | | | | | 44,677 | |
| | | | | | | | |
| |
Health Care – 1.3% | |
Chiron Merger Sub, Inc. | | | | | | | | |
12.500%, 11–1–19 | | | 225 | | | | 224 | |
Kinetic Concepts, Inc. and KCI USA, Inc.: | | | | | | | | |
10.500%, 11–1–18 | | | 4,280 | | | | 4,499 | |
9.625%,
10–1–21 (A) | | | 5,000 | | | | 5,000 | |
| | | | | | | | |
| | | | | | | 9,723 | |
| | | | | | | | |
| |
Industrials – 0.9% | |
Prime Security Services Borrower LLC | | | | | | | | |
9.250%,
5–15–23 (A) | | | 6,111 | | | | 6,661 | |
TRAC Intermodal LLC and TRAC Intermodal Corp. | | | | | | | | |
11.000%, 8–15–19 | | | 116 | | | | 123 | |
| | | | | | | | |
| | | | | | | 6,784 | |
| | | | | | | | |
| |
Telecommunication Services – 1.1% | |
Sprint Capital Corp. and Sprint Corp. | | | | | | | | |
8.750%, 3–15–32 | | | 8,000 | | | | 8,190 | |
| | | | | | | | |
| |
Total United States – 12.6% | | | | 93,008 | |
| |
TOTAL CORPORATE DEBT
SECURITIES – 32.3% | | | $ | 238,979 | |
(Cost: $241,202) | | | | | | | | |
| | |
OTHER GOVERNMENT
SECURITIES (E) | | | | | | |
Argentina – 0.7% | |
Province of Mendoza | | | | | | | | |
8.375%,
5–19–24 (A) | | | 5,000 | | | | 5,338 | |
| | | | | | | | |
| |
Australia – 0.2% | |
New South Wales Treasury Corp. | | | | | | | | |
5.500%, 3–1–17 (B) | | AUD | 2,000 | | | | 1,554 | |
| | | | | | | | |
| | | | | | | | |
OTHER GOVERNMENT
SECURITIES (E) (Continued) | | Principal | | | Value | |
Canada – 0.7% | |
City of Toronto | | | | | | | | |
3.500%, 12–6–21 (B) | | CAD | 2,000 | | | $ | 1,671 | |
Province of Ontario | | | | | | | | |
4.400%, 6–2–19 (B) | | | 2,000 | | | | 1,664 | |
Regional Municipality of York | | | | | | | | |
4.000%, 6–30–21 (B) | | | 2,000 | | | | 1,702 | |
| | | | | | | | |
| | | | | | | 5,037 | |
| | | | | | | | |
| |
Malaysia – 0.1% | |
Malaysia Government Bond | | | | | | | | |
3.314%,
10–31–17 (B) | | MYR | 3,000 | | | | 731 | |
| | | | | | | | |
| |
TOTAL OTHER GOVERNMENT
SECURITIES – 1.7% | | | $ | 12,660 | |
(Cost: $14,292) | | | | | | | | |
| |
| LOANS (C) | |
United States | |
| |
Consumer Staples – 0.5% | |
Focus Brands, Inc. | | | | | | | | |
10.250%, 8–21–18 | | $ | 1,000 | | | | 1,000 | |
GOBP Holdings, Inc. | | | | | | | | |
9.250%, 10–21–22 | | | 2,906 | | | | 2,894 | |
| | | | | | | | |
| | | | | | | 3,894 | |
| | | | | | | | |
| |
Energy – 1.7% | |
Callon Petroleum Co. | | | | | | | | |
8.500%, 10–8–21 | | | 12,107 | | | | 12,223 | |
Empresas ICA S.A. | | | | | | | | |
9.300%, 6–20–17 (F) | | | 2,825 | | | | 226 | |
| | | | | | | | |
| | | | | | | 12,449 | |
| | | | | | | | |
| |
Industrials – 0.4% | |
Hampton Rubber Co. & SEI Holding Corp. | | | | | | | | |
9.000%, 3–27–22 | | | 3,333 | | | | 2,666 | |
| | | | | | | | |
| |
Information Technology – 1.1% | |
Misys plc and Magic Newco LLC | | | | | | | | |
12.000%, 6–12–19 | | | 7,500 | | | | 7,875 | |
| | | | | | | | |
| |
Materials – 0.1% | |
EP Minerals LLC | | | | | | | | |
8.500%, 8–20–21 | | | 781 | | | | 750 | |
| | | | | | | | |
| |
Total United States – 3.8% | | | | 27,634 | |
| |
TOTAL LOANS – 3.8% | | | $ | 27,634 | |
(Cost: $30,701) | | | | | | | | |
| | |
UNITED STATES GOVERNMENT
OBLIGATIONS | | | | | | |
United States – 2.9% | | | | | | | | |
U.S. Treasury Bonds: | | | | | | | | |
8.000%, 11–15–21 | | | 6,000 | | | | 8,027 | |
7.250%, 8–15–22 | | | 5,000 | | | | 6,692 | |
7.125%, 2–15–23 | | | 5,000 | | | | 6,773 | |
| | | | | | | | |
| | | | | | | 21,492 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS – 2.9% | | | $ | 21,492 | |
(Cost: $20,823) | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 53 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Commercial Paper (G) – 1.3% | |
J.M. Smucker Co. (The) | | | | | | | | |
0.700%, 10–3–16 | | $ | 9,316 | | | $ | 9,316 | |
| | | | | | | | |
Master Note – 0.5% | | | | | | | | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (H) | | | 3,863 | | | | 3,863 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 1.8% | | | $ | 13,179 | |
(Cost: $13,179) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 99.5% | | | $ | 735,890 | |
(Cost: $747,735) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.5% | | | | 3,689 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 739,579 | |
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, 2016 the total value of these securities amounted to $97,048 or 13.1% of net assets. |
| (B) | 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, RUB - Russian Ruble and SGD - Singapore Dollar). |
| (C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (D) | Payment-in-kind bonds. |
| (E) | Other Government Securities may include emerging markets sovereign, quasi-sovereign, corporate and supranational agency and organization debt securities. |
| (F) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
| (G) | Rate shown is the yield to maturity at September 30, 2016. |
| (H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| British Pound | | | 14,900 | | | U.S. Dollar | | | 19,542 | | | 10–26–16 | | UBS AG | | $ | 221 | | | $ | — | | | | | |
| Euro | | | 40,700 | | | U.S. Dollar | | | 45,834 | | | 10–26–16 | | UBS AG | | | 65 | | | | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 286 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | |
| 54 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 388,457 | | | $ | — | | | $ | — | |
Investment Funds | | | 13,341 | | | | — | | | | — | |
Preferred Stocks | | | 20,148 | | | | — | | | | — | |
Corporate Debt Securities | | | — | | | | 238,979 | | | | — | |
Other Government Securities | | | — | | | | 12,660 | | | | — | |
Loans | | | — | | | | 16,117 | | | | 11,517 | |
United States Government Obligations | | | — | | | | 21,492 | | | | — | |
Short-Term Securities | | | — | | | | 13,179 | | | | — | |
Total | | $ | 421,946 | | | $ | 302,427 | | | $ | 11,517 | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 286 | | | $ | — | |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| | | | |
| | | Loans | |
Beginning Balance 4–1–16 | | $ | 1,409 | |
Net realized gain (loss) | | | — | * |
Net change in unrealized appreciation (depreciation) | | | 489 | |
Purchases | | | — | |
Sales | | | — | |
Amortization/Accretion of premium/discount | | | (73 | ) |
Transfers into Level 3 during the period | | | 9,692 | |
Transfers out of Level 3 during the period | | | — | |
| | | | |
Ending Balance 9-30-16 | | $ | 11,517 | |
| | | | |
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–16 | | $ | 489 | |
| | | | |
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. During the period ended September 30, 2016, there were no transfers between Levels 1 and 2.
Information about Level 3 fair value measurements:
| | | | | | | | |
| | | Fair Value at
9–30–16 | | | Valuation Technique(s) | | Unobservable Input(s) |
Assets | | | | | | | | |
| | | |
Loans | | $ | 11,517 | | | Third-party vendor pricing service | | Broker quotes |
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
GTD = Guaranteed
REIT = Real Estate Investment Trust
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 55 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY GLOBAL INCOME ALLOCATION FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
Financials | | | 29.1% | |
Industrials | | | 11.7% | |
Consumer Discretionary | | | 10.8% | |
Energy | | | 9.0% | |
Consumer Staples | | | 8.3% | |
Information Technology | | | 6.7% | |
Health Care | | | 5.4% | |
Materials | | | 4.6% | |
Telecommunication Services | | | 4.5% | |
United States Government and Government Agency Obligations | | | 2.9% | |
Other Government Securities | | | 1.7% | |
Utilities | | | 1.5% | |
Real Estate | | | 1.5% | |
Other+ | | | 2.3% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 56 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY HIGH INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 1.0% | |
Telecommunication Services | | | 0.5% | |
Financials | | | 0.3% | |
Consumer Discretionary | | | 0.2% | |
Warrants | | | 0.0% | |
Bonds | | | 94.3% | |
Corporate Debt Securities | | | 74.6% | |
Loans | | | 19.7% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 4.7% | |
Lipper Rankings
| | | | | | |
| Category: Lipper High Yield Funds | | Rank | | Percentile | |
1 Year | | 574/660 | | | 87 | |
3 Year | | 413/554 | | | 75 | |
5 Year | | 128/437 | | | 30 | |
10 Year | | 9/293 | | | 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 | | | 1.9% | |
BBB | | | 1.9% | |
Non-Investment Grade | | | 92.4% | |
BB | | | 12.3% | |
B | | | 38.3% | |
CCC | | | 36.2% | |
Below CCC | | | 1.5% | |
Non-rated | | | 4.1% | |
Cash and Other Assets (Net of Liabilities), Cash Equivalents+ and Equities | | | 5.7% | |
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.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 57 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| | |
Cable & Satellite – 0.2% | | | | | | | | |
Altice N.V., Class A (A)(B) | | | 454 | | | $ | 8,148 | |
| | | | | | | | |
| |
Casinos & Gaming – 0.0% | |
New Cotai Participation Corp., Class B (A) | | | — | * | | | 513 | |
| | | | | | | | |
| |
Housewares & Specialties – 0.0% | |
Provo Craft & Novelty, Inc. (A)(C) | | | 6,090 | | | | — | * |
| | | | | | | | |
| |
Total Consumer Discretionary – 0.2% | | | | 8,661 | |
Financials | | | | | | | | |
| |
Specialized Finance – 0.3% | |
Maritime Finance Co.
Ltd. (A)(C)(D) | | | 1,750 | | | | 15,277 | |
| | | | | | | | |
| | |
Total Financials – 0.3% | | | | | | | 15,277 | |
| |
TOTAL COMMON STOCKS – 0.5% | | | $ | 23,938 | |
(Cost: $38,461) | | | | | | | | |
| | |
| PREFERRED STOCKS | | | | | | |
Telecommunication Services | |
| |
Integrated Telecommunication Services – 0.5% | |
Frontier Communications Corp., Convertible Series A,
11.125% | | | 249 | | | | 20,882 | |
| | | | | | | | |
| |
Total Telecommunication
Services – 0.5% | | | | 20,882 | |
| |
TOTAL PREFERRED STOCKS – 0.5% | | | $ | 20,882 | |
(Cost: $24,887) | | | | | | | | |
| | |
| WARRANTS | | | | | | |
Agricultural Products – 0.0% | |
ASG Consolidated LLC, expires 5–15–18 (E) | | | 13 | | | | — | |
| | | | | | | | |
| |
Apparel Retail – 0.0% | |
St. John Knits International, Inc. (E) | | | 48 | | | | 179 | |
| | | | | | | | |
| |
Commodity Chemicals – 0.0% | |
Foresight Energy L.P. (E) | | | 36 | | | | — | |
| | | | | | | | |
| | |
TOTAL WARRANTS – 0.0% | | | | | | $ | 179 | |
(Cost: $798) | | | | | | | | |
| | |
| CORPORATE DEBT SECURITIES | | Principal | | | | |
Consumer Discretionary | |
| |
Advertising – 0.8% | |
Acosta, Inc., | | | | | | | | |
7.750%, 10–1–22 (F) | | $ | 22,646 | | | | 18,626 | |
Lamar Media Corp., | | | | | | | | |
5.375%, 1–15–24 | | | 6,757 | | | | 7,112 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Advertising (Continued) | |
Outfront Media Capital LLC and Outfront Media Capital Corp.: | | | | | | | | |
5.250%, 2–15–22 | | $ | 2,900 | | | $ | 3,016 | |
5.625%, 2–15–24 | | | 8,212 | | | | 8,541 | |
| | | | | | | | |
| | | | | | | 37,295 | |
| | | | | | | | |
| |
Apparel Retail – 1.6% | |
Hot Topic, Inc., | | | | | | | | |
9.250%, 6–15–21 (F) | | | 42,321 | | | | 44,860 | |
HT Intermediate Holdings Corp., | | | | | | | | |
12.000%,
5–15–19 (F)(G) | | | 12,946 | | | | 13,205 | |
Neiman Marcus Group Ltd., Inc., | | | | | | | | |
8.000%,
10–15–21 (F) | | | 20,368 | | | | 16,906 | |
| | | | | | | | |
| | | | | | | 74,971 | |
| | | | | | | | |
| |
Automotive Retail – 0.6% | |
Allison Transmission, Inc., | | | | | | | | |
5.000%, 10–1–24 (F) | | | 4,034 | | | | 4,126 | |
Group 1 Automotive, Inc., | | | | | | | | |
5.000%, 6–1–22 | | | 3,436 | | | | 3,453 | |
Penske Automotive Group, Inc., | | | | | | | | |
5.500%, 5–15–26 | | | 2,983 | | | | 2,976 | |
Sonic Automotive, Inc., | | | | | | | | |
5.000%, 5–15–23 | | | 17,353 | | | | 17,093 | |
| | | | | | | | |
| | | | | | | 27,648 | |
| | | | | | | | |
| |
Broadcasting – 1.8% | |
Clear Channel Outdoor Holdings, Inc., | | | | | | | | |
6.500%, 11–15–22 | | | 43,832 | | | | 45,183 | |
Clear Channel Worldwide Holdings, Inc., Series A, | | | | | | | | |
7.625%, 3–15–20 | | | 3,032 | | | | 2,911 | |
Clear Channel Worldwide Holdings, Inc., Series B, | | | | | | | | |
7.625%, 3–15–20 | | | 10,252 | | | | 10,162 | |
Cumulus Media, Inc., | | | | | | | | |
7.750%, 5–1–19 | | | 33,969 | | | | 13,757 | |
iHeartCommunications, Inc., | | | | | | | | |
10.000%, 1–15–18 | | | 12,274 | | | | 8,040 | |
iHeartCommunications, Inc. (GTD by iHeartMedia Capital I LLC), | | | | | | | | |
10.625%, 3–15–23 | | | 9,924 | | | | 7,393 | |
| | | | | | | | |
| | | | | | | 87,446 | |
| | | | | | | | |
| |
Cable & Satellite – 8.4% | |
Altice Financing S.A.: | | | | | | | | |
6.625%, 2–15–23 (F) | | | 12,126 | | | | 12,444 | |
7.500%, 5–15–26 (F) | | | 18,738 | | | | 19,511 | |
Altice S.A.: | | | | | | | | |
7.250%,
5–15–22 (F)(H) | | EUR | 3,821 | | | | 4,524 | |
7.750%, 5–15–22 (F) | | $ | 68,474 | | | | 73,096 | |
6.250%,
2–15–25 (F)(H) | | EUR | 3,496 | | | | 3,942 | |
7.625%, 2–15–25 (F) | | $ | 14,356 | | | | 14,769 | |
Altice U.S. Finance I Corp., | | | | | | | | |
5.500%, 5–15–26 (F) | | | 11,626 | | | | 12,004 | |
Cablevision Systems Corp., | | | | | | | | |
5.875%, 9–15–22 | | | 15,710 | | | | 14,296 | |
CCO Holdings LLC and CCO Holdings Capital Corp., | | | | | | | | |
5.500%, 5–1–26 (F) | | | 600 | | | | 629 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Cable & Satellite (Continued) | |
Columbus International, Inc., | | | | | | | | |
7.375%,
3–30–21 (F) | | $ | 5,116 | | | $ | 5,428 | |
DISH DBS Corp.: | | | | | | | | |
6.750%, 6–1–21 | | | 17,085 | | | | 18,409 | |
5.875%, 7–15–22 | | | 10,630 | | | | 10,949 | |
5.000%, 3–15–23 | | | 5,265 | | | | 5,120 | |
5.875%, 11–15–24 | | | 3,054 | | | | 3,016 | |
7.750%,
7–1–26 (F) | | | 8,887 | | | | 9,442 | |
Neptune Finco Corp.: | | | | | | | | |
10.125%,
1–15–23 (F) | | | 21,285 | | | | 24,558 | |
6.625%,
10–15–25 (F) | | | 6,478 | | | | 7,029 | |
10.875%,
10–15–25 (F) | | | 16,255 | | | | 19,018 | |
Numericable – SFR S.A., | | | | | | | | |
7.375%,
5–1–26 (F) | | | 44,127 | | | | 45,106 | |
Sirius XM Radio, Inc., | | | | | | | | |
4.625%,
5–15–23 (F) | | | 33,613 | | | | 33,613 | |
VTR Finance B.V., | | | | | | | | |
6.875%,
1–15–24 (F) | | | 47,584 | | | | 49,249 | |
Wave Holdco LLC and Wave Holdco Corp., | | | | | | | | |
8.250%,
7–15–19 (F)(G) | | | 9,907 | | | | 9,956 | |
| | | | | | | | |
| | | | | | | 396,108 | |
| | | | | | | | |
| |
Casinos & Gaming – 1.5% | |
Gateway Casinos & Entertainment Ltd., | | | | | | | | |
8.500%,
11–26–20 (F)(H) | | CAD | 22,446 | | | | 16,168 | |
MCE Finance Ltd., | | | | | | | | |
5.000%,
2–15–21 (F) | | $ | 6,299 | | | | 6,332 | |
Studio City Finance Ltd., | | | | | | | | |
8.500%,
12–1–20 (F) | | | 7,513 | | | | 7,738 | |
Wynn Macau Ltd., | | | | | | | | |
5.250%,
10–15–21 (F) | | | 39,272 | | | | 39,665 | |
| | | | | | | | |
| | | | | | | 69,903 | |
| | | | | | | | |
| |
Department Stores – 0.6% | |
Bon-Ton Stores, Inc. (The): | | | | | | | | |
10.625%, 7–15–17 | | | 6,448 | | | | 6,477 | |
8.000%, 6–15–21 | | | 37,571 | | | | 21,415 | |
| | | | | | | | |
| | | | | | | 27,892 | |
| | | | | | | | |
| |
Distributors – 1.0% | |
Pinnacle Operating Corp., | | | | | | | | |
9.000%,
11–15–20 (F) | | | 71,371 | | | | 49,603 | |
| | | | | | | | |
| |
Education Services – 2.3% | |
Laureate Education, Inc., | | | | | | | | |
10.000%,
9–1–19 (F)(I) | | | 113,357 | | | | 108,709 | |
| | | | | | | | |
| |
Homefurnishing Retail – 0.7% | |
Restoration Hardware Holdings, Inc., Convertible: | | | | | | | | |
0.000%,
6–15–19 (F)(J) | | | 21,390 | | | | 18,449 | |
0.000%,
7–15–20 (F)(J) | | | 17,230 | | | | 14,064 | |
| | | | | | | | |
| | | | | | | 32,513 | |
| | | | | | | | |
| |
Hotels, Resorts & Cruise Lines – 0.4% | |
Carlson Travel Holdings, | | | | | | | | |
7.500%,
8–15–19 (F)(G) | | | 17,224 | | | | 17,052 | |
| | | | | | | | |
| | | | | | |
| 58 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Movies & Entertainment – 1.7% | |
AMC Entertainment, Inc., | | | | | | | | |
5.750%, 6–15–25 | | $ | 13,462 | | | $ | 13,597 | |
Cinemark USA, Inc.: | | | | | | | | |
5.125%, 12–15–22 | | | 1,258 | | | | 1,289 | |
4.875%, 6–1–23 | | | 22,239 | | | | 22,350 | |
EMI Music Publishing Group North America Holdings, | | | | | | | | |
7.625%, 6–15–24 (F) | | | 7,135 | | | | 7,715 | |
WMG Acquisition Corp., | | | | | | | | |
6.750%, 4–15–22 (F) | | | 33,200 | | | | 35,192 | |
| | | | | | | | |
| | | | | | | 80,143 | |
| | | | | | | | |
| |
Publishing – 0.2% | |
MDC Partners, Inc., | | | | | | | | |
6.500%, 5–1–24 (F) | | | 9,310 | | | | 8,542 | |
| | | | | | | | |
| |
Specialized Consumer Services – 1.5% | |
BakerCorp International, Inc., | | | | | | | | |
8.250%, 6–1–19 | | | 67,965 | | | | 54,881 | |
Nielsen Finance, | | | | | | | | |
5.500%, 10–1–21 (F) | | | 3,151 | | | | 3,285 | |
Nielsen Finance LLC and Nielsen Finance Co., | | | | | | | | |
5.000%, 4–15–22 (F) | | | 15,039 | | | | 15,528 | |
| | | | | | | | |
| | | | | | | 73,694 | |
| | | | | | | | |
| |
Specialty Stores – 1.5% | |
Jo-Ann Stores Holdings, Inc., | | | | | | | | |
9.750%,
10–15–19 (F)(G) | | | 75,665 | | | | 73,773 | |
| | | | | | | | |
| |
Total Consumer
Discretionary – 24.6% | | | | 1,165,292 | |
Consumer Staples | |
| |
Food Distributors – 1.4% | |
Performance Food Group, Inc., | | | | | | | | |
5.500%, 6–1–24 (F) | | | 11,774 | | | | 12,157 | |
Simmons Foods, Inc., | | | | | | | | |
7.875%, 10–1–21 (F) | | | 34,974 | | | | 34,886 | |
U.S. Foods, Inc., | | | | | | | | |
5.875%, 6–15–24 (F) | | | 17,769 | | | | 18,480 | |
| | | | | | | | |
| | | | | | | 65,523 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 1.7% | |
Bumble Bee Foods LLC: | | | | | | | | |
9.000%,
12–15–17 (F) | | | 5,763 | | | | 5,792 | |
9.625%,
3–15–18 (F)(G) | | | 11,758 | | | | 11,670 | |
JBS Investments GmbH (GTD by JBS S.A. and JBS Hungary Holdings Kft.), | | | | | | | | |
7.750%,
10–28–20 (F) | | | 2,300 | | | | 2,403 | |
JBS USA LLC and JBS USA Finance, Inc.: | | | | | | | | |
7.250%, 6–1–21 (F) | | | 2,418 | | | | 2,484 | |
5.875%, 7–15–24 (F) | | | 28,772 | | | | 28,628 | |
5.750%, 6–15–25 (F) | | | 13,407 | | | | 13,172 | |
Post Holdings, Inc.: | | | | | | | | |
7.750%, 3–15–24 (F) | | | 4,871 | | | | 5,456 | |
8.000%, 7–15–25 (F) | | | 4,410 | | | | 5,047 | |
5.000%, 8–15–26 (F) | | | 5,849 | | | | 5,820 | |
| | | | | | | | |
| | | | | | | 80,472 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Personal Products – 0.1% | |
Revlon Consumer Products Corp., | | | | | | | | |
5.750%, 2–15–21 | | $ | 4,734 | | | $ | 4,829 | |
Revlon Escrow Corp., | | | | | | | | |
6.250%, 8–1–24 (F) | | | 2,924 | | | | 3,019 | |
| | | | | | | | |
| | | | | | | 7,848 | |
| | | | | | | | |
| |
Total Consumer Staples – 3.2% | | | | 153,843 | |
Energy | |
| |
Coal & Consumable Fuels – 0.6% | |
Foresight Energy LLC and Foresight Energy Finance Corp., | | | | | | | | |
10.000%,
8–15–21 (F)(G) | | | 23,299 | | | | 20,911 | |
Foresight Energy LLC and Foresight Energy Finance Corp., Convertible, | | | | | | | | |
15.000%,
10–3–17 (G)(I) | | | 8,370 | | | | 7,533 | |
| | | | | | | | |
| | | | | | | 28,444 | |
| | | | | | | | |
| |
Integrated Oil & Gas – 0.3% | |
Petrobras Global Finance B.V. (GTD by Petroleo Brasileiro S.A.), | | | | | | | | |
8.375%, 5–23–21 | | | 14,896 | | | | 16,321 | |
| | | | | | | | |
| |
Oil & Gas Drilling – 1.2% | |
Globe Luxembourg SCA, | | | | | | | | |
9.625%, 5–1–18 (F)(I) | | | 14,865 | | | | 13,639 | |
KCA DEUTAG UK Finance plc, | | | | | | | | |
7.250%, 5–15–21 (F) | | | 20,636 | | | | 16,921 | |
Offshore Drilling Holding S.A., | | | | | | | | |
8.375%, 9–20–20 (F)(I) | | | 44,521 | | | | 24,598 | |
Offshore Group Investment Ltd., | | | | | | | | |
0.000%, 11–1–19 | | | 14,866 | | | | — | |
| | | | | | | | |
| | | | | | | 55,158 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 3.9% | |
Bellatrix Exploration Ltd., | | | | | | | | |
8.500%, 5–15–20 (F) | | | 20,556 | | | | 19,117 | |
California Resources Corp., | | | | | | | | |
8.000%, 12–15–22 (F) | | | 17,804 | | | | 11,840 | |
Clayton Williams Energy, Inc., | | | | | | | | |
7.750%, 4–1–19 | | | 48,491 | | | | 47,400 | |
Crownrock L.P., | | | | | | | | |
7.750%, 2–15–23 (F) | | | 6,941 | | | | 7,444 | |
EnCana Corp., | | | | | | | | |
6.500%, 8–15–34 | | | 7,113 | | | | 7,446 | |
Endeavor Energy Resources L.P.: | | | | | | | | |
7.000%, 8–15–21 (F) | | | 19,368 | | | | 19,901 | |
8.125%, 9–15–23 (F) | | | 6,146 | | | | 6,545 | |
Gulfport Energy Corp., | | | | | | | | |
6.625%, 5–1–23 | | | 2,064 | | | | 2,116 | |
Laredo Petroleum, Inc., | | | | | | | | |
7.375%, 5–1–22 | | | 17,510 | | | | 18,101 | |
Midstates Petroleum Co., Inc. and Midstates Petroleum Co. LLC, | | | | | | | | |
10.000%, 6–1–20 (K) | | | 15,053 | | | | 10,085 | |
Parsley Energy LLC and Parsley Finance Corp., | | | | | | | | |
6.250%, 6–1–24 (F) | | | 3,550 | | | | 3,665 | |
Whiting Petroleum Corp., | | | | | | | | |
6.500%, 10–1–18 | | | 31,142 | | | | 30,675 | |
| | | | | | | | |
| | | | | | | 184,335 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Oil & Gas Refining & Marketing – 1.7% | |
Callon Petroleum Co. (GTD by Callon Petroleum Operating Co.), | | | | | | | | |
6.125%, 10–1–24 (F) | | $ | 2,881 | | | $ | 2,982 | |
PBF Holding Co. LLC and PBF Finance Corp., | | | | | | | | |
7.000%, 11–15–23 (F) | | | 17,612 | | | | 16,599 | |
PDC Energy, Inc., | | | | | | | | |
6.125%, 9–15–24 (F) | | | 2,310 | | | | 2,403 | |
Seven Generations Energy Ltd.: | | | | | | | | |
8.250%, 5–15–20 (F) | | | 29,007 | | | | 30,856 | |
6.750%, 5–1–23 (F) | | | 27,127 | | | | 28,144 | |
| | | | | | | | |
| | | | | | | 80,984 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 0.2% | |
Access Midstream Partners L.P., | | | | | | | | |
4.875%, 5–15–23 | | | 7,412 | | | | 7,501 | |
| | | | | | | | |
| | |
Total Energy – 7.9% | | | | | | | 372,743 | |
Financials | |
| |
Consumer Finance – 1.1% | |
Creditcorp, | | | | | | | | |
12.000%, 7–15–18 (F) | | | 40,520 | | | | 18,234 | |
Quicken Loans, Inc., | | | | | | | | |
5.750%, 5–1–25 (F) | | | 23,889 | | | | 23,710 | |
Speedy Cash Intermediate Holdings Corp., | | | | | | | | |
10.750%, 5–15–18 (F) | | | 8,232 | | | | 5,927 | |
Speedy Group Holdings Corp., | | | | | | | | |
12.000%,
11–15–17 (F) | | | 14,715 | | | | 6,916 | |
| | | | | | | | |
| | | | | | | 54,787 | |
| | | | | | | | |
| |
Diversified Capital Markets – 1.2% | |
Patriot Merger Corp., | | | | | | | | |
9.000%, 7–15–21 (F) | | | 53,861 | | | | 55,335 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 0.3% | |
E*TRADE Financial Corp., | | | | | | | | |
5.875%, 12–29–49 | | | 4,068 | | | | 4,200 | |
GFI Group, Inc., | | | | | | | | |
8.375%, 7–19–18 (I) | | | 11,120 | | | | 12,010 | |
| | | | | | | | |
| | | | | | | 16,210 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 2.4% | |
AAF Holdings LLC and AAF Finance Co., | | | | | | | | |
12.000%,
7–1–19 (F)(G) | | | 10,051 | | | | 10,302 | |
Balboa Merger Sub, Inc., | | | | | | | | |
11.375%, 12–1–21 (F) | | | 22,692 | | | | 20,196 | |
Greektown Holdings LLC and Greektown Mothership Corp., | | | | | | | | |
8.875%, 3–15–19 (F) | | | 25,225 | | | | 26,676 | |
New Cotai LLC and New Cotai Capital Corp., | | | | | | | | |
10.625%,
5–1–19 (F)(G) | | | 104,757 | | | | 57,616 | |
| | | | | | | | |
| | | | | | | 114,790 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 1.2% | |
Hub International Ltd., | | | | | | | | |
7.875%, 10–1–21 (F) | | | 4,004 | | | | 4,084 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 59 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Property & Casualty Insurance (Continued) | |
Onex USI Acquisition Corp., | | | | | | | | |
7.750%, 1–15–21 (F) | | $ | 51,892 | | | $ | 52,670 | |
| | | | | | | | |
| | | | | | | 56,754 | |
| | | | | | | | |
| |
Specialized Finance – 2.0% | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp.: | | | | | | | | |
4.420%, 6–15–21 (F) | | | 5,960 | | | | 6,229 | |
5.875%, 6–15–21 (F) | | | 4,154 | | | | 4,414 | |
5.450%, 6–15–23 (F) | | | 2,979 | | | | 3,190 | |
7.125%, 6–15–24 (F) | | | 4,154 | | | | 4,569 | |
6.020%, 6–15–26 (F) | | | 5,960 | | | | 6,538 | |
Flexi-Van Leasing, Inc., | | | | | | | | |
7.875%, 8–15–18 (F) | | | 16,791 | | | | 15,154 | |
TMX Finance LLC and TitleMax Finance Corp., | | | | | | | | |
8.500%, 9–15–18 (F) | | | 71,555 | | | | 53,308 | |
| | | | | | | | |
| | | | | | | 93,402 | |
| | | | | | | | |
| |
Thrifts & Mortgage Finance – 0.7% | |
Provident Funding Associates L.P. and PFG Finance Corp., | | | | | | | | |
6.750%, 6–15–21 (F) | | | 32,010 | | | | 32,290 | |
| | | | | | | | |
| | |
Total Financials – 8.9% | | | | | | | 423,568 | |
Health Care | |
| |
Health Care Facilities – 1.7% | |
Chiron Merger Sub, Inc., | | | | | | | | |
12.500%, 11–1–19 | | | 2,794 | | | | 2,780 | |
Double Eagle Acquisition Sub, Inc., | | | | | | | | |
7.500%, 10–1–24 (F) | | | 6,891 | | | | 7,012 | |
Greatbatch Ltd., | | | | | | | | |
9.125%, 11–1–23 (F) | | | 20,906 | | | | 20,488 | |
HCA, Inc., | | | | | | | | |
5.250%, 6–15–26 | | | 4,228 | | | | 4,492 | |
MPH Acquisition Holdings LLC, | | | | | | | | |
7.125%, 6–1–24 (F) | | | 11,898 | | | | 12,790 | |
Surgery Center Holdings, Inc., | | | | | | | | |
8.875%, 4–15–21 (F) | | | 30,120 | | | | 32,153 | |
| | | | | | | | |
| | | | | | | 79,715 | |
| | | | | | | | |
| |
Health Care Supplies – 1.4% | |
Kinetic Concepts, Inc. and KCI USA, Inc., | | | | | | | | |
9.625%, 10–1–21 (F) | | | 54,829 | | | | 54,829 | |
Universal Hospital Services, Inc., | | | | | | | | |
7.625%, 8–15–20 | | | 13,052 | | | | 12,432 | |
| | | | | | | | |
| | | | | | | 67,261 | |
| | | | | | | | |
| |
Pharmaceuticals – 1.4% | |
Concordia Healthcare Corp.: | | | | | | | | |
9.500%, 10–21–22 (F) | | | 59,541 | | | | 41,232 | |
7.000%, 4–15–23 (F) | | | 7,125 | | | | 4,560 | |
IMS Health, Inc., | | | | | | | | |
5.000%, 10–15–26 (F) | | | 6,780 | | | | 7,051 | |
VPII Escrow Corp., | | | | | | | | |
7.500%, 7–15–21 (F) | | | 6,802 | | | | 6,581 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Pharmaceuticals (Continued) | |
VRX Escrow Corp., | | | | | | | | |
5.375%, 3–15–20 (F) | | $ | 8,875 | | | $ | 8,210 | |
| | | | | | | | |
| | | | | | | 67,634 | |
| | | | | | | | |
| | |
Total Health Care – 4.5% | | | | | | | 214,610 | |
Industrials | |
| |
Aerospace & Defense – 2.0% | |
KLX, Inc., | | | | | | | | |
5.875%, 12–1–22 (F) | | | 21,081 | | | | 21,819 | |
Silver II Borrower SCA and Silver II U.S. Holdings, | | | | | | | | |
7.750%, 12–15–20 (F) | | | 25,749 | | | | 20,406 | |
TransDigm, Inc. (GTD by TransDigm Group, Inc.): | | | | | | | | |
6.500%, 7–15–24 | | | 34,813 | | | | 36,641 | |
6.375%, 6–15–26 (F) | | | 15,559 | | | | 16,142 | |
| | | | | | | | |
| | | | | | | 95,008 | |
| | | | | | | | |
| |
Air Freight & Logistics – 0.4% | |
TRAC Intermodal LLC and TRAC Intermodal Corp., | | | | | | | | |
11.000%, 8–15–19 | | | 4,942 | | | | 5,214 | |
XPO Logistics, Inc.: | | | | | | | | |
6.500%, 6–15–22 (F) | | | 7,550 | | | | 7,899 | |
6.125%, 9–1–23 (F) | | | 4,075 | | | | 4,187 | |
| | | | | | | | |
| | | | | | | 17,300 | |
| | | | | | | | |
| |
Building Products – 1.1% | |
Alcoa Nederland Holding B.V.: | | | | | | | | |
6.750%, 9–30–24 (F) | | | 2,557 | | | | 2,656 | |
7.000%, 9–30–26 (F) | | | 2,557 | | | | 2,643 | |
Eagle Materials, Inc., | | | | | | | | |
4.500%, 8–1–26 | | | 2,337 | | | | 2,370 | |
Ply Gem Industries, Inc., | | | | | | | | |
6.500%, 2–1–22 | | | 28,758 | | | | 29,416 | |
Summit Materials LLC and Summit Materials Finance Corp.: | | | | | | | | |
8.500%, 4–15–22 (F) | | | 2,416 | | | | 2,633 | |
6.125%, 7–15–23 | | | 5,046 | | | | 5,147 | |
WESCO Distribution, Inc. (GTD by WESCO International, Inc.), | | | | | | | | |
5.375%, 6–15–24 (F) | | | 5,940 | | | | 5,951 | |
| | | | | | | | |
| | | | | | | 50,816 | |
| | | | | | | | |
| |
Diversified Support Services – 0.1% | |
United Rentals (North America), Inc. (GTD by United Rentals, Inc.), | | | | | | | | |
5.875%, 9–15–26 | | | 2,990 | | | | 3,080 | |
| | | | | | | | |
| |
Environmental & Facilities Services – 0.7% | |
GFL Environmental, Inc.: | | | | | | | | |
7.875%, 4–1–20 (F) | | | 25,429 | | | | 26,700 | |
9.875%, 2–1–21 (F) | | | 5,386 | | | | 5,898 | |
| | | | | | | | |
| | | | | | | 32,598 | |
| | | | | | | | |
| |
Railroads – 0.9% | |
Florida East Coast Holdings Corp. and Florida East Coast Industries LLC: | | | | | | | | |
6.750%, 5–1–19 (F) | | | 28,925 | | | | 29,648 | |
9.750%, 5–1–20 (F) | | | 15,221 | | | | 13,813 | |
| | | | | | | | |
| | | | | | | 43,461 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Security & Alarm Services – 0.7% | |
Prime Security Services Borrower LLC, | | | | | | | | |
9.250%, 5–15–23 (F) | | $ | 30,972 | | | $ | 33,760 | |
| | | | | | | | |
| |
Trading Companies & Distributors – 0.2% | |
HD Supply, Inc., | | | | | | | | |
5.750%, 4–15–24 (F) | | | 10,544 | | | | 11,071 | |
| | | | | | | | |
| | |
Total Industrials – 6.1% | | | | | | | 287,094 | |
Information Technology | |
| |
Application Software – 2.0% | |
Infor Software Parent LLC and Infor Software Parent, Inc., | | | | | | | | |
7.125%, 5–1–21 (F)(G) | | | 18,196 | | | | 17,650 | |
Kronos Acquisition Holdings, Inc., | | | | | | | | |
9.000%, 8–15–23 (F) | | | 62,294 | | | | 64,201 | |
Michael Baker International LLC, | | | | | | | | |
8.250%, 10–15–18 (F) | | | 10,605 | | | | 10,632 | |
| | | | | | | | |
| | | | | | | 92,483 | |
| | | | | | | | |
| |
Communications Equipment – 0.6% | |
West Corp., | | | | | | | | |
5.375%, 7–15–22 (F) | | | 30,869 | | | | 30,252 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 1.6% | |
Alliance Data Systems Corp., | | | | | | | | |
5.375%, 8–1–22 (F) | | | 29,711 | | | | 28,968 | |
Italics Merger Sub, Inc., | | | | | | | | |
7.125%, 7–15–23 (F) | | | 50,783 | | | | 47,228 | |
| | | | | | | | |
| | | | | | | 76,196 | |
| | | | | | | | |
| |
Electronic Manufacturing Services – 0.3% | |
KEMET Corp., | | | | | | | | |
10.500%, 5–1–18 | | | 14,981 | | | | 15,019 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 1.0% | |
NCR Escrow Corp.: | | | | | | | | |
5.875%, 12–15–21 | | | 22,601 | | | | 23,787 | |
6.375%, 12–15–23 | | | 22,549 | | | | 23,846 | |
| | | | | | | | |
| | | | | | | 47,633 | |
| | | | | | | | |
| |
Semiconductors – 0.9% | |
Micron Technology, Inc.: | | | | | | | | |
5.875%, 2–15–22 | | | 26,575 | | | | 27,273 | |
7.500%, 9–15–23 (F) | | | 12,294 | | | | 13,655 | |
5.500%, 2–1–25 | | | 1,943 | | | | 1,904 | |
| | | | | | | | |
| | | | | | | 42,832 | |
| | | | | | | | |
| |
Technology Hardware, Storage &
Peripherals – 0.4% | |
Western Digital Corp.: | | | | | | | | |
7.375%, 4–1–23 (F) | | | 3,009 | | | | 3,302 | |
10.500%, 4–1–24 (F) | | | 13,052 | | | | 15,157 | |
| | | | | | | | |
| | | | | | | 18,459 | |
| | | | | | | | |
| |
Total Information Technology – 6.8% | | | | 322,874 | |
| | | | | | |
| 60 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Materials | |
| |
Aluminum – 2.8% | |
Constellium N.V.: | | | | | | | | |
8.000%, 1–15–23 (F) | | $ | 34,437 | | | $ | 34,695 | |
5.750%, 5–15–24 (F) | | | 16,523 | | | | 15,284 | |
Kaiser Aluminum Corp., | | | | | | | | |
5.875%, 5–15–24 | | | 2,392 | | | | 2,500 | |
Novelis Corp. (GTD by Novelis, Inc.): | | | | | | | | |
6.250%, 8–15–24 (F) | | | 8,724 | | | | 9,269 | |
5.875%, 9–30–26 (F) | | | 5,784 | | | | 5,921 | |
Wise Metals Group LLC, | | | | | | | | |
8.750%, 12–15–18 (F) | | | 23,691 | | | | 24,165 | |
Wise Metals Intermediate Holdings, | | | | | | | | |
9.750%, 6–15–19 (F)(G) | | | 42,075 | | | | 40,392 | |
| | | | | | | | |
| | | | | | | 132,226 | |
| | | | | | | | |
| |
Construction Materials – 0.8% | |
Hillman Group, Inc. (The), | | | | | | | | |
6.375%, 7–15–22 (F) | | | 38,106 | | | | 35,724 | |
| | | | | | | | |
| |
Diversified Chemicals – 0.4% | |
PQ Corp., | | | | | | | | |
6.750%, 11–15–22 (F) | | | 1,797 | | | | 1,905 | |
PSPC Escrow Corp., | | | | | | | | |
6.500%, 2–1–22 (F) | | | 11,779 | | | | 11,455 | |
PSPC Escrow II Corp., | | | | | | | | |
10.375%, 5–1–21 (F) | | | 5,919 | | | | 6,392 | |
| | | | | | | | |
| | | | | | | 19,752 | |
| | | | | | | | |
| |
Diversified Metals & Mining – 1.0% | |
Artsonig Pty Ltd., | | | | | | | | |
11.500%, 4–1–19 (F)(G) | | | 46,591 | | | | 2,795 | |
Crystal Merger Sub, Inc., | | | | | | | | |
7.625%, 10–15–21 (F) | | | 8,259 | | | | 7,062 | |
FMG Resources Pty Ltd.: | | | | | | | | |
9.750%, 3–1–22 (F) | | | 3,438 | | | | 3,988 | |
6.875%, 4–1–22 (F) | | | 28,227 | | | | 29,209 | |
Lundin Mining Corp.: | | | | | | | | |
7.500%, 11–1–20 (F) | | | 1,178 | | | | 1,252 | |
7.875%, 11–1–22 (F) | | | 3,980 | | | | 4,239 | |
| | | | | | | | |
| | | | | | | 48,545 | |
| | | | | | | | |
| |
Metal & Glass Containers – 0.7% | |
ARD Finance S.A., | | | | | | | | |
7.125%, 9–15–23 (F) | | | 3,217 | | | | 3,201 | |
Ardagh Packaging Finance plc and Ardagh Holdings USA, Inc., | | | | | | | | |
7.250%, 5–15–24 (F) | | | 8,752 | | | | 9,343 | |
BlueScope Steel (Finance) Ltd. and BlueScope Steel Finance (USA) LLC, | | | | | | | | |
7.125%, 5–1–18 (F) | | | 11,259 | | | | 11,495 | |
Signode Industrial Group, | | | | | | | | |
6.375%, 5–1–22 (F) | | | 11,052 | | | | 11,190 | |
| | | | | | | | |
| | | | | | | 35,229 | |
| | | | | | | | |
| |
Paper Packaging – 0.5% | |
Coveris Holdings S.A., | | | | | | | | |
7.875%, 11–1–19 (F) | | | 8,310 | | | | 8,497 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Paper Packaging (Continued) | |
Reynolds Group Issuer, Inc., Reynolds Group Issuer LLC and Reynolds Group Issuer (Luxembourg) S.A., | | | | | | | | |
5.125%, 7–15–23 (F) | | $ | 13,571 | | | $ | 14,012 | |
| | | | | | | | |
| | | | | | | 22,509 | |
| | | | | | | | |
| |
Specialty Chemicals – 0.1% | |
Versum Materials, Inc., | | | | | | | | |
5.500%, 9–30–24 (F) | | | 2,873 | | | | 2,952 | |
| | | | | | | | |
| |
Steel – 0.1% | |
U.S. Steel Corp., | | | | | | | | |
8.375%, 7–1–21 (F) | | | 4,186 | | | | 4,579 | |
| | | | | | | | |
| | |
Total Materials – 6.4% | | | | | | | 301,516 | |
Real Estate | | | | | | | | |
| |
Health Care REITs – 0.1% | | | | | |
MPT Operating Partnership L.P. and MPT Finance Corp. (GTD by Medical Properties Trust, Inc.), | | | | | | | | |
5.250%, 8–1–26 | | | 2,928 | | | | 3,038 | |
| | | | | | | | |
| |
Industrial REITs – 0.2% | |
Aircastle Ltd.: | | | | | | | | |
5.500%, 2–15–22 | | | 4,223 | | | | 4,555 | |
5.000%, 4–1–23 | | | 6,553 | | | | 6,848 | |
| | | | | | | | |
| | | | | | | 11,403 | |
| | | | | | | | |
| |
Real Estate Development – 0.4% | |
Hub Holdings LLC and Hub Holdings Finance, Inc., | | | | | | | | |
8.125%,
7–15–19 (F)(G) | | | 17,764 | | | | 17,320 | |
| | | | | | | | |
| | |
Total Real Estate – 0.7% | | | | | | | 31,761 | |
Telecommunication Services | | | | | | | | |
| |
Alternative Carriers – 0.3% | |
Consolidated Communications Finance II Co., | | | | | | | | |
6.500%, 10–1–22 | | | 9,598 | | | | 9,310 | |
Zayo Group LLC and Zayo Capital, Inc., | | | | | | | | |
6.000%, 4–1–23 | | | 4,151 | | | | 4,348 | |
| | | | | | | | |
| | | | | | | 13,658 | |
| | | | | | | | |
| |
Integrated Telecommunication Services – 3.4% | |
BCP (Singapore) VI Cayman Financing Co. Ltd., | | | | | | | | |
8.000%, 4–15–21 (F) | | | 5,694 | | | | 5,609 | |
Frontier Communications Corp.: | | | | | | | | |
8.875%, 9–15–20 | | | 22,650 | | | | 24,434 | |
6.250%, 9–15–21 | | | 15,908 | | | | 15,292 | |
10.500%, 9–15–22 | | | 8,332 | | | | 8,832 | |
7.125%, 1–15–23 | | | 2,412 | | | | 2,249 | |
6.875%, 1–15–25 | | | 8,428 | | | | 7,459 | |
11.000%, 9–15–25 | | | 14,998 | | | | 15,635 | |
GCI, Inc., | | | | | | | | |
6.875%, 4–15–25 | | | 22,144 | | | | 22,698 | |
| | | | | | | | |
CORPORATE DEBT
SECURITIES (Continued) | | Principal | | | Value | |
Integrated Telecommunication Services (Continued) | |
Sprint Corp.: | | | | | | | | |
7.250%, 9–15–21 | | $ | 43,872 | | | $ | 44,091 | |
7.875%, 9–15–23 | | | 16,141 | | | | 16,302 | |
| | | | | | | | |
| | | | | | | 162,601 | |
| | | | | | | | |
| |
Wireless Telecommunication Service – 1.8% | |
Sable International Finance Ltd., | | | | | | | | |
6.875%,
8–1–22 (F) | | | 26,720 | | | | 27,722 | |
Sprint Nextel Corp.: | | | | | | | | |
8.375%,
8–15–17 | | | 11,509 | | | | 11,955 | |
9.000%,
11–15–18 (F) | | | 3,686 | | | | 4,064 | |
7.000%, 8–15–20 | | | 3,022 | | | | 3,037 | |
11.500%,
11–15–21 | | | 2,342 | | | | 2,693 | |
T-Mobile USA, Inc.: | | | | | | | | |
6.731%, 4–28–22 | | | 5,891 | | | | 6,186 | |
6.000%, 4–15–24 | | | 10,845 | | | | 11,604 | |
6.500%, 1–15–26 | | | 16,374 | | | | 18,134 | |
| | | | | | | | |
| | | | | | | 85,395 | |
| | | | | | | | |
| |
Total Telecommunication Services – 5.5% | | | | 261,654 | |
| |
TOTAL CORPORATE DEBT SECURITIES – 74.6% | | | $ | 3,534,955 | |
(Cost: $3,730,546) | | | | | | | | |
| | |
| LOANS (I) | | | | | | |
Consumer Discretionary | | | | | |
| |
Advertising – 0.4% | |
Advantage Sales & Marketing, Inc., | | | | | | | | |
7.500%, 7–25–22 | | | 18,474 | | | | 17,527 | |
| | | | | | | | |
| |
Apparel Retail – 2.0% | |
Talbots, Inc. (The): | | | | | | | | |
5.500%, 3–19–20 | | | 21,493 | | | | 20,950 | |
9.500%, 3–19–21 | | | 60,047 | | | | 55,644 | |
True Religion Apparel, Inc.: | | | | | | | | |
5.875%, 7–30–19 | | | 76,740 | | | | 18,034 | |
5.875%, 7–30–19 | | | 199 | | | | 47 | |
| | | | | | | | |
| | | | | | | 94,675 | |
| | | | | | | | |
| |
Casinos & Gaming – 0.2% | |
Gateway Casinos & Entertainment Ltd.: | | | | | | | | |
5.250%,
11–26–19 (H) | | CAD | 14,568 | | | | 10,882 | |
5.950%,
11–26–19 (H) | | | 38 | | | | 28 | |
| | | | | | | | |
| | | | | | | 10,910 | |
| | | | | | | | |
| |
Department Stores – 0.8% | |
Belk, Inc., | | | | | | | | |
5.750%,
12–10–22 | | $ | 39,437 | | | | 35,676 | |
| | | | | | | | |
| |
General Merchandise Stores – 1.2% | |
BJ’s Wholesale Club, Inc., | | | | | | | | |
8.500%, 3–31–20 | | | 34,670 | | | | 34,783 | |
Orchard Acquisition Co. LLC, | | | | | | | | |
7.000%, 2–8–19 | | | 63,765 | | | | 22,955 | |
| | | | | | | | |
| | | | | | | 57,738 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 61 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| LOANS (I) (Continued) | | Principal | | | Value | |
Housewares & Specialties – 0.3% | |
KIK Custom Products, Inc., | | | | | | | | |
6.000%, 8–26–22 | | $ | 13,278 | | | $ | 13,278 | |
Provo Craft & Novelty, Inc., | | | | | | | | |
10.000%, 7–7–19 (G) | | | 485 | | | | — | |
| | | | | | | | |
| | | | | | | 13,278 | |
| | | | | | | | |
| |
Specialty Stores – 0.3% | |
Jo-Ann Stores, Inc., | | | | | | | | |
0.000%, 9–29–23 (L) | | | 15,567 | | | | 15,295 | |
| | | | | | | | |
| |
Total Consumer
Discretionary – 5.2% | | | | 245,099 | |
Consumer Staples | | | | | | | | |
| |
Food Distributors – 0.3% | |
Chefs’ Warehouse, Inc. (The), | | | | | | | | |
6.750%, 6–22–22 | | | 12,057 | | | | 11,936 | |
| | | | | | | | |
| |
Food Retail – 0.3% | |
Focus Brands, Inc., | | | | | | | | |
10.250%, 8–21–18 | | | 15,399 | | | | 15,399 | |
| | | | | | | | |
| |
Hypermarkets & Super Centers – 0.3% | |
GOBP Holdings, Inc., | | | | | | | | |
9.250%, 10–21–22 | | | 15,658 | | | | 15,593 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 0.4% | |
Shearer’s Foods LLC, | | | | | | | | |
7.750%, 6–30–22 | | | 18,980 | | | | 17,177 | |
| | | | | | | | |
| |
Total Consumer Staples – 1.3% | | | | 60,105 | |
Energy | | | | | | | | |
| |
Coal & Consumable Fuels – 0.3% | |
Westmoreland Coal Co., | | | | | | | | |
7.500%, 12–16–20 | | | 20,157 | | | | 15,722 | |
| | | | | | | | |
| |
Oil & Gas Drilling – 0.5% | |
KCA Deutag Alpha Ltd., | | | | | | | | |
6.250%, 5–16–20 | | | 26,521 | | | | 22,189 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 0.4% | |
Chesapeake Energy Corp., | | | | | | | | |
8.500%, 8–16–21 | | | 17,434 | | | | 18,289 | |
Sabine Oil & Gas LLC, | | | | | | | | |
11.750%, 12–31–18 (K) | | | 7,527 | | | | 217 | |
| | | | | | | | |
| | | | | | | 18,506 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 1.1% | |
Bowie Resources Holdings LLC: | | | | | | | | |
6.750%, 8–12–20 | | | 37,908 | | | | 31,085 | |
11.750%, 2–16–21 | | | 26,759 | | | | 21,407 | |
| | | | | | | | |
| | | | | | | 52,492 | |
| | | | | | | | |
| | |
Total Energy – 2.3% | | | | | | | 108,909 | |
Health Care | | | | | | | | |
| |
Life Sciences Tools & Services – 0.8% | |
Atrium Innovations, Inc., | | | | | | | | |
7.750%, 8–10–21 | | | 40,260 | | | | 37,844 | |
| | | | | | | | |
| | |
Total Health Care – 0.8% | | | | | | | 37,844 | |
| | | | | | | | |
| LOANS (I) (Continued) | | Principal | | | Value | |
Industrials | | | | | | | | |
| |
Building Products – 0.6% | |
C.H.I. Overhead Doors, Inc., | | | | | | | | |
8.750%, 7–31–23 | | $ | 11,909 | | | $ | 11,686 | |
Hampton Rubber Co. & SEI Holding Corp., | | | | | | | | |
9.000%, 3–27–22 | | | 23,667 | | | | 18,933 | |
| | | | | | | | |
| | | | | | | 30,619 | |
| | | | | | | | |
| |
Construction & Engineering – 0.2% | |
Tensar International Corp., | | | | | | | | |
9.500%, 7–10–22 | | | 15,197 | | | | 11,398 | |
| | | | | | | | |
| |
Industrial Conglomerates – 0.2% | |
Crosby Worldwide Ltd., | | | | | | | | |
7.000%, 11–22–21 | | | 10,976 | | | | 7,391 | |
| | | | | | | | |
| |
Industrial Machinery – 1.0% | |
Dynacast International LLC, | | | | | | | | |
9.500%, 1–30–23 | | | 48,836 | | | | 47,615 | |
| | | | | | | | |
| |
Research & Consulting Services – 0.3% | |
Larchmont Resources LLC, | | | | | | | | |
11.250%, 8–7–19 (K) | | | 40,606 | | | | 12,317 | |
| | | | | | | | |
| | |
Total Industrials – 2.3% | | | | | | | 109,340 | |
Information Technology | | | | | | | | |
| |
Application Software – 4.2% | |
Applied Systems, Inc., | | | | | | | | |
7.500%, 1–23–22 | | | 34,491 | | | | 34,728 | |
Aptean Holdings, Inc., | | | | | | | | |
5.250%, 2–27–20 | | | 7,889 | | | | 7,879 | |
Misys plc and Magic Newco LLC, | | | | | | | | |
12.000%, 6–12–19 | | | 132,227 | | | | 138,838 | |
TIBCO Software, Inc., | | | | | | | | |
6.500%, 12–4–20 | | | 19,459 | | | | 19,157 | |
| | | | | | | | |
| | | | | | | 200,602 | |
| | | | | | | | |
| |
Internet Software & Services – 1.4% | |
TravelCLICK, Inc. & TCH-2 Holdings LLC: | | | | | | | | |
5.500%, 5–12–21 | | | 27,851 | | | | 27,851 | |
8.750%, 11–12–21 | | | 38,654 | | | | 37,881 | |
| | | | | | | | |
| | | | | | | 65,732 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 0.8% | |
Active Network, Inc. (The), | | | | | | | | |
5.500%, 11–15–20 | | | 15,542 | | | | 15,426 | |
Triple Point Group Holdings, Inc., | | | | | | | | |
5.250%, 7–13–20 | | | 27,290 | | | | 24,220 | |
| | | | | | | | |
| | | | | | | 39,646 | |
| | | | | | | | |
| |
Total Information Technology – 6.4% | | | | 305,980 | |
Materials | | | | | | | | |
| |
Diversified Metals & Mining – 0.2% | |
EP Minerals LLC, | | | | | | | | |
8.500%, 8–20–21 | | | 12,375 | | | | 11,880 | |
| | | | | | | | |
| |
Paper Packaging – 0.9% | |
FPC Holdings, Inc., | | | | | | | | |
9.250%, 5–27–20 | | | 32,147 | | | | 22,101 | |
| | | | | | | | |
| LOANS (I) (Continued) | | Principal | | | Value | |
Paper Packaging (Continued) | |
Ranpak (Rack Merger), | | | | | | | | |
8.250%, 10–1–22 | | $ | 22,856 | | | $ | 21,142 | |
| | | | | | | | |
| | | | | | | 43,243 | |
| | | | | | | | |
| |
Specialty Chemicals – 0.3% | |
Chromaflo Technologies Corp., | | | | | | | | |
8.250%, 6–2–20 | | | 11,000 | | | | 10,230 | |
MacDermid, Inc., | | | | | | | | |
5.500%, 6–7–20 | | | 1,792 | | | | 1,794 | |
| | | | | | | | |
| | | | | | | 12,024 | |
| | | | | | | | |
| | |
Total Materials – 1.4% | | | | | | | 67,147 | |
| | |
TOTAL LOANS – 19.7% | | | | | | $ | 934,424 | |
(Cost: $1,114,414) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (M) – 2.8% | |
Bemis Co., Inc., | | | | | | | | |
0.720%, 10–3–16 | | | 14,000 | | | | 13,999 | |
BorgWarner, Inc.: | | | | | | | | |
0.700%, 10–6–16 | | | 10,000 | | | | 9,999 | |
0.660%, 10–11–16 | | | 8,000 | | | | 7,998 | |
Clorox Co. (The), | | | | | | | | |
0.810%, 10–27–16 | | | 5,205 | | | | 5,202 | |
DTE Energy Co. (GTD by Detroit Edison Co.), | | | | | | | | |
0.610%, 10–6–16 | | | 5,000 | | | | 4,999 | |
General Mills, Inc., | | | | | | | | |
0.580%, 10–3–16 | | | 5,000 | | | | 5,000 | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | | 31,361 | | | | 31,359 | |
Kellogg Co., | | | | | | | | |
0.760%, 10–11–16 | | | 4,000 | | | | 3,999 | |
Kroger Co. (The), | | | | | | | | |
0.630%, 10–3–16 | | | 18,370 | | | | 18,369 | |
Medtronic Global Holdings SCA, | | | | | | | | |
0.720%, 10–3–16 | | | 10,000 | | | | 10,000 | |
NBCUniversal Enterprise, Inc., | | | | | | | | |
0.830%, 11–9–16 | | | 6,000 | | | | 5,994 | |
River Fuel Trust #1 (GTD by Bank of Nova Scotia), | | | | | | | | |
0.580%, 10–31–16 | | | 2,000 | | | | 1,999 | |
St. Jude Medical, Inc., | | | | | | | | |
0.700%, 10–3–16 | | | 8,709 | | | | 8,709 | |
Virginia Electric and Power Co., | | | | | | | | |
0.690%, 10–19–16 | | | 5,000 | | | | 4,998 | |
| | | | | | | | |
| | | | | | | 132,624 | |
| | | | | | | | |
| |
Master Note – 0.0% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (N) | | | 148 | | | | 148 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 2.8% | | | $ | 132,772 | |
(Cost: $132,775) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 98.1% | | | $ | 4,647,150 | |
(Cost: $5,041,881) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES (O) – 1.9% | | | | 91,970 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 4,739,120 | |
| | | | | | |
| 62 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Schedule of Investments
| * | Not shown due to rounding. |
| (A) | No dividends were paid during the preceding 12 months. |
| (B) | Listed on an exchange outside the United States. |
| (C) | Restricted securities. At September 30, 2016, the Fund owned the following restricted securities: |
| | | | | | | | | | | | | | | | |
| Security | | Acquisition Date(s) | | | Shares | | | Cost | | | Market Value | |
| Maritime Finance Co. Ltd. | | | 9–19–13 | | | | 1,750 | | | $ | 30,173 | | | | $15,277 | |
| Provo Craft & Novelty, Inc. | | | 9–15–11 | | | | 6,090 | | | | — | | | | — | * |
| | | | | | | | | | | | |
| | | | | | | | | | $ | 30,173 | | | $ | 15,277 | |
| | | | | | | | | | | | |
The total value of these securities represented 0.3% of net assets at September 30, 2016.
| (D) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
| (E) | 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. |
| (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, 2016 the total value of these securities amounted to $2,630,701 or 55.5% of net assets. |
| (G) | Payment-in-kind bonds. |
| (H) | Principal amounts are denominated in the indicated foreign currency, where applicable (CAD - Canadian Dollar and EUR - Euro). |
| (I) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (K) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
| (L) | All or a portion of this position has not settled. Full contract rates do not take effect until settlement date. |
| (M) | Rate shown is the yield to maturity at September 30, 2016. |
| (N) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
| (O) | Cash of $3,920 is held in collateralized accounts for OTC derivatives collateral as governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| Canadian Dollar | | | 35,157 | | | U.S. Dollar | | | 26,999 | | | 10–26–16 | | Morgan Stanley International | | $ | 197 | | | $ | — | |
| Euro | | | 8,098 | | | U.S. Dollar | | | 9,120 | | | 10–26–16 | | Morgan Stanley International | | | 13 | | | | — | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 210 | | | $ | — | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 63 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 8,148 | | | $ | — | | | $ | 513 | |
Financials | | | — | | | | — | | | | 15,277 | |
Total Common Stocks | | $ | 8,148 | | | $ | — | | | $ | 15,790 | |
Preferred Stocks | | | 20,882 | | | | — | | | | — | |
Warrants | | | — | | | | 179 | | | | — | |
Corporate Debt Securities | | | — | | | | 3,534,955 | | | | — | |
Loans | | | — | | | | 514,237 | | | | 420,187 | |
Short-Term Securities | | | — | | | | 132,772 | | | | — | |
Total | | $ | 29,030 | | | $ | 4,182,143 | | | $ | 435,977 | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 210 | | | $ | — | |
The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determine fair value:
| | | | | | | | | | | | |
| | | Common
Stocks | | | Warrants | | | Loans | |
Beginning Balance 4–1–16 | | $ | 17,586 | | | $ | – | | | $ | 327,012 | |
Net realized gain (loss) | | | — | | | | – | | | | (9,825 | ) |
Net change in unrealized appreciation (depreciation) | | | (1,796 | ) | | | (19 | ) | | | 33,691 | |
Purchases | | | — | | | | – | | | | 15,279 | |
Sales | | | — | | | | – | | | | (86,275 | ) |
Amortization/Accretion of premium/discount | | | — | | | | – | | | | 573 | |
Transfers into Level 3 during the period | | | — | | | | 19 | | | | 199,505 | |
Transfers out of Level 3 during the period | | | — | | | | – | | | | (59,773 | ) |
| | | | |
Ending Balance 9–30–16 | | $ | 15,790 | | | $ | – | | | $ | 420,187 | |
| | | | |
Net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of 9–30–16 | | $ | (15,081 | ) | | $ | (19 | ) | | $ | 22,115 | |
| | | | |
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. During the period ended September 30, 2016, there were no transfers between Levels 1 and 2.
Information about Level 3 fair value measurements:
| | | | | | | | |
| | | Fair Value at
9–30–16 | | | Valuation Technique(s) | | Unobservable Input(s) |
Assets | | | | | | | | |
Common Stocks | | $ | 513 | | | Broker | | Broker quotes |
| | | |
| | | 15,277 | | | Third-party vendor pricing service | | Broker quotes |
| | | |
Loans | | | 420,187 | | | Third-party vendor pricing service | | Broker quotes |
The following acronyms are used throughout this schedule:
GTD = Guaranteed
REIT = Real Estate Investment Trust
OTC = Over the Counter
See Accompanying Notes to Financial Statements.
| | | | | | |
| 64 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY INTERNATIONAL CORE EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 97.5% | |
Financials | | | 17.3% | |
Health Care | | | 14.6% | |
Consumer Discretionary | | | 13.4% | |
Industrials | | | 12.9% | |
Information Technology | | | 8.9% | |
Consumer Staples | | | 8.2% | |
Energy | | | 7.9% | |
Materials | | | 7.5% | |
Telecommunication Services | | | 5.0% | |
Real Estate | | | 1.8% | |
Rights | | | 0.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.5% | |
Lipper Rankings
| | | | | | |
Category: Lipper International
Large-Cap Core Funds | | Rank | | Percentile | |
1 Year | | 46/135 | | | 34 | |
3 Year | | 4/116 | | | 4 | |
5 Year | | 7/107 | | | 7 | |
10 Year | | 3/84 | | | 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
| | | | |
Europe | | | 58.0% | |
United Kingdom | | | 16.2% | |
France | | | 9.9% | |
Switzerland | | | 8.2% | |
Germany | | | 7.5% | |
Ireland | | | 4.4% | |
Other Europe | | | 11.8% | |
Pacific Basin | | | 31.2% | |
Japan | | | 17.3% | |
China | | | 4.4% | |
Australia | | | 3.9% | |
Other Pacific Basin | | | 5.6% | |
Other | | | 4.4% | |
North America | | | 2.7% | |
South America | | | 1.2% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.5% | |
Top 10 Equity Holdings
| | | | | | |
| Company | | Country | | Sector | | Industry |
Bridgestone Corp. | | Japan | | Consumer Discretionary | | Tires & Rubber |
Teva Pharmaceutical Industries Ltd. ADR | | Israel | | Health Care | | Pharmaceuticals |
Shire Pharmaceuticals Group plc ADR | | Ireland | | Health Care | | Biotechnology |
Pernod Ricard | | France | | Consumer Staples | | Distillers & Vintners |
Deutsche Post AG | | Germany | | Industrials | | Air Freight & Logistics |
Nestle S.A., Registered Shares | | Switzerland | | Consumer Staples | | Packaged Foods & Meats |
SoftBank Group Corp. | | Japan | | Telecommunication Services | | Wireless Telecommunication Service |
Naspers Ltd., Class N | | South Africa | | Consumer Discretionary | | Cable & Satellite |
BAE Systems plc | | United Kingdom | | Industrials | | Aerospace & Defense |
Fresenius SE & Co. KGaA | | Germany | | Health Care | | Health Care Services |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recent published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 65 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Australia | | | | | | | | |
| | |
Energy – 1.3% | | | | | | | | |
Oil Search Ltd. | | | 10,674 | | | $ | 57,920 | |
| | | | | | | | |
| | |
Financials – 1.5% | | | | | | | | |
Westpac Banking Corp. | | | 3,106 | | | | 70,161 | |
| | | | | | | | |
| | |
Materials – 1.1% | | | | | | | | |
Amcor Ltd. | | | 4,313 | | | | 50, 009 | |
| | | | | | | | |
| | |
Total Australia – 3.9% | | | | | | | 178,090 | |
Brazil | | | | | | | | |
| |
Information Technology – 1.2% | |
MercadoLibre, Inc. | | | 300 | | | | 55,440 | |
| | | | | | | | |
| | |
Total Brazil – 1.2% | | | | | | | 55,440 | |
Canada | | | | | | | | |
| | |
Energy – 1.4% | | | | | | | | |
Suncor Energy, Inc. | | | 2,266 | | | | 62,891 | |
| | | | | | | | |
| | |
Total Canada – 1.4% | | | | | | | 62,891 | |
China | | | | | | | | |
| |
Consumer Discretionary – 1.5% | |
JD.com, Inc. ADR (A) | | | 2,593 | | | | 67,640 | |
| | | | | | | | |
| | |
Consumer Staples – 0.5% | | | | | | | | |
Kweichow Moutai Co. Ltd., A Shares | | | 517 | | | | 23,089 | |
| | | | | | | | |
| | |
Financials – 1.3% | | | | | | | | |
PICC Property and Casualty Co. Ltd., H Shares | | | 36,548 | | | | 60,501 | |
| | | | | | | | |
| |
Information Technology – 1.1% | |
Alibaba Group Holding Ltd. ADR (A) | | | 450 | | | | 47,595 | |
| | | | | | | | |
| | |
Total China – 4.4% | | | | | | | 198,825 | |
Denmark | | | | | | | | |
| | |
Financials – 1.3% | | | | | | | | |
Danske Bank A.S. | | | 1,953 | | | | 56,982 | |
| | | | | | | | |
| | |
Total Denmark – 1.3% | | | | | | | 56,982 | |
Finland | | | | | | | | |
| |
Information Technology – 2.2% | |
Nokia Corp., Series A ADR | | | 5,026 | | | | 29,100 | |
Nokia OYJ | | | 12,040 | | | | 69,787 | |
| | | | | | | | |
| | | | | | | 98,887 | |
| | | | | | | | |
| | |
Total Finland – 2.2% | | | | | | | 98,887 | |
France | | | | | | | | |
| |
Consumer Discretionary – 1.1% | |
Publicis Groupe S.A. | | | 674 | | | | 50,941 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Consumer Staples – 2.3% | | | | | | | | |
Pernod Ricard | | | 874 | | | $ | 103,459 | |
| | | | | | | | |
| | |
Energy – 1.3% | | | | | | | | |
Total S.A. | | | 1,209 | | | | 57,268 | |
| | | | | | | | |
| | |
Industrials – 3.9% | | | | | | | | |
Bouygues S.A. | | | 1,753 | | | | 58,077 | |
European Aeronautic Defence and Space Co. | | | 1,033 | | | | 62,473 | |
Vinci | | | 716 | | | | 54,752 | |
| | | | | | | | |
| | | | | | | 175,302 | |
| | | | | | | | |
| | |
Materials – 0.8% | | | | | | | | |
L Air Liquide S.A. | | | 364 | | | | 39,008 | |
| | | | | | | | |
| |
Telecommunication Services – 0.5% | |
Orange S.A. | | | 1,622 | | | | 25,378 | |
| | | | | | | | |
| | |
Total France – 9.9% | | | | | | | 451,356 | |
Germany | | | | | | | | |
| | |
Health Care – 5.3% | | | | | | | | |
Bayer AG | | | 774 | | | | 77,775 | |
Fresenius Medical Care AG & Co. KGaA | | | 881 | | | | 76,913 | |
Fresenius SE & Co. KGaA | | | 1,080 | | | | 86,137 | |
| | | | | | | | |
| | | | | | | 240,825 | |
| | | | | | | | |
| | |
Industrials – 2.2% | | | | | | | | |
Deutsche Post AG | | | 3,131 | | | | 97,854 | |
| | | | | | | | |
| | |
Total Germany – 7.5% | | | | | | | 338,679 | |
Hong Kong | | | | | | | | |
| | |
Financials – 1.4% | | | | | | | | |
AIA Group Ltd. | | | 9,691 | | | | 64,408 | |
| | | | | | | | |
| | |
Real Estate – 1.8% | | | | | | | | |
Cheung Kong (Holdings) Ltd. | | | 6,384 | | | | 81,156 | |
| | | | | | | | |
| | |
Total Hong Kong – 3.2% | | | | | | | 145,564 | |
Ireland | | | | | | | | |
| | |
Health Care – 2.3% | | | | | | | | |
Shire Pharmaceuticals Group plc ADR | | | 542 | | | | 105,099 | |
| | | | | | | | |
| | |
Materials – 2.1% | | | | | | | | |
CRH plc | | | 1,496 | | | | 49,677 | |
James Hardie Industries plc, Class C | | | 3,030 | | | | 47,125 | |
| | | | | | | | |
| | | | | | | 96,802 | |
| | | | | | | | |
| | |
Total Ireland – 4.4% | | | | | | | 201,901 | |
Israel | | | | | | | | |
| | |
Health Care – 2.3% | | | | | | | | |
Teva Pharmaceutical Industries Ltd. ADR | | | 2,312 | | | | 106,376 | |
| | | | | | | | |
| | |
Total Israel – 2.3% | | | | | | | 106,376 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Italy | | | | | | | | |
| | |
Financials – 1.0% | | | | | | | | |
Banca Intesa S.p.A. | | | 20,870 | | | $ | 46,279 | |
| | | | | | | | |
| | |
Total Italy – 1.0% | | | | | | | 46,279 | |
Japan | | | | | | | | |
| |
Consumer Discretionary – 6.5% | |
Bridgestone Corp. | | | 3,124 | | | | 114,175 | |
Honda Motor Co. Ltd. | | | 2,814 | | | | 80,129 | |
Isuzu Motors Ltd. | | | 6,390 | | | | 74,322 | |
Nissin Kogyo Co. Ltd. | | | 1,822 | | | | 27,513 | |
| | | | | | | | |
| | | | | | | 296,139 | |
| | | | | | | | |
| | |
Energy – 1.5% | | | | | | | | |
Inpex Corp. | | | 7,750 | | | | 69,484 | |
| | | | | | | | |
| | |
Financials – 2.4% | | | | | | | | |
Dai-ichi Mutual Life Insurance Co. (The) | | | 4,708 | | | | 63,673 | |
Tokio Marine Holdings, Inc. | | | 1,236 | | | | 46,716 | |
| | | | | | | | |
| | | | | | | 110,389 | |
| | | | | | | | |
| | |
Industrials – 1.8% | | | | | | | | |
Komatsu Ltd. | | | 2,353 | | | | 53,249 | |
Mitsubishi Heavy Industries Ltd. | | | 6,604 | | | | 27,294 | |
| | | | | | | | |
| | | | | | | 80,543 | |
| | | | | | | | |
| |
Information Technology – 1.3% | |
Fujitsu Ltd. | | | 6,763 | | | | 36,014 | |
Yahoo Japan Corp. | | | 5,175 | | | | 20,514 | |
| | | | | | | | |
| | | | | | | 56,528 | |
| | | | | | | | |
| | |
Materials – 0.6% | | | | | | | | |
Taiheiyo Cement Corp. | | | 9,082 | | | | 25,883 | |
| | | | | | | | |
| |
Telecommunication Services – 3.2% | |
Nippon Telegraph and Telephone Corp. | | | 1,084 | | | | 49,328 | |
SoftBank Group Corp. | | | 1,497 | | | | 96,275 | |
| | | | | | | | |
| | | | | | | 145,603 | |
| | | | | | | | |
| | |
Total Japan – 17.3% | | | | | | | 784,569 | |
Luxembourg | | | | | | | | |
| | |
Energy – 0.9% | | | | | | | | |
Tenaris S.A. | | | 1,486 | | | | 21,174 | |
Tenaris S.A. ADR | | | 675 | | | | 19,156 | |
| | | | | | | | |
| | | | | | | 40,330 | |
| | | | | | | | |
| | |
Total Luxembourg – 0.9% | | | | | | | 40,330 | |
Netherlands | | | | | | | | |
| | |
Financials – 1.2% | | | | | | | | |
ING Groep N.V., Certicaaten Van Aandelen | | | 4,303 | | | | 53,123 | |
| | | | | | | | |
| | |
Total Netherlands – 1.2% | | | | | | | 53,123 | |
| | | | | | |
| 66 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Norway | | | | | | | | |
| | |
Financials – 1.2% | | | | | | | | |
DNB ASA | | | 4,232 | | | $ | 55,418 | |
| | | | | | | | |
| | |
Total Norway – 1.2% | | | | | | | 55,418 | |
South Africa | | | | | | | | |
| |
Consumer Discretionary – 2.1% | |
Naspers Ltd., Class N | | | 540 | | | | 93,399 | |
| | | | | | | | |
| | |
Total South Africa – 2.1% | | | | | | | 93,399 | |
South Korea | | | | | | | | |
| |
Information Technology – 1.8% | |
Samsung Electronics Co. Ltd. | | | 57 | | | | 82,644 | |
| | | | | | | | |
| | |
Total South Korea – 1.8% | | | | | | | 82,644 | |
Spain | | | | | | | | |
| | |
Financials – 1.4% | | | | | | | | |
Banco Bilbao Vizcaya Argentaria S.A. | | | 10,180 | | | | 61,549 | |
| | | | | | | | |
| | |
Total Spain – 1.4% | | | | | | | 61,549 | |
Sweden | |
| |
Financials – 1.1% | |
SwedBank AB | | | 2,152 | | | | 50,560 | |
| | | | | | | | |
| |
Materials – 1.5% | |
Svenska Cellulosa Aktiebolaget SCA (publ), Class B | | | 2,242 | | | | 66,590 | |
| | | | | | | | |
| |
Total Sweden – 2.6% | | | | 117,150 | |
Switzerland | |
| |
Consumer Discretionary – 0.6% | |
Dufry AG (A) | | | 227 | | | | 28,417 | |
| | | | | | | | |
| |
Consumer Staples – 2.2% | |
Nestle S.A., Registered Shares | | | 1,241 | | | | 97,778 | |
| | | | | | | | |
| |
Health Care – 2.4% | |
Novartis AG, Registered Shares | | | 736 | | | | 57,872 | |
Roche Holdings AG, Genusscheine | | | 203 | | | | 50,383 | |
| | | | | | | | |
| | | | | | | 108,255 | |
| | | | | | | | |
| |
Industrials – 3.0% | |
Adecco S.A. | | | 1,467 | | | | 82,608 | |
Wolseley plc | | | 943 | | | | 53,230 | |
| | | | | | | | |
| | | | | | | 135,838 | |
| | | | | | | | |
| |
Total Switzerland – 8.2% | | | | 370,288 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Taiwan | |
| |
Information Technology – 0.6% | |
Hon Hai Precision Industry Co. Ltd. | | | 10,874 | | | $ | 27,405 | |
| | | | | | | | |
| |
Total Taiwan – 0.6% | | | | 27,405 | |
United Kingdom | |
| |
Consumer Discretionary – 1.6% | |
WPP Group plc | | | 3,008 | | | | 70,729 | |
| | | | | | | | |
| |
Consumer Staples – 3.2% | |
Imperial Tobacco Group plc | | | 1,419 | | | | 73,076 | |
Unilever plc | | | 1,526 | | | | 72,272 | |
| | | | | | | | |
| | | | | | | 145,348 | |
| | | | | | | | |
| |
Energy – 1.5% | |
BP plc | | | 11,619 | | | | 67,767 | |
Royal Dutch Shell plc, Class A | | | — | * | | | — | * |
| | | | | | | | |
| | | | | | | 67,767 | |
| | | | | | | | |
| |
Financials – 2.9% | |
Aviva plc | | | 9,939 | | | | 56,744 | |
Legal & General Group plc | | | 18,984 | | | | 53,814 | |
Prudential plc | | | 1,240 | | | | 21,963 | |
| | | | | | | | |
| | | | | | | 132,521 | |
| | | | | | | | |
| |
Health Care – 2.3% | |
Shire plc | | | 704 | | | | 45,593 | |
Smith & Nephew plc | | | 3,607 | | | | 58,153 | |
| | | | | | | | |
| | | | | | | 103,746 | |
| | | | | | | | |
| |
Industrials – 2.0% | |
BAE Systems plc | | | 13,281 | | | | 90,202 | |
| | | | | | | | |
| |
Materials – 1.4% | |
Rio Tinto plc | | | 1,479 | | | | 49,363 | |
Rio Tinto plc ADR | | | 486 | | | | 16,236 | |
| | | | | | | | |
| | | | | | | 65,599 | |
| | | | | | | | |
| |
Telecommunication Services – 1.3% | |
BT Group plc | | | 11,297 | | | | 56,966 | |
| | | | | | | | |
| |
Total United Kingdom – 16.2% | | | | 732,878 | |
United States | |
| |
Information Technology – 0.7% | |
Cognizant Technology Solutions Corp., Class A (A) | | | 660 | | | | 31,508 | |
| | | | | | | | |
| | |
Total United States – 0.7% | | | | | | | 31,508 | |
| |
TOTAL COMMON STOCKS – 96.9% | | | $ | 4,391,531 | |
(Cost: $4,283,037) | | | | | | | | |
| | | | | | | | |
| PREFERRED STOCKS | | Shares | | | Value | |
United States | |
| |
Financials – 0.6% | |
Mandatory Exchangeable Trust, 5.750% (B) | | | 217 | | | $ | 28,048 | |
| | | | | | | | |
| |
Total United States – 0.6% | | | | 28,048 | |
| |
TOTAL PREFERRED STOCKS – 0.6% | | | $ | 28,048 | |
(Cost: $21,710) | | | | | | | | |
| | |
| RIGHTS | | | | | | |
France – 0.0% | |
L’Air Liquide S.A. | | | 364 | | | | 994 | |
| | | | | | | | |
| | |
TOTAL RIGHTS – 0.0% | | | | | | $ | 994 | |
(Cost: $1,053) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (C) – 1.8% | |
BorgWarner, Inc. | | | | | | | | |
0.700%, 10–6–16 | | $ | 10,000 | | | | 9,999 | |
DTE Gas Co. | | | | | | | | |
0.500%, 10–3–16 | | | 15,900 | | | | 15,899 | |
General Mills, Inc. | | | | | | | | |
0.510%, 10–5–16 | | | 19,000 | | | | 18,998 | |
J.M. Smucker Co. (The) | | | | | | | | |
0.700%, 10–3–16 | | | 9,278 | | | | 9,277 | |
Kroger Co. (The) | | | | | | | | |
0.630%, 10–3–16 | | | 25,000 | | | | 24,999 | |
| | | | | | | | |
| | | | | | | 79,172 | |
| | | | | | | | |
| |
Master Note – 0.0% | |
Toyota Motor Credit Corp. | | | | | | | | |
0.600%, 10–5–16 (D) | | | 1,982 | | | | 1,982 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 1.8% | | | $ | 81,154 | |
(Cost: $81,156) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 99.3% | | | $ | 4,501,727 | |
(Cost: $4,386,956) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.7% | | | | 32,892 | |
| |
NET ASSETS – 100.0% | | | $ | 4,534,619 | |
Notes to Schedule of Investments
| * | Not shown due to rounding. |
| (A) | No dividends were paid during the preceding 12 months. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 67 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY INTERNATIONAL CORE EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| (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, 2016 the total value of these securities amounted to $28,048 or 0.6% of net assets. |
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following forward foreign currency contracts were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Currency to be
Delivered | | | | | Currency to be
Received | | | Settlement
Date | | Counterparty | | Unrealized
Appreciation | | | Unrealized
Depreciation | | | | |
| Euro | | | 320,400 | | | U.S. Dollar | | | 360,791 | | | 10–26–16 | | State Street Global Markets | | $ | 488 | | | $ | — | | | | | |
| | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 4,391,531 | | | $ | — | | | $ | — | |
Preferred Stocks | | | — | | | | 28,048 | | | | — | |
Rights | | | — | | | | 994 | | | | — | |
Short-Term Securities | | | — | | | | 81,154 | | | | — | |
Total | | $ | 4,391,531 | | | $ | 110,196 | | | $ | — | |
Forward Foreign Currency Contracts | | $ | — | | | $ | 488 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
ADR = American Depositary Receipts
Market Sector Diversification
| | | | |
(as a % of net assets) | | | | |
Financials | | | 17.3% | |
Health Care | | | 14.6% | |
Consumer Discretionary | | | 13.4% | |
Industrials | | | 12.9% | |
Information Technology | | | 8.9% | |
Consumer Staples | | | 8.2% | |
Energy | | | 7.9% | |
Materials | | | 7.5% | |
Telecommunication Services | | | 5.0% | |
Real Estate | | | 1.8% | |
Other+ | | | 2.5% | |
| + | Includes cash and other assets (net of liabilities), and cash equivalents |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 68 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY LARGE CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.7% | |
Information Technology | | | 41.6% | |
Health Care | | | 16.8% | |
Consumer Discretionary | | | 14.9% | |
Industrials | | | 11.5% | |
Energy | | | 4.4% | |
Financials | | | 3.9% | |
Consumer Staples | | | 3.2% | |
Real Estate | | | 2.1% | |
Materials | | | 1.3% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.3% | |
Lipper Rankings
| | | | | | |
Category: Lipper Large-Cap Growth
Funds | | Rank | | Percentile | |
1 Year | | 461/694 | | | 67 | |
3 Year | | 219/628 | | | 35 | |
5 Year | | 281/549 | | | 52 | |
10 Year | | 149/398 | | | 38 | |
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 |
MasterCard, Inc., Class A | | Information Technology | | Data Processing & Outsourced Services |
Visa, Inc., Class A | | Information Technology | | Data Processing & Outsourced Services |
Lam Research Corp. | | Information Technology | | Semiconductor Equipment |
Amazon.com, Inc. | | Consumer Discretionary | | Internet & Direct Marketing Retail |
Home Depot, Inc. (The) | | Consumer Discretionary | | Home Improvement Retail |
Facebook, Inc., Class A | | Information Technology | | Internet Software & Services |
Allergan plc | | Health Care | | Pharmaceuticals |
Microsoft Corp. | | Information Technology | | Systems Software |
Alphabet, Inc., Class A | | Information Technology | | Internet Software & Services |
Philip Morris International, Inc. | | Consumer Staples | | Tobacco |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 69 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LARGE CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Automotive Retail – 3.1% | |
AutoZone, Inc. (A) | | | 31 | | | $ | 23,972 | |
O’Reilly Automotive, Inc. (A) | | | 109 | | | | 30,420 | |
| | | | | | | | |
| | | | | | | 54,392 | |
| | | | | | | | |
| |
Cable & Satellite – 1.9% | |
Comcast Corp., Class A | | | 510 | | | | 33,840 | |
| | | | | | | | |
| |
Footwear – 0.5% | |
NIKE, Inc., Class B | | | 155 | | | | 8,150 | |
| | | | | | | | |
| |
Home Improvement Retail – 3.7% | |
Home Depot, Inc. (The) | | | 502 | | | | 64,533 | |
| | | | | | | | |
| |
Internet & Direct Marketing Retail – 4.0% | |
Amazon.com, Inc. (A) | | | 83 | | | | 69,252 | |
| | | | | | | | |
| |
Restaurants – 1.0% | |
Starbucks Corp. | | | 309 | | | | 16,702 | |
| | | | | | | | |
| |
Specialty Stores – 0.7% | |
Ulta Salon, Cosmetics & Fragrance, Inc. (A) | | | 51 | | | | 12,185 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 14.9% | | | | 259,054 | |
Consumer Staples | |
| |
Tobacco – 3.2% | |
Philip Morris International, Inc. | | | 579 | | | | 56,251 | |
| | | | | | | | |
| |
Total Consumer Staples – 3.2% | | | | 56,251 | |
Energy | |
| |
Oil & Gas Equipment & Services – 2.1% | |
Halliburton Co. | | | 467 | | | | 20,936 | |
Schlumberger Ltd. | | | 195 | | | | 15,351 | |
| | | | | | | | |
| | | | | | | 36,287 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 2.3% | |
EOG Resources, Inc. | | | 412 | | | | 39,806 | |
| | | | | | | | |
| |
Total Energy – 4.4% | | | | 76,093 | |
Financials | |
| |
Financial Exchanges & Data – 2.2% | |
CME Group, Inc. | | | 353 | | | | 36,917 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 1.7% | |
Charles Schwab Corp. (The) | | | 944 | | | | 29,786 | |
| | | | | | | | |
| |
Total Financials – 3.9% | | | | 66,703 | |
Health Care | |
| |
Biotechnology – 7.5% | |
Alexion Pharmaceuticals, Inc. (A) | | | 72 | | | | 8,798 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Biotechnology (Continued) | |
Biogen, Inc. (A) | | | 70 | | | $ | 21,917 | |
Celgene Corp. (A) | | | 457 | | | | 47,749 | |
Shire Pharmaceuticals Group plc ADR | | | 222 | | | | 42,959 | |
Vertex Pharmaceuticals, Inc. (A) | | | 97 | | | | 8,416 | |
| | | | | | | | |
| | | | | | | 129,839 | |
| | | | | | | | |
| |
Health Care Equipment – 4.0% | |
DexCom, Inc. (A) | | | 416 | | | | 36,440 | |
Edwards Lifesciences Corp. (A) | | | 273 | | | | 32,955 | |
| | | | | | | | |
| | | | | | | 69,395 | |
| | | | | | | | |
| |
Health Care Facilities – 0.7% | |
HCA Holdings, Inc. (A) | | | 173 | | | | 13,069 | |
| | | | | | | | |
| |
Pharmaceuticals – 4.6% | |
Allergan plc (A) | | | 267 | | | | 61,440 | |
Bristol-Myers Squibb Co. | | | 328 | | | | 17,697 | |
| | | | | | | | |
| | | | | | | 79,137 | |
| | | | | | | | |
| |
Total Health Care – 16.8% | | | | 291,440 | |
Industrials | |
| |
Aerospace & Defense – 5.2% | |
Honeywell International, Inc. | | | 267 | | | | 31,176 | |
Lockheed Martin Corp. | | | 169 | | | | 40,513 | |
Northrop Grumman Corp. | | | 87 | | | | 18,528 | |
| | | | | | | | |
| | | | | | | 90,217 | |
| | | | | | | | |
| |
Industrial Conglomerates – 1.5% | |
Danaher Corp. | | | 342 | | | | 26,817 | |
| | | | | | | | |
| |
Railroads – 4.8% | |
Canadian Pacific Railway Ltd. | | | 282 | | | | 43,092 | |
Union Pacific Corp. | | | 404 | | | | 39,422 | |
| | | | | | | | |
| | | | | | | 82,514 | |
| | | | | | | | |
| |
Total Industrials – 11.5% | | | | 199,548 | |
Information Technology | |
| |
Application Software – 4.5% | |
Adobe Systems, Inc. (A) | | | 486 | | | | 52,707 | |
salesforce.com, Inc. (A) | | | 363 | | | | 25,907 | |
| | | | | | | | |
| | | | | | | 78,614 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 10.9% | |
FleetCor Technologies, Inc. (A) | | | 212 | | | | 36,761 | |
MasterCard, Inc., Class A | | | 751 | | | | 76,440 | |
Visa, Inc., Class A | | | 916 | | | | 75,712 | |
| | | | | | | | |
| | | | | | | 188,913 | |
| | | | | | | | |
| |
Home Entertainment Software – 1.1% | |
Electronic Arts, Inc. (A) | | | 226 | | | | 19,326 | |
| | | | | | | | |
| |
Internet Software & Services – 9.1% | |
Alphabet, Inc., Class A (A) | | | 71 | | | | 56,847 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Internet Software & Services (Continued) | |
Alphabet, Inc., Class C (A) | | | 49 | | | $ | 37,817 | |
Facebook, Inc., Class A (A) | | | 496 | | | | 63,596 | |
| | | | | | | | |
| | | | | | | 158,260 | |
| | | | | | | | |
| |
Semiconductor Equipment – 5.0% | |
Applied Materials, Inc. | | | 585 | | | | 17,650 | |
Lam Research Corp. | | | 733 | | | | 69,424 | |
| | | | | | | | |
| | | | | | | 87,074 | |
| | | | | | | | |
| |
Semiconductors – 5.3% | |
Microchip Technology, Inc. | | | 885 | | | | 55,003 | |
NXP Semiconductors N.V. (A) | | | 362 | | | | 36,877 | |
| | | | | | | | |
| | | | | | | 91,880 | |
| | | | | | | | |
| |
Systems Software – 3.4% | |
Microsoft Corp. | | | 1,010 | | | | 58,182 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 2.3% | |
Apple, Inc. | | | 351 | | | | 39,656 | |
| | | | | | | | |
| |
Total Information Technology – 41.6% | | | | 721,905 | |
Materials | |
| |
Diversified Chemicals – 1.3% | |
PPG Industries, Inc. | | | 223 | | | | 23,029 | |
| | | | | | | | |
| |
Total Materials – 1.3% | | | | 23,029 | |
Real Estate | |
| |
Specialized REITs – 2.1% | |
American Tower Corp., Class A | | | 320 | | | | 36,265 | |
| | | | | | | | |
| |
Total Real Estate – 2.1% | | | | 36,265 | |
| |
TOTAL COMMON STOCKS – 99.7% | | | $ | 1,730,288 | |
(Cost: $1,226,718) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (B) – 0.3% | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | $ | 6,387 | | | | 6,387 | |
| | | | | | | | |
| |
Master Note – 0.1% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (C) | | | 1,121 | | | | 1,121 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 0.4% | | | $ | 7,508 | |
(Cost: $7,508) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.1% | | | $ | 1,737,796 | |
(Cost: $1,234,226) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)% | | | | (1,580 | ) |
| |
NET ASSETS – 100.0% | | | $ | 1,736,216 | |
Notes to Schedule of Investments
| (A) | No dividends were paid during the preceding 12 months. |
| | | | | | |
| 70 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LARGE CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| (B) | Rate shown is the yield to maturity at September 30, 2016. |
| (C) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 1,730,288 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 7,508 | | | | — | |
Total | | $ | 1,730,288 | | | $ | 7,508 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 71 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY LIMITED-TERM BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Bonds | | | 94.9% | |
Corporate Debt Securities | | | 62.4% | |
United States Government and Government Agency Obligations | | | 29.2% | |
Municipal Bonds – Taxable | | | 2.0% | |
Asset-Backed Securities | | | 1.0% | |
Mortgage-Backed Securities | | | 0.3% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 5.1% | |
Lipper Rankings
| | | | | | |
Category: Lipper Short-Intermediate Investment Grade Debt Funds | | Rank | | Percentile | |
1 Year | | 84/190 | | | 44 | |
3 Year | | 94/155 | | | 61 | |
5 Year | | 88/111 | | | 79 | |
10 Year | | 51/85 | | | 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.
Quality Weightings
| | | | |
Investment Grade | | | 87.3% | |
AAA | | | 0.7% | |
AA | | | 34.8% | |
A | | | 22.2% | |
BBB | | | 29.6% | |
Non-Investment Grade | | | 7.6% | |
BB | | | 1.6% | |
B | | | 0.4% | |
CCC | | | 0.4% | |
Non-rated | | | 5.2% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 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.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 72 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| ASSET-BACKED SECURITIES | | Principal | | | Value | |
American Airlines Class AA Pass Through Certificates, Series 2016-2, | | | | | | | | |
3.200%, 6–15–28 | | $ | 5,000 | | | $ | 5,125 | |
SBA Tower Trust, Series 2013-1C (GTD by SBA Guarantor LLC and SBA Holdings LLC), | | | | | | | | |
2.240%, 4–16–18 (A) | | | 8,035 | | | | 8,060 | |
SBA Tower Trust, Series 2016-1 (GTD by SBA Guarantor LLC and SBA Holdings LLC), | | | | | | | | |
2.877%, 7–15–21 (A) | | | 5,500 | | | | 5,593 | |
| | | | | | | | |
| |
TOTAL ASSET-BACKED
SECURITIES – 1.0% | | | $ | 18,778 | |
(Cost: $18,548) | | | | | | | | |
| | |
| CORPORATE DEBT SECURITIES | | | | | | |
Consumer Discretionary | | | | | | | | |
| | |
Apparel Retail – 0.2% | | | | | | | | |
TJX Cos., Inc. (The), | | | | | | | | |
2.750%, 6–15–21 | | | 3,500 | | | | 3,678 | |
| | | | | | | | |
| |
Apparel, Accessories & Luxury Goods – 1.0% | |
Hanesbrands, Inc., | | | | | | | | |
4.625%, 5–15–24 (A) | | | 7,650 | | | | 7,851 | |
LVMH Moet Hennessy – Louis Vuitton, | | | | | | | | |
1.625%, 6–29–17 (A) | | | 10,275 | | | | 10,293 | |
| | | | | | | | |
| | | | | | | 18,144 | |
| | | | | | | | |
| |
Automobile Manufacturers – 1.4% | | | | | |
BMW U.S. Capital LLC, | | | | | | | | |
2.000%, 4–11–21 (A) | | | 8,500 | | | | 8,596 | |
General Motors Co., | | | | | | | | |
4.875%, 10–2–23 | | | 10,500 | | | | 11,381 | |
Toyota Motor Credit Corp., | | | | | | | | |
2.000%, 10–24–18 | | | 5,125 | | | | 5,200 | |
| | | | | | | | |
| | | | | | | 25,177 | |
| | | | | | | | |
| | |
Cable & Satellite – 1.3% | | | | | | | | |
Comcast Corp. (GTD by Comcast Cable Communications and NBCUniversal): | | | | | | | | |
1.625%, 1–15–22 | | | 3,950 | | | | 3,917 | |
2.350%, 1–15–27 | | | 3,000 | | | | 2,954 | |
DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., | | | | | | | | |
5.875%, 10–1–19 | | | 1,000 | | | | 1,119 | |
Lender Processing Services, Inc. and Black Knight Lending Solutions, Inc., | | | | | | | | |
5.750%, 4–15–23 | | | 4,058 | | | | 4,271 | |
Time Warner Cable, Inc., | | | | | | | | |
5.850%, 5–1–17 | | | 6,830 | | | | 7,001 | |
Time Warner Co., Inc. (GTD by Time Warner, Inc.), | | | | | | | | |
7.250%, 10–15–17 | | | 4,000 | | | | 4,237 | |
| | | | | | | | |
| | | | | | | 23,499 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
General Merchandise Stores – 0.8% | |
Dollar General Corp.: | | | | | | | | |
4.125%, 7–15–17 | | $ | 12,500 | | | $ | 12,782 | |
1.875%, 4–15–18 | | | 3,000 | | | | 3,017 | |
| | | | | | | | |
| | | | | | | 15,799 | |
| | | | | | | | |
| |
Internet & Direct Marketing Retail – 0.8% | |
Amazon.com, Inc.: | | | | | | | | |
1.200%, 11–29–17 | | | 8,000 | | | | 8,007 | |
3.800%, 12–5–24 | | | 6,305 | | | | 6,992 | |
| | | | | | | | |
| | | | | | | 14,999 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 5.5% | | | | 101,296 | |
Consumer Staples | | | | | | | | |
| |
Brewers – 1.0% | |
Anheuser-Busch InBev S.A./N.V., | | | | | | | | |
3.300%, 2–1–23 | | | 18,225 | | | | 19,222 | |
| | | | | | | | |
| |
Distillers & Vintners – 0.5% | |
Beam, Inc., | | | | | | | | |
1.750%, 6–15–18 | | | 10,000 | | | | 10,022 | |
| | | | | | | | |
| |
Drug Retail – 0.9% | |
CVS Health Corp.: | | | | | | | | |
2.250%, 12–5–18 | | | 11,000 | | | | 11,197 | |
2.125%, 6–1–21 | | | 6,050 | | | | 6,112 | |
| | | | | | | | |
| | | | | | | 17,309 | |
| | | | | | | | |
| |
Food Distributors – 0.1% | |
ConAgra Foods, Inc., | | | | | | | | |
5.819%, 6–15–17 | | | 2,500 | | | | 2,571 | |
| | | | | | | | |
| |
Food Retail – 0.3% | |
Kroger Co. (The), | | | | | | | | |
1.500%, 9–30–19 | | | 5,250 | | | | 5,239 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 1.8% | |
Hershey Co. (The), | | | | | | | | |
1.600%, 8–21–18 | | | 8,860 | | | | 8,949 | |
Kraft Heinz Foods Co., | | | | | | | | |
4.875%, 2–15–25 (A) | | | 12,750 | | | | 14,064 | |
Tyson Foods, Inc. (GTD by Tyson Fresh Meats, Inc.), | | | | | | | | |
2.650%, 8–15–19 | | | 9,450 | | | | 9,689 | |
| | | | | | | | |
| | | | | | | 32,702 | |
| | | | | | | | |
| |
Soft Drinks – 0.4% | |
Bottling Group LLC, | | | | | | | | |
5.125%, 1–15–19 | | | 4,059 | | | | 4,402 | |
PepsiCo, Inc., | | | | | | | | |
3.100%, 7–17–22 | | | 2,082 | | | | 2,228 | |
| | | | | | | | |
| | | | | | | 6,630 | |
| | | | | | | | |
| |
Total Consumer Staples – 5.0% | | | | 93,695 | |
Energy | | | | | | | | |
| |
Integrated Oil & Gas – 0.2% | |
Statoil ASA (GTD by Statoil Petroleum AS), | | | | | | | | |
1.950%, 11–8–18 | | | 3,500 | | | | 3,534 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Oil & Gas Equipment & Services – 0.9% | |
Enterprise Products Operating LLC (GTD by Enterprise Products Partners L.P.), | | | | | | | | |
6.500%, 1–31–19 | | $ | 8,250 | | | $ | 9,151 | |
Schlumberger Investment S.A. (GTD by Schlumberger Ltd.), | | | | | | | | |
1.250%, 8–1–17 (A) | | | 5,000 | | | | 5,000 | |
Schlumberger Norge A.S. (GTD by Schlumberger Ltd.), | | | | | | | | |
1.250%, 8–1–17 (A) | | | 2,435 | | | | 2,433 | |
| | | | | | | | |
| | | | | | | 16,584 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 2.0% | |
BP Capital Markets plc (GTD by BP plc), | | | | | | | | |
1.674%, 2–13–18 | | | 13,500 | | | | 13,552 | |
ConocoPhillips Co. (GTD by ConocoPhillips), | | | | | | | | |
3.350%, 11–15–24 | | | 4,000 | | | | 4,097 | |
EQT Corp., | | | | | | | | |
8.125%, 6–1–19 | | | 11,520 | | | | 13,167 | |
Exxon Mobil Corp., | | | | | | | | |
0.890%, 3–15–17 (B) | | | 6,245 | | | | 6,248 | |
| | | | | | | | |
| | | | | | | 37,064 | |
| | | | | | | | |
| |
Oil & Gas Refining & Marketing – 0.6% | |
PBF Holding Co. LLC, | | | | | | | | |
8.250%, 2–15–20 | | | 11,000 | | | | 11,346 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 1.4% | |
El Paso Corp., | | | | | | | | |
7.000%, 6–15–17 | | | 7,550 | | | | 7,813 | |
EnLink Midstream Partners L.P., | | | | | | | | |
4.850%, 7–15–26 | | | 4,000 | | | | 4,028 | |
Kinder Morgan Energy Partners L.P., | | | | | | | | |
5.950%, 2–15–18 | | | 7,000 | | | | 7,361 | |
Sunoco Logistics Partners Operations L.P. (GTD by Sunoco Logistics Partners L.P.), | | | | | | | | |
4.400%, 4–1–21 | | | 5,700 | | | | 6,115 | |
| | | | | | | | |
| | | | | | | 25,317 | |
| | | | | | | | |
| | |
Total Energy – 5.1% | | | | | | | 93,845 | |
Financials | | | | | | | | |
| |
Asset Management & Custody Banks – 0.9% | |
Ares Capital Corp., | | | | | | | | |
3.875%, 1–15–20 | | | 16,515 | | | | 17,082 | |
| | | | | | | | |
| |
Consumer Finance – 4.6% | |
American Express Co., | | | | | | | | |
7.000%, 3–19–18 | | | 10,000 | | | | 10,786 | |
American Honda Finance Corp.: | | | | | | | | |
1.500%, 9–11–17 (A) | | | 6,000 | | | | 6,019 | |
7.625%, 10–1–18 (A) | | | 5,000 | | | | 5,610 | |
Capital One Financial Corp., | | | | | | | | |
6.750%, 9–15–17 | | | 9,000 | | | | 9,427 | |
Discover Financial Services, | | | | | | | | |
3.950%, 11–6–24 | | | 12,875 | | | | 13,187 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 73 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Consumer Finance (Continued) | |
Ford Motor Credit Co. LLC, | | | | | | | | |
5.000%, 5–15–18 | | $ | 10,000 | | | $ | 10,496 | |
General Motors Financial Co., Inc. (GTD by AmeriCredit Financial Services, Inc.): | | | | | | | | |
2.400%, 5–9–19 | | | 5,115 | | | | 5,133 | |
3.500%, 7–10–19 | | | 4,500 | | | | 4,636 | |
4.200%, 3–1–21 | | | 6,500 | | | | 6,841 | |
Hyundai Capital America, | | | | | | | | |
2.875%, 8–9–18 (A) | | | 5,525 | | | | 5,639 | |
Total System Services, Inc., | | | | | | | | |
3.800%, 4–1–21 | | | 6,374 | | | | 6,764 | |
| | | | | | | | |
| | | | | | | 84,538 | |
| | | | | | | | |
| |
Diversified Banks – 7.8% | | | | | |
Ally Financial, Inc., | | | | | | | | |
5.500%, 2–15–17 | | | 9,265 | | | | 9,381 | |
Banco del Estado de Chile, | | | | | | | | |
1.117%, 3–13–17 (B) | | | 8,500 | | | | 8,502 | |
Bank of America Corp., | | | | | | | | |
2.625%, 4–19–21 | | | 8,500 | | | | 8,636 | |
Bank of Montreal, | | | | | | | | |
1.126%, 6–6–17 (B) | | | 8,500 | | | | 8,495 | |
Bank of New York Mellon Corp. (The), | | | | | | | | |
2.300%, 9–11–19 | | | 12,750 | | | | 13,044 | |
BB&T Corp., | | | | | | | | |
2.050%, 5–10–21 | | | 6,500 | | | | 6,568 | |
Branch Banking and Trust Co., | | | | | | | | |
1.450%, 5–10–19 | | | 10,875 | | | | 10,883 | |
Huntington Bancshares, Inc., | | | | | | | | |
3.150%, 3–14–21 | | | 6,500 | | | | 6,739 | |
Huntington National Bank, | | | | | | | | |
2.200%, 11–6–18 | | | 4,000 | | | | 4,050 | |
Mitsubishi UFJ Financial Group, Inc., | | | | | | | | |
2.190%, 9–13–21 | | | 11,500 | | | | 11,471 | |
Mizuho Financial Group, Inc., | | | | | | | | |
2.273%, 9–13–21 | | | 14,000 | | | | 13,955 | |
Sumitomo Mitsui Financial Group, Inc., | | | | | | | | |
2.058%, 7–14–21 | | | 4,250 | | | | 4,216 | |
U.S. Bancorp, | | | | | | | | |
3.100%, 4–27–26 | | | 4,000 | | | | 4,134 | |
Wachovia Corp., | | | | | | | | |
5.750%, 2–1–18 | | | 13,500 | | | | 14,263 | |
Wells Fargo & Co., | | | | | | | | |
3.000%, 2–19–25 | | | 9,000 | | | | 9,145 | |
Wells Fargo Bank N.A., | | | | | | | | |
1.040%, 2–15–17 (B) | | | 11,100 | | | | 11,103 | |
| | | | | | | | |
| | | | | | | 144,585 | |
| | | | | | | | |
| |
Investment Banking & Brokerage – 2.4% | |
Goldman Sachs Group, Inc. (The): | | | | | | | | |
2.375%, 1–22–18 | | | 4,000 | | | | 4,041 | |
2.750%, 9–15–20 | | | 3,200 | | | | 3,278 | |
2.350%, 11–15–21 | | | 6,700 | | | | 6,687 | |
4.000%, 3–3–24 | | | 4,552 | | | | 4,890 | |
Merrill Lynch & Co., Inc., | | | | | | | | |
6.400%, 8–28–17 | | | 11,000 | | | | 11,478 | |
Morgan Stanley: | | | | | | | | |
2.800%, 6–16–20 | | | 7,365 | | | | 7,556 | |
2.500%, 4–21–21 | | | 4,750 | | | | 4,796 | |
3.000%, 5–31–23 (B) | | | 1,700 | | | | 1,728 | |
| | | | | | | | |
| | | | | | | 44,454 | |
| | | | | | | | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Life & Health Insurance – 1.7% | |
Athene Global Funding, | | | | | | | | |
2.875%, 10–23–18 (A) | | $ | 15,450 | | | $ | 15,415 | |
New York Life Global Funding, | | | | | | | | |
1.550%, 11–2–18 (A) | | | 6,500 | | | | 6,533 | |
Principal Life Global Funding II, | | | | | | | | |
2.625%, 11–19–20 (A) | | | 9,500 | | | | 9,736 | |
| | | | | | | | |
| | | | | | | 31,684 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 4.6% | |
Citigroup, Inc.: | | | | | | | | |
1.300%, 11–15–16 | | | 5,215 | | | | 5,216 | |
2.650%, 10–26–20 | | | 9,000 | | | | 9,194 | |
2.700%, 3–30–21 | | | 5,893 | | | | 6,025 | |
Fidelity National Financial, Inc., | | | | | | | | |
6.600%, 5–15–17 | | | 12,215 | | | | 12,560 | |
Fidelity National Information Services, Inc., | | | | | | | | |
2.850%, 10–15–18 | | | 5,000 | | | | 5,131 | |
JPMorgan Chase & Co.: | | | | | | | | |
6.000%, 1–15–18 | | | 8,500 | | | | 8,981 | |
2.295%, 8–15–21 | | | 7,000 | | | | 7,016 | |
4.350%, 8–15–21 | | | 3,820 | | | | 4,195 | |
3.000%, 2–27–30 | | | 3,390 | | | | 3,385 | |
JPMorgan Chase Bank N.A., | | | | | | | | |
1.311%, 9–21–18 (B) | | | 8,500 | | | | 8,506 | |
USAA Capital Corp., | | | | | | | | |
2.450%, 8–1–20 (A) | | | 13,865 | | | | 14,261 | |
| | | | | | | | |
| | | | | | | 84,470 | |
| | | | | | | | |
| |
Property & Casualty Insurance – 1.9% | |
ACE INA Holdings, Inc. (GTD by ACE Ltd.), | | | | | | | | |
2.300%, 11–3–20 | | | 5,500 | | | | 5,643 | |
Berkshire Hathaway Finance Corp., | | | | | | | | |
1.700%, 3–15–19 | | | 4,550 | | | | 4,592 | |
Berkshire Hathaway, Inc.: | | | | | | | | |
1.900%, 1–31–17 | | | 4,000 | | | | 4,012 | |
2.100%, 8–14–19 | | | 7,375 | | | | 7,536 | |
2.750%, 3–15–23 | | | 13,260 | | | | 13,786 | |
| | | | | | | | |
| | | | | | | 35,569 | |
| | | | | | | | |
| |
Regional Banks – 0.8% | | | | | |
PNC Bank N.A., | | | | | | | | |
2.400%, 10–18–19 | | | 5,500 | | | | 5,630 | |
PNC Funding Corp. (GTD by PNC Financial Services Group, Inc.), | | | | | | | | |
6.700%, 6–10–19 | | | 8,500 | | | | 9,664 | |
| | | | | | | | |
| | | | | | | 15,294 | |
| | | | | | | | |
| |
Specialized Finance – 0.8% | | | | | |
ADOP Co., | | | | | | | | |
6.625%, 10–1–17 (A) | | | 4,000 | | | | 4,160 | |
Diamond 1 Finance Corp. and Diamond 2 Finance Corp., | | | | | | | | |
3.480%, 6–1–19 (A) | | | 10,625 | | | | 10,926 | |
| | | | | | | | |
| | | | | | | 15,086 | |
| | | | | | | | |
| | |
Total Financials – 25.5% | | | | | | | 472,762 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Health Care | | | | | | | | |
| |
Biotechnology – 0.4% | | | | | |
Amgen, Inc.: | | | | | | | | |
2.125%, 5–15–17 | | $ | 5,500 | | | $ | 5,532 | |
1.250%, 5–22–17 | | | 1,950 | | | | 1,951 | |
| | | | | | | | |
| | | | | | | 7,483 | |
| | | | | | | | |
| |
Health Care Supplies – 1.5% | | | | | |
Catholic Health Initiatives, | | | | | | | | |
2.600%, 8–1–18 | | | 11,871 | | | | 12,098 | |
Medtronic, Inc., | | | | | | | | |
3.500%, 3–15–25 | | | 12,350 | | | | 13,307 | |
Stryker Corp., | | | | | | | | |
2.625%, 3–15–21 | | | 3,025 | | | | 3,118 | |
| | | | | | | | |
| | | | | | | 28,523 | |
| | | | | | | | |
| |
Pharmaceuticals – 0.8% | | | | | |
AbbVie, Inc., | | | | | | | | |
2.500%, 5–14–20 | | | 5,000 | | | | 5,104 | |
Merck & Co., Inc., | | | | | | | | |
1.100%, 1–31–18 | | | 4,925 | | | | 4,930 | |
Mylan, Inc., | | | | | | | | |
1.350%, 11–29–16 | | | 4,291 | | | | 4,293 | |
| | | | | | | | |
| | | | | | | 14,327 | |
| | | | | | | | |
| | |
Total Health Care – 2.7% | | | | | | | 50,333 | |
Industrials | | | | | | | | |
| |
Aerospace & Defense – 2.4% | | | | | |
BAE Systems Holdings, Inc.: | | | | | | | | |
6.375%, 6–1–19 (A) | | | 6,393 | | | | 7,126 | |
3.850%, 12–15–25 (A) | | | 5,500 | | | | 5,852 | |
BAE Systems plc, | | | | | | | | |
4.750%, 10–11–21 (A) | | | 4,300 | | | | 4,782 | |
Exelis, Inc.: | | | | | | | | |
4.250%, 10–1–16 | | | 12,406 | | | | 12,406 | |
5.550%, 10–1–21 | | | 2,566 | | | | 2,924 | |
General Dynamics Corp., | | | | | | | | |
1.875%, 8–15–23 | | | 2,950 | | | | 2,927 | |
TransDigm Group, Inc., | | | | | | | | |
7.500%, 7–15–21 | | | 7,967 | | | | 8,445 | |
| | | | | | | | |
| | | | | | | 44,462 | |
| | | | | | | | |
| |
Airlines – 0.6% | | | | | |
Southwest Airlines Co.: | | | | | | | | |
5.125%, 3–1–17 | | | 5,000 | | | | 5,078 | |
2.650%, 11–5–20 | | | 6,000 | | | | 6,165 | |
| | | | | | | | |
| | | | | | | 11,243 | |
| | | | | | | | |
| |
Environmental & Facilities Services – 1.7% | |
Republic Services, Inc., | | | | | | | | |
3.800%, 5–15–18 | | | 14,690 | | | | 15,260 | |
Waste Management, Inc. (GTD by Waste Management Holdings, Inc.): | | | | | | | | |
6.100%, 3–15–18 | | | 10,000 | | | | 10,695 | |
4.750%, 6–30–20 | | | 1,675 | | | | 1,862 | |
7.100%, 8–1–26 | | | 2,450 | | | | 3,315 | |
| | | | | | | | |
| | | | | | | 31,132 | |
| | | | | | | | |
| | | | | | |
| 74 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Industrial Conglomerates – 0.9% | | | | | |
General Electric Capital Corp., | | | | | | | | |
5.012%, 1–1–24 | | $ | 14,657 | | | $ | 16,344 | |
| | | | | | | | |
| | |
Total Industrials – 5.6% | | | | | | | 103,181 | |
Information Technology | | | | | | | | |
| |
Application Software – 0.8% | | | | | |
Michael Baker International LLC, | | | | | | | | |
8.250%, 10–15–18 (A) | | | 6,792 | | | | 6,809 | |
NVIDIA Corp., | | | | | | | | |
2.200%, 9–16–21 | | | 8,500 | | | | 8,526 | |
| | | | | | | | |
| | | | | | | 15,335 | |
| | | | | | | | |
| |
Communications Equipment – 0.6% | | | | | |
Cisco Systems, Inc.: | | | | | | | | |
2.200%, 2–28–21 | | | 4,050 | | | | 4,144 | |
2.600%, 2–28–23 | | | 5,920 | | | | 6,109 | |
Harris Corp., | | | | | | | | |
2.700%, 4–27–20 | | | 1,094 | | | | 1,115 | |
| | | | | | | | |
| | | | | | | 11,368 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 1.7% | |
Alliance Data Systems Corp.: | | | | | | | | |
5.250%, 12–1–17 (A) | | | 6,600 | | | | 6,732 | |
6.375%, 4–1–20 (A) | | | 6,000 | | | | 6,112 | |
Visa, Inc., | | | | | | | | |
2.800%, 12–14–22 | | | 18,500 | | | | 19,396 | |
| | | | | | | | |
| | | | | | | 32,240 | |
| | | | | | | | |
| |
Home Entertainment Software – 0.2% | | | | | |
Activision Blizzard, Inc., | | | | | | | | |
2.300%, 9–15–21 (A) | | | 4,000 | | | | 4,010 | |
| | | | | | | | |
| |
Semiconductor Equipment – 0.5% | | | | | |
Lam Research Corp., | | | | | | | | |
2.800%, 6–15–21 | | | 8,500 | | | | 8,725 | |
| | | | | | | | |
| |
Semiconductors – 0.7% | | | | | |
Intel Corp., | | | | | | | | |
2.450%, 7–29–20 | | | 4,000 | | | | 4,139 | |
Samsung Electronics America, Inc. (GTD by Samsung Electronics Co. Ltd.), | | | | | | | | |
1.750%, 4–10–17 (A) | | | 8,500 | | | | 8,520 | |
| | | | | | | | |
| | | | | | | 12,659 | |
| | | | | | | | |
| |
Systems Software – 1.2% | | | | | |
CA, Inc., | | | | | | | | |
5.375%, 12–1–19 | | | 8,297 | | | | 9,162 | |
Microsoft Corp.: | | | | | | | | |
2.000%, 11–3–20 | | | 8,000 | | | | 8,172 | |
2.000%, 8–8–23 | | | 4,000 | | | | 3,996 | |
| | | | | | | | |
| | | | | | | 21,330 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 0.7% | |
Apple, Inc., | | | | | | | | |
1.550%, 2–7–20 | | | 13,175 | | | | 13,293 | |
| | | | | | | | |
| |
Total Information Technology – 6.4% | | | | 118,960 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Materials | | | | | | | | |
| |
Diversified Chemicals – 0.4% | | | | | |
Dow Chemical Co. (The), | | | | | | | | |
4.250%, 11–15–20 | | $ | 7,049 | | | $ | 7,646 | |
| | | | | | | | |
| |
Specialty Chemicals – 0.7% | | | | | |
Methanex Corp., | | | | | | | | |
3.250%, 12–15–19 | | | 13,132 | | | | 12,983 | |
| | | | | | | | |
| | |
Total Materials – 1.1% | | | | | | | 20,629 | |
Real Estate | | | | | | | | |
| |
Specialized REITs – 0.5% | | | | | |
Crown Castle International Corp.: | | | | | | | | |
2.250%, 9–1–21 | | | 3,000 | | | | 2,998 | |
4.875%, 4–15–22 | | | 3,099 | | | | 3,457 | |
5.250%, 1–15–23 | | | 2,745 | | | | 3,108 | |
| | | | | | | | |
| | | | | | | 9,563 | |
| | | | | | | | |
| | |
Total Real Estate – 0.5% | | | | | | | 9,563 | |
Telecommunication Services | | | | | | | | |
| |
Integrated Telecommunication Services – 0.8% | |
AT&T, Inc.: | | | | | | | | |
5.875%, 10–1–19 | | | 3,900 | | | | 4,363 | |
5.200%, 3–15–20 | | | 3,000 | | | | 3,324 | |
3.600%, 2–17–23 | | | 6,915 | | | | 7,291 | |
| | | | | | | | |
| | | | | | | 14,978 | |
| | | | | | | | |
| |
Wireless Telecommunication Service – 2.1% | |
American Tower Corp.: | | | | | | | | |
3.300%, 2–15–21 | | | 2,500 | | | | 2,614 | |
5.900%, 11–1–21 | | | 12,200 | | | | 14,231 | |
2.250%, 1–15–22 | | | 12,500 | | | | 12,475 | |
3.375%, 10–15–26 | | | 5,350 | | | | 5,426 | |
Crown Castle Towers LLC, | | | | | | | | |
3.222%, 5–15–22 (A) | | | 4,830 | | | | 4,980 | |
| | | | | | | | |
| | | | | | | 39,726 | |
| | | | | | | | |
| |
Total Telecommunication
Services – 2.9% | | | | 54,704 | |
Utilities | | | | | | | | |
| |
Electric Utilities – 1.1% | | | | | |
Emera U.S. Finance L.P. (GTD by Emera U.S. Holdings, Inc.), | | | | | | | | |
2.150%, 6–15–19 (A) | | | 4,000 | | | | 4,043 | |
Entergy Mississippi, Inc., | | | | | | | | |
2.850%, 6–1–28 | | | 5,875 | | | | 6,011 | |
Entergy Texas, Inc., | | | | | | | | |
2.550%, 6–1–21 | | | 7,225 | | | | 7,431 | |
National Rural Utilities Cooperative Finance Corp., | | | | | | | | |
1.650%, 2–8–19 | | | 3,600 | | | | 3,628 | |
| | | | | | | | |
| | | | | | | 21,113 | |
| | | | | | | | |
| |
Multi-Utilities – 1.0% | | | | | |
Dominion Resources, Inc., | | | | | | | | |
6.400%, 6–15–18 | | | 11,118 | | | | 11,989 | |
| | | | | | | | |
CORPORATE DEBT SECURITIES
(Continued) | | Principal | | | Value | |
Multi-Utilities (Continued) | | | | | |
Dominion Resources, Inc., Series A, | | | | | | | | |
1.400%, 9–15–17 | | $ | 5,850 | | | $ | 5,848 | |
| | | | | | | | |
| | | | | | | 17,837 | |
| | | | | | | | |
| | |
Total Utilities – 2.1% | | | | | | | 38,950 | |
| |
TOTAL CORPORATE DEBT SECURITIES – 62.4% | | | $ | 1,157,918 | |
(Cost: $1,138,090) | | | | | | | | |
| | |
| MORTGAGE-BACKED SECURITIES | | | | | | |
Non-Agency REMIC/CMO – 0.3% | | | | | |
Bear Stearns Deutsche Bank Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-AFR1, Class C, | | | | | | | | |
5.097%, 9–15–27 (A) | | | 2,500 | | | | 2,748 | |
CFCRE Commercial Mortgage Trust, Series 2015-RUM, Class B, | | | | | | | | |
2.658%, 7–15–30 (A)(B) | | | 3,942 | | | | 3,861 | |
| | | | | | | | |
| | | | | | | 6,609 | |
| | | | | | | | |
| |
TOTAL MORTGAGE-BACKED SECURITIES – 0.3% | | | $ | 6,609 | |
(Cost: $6,672) | | | | | | | | |
| | |
| MUNICIPAL BONDS – TAXABLE | | | | | | |
California – 1.5% | | | | | |
Alameda Corridor Trans Auth, Taxable Sr Lien Rev Bonds, Ser 1999C, | | | | | | | | |
6.500%, 10–1–19 | | | 7,170 | | | | 7,775 | |
CA Various Purp GO Bonds, | | | | | | | | |
7.700%, 11–1–30 | | | 10,050 | | | | 12,371 | |
The Regents of the Univ of CA, Gen Rev Bonds, Ser 2013AH, | | | | | | | | |
1.796%, 7–1–19 | | | 7,615 | | | | 7,719 | |
| | | | | | | | |
| | | | | | | 27,865 | |
| | | | | | | | |
| |
New York – 0.5% | | | | | |
NYC GO Bonds, Fiscal 2017 Ser A-2, | | | | | | | | |
2.460%, 8–1–26 | | | 9,920 | | | | 9,943 | |
| | | | | | | | |
| |
TOTAL MUNICIPAL BONDS – TAXABLE – 2.0% | | | $ | 37,808 | |
(Cost: $37,777) | | | | | | | | |
| | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS | | | | | | |
Agency Obligations – 3.0% | | | | | |
Federal Home Loan Bank: | | | | | | | | |
4.780%, 1–25–17 | | | 761 | | | | 761 | |
1.900%, 4–12–23 | | | 12,270 | | | | 12,328 | |
2.750%, 3–2–26 | �� | | 10,000 | | | | 10,005 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 75 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Agency Obligations (Continued) | | | | | |
2.500%, 4–27–26 | | $ | 13,735 | | | $ | 13,774 | |
1.700%, 7–25–31 | | | 18,500 | | | | 18,386 | |
| | | | | | | | |
| | | | | | | 55,254 | |
| | | | | | | | |
| |
Mortgage-Backed Obligations – 19.9% | | | | | |
Federal Home Loan Mortgage Corp. Agency REMIC/CMO: | | | | | | | | |
2.822%, 6–25–21 (A)(B) | | | 9,509 | | | | 9,566 | |
3.669%, 2–25–22 (A)(B) | | | 4,000 | | | | 3,937 | |
4.000%, 6–15–26 | | | 11,994 | | | | 12,897 | |
2.125%, 8–28–31 | | | 4,125 | | | | 4,125 | |
5.000%, 12–15–34 | | | 479 | | | | 534 | |
5.045%, 7–25–44 (A)(B) | | | 5,870 | | | | 6,134 | |
5.116%, 8–25–44 (A)(B) | | | 6,990 | | | | 7,723 | |
4.302%, 9–25–44 (A)(B) | | | 8,200 | | | | 8,530 | |
4.490%, 12–25–44 (A)(B) | | | 17,000 | | | | 18,548 | |
3.883%, 2–25–45 (A)(B) | | | 8,500 | | | | 8,760 | |
4.492%, 1–25–46 (A)(B) | | | 5,958 | | | | 6,433 | |
4.752%, 11–25–46 (A)(B) | | | 8,000 | | | | 8,817 | |
5.341%, 2–25–47 (A)(B) | | | 5,120 | | | | 5,728 | |
4.436%, 7–25–48 (A)(B) | | | 5,200 | | | | 5,236 | |
4.572%, 12–25–48 (A)(B) | | | 18,196 | | | | 19,595 | |
Federal Home Loan Mortgage Corp. Fixed Rate Participation Certificates: | | | | | | | | |
5.500%, 4–1–20 | | | 371 | | | | 390 | |
3.000%, 8–1–28 | | | 10,600 | | | | 11,150 | |
3.000%, 9–1–28 | | | 10,535 | | | | 11,125 | |
3.500%, 1–1–29 | | | 1,954 | | | | 2,066 | |
3.000%, 1–1–33 | | | 6,972 | | | | 7,395 | |
3.000%, 1–15–42 | | | 3,789 | | | | 3,923 | |
3.000%, 5–15–44 | | | 3,439 | | | | 3,599 | |
Federal National Mortgage Association Agency REMIC/CMO: | | | | | | | | |
5.500%, 12–25–17 | | | 430 | | | | 437 | |
3.510%, 4–25–29 | | | 11,750 | | | | 11,903 | |
2.375%, 2–24–31 | | | 8,500 | | | | 8,506 | |
2.000%, 4–25–39 | | | 8,338 | | | | 8,361 | |
2.000%, 6–25–39 | | | 21,581 | | | | 21,849 | |
2.000%, 4–25–40 | | | 5,997 | | | | 6,042 | |
2.500%, 11–25–45 | | | 16,178 | | | | 16,566 | |
Federal National Mortgage Association Fixed Rate Pass-Through Certificates: | | | | | | | | |
5.500%, 9–1–17 | | | 325 | | | | 327 | |
0.875%, 10–26–17 | | | 15,000 | | | | 15,024 | |
4.514%, 12–1–19 | | | 10,218 | | | | 11,024 | |
4.643%, 7–1–20 | | | 9,699 | | | | 10,527 | |
4.380%, 6–1–21 | | | 14,105 | | | | 15,679 | |
5.500%, 10–1–21 | | | 1,490 | | | | 1,576 | |
5.450%, 10–18–21 | | | 8,028 | | | | 8,042 | |
5.500%, 2–1–22 | | | 769 | | | | 814 | |
6.000%, 7–1–22 | | | 612 | | | | 664 | |
3.500%, 8–1–26 | | | 5,162 | | | | 5,475 | |
| | | | | | | | |
UNITED STATES GOVERNMENT
AGENCY OBLIGATIONS (Continued) | | Principal | | | Value | |
Mortgage-Backed Obligations (Continued) | |
2.000%, 10–25–41 | | $ | 15,452 | | | $ | 15,566 | |
2.000%, 12–25–42 | | | 2,429 | | | | 2,474 | |
2.500%, 7–25–45 | | | 3,339 | | | | 3,427 | |
2.500%, 9–25–45 | | | 5,296 | | | | 5,443 | |
2.500%, 12–25–45 | | | 15,752 | | | | 16,126 | |
Government National Mortgage Association Agency REMIC/CMO, | | | | | | | | |
2.000%, 3–16–42 | | | 8,256 | | | | 8,240 | |
Government National Mortgage Association Fixed Rate Pass-Through Certificates, | | | | | | | | |
3.500%, 4–20–34 | | | 8,770 | | | | 9,153 | |
| | | | | | | | |
| | | | | | | 369,456 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT AGENCY OBLIGATIONS – 22.9% | | | $ | 424,710 | |
(Cost: $421,096) | | | | | | | | |
| |
| UNITED STATES GOVERNMENT OBLIGATIONS | |
Treasury Obligations – 6.3% | | | | | |
U.S. Treasury Notes: | | | | | | | | |
0.625%, 9–30–17 | | | 50,000 | | | | 49,977 | |
2.750%, 2–28–18 | | | 35,000 | | | | 35,990 | |
1.375%, 8–31–20 | | | 20,000 | | | | 20,245 | |
2.000%, 8–15–25 | | | 10,000 | | | | 10,355 | |
| | | | | | | | |
| | | | | | | 116,567 | |
| | | | | | | | |
| |
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS – 6.3% | | | $ | 116,567 | |
(Cost: $115,616) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (C) – 3.4% | | | | | |
Becton Dickinson & Co., | | | | | | | | |
0.840%, 11–15–16 | | | 3,971 | | | | 3,967 | |
BorgWarner, Inc., | | | | | | | | |
0.700%, 10–6–16 | | | 10,000 | | | | 9,999 | |
Campbell Soup Co., | | | | | | | | |
0.590%, 10–3–16 | | | 7,500 | | | | 7,499 | |
DTE Energy Co. (GTD by Detroit Edison Co.), | | | | | | | | |
0.610%, 10–6–16 | | | 7,000 | | | | 6,999 | |
Ecolab, Inc., | | | | | | | | |
0.700%, 10–6–16 | | | 5,000 | | | | 4,999 | |
Harley-Davidson Financial Services (GTD by Harley-Davidson Credit Corp.), | | | | | | | | |
0.790%, 10–19–16 | | | 5,000 | | | | 4,998 | |
NBCUniversal Enterprise, Inc.: | | | | | | | | |
0.770%, 10–12–16 | | | 5,000 | | | | 4,999 | |
0.830%, 11–9–16 | | | 5,000 | | | | 4,995 | |
| | | | | | | | |
SHORT–TERM SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Paper (C) (Continued) | | | | | |
Northern Illinois Gas Co.: | | | | | | | | |
0.420%, 10–3–16 | | $ | 6,191 | | | $ | 6,191 | |
0.760%, 10–11–16 | | | 5,000 | | | | 4,999 | |
River Fuel Trust #1 (GTD by Bank of Nova Scotia), | | | | | | | | |
0.580%, 10–31–16 | | | 2,500 | | | | 2,499 | |
| | | | | | | | |
| | | | | | | 62,144 | |
| | | | | | | | |
| |
Master Note – 0.1% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (D) | | | 2,388 | | | | 2,388 | |
| | | | | | | | |
| |
Municipal Obligations – 0.8% | | | | | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.800%, 10–7–16 (D) | | | 5,000 | | | | 5,000 | |
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.770%, 10–7–16 | | | 6,000 | | | | 6,000 | |
Santa Clara Cnty Fin Auth, Var Rate Rev Bonds, El Camino Hosp, Ser 2009A (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.810%, 10–7–16 (D) | | | 4,251 | | | | 4,251 | |
| | | | | | | | |
| | | | | | | 15,251 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 4.3% | | | $ | 79,783 | |
(Cost: $79,785) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 99.2% | | | $ | 1,842,173 | |
(Cost: $1,817,584) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8% | | | | 14,455 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 1,856,628 | |
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, 2016 the total value of these securities amounted to $314,771 or 17.0% of net assets. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| | | | | | |
| 76 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY LIMITED-TERM BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. See Note 3 to the Financial Statements for further information regarding fair value measurement.
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
| | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Investments in Securities | | | | | | | | | | | | |
Asset-Backed Securities | | $ | — | | | $ | 18,778 | | | $ | — | |
Corporate Debt Securities | | | — | | | | 1,157,918 | | | | — | |
Mortgage-Backed Securities | | | — | | | | 6,609 | | | | — | |
Municipal Bonds | | | — | | | | 37,808 | | | | — | |
United States Government Agency Obligations | | | — | | | | 424,710 | | | | — | |
United States Government Obligations | | | — | | | | 116,567 | | | | — | |
Short-Term Securities | | | — | | | | 79,783 | | | | — | |
Total | | $ | — | | | $ | 1,842,173 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
CMO = Collateralized Mortgage Obligation
GTD = Guaranteed
REMIC = Real Estate Mortgage Investment Conduit
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 77 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Ivy Managed International Opportunities Fund
| | | | |
Ivy International Core Equity Fund, Class I | | | 29.9 | % |
Ivy Global Growth Fund, Class I | | | 25.0 | % |
Ivy European Opportunities Fund, Class I | | | 20.0 | % |
Ivy Global Income Allocation Fund, Class I | | | 15.0 | % |
Ivy Emerging Markets Equity Fund, Class I | | | 10.0 | % |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.1 | % |
The percentages of investments in the underlying funds may not currently be within the target allocation ranges disclosed in the Fund’s prospectus due to market movements; these percentages are expected to change over time, and deviation from the target allocation ranges due to market movements is permitted by the prospectus.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 78 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MANAGED INTERNATIONAL OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| AFFILIATED MUTUAL FUNDS | | Shares | | | Value | |
Ivy Emerging Markets Equity Fund, Class I | | | 1,204 | | | $ | 19,380 | |
Ivy European Opportunities Fund, Class I | | | 1,410 | | | | 38,761 | |
Ivy Global Growth Fund, Class I | | | 1,178 | | | | 48,451 | |
Ivy Global Income Allocation Fund, Class I | | | 2,001 | | | | 29,070 | |
Ivy International Core Equity Fund, Class I | | | 3,416 | | | | 58,141 | |
| | | | | | | | |
| |
TOTAL AFFILIATED MUTUAL
FUNDS – 99.9% | | | $ | 193,803 | |
(Cost: $159,492) | | | | | | | | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Master Note – 0.2% | | | | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (A) | | $ | 301 | | | $ | 301 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 0.2% | | | $ | 301 | |
(Cost: $301) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.1% | | | $ | 194,104 | |
(Cost: $159,793) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)% | | | | (186 | ) |
| |
NET ASSETS – 100.0% | | | $ | 193,918 | |
Notes to Schedule of Investments
| (A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following table is a summary of the valuation of the Fund investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 193,803 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 301 | | | | — | |
Total | | $ | 193,803 | | | $ | 301 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 79 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MICRO CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 93.1% | |
Information Technology | | | 29.3% | |
Health Care | | | 23.6% | |
Consumer Discretionary | | | 15.0% | |
Telecommunication Services | | | 6.7% | |
Industrials | | | 6.2% | |
Materials | | | 3.3% | |
Energy | | | 3.3% | |
Financials | | | 2.5% | |
Consumer Staples | | | 1.8% | |
Real Estate | | | 1.4% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 6.9% | |
Lipper Rankings
| | | | |
Category: Lipper Small-Cap
Growth Funds | | Rank | | Percentile |
1 Year | | 178/563 | | 32 |
3 Year | | 346/502 | | 69 |
5 Year | | 160/446 | | 36 |
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 |
8x8, Inc. | | Telecommunication Services | | Integrated Telecommunication Services |
SPS Commerce, Inc. | | Information Technology | | Internet Software & Services |
Nautilus Group, Inc. (The) | | Consumer Discretionary | | Leisure Products |
Tile Shop Holdings, Inc. | | Consumer Discretionary | | Home Improvement Retail |
Aerie Pharmaceuticals, Inc. | | Health Care | | Pharmaceuticals |
LogMeIn, Inc. | | Information Technology | | Internet Software & Services |
Flotek Industries, Inc. | | Materials | | Specialty Chemicals |
Cornerstone OnDemand, Inc. | | Information Technology | | Internet Software & Services |
MYR Group, Inc. | | Industrials | | Construction & Engineering |
Zix Corp. | | Information Technology | | Application Software |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 80 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MICRO CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | | | | | | | | |
| |
Auto Parts & Equipment – 2.3% | |
Motorcar Parts of America, Inc. (A) | | | 136 | | | $ | 3,900 | |
| | | | | | | | |
| |
Broadcasting – 1.5% | |
Entravision Communications Corp. | | | 337 | | | | 2,572 | |
| | | | | | | | |
| |
Home Improvement Retail – 3.3% | |
Tile Shop Holdings, Inc. (A) | | | 347 | | | | 5,736 | |
| | | | | | | | |
| |
Leisure Products – 3.4% | |
Nautilus Group, Inc. (The) (A) | | | 254 | | | | 5,780 | |
| | | | | | | | |
| |
Restaurants – 1.7% | |
Kona Grill, Inc. (A) | | | 235 | | | | 2,955 | |
| | | | | | | | |
| |
Specialty Stores – 2.8% | |
DAVIDsTEA, Inc. (A) | | | 77 | | | | 949 | |
Sportsman’s Warehouse Holdings, Inc. (A) | | | 368 | | | | 3,873 | |
| | | | | | | | |
| | | | | | | 4,822 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 15.0% | | | | 25,765 | |
Consumer Staples | | | | | | | | |
| |
Distillers & Vintners – 0.1% | |
MGP Ingredients, Inc. | | | 5 | | | | 221 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 1.7% | |
Inventure Foods, Inc. (A) | | | 307 | | | | 2,886 | |
| | | | | | | | |
| |
Total Consumer Staples – 1.8% | | | | 3,107 | |
Energy | | | | | | | | |
| |
Oil & Gas Equipment & Services – 1.4% | |
Natural Gas Services Group, Inc. (A) | | | 97 | | | | 2,384 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 1.9% | |
Clayton Williams Energy, Inc. (A) | | | 2 | | | | 171 | |
Earthstone Energy, Inc. (A) | | | 92 | | | | 790 | |
Resolute Energy Corp. (A) | | | 29 | | | | 764 | |
Rice Energy, Inc. (A) | | | 148 | | | | 1,625 | |
| | | | | | | | |
| | | | | | | 3,350 | |
| | | | | | | | |
| | |
Total Energy – 3.3% | | | | | | | 5,734 | |
Financials | | | | | | | | |
| |
Mortgage REITs – 2.5% | |
American Capital Mortgage Investment Corp. | | | 51 | | | | 868 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | | | 147 | | | | 3,433 | |
| | | | | | | | |
| | | | | | | 4,301 | |
| | | | | | | | |
| |
Total Financials – 2.5% | | | | 4,301 | |
Health Care | | | | | | | | |
| |
Biotechnology – 1.0% | |
Natera, Inc. (A) | | | 150 | | | | 1,672 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Health Care Equipment – 6.9% | |
AxoGen, Inc. (A) | | | 145 | | | $ | 1,307 | |
Entellus Medical, Inc. (A) | | | 46 | | | | 1,026 | |
K2M Group Holdings, Inc. (A) | | | 229 | | | | 4,070 | |
Oxford Immunotec Global plc (A) | | | 188 | | | | 2,363 | |
Tactile Systems Technology, Inc. (A) | | | 166 | | | | 3,099 | |
| | | | | | | | |
| | | | | | | 11,865 | |
| | | | | | | | |
| |
Health Care Supplies – 4.8% | |
Endologix, Inc. (A) | | | 325 | | | | 4,161 | |
ICU Medical, Inc. (A) | | | 32 | | | | 3,994 | |
| | | | | | | | |
| | | | | | | 8,155 | |
| | | | | | | | |
| |
Health Care Technology – 4.5% | |
Evolent Health, Inc.,
Class A (A) | | | 155 | | | | 3,818 | |
Omnicell, Inc. (A) | | | 104 | | | | 3,985 | |
| | | | | | | | |
| | | | | | | 7,803 | |
| | | | | | | | |
| |
Pharmaceuticals – 6.4% | |
Aerie Pharmaceuticals, Inc. (A) | | | 140 | | | | 5,295 | |
Intersect ENT, Inc. (A) | | | 115 | | | | 1,820 | |
Intra-Cellular Therapies, Inc. (A) | | | 69 | | | | 1,058 | |
Novan, Inc. (A) | | | 108 | | | | 2,169 | |
Revance Therapeutics, Inc. (A) | | | 44 | | | | 716 | |
| | | | | | | | |
| | | | | | | 11,058 | |
| | | | | | | | |
| |
Total Health Care – 23.6% | | | | 40,553 | |
Industrials | | | | | | | | |
| |
Building Products – 2.9% | |
American Woodmark Corp. (A) | | | 28 | | | | 2,280 | |
PGT, Inc. (A) | | | 253 | | | | 2,704 | |
| | | | | | | | |
| | | | | | | 4,984 | |
| | | | | | | | |
| |
Construction & Engineering – 2.8% | |
MYR Group, Inc. (A) | | | 156 | | | | 4,705 | |
| | | | | | | | |
| |
Trucking – 0.5% | |
YRC Worldwide, Inc. (A) | | | 73 | | | | 904 | |
| | | | | | | | |
| |
Total Industrials – 6.2% | | | | 10,593 | |
Information Technology | | | | | | | | |
| |
Application Software – 2.5% | |
Zix Corp. (A) | | | 1,049 | | | | 4,300 | |
| | | | | | | | |
| |
Communications Equipment – 1.8% | |
Oclaro, Inc. (A) | | | 363 | | | | 3,107 | |
| | | | | | | | |
| |
Electronic Manufacturing Services – 1.7% | |
Mercury Computer Systems, Inc. (A) | | | 120 | | | | 2,956 | |
| | | | | | | | |
| |
Internet Software & Services – 17.8% | |
2U, Inc. (A) | | | 47 | | | | 1,792 | |
comScore, Inc. (A) | | | 117 | | | | 3,596 | |
Cornerstone OnDemand, Inc. (A) | | | 111 | | | | 5,082 | |
LogMeIn, Inc. | | | 57 | | | | 5,186 | |
Mimecast Ltd. (A) | | | 219 | | | | 4,190 | |
Q2 Holdings, Inc. (A) | | | 147 | | | | 4,219 | |
SPS Commerce, Inc. (A) | | | 88 | | | | 6,481 | |
| | | | | | | | |
| | | | | | | 30,546 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Semiconductor Equipment – 2.5% | |
PDF Solutions, Inc. (A) | | | 236 | | | $ | 4,288 | |
| | | | | | | | |
| |
Semiconductors – 2.2% | |
NVE Corp. | | | 63 | | | | 3,725 | |
| | | | | | | | |
| |
Systems Software – 0.8% | |
SecureWorks Corp.,
Class A (A) | | | 114 | | | | 1,421 | |
| | | | | | | | |
| |
Total Information
Technology – 29.3% | | | | 50,343 | |
Materials | | | | | | | | |
| |
Specialty Chemicals – 3.3% | |
Flotek Industries,
Inc. (A)(B) | | | 27 | | | | 393 | |
Flotek Industries, Inc. (A) | | | 356 | | | | 5,172 | |
| | | | | | | | |
| | | | | | | 5,565 | |
| | | | | | | | |
| |
Total Materials – 3.3% | | | | 5,565 | |
Real Estate | | | | | | | | |
| |
Health Care REITs – 1.4% | |
Community Healthcare Trust, Inc. | | | 112 | | | | 2,449 | |
| | | | | | | | |
| |
Total Real Estate – 1.4% | | | | 2,449 | |
Telecommunication Services | | | | | | | | |
| |
Integrated Telecommunication Services – 6.5% | |
8x8, Inc. (A) | | | 459 | | | | 7,089 | |
GTT Communications, Inc. (A) | | | 170 | | | | 4,005 | |
| | | | | | | | |
| | | | | | | 11,094 | |
| | | | | | | | |
| |
Wireless Telecommunication Service – 0.2% | |
RingCentral, Inc.,
Class A (A) | | | 15 | | | | 357 | |
| | | | | | | | |
| |
Total Telecommunication
Services – 6.7% | | | | 11,451 | |
| |
TOTAL COMMON STOCKS – 93.1% | | | $ | 159,861 | |
(Cost: $125,801) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (C) – 5.6% | |
Kroger Co. (The), | | | | | | | | |
0.630%, 10–3–16 | | $ | 5,000 | | | | 4,999 | |
Northern Illinois Gas Co., | | | | | | | | |
0.420%, 10–3–16 | | | 4,656 | | | | 4,656 | |
| | | | | | | | |
| | | | | | | 9,655 | |
| | | | | | | | |
| |
Master Note – 2.2% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (D) | | | 3,738 | | | | 3,738 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 7.8% | | | $ | 13,393 | |
(Cost: $13,394) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 100.9% | | | $ | 173,254 | |
(Cost: $139,195) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.9)% | | | | (1,560 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 171,694 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 81 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MICRO CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016 the total value of these securities amounted to $393 or 0.2% of net assets. |
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 159,861 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 13,393 | | | | — | |
Total | | $ | 159,861 | | | $ | 13,393 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | |
| 82 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MID CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 99.0% | |
Information Technology | | | 23.4% | |
Consumer Discretionary | | | 19.9% | |
Health Care | | | 18.1% | |
Industrials | | | 15.6% | |
Financials | | | 9.2% | |
Consumer Staples | | | 6.7% | |
Energy | | | 4.8% | |
Materials | | | 1.3% | |
Purchased Options | | | 0.2% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 0.8% | |
Lipper Rankings
| | | | | | |
Category: Lipper Mid-Cap Growth
Funds | | Rank | | Percentile | |
1 Year | | 159/400 | | | 40 | |
3 Year | | 274/363 | | | 76 | |
5 Year | | 249/319 | | | 78 | |
10 Year | | 69/229 | | | 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.
Top 10 Equity Holdings
| | | | |
| Company | | Sector | | Industry |
Intuitive Surgical, Inc. | | Health Care | | Health Care Equipment |
Zoetis, Inc. | | Health Care | | Pharmaceuticals |
Fastenal Co. | | Industrials | | Trading Companies & Distributors |
Microchip Technology, Inc. | | Information Technology | | Semiconductors |
CoStar Group, Inc. | | Industrials | | Research & Consulting Services |
Electronic Arts, Inc. | | Information Technology | | Home Entertainment Software |
Northern Trust Corp. | | Financials | | Asset Management & Custody Banks |
CME Group, Inc. | | Financials | | Financial Exchanges & Data |
Mead Johnson Nutrition Co. | | Consumer Staples | | Packaged Foods & Meats |
Pandora Media, Inc. | | Information Technology | | Internet Software & Services |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 83 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MID CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Apparel Retail – 1.1% | |
DSW, Inc., Class A | | | 1,416 | | | $ | 29,004 | |
| | | | | | | | |
| |
Apparel, Accessories & Luxury Goods – 3.5% | |
Burberry Group plc (A) | | | 1,913 | | | | 34,201 | |
Kate Spade & Co. (B) | | | 1,605 | | | | 27,490 | |
lululemon athletica, Inc. (B) | | | 506 | | | | 30,854 | |
| | | | | | | | |
| | | | | | | 92,545 | |
| | | | | | | | |
| | |
Auto Parts & Equipment – 1.6% | | | | | | | | |
BorgWarner, Inc. | | | 1,200 | | | | 42,233 | |
| | | | | | | | |
| | |
Homebuilding – 1.6% | | | | | | | | |
D.R. Horton, Inc. | | | 1,434 | | | | 43,310 | |
| | | | | | | | |
| | |
Homefurnishing Retail – 2.8% | | | | | | | | |
Bed Bath & Beyond, Inc. | | | 885 | | | | 38,153 | |
Williams-Sonoma, Inc. | | | 725 | | | | 37,040 | |
| | | | | | | | |
| | | | | | | 75,193 | |
| | | | | | | | |
| | |
Leisure Products – 3.6% | | | | | | | | |
Mattel, Inc. (C) | | | 1,639 | | | | 49,629 | |
Polaris Industries, Inc. | | | 611 | | | | 47,350 | |
| | | | | | | | |
| | | | | | | 96,979 | |
| | | | | | | | |
| | |
Restaurants – 2.2% | | | | | | | | |
Dunkin’ Brands Group, Inc. (C) | | | 1,139 | | | | 59,303 | |
| | | | | | | | |
| | |
Specialty Stores – 3.5% | | | | | | | | |
Tiffany & Co. | | | 692 | | | | 50,267 | |
Tractor Supply Co. | | | 664 | | | | 44,724 | |
| | | | | | | | |
| | | | | | | 94,991 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 19.9% | | | | 533,558 | |
Consumer Staples | | | | | | | | |
| | |
Food Retail – 1.7% | | | | | | | | |
Whole Foods Market, Inc. | | | 1,600 | | | | 45,354 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 5.0% | |
Blue Buffalo Pet Products, Inc. (B) | | | 1,337 | | | | 31,765 | |
Hain Celestial Group, Inc. (The) (B) | | | 1,101 | | | | 39,161 | |
Mead Johnson Nutrition Co. (C) | | | 791 | | | | 62,461 | |
| | | | | | | | |
| | | | | | | 133,387 | |
| | | | | | | | |
| |
Total Consumer Staples – 6.7% | | | | 178,741 | |
Energy | | | | | | | | |
| |
Oil & Gas Exploration & Production – 4.8% | |
Cabot Oil & Gas Corp. | | | 1,079 | | | | 27,837 | |
Cimarex Energy Co. | | | 201 | | | | 27,048 | |
Continental Resources, Inc. (B) | | | 772 | | | | 40,115 | |
Noble Energy, Inc. | | | 954 | | | | 34,081 | |
| | | | | | | | |
| | | | | | | 129,081 | |
| | | | | | | | |
| |
Total Energy – 4.8% | | | | 129,081 | |
Financials | | | | | | | | |
| |
Asset Management & Custody Banks – 3.4% | |
Northern Trust Corp. | | | 965 | | | | 65,603 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Asset Management & Custody Banks (Continued) | |
Oaktree Capital Group LLC | | | 601 | | | $ | 25,494 | |
| | | | | | | | |
| | | | | | | 91,097 | |
| | | | | | | | |
| |
Financial Exchanges & Data – 2.4% | |
CME Group, Inc. | | | 626 | | | | 65,481 | |
| | | | | | | | |
| | |
Regional Banks – 3.4% | | | | | | | | |
First Republic Bank | | | 653 | | | | 50,380 | |
Signature Bank (B) | | | 341 | | | | 40,414 | |
| | | | | | | | |
| | | | | | | 90,794 | |
| | | | | | | | |
| |
Total Financials – 9.2% | | | | 247,372 | |
Health Care | | | | | | | | |
| | |
Biotechnology – 4.1% | | | | | | | | |
ACADIA Pharmaceuticals, Inc. (B) | | | 657 | | | | 20,914 | |
Alkermes plc (B) | | | 942 | | | | 44,308 | |
BioMarin Pharmaceutical, Inc. (B) | | | 473 | | | | 43,745 | |
| | | | | | | | |
| | | | | | | 108,967 | |
| | | | | | | | |
| |
Health Care Distributors – 1.0% | |
Henry Schein, Inc. (B) | | | 158 | | | | 25,676 | |
| | | | | | | | |
| |
Health Care Equipment – 5.3% | |
Edwards Lifesciences Corp. (B) | | | 476 | | | | 57,443 | |
Intuitive Surgical, Inc. (B) | | | 117 | | | | 85,017 | |
| | | | | | | | |
| | | | | | | 142,460 | |
| | | | | | | | |
| |
Health Care Facilities – 0.7% | |
Acadia Healthcare Co., Inc. (B) | | | 402 | | | | 19,926 | |
| | | | | | | | |
| | |
Health Care Services – 2.3% | | | | | | | | |
Diplomat Pharmacy, Inc. (B) | | | 712 | | | | 19,951 | |
Laboratory Corp. of America Holdings (B) | | | 302 | | | | 41,573 | |
| | | | | | | | |
| | | | | | | 61,524 | |
| | | | | | | | |
| | |
Health Care Supplies – 1.6% | | | | | | | | |
Align Technology, Inc. (B) | | | 454 | | | | 42,579 | |
| | | | | | | | |
| | |
Pharmaceuticals – 3.1% | | | | | | | | |
Zoetis, Inc. | | | 1,626 | | | | 84,555 | |
| | | | | | | | |
| |
Total Health Care – 18.1% | | | | 485,687 | |
Industrials | | | | | | | | |
| |
Air Freight & Logistics – 2.0% | |
Expeditors International of Washington, Inc. | | | 1,054 | | | | 54,327 | |
| | | | | | | | |
| | |
Building Products – 2.6% | | | | | | | | |
A. O. Smith Corp. | | | 263 | | | | 25,979 | |
Fortune Brands Home & Security, Inc. (C) | | | 734 | | | | 42,616 | |
| | | | | | | | |
| | | | | | | 68,595 | |
| | | | | | | | |
| |
Construction Machinery & Heavy Trucks – 0.5% | |
Westinghouse Air Brake Technologies Corp. | | | 169 | | | | 13,796 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Electrical Components & Equipment – 0.9% | |
Generac Holdings, Inc. (B) | | | 670 | | | $ | 24,328 | |
| | | | | | | | |
| | |
Industrial Machinery – 2.2% | | | | | | | | |
IDEX Corp. | | | 438 | | | | 41,011 | |
Woodward, Inc. | | | 291 | | | | 18,190 | |
| | | | | | | | |
| | | | | | | 59,201 | |
| | | | | | | | |
| |
Research & Consulting Services – 4.3% | |
CoStar Group, Inc. (B)(D) | | | 343 | | | | 74,280 | |
Verisk Analytics, Inc., Class A (B) | | | 516 | | | | 41,901 | |
| | | | | | | | |
| | | | | | | 116,181 | |
| | | | | | | | |
| |
Trading Companies & Distributors – 3.1% | |
Fastenal Co. (C) | | | 1,989 | | | | 83,088 | |
| | | | | | | | |
| |
Total Industrials – 15.6% | | | | 419,516 | |
Information Technology | | | | | | | | |
| |
Application Software – 4.3% | | | | | |
ANSYS, Inc. (B) | | | 429 | | | | 39,693 | |
Ellie Mae, Inc. (B) | | | 263 | | | | 27,731 | |
Guidewire Software, Inc. (B) | | | 472 | | | | 28,312 | |
Mobileye N.V. (B) | | | 436 | | | | 18,565 | |
| | | | | | | | |
| | | | | | | 114,301 | |
| | | | | | | | |
| |
Communications Equipment – 1.6% | |
Harris Corp. | | | 468 | | | | 42,850 | |
| | | | | | | | |
| |
Electronic Manufacturing Services – 2.1% | |
Trimble Navigation Ltd. (B) | | | 1,991 | | | | 56,859 | |
| | | | | | | | |
| |
Home Entertainment Software – 2.7% | |
Electronic Arts, Inc. (B)(C) | | | 845 | | | | 72,201 | |
| | | | | | | | |
| |
Internet Software & Services – 4.7% | |
Akamai Technologies, Inc. (B) | | | 206 | | | | 10,910 | |
GrubHub, Inc. (B) | | | 1,226 | | | | 52,724 | |
Pandora Media, Inc. (B) | | | 4,278 | | | | 61,297 | |
| | | | | | | | |
| | | | | | | 124,931 | |
| | | | | | | | |
| | |
Semiconductors – 4.1% | | | | | | | | |
Maxim Integrated Products, Inc. | | | 714 | | | | 28,491 | |
Microchip Technology, Inc. | | | 1,239 | | | | 76,963 | |
Monolithic Power Systems, Inc. | | | 67 | | | | 5,433 | |
| | | | | | | | |
| | | | | | | 110,887 | |
| | | | | | | | |
| | |
Systems Software – 3.9% | | | | | | | | |
Red Hat, Inc. (B) | | | 623 | | | | 50,391 | |
ServiceNow, Inc. (B) | | | 696 | | | | 55,094 | |
| | | | | | | | |
| | | | | | | 105,485 | |
| | | | | | | | |
| |
Total Information Technology – 23.4% | | | | 627,514 | |
Materials | | | | | | | | |
| |
Fertilizers & Agricultural Chemicals – 1.3% | |
Scotts Miracle-Gro Co. (The) | | | 418 | | | | 34,811 | |
| | | | | | | | |
| |
Total Materials – 1.3% | | | | 34,811 | |
| |
TOTAL COMMON STOCKS – 99.0% | | | $ | 2,656,280 | |
(Cost: $2,271,501) | | | | | | | | |
| | | | | | |
| 84 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MID CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| PURCHASED OPTIONS | | Number of
Contracts
(Unrounded) | | | Value | |
MarketAxess Holdings, Inc., | | | | | | | | |
Call $175.00, Expires 11–18–16, OTC (Ctrpty: UBS AG) | | | 811 | | | $ | 261 | |
Russell 2000 Index, | | | | | | | | |
Put $1,220.00, Expires 10–28–16, OTC (Ctrpty: UBS AG) | | | 1,203 | | | | 1,498 | |
S&P 500 Index, | | | | | | | | |
Put $2,125.00, Expires 10–28–16 | | | 392 | | | | 629 | |
SPDR S&P MIDCAP 400 ETF Trust, | | | | | | | | |
Put $275.00, Expires 10–28–16, OTC (Ctrpty: Citibank N.A.) | | | 6,727 | | | | 1,665 | |
| | | | | | | | |
| |
TOTAL PURCHASED OPTIONS – 0.2% | | | $ | 4,053 | |
(Cost: $4,225) | | | | | | | | |
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Commercial Paper (E) — 0.7% | |
John Deere Canada ULC (GTD by Deere & Co.), | | | | | | | | |
0.450%, 11–7–16 | | $ | 5,000 | | | $ | 4,998 | |
NBCUniversal Enterprise, Inc., | | | | | | | | |
0.790%, 10–17–16 | | | 5,000 | | | | 4,998 | |
Wisconsin Electric Power Co., | | | | | | | | |
0.450%, 10–3–16 | | | 10,209 | | | | 10,208 | |
| | | | | | | | |
| | | | | | | 20,204 | |
| | | | | | | | |
| | |
Master Note – 0.1% | | | | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (F) | | | 1,528 | | | | 1,528 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES –0.8% | | | $ | 21,732 | |
(Cost: $21,733) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.0% | | | $ | 2,682,065 | |
(Cost: $2,297,459) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.0% | | | | 1,030 | |
| |
NET ASSETS – 100.0% | | | $ | 2,683,095 | |
Notes to Schedule of Investments
| (A) | Listed on an exchange outside the United States. |
| (B) | No dividends were paid during the preceding 12 months. |
| (C) | All or a portion of securities with an aggregate value of $14,619 are held in collateralized accounts for OTC derivatives collateral and is governed by International Swaps and Derivatives Association, Inc. Master Agreements. |
| (D) | All or a portion of securities with an aggregate value of $4,764 are held in collateralized accounts to cover potential obligations with respect to outstanding written options. |
| (E) | Rate shown is the yield to maturity at September 30, 2016. |
| (F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):
| | | | | | | | | | | | | | | | | | | | | | |
| Underlying Security | | Counterparty, if OTC | | Type | | Number of
Contracts | | | Expiration Month | | Exercise Price | | | Premium
Received | | | Value | |
| MarketAxess Holdings, Inc. | | UBS AG | | Put | | | 811 | | | November 2016 | | $ | 150.00 | | | $ | 366 | | | $ | (168 | ) |
| Pacira Pharmaceuticals, Inc. | | Goldman Sachs International | | Put | | | 2,887 | | | December 2016 | | | 85.00 | | | | 12,154 | | | | (14,676 | ) |
| Russell 2000 Index | | UBS AG | | Put | | | 1,203 | | | October 2016 | | | 1,110.00 | | | | 253 | | | | (213 | ) |
| S&P 500 Index | | N/A | | Put | | | 392 | | | October 2016 | | | 1,975.00 | | | | 109 | | | | (92 | ) |
| SPDR S&P MIDCAP 400 ETF Trust | | Citibank N.A. | | Put | | | 6,727 | | | October 2016 | | | 255.00 | | | | 262 | | | | (286 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 13,144 | | | $ | (15,435 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 85 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MID CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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 | | $ | 2,656,280 | | | $ | — | | | $ | — | |
Purchased Options | | | 629 | | | | 3,424 | | | | — | |
Short–Term Securities | | | — | | | | 21,732 | | | | — | |
Total | | $ | 2,656,909 | | | $ | 25,156 | | | $ | — | |
Liabilities | | | | | | | | | | | | |
Written Options | | $ | 92 | | | $ | 15,343 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
GTD = Guaranteed
OTC = Over the Counter
See Accompanying Notes to Financial Statements.
| | | | | | |
| 86 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MID CAP INCOME OPPORTUNITIES FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 97.5% | |
Consumer Discretionary | | | 22.1% | |
Information Technology | | | 16.6% | |
Industrials | | | 14.1% | |
Energy | | | 8.5% | |
Materials | | | 8.5% | |
Financials | | | 8.3% | |
Health Care | | | 8.3% | |
Consumer Staples | | | 5.5% | |
Real Estate | | | 2.9% | |
Utilities | | | 2.7% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 2.5% | |
Lipper Rankings
| | | | | | |
Category: Lipper Mid-Cap Core Funds Universe Average | | Rank | | Percentile | |
1 Year | | 18/419 | | | 5 | |
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 |
Polaris Industries, Inc. | | Consumer Discretionary | | Leisure Products |
Rockwell Automation, Inc. | | Industrials | | Electrical Components & Equipment |
American Campus Communities, Inc. | | Real Estate | | Residential REITs |
Targa Resources Corp. | | Energy | | Oil & Gas Storage & Transportation |
Scotts Miracle–Gro Co. (The) | | Materials | | Fertilizers & Agricultural Chemicals |
RPM International, Inc. | | Materials | | Specialty Chemicals |
Helmerich & Payne, Inc. | | Energy | | Oil & Gas Drilling |
KAR Auction Services, Inc. | | Industrials | | Diversified Support Services |
Microchip Technology, Inc. | | Information Technology | | Semiconductors |
Maxim Integrated Products, Inc. | | Information Technology | | Semiconductors |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 87 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Apparel Retail – 2.8% | |
Limited Brands, Inc. | | | 84 | | | $ | 5,916 | |
| | | | | | | | |
| |
Consumer Electronics – 2.8% | |
Garmin Ltd. | | | 122 | | | | 5,881 | |
| | | | | | | | |
| |
Department Stores – 2.8% | |
Kohl’s Corp. | | | 134 | | | | 5,878 | |
| | | | | | | | |
| |
Home Furnishings – 2.7% | |
Leggett & Platt, Inc. | | | 127 | | | | 5,803 | |
| | | | | | | | |
| |
Leisure Products – 5.5% | |
Mattel, Inc. | | | 185 | | | | 5,596 | |
Polaris Industries, Inc. | | | 82 | | | | 6,342 | |
| | | | | | | | |
| | | | | | | 11,938 | |
| | | | | | | | |
| |
Movies & Entertainment – 2.7% | |
Cinemark Holdings, Inc. | | | 150 | | | | 5,740 | |
| | | | | | | | |
| |
Restaurants – 2.8% | |
Cracker Barrel Old Country Store, Inc. | | | 44 | | | | 5,847 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 22.1% | | | | 47,003 | |
Consumer Staples | |
| |
Household Products – 2.8% | |
Clorox Co. (The) | | | 47 | | | | 5,888 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 2.7% | |
Kellogg Co. | | | 74 | | | | 5,733 | |
| | | | | | | | |
| |
Total Consumer Staples – 5.5% | | | | 11,621 | |
Energy | |
| |
Oil & Gas Drilling – 2.8% | |
Helmerich & Payne, Inc. | | | 89 | | | | 5,997 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 5.7% | |
Plains All American Pipeline L.P. | | | 186 | | | | 5,854 | |
Targa Resources Corp. | | | 123 | | | | 6,058 | |
| | | | | | | | |
| | | | | | | 11,912 | |
| | | | | | | | |
| |
Total Energy – 8.5% | | | | 17,909 | |
Financials | |
| |
Insurance Brokers – 2.8% | |
Arthur J. Gallagher & Co. | | | 116 | | | | 5,915 | |
| | | | | | | | |
| |
Regional Banks – 5.5% | |
Glacier Bancorp, Inc. | | | 203 | | | | 5,780 | |
Umpqua Holdings Corp. | | | 384 | | | | 5,781 | |
| | | | | | | | |
| | | | | | | 11,561 | |
| | | | | | | | |
| |
Total Financials – 8.3% | | | | 17,476 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Health Care | |
| |
Health Care Equipment – 2.8% | |
Becton Dickinson & Co. | | | 33 | | | $ | 5,922 | |
| | | | | | | | |
| |
Health Care Facilities – 2.7% | |
HealthSouth Corp. | | | 142 | | | | 5,778 | |
| | | | | | | | |
| |
Health Care Supplies – 2.8% | |
Cardinal Health, Inc. | | | 75 | | | | 5,826 | |
| | | | | | | | |
| |
Total Health Care – 8.3% | | | | 17,526 | |
Industrials | |
| |
Diversified Support Services – 2.8% | |
KAR Auction Services, Inc. | | | 138 | | | | 5,966 | |
| | | | | | | | |
| |
Electrical Components & Equipment – 2.9% | |
Rockwell Automation, Inc. | | | 51 | | | | 6,201 | |
| | | | | | | | |
| |
Environmental & Facilities Services – 2.7% | |
Republic Services, Inc., Class A | | | 115 | | | | 5,795 | |
| | | | | | | | |
| |
Office Services & Supplies – 5.7% | |
Avery Dennison Corp. | | | 76 | | | | 5,878 | |
HNI Corp. | | | 148 | | | | 5,886 | |
| | | | | | | | |
| | | | | | | 11,764 | |
| | | | | | | | |
| |
Total Industrials – 14.1% | | | | 29,726 | |
Information Technology | |
| |
Communications Equipment – 2.8% | |
Harris Corp. | | | 65 | | | | 5,919 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 5.4% | |
Broadridge Financial Solutions, Inc. | | | 84 | | | | 5,698 | |
Paychex, Inc. | | | 99 | | | | 5,738 | |
| | | | | | | | |
| | | | | | | 11,436 | |
| | | | | | | | |
| |
Semiconductors – 8.4% | |
Maxim Integrated Products, Inc. | | | 149 | | | | 5,940 | |
Microchip Technology, Inc. | | | 96 | | | | 5,948 | |
Xilinx, Inc. | | | 108 | | | | 5,880 | |
| | | | | | | | |
| | | | | | | 17,768 | |
| | | | | | | | |
| |
Total Information Technology – 16.6% | | | | 35,123 | |
Materials | |
| |
Fertilizers & Agricultural Chemicals – 2.9% | |
Scotts Miracle-Gro Co. (The) | | | 72 | | | | 6,024 | |
| | | | | | | | |
| |
Paper Packaging – 2.8% | |
Sonoco Products Co. | | | 111 | | | | 5,879 | |
| | | | | | | | |
| |
Specialty Chemicals – 2.8% | |
RPM International, Inc. | | | 112 | | | | 6,002 | |
| | | | | | | | |
| |
Total Materials – 8.5% | | | | 17,905 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Real Estate | |
| |
Residential REITs – 2.9% | |
American Campus Communities, Inc. | | | 120 | | | $ | 6,105 | |
| | | | | | | | |
| |
Total Real Estate – 2.9% | | | | 6,105 | |
Utilities | |
| |
Electric Utilities – 2.7% | |
OGE Energy Corp. | | | 184 | | | | 5,807 | |
| | | | | | | | |
| | |
Total Utilities – 2.7% | | | | | | | 5,807 | |
| | |
TOTAL COMMON STOCKS – 97.5% | | | | | | $ | 206,201 | |
(Cost: $184,770) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (A) – 1.7% | |
St. Jude Medical, Inc., | | | | | | | | |
0.700%, 10–3–16 | | $ | 3,460 | | | | 3,460 | |
| | | | | | | | |
| |
Master Note – 0.7% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (B) | | | 1,585 | | | | 1,585 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 2.4% | | | $ | 5,045 | |
(Cost: $5,045) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 99.9% | | | $ | 211,246 | |
(Cost: $189,815) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.1% | | | | 282 | |
| |
NET ASSETS – 100.0% | | | $ | 211,528 | |
| | | | | | |
| 88 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MID CAP INCOME OPPORTUNITIES FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Schedule of Investments
| (A) | Rate shown is the yield to maturity at September 30, 2016. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 206,201 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 5,045 | | | | — | |
Total | | $ | 206,201 | | | $ | 5,045 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 89 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MONEY MARKET FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Corporate Obligations | | | 26.2% | |
Commercial Paper | | | 21.9% | |
Master Note | | | 3.5% | |
Notes | | | 0.8% | |
United States Government and Government Agency Obligations | | | 47.7% | |
Municipal Obligations | | | 26.6% | |
Liabilities, Net of Cash and Other Assets | | | -0.5% | |
Lipper Rankings
| | | | | | |
| Category: Lipper Money Market Funds | | Rank | | Percentile | |
1 Year | | 35/140 | | | 25 | |
3 Year | | 33/130 | | | 26 | |
5 Year | | 28/129 | | | 22 | |
10 Year | | 22/105 | | | 21 | |
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.
| | | | | | |
| 90 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MONEY MARKET FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| CORPORATE OBLIGATIONS | | Principal | | | Value | |
Commercial Paper (A) | |
Coca-Cola Co. (The), | | | | | | | | |
0.660%, 10–13–16 | | $ | 3,500 | | | $ | 3,499 | |
Corporacion Andina de Fomento: | | | | | | | | |
0.823%, 10–5–16 | | | 2,600 | | | | 2,600 | |
0.760%, 10–14–16 | | | 3,400 | | | | 3,399 | |
CVS Health Corp., | | | | | | | | |
0.700%, 10–3–16 | | | 950 | | | | 950 | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | | 950 | | | | 950 | |
Kroger Co. (The), | | | | | | | | |
0.630%, 10–3–16 | | | 915 | | | | 915 | |
Malayan Banking Berhad (GTD by Wells Fargo Bank N.A.): | | | | | | | | |
0.691%, 10–4–16 | | | 1,300 | | | | 1,300 | |
0.451%, 10–7–16 | | | 4,500 | | | | 4,500 | |
Northern Illinois Gas Co.: | | | | | | | | |
0.560%, 10–4–16 | | | 4,000 | | | | 4,000 | |
0.510%, 10–11–16 | | | 2,000 | | | | 2,000 | |
Rabobank Nederland, | | | | | | | | |
0.740%, 10–12–16 | | | 2,350 | | | | 2,349 | |
River Fuel Trust #1 (GTD by Bank of Nova Scotia), | | | | | | | | |
0.790%, 10–14–16 | | | 9,000 | | | | 8,997 | |
St. Jude Medical, Inc., | | | | | | | | |
0.700%, 10–3–16 | | | 950 | | | | 950 | |
Toyota Motor Credit Corp., | | | | | | | | |
0.774%, 10–6–16 (B) | | | 2,600 | | | | 2,600 | |
Wisconsin Electric Power Co., | | | | | | | | |
0.490%, 10–4–16 | | | 3,500 | | | | 3,500 | |
| | | | | | | | |
| |
Total Commercial Paper – 21.9% | | | | 42,509 | |
Master Note | | | | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (B) | | | 6,848 | | | | 6,848 | |
| | | | | | | | |
| |
Total Master Note – 3.5% | | | | 6,848 | |
Notes | | | | | | | | |
Royal Bank of Canada, | | | | | | | | |
0.920%, 10–14–16 (B) | | | 1,500 | | | | 1,500 | |
| | | | | | | | |
| |
Total Notes – 0.8% | | | | 1,500 | |
| | |
TOTAL CORPORATE OBLIGATIONS – 26.2% | | | | | | $ | 50,857 | |
(Cost: $50,857) | | | | | | | | |
| | |
| MUNICIPAL OBLIGATIONS | | | | | | |
California — 5.4% | | | | | | | | |
CA GO Bonds, Ser 2004B6 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (B) | | | 2,000 | | | | 2,000 | |
CA Statewide Cmnty Dev Auth, Multifam Hsng Rev Bonds (Wyndover Apts), Ser 2004 LL (GTD by FNMA), | | | | | | | | |
0.860%, 10–7–16 (B) | | | 1,350 | | | | 1,350 | |
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL, | | | | | | | | |
0.850%, 10–7–16 (B) | | | 7,200 | | | | 7,200 | |
| | | | | | | | |
| | | | | | | 10,550 | |
| | | | | | | | |
| | | | | | | | |
MUNICIPAL OBLIGATIONS
(Continued) | | Principal | | | Value | |
Colorado – 1.5% | | | | | | | | |
CO Hsng and Fin Auth, Multifam Hsng Rev Bonds (Greentree Vlg Apts Proj), Ser 2007 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.910%, 10–7–16 (B) | | $ | 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.), | | | | | | | | |
1.000%, 10–7–16 (B) | | | 250 | | | | 250 | |
| | | | | | | | |
| | | | | | | 2,950 | |
| | | | | | | | |
| | |
Georgia – 0.5% | | | | | | | | |
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser B (Taxable), (GTD by TD Bank N.A.), | | | | | | | | |
0.680%, 10–11–16 | | | 1,000 | | | | 1,000 | |
| | | | | | | | |
| | |
Kansas – 1.0% | | | | | | | | |
Univ of KS Hosp Auth, Var Rate Demand Hlth Fac Rev Bonds (KU Hlth Sys), Ser 2004 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.910%, 10–1–16 (B) | | | 1,975 | | | | 1,975 | |
| | | | | | | | |
| | |
Louisiana – 2.0% | | | | | | | | |
LA Pub Fac Auth, Rev Bonds (Air Products and Chemicals Proj), Ser 2008A (GTD by Air Products and Chemicals, Inc.), | | | | | | | | |
0.850%, 10–1–16 (B) | | | 2,911 | | | | 2,911 | |
Parish of St. Bernard, LA, Exempt Fac Rev Bonds (Mobil Oil Corp. Proj), Ser 1996 (GTD by Exxon Mobil Corp.), | | | | | | | | |
0.780%, 10–1–16 (B) | | | 1,000 | | | | 1,000 | |
| | | | | | | | |
| | | | | | | 3,911 | |
| | | | | | | | |
| | |
Maryland – 2.0% | | | | | | | | |
MD Hlth and Higher Edu Fac Auth Rev Bonds, Anne Arundel Hlth Sys Issue, Ser 2009A (GTD by TD Bank N.A.), | | | | | | | | |
0.750%, 10–7–16 (B) | | | 3,800 | | | | 3,800 | |
| | | | | | | | |
| | |
Michigan – 1.3% | | | | | | | | |
MI Strategic Fund, Var Rate Demand Ltd. Oblig Rev Bonds (Air Prods and Chemicals, Inc. Proj),
Ser 2007 (GTD by Air Prods and Chemicals, Inc.), | | | | | | | | |
0.850%, 10–1–16 (B) | | | 2,500 | | | | 2,500 | |
| | | | | | | | |
| | |
Minnesota – 3.1% | | | | | | | | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2011A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.860%, 10–7–16 (B) | | | 6,000 | | | | 6,000 | |
| | | | | | | | |
| | | | | | | | |
MUNICIPAL OBLIGATIONS
(Continued) | | Principal | | | Value | |
Missouri – 0.5% | | | | | | | | |
Kansas City, MO, Var Rate Demand Taxable Spl Oblig Rfdg Bonds (President Hotel Redev Proj), Ser 2009B (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.880%, 10–7–16 (B) | | $ | 950 | | | $ | 950 | |
| | | | | | | | |
| | |
New Jersey – 0.5% | | | | | | | | |
Trap Rock Industries, Inc., Var Demand Bonds, Ser 2005 (GTD by Wachovia Bank N.A.), | | | | | | | | |
0.650%, 10–7–16 (B) | | | 1,045 | | | | 1,045 | |
| | | | | | | | |
| | |
New York – 4.0% | | | | | | | | |
NY Hsng Fin Agy, Related-Caroline Apt Hsng Rev Bonds, Ser 2008A (GTD by FHLMC), | | | | | | | | |
0.830%, 10–7–16 (B) | | | 500 | | | | 500 | |
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2013A, | | | | | | | | |
0.840%, 10–7–16 (B) | | | 2,000 | | | | 2,000 | |
NY State Hsng Fin Agy, Maestro West Chelsea Hsng Rev Bonds, Ser 2015B (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.780%, 10–7–16 (B) | | | 2,300 | | | | 2,300 | |
NY State Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2013A-1 (GTD by Bank of America N.A.), | | | | | | | | |
0.840%, 10–7–16 (B) | | | 1,200 | | | | 1,200 | |
NYC GO Bonds, Fiscal 2006 Ser E (GTD by Bank of America N.A.), | | | | | | | | |
0.880%, 10–7–16 (B) | | | 1,644 | | | | 1,644 | |
| | | | | | | | |
| | | | | | | 7,644 | |
| | | | | | | | |
| | |
Ohio – 1.7% | | | | | | | | |
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–7–16 (B) | | | 2,900 | | | | 2,900 | |
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–7–16 (B) | | | 300 | | | | 300 | |
| | | | | | | | |
| | | | | | | 3,200 | |
| | | | | | | | |
| | |
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.), | | | | | | | | |
0.830%, 10–7–16 (B) | | | 760 | | | | 760 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 91 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MONEY MARKET FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL OBLIGATIONS
(Continued) | | Principal | | | Value | |
Texas – 2.0% | | | | | | | | |
Port Arthur Nav Dist Indl Dev Corp., Exempt Fac Var Rate Rev Bonds (Air Products Proj), Ser 2006 (GTD by Air Products and Chemicals, Inc.), | | | | | | | | |
0.850%, 10–1–16 (B) | | $ | 1,000 | | | $ | 1,000 | |
Port Arthur Nav Dist Indl Dev Corp., Exempt Fac Var Rate Rev Bonds (Air Prdts Proj), Ser 2005 (GTD by Air Products and Chemicals, Inc.), | | | | | | | | |
0.850%, 10–1–16 (B) | | | 2,925 | | | | 2,925 | |
| | | | | | | | |
| | | | | | | 3,925 | |
| | | | | | | | |
| | |
Wyoming – 0.7% | | | | | | | | |
Uinta Cnty, WY, Pollutn Ctl Rfdg Rev Bonds (Chevron USA, Inc. Proj), Ser 1992 (GTD by Chevron Corp.), | | | | | | | | |
0.830%, 10–1–16 (B) | | | 1,283 | | | | 1,283 | |
| | | | | | | | |
| |
TOTAL MUNICIPAL
OBLIGATIONS – 26.6% | | | $ | 51,493 | |
(Cost: $51,493) | | | | | | | | |
| | | | | | | | |
UNITED STATES GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS | | Principal | | | Value | |
Treasury Bills – 8.3% | | | | | | | | |
U.S. Treasury Bills: | | | | | | | | |
0.440%, 2–9–17 | | $ | 861 | | | $ | 859 | |
0.470%, 3–9–17 | | | 4,000 | | | | 3,992 | |
0.540%, 3–16–17 | | | 2,700 | | | | 2,693 | |
0.500%, 3–23–17 | | | 2,500 | | | | 2,494 | |
U.S. Treasury Notes, | | | | | | | | |
0.420%, 10–2–16 (B) | | | 6,040 | | | | 6,039 | |
| | | | | | | | |
| | | | | | | 16,077 | |
| | | | | | | | |
| | |
United States Government Agency Obligations – 39.4% | | | | | | | | |
Federal Home Loan Bank: | | | | | | | | |
0.570%, 10–12–16 (B) | | | 2,300 | | | | 2,300 | |
0.720%, 2–17–17 | | | 2,500 | | | | 2,500 | |
0.690%, 7–26–17 | | | 3,000 | | | | 3,000 | |
0.750%, 8–23–17 | | | 4,000 | | | | 4,000 | |
| | | | | | | | |
UNITED STATES GOVERNMENT
AND GOVERNMENT AGENCY
OBLIGATIONS (Continued) | | Principal | | | Value | |
United States Government Agency Obligations (Continued) | | | | | | | | |
Overseas Private Investment Corp. (GTD by U.S. Government): | | | | | | | | |
0.750%, 10–5–16 (B) | | $ | 1,786 | | | $ | 1,786 | |
0.760%, 10–5–16 (B) | | | 10,143 | | | | 10,143 | |
0.800%, 10–5–16 (B) | | | 2,233 | | | | 2,233 | |
0.560%, 10–7–16 (B) | | | 3,100 | | | | 3,100 | |
0.750%, 10–7–16 (B) | | | 12,565 | | | | 12,564 | |
0.760%, 10–7–16 (B) | | | 19,731 | | | | 19,731 | |
0.790%, 10–7–16 (B) | | | 11,000 | | | | 11,000 | |
0.800%, 10–7–16 (B) | | | 808 | | | | 808 | |
0.560%, 1–12–17 (B) | | | 3,250 | | | | 3,250 | |
| | | | | | | | |
| | | | | | | 76,415 | |
| | | | | | | | |
| | |
TOTAL UNITED STATES
GOVERNMENT AND GOVERNMENT
AGENCY
OBLIGATIONS — 47.7% | | | | | $92,492 | |
(Cost: $92,492) | | | | | | | | |
| |
TOTAL INVESTMENT
SECURITIES – 100.5% | | | $ | 194,842 | |
(Cost: $194,842) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.5)% | | | | (1,217 | ) |
| |
NET ASSETS – 100.0% | | | $ | 193,625 | |
Notes to Schedule of Investments
| (A) | Rate shown is the yield to maturity at September 30, 2016. |
| (B) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | — | | | $ | 50,857 | | | $ | — | |
Municipal Obligations | | | — | | | | 51,493 | | | | — | |
United States Government and Government Agency Obligations | | | — | | | | 92,492 | | | | — | |
Total | | $ | — | | | $ | 194,842 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
FHLMC = Federal Home Loan Mortgage Corp.
FNMA = Federal National Mortgage Association
GTD = Guaranteed
See Accompanying Notes to Financial Statements.
| | | | | | |
| 92 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MUNICIPAL BOND FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 2.8% | |
Financials | | | 2.8% | |
Bonds | | | 81.0% | |
Municipal Bonds | | | 81.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 16.2% | |
Lipper Rankings
| | | | | | |
Category: Lipper General Municipal
Debt Funds | | Rank | | Percentile | |
1 Year | | 216/267 | | | 81 | |
3 Year | | 202/230 | | | 88 | |
5 Year | | 171/209 | | | 82 | |
10 Year | | 72/154 | | | 47 | |
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 | | | 73.2% | |
AAA | | | 2.3% | |
AA | | | 34.8% | |
A | | | 26.7% | |
BBB | | | 9.4% | |
Non-Investment Grade | | | 7.8% | |
BB | | | 0.9% | |
B | | | 0.6% | |
CCC | | | 0.2% | |
Non-rated | | | 6.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities | | | 19.0% | |
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.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 93 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Financials | |
| |
Registered Investment Companies – 2.8% | |
iShares National AMT-Free Muni Bond ETF | | | 60 | | | $ | 6,776 | |
| | | | | | | | |
| |
Total Financials – 2.8% | | | | 6,776 | |
| | |
TOTAL COMMON STOCKS – 2.8% | | | | | | $ | 6,776 | |
(Cost: $6,678) | |
| | |
| MUNICIPAL BONDS | | Principal | | | | |
Alabama – 0.9% | |
The Pub Edu Bldg Auth of Tuscaloosa, Student Hsng Rev Bonds (Univ of AL Ridgecrest Residential Proj), Ser 2008, | | | | | | | | |
6.750%, 7–1–33 | | $ | 500 | | | | 545 | |
The Spl Care Fac Fin Auth of Birmingham–Children’s Hosp, Hlth Care Fac Rev Bonds, Ser 2009, | | | | | | | | |
6.000%, 6–1–39 | | | 750 | | | | 850 | |
Water Works Board of Birmingham, AL, Water Rev Bonds, Ser 2009-A, | | | | | | | | |
5.125%, 1–1–34 | | | 750 | | | | 817 | |
| | | | | | | | |
| | | | | | | 2,212 | |
| | | | | | | | |
| |
Arizona – 0.9% | |
AZ Cert of Part, Ser 2010A (Insured by AGM), | | | | | | | | |
5.250%, 10–1–26 | | | 1,000 | | | | 1,118 | |
Rio Nuevo Multipurp Fac Dist (Tucson, AZ), Sub Lien Excise Tax Rev Bonds, Ser 2008, | | | | | | | | |
6.625%, 7–15–25 | | | 500 | | | | 551 | |
Univ Med Ctr Corp. (Tucson, AZ), Hosp Rev Bonds, Ser 2009, | | | | | | | | |
6.500%, 7–1–39 | | | 500 | | | | 575 | |
| | | | | | | | |
| | | | | | | 2,244 | |
| | | | | | | | |
| |
Arkansas – 0.4% | |
Board of Trustees of the Univ of AR, Var Fac Rev Bonds (Fayetteville Campus), Rfdg and Impvt Ser 2016A, | | | | | | | | |
5.000%, 11–1–37 | | | 745 | | | | 921 | |
| | | | | | | | |
| |
California – 11.0% | |
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 D-1 Index Rate Bonds, | | | | | | | | |
1.219%, 4–1–45 (A) | | | 1,000 | | | | 1,002 | |
Bay Area Toll Auth, San Francisco Bay Area Toll Bridge Rev Bonds, Ser 2008 G-1, | | | | | | | | |
1.940%, 4–1–45 (A) | | | 1,500 | | | | 1,516 | |
CA Cmnty Trans Rev (Installment Sale), Cert of Part (T.R.I.P. - Total Road Impvt Prog), Ser 2012B, | | | | | | | | |
5.250%, 6–1–42 | | | 345 | | | | 392 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
California – 11.0% (Continued) | |
CA Muni Fin Auth, Cmnty Hosp of Cent CA Oblig Group Cert of Part, | | | | | | | | |
5.500%, 2–1–39 | | $ | 460 | | | $ | 504 | |
CA Muni Fin Auth, Edu Rev Bonds (American Heritage Edu Fndtn Proj), Ser 2016A, | | | | | | | | |
5.000%, 6–1–36 | | | 1,000 | | | | 1,150 | |
CA Pollutn Ctl Fin Auth, Solid Waste Disp Rev Bonds (Republic Svc, Inc. Proj), Ser 2002B, | | | | | | | | |
5.250%, 6–1–23 | | | 415 | | | | 435 | |
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, | | | | | | | | |
5.000%, 10–1–22 | | | 375 | | | | 412 | |
CA Statewide Cmnty Dev Auth, Insd Rev Bonds (Henry Mayo Newhall Mem Hosp), Ser 2007A, | | | | | | | | |
5.000%, 10–1–37 | | | 500 | | | | 521 | |
CA Statewide Cmnty Dev Auth, Student Hsng Rev Bonds (Univ of CA, Irvine East Campus Apt, Phase I Rfdg-CHF-Irvine LLC), Ser 2011, | | | | | | | | |
5.000%, 5–15–21 | | | 1,365 | | | | 1,585 | |
CA Various Purp GO Bonds: | | | | | | | | |
5.250%, 9–1–26 | | | 1,500 | | | | 1,806 | |
5.250%, 10–1–29 | | | 500 | | | | 564 | |
6.500%, 4–1–33 | | | 1,000 | | | | 1,138 | |
6.000%, 11–1–39 | | | 500 | | | | 577 | |
CA Various Purp GO Rfdg Bonds, | | | | | | | | |
5.000%, 2–1–33 | | | 2,000 | | | | 2,395 | |
City of Los Angeles, Wastewater Sys Rev Bonds, Rfdg Ser 2015-D, | | | | | | | | |
5.000%, 6–1–34 | | | 1,190 | | | | 1,466 | |
Cnty of Sacramento, Arpt Sys Sub and PFC/Grant Rev Bonds, Ser 2009, | | | | | | | | |
5.125%, 7–1–25 | | | 500 | | | | 536 | |
Golden State Tob Securitization Corp., Enhanced Tob Stlmt Asset-Bkd Bonds, Ser 2013A, | | | | | | | | |
5.000%, 6–1–30 | | | 1,000 | | | | 1,201 | |
La Quinta Redev Proj Areas No. 1 and 2, Tax Alloc Rfdg Bonds, Ser 2014A, | | | | | | | | |
5.000%, 9–1–34 | | | 750 | | | | 898 | |
Los Angeles Unif Sch Dist (Cnty of Los Angeles, CA), GO Bonds, Election of 2005, Ser 2009F, | | | | | | | | |
5.000%, 1–1–34 | | | 500 | | | | 556 | |
Modesto, CA, Irrigation Dist Fin Auth, Elec Sys Rev Bonds, Ser 2015A, | | | | | | | | |
5.000%, 10–1–36 | | | 670 | | | | 801 | |
Mountain View Shoreline Reg Park Comnty (Santa Clara Cnty, CA), Rev Bonds, Ser 2011A, | | | | | | | | |
5.000%, 8–1–21 | | | 250 | | | | 293 | |
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part, | | | | | | | | |
6.750%, 11–1–39 | | | 250 | | | | 287 | |
Palomar, CA, Hlth GO Rfdg Bonds, Ser 2016B, | | | | | | | | |
4.000%, 8–1–37 (B) | | | 1,000 | | | | 1,094 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
California – 11.0% (Continued) | |
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, 2010 Tax Alloc Bonds, Ser E, | | | | | | | | |
5.250%, 10–1–20 | | $ | 570 | | | $ | 645 | |
Redev Agy for Riverside, Interstate 215 Corridor Redev Proj Area, Ser 2010E, | | | | | | | | |
6.000%, 10–1–25 | | | 445 | | | | 523 | |
San Jose, CA, Arpt Rev Bonds, Ser 2011A-1, | | | | | | | | |
5.250%, 3–1–21 | | | 500 | | | | 583 | |
Santa Ana Unif Sch Dist (Orange County, CA), Election of 2008 Gen Oblig Bond, Series B, | | | | | | | | |
0.000%, 8–1–37 (C) | | | 1,455 | | | | 753 | |
Southn CA Pub Power Auth, Transmission Proj Rev Bonds (Southn Transmission Proj), Ser 2008B, | | | | | | | | |
6.000%, 7–1–27 | | | 500 | | | | 545 | |
State Pub Works Board of CA, Lease Rev Bonds (Various Cap Proj), Ser 2011A: | | | | | | | | |
5.250%, 10–1–24 | | | 500 | | | | 599 | |
5.000%, 12–1–24 | | | 500 | | | | 595 | |
Trustees of the CA State Univ, Systemwide Rev Bonds, Ser 2015A, | | | | | | | | |
5.000%, 11–1–38 | | | 500 | | | | 614 | |
Upland Unif Sch Dist (San Bernardino Cnty, CA), Election of 2008 GO Bonds, Ser A, | | | | | | | | |
0.000%, 8–1–31 (C) | | | 150 | | | | 98 | |
Vernon Elec Sys Rev Bonds, Ser 2012A, | | | | | | | | |
5.500%, 8–1–41 | | | 315 | | | | 365 | |
| | | | | | | | |
| | | | | | | 26,449 | |
| | | | | | | | |
| |
Colorado – 1.6% | |
Adams 12 Five Star Sch, Adams and Broomfield Cnty, CO Cert of Part, Ser 2008, | | | | | | | | |
5.000%, 12–1–25 | | | 500 | | | | 544 | |
City and Cnty of Broomfield, CO, Rfdg Cert of Part, Ser 2010, | | | | | | | | |
5.000%, 12–1–23 | | | 500 | | | | 570 | |
Joint Sch Dist No. 28J, Adams and Arapahoe Cnty, CO, GO Bonds, Ser 2008, | | | | | | | | |
6.000%, 12–1–28 | | | 500 | | | | 555 | |
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, | | | | | | | | |
6.125%, 12–1–30 | | | 500 | | | | 531 | |
Platte Vly Fire Protection Dist, Weld Cnty, CO, Cert of Part, Ser 2012, | | | | | | | | |
5.000%, 12–1–36 | | | 300 | | | | 334 | |
Rgnl Trans Dist of CO, Cert of Part, Ser 2015A, | | | | | | | | |
5.000%, 6–1–35 | | | 435 | | | | 520 | |
| | | | | | |
| 94 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Colorado – 1.6% (Continued) | |
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, | | | | | | | | |
6.500%, 1–15–30 | | $ | 750 | | | $ | 880 | |
| | | | | | | | |
| | | | | | | 3,934 | |
| | | | | | | | |
| |
Connecticut – 0.6% | |
Cap City Econ Dev Auth, Prkg and Enrg Fee Rev Bonds, Ser 2008D, | | | | | | | | |
5.000%, 6–15–22 | | | 370 | | | | 394 | |
CT GO Bonds, Ser 2012D, | | | | | | | | |
1.760%, 9–15–19 (A) | | | 1,000 | | | | 1,007 | |
| | | | | | | | |
| | | | | | | 1,401 | |
| | | | | | | | |
| |
District Of Columbia – 1.1% | |
DC GO Rfdg Bonds, Ser 2008F (Insured by BHAC), | | | | | | | | |
5.000%, 6–1–19 | | | 1,000 | | | | 1,070 | |
DC Hosp Rev Bonds (Sibley Mem Hosp Issue), Ser 2009, | | | | | | | | |
6.375%, 10–1–39 | | | 750 | | | | 869 | |
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds, Ser 2009C, | | | | | | | | |
0.000%, 10–1–41 (C) | | | 500 | | | | 680 | |
| | | | | | | | |
| | | | | | | 2,619 | |
| | | | | | | | |
| |
Florida – 6.1% | |
Brevard Cnty Hlth Fac Auth, Hlth Rev Bonds (Hlth First, Inc. Proj), Ser 2009B, | | | | | | | | |
7.000%, 4–1–39 | | | 500 | | | | 576 | |
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009, | | | | | | | | |
6.750%, 11–1–39 | | | 500 | | | | 553 | |
Citizens Ppty Ins Corp., Sr Secured Rev Bonds, Ser 2010A–1, | | | | | | | | |
5.250%, 6–1–17 | | | 400 | | | | 412 | |
Fort Myers, FL, Cap Impvt and Rfdg Rev Bonds, Ser 2016 (Insured by BAMAC), | | | | | | | | |
4.000%, 12–1–34 | | | 700 | | | | 772 | |
Hillsborough Cnty Aviation Auth, FL Intl Arpt, Sub Rev Bonds, Ser 2015B, | | | | | | | | |
5.000%, 10–1–35 | | | 300 | | | | 349 | |
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008A, | | | | | | | | |
5.625%, 8–15–29 | | | 555 | | | | 604 | |
Hillsborough Cnty Indl Dev Auth, Indl Dev Rev Bonds, Hlth Fac Proj (Univ Cmnty Hosp), Ser 2008B, | | | | | | | | |
8.000%, 8–15–32 | | | 600 | | | | 725 | |
Miami-Dade Cnty, FL, Aviation Rev Bonds, Miami Intl Arpt (Hub of the Americas), Ser 2009A, | | | | | | | | |
5.500%, 10–1–36 | | | 500 | | | | 564 | |
Miami-Dade Cnty, FL, Aviation Rev Bonds, Ser 2010B, | | | | | | | | |
5.000%, 10–1–23 | | | 500 | | | | 574 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Florida – 6.1% (Continued) | |
Miami-Dade Cnty, FL, GO Bonds (Bldg Better Cmnty Prog), Ser 2008B, | | | | | | | | |
6.250%, 7–1–26 | | $ | 500 | | | $ | 547 | |
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008B (Insured by AGM), | | | | | | | | |
5.250%, 10–1–22 | | | 500 | | | | 614 | |
Miami-Dade Cnty, FL, Water and Sewer Sys Rev Rfdg Bonds, Ser 2008C (Insured by BHAC), | | | | | | | | |
5.000%, 10–1–17 | | | 500 | | | | 520 | |
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, | | | | | | | | |
7.250%, 10–1–34 | | | 500 | | | | 646 | |
Osceola Cnty, FL, Sales Tax Rev Rfdg Bonds, Ser 2016A, | | | | | | | | |
5.000%, 10–1–37 | | | 2,005 | | | | 2,387 | |
Palm Beach Co, Hlth Fac Auth Rev Bonds (Lifespace Cmnty, Inc.), Ser 2015C, | | | | | | | | |
5.000%, 5–15–30 | | | 1,000 | | | | 1,197 | |
Pinellas Cnty Edu Fac Auth, Rev Rfdg Prog Bonds (Barry Univ Proj), Ser 2012, | | | | | | | | |
5.250%, 10–1–30 | | | 750 | | | | 848 | |
Port St. Lucie, FL, Spl Assmt Rfdg Bonds (City Ctr Spl Assmt Dist), Ser 2008A, | | | | | | | | |
5.750%, 7–1–20 | | | 500 | | | | 537 | |
St. Johns Cnty Indl Dev Auth, Rev Bonds (Presbyterian Ret Cmnty Proj), Ser 2010A, | | | | | | | | |
5.875%, 8–1–40 | | | 500 | | | | 567 | |
St. Lucie, FL, Util Sys Rfdg Rev Bonds, Ser 2016, | | | | | | | | |
4.000%, 9–1–34 | | | 1,000 | | | | 1,113 | |
Volusia Cnty Edu Fac Auth, Edu Fac Rev Rfdg Bonds (Embry-Riddle Aeronautical Univ, Inc. Proj), Ser 2011, | | | | | | | | |
5.250%, 10–15–22 | | | 500 | | | | 585 | |
| | | | | | | | |
| | | | | | | 14,690 | |
| | | | | | | | |
| |
Georgia – 1.1% | |
Dev Auth of Burke Cnty (GA), Pollutn Ctl Rev Bonds (Oglethorpe Power Corp. Vogtle Proj), Ser 2003A, | | | | | | | | |
0.919%, 1–1–24 (A) | | | 2,000 | | | | 1,982 | |
Muni Elec Auth of GA, Proj One Sub Bonds, Ser 2008D, | | | | | | | | |
5.750%, 1–1–20 | | | 500 | | | | 543 | |
| | | | | | | | |
| | | | | | | 2,525 | |
| | | | | | | | |
| |
Hawaii – 1.2% | |
HI Arpt Sys Rev Bond, Rfdg Ser 2011, | | | | | | | | |
5.000%, 7–1–21 | | | 1,000 | | | | 1,164 | |
HI Dept of Budget and Fin, Spl Purp Rev Bonds (The Queen’s Hlth Sys), Ser 2015A, | | | | | | | | |
5.000%, 7–1–35 | | | 1,500 | | | | 1,807 | |
| | | | | | | | |
| | | | | | | 2,971 | |
| | | | | | | | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
| |
Illinois – 5.6% | |
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | | | | | | | | |
5.000%, 5–1–26 | | $ | 165 | | | $ | 167 | |
Build IL Sales Tax Rev Bonds, Ser 2011, | | | | | | | | |
5.000%, 6–15–27 | | | 500 | | | | 567 | |
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Rfdg Bonds, Ser 2015B, | | | | | | | | |
5.000%, 1–1–34 | | | 1,000 | | | | 1,189 | |
City of Chicago, Second Lien Water Rev Bonds, Ser 2014, | | | | | | | | |
5.000%, 11–1–39 | | | 1,500 | | | | 1,703 | |
City of Chicago, Second Lien Water Rev Bonds, Ser 2000, | | | | | | | | |
5.000%, 11–1–30 | | | 500 | | | | 596 | |
IL Fin Auth, DePaul Univ Rev Bonds, Ser 2016, | | | | | | | | |
5.000%, 10–1–41 | | | 2,410 | | | | 2,858 | |
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, | | | | | | | | |
6.500%, 4–1–39 | | | 500 | | | | 547 | |
IL Fin Auth, Rev Bonds, The Univ of Chicago, Ser 2008B, | | | | | | | | |
5.500%, 7–1–19 | | | 500 | | | | 540 | |
IL Fin Auth, Student Hsng Rev Bonds (CHF-DeKalb LLC–Northn IL Univ Proj), Ser 2011, | | | | | | | | |
5.750%, 10–1–21 | | | 395 | | | | 440 | |
IL GO Bonds, Ser 2012A, | | | | | | | | |
4.000%, 1–1–23 | | | 1,000 | | | | 1,056 | |
IL Muni Elec Agy, Power Supply Sys Rev Rfdg Bonds, Ser 2015A, | | | | | | | | |
5.000%, 2–1–32 | | | 695 | | | | 830 | |
IL Sales Tax Rev Bonds (Jr Oblig), Ser 2013, | | | | | | | | |
5.000%, 6–15–26 | | | 300 | | | | 358 | |
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, 2013 Ser A, | | | | | | | | |
5.000%, 1–1–35 | | | 1,100 | | | | 1,284 | |
IL State Toll Hwy Auth, Toll Hwy Sr Rev Bonds, Ser B, | | | | | | | | |
5.000%, 1–1–37 | | | 500 | | | | 597 | |
State of IL GO Bonds, | | | | | | | | |
5.500%, 7–1–26 | | | 500 | | | | 575 | |
| | | | | | | | |
| | | | | | | 13,307 | |
| | | | | | | | |
| |
Indiana – 1.0% | |
Hammond, IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, | | | | | | | | |
6.000%, 1–15–17 | | | 80 | | | | 80 | |
IN Fin Auth, Fac Rev Rfdg Bonds (Miami Correctional Fac–Phase II), Ser 2008C, | | | | | | | | |
5.000%, 7–1–17 | | | 500 | | | | 516 | |
IN Muni Power Agy, Power Supply Sys Rfdg Rev Bonds, Ser 2016C, | | | | | | | | |
5.000%, 1–1–39 | | | 1,000 | | | | 1,194 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 95 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Indiana – 1.0% (Continued) | |
Mt. Vernon Sch Bldg Corp. of Hancock Cnty, IN, First Mtg Bonds, Ser 2007 (Insured by AGM), | | | | | | | | |
5.250%, 1–15–32 | | $ | 500 | | | $ | 529 | |
| | | | | | | | |
| | | | | | | 2,319 | |
| | | | | | | | |
| |
Iowa – 1.5% | |
Altoona, IA, Annual Appropriation Urban Renewal Tax Incr Rev Bonds, Ser 2008, | | | | | | | | |
6.000%, 6–1–34 | | | 1,000 | | | | 1,085 | |
Ames, IA, Hosp Rev Rfdg Bonds (Mary Greeley Med Ctr), Ser 2016, | | | | | | | | |
4.000%, 6–15–35 | | | 1,510 | | | | 1,662 | |
IA Higher Edu Loan Auth, Private College Fac Rev Bonds (Upper IA Univ Proj), Ser 2012, | | | | | | | | |
5.000%, 9–1–33 | | | 750 | | | | 932 | |
| | | | | | | | |
| | | | | | | 3,679 | |
| | | | | | | | |
| |
Kansas – 1.5% | |
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, | | | | | | | | |
7.000%, 9–1–38 | | | 500 | | | | 524 | |
Saint Marys, KS, Pollutn Ctl Rev Bonds (Westn Res, Inc. Proj), Ser 1994, | | | | | | | | |
1.120%, 4–15–32 (A) | | | 2,000 | | | | 1,863 | |
Shawnee Cnty, KS, Cert of Part (First Responders Comm Proj), Ser 2012, | | | | | | | | |
5.000%, 9–1–24 | | | 1,050 | | | | 1,189 | |
| | | | | | | | |
| | | | | | | 3,576 | |
| | | | | | | | |
| |
Kentucky – 1.0% | |
Cmnwlth of KY, State Ppty and Bldg Comsn, Rev and Rev Rfdg Bonds, Proj No. 90, | | | | | | | | |
5.750%, 11–1–19 | | | 500 | | | | 548 | |
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: | | | | | | | | |
5.500%, 6–1–21 | | | 500 | | | | 570 | |
6.500%, 3–1–45 | | | 675 | | | | 774 | |
Louisville Rgnl Arpt Auth, Arpt Sys Rev Bonds, Ser 2008A, | | | | | | | | |
5.250%, 7–1–28 | | | 500 | | | | 537 | |
| | | | | | | | |
| | | | | | | 2,429 | |
| | | | | | | | |
| |
Louisiana – 2.1% | |
LA Citizens Prop Ins Corp., Assmt Rev Rfdg Bonds, Ser 2012, | | | | | | | | |
5.000%, 6–1–24 | | | 500 | | | | 608 | |
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Hosp Rev Bonds (Women’s Hosp Fndtn Gulf Opp Zone Proj), Ser 2010B, | | | | | | | | |
6.000%, 10–1–44 | | | 750 | | | | 882 | |
New Orleans Aviation Board, Rev Rfdg Bonds (Restructuring GARBs), Ser 2009A–1, | | | | | | | | |
6.000%, 1–1–23 | | | 500 | | | | 552 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Louisiana – 2.1% (Continued) | |
New Orleans, LA, GO Rfdg Bonds, Ser 2012 (Insured by AGM), | | | | | | | | |
5.000%, 12–1–26 | | $ | 1,500 | | | $ | 1,771 | |
Rgnl Transit Auth, New Orleans, LA, Sales Tax Rev Bonds, Ser 2010 (Insured by AGM), | | | | | | | | |
5.000%, 12–1–22 | | | 1,000 | | | | 1,144 | |
| | | | | | | | |
| | | | | | | 4,957 | |
| | | | | | | | |
| |
Maine – 1.1% | |
ME Tpk Auth, Tpk Rev Rfdg Bonds, Ser 2015, | | | | | | | | |
5.000%, 7–1–34 | | | 2,255 | | | | 2,727 | |
| | | | | | | | |
| |
Maryland – 0.7% | |
MD Econ Dev Corp., Pollutn Ctl Rev Rfdg Bonds (Potomac Elec Proj), Ser 2006, | | | | | | | | |
6.200%, 9–1–22 | | | 500 | | | | 561 | |
MD Hlth and Higher Edu Fac Auth, Rev Bonds, Johns Hopkins Hlth Sys Oblig Group Issue, Ser 2012D, | | | | | | | | |
1.181%, 5–15–38 (A) | | | 995 | | | | 993 | |
| | | | | | | | |
| | | | | | | 1,554 | |
| | | | | | | | |
| |
Massachusetts – 0.5% | |
MA Dev Fin Agy, Rev Bonds, Foxborough Rgnl Charter Sch Issue, Ser 2010, | | | | | | | | |
6.375%, 7–1–30 | | | 485 | | | | 541 | |
MA Edu Fin Auth, Edu Loan Rev Bonds, Issue I, Ser 2009, | | | | | | | | |
6.000%, 1–1–28 | | | 595 | | | | 632 | |
| | | | | | | | |
| | | | | | | 1,173 | |
| | | | | | | | |
| |
Michigan – 3.7% | |
Kalamazoo Hosp Fin Auth, Hosp Rev Rfdg Bonds (Bronson Methodist Hosp), Ser 2003A, | | | | | | | | |
5.000%, 5–15–26 | | | 500 | | | | 532 | |
Lincoln Consolidated Sch Dist, Cnty of Washtenaw and Wayne, MI, Rfdg Bonds, Ser 2016A, | | | | | | | | |
5.000%, 5–1–35 | | | 500 | | | | 592 | |
MI Fin Auth, Rev Bonds (Detroit Sch Dist), Ser 2011, | | | | | | | | |
5.500%, 6–1–21 | | | 1,000 | | | | 1,036 | |
MI Fin Auth, Hosp Rev and Rfdg Bonds (Trinity Hlth Credit Group), Ser 2015MI, | | | | | | | | |
5.000%, 12–1–35 | | | 500 | | | | 582 | |
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2015I, | | | | | | | | |
5.000%, 4–15–34 | | | 500 | | | | 603 | |
MI State Bldg Auth, Rev and Rfdg Bonds (Fac Prog), Ser 2016I, | | | | | | | | |
4.000%, 10–15–36 | | | 1,000 | | | | 1,101 | |
MI State Hosp Fin Auth, Hosp Rev and Rfdg Bonds (Henry Ford Hlth Sys), Ser 2009, | | | | | | | | |
5.750%, 11–15–39 | | | 750 | | | | 859 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Michigan – 3.7% (Continued) | |
MI State Hosp Fin Auth, Var Rate Rev Bonds (Ascension Hlth Credit Group), Ser 1999B–4, | | | | | | | | |
5.000%, 11–15–32 | | $ | 2,000 | | | $ | 2,417 | |
State Bldg Auth, MI, 2006 Rev Rfdg Bonds (Fac Prog), Ser IA (Insured by FGIC), | | | | | | | | |
0.000%, 10–15–22 (C) | | | 1,000 | | | | 752 | |
State Bldg Auth, MI, 2008 Rev Rfdg Bonds (Fac Prog), Ser I, | | | | | | | | |
5.000%, 10–15–18 | | | 305 | | | | 329 | |
| | | | | | | | |
| | | | | | | 8,803 | |
| | | | | | | | |
| |
Minnesota – 0.2% | |
Minneapolis-St. Paul Metro Arpt Comsn, Sub Arpt Rev Rfdg Bonds, Ser 2010D, | | | | | | | | |
5.000%, 1–1–20 | | | 500 | | | | 560 | |
| | | | | | | | |
| |
Mississippi – 0.4% | |
The Univ of Southn MS, S.M. Edu Bldg Corp., Rev Bonds (Campus Fac Impvt Proj), Ser 2009, | | | | | | | | |
5.375%, 9–1–36 | | | 750 | | | | 846 | |
| | | | | | | | |
| |
Missouri – 4.2% | |
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | | | | | | | | |
6.125%, 12–1–36 | | | 175 | | | | 141 | |
Hlth and Edu Fac Auth, Hlth Fac Rev Bonds (The Children’s Mercy Hosp), Ser 2009, | | | | | | | | |
5.625%, 5–15–39 | | | 750 | | | | 834 | |
Indl Dev Auth of Joplin, MO, Hlth Fac Rev Bonds (Freeman Hlth Sys), Ser 2011, | | | | | | | | |
5.500%, 2–15–31 | | | 750 | | | | 849 | |
Kansas City, MO, Spl Oblig Impvt and Rfdg Bonds (Downtown Arena Proj), Ser 2016E, | | | | | | | | |
5.000%, 4–1–40 | | | 2,000 | | | | 2,337 | |
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Iatan 2 Proj), Ser 2015A, | | | | | | | | |
5.000%, 12–1–37 | | | 1,000 | | | | 1,182 | |
MO Joint Muni Elec Util Comsn, Power Proj Rev Rfdg Bonds (Prairie State Proj), Ser 2016A, | | | | | | | | |
5.000%, 12–1–40 | | | 1,000 | | | | 1,193 | |
Platte Cnty R-III Sch Dist Bldg Corp., Leasehold Rfdg and Impvt Rev Bonds, Ser 2008, | | | | | | | | |
5.000%, 3–1–28 | | | 340 | | | | 357 | |
St. Louis Cnty, MO, Indl Dev Auth, Sr Living Fac Rev Bonds (Friendship Vlg Sunset Hills), Ser 2012, | | | | | | | | |
5.000%, 9–1–32 | | | 1,120 | | | | 1,253 | |
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 (C) | | | 2,350 | | | | 1,181 | |
| | | | | | |
| 96 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Missouri – 4.2% (Continued) | |
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, | | | | | | | | |
6.850%, 4–1–29 | | $ | 200 | | | $ | 215 | |
The Indl Dev Auth of St. Joseph, MO, Spl Oblig Rev Bonds (St. Joseph Sewage Sys Impvt Proj), Ser 2007, | | | | | | | | |
4.375%, 4–1–18 | | | 100 | | | | 102 | |
The Indl Dev Auth of St. Louis, MO, Sr Living Fac Rev Bonds (Friendship Vlg of West Cnty), Ser 2007A, | | | | | | | | |
5.500%, 9–1–28 | | | 500 | | | | 509 | |
| | | | | | | | |
| | | | | | | 10,153 | |
| | | | | | | | |
| |
Nebraska – 1.0% | |
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2015A, | | | | | | | | |
5.000%, 2–1–33 | | | 1,000 | | | | 1,197 | |
Omaha, NE, Pub Power Dist, Separate Elec Sys Rev Bonds (NE City 2), Ser 2016A, | | | | | | | | |
5.000%, 2–1–41 | | | 1,000 | | | | 1,191 | |
| | | | | | | | |
| | | | | | | 2,388 | |
| | | | | | | | |
| |
Nevada – 0.5% | |
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, | | | | | | | | |
8.000%, 6–15–30 | | | 500 | | | | 592 | |
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008: | | | | | | | | |
6.000%, 12–1–16 | | | 75 | | | | 76 | |
6.250%, 12–1–17 | | | 270 | | | | 287 | |
6.500%, 12–1–18 | | | 290 | | | | 325 | |
| | | | | | | | |
| | | | | | | 1,280 | |
| | | | | | | | |
| |
New Hampshire – 0.4% | |
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | | | | | | | | |
6.875%, 7–1–41 | | | 150 | | | | 176 | |
NH Hlth and Edu Fac Auth, FHA Insd Mtg Rev Bonds, LRG Hlthcare Issue, Ser 2009 (Insured by FHA), | | | | | | | | |
7.000%, 4–1–38 | | | 500 | | | | 587 | |
NH Hsng Fin Auth, Sngl Fam Mtg Acquisition Rev Bonds, Ser 2008, | | | | | | | | |
6.000%, 7–1–38 | | | 195 | | | | 199 | |
| | | | | | | | |
| | | | | | | 962 | |
| | | | | | | | |
| |
New Jersey – 3.1% | |
NJ Econ Dev Auth, Rev Bonds (Provident Group-Montclair Ppty LLC–Montclair St Univ Student Hsng Proj), Ser 2010A, | | | | | | | | |
5.750%, 6–1–31 | | | 850 | | | | 954 | |
NJ Econ Dev Auth, Sch Fac Constr Notes, Ser 2012H, | | | | | | | | |
1.740%, 2–1–17 (A) | | | 2,000 | | | | 2,000 | |
NJ Econ Dev Auth, Sch Fac Constr Rfdg Bonds, Ser 2011EE, | | | | | | | | |
5.250%, 9–1–24 | | | 500 | | | | 565 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
New Jersey – 3.1% (Continued) | |
NJ Higher Edu Student Assistance Auth, Student Loan Rev Bonds, Ser 2011-1, | | | | | | | | |
5.000%, 12–1–19 | | $ | 500 | | | $ | 548 | |
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds, Barnabas Hlth Issue, Ser 2011A, | | | | | | | | |
5.625%, 7–1–37 | | | 500 | | | | 605 | |
NJ Hlth Care Fac Fin Auth, Rev Bonds, Virtua Hlth Issue, Ser 2009A, | | | | | | | | |
5.500%, 7–1–38 | | | 500 | | | | 557 | |
NJ Trans Trust Fund Auth, Trans Sys Bonds (Cap Apprec Bonds), Ser 2010A, | | | | | | | | |
0.000%, 12–15–40 (C) | | | 2,000 | | | | 688 | |
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2006A (Insured by AGM/CR), | | | | | | | | |
5.500%, 12–15–22 | | | 500 | | | | 596 | |
NJ Trans Trust Fund Auth, Trans Sys Bonds, Ser 2003B-2, | | | | | | | | |
5.000%, 12–15–16 | | | 500 | | | | 504 | |
Passaic Vly Sewerage Commissioners (NJ), Sewer Sys Bonds, Ser G, | | | | | | | | |
5.750%, 12–1–21 | | | 435 | | | | 517 | |
| | | | | | | | |
| | | | | | | 7,534 | |
| | | | | | | | |
| |
New Mexico – 0.0% | |
NM Mtg Fin Auth, Sngl Fam Mtg Prog Class I Bonds, Ser 2008D-2 (Insured by GNMA/FNMA/FHLMC), | | | | | | | | |
5.250%, 7–1–30 | | | 55 | | | | 56 | |
| | | | | | | | |
| |
New York – 9.0% | |
Buffalo and Erie Cnty Indl Land Dev Corp., Oblig Group Rev Bonds (Catholic Hlth Sys, Inc. Proj), Ser 2015, | | | | | | | | |
5.250%, 7–1–35 | | | 750 | | | | 899 | |
Dormitory Auth of the State of NY, State Personal Income Tax Rev Bonds (Gen Purp), Ser 2015C (Tax-Exempt), | | | | | | | | |
5.000%, 2–15–38 | | | 750 | | | | 905 | |
Long Island Power Auth, Elec Sys Gen Rev Bonds, Ser 2014A (Insured by AGM), | | | | | | | | |
5.000%, 9–1–39 | | | 1,500 | | | | 1,764 | |
Metro Trans Auth, Trans Rev Bonds, Ser 2014C, | | | | | | | | |
5.000%, 11–15–36 | | | 1,500 | | | | 1,805 | |
Metro Trans Auth, Trans Rev Green Bonds, Ser 2016A-1, | | | | | | | | |
5.000%, 11–15–41 | | | 500 | | | | 601 | |
NY Convention Ctr Dev Corp., Rev Rfdg Bonds (Hotel Unit Fee Secured), Ser 2015, | | | | | | | | |
5.000%, 11–15–34 | | | 1,000 | | | | 1,224 | |
NY Dormitory Auth, Mercy Med Ctr Rev Bonds (Catholic Hlth of Long Island Oblig Group), Ser 1999B, | | | | | | | | |
0.800%, 7–1–29 (A) | | | 1,300 | | | | 1,212 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
New York – 9.0% (Continued) | |
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohowk Power Corp. Proj), Ser 1985A (Insured by AMBAC), | | | | | | | | |
1.318%, 12–1–23 (A) | | $ | 1,380 | | | $ | 1,332 | |
NY Enrg Research and Dev Auth, Pollutn Ctl Rev Bonds (Niagara Mohawk Power Corp. Proj), Ser 2004A (Insured by Capital Assurance, Inc.), | | | | | | | | |
1.318%, 7–1–29 (A) | | | 1,280 | | | | 1,254 | |
NY State Enrg Research and Dev Auth, Fac Rev Bonds (Consolidated Edison Co. of NY, Inc. Proj), Sub Ser 1999A-1 (Insured by AMBAC), | | | | | | | | |
1.365%, 5–1–34 (A) | | | 2,000 | | | | 1,840 | |
NYC GO Bonds, Fiscal 2014 Ser G, | | | | | | | | |
5.000%, 8–1–30 | | | 1,000 | | | | 1,212 | |
NYC Hsng Dev Corp., Multi-Fam Hsng Rev Bonds, Ser 2009K, | | | | | | | | |
4.950%, 11–1–39 | | | 415 | | | | 434 | |
NYC Indl Dev Agy, Pilot Rev Bonds (Yankee Stadium Proj), Ser 2009A: | | | | | | | | |
0.000%, 3–1–25 (C) | | | 500 | | | | 415 | |
0.000%, 3–1–26 (C) | | | 500 | | | | 400 | |
0.000%, 3–1–27 (C) | | | 500 | | | | 389 | |
NYC Muni Water Fin Auth, Water and Sewer Sys Second Gen Resolution Rev Bonds, Ser 2015HH, | | | | | | | | |
5.000%, 6–15–37 | | | 1,500 | | | | 1,820 | |
NYC Transitional Fin Auth, Bldg Aid Rev Bonds, Ser 2016S-1, | | | | | | | | |
5.000%, 7–15–37 | | | 1,000 | | | | 1,215 | |
NYC Transitional Fin Auth, Future Tax Secured Tax-Exempt Sub Bonds, Ser 2013I, | | | | | | | | |
5.000%, 5–1–29 | | | 400 | | | | 487 | |
Port Auth of NY & NJ Consolidated Bonds, One Hundred Fifty-Second Ser (Insured by BHAC), | | | | | | | | |
5.750%, 11–1–30 | | | 500 | | | | 539 | |
Util Debt Securitization Auth, Restructuring Bonds, Ser 2013TE, | | | | | | | | |
5.000%, 12–15–31 | | | 1,500 | | | | 1,840 | |
| | | | | | | | |
| | | | | | | 21,587 | |
| | | | | | | | |
| |
North Carolina – 0.4% | |
NC Eastn Muni Power Agy, Power Sys Rev Bonds, Ser 2008C, | | | | | | | | |
6.000%, 1–1–19 | | | 110 | | | | 117 | |
NC Tpk Auth, Triangle Expressway Sys Rev Bonds, Ser 2009A, | | | | | | | | |
0.000%, 1–1–37 (C) | | | 500 | | | | 261 | |
Oak Island, NC, Enterprise Sys Rev Bonds, Ser 2009, | | | | | | | | |
6.000%, 6–1–34 | | | 500 | | | | 567 | |
| | | | | | | | |
| | | | | | | 945 | |
| | | | | | | | |
| |
Ohio – 1.0% | |
American Muni Power, Inc., Greenup Hydroelectric Proj Rev Bonds, Ser 2016A, | | | | | | | | |
4.000%, 2–15–35 | | | 1,000 | | | | 1,090 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 97 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Ohio – 1.0% (Continued) | |
OH Air Quality Dev Auth, Envirnmt Impvt Rev Bonds (Buckeye Power, Inc. Proj), Ser 2010, | | | | | | | | |
5.750%, 12–1–30 | | $ | 500 | | | $ | 585 | |
OH Major New State Infra Proj Rev Bonds, Ser 2008-I, | | | | | | | | |
6.000%, 6–15–17 | | | 395 | | | | 409 | |
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (NW OH Bond Fund) (Midwest Terminals Proj), Ser 2007C, | | | | | | | | |
6.000%, 11–15–27 | | | 370 | | | | 383 | |
| | | | | | | | |
| | | | | | | 2,467 | |
| | | | | | | | |
| |
Oklahoma – 0.4% | |
Grand River Dam Auth, Rev Bonds, Ser 2008A (Insured by BHAC), | | | | | | | | |
5.000%, 6–1–18 | | | 905 | | | | 967 | |
| | | | | | | | |
| |
Oregon – 0.6% | |
Hosp Fac Auth of Clackamas Cnty, OR, Rev Bonds (Legacy Hlth Sys), Ser 2009A, | | | | | | | | |
5.500%, 7–15–35 | | | 250 | | | | 276 | |
Port of Portland, OR, Portland Intl Arpt Rfdg Rev Bonds, Ser Twenty-Three, | | | | | | | | |
5.000%, 7–1–34 | | | 1,000 | | | | 1,210 | |
| | | | | | | | |
| | | | | | | 1,486 | |
| | | | | | | | |
| |
Pennsylvania – 3.4% | |
Allegheny Cnty Arpt Auth, Arpt Rev Rfdg Bonds (Pittsburg Intl Arpt), Ser 2010A, | | | | | | | | |
5.000%, 1–1–17 | | | 250 | | | | 253 | |
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2012, | | | | | | | | |
3.000%, 1–1–17 | | | 455 | | | | 456 | |
Dauphin Cnty Gen Auth, Hlth Sys Rev Bonds (Pinnacle Hlth Sys Proj), Ser 2009A, | | | | | | | | |
6.000%, 6–1–36 | | | 600 | | | | 680 | |
Lycoming Cnty Auth, Hlth Sys Rev Bonds (Susquehanna Hlth Sys Proj), Ser 2009A, | | | | | | | | |
5.750%, 7–1–39 | | | 500 | | | | 561 | |
PA Auth for Indl Dev, Rev Bonds (MaST Charter Sch Proj), Ser 2010, | | | | | | | | |
6.000%, 8–1–35 | | | 750 | | | | 832 | |
PA Higher Edu Fac Auth, Rev Bonds (Shippensburg Univ Student Svc, Inc. Student Hsng Proj at Shippensburg Univ of PA), Ser 2011, | | | | | | | | |
6.000%, 10–1–26 | | | 500 | | | | 572 | |
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009D, | | | | | | | | |
5.500%, 12–1–41 | | | 750 | | | | 836 | |
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2010 B-2, | | | | | | | | |
5.750%, 12–1–28 | | | 1,500 | | | | 1,762 | |
PA Tpk Comsn, Tpk Sub Rev Rfdg Bonds, Ser 2016, | | | | | | | | |
5.000%, 6–1–38 | | | 1,000 | | | | 1,161 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Pennsylvania – 3.4% (Continued) | |
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011, | | | | | | | | |
7.250%, 12–15–31 | | $ | 400 | | | $ | 452 | |
Philadelphia, PA, GO Rfdg Bonds, Ser 2008A (Insured by AGM), | | | | | | | | |
5.250%, 12–15–24 | | | 445 | | | | 485 | |
| | | | | | | | |
| | | | | | | 8,050 | |
| | | | | | | | |
| |
Rhode Island – 0.2% | |
RI Student Loan Auth, Student Loan Prog Rev Bonds, Sr Ser 2008A, | | | | | | | | |
5.250%, 12–1–18 | | | 350 | | | | 366 | |
| | | | | | | | |
| |
South Carolina – 0.5% | |
SC Pub Svc Auth, Tax-Exempt Rfdg and Impvt Rev Oblig, Ser 2015A, | | | | | | | | |
5.000%, 12–1–29 | | | 1,000 | | | | 1,219 | |
| | | | | | | | |
| |
Tennessee – 0.6% | |
Memphis-Shelby Cnty Arpt Auth, Arpt Rfdg Rev Bonds, Ser 2010B, | | | | | | | | |
5.750%, 7–1–25 | | | 750 | | | | 853 | |
The Hlth, Edu and Hsng Fac Board of Shelby, TN, Rev Bonds (Methodist Le Bonheur Hlthcare), Ser 2008C, | | | | | | | | |
5.250%, 6–1–18 | | | 500 | | | | 535 | |
| | | | | | | | |
| | | | | | | 1,388 | |
| | | | | | | | |
| |
Texas – 7.5% | |
Arlington, TX, Spl Tax Rev Bonds, Ser 2008 (Insured by BHAC), | | | | | | | | |
5.000%, 8–15–18 | | | 300 | | | | 317 | |
Austin, TX, Arpt Sys Rev Bonds (Travis, Williamson and Hays Counties), Ser 2014, | | | | | | | | |
5.000%, 11–15–39 | | | 1,000 | | | | 1,153 | |
Board of Regents, TX State Univ Sys, Rev Fin Sys Rev Bonds, Ser 2008, | | | | | | | | |
5.250%, 3–15–19 | | | 355 | | | | 378 | |
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Rfdg Bonds, Ser 2009A, | | | | | | | | |
9.250%, 3–1–24 | | | 500 | | | | 595 | |
Clifton Higher Edu Fin Corp., Edu Rev Bonds (IDEA Pub Sch), Ser 2011, | | | | | | | | |
5.750%, 8–15–41 | | | 500 | | | | 565 | |
Clifton Higher Edu Fin Corp., Edu Rev Bonds (Uplift Edu), Ser 2014A, | | | | | | | | |
4.250%, 12–1–34 | | | 1,000 | | | | 1,035 | |
El Paso, TX (El Paso Cnty), Water and Sewer Rev Rfdg Bonds, Ser 2008C, | | | | | | | | |
5.000%, 3–1–17 | | | 500 | | | | 509 | |
Harris Cnty Cultural Edu Fac Fin Corp., Med Fac Rev Rfdg Bonds (Baylor College of Medicine), Ser 2008D, | | | | | | | | |
5.000%, 11–15–16 | | | 200 | | | | 201 | |
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008, | | | | | | | | |
6.000%, 2–15–33 | | | 1,000 | | | | 1,036 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Texas – 7.5% (Continued) | |
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | | | | | | | | |
6.500%, 5–15–31 | | $ | 1,000 | | | $ | 1,226 | |
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2012A, | | | | | | | | |
5.000%, 7–1–32 | | | 500 | | | | 563 | |
Howard Cnty, TX, GO Bonds, Ser 2008, | | | | | | | | |
4.650%, 2–15–24 | | | 505 | | | | 531 | |
Lower Colorado River Auth, Rfdg Rev Bonds, Ser 2008A, | | | | | | | | |
5.750%, 5–15–23 | | | 500 | | | | 539 | |
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011, | | | | | | | | |
5.625%, 12–1–17 | | | 365 | | | | 375 | |
North TX Twy Auth, Sys Rev Rfdg Bonds, Ser 2008D, | | | | | | | | |
0.000%, 1–1–30 (C) | | | 2,000 | | | | 1,368 | |
North TX Twy Auth, Sys Rev Rfdg Bonds (First Tier Current Int Bonds), Ser 2008A, | | | | | | | | |
6.000%, 1–1–25 | | | 500 | | | | 532 | |
Pflugerville, TX, Ltd. Tax and Rfdg Bonds (Travis and Williamson Cntys), Ser 2016, | | | | | | | | |
4.000%, 8–1–33 | | | 1,000 | | | | 1,124 | |
Prosper, TX (Collin Cnty), Combination Tax and Rev Cert of Oblig, Ser 2008, | | | | | | | | |
5.500%, 2–15–20 | | | 500 | | | | 532 | |
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty, Inc. Proj), Ser 2007, | | | | | | | | |
5.625%, 11–15–27 | | | 250 | | | | 257 | |
Tarrant Cnty, TX, Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty Proj), Ser 2015A, | | | | | | | | |
5.250%, 11–15–35 | | | 400 | | | | 443 | |
Trinity River Auth of TX (Tarrant Cnty Water Proj), Impvt Rev Bonds, Ser 2008, | | | | | | | | |
5.750%, 2–1–26 | | | 325 | | | | 346 | |
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012, | | | | | | | | |
5.000%, 12–15–16 | | | 1,000 | | | | 1,008 | |
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (North Tarrant Express Managed Lanes Proj), Ser 2009, | | | | | | | | |
6.875%, 12–31–39 | | | 500 | | | | 588 | |
TX Private Activity Bond Surface Trans Corp., Sr Lien Rev Bonds (LBJ Infra Group LLC IH-635 Managed Lanes Proj), Ser 2010, | | | | | | | | |
7.500%, 6–30–33 | | | 750 | | | | 912 | |
TX Pub Fin Auth, TX Southn Univ Rev Fin Sys Bonds, Ser 2016 (Insured by BAMAC), | | | | | | | | |
4.000%, 5–1–33 | | | 500 | | | | 541 | |
| | | | | | |
| 98 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Texas – 7.5% (Continued) | |
TX Trans Comsn, Cent TX Tpk Sys Rev Bonds (First Tier Rev Rfdg Bonds), Ser 2015-B, | | | | | | | | |
5.000%, 8–15–37 | | $ | 1,000 | | | $ | 1,172 | |
| | | | | | | | |
| | | | | | | 17,846 | |
| | | | | | | | |
| |
Utah – 0.3% | |
Midvale, UT, Muni Bldg Auth Lease Rev Bonds (City Hall Proj), Ser 2012: | | | | | | | | |
2.000%, 10–15–16 | | | 195 | | | | 195 | |
2.000%, 10–15–17 | | | 465 | | | | 469 | |
| | | | | | | | |
| | | | | | | 664 | |
| | | | | | | | |
| |
Virgin Islands – 0.6% | |
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note–Cruzan Proj), Ser 2009A, | | | | | | | | |
6.000%, 10–1–39 | | | 500 | | | | 513 | |
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note–Diageo Proj), Ser 2009A, | | | | | | | | |
5.000%, 10–1–25 | | | 1,000 | | | | 985 | |
| | | | | | | | |
| | | | | | | 1,498 | |
| | | | | | | | |
| |
Virginia – 0.4% | |
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C, | | | | | | | | |
7.500%, 7–1–29 | | | 500 | | | | 562 | |
VA Pub Bldg Auth, Pub Fac Rev Bonds, Ser 2008B, | | | | | | | | |
5.250%, 8–1–22 | | | 250 | | | | 270 | |
| | | | | | | | |
| | | | | | | 832 | |
| | | | | | | | |
| |
Washington – 0.4% | |
Port of Seattle, Intermediate Lien Rev Rfdg Bonds, Ser 2015B, | | | | | | | | |
5.000%, 3–1–35 | | | 300 | | | | 357 | |
WA Hlth Care Fac Auth, Rev Bonds (Virginia Mason Med Ctr), Ser 2007C, | | | | | | | | |
5.500%, 8–15–36 | | | 500 | | | | 518 | |
| | | | | | | | |
| | | | | | | 875 | |
| | | | | | | | |
| |
West Virginia – 0.2% | |
WV Hosp Fin Auth, Hosp Rev Rfdg and Impvt Bonds (WV Utd Hlth Sys Oblig Group), Ser 2009C, | | | | | | | | |
5.500%, 6–1–39 | | | 500 | | | | 560 | |
| | | | | | | | |
| |
Wisconsin – 1.6% | |
Milwaukee Cnty, WI, Arpt Rev Rfdg Bonds, Ser 2010B, | | | | | | | | |
5.000%, 12–1–19 | | | 1,000 | | | | 1,116 | |
WI Hlth and Edu Fac Auth, Rev Bonds (Ascension Sr Credit Group), Ser 2016A, | | | | | | | | |
4.000%, 11–15–33 | | | 1,000 | | | | 1,119 | |
| | | | | | | | |
MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Wisconsin – 1.6% (Continued) | |
WI Hlth and Edu Fac Auth, Rev Bonds (Med College of WI, Inc.), Ser 2016, | | | | | | | | |
5.000%, 12–1–41 | | $ | 750 | | | $ | 900 | |
WI Hlth and Edu Fac Auth, Rev Bonds (Pro Hlth Care, Inc. Oblig Group), Ser 2009, | | | | | | | | |
6.625%, 2–15–39 | | | 500 | | | | 567 | |
| | | | | | | | |
| | | | | | | 3,702 | |
| | | | | | | | |
| |
Wyoming – 0.5% | |
WY Cmnty Dev Auth, Hsng Rev Bonds, 2014 Ser 1, | | | | | | | | |
3.950%, 12–1–30 | | | 725 | | | | 772 | |
WY Muni Power Agy, Power Supply Sys Rev Bonds, Ser 2008A, | | | | | | | | |
5.250%, 1–1–23 | | | 500 | | | | 526 | |
| | | | | | | | |
| | | | | | | 1,298 | |
| | | | | | | | |
| | |
TOTAL MUNICIPAL BONDS – 81.0% | | | | | | $ | 194,019 | |
(Cost: $178,726) | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper(D) – 2.1% | | | | | |
Anheuser-Busch InBev Worldwide, Inc. (GTD by AB INBEV/BBR/COB), | | | | | | | | |
0.650%, 12–21–16 | | | 2,000 | | | | 1,997 | |
Clorox Co. (The), | | | | | | | | |
0.770%, 10–13–16 | | | 2,984 | | | | 2,983 | |
| | | | | | | | |
| | | | | | | 4,980 | |
| | | | | | | | |
| |
Master Note – 1.2% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (E) | | | 2,858 | | | | 2,858 | |
| | | | | | | | |
| |
Municipal Obligations – 12.3% | | | | | |
CA Hlth Fac Fin Auth, Var Rate Hosp Rev Bonds (Adventist Hlth Sys/West), Ser 1998B (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–1–16 (E) | | | 700 | | | | 700 | |
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–7–16 (E) | | | 4,500 | | | | 4,500 | |
Fremont (Alameda Cnty, CA), Fremont Public Fin Auth (GTD by U.S. Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (E) | | | 5,346 | | | | 5,346 | |
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.850%, 10–7–16 (E) | | | 4,900 | | | | 4,900 | |
Irvine Unif Sch Dist, Cmnty Fac Dist No. 09-1, Adj Rate Spl Tax Bonds, Ser 2012A (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–1–16 (E) | | | 900 | | | | 900 | |
| | | | | | | | |
SHORT-TERM SECURITIES (Continued) | | Principal | | | Value | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), (GTD by U.S. Bank N.A.), | | | | | | | | |
0.860%, 10–7–16 (E) | | $ | 3,200 | | | $ | 3,200 | |
The Regents of the Univ of CA, Gen Rev Bonds, Ser AL, | | | | | | | | |
0.850%, 10–7–16 (E) | | | 5,000 | | | | 5,000 | |
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011I (GTD by Bank of Nova Scotia), | | | | | | | | |
0.840%, 10–7–16 (E) | | | 5,000 | | | | 5,000 | |
| | | | | | | | |
| | | | | | | 29,546 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 15.6% | | | $ | 37,384 | |
(Cost: $37,383) | |
| |
TOTAL INVESTMENT
SECURITIES – 99.4% | | | $ | 238,179 | |
(Cost: $222,787) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES (F) – 0.6% | | | | 1,382 | |
| |
NET ASSETS – 100.0% | | | $ | 239,561 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 99 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL BOND FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Schedule of Investments
| (A) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (B) | Purchased on a when-issued basis with settlement subsequent to September 30, 2016. |
| (D) | Rate shown is the yield to maturity at September 30, 2016. |
| (E) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
| (F) | Cash of $124 has been pledged as collateral on open futures contracts. |
The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):
| | | | | | | | | | | | | | | | |
| Description | | Type | | Expiration Date | | Number of
Contracts | | | Value | | | Unrealized
Appreciation | |
| U.S. Treasury Long Bond | | Short | | 12–30–16 | | | 30 | | | $ | (5,045) | | | $ | 77 | |
| | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 6,776 | | | $ | — | | | $ | — | |
Municipal Bonds | | | — | | | | 194,019 | | | | — | |
Short-Term Securities | | | — | | | | 37,384 | | | | — | |
Total | | $ | 6,776 | | | $ | 231,403 | | | $ | — | |
Futures Contracts | | $ | 77 | | | $ | — | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
AGM = Assured Guaranty Municipal
AMBAC = American Municipal Bond Assurance Corp.
BAMAC = Build America Mutual Assurance Co.
BHAC = Berkshire Hathaway Assurance Corp.
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
See Accompanying Notes to Financial Statements.
| | | | | | |
| 100 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY MUNICIPAL HIGH INCOME FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 0.1% | |
Bonds | | | 95.7% | |
Municipal Bonds | | | 95.5% | |
Corporate Debt Securities | | | 0.2% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 4.2% | |
Lipper Rankings
| | | | | | |
Category: Lipper High Yield
Municipal Debt Funds | | Rank | | Percentile | |
1 Year | | 133/159 | | | 84 | |
3 Year | | 105/131 | | | 80 | |
5 Year | | 89/111 | | | 80 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Quality Weightings
| | | | |
Investment Grade | | | 31.2% | |
AA | | | 1.8% | |
A | | | 6.8% | |
BBB | | | 22.6% | |
Non-Investment Grade | | | 64.5% | |
BB | | | 10.0% | |
B | | | 7.5% | |
CCC | | | 1.0% | |
Below CCC | | | 4.2% | |
Non-rated | | | 41.8% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ and Equities | | | 4.3% | |
Our preference is to always use ratings obtained from Standard & Poor’s. For securities not rated by Standard & Poor’s, ratings are obtained from Moody’s. We do not evaluate these ratings, but simply assign them to the appropriate credit quality category as determined by the rating agency.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 101 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Education Services – 0.1% | |
1155 Island Avenue
LLC (A) | | | 6,578 | | | $ | 1,250 | |
| | | | | | | | |
| | |
TOTAL COMMON
STOCKS – 0.1% | | | | | | $ | 1,250 | |
(Cost: $1,074) | |
| | |
| CORPORATE DEBT SECURITIES | | Principal | | | | |
Education – 0.2% | |
1155 Island Avenue LLC: | | | | | | | | |
10.000%, 12–11–24 (A)(B) | | $ | 2,960 | | | | 2,960 | |
10.000%, 12–11–24 (A) | | | 395 | | | | 395 | |
| | | | | | | | |
| | | | | | | 3,355 | |
| | | | | | | | |
| | |
TOTAL CORPORATE DEBT
SECURITIES – 0.2% | | | | | | $ | 3,355 | |
(Cost: $2,980) | |
| | |
| MUNICIPAL BONDS | | | | | | |
Alabama – 2.4% | |
AL 21st Century Auth, Tob Stlmt Rev Bonds, Ser 2012–A, | | | | | | | | |
5.000%, 6–1–21 | | | 1,000 | | | | 1,158 | |
Fairfield, AL, GO Warrants, Ser 2012, | | | | | | | | |
6.000%, 6–1–37 | | | 8,485 | | | | 9,358 | |
Jefferson Cnty, AL, Swr Rev Bonds, Ser 2013-D, | | | | | | | | |
6.500%, 10–1–53 | | | 7,500 | | | | 9,454 | |
Lower AL Gas Dist, Gas Proj Rev Bonds, Ser 2016A, | | | | | | | | |
5.000%, 9–1–46 | | | 9,000 | | | | 11,915 | |
| | | | | | | | |
| | | | | | | 31,885 | |
| | | | | | | | |
| |
Alaska – 0.8% | |
Northn Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2006A Sr Cur Int Bonds, | | | | | | | | |
5.000%, 6–1–46 | | | 10,500 | | | | 10,403 | |
| | | | | | | | |
| |
American Samoa – 0.4% | |
American Samoa Econ Dev Auth, Gen Rev and Rfdg Bonds, Ser 2015A, | | | | | | | | |
6.625%, 9–1–35 | | | 5,000 | | | | 5,192 | |
| | | | | | | | |
| |
Arizona – 1.4% | |
Indl Dev Auth of Mohave Cnty, Correctional Fac Contract Rev Bonds (Mohave Prison LLC Expansion Proj), Ser 2008, | | | | | | | | |
8.000%, 5–1–25 | | | 7,500 | | | | 7,547 | |
Indl Dev Auth of Pima, Edu Rev Bonds (Noah Webster Sch - Pima Proj), Tax-Exempt Ser 2014A, | | | | | | | | |
7.000%, 12–15–43 | | | 1,500 | | | | 1,728 | |
Indl Dev Auth of Tempe, AZ, Rev Rfdg Bonds (Friendship Vlg of Tempe), Ser 2012A: | | | | | | | | |
6.000%, 12–1–27 | | | 2,390 | | | | 2,675 | |
6.250%, 12–1–42 | | | 2,150 | | | | 2,378 | |
6.250%, 12–1–46 | | | 1,000 | | | | 1,105 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Arizona (Continued) | |
Indl Dev Auth of Yavapai, Edu Rev Bonds (AZ Agribusiness and Equine Ctr, Inc. Proj), Ser 2011, | | | | | | | | |
7.875%, 3–1–42 | | $ | 3,500 | | | $ | 4,097 | |
| | | | | | | | |
| | | | | | | 19,530 | |
| | | | | | | | |
| |
California – 8.2% | |
Adelanto Pub Auth, Fixed Rate Rfdg Rev Bonds (Util Sys Proj), Ser 2009A, | | | | | | | | |
6.750%, 7–1–39 | | | 4,000 | | | | 4,502 | |
CA Muni Fin Auth, Charter Sch Rev Bonds (Palmdale Aerospace Academy Proj), Ser 2016A, | | | | | | | | |
5.000%, 7–1–41 | | | 1,750 | | | | 1,897 | |
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Ser 2009A, | | | | | | | | |
8.750%, 10–1–39 | | | 1,505 | | | | 1,844 | |
CA Muni Fin Auth, Edu Fac Rev Bonds (King/Chavez Academies Proj), Taxable Ser 2009B, | | | | | | | | |
8.000%, 10–1–22 | | | 400 | | | | 481 | |
CA Muni Fin Auth, Edu Fac Rev Bonds (Literacy First Proj), Ser 2010B, | | | | | | | | |
6.000%, 9–1–30 | | | 2,040 | | | | 2,279 | |
CA Sch Fin Auth, Charter Sch Rev Bonds (Coastal Academy Proj), Ser 2013A, | | | | | | | | |
5.000%, 10–1–42 | | | 1,200 | | | | 1,312 | |
CA Statewide Cmnty Dev Auth, Edu Fac Rev Bonds (Independence Support LLC Proj), Ser 2015, | | | | | | | | |
7.000%, 6–1–45 | | | 4,000 | | | | 3,695 | |
CA Statewide Cmnty Dev Auth, Rev Bonds (Lancer Plaza Proj), Ser 2013: | | | | | | | | |
5.625%, 11–1–33 | | | 1,400 | | | | 1,503 | |
5.875%, 11–1–43 | | | 1,890 | | | | 2,035 | |
CA Statewide Cmnty Dev Auth, Rev Bonds (Loma Linda Univ Med Ctr), Ser 2016A, | | | | | | | | |
5.000%, 12–1–46 | | | 3,000 | | | | 3,409 | |
CA Statewide Cmnty Dev Auth, Sch Fac Rev Bonds (Aspire Pub Sch), Ser 2010: | | | | | | | | |
6.000%, 7–1–40 | | | 7,365 | | | | 8,196 | |
6.350%, 7–1–46 | | | 250 | | | | 280 | |
CA Statewide Cmnty Dev Auth, Sr Living Rev Bonds (Southn CA Presbyterian Homes), Ser 2009: | | | | | | | | |
6.625%, 11–15–24 | | | 2,490 | | | | 2,880 | |
7.000%, 11–15–29 | | | 2,000 | | | | 2,310 | |
7.250%, 11–15–41 | | | 6,000 | | | | 6,929 | |
CA Various Purp GO Bonds, | | | | | | | | |
6.000%, 4–1–35 | | | 500 | | | | 563 | |
Cert of Part, Oro Grande Elem Sch Dist, Ser 2013, | | | | | | | | |
5.125%, 9–15–42 | | | 2,760 | | | | 3,103 | |
Golden State Tob Securitization Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007A-1: | | | | | | | | |
5.000%, 6–1–33 | | | 2,275 | | | | 2,295 | |
5.125%, 6–1–47 | | | 13,140 | | | | 13,143 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
California (Continued) | |
Palomar Pomerado Hlth, San Diego Cnty, CA, Cert of Part: | | | | | | | | |
6.750%, 11–1–39 | | $ | 4,935 | | | $ | 5,662 | |
6.000%, 11–1–41 | | | 3,000 | | | | 3,213 | |
Redev Agy of San Buenaventura, Merged San Buenaventura Redev Proj, 2008 Tax Alloc Bonds, | | | | | | | | |
8.000%, 8–1–38 | | | 100 | | | | 104 | |
San Buenaventura Rev Bonds (Cmnty Mem Hlth Sys), Ser 2011: | | | | | | | | |
8.000%, 12–1–26 | | | 1,400 | | | | 1,831 | |
8.000%, 12–1–31 | | | 9,400 | | | | 11,926 | |
San Mateo Cmnty Fac Dist No. 2008-1 (Bay Meadows), Spl Tax Bonds, Ser 2012, | | | | | | | | |
6.000%, 9–1–42 | | | 8,000 | | | | 9,307 | |
Tob Securitization Auth of Southn CA, Tob Stlmt Asset-Bkd Bonds (San Diego Cnty Tob Asset Securitization Corp.),
Ser 2006A Sr Current Int Bonds, | | | | | | | | |
5.000%, 6–1–37 | | | 17,395 | | | | 17,396 | |
| | | | | | | | |
| | | | | | | 112,095 | |
| | | | | | | | |
| |
Colorado – 3.2% | |
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2008, | | | | | | | | |
6.000%, 10–1–40 | | | 5,780 | | | | 6,035 | |
Arkansas River Power Auth, CO, Power Rev Impvt Bonds, Ser 2010, | | | | | | | | |
6.125%, 10–1–40 | | | 5,000 | | | | 5,516 | |
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (The Classical Academy Proj), Ser 2008A, | | | | | | | | |
7.400%, 12–1–38 | | | 85 | | | | 97 | |
CO Edu and Cultural Fac Auth, Charter Sch Rev Bonds (Twin Peaks Charter Academy Proj), Ser 2008, | | | | | | | | |
7.000%, 11–15–38 | | | 230 | | | | 259 | |
CO Edu and Cultural Fac Auth, Charter Sch Rev Dev and Rfdg Bonds (Windsor Charter Academy Proj), Ser 2016: | | | | | | | | |
3.875%, 9–1–26 | | | 570 | | | | 568 | |
5.000%, 9–1–36 | | | 1,000 | | | | 1,020 | |
5.000%, 9–1–46 | | | 1,390 | | | | 1,411 | |
CO Edu and Cultural Fac Auth, Independent Sch Rev Rfdg Bonds (Vail Mountain Sch Proj), Ser 2010, | | | | | | | | |
6.125%, 5–1–40 | | | 1,000 | | | | 1,101 | |
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 | | | | 3,603 | |
CO Hlth Fac Auth, Rev Bonds (CO Sr Residences Proj), Ser 2012: | | | | | | | | |
6.750%, 6–1–32 (C) | | | 2,610 | | | | 2,098 | |
7.125%, 6–1–47 (C) | | | 3,000 | | | | 2,412 | |
| | | | | | |
| 102 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Colorado (Continued) | |
CO Hlth Fac Auth, Rev Bonds (Total Longterm Care Natl Oblig Group Proj), Ser 2010A, | | | | | | | | |
6.250%, 11–15–40 | | $ | 1,250 | | | $ | 1,507 | |
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax GO Rfdg and Impvt Bonds, Ser 2016A, | | | | | | | | |
5.000%, 12–1–45 | | | 1,250 | | | | 1,280 | |
Leyden Rock Metro Dist No. 10 (Arvada, CO), Ltd. Tax Subordinate GO Rfdg and Impvt Bonds, Ser 2016B, | | | | | | | | |
7.250%, 12–15–45 | | | 500 | | | | 494 | |
Lincoln Park Metro Dist, Douglas Cnty, CO, GO Rfdg and Impvt Bonds, Ser 2008, | | | | | | | | |
6.200%, 12–1–37 | | | 3,500 | | | | 3,717 | |
Littleton Vlg Metro Dist No. 2, Ltd. Tax GO and Spl Rev Bonds, Ser 2015, | | | | | | | | |
5.375%, 12–1–45 | | | 1,700 | | | | 1,754 | |
Rgnl Trans Dist, Private Activity Bonds (Denver Transit Partn Eagle P3 Proj), Ser 2010, | | | | | | | | |
6.500%, 1–15–30 | | | 3,000 | | | | 3,520 | |
Sierra Ridge Metro Dist No. 2, Ltd. Tax GO Bonds, Ser 2016A: | | | | | | | | |
4.500%, 12–1–31 | | | 750 | | | | 766 | |
5.500%, 12–1–46 | | | 1,500 | | | | 1,585 | |
Tallgrass Metro Dist, Arapahoe Cnty, CO, GO Ltd. Tax Rfdg and Impvt Bonds, Ser 2007, | | | | | | | | |
5.250%, 12–1–37 | | | 3,500 | | | | 3,527 | |
Wildgrass Metro Dist, Broomfield Cnty, CO, GO Ltd. Tax Rfdg Bonds,
Ser 2007, | | | | | | | | |
6.200%, 12–1–34 | | | 1,511 | | | | 1,525 | |
| | | | | | | | |
| | | | | | | 43,795 | |
| | | | | | | | |
| |
Connecticut – 0.7% | |
CT Hlth and Edu Fac Auth, Hlthcare Fac Expansion Rev Bonds (Church Home of Hartford, Inc. Proj), Ser 2016A, | | | | | | | | |
5.000%, 9–1–46 | | | 1,000 | | | | 1,104 | |
Harbor Point Infra Impvt Dist (Harbor Point Proj), Spl Oblig Rev Bonds,
Ser 2010A, | | | | | | | | |
7.875%, 4–1–39 | | | 2,000 | | | | 2,345 | |
Stamford, CT, Spl Oblig Rev Bonds (Mill River Corridor Proj),
Ser 2011A, | | | | | | | | |
7.000%, 4–1–41 | | | 5,000 | | | | 6,257 | |
| | | | | | | | |
| | | | | | | 9,706 | |
| | | | | | | | |
| |
Delaware – 0.6% | |
DE Econ Dev Auth, Exempt Fac Rev Bonds (Indian River Power LLC Proj), Ser 2010, | | | | | | | | |
5.375%, 10–1–45 | | | 7,000 | | | | 7,602 | |
| | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
District Of Columbia – 0.1% | |
Metro WA DC Arpt Auth, Dulles Toll Road, Second Sr Lien Rev Bonds,
Ser 2010B, | | | | | | | | |
0.000%, 10–1–44 (D) | | $ | 1,000 | | | $ | 1,208 | |
| | | | | | | | |
| |
Florida – 3.4% | |
Brevard Cnty, FL, Indl Dev Rev Bonds (TUFF FL Tech Proj), Ser 2009: | | | | | | | | |
6.500%, 11–1–29 | | | 875 | | | | 962 | |
6.750%, 11–1–39 | | | 2,060 | | | | 2,278 | |
Cap Trust Agy, First Mtg Rev Bonds (Silver Creek St. Augustin Proj),
Ser 2014A, | | | | | | | | |
8.250%, 1–1–49 | | | 3,000 | | | | 2,648 | |
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj),
Ser 2016A, | | | | | | | | |
5.750%, 1–1–50 | | | 645 | | | | 645 | |
Cap Trust Agy, FL, First Mtg Rev Bonds (Silver Creek St. Augustine Proj), Ser 2016B, | | | | | | | | |
7.000%, 1–1–35 | | | 555 | | | | 555 | |
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2010A: | | | | | | | | |
6.000%, 9–15–40 | | | 4,000 | | | | 4,214 | |
6.125%, 6–15–43 | | | 5,500 | | | | 6,079 | |
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2014A: | | | | | | | | |
6.000%, 6–15–34 | | | 110 | | | | 116 | |
6.125%, 6–15–44 | | | 5,300 | | | | 5,555 | |
FL Dev Fin Corp., Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2015A, | | | | | | | | |
6.000%, 6–15–35 | | | 2,000 | | | | 2,117 | |
FL Dev Fin Corp., Taxable Edu Fac Rev Bonds (Renaissance Charter Sch, Inc. Proj), Ser 2012B, | | | | | | | | |
7.500%, 6–15–18 | | | 600 | | | | 616 | |
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 | | | | 6,795 | |
Miami-Dade Cnty Indl Dev Auth, Rev Bonds (Youth Co-Op Charter Sch Proj), Ser 2015A, | | | | | | | | |
6.000%, 9–15–45 | | | 3,250 | | | | 3,429 | |
Mid-Bay Bridge Auth, 1st Sr Lien Rev Bonds, Ser 2015A, | | | | | | | | |
5.000%, 10–1–40 | | | 2,000 | | | | 2,317 | |
Mid-Bay Bridge Auth, Springing Lien Rev Bonds, Ser 2011A, | | | | | | | | |
7.250%, 10–1–40 | | | 4,800 | | | | 6,203 | |
Osceola Cnty, Expressway Sys Rev Bonds (Poinciana Prkwy Proj), Ser 2014A, | | | | | | | | |
5.375%, 10–1–47 | | | 2,000 | | | | 2,252 | |
| | | | | | | | |
| | | | | | | 46,781 | |
| | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Georgia – 0.9% | |
Cobb Cnty, GA, Dev Auth Sr Living Rfdg Rev Bonds (Provident Vlg Creekside Proj), Ser 2016A: | | | | | | | | |
6.000%, 7–1–36 (E) | | $ | 1,250 | | | $ | 1,253 | |
6.000%, 7–1–51 (E) | | | 2,000 | | | | 1,972 | |
Greene Cnty Dev Auth, GA, First Mtg Rev Bonds (Glen-I LLC Proj),
Ser 2015A, | | | | | | | | |
7.250%, 1–1–46 | | | 9,000 | | | | 9,429 | |
| | | | | | | | |
| | | | | | | 12,654 | |
| | | | | | | | |
| |
Guam – 0.9% | |
Cert of Part (JFK High Sch Proj), Dept of Edu, GU, Ser 2010A: | | | | | | | | |
6.625%, 12–1–30 | | | 1,400 | | | | 1,532 | |
6.875%, 12–1–40 | | | 3,500 | | | | 3,859 | |
Govt of GU, GO Bonds, Ser 2009A, | | | | | | | | |
7.000%, 11–15–39 | | | 6,000 | | | | 7,111 | |
| | | | | | | | |
| | | | | | | 12,502 | |
| | | | | | | | |
| |
Hawaii – 0.5% | |
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 | | | | 5,071 | |
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 | | | | 2,111 | |
| | | | | | | | |
| | | | | | | 7,182 | |
| | | | | | | | |
| |
Idaho – 0.1% | |
ID Hsng and Fin Assoc (Compass Pub Charter Sch, Inc. Proj), Ser 2010A: | | | | | | | | |
6.250%, 7–1–40 | | | 1,000 | | | | 1,072 | |
6.250%, 7–1–45 | | | 550 | | | | 588 | |
| | | | | | | | |
| | | | | | | 1,660 | |
| | | | | | | | |
| |
Illinois – 10.3% | |
Belleville, IL, Tax Incr Rfdg Rev Bonds (Frank Scott Pkwy Redev Proj), Ser 2007A, | | | | | | | | |
5.700%, 5–1–36 | | | 4,160 | | | | 4,206 | |
Cert of Part, Metra Market of Chicago LLC Redev Proj, Ser A, | | | | | | | | |
6.870%, 2–15–24 | | | 1,100 | | | | 1,104 | |
Chicago Midway Arpt, Second Lien Rev and Rev Rfdg Bonds, Ser 2014B, | | | | | | | | |
5.000%, 1–1–35 | | | 4,500 | | | | 5,190 | |
Chicago Midway Arpt, Second Lien Rev Rfdg Bonds, Ser 2013B, | | | | | | | | |
5.000%, 1–1–35 | | | 3,000 | | | | 3,402 | |
Chicago Multi-Fam Hsng Rev Bonds (Goldblatts Supportive Living Proj), Ser 2013, | | | | | | | | |
6.125%, 12–1–43 | | | 6,000 | | | | 5,714 | |
Chicago O’Hare Intl Arpt, Gen Arpt Sr Lien Rev Bonds, Ser 2015D, | | | | | | | | |
5.000%, 1–1–46 | | | 2,000 | | | | 2,351 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 103 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Illinois (Continued) | |
Chicago O’Hare Intl Arpt, Gen Arpt Third Lien Rev Bonds, Ser 2011A, | | | | | | | | |
5.750%, 1–1–39 | | $ | 1,000 | | | $ | 1,164 | |
Cook Cnty, IL, Recovery Zone Fac Rev Bonds (Navistar Intl Corp. Proj), Ser 2010, | | | | | | | | |
6.500%, 10–15–40 | | | 2,000 | | | | 2,107 | |
Fairview Heights, IL, Tax Incr Rfdg Rev Bonds (Shoppes at St. Clair Square Redev Proj), Ser 2009A, | | | | | | | | |
8.000%, 12–1–28 | | | 150 | | | | 157 | |
IL Fin Auth, Rev and Rfdg Bonds (Roosevelt Univ Proj), Ser 2009, | | | | | | | | |
6.500%, 4–1–44 | | | 12,000 | | | | 13,108 | |
IL Fin Auth, Rev Bonds (Admiral at the Lake Proj), Ser 2010A: | | | | | | | | |
8.000%, 5–15–40 | | | 17,000 | | | | 19,702 | |
8.000%, 5–15–46 | | | 4,500 | | | | 5,203 | |
IL Fin Auth, Rev Bonds (Lutheran Home and Svs Oblig Group), Ser 2012, | | | | | | | | |
5.625%, 5–15–42 | | | 5,300 | | | | 5,734 | |
IL Fin Auth, Rev Bonds (Navistar Intl Corp. Proj), Ser 2010, | | | | | | | | |
6.500%, 10–15–40 | | | 9,500 | | | | 10,007 | |
IL Fin Auth, Rev Bonds (Silver Cross Hosp and Med Ctrs), Ser 2009, | | | | | | | | |
7.000%, 8–15–44 | | | 7,000 | | | | 8,207 | |
IL Fin Auth, Rev Bonds (Three Crowns Park Proj), Ser 2006A: | | | | | | | | |
5.875%, 2–15–26 | | | 1,000 | | | | 1,002 | |
5.875%, 2–15–38 | | | 3,000 | | | | 3,004 | |
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2009, | | | | | | | | |
7.875%, 3–1–32 | | | 500 | | | | 515 | |
Springfield, Sangamon Cnty, IL, Spl Svc Area (Legacy Pointe), Tax Bonds, Ser 2010, | | | | | | | | |
7.500%, 3–1–32 | | | 1,500 | | | | 1,542 | |
SW IL Dev Auth, Local Govt Prog Rev Bonds (City of Belleville-Carlyle/Green Mount Redev Proj), Ser 2011A, | | | | | | | | |
7.000%, 7–1–41 | | | 6,000 | | | | 6,318 | |
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2008, | | | | | | | | |
7.000%, 12–1–22 | | | 1,630 | | | | 1,797 | |
SW IL Dev Auth, Local Govt Prog Rev Bonds (Granite City Proj), Ser 2009, | | | | | | | | |
8.000%, 1–15–22 | | | 240 | | | | 253 | |
SW IL Dev Auth, Local Govt Prog Rev Rfdg Bonds (Granite City Proj), Ser 2012, | | | | | | | | |
5.250%, 3–1–23 | | | 4,220 | | | | 4,401 | |
Upper IL River Vly Dev Auth (Pleasant View Luther Home Proj), Rev Bonds, Ser 2010: | | | | | | | | |
7.250%, 11–15–40 | | | 1,100 | | | | 1,191 | |
7.375%, 11–15–45 | | | 1,500 | | | | 1,622 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Illinois (Continued) | |
Upper IL River Vly Dev Auth, Multi-Fam Hsng Rev Bonds (Deer Park of Huntley Proj), Ser 2012, | | | | | | | | |
6.500%, 12–1–32 | | $ | 4,935 | | | $ | 5,219 | |
Vlg of Bridgeview, Cook Cnty, IL, GO Bonds, Ser 2015A: | | | | | | | | |
5.750%, 12–1–35 | | | 2,705 | | | | 2,985 | |
5.625%, 12–1–41 | | | 3,365 | | | | 3,614 | |
Vlg of Bridgeview, Cook Cnty, IL, GO Rfdg Bonds, Ser 2014A, | | | | | | | | |
5.500%, 12–1–43 | | | 5,000 | | | | 5,149 | |
Vlg of East Dundee, Kane and Cook Cnty, IL, Ltd. Oblig Tax Incr Rev Bonds (Route 25 South Redev Proj), Ser 2012, | | | | | | | | |
5.625%, 12–1–31 | | | 1,505 | | | | 1,530 | |
Vlg of Matteson, Cook Cnty, IL, GO Cap Apprec Debt Cert,
Ser 2010, | | | | | | | | |
0.000%, 12–1–29 (D) | | | 1,840 | | | | 1,278 | |
Vlg of Riverdale, Cook Cnty, IL, Unlimited Tax GO Bonds, Ser 2011, | | | | | | | | |
8.000%, 10–1–36 | | | 9,910 | | | | 10,942 | |
| | | | | | | | |
| | | | | | | 139,718 | |
| | | | | | | | |
| |
Indiana – 2.9% | |
City of Carmel, IN, Rev Bonds, Ser 2012A: | | | | | | | | |
7.000%, 11–15–27 | | | 1,575 | | | | 1,804 | |
7.000%, 11–15–32 | | | 2,000 | | | | 2,274 | |
7.125%, 11–15–42 | | | 7,500 | | | | 8,535 | |
Hammond, IN, Redev Dist Rev Bonds (Marina Area Proj), Ser 2008, | | | | | | | | |
6.000%, 1–15–17 | | | 5 | | | | 5 | |
IN Fin Auth, Midwestn Disaster Relief Rev Bonds (OH Vly Elec Corp. Proj), Ser 2012A, | | | | | | | | |
5.000%, 6–1–39 | | | 10,000 | | | | 10,776 | |
Lake Station 2008 Bldg Corp., Lake Station, IN, First Mtg Bonds, Ser 2010, | | | | | | | | |
6.000%, 7–15–27 | | | 3,170 | | | | 3,488 | |
Terre Haute, IN, Rev Bonds (Westminister Vlg Proj), Ser 2012, | | | | | | | | |
6.000%, 8–1–39 | | | 5,000 | | | | 5,172 | |
Whitestown, IN, Econ Dev Tax Incr Rev Bonds (Perry Indl Park and Whitestown Crossing Proj), Ser 2010A, | | | | | | | | |
7.000%, 2–1–30 | | | 1,880 | | | | 2,003 | |
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Lakefront Dev Proj), Ser 2010, | | | | | | | | |
6.750%, 1–15–32 | | | 200 | | | | 221 | |
Whiting, IN, Redev Dist Tax Incr Rev Bonds (Standard Avenue Proj), Ser 2006, | | | | | | | | |
5.350%, 1–15–27 | | | 3,355 | | | | 3,374 | |
Whiting, IN, Redev Dist Tax Incr Rev Bonds, Ser 2016, | | | | | | | | |
4.000%, 1–15–32 | | | 1,600 | | | | 1,589 | |
| | | | | | | | |
| | | | | | | 39,241 | |
| | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Iowa – 0.2% | |
IA Fin Auth, Ret Cmnty Rev Bonds (Edgewater LLC Proj), Ser 2007A, | | | | | | | | |
6.750%, 11–15–37 | | $ | 3,000 | | | $ | 3,200 | |
| | | | | | | | |
| |
Kansas – 1.0% | |
Arkansas City, KS, Pub Bldg Comsn, Rev Bonds (South Cent KS Rgnl Med Ctr), Ser 2009, | | | | | | | | |
7.000%, 9–1–38 | | | 500 | | | | 524 | |
Atchison, KS, Hosp Rev Bonds (Atchison Hosp Assoc), Ser 2009, | | | | | | | | |
4.480%, 9–1–30 (F) | | | 1,000 | | | | 1,019 | |
Kansas City, Wyandotte Cnty, KS, Unif Govt Spl Oblig Rev Sales Tax Bonds (Vacation Vlg Proj), Ser 2015A, | | | | | | | | |
5.750%, 9–1–32 | | | 4,000 | | | | 4,145 | |
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 | | | | 4,318 | |
Unif Govt of Wyandotte Cnty, Kansas City, KS, Spl Oblig Rfdg and Impvt Rev Bonds (Wyandotte Plaza Redev Proj), Ser 2016, | | | | | | | | |
5.000%, 12–1–34 | | | 3,000 | | | | 3,123 | |
| | | | | | | | |
| | | | | | | 13,129 | |
| | | | | | | | |
| |
Kentucky – 2.1% | |
KY Econ Dev Fin Auth, Hosp Rev Bonds, Ser 2010A: | | | | | | | | |
6.375%, 6–1–40 | | | 12,000 | | | | 13,718 | |
6.500%, 3–1–45 | | | 6,000 | | | | 6,876 | |
KY Pub Trans Infra Auth, First Tier Toll Rev Bonds, Ser 2013A, | | | | | | | | |
5.750%, 7–1–49 | | | 5,000 | | | | 5,888 | |
Murray, KY, Hosp Fac Rev Bonds (Murray-Calloway Cnty Pub Hosp Corp. Proj), Ser 2010, | | | | | | | | |
6.375%, 8–1–40 | | | 2,000 | | | | 2,217 | |
| | | | | | | | |
| | | | | | | 28,699 | |
| | | | | | | | |
| |
Louisiana – 1.4% | |
LA Local Govt Envirnmt Fac and Cmnty Dev Auth, Rev and Rfdg Bonds (CDF Hlthcare of LA LLC Proj), Ser 2015A, | | | | | | | | |
5.625%, 6–1–45 | | | 5,000 | | | | 5,266 | |
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj - Phase IIA), Ser 2014A, | | | | | | | | |
8.375%, 7–1–39 (C) | | | 13,500 | | | | 7,782 | |
LA Pub Fac Auth, Solid Waste Disp Fac Rev Bonds (LA Pellets, Inc. Proj), Ser 2013B, | | | | | | | | |
10.500%, 7–1–39 (C) | | | 6,000 | | | | 3,457 | |
Shreveport, LA, Water and Sewer Rev and Rfdg Bonds, Ser 2015, | | | | | | | | |
5.000%, 12–1–40 | | | 2,500 | | | | 2,935 | |
| | | | | | | | |
| | | | | | | 19,440 | |
| | | | | | | | |
| | | | | | |
| 104 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Maine – 0.2% | |
ME Hlth and Higher Edu Fac Auth, Rev Bonds (Eastn ME Med Ctr Oblig Group Issue), Ser 2013, | | | | | | | | |
5.000%, 7–1–43 | | $ | 2,000 | | | $ | 2,236 | |
| | | | | | | | |
| |
Maryland – 0.3% | |
MD Econ Dev Corp., Econ Dev Rev Bonds (Terminal Proj), Ser B, | | | | | | | | |
5.750%, 6–1–35 | | | 500 | | | | 557 | |
MD Econ Dev Corp., Port Fac Rfdg Rev Bonds (CNX Marine Terminals, Inc. Port of Baltimore Fac), Ser 2010, | | | | | | | | |
5.750%, 9–1–25 | | | 3,350 | | | | 3,412 | |
| | | | | | | | |
| | | | | | | 3,969 | |
| | | | | | | | |
| |
Massachusetts – 1.9% | |
MA Port Auth, Spl Fac Rev Bonds (Delta Air Lines, Inc. Proj), Ser 2001B (Auction Rate Sec) (Insured by AMBAC), | | | | | | | | |
1.484%, 1–1–31 (F) | | | 30,000 | | | | 26,400 | |
| | | | | | | | |
| |
Michigan – 4.9% | |
Detroit, MI, GO Bonds, Ser 2004-A (1) (Insured by AMBAC), | | | | | | | | |
5.250%, 4–1–23 | | | 220 | | | | 220 | |
Econ Dev Corp. of Oakland Cnty, Ltd. Oblig Rev Rfdg Bonds (The Roman Catholic Archdiocese of Detroit), Ser 2011, | | | | | | | | |
6.500%, 12–1–20 | | | 3,905 | | | | 4,120 | |
Kent Hosp, Fin Auth Rev Bonds (Metro Hosp Proj), Ser 2005A, | | | | | | | | |
6.250%, 7–1–40 | | | 15,500 | | | | 15,542 | |
MI Fin Auth, Hosp Rev and Rfdg Bonds (Presbyterian Vlg of MI), Ser 2015, | | | | | | | | |
5.250%, 11–15–35 | | | 3,000 | | | | 3,190 | |
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 | | | | 1,027 | |
7.450%, 10–1–41 | | | 2,000 | | | | 2,061 | |
MI Fin Auth, Pub Sch Academy Ltd. Oblig Rev Bonds (Hanley Intl Academy, Inc. Proj), Ser 2010A, | | | | | | | | |
6.125%, 9–1–40 | | | 4,535 | | | | 4,824 | |
MI Fin Auth, Rev Bonds (Sch Dist of Detroit), Ser 2012, | | | | | | | | |
5.000%, 6–1–20 | | | 1,425 | | | | 1,475 | |
MI Fin Auth, Sr Edu Fac Rev Bonds (St. Catherine of Siena Academy Proj), Ser 2010A, | | | | | | | | |
8.500%, 10–1–45 (C) | | | 13,000 | | | | 7,799 | |
MI Fin Auth, State Aid Rev Notes (Detroit Sch Dist), Ser 2001A-1, | | | | | | | | |
8.000%, 10–1–30 (C) | | | 2,480 | | | | 1,488 | |
MI Pub Edu Fac Auth, Ltd. Oblig Rev Bonds (Old Redford Academy Proj), Ser 2005A, | | | | | | | | |
5.875%, 12–1–30 | | | 1,720 | | | | 1,721 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Michigan (Continued) | |
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Ser 2008A, | | | | | | | | |
6.875%, 6–1–42 | | $ | 16,500 | | | $ | 16,979 | |
MI Tob Stlmt Fin Auth, Tob Stlmt Asset-Bkd Bonds, Sr Current Int Bonds, Ser 2007A, | | | | | | | | |
5.125%, 6–1–22 | | | 5,660 | | | | 5,611 | |
| | | | | | | | |
| | | | | | | 66,057 | |
| | | | | | | | |
| |
Minnesota – 0.4% | |
Minneapolis Hlth Care Sys Rev Bonds (Fairview Hlth Svc), Ser 2008B, | | | | | | | | |
6.500%, 11–15–38 | | | 4,350 | | | | 4,820 | |
| | | | | | | | |
| |
Missouri – 1.7% | |
Arnold, MO, Real Ppty Tax Incr Rev Bonds (Arnold Triangle Redev Proj), Ser 2009A, | | | | | | | | |
7.750%, 5–1–28 | | | 455 | | | | 478 | |
Belton, MO, Tax Incr Rev Bonds (Belton Marketplace Redev Proj), Ser 2012, | | | | | | | | |
6.375%, 12–1–29 | | | 1,240 | | | | 1,286 | |
Broadway-Fairview Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A, | | | | | | | | |
6.125%, 12–1–36 | | | 200 | | | | 161 | |
Grindstone Plaza Trans Dev Dist (Columbia, MO), Trans Sales Tax Rev Bonds, Ser 2006A: | | | | | | | | |
5.250%, 10–1–21 | | | 250 | | | | 249 | |
5.400%, 10–1–26 | | | 385 | | | | 376 | |
5.500%, 10–1–31 | | | 425 | | | | 406 | |
5.550%, 10–1–36 | | | 325 | | | | 304 | |
Jennings, MO, Tax Incr and Cmnty Impvt Rfdg Rev Bonds (Northland Redev Area Proj), Ser 2006, | | | | | | | | |
5.000%, 11–1–23 | | | 1,615 | | | | 1,599 | |
Lakeside 370 Levee Dist (St. Charles Cnty, MO), Levee Dist Impvt Bonds, Ser 2008: | | | | | | | | |
0.000%, 4–1–55 (D) | | | 988 | | | | 147 | |
5.750%, 4–1–55 | | | 715 | | | | 701 | |
Land Clearance for Redev Auth of St. Louis, Recovery Zone Fac Bonds (Kiel Opera House Proj), Ser 2010B, | | | | | | | | |
7.000%, 9–1–35 | | | 970 | | | | 1,016 | |
Lee’s Summit, MO, Tax Incr Rev Bonds (Summit Fair Proj), Ser 2011, | | | | | | | | |
7.250%, 4–1–30 | | | 5,000 | | | | 5,376 | |
Meadows Trans Dev Dist (Lake Saint Louis, MO), Ser 2010, | | | | | | | | |
5.400%, 5–1–35 | | | 790 | | | | 816 | |
MO Dev Fin Board, Research Fac Rev Bonds (Midwest Research Institute Proj), Ser 2007, | | | | | | | | |
4.500%, 11–1–27 | | | 225 | | | | 234 | |
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 (D) | | | 750 | | | | 377 | |
0.000%, 7–15–37 (D) | | | 1,500 | | | | 727 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Missouri (Continued) | |
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 | | | $ | 1,381 | |
The Elm Point Commons Cmnty Impvt Dist (St. Charles, MO), Spl Assmt Bonds, Ser 2007, | | | | | | | | |
5.750%, 3–1–27 | | | 105 | | | | 108 | |
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 | | | 1,035 | | | | 1,038 | |
6.500%, 1–1–35 | | | 3,000 | | | | 3,006 | |
The Indl Dev Auth of Lee’s Summit, MO, Infra Fac Rev Bonds (Kensington Farms Impvt Proj), Ser 2007, | | | | | | | | |
5.750%, 3–1–29 (C) | | | 1,000 | | | | 617 | |
The Indl Dev Auth of Platte Cnty, MO, Trans Rev Bonds (Zona Rosa Phase II Retail Proj), Ser 2007, | | | | | | | | |
6.850%, 4–1–29 | | | 200 | | | | 215 | |
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 | | | | 3,006 | |
| | | | | | | | |
| | | | | | | 23,624 | |
| | | | | | | | |
| |
Nebraska – 0.7% | |
Cent Plains Enrg Proj, Gas Proj Rev Bonds (Proj No. 3), Ser 2012: | | | | | | | | |
5.250%, 9–1–37 | | | 5,000 | | | | 5,788 | |
5.000%, 9–1–42 | | | 3,000 | | | | 3,412 | |
| | | | | | | | |
| | | | | | | 9,200 | |
| | | | | | | | |
| |
Nevada – 0.2% | |
Las Vegas Redev Agy, NV, Tax Incr Rev Bonds, Ser 2009A, | | | | | | | | |
8.000%, 6–15–30 | | | 1,500 | | | | 1,778 | |
Overton Power Dist No. 5 (NV), Spl Oblig Rev Bonds, Ser 2008, | | | | | | | | |
8.000%, 12–1–38 | | | 265 | | | | 305 | |
| | | | | | | | |
| | | | | | | 2,083 | |
| | | | | | | | |
| |
New Hampshire – 0.2% | |
NH Hlth and Edu Fac Auth, Rev Bonds, Rivermead Issue, Ser 2011A, | | | | | | | | |
6.875%, 7–1–41 | | | 2,300 | | | | 2,700 | |
| | | | | | | | |
| |
New Jersey – 2.1% | |
NJ Econ Dev Auth, Cigarette Tax Rev Rfdg Bonds, Ser 2012: | | | | | | | | |
5.000%, 6–15–26 | | | 1,000 | | | | 1,116 | |
5.000%, 6–15–28 | | | 1,000 | | | | 1,100 | |
5.000%, 6–15–29 | | | 500 | | | | 548 | |
NJ Econ Dev Auth, Spl Fac Rev Bonds (Continental Airlines, Inc. Proj), Ser 2000A, | | | | | | | | |
5.625%, 11–15–30 | | | 2,500 | | | | 2,899 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 105 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
New Jersey (Continued) | |
NJ Edu Fac Auth, Rev Rfdg Bonds, Univ of Medicine and Dentistry of NJ Issue, Ser 2009B: | | | | | | | | |
7.125%, 12–1–23 | | $ | 850 | | | $ | 987 | |
7.500%, 12–1–32 | | | 450 | | | | 527 | |
NJ Hlth Care Fac Fin Auth, Rev and Rfdg Bonds (Univ Hosp Issue), Ser 2015A, | | | | | | | | |
5.000%, 7–1–46 | | | 2,355 | | | | 2,736 | |
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A Sr Current Int Bonds, | | | | | | | | |
4.750%, 6–1–34 | | | 5,000 | | | | 4,819 | |
Tob Stlmt Fin Corp., Tob Stlmt Asset-Bkd Bonds, Ser 2007-1A, | | | | | | | | |
5.000%, 6–1–41 | | | 13,750 | | | | 13,386 | |
| | | | | | | | |
| | | | | | | 28,118 | |
| | | | | | | | |
| |
New Mexico – 0.2% | |
NM Hosp Equip Loan Council, Hosp Impvt and Rfdg Rev Bonds (Gerald Champion Rgnl Med Ctr Proj), Ser 2012A, | | | | | | | | |
5.500%, 7–1–42 | | | 2,750 | | | | 3,065 | |
| | | | | | | | |
| |
New York – 6.3% | |
Brooklyn Arena Local Dev Corp., PILOT Rev Rfdg Bonds (Barclays Ctr), Ser 2016A (Insured by AGM), | | | | | | | | |
5.000%, 7–15–42 | | | 2,000 | | | | 2,373 | |
Build NYC Res Corp., Rev Bonds (Albert Einstein Sch of Medicine, Inc. Proj), Ser 2015, | | | | | | | | |
5.500%, 9–1–45 | | | 2,400 | | | | 2,866 | |
Dormitory Auth, Sch Dist Rev Bond Fin Prog, Ser 2010A (Insured by AGM), | | | | | | | | |
5.000%, 10–1–22 | | | 1,000 | | | | 1,150 | |
MTA Hudson Rail Yards Trust Oblig, Ser 2016A, | | | | | | | | |
5.000%, 11–15–56 | | | 5,000 | | | | 5,771 | |
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A2, | | | | | | | | |
6.500%, 1–1–32 | | | 5,269 | | | | 5,341 | |
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A4, | | | | | | | | |
6.700%, 1–1–49 | | | 9,000 | | | | 9,039 | |
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014A5, | | | | | | | | |
6.700%, 1–1–49 | | | 2,179 | | | | 2,190 | |
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014B, | | | | | | | | |
5.500%, 7–1–20 | | | 3,768 | | | | 3,790 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
New York (Continued) | |
Nassau Cnty Indl Dev Agy, Continuing Care Ret Cmnty Rev Bonds (Amsterdam at Harborside Proj), Ser 2014C, | | | | | | | | |
2.000%, 1–1–49 | | $ | 7,730 | | | $ | 966 | |
Nassau Cnty Tob Stlmnt Corp., Tob Stlmnt Asset-Bkd Bonds, Ser 2006A-3 Sr Current Int Bonds, | | | | | | | | |
5.125%, 6–1–46 | | | 7,000 | | | | 6,925 | |
NY Liberty Dev Corp., Rev Bonds (3 World Trade Center Proj), Ser 2014, | | | | | | | | |
5.000%, 11–15–44 | | | 25,000 | | | | 28,871 | |
The Orange Co. Funding Corp. (NY), Assisted Living Residence Rev Bonds (The Hamlet at Wallkill Assisted Living Proj), Ser 2012, | | | | | | | | |
6.500%, 1–1–46 | | | 11,500 | | | | 11,825 | |
TSASC, Inc., Tob Stlmt Asset-Bkd Bonds, Ser 2006-1, | | | | | | | | |
5.000%, 6–1–34 | | | 5,000 | | | | 5,006 | |
| | | | | | | | |
| | | | | | | 86,113 | |
| | | | | | | | |
| |
North Carolina – 0.1% | |
NC Med Care Comsn, Ret Fac First Mtg Rev Bonds (Galloway Ridge Proj), Ser 2010A, | | | | | | | | |
6.000%, 1–1–39 | | | 1,520 | | | | 1,637 | |
| | | | | | | | |
| |
Ohio – 1.4% | |
Cleveland-Cuyahoga Cnty Port Auth, Dev Rev Bonds (Flats East Dev Proj), Ser 2010B, | | | | | | | | |
7.000%, 5–15–40 | | | 2,530 | | | | 2,881 | |
Cnty of Muskingum, OH, Hosp Fac Rev Bonds (Genesis Hlth Care Sys Oblig Group Proj), Ser 2013, | | | | | | | | |
5.000%, 2–15–48 | | | 8,000 | | | | 8,642 | |
Columbus-Franklin Cnty Fin Auth, Dev Rev Bonds (Cent OH Rgnl Bond Fund), (One Neighborhood Proj), Ser 2010A, | | | | | | | | |
6.500%, 11–15–39 | | | 1,225 | | | | 1,264 | |
Greene Cnty Port Auth, Adult Svc Fac Rev Bonds (Greene, Inc. Proj), Ser 2009, | | | | | | | | |
7.500%, 12–1–33 | | | 500 | | | | 587 | |
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 | | | | 4,286 | |
Toledo-Lucas Cnty Port Auth, Dev Rev Bonds (Toledo Sch for the Arts Proj), Ser 2007B, | | | | | | | | |
5.500%, 5–15–28 | | | 795 | | | | 820 | |
| | | | | | | | |
| | | | | | | 18,480 | |
| | | | | | | | |
| |
Oklahoma – 0.7% | |
OK Cnty Fin Auth, Ret Fac Rev Bonds (Concordia Life Care Cmnty), Ser 2005: | | | | | | | | |
6.125%, 11–15–25 | | | 2,000 | | | | 2,004 | |
6.000%, 11–15–38 | | | 7,495 | | | | 7,502 | |
| | | | | | | | |
| | | | | | | 9,506 | |
| | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Oregon – 0.9% | |
Hosp Fac Auth of Deschutes Cnty, OR, Hosp Rev Rfdg Bonds (Cascade Hlthcare Cmnty, Inc.), Ser 2008, | | | | | | | | |
8.250%, 1–1–38 | | $ | 1,240 | | | $ | 1,443 | |
Hosp Fac Auth of Salem, OR, Rev Rfdg Bonds (Cap Manor, Inc.), Ser 2012, | | | | | | | | |
6.000%, 5–15–42 | | | 1,900 | | | | 2,137 | |
OR Fac Auth, Rev Bonds (Concordia Univ Proj), Ser 2010A: | | | | | | | | |
6.125%, 9–1–30 | | | 900 | | | | 973 | |
6.375%, 9–1–40 | | | 1,750 | | | | 1,900 | |
Port of Portland, OR, Portland Intl Arpt Passenger Fac Charge Rev Bonds, Ser 2011A, | | | | | | | | |
5.500%, 7–1–30 | | | 5,180 | | | | 6,034 | |
| | | | | | | | |
| | | | | | | 12,487 | |
| | | | | | | | |
| |
Pennsylvania – 5.2% | |
Butler Cnty Hosp Auth, Hosp Rev Bonds (Butler Hlth Sys Proj), Ser 2009B, | | | | | | | | |
7.250%, 7–1–39 | | | 200 | | | | 234 | |
Cumberland Cnty Muni Auth, Rfdg Rev Bonds (Asbury PA Oblig Group), Ser 2010, | | | | | | | | |
6.125%, 1–1–45 | | | 5,000 | | | | 5,378 | |
Delaware Cnty Indl Dev Auth, Charter Sch Rev Bonds (Chester Cmnty Charter Sch Proj), Ser 2010A, | | | | | | | | |
6.125%, 8–15–40 | | | 14,500 | | | | 14,612 | |
PA Higher Edu Fac Auth, Rev Bonds (Edinboro Univ Fndtn Student Hsng Proj at Edinboro Univ of PA), Ser 2010, | | | | | | | | |
6.000%, 7–1–43 | | | 2,530 | | | | 2,993 | |
PA Higher Edu Fac Auth, Student Hsng Rev Bonds (Univ Ppty, Inc. Student Hsng Proj at East Stroudsburg Univ of PA), Ser 2010, | | | | | | | | |
6.000%, 7–1–21 | | | 1,000 | | | | 1,122 | |
PA Tpk Comsn, Tpk Sub Rev Bonds, Ser 2009E, | | | | | | | | |
0.000%, 12–1–38 (D) | | | 18,000 | | | | 22,568 | |
Philadelphia Auth Indl Dev, Rev Bonds (Global Leadership Academy Charter Sch Proj), Ser 2010, | | | | | | | | |
6.375%, 11–15–40 | | | 1,000 | | | | 1,100 | |
Philadelphia Auth Indl Dev, Rev Bonds (Mariana Bracetti Academy Charter Sch Proj), Ser 2011: | | | | | | | | |
7.150%, 12–15–36 | | | 6,000 | | | | 6,740 | |
7.625%, 12–15–41 | | | 6,925 | | | | 7,960 | |
Philadelphia Auth Indl Dev, Rev Bonds (New Foundations Charter Sch Proj), Ser 2012, | | | | | | | | |
6.625%, 12–15–41 | | | 3,500 | | | | 3,982 | |
Philadelphia, PA, Gas Works Rev Bonds (1998 Gen Ordinace), Ninth Ser: | | | | | | | | |
5.250%, 8–1–40 | | | 1,250 | | | | 1,426 | |
| | | | | | |
| 106 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Pennsylvania (Continued) | |
Scranton-Lackawanna Hlth and Welfare Auth, Univ Rev Bonds (Marywood Univ Proj), Ser 2016, | | | | | | | | |
5.000%, 6–1–46 | | $ | 2,265 | | | $ | 2,427 | |
The Borough of Langhorne Manor, Higher Edu and Hlth Auth (Bucks Cnty, PA), Hosp Rev Bonds (Lower Bucks Hosp), Ser 1992, | | | | | | | | |
7.300%, 7–1–12 (C) | | | 70 | | | | 17 | |
| | | | | | | | |
| | | | | | | 70,559 | |
| | | | | | | | |
| |
Puerto Rico – 4.2% | |
Cmnwlth of PR, GO Bonds of 2014, Ser A, | | | | | | | | |
8.000%, 7–1–35 (C) | | | 11,000 | | | | 7,205 | |
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2011C, | | | | | | | | |
6.500%, 7–1–40 (C) | | | 3,000 | | | | 1,890 | |
Cmnwlth of PR, Pub Impvt Rfdg GO Bonds, Ser 2012A: | | | | | | | | |
5.750%, 7–1–28 (C) | | | 3,000 | | | | 1,881 | |
5.500%, 7–1–39 (C) | | | 5,000 | | | | 3,175 | |
PR Aqueduct and Sewer Auth, Rev Bonds, Ser 2012A (Sr Lien), | | | | | | | | |
5.250%, 7–1–24 | | | 9,000 | | | | 6,968 | |
PR Aqueduct and Sewer Auth, Rev Bonds, Ser A, | | | | | | | | |
6.000%, 7–1–47 | | | 12,000 | | | | 9,266 | |
PR Elec Power Auth, Power Rev Bonds, Ser 2010XX, | | | | | | | | |
5.750%, 7–1–36 | | | 2,415 | | | | 1,627 | |
PR Elec Power Auth, Power Rev Bonds, Ser 2012A, | | | | | | | | |
5.000%, 7–1–42 | | | 5,000 | | | | 3,370 | |
PR Elec Power Auth, Power Rev Bonds, Ser 2013A, | | | | | | | | |
7.000%, 7–1–43 | | | 14,000 | | | | 9,517 | |
PR Pub Bldg Auth, Govt Fac Rev Rfdg Bonds, Ser U, | | | | | | | | |
5.250%, 7–1–42 (C) | | | 8,755 | | | | 5,001 | |
PR Pub Fin Corp. (Cmnwlth Approp Bonds), 2011 Ser B: | | | | | | | | |
6.000%, 8–1–25 (C) | | | 5,025 | | | | 488 | |
6.000%, 8–1–26 (C) | | | 1,000 | | | | 97 | |
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2009A, | | | | | | | | |
6.375%, 8–1–39 | | | 5,500 | | | | 2,962 | |
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010A, | | | | | | | | |
5.375%, 8–1–39 | | | 5,000 | | | | 2,632 | |
PR Sales Tax Fin Corp., Sales Tax Rev Bonds, First Sub Ser 2010C, | | | | | | | | |
6.500%, 8–1–35 | | | 1,000 | | | | 561 | |
| | | | | | | | |
| | | | | | | 56,640 | |
| | | | | | | | |
| |
South Carolina – 0.1% | |
Piedmont Muni Pwr Agy, SC, Elec Rev Rfdg Bonds, Ser 2008C, | | | | | | | | |
5.750%, 1–1–34 | | | 1,550 | | | | 1,834 | |
| | | | | | | | |
| |
Tennessee – 0.2% | |
Metro Nashville Arpt Auth, Arpt Impvt Rev Bonds, Ser 2015A, | | | | | | | | |
5.000%, 7–1–40 | | | 2,000 | | | | 2,394 | |
| | | | | | | | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Texas – 14.5% | |
Arlington, TX, Higher Edu Fin Corp., Edu Rev Bonds (Wayside Sch), Ser 2016A, | | | | | | | | |
4.375%, 8–15–36 | | $ | 640 | | | $ | 650 | |
Cap Area Cultural Edu Fac Fin Corp., Rev Bonds (The Roman Catholic Diocese of Austin), Ser 2005B, | | | | | | | | |
6.125%, 4–1–45 | | | 3,150 | | | | 3,586 | |
Cass Cnty Indl Dev Corp., Envirnmt Impvt Rev Bonds, Ser 2009A, | | | | | | | | |
9.500%, 3–1–33 | | | 500 | | | | 595 | |
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2010: | | | | | | | | |
0.000%, 1–1–36 (D) | | | 500 | | | | 248 | |
0.000%, 1–1–40 (D) | | | 500 | | | | 211 | |
Cent TX Rgnl Mobility Auth, Sr Lien Rev Bonds, Ser 2015A, | | | | | | | | |
5.000%, 1–1–45 | | | 4,000 | | | | 4,635 | |
Cent TX Rgnl Mobility Auth, Sub Lien Rev Rfdg Bonds, Ser 2013: | | | | | | | | |
5.000%, 1–1–33 | | | 6,000 | | | | 6,770 | |
5.000%, 1–1–42 | | | 3,000 | | | | 3,322 | |
Dallas/Fort Worth Intl Arpt, Joint Rev Impvt Bonds, Ser 2013A, | | | | | | | | |
5.000%, 11–1–45 | | | 8,000 | | | | 8,867 | |
Grand Prkwy Trans Corp., First Tier Toll Rev Bonds, Ser 2013A, | | | | | | | | |
5.500%, 4–1–53 | | | 10,000 | | | | 11,521 | |
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 | | | 120 | | | | 132 | |
9.000%, 9–1–38 | | | 1,245 | | | | 1,364 | |
Harris Cnty Cultural Edu Fac Fin Corp., Rev Rfdg Bonds (Space Ctr Houston Proj), Sr Ser 2009, | | | | | | | | |
7.000%, 8–15–28 | | | 500 | | | | 542 | |
Hopkins Cnty Hosp Dist, Hosp Rev Bonds, Ser 2008: | | | | | | | | |
6.000%, 2–15–33 | | | 2,000 | | | | 2,072 | |
6.000%, 2–15–38 | | | 250 | | | | 259 | |
Houston Higher Edu Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2011A, | | | | | | | | |
6.875%, 5–15–41 | | | 3,800 | | | | 4,803 | |
Houston, TX, Arpt Sys Spec Fac Rev Rfdg Bonds (United Airlines, Inc. Arpt Impvt Proj), Ser 2015C, | | | | | | | | |
5.000%, 7–15–20 | | | 10,000 | | | | 11,059 | |
Houston, TX, Arpt Sys, Sub Lien Rev Rfdg Bonds, Ser 2011B: | | | | | | | | |
5.000%, 7–1–25 | | | 1,000 | | | | 1,165 | |
5.000%, 7–1–26 | | | 2,680 | | | | 3,123 | |
La Vernia Higher Edu Fin Corp. (KIPP, Inc.), Ser 2009A, | | | | | | | | |
6.375%, 8–15–44 | | | 2,000 | | | | 2,304 | |
La Vernia Higher Edu Fin Corp. (Winfree Academy Charter Sch), Edu Rev Bonds, Ser 2009, | | | | | | | | |
9.000%, 8–15–38 | | | 2,425 | | | | 2,686 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Texas (Continued) | |
Mission Econ Dev Corp., Solid Waste Disp Rev Bonds (Dallas Clean Enrg McCommas Bluff LLC Proj), Ser 2011, | | | | | | | | |
6.875%, 12–1–24 | | $ | 2,540 | | | $ | 2,621 | |
New Hope Cultural Edu Fac Fin Corp., TX Ret Fac Rev Bonds (Carillon Lifecare Cmnty Proj), Ser 2016: | | | | | | | | |
5.000%, 7–1–36 | | | 1,250 | | | | 1,314 | |
5.000%, 7–1–46 | | | 2,000 | | | | 2,084 | |
North TX Twy Auth, Spl Proj Sys Rev Bonds Convertible Cap Apprec Bonds, Ser 2011C, | | | | | | | | |
0.000%, 9–1–43 (D) | | | 11,000 | | | | 11,900 | |
Pharr, TX, Higher Edu Fin Auth, Edu Rev Bonds (Idea Pub Sch), Ser 2009A: | | | | | | | | |
6.250%, 8–15–29 | | | 350 | | | | 390 | |
6.500%, 8–15–39 | | | 200 | | | | 228 | |
Sanger, TX, Indl Dev Corp., Indl Dev Rev Bonds (TX Pellets Proj), Ser 2012B, | | | | | | | | |
8.000%, 7–1–38 | | | 12,870 | | | | 11,196 | |
Tarrant Cnty Cultural Edu Fac Fin Corp. Ret Fac Rev Bonds (Air Force Vig Oblig Group Proj), Ser 2016, | | | | | | | | |
5.000%, 5–15–45 (E) | | | 4,000 | | | | 4,385 | |
Tarrant Cnty Cultural Edu Fac Fin Corp., Charter Sch Rev Bonds (Trinity Basin Preparatory Proj), Ser 2009A, | | | | | | | | |
7.750%, 6–1–39 | | | 155 | | | | 183 | |
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Buckingham Sr Living Cmnty Proj), Ser 2015B-1, | | | | | | | | |
4.500%, 11–15–21 | | | 6,000 | | | | 6,052 | |
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 | | | | 2,062 | |
5.625%, 11–15–27 | | | 250 | | | | 257 | |
5.750%, 11–15–37 | | | 6,840 | | | | 6,985 | |
Tarrant Cnty Cultural Edu Fac Fin Corp., Ret Fac Rev Bonds (Mirador Proj), Ser 2010A: | | | | | | | | |
8.000%, 11–15–29 | | | 2,500 | | | | 2,131 | |
8.125%, 11–15–39 | | | 5,000 | | | | 4,265 | |
TX Muni Gas Acquisition and Supply Corp. III, Gas Supply Rev Bonds, Ser 2012, | | | | | | | | |
5.000%, 12–15–32 | | | 3,000 | | | | 3,401 | |
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 | | | | 2,429 | |
7.500%, 6–30–33 | | | 2,700 | | | | 3,283 | |
7.000%, 6–30–40 | | | 13,430 | | | | 16,066 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 107 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (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, | | | | | | | | |
6.875%, 12–31–39 | | $ | 12,975 | | | $ | 15,260 | |
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Cosmos Fndtn, Inc.), Ser 2010A, | | | | | | | | |
6.200%, 2–15–40 | | | 10,000 | | | | 11,721 | |
TX Pub Fin Auth Charter Sch Fin Corp., Edu Rev Bonds (Odyssey Academy, Inc.), Ser 2010A, | | | | | | | | |
7.125%, 2–15–40 | | | 2,000 | | | | 2,408 | |
TX Trans Comsn, Cent TX Tpk Sys First Tier Rev Rfdg Bonds, Ser 2012-A, | | | | | | | | |
5.000%, 8–15–41 | | | 10,000 | | | | 11,517 | |
Wise Cnty, TX, Lease Rev Bonds (Parker Cnty Jr College Dist Proj), Ser 2011, | | | | | | | | |
8.000%, 8–15–34 | | | 5,000 | | | | 6,001 | |
| | | | | | | | |
| | | | | | | 198,053 | |
| | | | | | | | |
| |
Utah – 0.4% | |
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Davis Preparatory Academy), Ser 2010, | | | | | | | | |
6.250%, 7–15–30 | | | 1,015 | | | | 1,113 | |
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (North Star Academy Proj), Ser 2010B, | | | | | | | | |
7.000%, 7–15–45 | | | 2,100 | | | | 2,350 | |
UT State Charter Sch Fin Auth, Charter Sch Rev Bonds (Paradigm High Sch), Ser 2010, | | | | | | | | |
6.375%, 7–15–40 | | | 2,160 | | | | 2,319 | |
| | | | | | | | |
| | | | | | | 5,782 | |
| | | | | | | | |
| |
Virgin Islands – 0.7% | |
VI Pub Fin Auth, Rev Bonds (VI Matching Fund Loan Note), Ser 2010A, | | | | | | | | |
5.000%, 10–1–25 | | | 3,330 | | | | 3,328 | |
VI Pub Fin Auth, Sub Rev Bonds (VI Matching Fund Loan Note - Diageo Proj), Ser 2009A: | | | | | | | | |
6.625%, 10–1–29 | | | 3,135 | | | | 3,247 | |
6.750%, 10–1–37 | | | 3,000 | | | | 3,118 | |
| | | | | | | | |
| | | | | | | 9,693 | |
| | | | | | | | |
| |
Virginia – 2.0% | |
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 | | | | 3,037 | |
2.000%, 10–1–48 | | | 983 | | | | 46 | |
Indl Dev Auth of Smyth Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009A, | | | | | | | | |
8.000%, 7–1–38 | | | 450 | | | | 511 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Virginia (Continued) | |
Indl Dev Auth of Washington Cnty, VA, Hosp Rev Bonds (Mountain States Hlth Alliance), Ser 2009C: | | | | | | | | |
7.250%, 7–1–19 | | $ | 365 | | | $ | 398 | |
7.500%, 7–1–29 | | | 25 | | | | 28 | |
Mosaic Dist Cmnty Dev Auth, Fairfax Cnty, VA, Rev Bonds, Ser 2011A, | | | | | | | | |
6.875%, 3–1–36 | | | 4,300 | | | | 4,948 | |
Norfolk Redev and Hsng Auth, Multifam Rental Hsng Fac Rev Bonds (1016 L.P. - Sussex Apt Proj), Ser 1996, | | | | | | | | |
8.000%, 9–1–26 | | | 350 | | | | 350 | |
VA Small Business Fin Auth, Sr Lien Rev Bonds (Elizabeth River Crossing Opco LLC Proj), Ser 2012: | | | | | | | | |
6.000%, 1–1–37 | | | 8,000 | | | | 9,573 | |
5.500%, 1–1–42 | | | 7,500 | | | | 8,668 | |
| | | | | | | | |
| | | | | | | 27,559 | |
| | | | | | | | |
| |
Washington – 1.6% | |
Indl Dev Corp of the Port of Seattle, Spl Fac Rev Rfdg Bonds (Delta Air Lines, Inc. Proj), Ser 2012, | | | | | | | | |
5.000%, 4–1–30 | | | 4,000 | | | | 4,335 | |
Port of Sunnyside, Yakima Cnty, WA, Rev Bonds (Indl Wastewater Treatment Sys), Ser 2008, | | | | | | | | |
6.625%, 12–1–21 | | | 1,775 | | | | 1,889 | |
WA Hlth Care Fac Auth, Rev Bonds (Cent WA Hlth Svcs Assoc), Ser 2009: | | | | | | | | |
6.250%, 7–1–24 | | | 795 | | | | 903 | |
7.000%, 7–1–31 | | | 1,680 | | | | 1,959 | |
7.000%, 7–1–39 | | | 2,000 | | | | 2,333 | |
WA Hlth Care Fac Auth, Rev Bonds (Seattle Cancer Care Alliance), Ser 2008, | | | | | | | | |
7.375%, 3–1–38 | | | 250 | | | | 288 | |
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 | | | | 9,604 | |
| | | | | | | | |
| | | | | | | 21,311 | |
| | | | | | | | |
| |
West Virginia – 0.3% | |
Brooke Cnty, WV, Rev Bonds (Bethany College), Ser 2011A, | | | | | | | | |
6.750%, 10–1–37 | | | 4,000 | | | | 4,457 | |
| | | | | | | | |
| |
Wisconsin – 2.6% | |
Pub Fin Auth, Edu Rev Bonds (NC Charter Edu Fndtn Proj), Ser 2016A, | | | | | | | | |
5.000%, 6–15–46 | | | 6,000 | | | | 6,019 | |
Pub Fin Auth, Sr Arpt Fac Rev and Rfdg Bonds (TrIps Obligated Group), Ser 2012B, | | | | | | | | |
5.000%, 7–1–42 | | | 5,000 | | | | 5,367 | |
WI Hlth and Edu Fac Auth, Rev Bonds (Beloit College), Ser 2010A: | | | | | | | | |
6.125%, 6–1–35 | | | 1,220 | | | | 1,444 | |
6.125%, 6–1–39 | | | 250 | | | | 296 | |
| | | | | | | | |
| MUNICIPAL BONDS (Continued) | | Principal | | | Value | |
Wisconsin (Continued) | |
WI Hlth and Edu Fac Auth, Rev Bonds (Saint John’s Cmnty, Inc.), Ser 2009: | | | | | | | | |
7.250%, 9–15–29 | | $ | 2,180 | | | $ | 2,543 | |
7.625%, 9–15–39 | | | 5,500 | | | | 6,538 | |
WI Hlth and Edu Fac Auth, Rev Bonds (Woodland Hills Sr Hsng Proj), Ser 2014, | | | | | | | | |
5.000%, 12–1–44 | | | 4,000 | | | | 4,211 | |
WI Pub Fin Auth, Edu Rev Bonds (Cornerstone Charter Academy Proj), Ser 2016A, | | | | | | | | |
5.125%, 2–1–46 | | | 4,000 | | | | 4,095 | |
WI Pub Fin Auth, Edu Rev Bonds (Triad Edu Svc), Ser 2015A, | | | | | | | | |
5.500%, 6–15–45 | | | 4,000 | | | | 4,188 | |
| | | | | | | | |
| | | | | | | 34,701 | |
| | | | | | | | |
| |
TOTAL MUNICIPAL BONDS – 95.5% | | | $ | 1,299,100 | |
(Cost: $1,239,444) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | | | | | |
Commercial Paper (G) – 0.5% | |
Clorox Co. (The), | | | | | | | | |
0.770%, 10–13–16 | | | 2,500 | | | | 2,499 | |
Medtronic Global Holdings SCA, | | | | | | | | |
0.740%, 11–14–16 | | | 5,000 | | | | 4,995 | |
| | | | | | | | |
| | | | | | | 7,494 | |
| | | | | | | | |
| |
Master Note – 0.1% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (H) | | | 721 | | | | 721 | |
| | | | | | | | |
| |
Municipal Obligations – 1.9% | |
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2005 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–7–16 (H) | | | 700 | | | | 700 | |
Columbus Rgnl Arpt Auth, Cap Funding Rev Bonds (OASBO Expanded Asset Pooled Fin Prog), Sr Ser 2006 (GTD by U.S. Bank N.A.), | | | | | | | | |
0.850%, 10–7–16 (H) | | | 1,400 | | | | 1,400 | |
Dev Auth of Monroe Cnty, Pollutn Ctl Rev Bonds (GA Power Co. Plant Scherer Proj), First Ser 2008 (GTD by Georgia Power Co.), | | | | | | | | |
0.930%, 10–1–16 (H) | | | 2,475 | | | | 2,475 | |
Harris Cnty Hosp Dist, Sr Lien Rfdg Rev Bonds, Ser 2010 (GTD by JPMorgan Chase & Co.), | | | | | | | | |
0.850%, 10–7–16 (H) | | | 3,600 | | | | 3,600 | |
MN Office of Higher Edu, Adj Rate Supplemental Student Loan Prog Rev Bonds, Ser 2008B (Tax-Exempt), (GTD by U.S. Bank N.A.), | | | | | | | | |
0.860%, 10–7–16 (H) | | | 1,300 | | | | 1,300 | |
| | | | | | |
| 108 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY MUNICIPAL HIGH INCOME FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Municipal Obligations (Continued) | |
Muni Elec Auth GA, Gen Resolution Proj Bond Anticipation Notes, Ser A (Taxable), (GTD by Wells Fargo Bank N.A.), | | | | | | | | |
0.770%, 10–7–16 | | $ | 2,520 | | | $ | 2,520 | |
NY Hsng Fin Agy, Hsng Rev Bonds, Ser 2016A (GTD by JPMorgan Chase Bank N.A.), | | | | | | | | |
0.840%, 10–7–16 (H) | | | 2,000 | | | | 2,000 | |
NY Hsng Fin Agy, Riverside Ctr 2 Hsng Rev Bonds, Ser 2012A (GTD by Bank of America N.A.), | | | | | | | | |
0.840%, 10–7–16 (H) | | | 6,000 | | | | 6,000 | |
NY Metro Trans Auth, Trans Rev Var Rate Bonds, Ser 2005E-3 (GTD by Bank of Montreal), | | | | | | | | |
0.860%, 10–7–16 (H) | | | 4,000 | | | | 4,000 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Municipal Obligations (Continued) | |
Tuscaloosa Cnty Indl Dev Auth, Gulf Opp Zone Bonds (Hunt Refining Proj), Ser 2011I (GTD by Bank of Nova Scotia), | | | | | | | | |
0.840%, 10–7–16 (H) | | $ | 2,000 | | | $ | 2,000 | |
| | | | | | | | |
| | | | | | | 25,995 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 2.5% | | | $ | 34,210 | |
(Cost: $34,211) | |
| |
TOTAL INVESTMENT
SECURITIES – 98.3% | | | $ | 1,337,915 | |
(Cost: $1,277,709) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.7% (I) | | | | 22,679 | |
| | |
NET ASSETS – 100.0% | | | | | | $ | 1,360,594 | |
Notes to Schedule of Investments
| (A) | Deemed to be an affiliate due to the Fund owning at least 5% of the voting securities. |
| (B) | Payment-in-kind bonds. |
| (C) | Non-income producing as the issuer has either missed its most recent interest payment or declared bankruptcy. |
| (E) | Purchased on a when-issued basis with settlement subsequent to September 30, 2016. |
| (F) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. |
| (G) | Rate shown is the yield to maturity at September 30, 2016. |
| (H) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
| (I) | Cash of $998 has been pledged as collateral on open futures contracts. |
The following futures contracts were outstanding at September 30, 2016 (contracts unrounded):
| | | | | | | | | | | | | | |
| Description | | Type | | Expiration Date | | Number of Contracts | | Value | | | Unrealized
Appreciation | |
| U.S. Treasury Long Bond | | Short | | 12-30-16 | | 242 | | $ | (40,694 | ) | | $ | 637 | |
| | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | — | | | $ | 1,250 | | | $ | — | |
Corporate Debt Securities | | | — | | | | 3,355 | | | | — | |
Municipal Bonds | | | — | | | | 1,299,100 | | | | — | |
Short-Term Securities | | | — | | | | 34,210 | | | | — | |
Total | | $ | — | | | $ | 1,337,915 | | | $ | — | |
Futures Contracts | | $ | 637 | | | $ | — | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
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.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 109 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY SMALL CAP GROWTH FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 93.3% | |
Information Technology | | | 32.6% | |
Health Care | | | 19.1% | |
Consumer Discretionary | | | 17.9% | |
Industrials | | | 8.6% | |
Financials | | | 5.3% | |
Energy | | | 4.7% | |
Real Estate | | | 1.9% | |
Materials | | | 1.8% | |
Consumer Staples | | | 1.4% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 6.7% | |
Lipper Rankings
| | | | | | |
Category: Lipper Small-Cap Growth
Funds | | Rank | | Percentile | |
1 Year | | 204/563 | | | 37 | |
3 Year | | 196/502 | | | 39 | |
5 Year | | 236/446 | | | 53 | |
10 Year | | 46/317 | | | 15 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
| | | | |
| Company | | Sector | | Industry |
Ultimate Software Group, Inc. (The) | | Information Technology | | Application Software |
Vail Resorts, Inc. | | Consumer Discretionary | | Leisure Facilities |
Watsco, Inc. | | Industrials | | Trading Companies & Distributors |
AMN Healthcare Services, Inc. | | Health Care | | Health Care Services |
SVB Financial Group | | Financials | | Regional Banks |
Pool Corp. | | Consumer Discretionary | | Distributors |
Booz Allen Hamilton Holding Corp. | | Information Technology | | IT Consulting & Other Services |
Paycom Software, Inc. | | Information Technology | | Application Software |
Nevro Corp. | | Health Care | | Health Care Equipment |
DexCom, Inc. | | Health Care | | Health Care Equipment |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 110 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SMALL CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Apparel Retail – 1.2% | |
Burlington Stores, Inc. (A) | | | 143 | | | $ | 11,553 | |
| | | | | | | | |
| |
Apparel, Accessories & Luxury Goods – 0.7% | |
Oxford Industries, Inc. | | | 107 | | | | 7,238 | |
| | | | | | | | |
| |
Automotive Retail – 1.4% | |
Monro Muffler Brake, Inc. | | | 214 | | | | 13,109 | |
| | | | | | | | |
| |
Broadcasting – 0.3% | |
Townsquare Media, Inc. (A) | | | 289 | | | | 2,703 | |
| | | | | | | | |
| |
Casinos & Gaming – 0.9% | |
Penn National Gaming, Inc. (A) | | | 618 | | | | 8,385 | |
| | | | | | | | |
| |
Distributors – 3.8% | |
Core-Mark Holding Co., Inc. | | | 404 | | | | 14,463 | |
Pool Corp. | | | 235 | | | | 22,184 | |
| | | | | | | | |
| | | | | | | 36,647 | |
| | | | | | | | |
| |
General Merchandise Stores – 1.0% | |
Ollie’s Bargain Outlet Holdings, Inc. (A) | | | 383 | | | | 10,041 | |
| | | | | | | | |
| |
Homebuilding – 1.0% | |
Installed Building Products, Inc. (A) | | | 279 | | | | 9,997 | |
| | | | | | | | |
| |
Leisure Facilities – 3.4% | |
Vail Resorts, Inc. | | | 212 | | | | 33,204 | |
| | | | | | | | |
| |
Restaurants – 3.3% | |
Dave & Buster’s Entertainment, Inc. (A) | | | 443 | | | | 17,339 | |
Texas Roadhouse, Inc.,
Class A | | | 371 | | | | 14,473 | |
| | | | | | | | |
| | | | | | | 31,812 | |
| | | | | | | | |
| |
Specialty Stores – 0.9% | |
Party City Holdco, Inc. (A) | | | 515 | | | | 8,813 | |
| | | | | | | | |
| |
Total Consumer
Discretionary – 17.9% | | | | 173,502 | |
Consumer Staples | |
| |
Packaged Foods & Meats – 1.4% | |
Lance, Inc. | | | 420 | | | | 14,087 | |
| | | | | | | | |
| |
Total Consumer Staples – 1.4% | | | | 14,087 | |
Energy | |
| |
Oil & Gas Drilling – 0.4% | |
Patterson-UTI Energy, Inc. | | | 155 | | | | 3,458 | |
| | | | | | | | |
| |
Oil & Gas Equipment & Services – 0.4% | |
Superior Energy Services, Inc. | | | 219 | | | | 3,913 | |
| | | | | | | | |
| |
Oil & Gas Exploration & Production – 3.9% | |
Matador Resources Co. (A) | | | 343 | | | | 8,346 | |
Parsley Energy, Inc.,
Class A (A) | | | 232 | | | | 7,764 | |
Petroleum Development Corp. (A) | | | 126 | | | | 8,416 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Oil & Gas Exploration & Production (Continued) | |
RSP Permian, Inc. (A) | | | 210 | | | $ | 8,129 | |
Viper Energy Partners L.P. | | | 341 | | | | 5,512 | |
| | | | | | | | |
| | | | | | | 38,167 | |
| | | | | | | | |
| |
Total Energy – 4.7% | | | | 45,538 | |
Financials | |
| |
Asset Management & Custody Banks – 0.4% | |
Janus Capital Group, Inc. | | | 81 | | | | 1,129 | |
WisdomTree Investment, Inc. | | | 286 | | | | 2,938 | |
| | | | | | | | |
| | | | | | | 4,067 | |
| | | | | | | | |
| |
Regional Banks – 4.9% | |
Ameris Bancorp | | | 111 | | | | 3,890 | |
Cathay General Bancorp | | | 119 | | | | 3,647 | |
Home BancShares, Inc. | | | 680 | | | | 14,152 | |
SVB Financial Group (A) | | | 230 | | | | 25,409 | |
| | | | | | | | |
| | | | | | | 47,098 | |
| | | | | | | | |
| |
Total Financials – 5.3% | | | | 51,165 | |
Health Care | |
| |
Health Care Equipment – 8.5% | |
DexCom, Inc. (A) | | | 214 | | | | 18,768 | |
Inogen, Inc. (A) | | | 247 | | | | 14,777 | |
K2M Group Holdings, Inc. (A) | | | 117 | | | | 2,082 | |
Nevro Corp. (A) | | | 185 | | | | 19,281 | |
NuVasive, Inc. (A) | | | 125 | | | | 8,312 | |
NxStage Medical, Inc. (A) | | | 405 | | | | 10,131 | |
Orthofix International N.V. (A) | | | 69 | | | | 2,938 | |
Penumbra, Inc. (A) | | | 89 | | | | 6,794 | |
| | | | | | | | |
| | | | | | | 83,083 | |
| | | | | | | | |
| |
Health Care Facilities – 2.9% | |
AmSurg Corp. (A) | | | 227 | | | | 15,207 | |
Surgical Care Affiliates,
Inc. (A) | | | 266 | | | | 12,955 | |
| | | | | | | | |
| | | | | | | 28,162 | |
| | | | | | | | |
| |
Health Care Services – 3.8% | |
AMN Healthcare Services, Inc. (A) | | | 831 | | | | 26,478 | |
Ensign Group, Inc. (The) | | | 407 | | | | 8,184 | |
Envision Healthcare Holdings, Inc. (A) | | | 96 | | | | 2,129 | |
| | | | | | | | |
| | | | | | | 36,791 | |
| | | | | | | | |
| |
Health Care Technology – 1.5% | |
Evolent Health, Inc.,
Class A (A) | | | 116 | | | | 2,844 | |
Medidata Solutions, Inc. (A) | | | 217 | | | | 12,092 | |
| | | | | | | | |
| | | | | | | 14,936 | |
| | | | | | | | |
| |
Life Sciences Tools & Services – 1.1% | |
Cambrex Corp. (A) | | | 232 | | | | 10,306 | |
| | | | | | | | |
| |
Managed Health Care – 1.3% | |
HealthEquity, Inc. (A) | | | 336 | | | | 12,725 | |
| | | | | | | | |
| |
Total Health Care – 19.1% | | | | 186,003 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Industrials | |
| |
Aerospace & Defense – 0.8% | |
HEICO Corp. | | | 110 | | | $ | 7,605 | |
| | | | | | | | |
| |
Air Freight & Logistics – 0.9% | |
Hub Group, Inc. (A) | | | 226 | | | | 9,191 | |
| | | | | | | | |
| |
Building Products – 0.9% | |
Apogee Enterprises, Inc. | | | 193 | | | | 8,646 | |
| | | | | | | | |
| |
Diversified Support Services – 0.8% | |
Ritchie Bros. Auctioneers, Inc. | | | 207 | | | | 7,256 | |
| | | | | | | | |
| |
Trading Companies & Distributors – 4.1% | |
Beacon Roofing Supply,
Inc. (A) | | | 257 | | | | 10,825 | |
Watsco, Inc. | | | 204 | | | | 28,729 | |
| | | | | | | | |
| | | | | | | 39,554 | |
| | | | | | | | |
| |
Trucking – 1.1% | |
Covenant Transportation Group, Inc., Class A (A) | | | 445 | | | | 8,602 | |
Knight Transportation, Inc. | | | 85 | | | | 2,430 | |
| | | | | | | | |
| | | | | | | 11,032 | |
| | | | | | | | |
| |
Total Industrials – 8.6% | | | | 83,284 | |
Information Technology | |
| |
Application Software – 12.9% | |
BroadSoft, Inc. (A) | | | 73 | | | | 3,412 | |
Descartes Systems Group, Inc. (The)(A)(B) | | | 505 | | | | 10,863 | |
HubSpot, Inc. (A) | | | 179 | | | | 10,320 | |
Manhattan Associates, Inc. (A) | | | 323 | | | | 18,588 | |
Paycom Software, Inc. (A) | | | 411 | | | | 20,588 | |
Tyler Technologies, Inc. (A) | | | 89 | | | | 15,308 | |
Ultimate Software Group, Inc. (The)(A) | | | 167 | | | | 34,062 | |
Zendesk, Inc. (A) | | | 388 | | | | 11,906 | |
| | | | | | | | |
| | | | | | | 125,047 | |
| | | | | | | | |
| |
Communications Equipment – 1.0% | |
Lumentum Holdings, Inc. (A) | | | 234 | | | | 9,753 | |
| | | | | | | | |
| |
Data Processing & Outsourced Services – 2.5% | |
Echo Global Logisitics, Inc. (A) | | | 247 | | | | 5,700 | |
Jack Henry & Associates, Inc. | | | 213 | | | | 18,221 | |
| | | | | | | | |
| | | | | | | 23,921 | |
| | | | | | | | |
| |
Electronic Manufacturing Services – 4.5% | |
Fabrinet (A) | | | 344 | | | | 15,321 | |
MACOM Technology Solutions Holdings, Inc. (A) | | | 314 | | | | 13,282 | |
Mercury Computer Systems, Inc. (A) | | | 613 | | | | 15,054 | |
| | | | | | | | |
| | | | | | | 43,657 | |
| | | | | | | | |
| |
Internet Software & Services – 1.4% | |
Five9, Inc. (A) | | | 338 | | | | 5,292 | |
Shopify, Inc., Class A (A) | | | 192 | | | | 8,241 | |
| | | | | | | | |
| | | | | | | 13,533 | |
| | | | | | | | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 111 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SMALL CAP GROWTH FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
IT Consulting & Other Services – 5.4% | |
Booz Allen Hamilton Holding Corp. | | | 696 | | | $ | 22,007 | |
CACI International, Inc., Class A (A) | | | 123 | | | | 12,452 | |
Science Applications International Corp. | | | 265 | | | | 18,411 | |
| | | | | | | | |
| | | | | | | 52,870 | |
| | | | | | | | |
| |
Semiconductor Equipment – 0.6% | |
MaxLinear, Inc., Class A (A) | | | 281 | | | | 5,700 | |
| | | | | | | | |
| |
Semiconductors – 2.5% | |
Monolithic Power Systems, Inc. | | | 131 | | | | 10,522 | |
Power Integrations, Inc. | | | 219 | | | | 13,816 | |
| | | | | | | | |
| | | | | | | 24,338 | |
| | | | | | | | |
| |
Systems Software – 1.8% | |
Proofpoint, Inc. (A) | | | 237 | | | | 17,754 | |
| | | | | | | | |
| |
Total Information
Technology – 32.6% | | | | 316,573 | |
Materials | |
| |
Construction Materials – 1.8% | |
Eagle Materials, Inc. | | | 89 | | | | 6,880 | |
Summit Materials, Inc., Class A (A) | | | 436 | | | | 8,080 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Construction Materials (Continued) | |
U.S. Concrete, Inc. (A) | | | 60 | | | $ | 2,755 | |
| | | | | | | | |
| | | | | | | 17,715 | |
| | | | | | | | |
| |
Total Materials – 1.8% | | | | 17,715 | |
Real Estate | |
| |
Real Estate Services – 1.9% | |
RE/MAX Holdings, Inc., Class A | | | 412 | | | | 18,024 | |
| | | | | | | | |
| |
Total Real Estate – 1.9% | | | | 18,024 | |
| |
TOTAL COMMON STOCKS – 93.3% | | | $ | 905,891 | |
(Cost: $646,010) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (C) – 5.2% | | | | | |
Apple, Inc., | | | | | | | | |
0.440%, 10–4–16 | | $ | 3,000 | | | | 3,000 | |
DTE Energy Co. (GTD by Detroit Edison Co.), | | | | | | | | |
0.610%, 10–6–16 | | | 12,500 | | | | 12,498 | |
John Deere Canada ULC (GTD by Deere & Co.): | | | | | | | | |
0.510%, 10–5–16 | | | 7,000 | | | | 7,000 | |
0.450%, 11–7–16 | | | 5,000 | | | | 4,997 | |
Kroger Co. (The), | | | | | | | | |
0.630%, 10–3–16 | | | 5,000 | | | | 5,000 | |
| | | | | | | | |
SHORT-TERM SECURITIES
(Continued) | | Principal | | | Value | |
Commercial Paper (C) (Continued) | | | | | |
Northern Illinois Gas Co.: | | | | | | | | |
0.420%, 10–3–16 | | $ | 5,227 | | | $ | 5,227 | |
0.760%, 10–11–16 | | | 5,000 | | | | 4,999 | |
Rockwell Automation, Inc., | | | | | | | | |
0.520%, 10–3–16 | | | 5,000 | | | | 5,000 | |
Virginia Electric and Power Co., | | | | | | | | |
0.720%, 11–2–16 | | | 3,000 | | | | 2,998 | |
| | | | | | | | |
| | | | | | | 50,719 | |
| | | | | | | | |
| |
Master Note – 0.4% | | | | | |
Toyota Motor Credit Corp., | | | | | |
0.600%, 10–5–16 (D) | | | 4,191 | | | | 4,191 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 5.6% | | | $ | 54,910 | |
(Cost: $54,911) | |
| |
TOTAL INVESTMENT
SECURITIES – 98.9% | | | $ | 960,801 | |
(Cost: $700,921) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 1.1% | | | | 10,357 | |
| |
NET ASSETS – 100.0% | | | $ | 971,158 | |
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, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following total return swap agreements were outstanding at September 30, 2016:
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Number of Shares | | Underlying Security | | Termination
Date | | | Notional
Amount | | Financing Fee(1)(2) | | | Unrealized
Appreciation | |
| JPMorgan Chase Bank N.A. | | 330,690 | | Biotech Custom Index | | | 09/06/2017 | | | $36,663 | | | 1M LIBOR less 50 bps | | | $ | 2,259 | |
| (1) | The Fund pays the financing fee multiplied by the notional amount each month. |
| (2) | At the termination date, a net cash flow is exchanged where the market-linked total return is equivalent to the return of the underlying security less a financing rate, if any. As the payer, a Fund would owe payments on any net positive total return, and would receive payments in the event of a negative total return. |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 905,891 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 54,910 | | | | — | |
Total | | $ | 905,891 | | | $ | 54,910 | | | $ | — | |
Total Return Swaps | | $ | — | | | $ | 2,259 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
GTD = Guaranteed
See Accompanying Notes to Financial Statements.
| | | | | | |
| 112 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY SMALL CAP VALUE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 95.5% | |
Industrials | | | 21.1% | |
Consumer Staples | | | 14.9% | |
Financials | | | 11.8% | |
Materials | | | 11.4% | |
Consumer Discretionary | | | 8.7% | |
Real Estate | | | 7.3% | |
Information Technology | | | 6.4% | |
Utilities | | | 6.4% | |
Energy | | | 4.4% | |
Health Care | | | 1.8% | |
Telecommunication Services | | | 1.3% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 4.5% | |
Lipper Rankings
| | | | | | |
Category: Lipper Small-Cap Value
Funds | | Rank | | Percentile | |
1 Year | | 13/293 | | | 5 | |
3 Year | | 28/255 | | | 11 | |
5 Year | | 63/231 | | | 28 | |
10 Year | | 42/145 | | | 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.
Top 10 Equity Holdings
| | | | |
| Company | | Sector | | Industry |
Webster Financial Corp. | | Financials | | Regional Banks |
Take-Two Interactive Software, Inc. | | Information Technology | | Home Entertainment Software |
Nu Skin Enterprises, Inc., Class A | | Consumer Staples | | Personal Products |
Coca-Cola Bottling Co. Consolidated | | Consumer Staples | | Soft Drinks |
Beacon Roofing Supply, Inc. | | Industrials | | Trading Companies & Distributors |
Flotek Industries, Inc. | | Materials | | Specialty Chemicals |
Laredo Petroleum Holdings, Inc. | | Energy | | Oil & Gas Exploration & Production |
Woodward, Inc. | | Industrials | | Industrial Machinery |
Pinnacle Foods, Inc. | | Consumer Staples | | Packaged Foods & Meats |
Communications Sales & Leasing, Inc. | | Real Estate | | Specialized REITs |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 113 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SMALL CAP VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Automotive Retail – 1.9% | |
Monro Muffler Brake, Inc. | | | 104 | | | $ | 6,335 | |
| | | | | | | | |
| |
Homebuilding – 1.9% | |
TRI Pointe Group, Inc. (A) | | | 486 | | | | 6,402 | |
| | | | | | | | |
| |
Homefurnishing Retail – 2.0% | |
Restoration Hardware Holdings, Inc. (A) | | | 186 | | | | 6,418 | |
| | | | | | | | |
| |
Movies & Entertainment – 2.0% | |
AMC Entertainment Holdings, Inc., Class A | | | 212 | | | | 6,597 | |
| | | | | | | | |
| |
Restaurants – 0.9% | |
Cheesecake Factory, Inc. (The) | | | 56 | | | | 2,818 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 8.7% | | | | 28,570 | |
Consumer Staples | |
| |
Food Retail – 0.5% | |
Casey’s General Stores, Inc. | | | 14 | | | | 1,694 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 3.3% | |
Pinnacle Foods, Inc. | | | 214 | | | | 10,742 | |
| | | | | | | | |
| |
Personal Products – 7.0% | |
Avon Products, Inc. | | | 1,375 | | | | 7,780 | |
Nu Skin Enterprises, Inc., Class A | | | 234 | | | | 15,172 | |
| | | | | | | | |
| | | | | | | 22,952 | |
| | | | | | | | |
| |
Soft Drinks – 4.1% | |
Coca-Cola Bottling Co. Consolidated | | | 91 | | | | 13,497 | |
| | | | | | | | |
| | |
Total Consumer Staples – 14.9% | | | | | | | 48,885 | |
Energy | |
| |
Oil & Gas Exploration & Production – 4.4% | |
Clayton Williams Energy, Inc. (A) | | | 34 | | | | 2,888 | |
Laredo Petroleum Holdings, Inc. (A) | | | 896 | | | | 11,559 | |
| | | | | | | | |
| | | | | | | 14,447 | |
| | | | | | | | |
| |
Total Energy – 4.4% | | | | 14,447 | |
Financials | |
| |
Regional Banks – 10.4% | |
FCB Financial Holdings, Inc., Class A (A) | | | 141 | | | | 5,407 | |
SVB Financial Group (A) | | | 48 | | | | 5,339 | |
Tompkins Financial Corp. | | | 24 | | | | 1,796 | |
Webster Financial Corp. | | | 430 | | | | 16,325 | |
Western Alliance Bancorp. (A) | | | 140 | | | | 5,263 | |
| | | | | | | | |
| | | | | | | 34,130 | |
| | | | | | | | |
| |
Reinsurance – 1.4% | |
Reinsurance Group of America, Inc. | | | 43 | | | | 4,685 | |
| | | | | | | | |
| |
Total Financials – 11.8% | | | | 38,815 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Health Care | |
| |
Health Care Services – 1.8% | |
Healthways, Inc. (A) | | | 224 | | | $ | 5,930 | |
| | | | | | | | |
| |
Total Health Care – 1.8% | | | | 5,930 | |
Industrials | |
| |
Aerospace & Defense – 1.8% | |
Orbital ATK, Inc. | | | 80 | | | | 6,098 | |
| | | | | | | | |
| |
Airlines – 1.5% | |
Copa Holdings S.A., Class A | | | 55 | | | | 4,836 | |
| | | | | | | | |
| |
Building Products – 2.2% | |
Continental Building Products, Inc. (A) | | | 350 | | | | 7,352 | |
| | | | | | | | |
| |
Commercial Printing – 2.1% | |
Deluxe Corp. | | | 48 | | | | 3,227 | |
Multi-Color Corp. | | | 56 | | | | 3,670 | |
| | | | | | | | |
| | | | | | | 6,897 | |
| | | | | | | | |
| |
Industrial Machinery – 3.4% | |
Woodward, Inc. | | | 177 | | | | 11,040 | |
| | | | | | | | |
| |
Marine – 0.9% | |
Kirby Corp. (A) | | | 49 | | | | 3,034 | |
| | | | | | | | |
| |
Trading Companies & Distributors – 5.3% | |
Beacon Roofing Supply, Inc. (A) | | | 299 | | | | 12,596 | |
Univar, Inc. (A) | | | 219 | | | | 4,785 | |
| | | | | | | | |
| | | | | | | 17,381 | |
| | | | | | | | |
| |
Trucking – 3.9% | |
Saia, Inc. (A) | | | 84 | | | | 2,501 | |
YRC Worldwide, Inc. (A) | | | 842 | | | | 10,370 | |
| | | | | | | | |
| | | | | | | 12,871 | |
| | | | | | | | |
| |
Total Industrials – 21.1% | | | | 69,509 | |
Information Technology | |
| |
Home Entertainment Software – 4.7% | |
Take-Two Interactive Software, Inc. (A) | | | 346 | | | | 15,616 | |
| | | | | | | | |
| |
IT Consulting & Other Services – 1.7% | |
Science Applications International Corp. | | | 80 | | | | 5,522 | |
| | | | | | | | |
| |
Total Information Technology – 6.4% | | | | 21,138 | |
Materials | |
| |
Aluminum – 1.1% | |
Kaiser Aluminum Corp. | | | 44 | | | | 3,797 | |
| | | | | | | | |
| |
Gold – 2.3% | |
IAMGOLD Corp. (A) | | | 634 | | | | 2,568 | |
Kinross Gold Corp. (A) | | | 611 | | | | 2,571 | |
Yamana Gold, Inc. | | | 566 | | | | 2,439 | |
| | | | | | | | |
| | | | | | | 7,578 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Precious Metals & Minerals – 0.5% | |
Silver Standard Resources, Inc. (A) | | | 132 | | | $ | 1,594 | |
| | | | | | | | |
| |
Specialty Chemicals – 7.5% | |
Flotek Industries, Inc. (A)(B) | | | 118 | | | | 1,711 | |
Flotek Industries, Inc. (A) | | | 811 | | | | 11,796 | |
Innospec, Inc. | | | 74 | | | | 4,506 | |
Sensient Technologies Corp. | | | 86 | | | | 6,526 | |
| | | | | | | | |
| | | | | | | 24,539 | |
| | | | | | | | |
| |
Total Materials – 11.4% | | | | 37,508 | |
Real Estate | |
| |
Industrial REITs – 1.2% | |
STAG Industrial, Inc. | | | 159 | | | | 3,895 | |
| | | | | | | | |
| |
Office REITs – 1.6% | |
Highwoods Properties, Inc. | | | 102 | | | | 5,337 | |
| | | | | | | | |
| |
Specialized REITs – 4.5% | |
Communications Sales & Leasing, Inc. | | | 335 | | | | 10,525 | |
Entertainment Properties Trust | | | 54 | | | | 4,213 | |
| | | | | | | | |
| | | | | | | 14,738 | |
| | | | | | | | |
| |
Total Real Estate – 7.3% | | | | 23,970 | |
Telecommunication Services | |
| |
Alternative Carriers – 1.3% | |
Vonage Holdings Corp. (A) | | | 642 | | | | 4,246 | |
| | | | | | | | |
| |
Total Telecommunication Services – 1.3% | | | | 4,246 | |
Utilities | | | | | |
| |
Electric Utilities – 3.0% | |
ALLETE, Inc. | | | 90 | | | | 5,336 | |
IDACORP, Inc. | | | 39 | | | | 3,069 | |
Portland General Electric Co. | | | 30 | | | | 1,290 | |
| | | | | | | | |
| | | | | | | 9,695 | |
| | | | | | | | |
| |
Gas Utilities – 1.8% | |
New Jersey Resources Corp. | | | 94 | | | | 3,099 | |
South Jersey Industries, Inc. | | | 101 | | | | 2,975 | |
| | | | | | | | |
| | | | | | | 6,074 | |
| | | | | | | | |
| |
Multi-Utilities – 1.6% | |
MDU Resources Group, Inc. | | | 68 | | | | 1,730 | |
NorthWestern Corp. | | | 61 | | | | 3,506 | |
| | | | | | | | |
| | | | | | | 5,236 | |
| | | | | | | | |
| | |
Total Utilities – 6.4% | | | | | | | 21,005 | |
| |
TOTAL COMMON STOCKS – 95.5% | | | $ | 314,023 | |
(Cost: $263,401) | | | | | | | | |
| | | | | | |
| 114 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY SMALL CAP VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| SHORT-TERM SECURITIES | | Principal | | | Value | |
Commercial Paper (C) – 2.9% | |
Campbell Soup Co., | | | | | | | | |
0.590%, 10–3–16 | | $ | 1,917 | | | $ | 1,917 | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10–3–16 | | | 7,371 | | | | 7,370 | |
| | | | | | | | |
| | | | | | | 9,287 | |
| | | | | | | | |
Master Note – 0.8% | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (D) | | | 2,792 | | | | 2,792 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 3.7% | | | $ | 12,079 | |
(Cost: $12,079) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 99.2% | | | $ | 326,102 | |
(Cost: $275,480) | | | | | | | | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.8% | | | | 2,469 | |
| |
NET ASSETS – 100.0% | | | $ | 328,571 | |
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, 2016 the total value of these securities amounted to $1,711 or 0.5% of net assets. |
| (C) | Rate shown is the yield to maturity at September 30, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. 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, 2016. 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 | | $ | 314,023 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 12,079 | | | | — | |
Total | | $ | 314,023 | | | $ | 12,079 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronym is used throughout this schedule:
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 115 | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY TAX-MANAGED EQUITY FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 97.7% | |
Information Technology | | | 34.6% | |
Health Care | | | 19.5% | |
Consumer Discretionary | | | 15.7% | |
Industrials | | | 14.6% | |
Consumer Staples | | | 7.3% | |
Energy | | | 4.0% | |
Real Estate | | | 2.0% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | |
| 2.3%
|
|
Lipper Rankings
| | | | | | |
Category: Lipper Large-Cap Growth
Funds | | Rank | | Percentile | |
1 Year | | 619/694 | | | 90 | |
3 Year | | 300/628 | | | 48 | |
5 Year | | 361/549 | | | 66 | |
Past performance is no guarantee of future results. Rankings are for Class A shares and are based on average annual total returns, but do not consider sales charges. Rankings for other share classes may vary.
Top 10 Equity Holdings
| | | | |
| Company | | Sector | | Industry |
Amazon.com, Inc. | | Consumer Discretionary | | Internet & Direct Marketing Retail |
Alphabet, Inc., Class A | | Information Technology | | Internet Software & Services |
salesforce.com, Inc. | | Information Technology | | Application Software |
Facebook, Inc., Class A | | Information Technology | | Internet Software & Services |
Shire Pharmaceuticals Group plc ADR | | Health Care | | Biotechnology |
Apple, Inc. | | Information Technology | | Technology Hardware, Storage & Peripherals |
Allergan plc | | Health Care | | Pharmaceuticals |
Adobe Systems, Inc. | | Information Technology | | Application Software |
Lam Research Corp. | | Information Technology | | Semiconductor Equipment |
Visa, Inc., Class A | | Information Technology | | Data Processing & Outsourced Services |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | |
| 116 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY TAX-MANAGED EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Apparel, Accessories & Luxury Goods – 0.7% | |
lululemon athletica, Inc. (A) | | | 14 | | | $ | 855 | |
| | | | | | | | |
| |
Cable & Satellite – 4.1% | |
Charter Communications, Inc., Class A (A) | | | 8 | | | | 2,127 | |
Comcast Corp., Class A | | | 40 | | | | 2,672 | |
| | | | | | | | |
| | | | | | | 4,799 | |
| | | | | | | | |
| |
Footwear – 1.0% | |
NIKE, Inc., Class B | | | 22 | | | | 1,175 | |
| | | | | | | | |
| |
Internet & Direct Marketing Retail – 7.8% | |
Amazon.com, Inc. (A) | | | 8 | | | | 6,679 | |
priceline.com, Inc. (A) | | | 2 | | | | 2,580 | |
| | | | | | | | |
| | | | | | | 9,259 | |
| | | | | | | | |
| |
Restaurants – 2.1% | |
Panera Bread Co., Class A (A) | | | 12 | | | | 2,405 | |
| | | | | | | | |
| |
Total Consumer
Discretionary – 15.7% | | | | 18,493 | |
Consumer Staples | |
| |
Brewers – 1.2% | |
Anheuser-Busch InBev S.A. ADR | | | 11 | | | | 1,428 | |
| | | | | | | | |
| |
Food Retail – 1.0% | |
Casey’s General Stores, Inc. | | | 10 | | | | 1,218 | |
| | | | | | | | |
| |
Hypermarkets & Super Centers – 0.8% | |
Costco Wholesale Corp. | | | 6 | | | | 892 | |
| | | | | | | | |
| |
Packaged Foods & Meats – 2.2% | |
Blue Buffalo Pet Products, Inc. (A) | | | 57 | | | | 1,355 | |
Mead Johnson Nutrition Co. | | | 15 | | | | 1,206 | |
| | | | | | | | |
| | | | | | | 2,561 | |
| | | | | | | | |
| |
Personal Products – 1.1% | |
Estee Lauder Co., Inc. (The), Class A | | | 15 | | | | 1,340 | |
| | | | | | | | |
| |
Tobacco – 1.0% | |
Philip Morris International, Inc. | | | 12 | | | | 1,155 | |
| | | | | | | | |
| |
Total Consumer Staples – 7.3% | | | | 8,594 | |
Energy | |
| |
Oil & Gas Equipment & Services – 4.0% | |
Halliburton Co. | | | 73 | | | | 3,267 | |
Schlumberger Ltd. | | | 19 | | | | 1,491 | |
| | | | | | | | |
| | | | | | | 4,758 | |
| | | | | | | | |
| |
Total Energy – 4.0% | | | | 4,758 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Health Care | |
| |
Biotechnology – 10.3% | |
ACADIA Pharmaceuticals, Inc. (A) | | | 31 | | | $ | 983 | |
Alexion Pharmaceuticals, Inc. (A) | | | 25 | | | | 3,079 | |
Biogen, Inc. (A) | | | 4 | | | | 1,364 | |
Incyte Corp. (A) | | | 13 | | | | 1,253 | |
Shire Pharmaceuticals Group plc ADR | | | 23 | | | | 4,446 | |
Vertex Pharmaceuticals,
Inc. (A) | | | 13 | | | | 1,105 | |
| | | | | | | | |
| | | | | | | 12,230 | |
| | | | | | | | |
| |
Health Care Equipment – 1.7% | |
DexCom, Inc. (A) | | | 23 | | | | 1,999 | |
| | | | | | | | |
| |
Health Care Facilities – 0.7% | |
HCA Holdings, Inc. (A) | | | 12 | | | | 875 | |
| | | | | | | | |
| |
Pharmaceuticals – 6.8% | |
Allergan plc (A) | | | 18 | | | | 4,145 | |
Bristol-Myers Squibb Co. | | | 26 | | | | 1,411 | |
Teva Pharmaceutical Industries Ltd. ADR | | | 53 | | | | 2,419 | |
| | | | | | | | |
| | | | | | | 7,975 | |
| | | | | | | | |
| |
Total Health Care – 19.5% | | | | 23,079 | |
Industrials | |
| |
Aerospace & Defense – 2.7% | |
Boeing Co. (The) | | | 13 | | | | 1,767 | |
Raytheon Co. | | | 11 | | | | 1,470 | |
| | | | | | | | |
| | | | | | | 3,237 | |
| | | | | | | | |
| |
Industrial Conglomerates – 2.6% | |
Danaher Corp. | | | 40 | | | | 3,116 | |
| | | | | | | | |
| |
Railroads – 4.3% | |
Kansas City Southern | | | 23 | | | | 2,133 | |
Union Pacific Corp. | | | 30 | | | | 2,891 | |
| | | | | | | | |
| | | | | | | 5,024 | |
| | | | | | | | |
| |
Research & Consulting Services – 2.5% | |
Verisk Analytics, Inc.,
Class A (A) | | | 36 | | | | 2,899 | |
| | | | | | | | |
| |
Trucking – 2.5% | |
J.B. Hunt Transport Services, Inc. | | | 36 | | | | 2,922 | |
| | | | | | | | |
| |
Total Industrials – 14.6% | | | | 17,198 | |
Information Technology | |
| |
Application Software – 7.3% | |
Adobe Systems, Inc. (A) | | | 38 | | | | 4,111 | |
salesforce.com, Inc. (A) | | | 63 | | | | 4,503 | |
| | | | | | | | |
| | | | | | | 8,614 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Data Processing & Outsourced Services – 8.3% | |
FleetCor Technologies,
Inc. (A) | | | 18 | | | $ | 3,144 | |
MasterCard, Inc., Class A | | | 28 | | | | 2,846 | |
Visa, Inc., Class A | | | 47 | | | | 3,868 | |
| | | | | | | | |
| | | | | | | 9,858 | |
| | | | | | | | |
| |
Home Entertainment Software – 1.0% | |
Electronic Arts, Inc. (A) | | | 14 | | | | 1,196 | |
| | | | | | | | |
| |
Internet Software & Services – 8.8% | |
Alphabet, Inc., Class A (A) | | | 6 | | | | 4,697 | |
Alphabet, Inc., Class C (A) | | | 2 | | | | 1,248 | |
Facebook, Inc., Class A (A) | | | 35 | | | | 4,451 | |
| | | | | | | | |
| | | | | | | 10,396 | |
| | | | | | | | |
Semiconductor Equipment – 3.3% | |
Lam Research Corp. | | | 41 | | | | 3,921 | |
| | | | | | | | |
| |
Systems Software – 2.3% | |
Microsoft Corp. | | | 47 | | | | 2,693 | |
| | | | | | | | |
| |
Technology Hardware, Storage &
Peripherals – 3.6% | |
Apple, Inc. | | | 38 | | | | 4,277 | |
| | | | | | | | |
| |
Total Information
Technology – 34.6% | | | | 40,955 | |
Real Estate | |
| |
Specialized REITs – 2.0% | |
American Tower Corp., Class A | | | 21 | | | | 2,351 | |
| | | | | | | | |
| |
Total Real Estate – 2.0% | | | | 2,351 | |
| |
TOTAL COMMON STOCKS – 97.7% | | | $ | 115,428 | |
(Cost: $93,175) | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Master Note – 1.4% | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10–5–16 (B) | | $ | 1,690 | | | | 1,690 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM
SECURITIES – 1.4% | | | $ | 1,690 | |
(Cost: $1,690) | |
| |
TOTAL INVESTMENT
SECURITIES – 99.1% | | | $ | 117,118 | |
(Cost: $94,865) | |
| |
CASH AND OTHER ASSETS, NET OF LIABILITIES – 0.9% | | | | 1,110 | |
| |
NET ASSETS – 100.0% | | | $ | 118,228 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 117 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY TAX-MANAGED EQUITY FUND (in thousands) |
SEPTEMBER 30, 2016 (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, 2016. 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, 2016. 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 | | $ | 115,428 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 1,690 | | | | — | |
Total | �� | $ | 115,428 | | | $ | 1,690 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | |
| 118 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PORTFOLIO HIGHLIGHTS | | IVY VALUE FUND |
ALL DATA IS AS OF SEPTEMBER 30, 2016 (UNAUDITED)
Asset Allocation
| | | | |
Stocks | | | 96.6% | |
Financials | | | 28.2% | |
Health Care | | | 13.5% | |
Information Technology | | | 13.0% | |
Energy | | | 12.9% | |
Consumer Discretionary | | | 10.3% | |
Consumer Staples | | | 8.0% | |
Utilities | | | 3.1% | |
Materials | | | 2.9% | |
Real Estate | | | 2.6% | |
Industrials | | | 2.1% | |
Cash and Other Assets (Net of Liabilities), and Cash Equivalents+ | | | 3.4% | |
Lipper Rankings
| | | | | | |
Category: Lipper Large-Cap Value
Funds | | Rank | | Percentile | |
1 Year | | 494/526 | | | 94 | |
3 Year | | 346/450 | | | 77 | |
5 Year | | 254/406 | | | 63 | |
10 Year | | 115/286 | | | 41 | |
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 |
JPMorgan Chase & Co. | | Financials | | Other Diversified Financial Services |
Citigroup, Inc. | | Financials | | Other Diversified Financial Services |
Microsoft Corp. | | Information Technology | | Systems Software |
Capital One Financial Corp. | | Financials | | Consumer Finance |
American International Group, Inc. | | Financials | | Multi-Line Insurance |
Western Digital Corp. | | Information Technology | | Technology Hardware, Storage & Peripherals |
Duke Energy Corp. | | Utilities | | Electric Utilities |
Philip Morris International, Inc. | | Consumer Staples | | Tobacco |
Micron Technology, Inc. | | Information Technology | | Semiconductors |
Dow Chemical Co. (The) | | Materials | | Diversified Chemicals |
See your advisor or www.ivyinvestments.com for more information on the Fund’s most recently published Top 10 Equity Holdings.
| + | Cash equivalents are defined as highly liquid securities with maturities of less than three months. Cash equivalents may include U.S. Government Treasury bills, bank certificates of deposit, bankers’ acceptances, corporate commercial paper and other money market instruments. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 119 | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | |
| COMMON STOCKS | | Shares | | | Value | |
Consumer Discretionary | |
| |
Cable & Satellite – 2.6% | |
Comcast Corp., Class A | | | 111 | | | $ | 7,390 | |
| | | | | | | | |
| |
Casinos & Gaming – 2.7% | |
Las Vegas Sands, Inc. (A) | | | 131 | | | | 7,561 | |
| | | | | | | | |
| |
General Merchandise Stores – 2.6% | |
Target Corp. | | | 109 | | | | 7,493 | |
| | | | | | | | |
| |
Housewares & Specialties – 2.4% | |
Newell Rubbermaid, Inc. | | | 128 | | | | 6,730 | |
| | | | | | | | |
| |
Total Consumer Discretionary – 10.3% | | | | 29,174 | |
Consumer Staples | |
| |
Agricultural Products – 2.5% | |
Ingredion, Inc. (A) | | | 54 | | | | 7,159 | |
| | | | | | | | |
| |
Drug Retail – 2.4% | |
CVS Caremark Corp. | | | 76 | | | | 6,763 | |
| | | | | | | | |
| |
Tobacco – 3.1% | |
Philip Morris International, Inc. | | | 89 | | | | 8,662 | |
| | | | | | | | |
| |
Total Consumer Staples – 8.0% | | | | 22,584 | |
Energy | |
| |
Integrated Oil & Gas – 2.6% | |
Hess Corp. | | | 136 | | | | 7,266 | |
| | | | | | | | |
| |
Oil & Gas Refining & Marketing – 2.8% | |
Marathon Petroleum Corp. (A) | | | 193 | | | | 7,838 | |
| | | | | | | | |
| |
Oil & Gas Storage & Transportation – 7.5% | |
Energy Transfer Partners L.P. | | | 188 | | | | 6,971 | |
Enterprise Products Partners L.P. | | | 255 | | | | 7,054 | |
VTTI Energy Partners L.P. | | | 387 | | | | 7,358 | |
| | | | | | | | |
| | | | | | | 21,383 | |
| | | | | | | | |
| |
Total Energy – 12.9% | | | | 36,487 | |
Financials | | | | | | | | |
| |
Consumer Finance – 6.3% | |
Capital One Financial Corp. | | | 136 | | | | 9,790 | |
Synchrony Financial | | | 286 | | | | 8,005 | |
| | | | | | | | |
| | | | | | | 17,795 | |
| | | | | | | | |
| |
Life & Health Insurance – 2.8% | |
MetLife, Inc. | | | 182 | | | | 8,091 | |
| | | | | | | | |
| |
Mortgage REITs – 2.6% | |
American Capital Agency Corp. | | | 378 | | | | 7,392 | |
| | | | | | | | |
| |
Multi-Line Insurance – 3.3% | |
American International Group, Inc. | | | 156 | | | | 9,275 | |
| | | | | | | | |
| |
Other Diversified Financial Services – 8.6% | |
Citigroup, Inc. (A) | | | 231 | | | | 10,887 | |
JPMorgan Chase & Co. | | | 203 | | | | 13,484 | |
| | | | | | | | |
| | | | | | | 24,371 | |
| | | | | | | | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Property & Casualty Insurance – 1.9% | |
Allstate Corp. (The) | | | 77 | | | $ | 5,313 | |
| | | | | | | | |
| |
Reinsurance – 2.7% | |
Reinsurance Group of America, Inc. | | | 70 | | | | 7,534 | |
| | | | | | | | |
| |
Total Financials – 28.2% | | | | 79,771 | |
Health Care | |
| |
Biotechnology – 2.5% | |
Amgen, Inc. (A) | | | 42 | | | | 6,973 | |
| | | | | | | | |
| |
Health Care Facilities – 2.7% | |
HCA Holdings, Inc. (B) | | | 103 | | | | 7,782 | |
| | | | | | | | |
| |
Managed Health Care – 6.1% | |
Aetna, Inc. | | | 64 | | | | 7,412 | |
Anthem, Inc. | | | 30 | | | | 3,797 | |
Cigna Corp. | | | 31 | | | | 4,027 | |
Humana, Inc. | | | 12 | | | | 2,087 | |
| | | | | | | | |
| | | | | | | 17,323 | |
| | | | | | | | |
| |
Pharmaceuticals – 2.2% | |
Teva Pharmaceutical Industries Ltd. ADR | | | 132 | | | | 6,092 | |
| | | | | | | | |
| |
Total Health Care – 13.5% | | | | 38,170 | |
Industrials | |
| |
Airlines – 1.1% | |
Delta Air Lines, Inc. | | | 82 | | | | 3,220 | |
| | | | | | | | |
| | |
Industrial Machinery – 1.0% | | | | | | | | |
Eaton Corp. | | | 42 | | | | 2,753 | |
| | | | | | | | |
| |
Total Industrials – 2.1% | | | | 5,973 | |
Information Technology | |
| |
IT Consulting & Other Services – 0.7% | |
Computer Sciences Corp. | | | 40 | | | | 2,062 | |
| | | | | | | | |
| |
Semiconductor Equipment – 1.4% | |
Lam Research Corp. | | | 41 | | | | 3,874 | |
| | | | | | | | |
| |
Semiconductors – 4.1% | |
Micron Technology, Inc. (B) | | | 471 | | | | 8,366 | |
QUALCOMM, Inc. | | | 46 | | | | 3,151 | |
| | | | | | | | |
| | | | | | | 11,517 | |
| | | | | | | | |
| |
Systems Software – 3.7% | |
Microsoft Corp. | | | 184 | | | | 10,604 | |
| | | | | | | | |
| |
Technology Hardware, Storage & Peripherals – 3.1% | |
Western Digital Corp. (A) | | | 151 | | | | 8,823 | |
| | | | | | | | |
| |
Total Information Technology – 13.0% | | | | 36,880 | |
| | | | | | | | |
| COMMON STOCKS (Continued) | | Shares | | | Value | |
Materials | | | | | | | | |
| |
Diversified Chemicals – 2.9% | |
Dow Chemical Co. (The) | | | 157 | | | $ | 8,142 | |
| | | | | | | | |
| | |
Total Materials – 2.9% | | | | | | | 8,142 | |
Real Estate | | | | | | | | |
| |
Specialized REITs – 2.6% | |
Communications Sales & Leasing, Inc. | | | 237 | | | | 7,454 | |
| | | | | | | | |
| |
Total Real Estate – 2.6% | | | | 7,454 | |
Utilities | | | | | | | | |
| |
Electric Utilities – 3.1% | |
Duke Energy Corp. | | | 109 | | | | 8,700 | |
| | | | | | | | |
| |
Total Utilities – 3.1% | | | | 8,700 | |
| |
TOTAL COMMON STOCKS – 96.6% | | | $ | 273,335 | |
(Cost: $240,079) | | | | | | | | |
| | |
| SHORT-TERM SECURITIES | | Principal | | | | |
Commercial Paper (C) – 2.3% | | | | | | | | |
J.M. Smucker Co. (The), | | | | | | | | |
0.700%, 10-3-16 | | $ | 6,655 | | | | 6,654 | |
| | | | | | | | |
Master Note – 1.2% | | | | | | | | |
Toyota Motor Credit Corp., | | | | | | | | |
0.600%, 10-5-16 (D) | | | 3,445 | | | | 3,445 | |
| | | | | | | | |
| |
TOTAL SHORT-TERM SECURITIES – 3.5% | | | $ | 10,099 | |
(Cost: $10,100) | | | | | | | | |
| |
TOTAL INVESTMENT SECURITIES – 100.1% | | | $ | 283,434 | |
(Cost: $250,179) | | | | | | | | |
| |
LIABILITIES, NET OF CASH AND OTHER ASSETS – (0.1)% | | | | (400 | ) |
| | |
NET ASSETS – 100.0% | | | | | | $ | 283,034 | |
| | | | | | |
| 120 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| SCHEDULE OF INVESTMENTS | | IVY VALUE FUND (in thousands) |
SEPTEMBER 30, 2016 (UNAUDITED)
Notes to Schedule of Investments
| (A) | All or a portion of securities with an aggregate value of $21,967 are 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, 2016. |
| (D) | Variable rate security. Interest rate disclosed is that which is in effect at September 30, 2016. Date shown represents the date that the variable rate resets. |
The following written options were outstanding at September 30, 2016 (contracts and exercise prices unrounded):
| | | | | | | | | | | | | | | | | | | | | | | | |
| Underlying Security | | Counterparty, if OTC | | Type | | Number of
Contracts | | | Expiration Month | | | Exercise
Price | | | Premium
Received | | | Value | |
| Aetna, Inc. | | N/A | | Put | | | 62 | | | | November 2016 | | | $ | 105.00 | | | $ | 8 | | | $ | (10 | ) |
| Amgen, Inc. | | N/A | | Call | | | 40 | | | | November 2016 | | | | 180.00 | | | | 11 | | | | (4 | ) |
| Eaton Corp. | | N/A | | Put | | | 110 | | | | November 2016 | | | | 57.50 | | | | 9 | | | | (4 | ) |
| Enterprise Products Partners L.P. | | N/A | | Put | | | 262 | | | | November 2016 | | | | 25.00 | | | | 13 | | | | (7 | ) |
| Ingredion, Inc. | | N/A | | Call | | | 85 | | | | October 2016 | | | | 140.00 | | | | 14 | | | | (2 | ) |
| Las Vegas Sands, Inc. | | N/A | | Call | | | 126 | | | | October 2016 | | | | 58.50 | | | | 14 | | | | (16 | ) |
| | N/A | | Call | | | 126 | | | | November 2016 | | | | 60.00 | | | | 16 | | | | (18 | ) |
| QUALCOMM, Inc. | | N/A | | Put | | | 111 | | | | November 2016 | | | | 57.50 | | | | 10 | | | | (3 | ) |
| Wells Fargo & Co. | | N/A | | Put | | | 313 | | | | December 2016 | | | | 40.00 | | | | 15 | | | | (19 | ) |
| Western Digital Corp. | | N/A | | Call | | | 218 | | | | October 2016 | | | | 65.00 | | | | 14 | | | | (4 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 124 | | | $ | (87 | ) |
| | | | | | | | | | | | | | | | | | | | |
The following table is a summary of the valuation of the Fund’s investments by the fair value hierarchy levels as of September 30, 2016. 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 | | $ | 273,335 | | | $ | — | | | $ | — | |
Short-Term Securities | | | — | | | | 10,099 | | | | — | |
Total | | $ | 273,335 | | | $ | 10,099 | | | $ | — | |
| | | |
Liabilities | | | | | | | | | | | | |
Written Options | | $ | 81 | | | $ | 6 | | | $ | — | |
During the period ended September 30, 2016, there were no transfers between Level 1 and 2.
The following acronyms are used throughout this schedule:
ADR = American Depositary Receipts
OTC = Over the Counter
REIT = Real Estate Investment Trust
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 121 | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | IVY FUNDS |
AS OF SEPTEMBER 30, 2016 (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+ | | $ | 810,959 | | | $ | 1,041,368 | | | $ | 199,683 | | | $ | 372,360 | | | $ | 592,487 | | | $ | 202,514 | | | $ | 167,430 | |
Investments at Value | | | 810,959 | | | | 1,041,368 | | | | 199,683 | | | | 372,360 | | | | 592,487 | | | | 202,514 | | | | 167,430 | |
Cash | | | 1,462 | | | | 1 | | | | — | | | | 1 | | | | 350 | | | | 1 | | | | 144 | |
Cash denominated in foreign currencies at value+ | | | — | | | | — | | | | — | | | | — | | | | 23 | | | | 320 | | | | — | |
Restricted cash | | | — | | | | — | | | | — | | | | — | | | | 2,909 | | | | — | | | | — | |
Investment securities sold receivable | | | 7,770 | | | | 32,467 | | | | 788 | | | | 1,484 | | | | 2,010 | | | | 3,045 | | | | — | |
Dividends and interest receivable | | | 5,374 | | | | 1,118 | | | | 823 | | | | 549 | | | | 435 | | | | 438 | | | | 2,224 | |
Capital shares sold receivable | | | 906 | | | | 550 | | | | 44 | | | | 363 | | | | 1,650 | | | | 417 | | | | 125 | |
Receivable from affiliates | | | 5 | | | | 398 | | | | 3 | | | | 10 | | | | 296 | | | | — | | | | 257 | |
Unrealized appreciation on forward foreign currency contracts | | | — | | | | — | | | | 24 | | | | — | �� | | | 213 | | | | 174 | | | | 22 | |
Variation margin receivable | | | 101 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Prepaid and other assets | | | 70 | | | | 75 | | | | 47 | | | | 54 | | | | 71 | | | | 47 | | | | 41 | |
Total Assets | | | 826,647 | | | | 1,075,977 | | | | 201,412 | | | | 374,821 | | | | 600,444 | | | | 206,956 | | | | 170,243 | |
| | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased payable | | | 31,718 | | | | 35,114 | | | | 11 | | | | 891 | | | | 2,821 | | | | 2,678 | | | | — | |
Capital shares redeemed payable | | | 1,835 | | | | 2,616 | | | | 339 | | | | 1,408 | | | | 1,851 | | | | 395 | | | | 723 | |
Distributions payable | | | 159 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Independent Trustees and Chief Compliance Officer fees payable | | | 66 | | | | 96 | | | | 97 | | | | 26 | | | | 63 | | | | 62 | | | | 9 | |
Overdraft due to custodian | | | — | | | | — | | | | 1,107 | | | | — | | | | — | | | | — | | | | — | |
Distribution and service fees payable | | | 3 | | | | 6 | | | | 1 | | | | 3 | | | | 3 | | | | 1 | | | | 1 | |
Shareholder servicing payable | | | 174 | | | | 238 | | | | 85 | | | | 94 | | | | 187 | | | | 72 | | | | 59 | |
Investment management fee payable | | | 11 | | | | 20 | | | | 5 | | | | 7 | | | | 16 | | | | 5 | | | | 3 | |
Accounting services fee payable | | | 19 | | | | 23 | | | | 8 | | | | 11 | | | | 13 | | | | 8 | | | | 6 | |
Unrealized depreciation on forward foreign currency contracts | | | — | | | | — | | | | 79 | | | | — | | | | 362 | | | | — | | | | — | |
Variation margin payable | | | 97 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Written options at value+ | | | — | | | | — | | | | — | | | | — | | | | 1,968 | | | | — | | | | — | |
Other liabilities | | | 63 | | | | 33 | | | | 24 | | | | 17 | | | | 53 | | | | 17 | | | | 11 | |
Total Liabilities | | | 34,145 | | | | 38,146 | | | | 1,756 | | | | 2,457 | | | | 7,337 | | | | 3,238 | | | | 812 | |
Total Net Assets | | $ | 792,502 | | | $ | 1,037,831 | | | $ | 199,656 | | | $ | 372,364 | | | $ | 593,107 | | | $ | 203,718 | | | $ | 169,431 | |
| | | | | | | |
NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 788,316 | | | $ | 871,164 | | | $ | 213,337 | | | $ | 294,786 | | | $ | 577,173 | | | $ | 322,444 | | | $ | 189,395 | |
Undistributed (distributions in excess of) net investment income | | | (794 | ) | | | 1,224 | | | | 1,214 | | | | 718 | | | | (1,657 | ) | | | 2,861 | | | | 427 | |
Accumulated net realized gain (loss) | | | (17,420 | ) | | | 6,996 | | | | (31,606 | ) | | | 10,653 | | | | (111,915 | ) | | | (133,907 | ) | | | (10,892 | ) |
Net unrealized appreciation (depreciation) | | | 22,400 | | | | 158,447 | | | | 16,711 | | | | 66,207 | | | | 129,506 | | | | 12,320 | | | | (9,499 | ) |
Total Net Assets | | $ | 792,502 | | | $ | 1,037,831 | | | $ | 199,656 | | | $ | 372,364 | | | $ | 593,107 | | | $ | 203,718 | | | $ | 169,431 | |
| | | | | | | |
CAPITAL SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 22,265 | | | | 22,632 | | | | 6,161 | | | | 8,269 | | | | 16,629 | | | | 3,018 | | | | 6,227 | |
Class B | | | 578 | | | | 743 | | | | 75 | | | | 455 | | | | 350 | | | | 31 | | | | 298 | |
Class C | | | 3,197 | | | | 10,449 | | | | 944 | | | | 2,409 | | | | 2,559 | | | | 354 | | | | 1,866 | |
Class E | | | 433 | | | | 820 | | | | 49 | | | | 297 | | | | 15 | | | | 3 | | | | N/A | |
Class I | | | 45,469 | | | | 26,006 | | | | 5,712 | | | | 9,131 | | | | 15,927 | | | | 3,964 | | | | 8,736 | |
Class R | | | 354 | | | | 191 | | | | 19 | | | | 26 | | | | 511 | | | | 17 | | | | 63 | |
Class R6 | | | 172 | | | | 7,472 | | | | 62 | | | | 113 | | | | 529 | | | | 44 | | | | 283 | |
Class Y | | | 500 | | | | 6,138 | | | | 136 | | | | 342 | | | | 1,280 | | | | 39 | | | | 273 | |
| | | | | | | |
NET ASSET VALUE PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $10.86 | | | | $13.47 | | | | $15.08 | | | | $17.70 | | | | $15.65 | | | | $27.20 | | | | $9.55 | |
Class B | | | $10.86 | | | | $11.43 | | | | $13.74 | | | | $17.40 | | | | $13.00 | | | | $25.01 | | | | $9.54 | |
Class C | | | $10.86 | | | | $11.80 | | | | $14.17 | | | | $17.49 | | | | $13.58 | | | | $25.67 | | | | $9.55 | |
Class E | | | $10.86 | | | | $13.41 | | | | $15.20 | | | | $17.64 | | | | $15.86 | | | | $27.42 | | | | N/A | |
Class I | | | $10.86 | | | | $14.89 | | | | $15.45 | | | | $17.76 | | | | $16.10 | | | | $27.49 | | | | $9.55 | |
Class R | | | $10.86 | | | | $13.38 | | | | $15.06 | | | | $17.68 | | | | $15.56 | | | | $27.16 | | | | $9.53 | |
Class R6 | | | $10.86 | | | | $14.92 | | | | $15.50 | | | | $17.79 | | | | $16.17 | | | | $27.63 | | | | $9.55 | |
Class Y | | | $10.86 | | | | $14.51 | | | | $15.31 | | | | $17.73 | | | | $15.94 | | | | $27.40 | | | | $9.55 | |
| | | | | | | |
+COST | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at cost | | $ | 788,655 | | | $ | 882,921 | | | $ | 182,796 | | | $ | 306,153 | | | $ | 462,860 | | | $ | 190,358 | | | $ | 176,967 | |
Cash denominated in foreign currencies at cost | | | — | | | | — | | | | — | | | | — | | | | 23 | | | | 319 | | | | — | |
Written options premiums received at cost | | | — | | | | — | | | | — | | | | — | | | | 2,010 | | | | — | | | | — | |
(1)Consolidated Statement of Assets and Liabilities (See Note 6 in Notes to Financial Statements).
See Accompanying Notes to Financial Statements.
| | | | | | |
| 122 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | IVY FUNDS |
AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | | Ivy Global
Equity
Income Fund | | | Ivy Global
Growth
Fund | | | Ivy Global
Income
Allocation
Fund | | | Ivy High
Income
Fund | | | Ivy
International
Core Equity
Fund | | | Ivy Large
Cap Growth
Fund | | | Ivy Limited-
Term Bond
Fund | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value+ | | $ | 359,129 | | | $ | 482,263 | | | $ | 735,890 | | | $ | 4,631,873 | | | $ | 4,501,727 | | | $ | 1,737,796 | | | $ | 1,842,173 | |
Investments in affiliated securities at value+ | | | — | | | | — | | | | — | | | | 15,277 | | | | — | | | | — | | | | — | |
Investments at Value | | | 359,129 | | | | 482,263 | | | | 735,890 | | | | 4,647,150 | | | | 4,501,727 | | | | 1,737,796 | | | | 1,842,173 | |
Cash | | | — | * | | | 1 | | | | 95 | | | | 12,694 | | | | — | | | | — | * | | | 1 | |
Cash denominated in foreign currencies at value+ | | | — | | | | 1,650 | | | | — | | | | 48 | | | | 37,068 | | | | — | | | | — | |
Restricted cash | | | — | | | | — | | | | — | | | | 3,920 | | | | 69 | | | | — | | | | — | |
Investment securities sold receivable | | | 859 | | | | 2,993 | | | | 610 | | | | 18,351 | | | | 56,444 | | | | — | | | | 7,037 | |
Dividends and interest receivable | | | 1,077 | | | | 673 | | | | 7,184 | | | | 93,647 | | | | 11,332 | | | | 1,077 | | | | 13,299 | |
Capital shares sold receivable | | | 712 | | | | 640 | | | | 1,079 | | | | 11,562 | | | | 9,804 | | | | 1,034 | | | | 4,635 | |
Receivable from affiliates | | | 127 | | | | — | | | | 4 | | | | 5 | | | | 9 | | | | 213 | | | | 1 | |
Unrealized appreciation on forward foreign currency contracts | | | 369 | | | | 53 | | | | 286 | | | | 210 | | | | 488 | | | | — | | | | — | |
Prepaid and other assets | | | 55 | | | | 61 | | | | 67 | | | | 172 | | | | 166 | | | | 97 | | | | 136 | |
Total Assets | | | 362,328 | | | | 488,334 | | | | 745,215 | | | | 4,787,759 | | | | 4,617,107 | | | | 1,740,217 | | | | 1,867,282 | |
| | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased payable | | | 9,447 | | | | 4,007 | | | | 4,068 | | | | 30,061 | | | | 70,026 | | | | — | | | | 5,247 | |
Capital shares redeemed payable | | | 672 | | | | 916 | | | | 1,253 | | | | 14,159 | | | | 11,039 | | | | 3,381 | | | | 4,645 | |
Distributions payable | | | — | | | | — | | | | — | | | | 2,757 | | | | — | | | | — | | | | 295 | |
Independent Trustees and Chief Compliance Officer fees payable | | | 4 | | | | 76 | | | | 41 | | | | 191 | | | | 97 | | | | 116 | | | | 74 | |
Overdraft due to custodian | | | — | | | | — | | | | — | | | | — | | | | 104 | | | | — | | | | — | |
Distribution and service fees payable | | | 1 | | | | 2 | | | | 3 | | | | 42 | | | | 15 | | | | 8 | | | | 8 | |
Shareholder servicing payable | | | 79 | | | | 130 | | | | 182 | | | | 1,171 | | | | 933 | | | | 390 | | | | 301 | |
Investment management fee payable | | | 7 | | | | 11 | | | | 14 | | | | 69 | | | | 97 | | | | 32 | | | | 22 | |
Accounting services fee payable | | | 9 | | | | 12 | | | | 16 | | | | 23 | | | | 23 | | | | 23 | | | | 23 | |
Other liabilities | | | 27 | | | | 26 | | | | 59 | | | | 166 | | | | 154 | | | | 51 | | | | 39 | |
Total Liabilities | | | 10,246 | | | | 5,180 | | | | 5,636 | | | | 48,639 | | | | 82,488 | | | | 4,001 | | | | 10,654 | |
Total Net Assets | | $ | 352,082 | | | $ | 483,154 | | | $ | 739,579 | | | $ | 4,739,120 | | | $ | 4,534,619 | | | $ | 1,736,216 | | | $ | 1,856,628 | |
| | | | | | | |
NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 355,079 | | | $ | 430,151 | | | $ | 799,717 | | | $ | 5,709,668 | | | $ | 4,536,596 | | | $ | 1,175,196 | | | $ | 1,847,915 | |
Undistributed (distributions in excess of) net investment income | | | 751 | | | | (743 | ) | | | 2,569 | | | | (1,275 | ) | | | 68,893 | | | | 105 | | | | (515 | ) |
Accumulated net realized gain (loss) | | | (20,496 | ) | | | (15,004 | ) | | | (51,120 | ) | | | (574,732 | ) | | | (186,162 | ) | | | 57,345 | | | | (15,361 | ) |
Net unrealized appreciation (depreciation) | | | 16,748 | | | | 68,750 | | | | (11,587 | ) | | | (394,541 | ) | | | 115,292 | | | | 503,570 | | | | 24,589 | |
Total Net Assets | | $ | 352,082 | | | $ | 483,154 | | | $ | 739,579 | | | $ | 4,739,120 | | | $ | 4,534,619 | | | $ | 1,736,216 | | | $ | 1,856,628 | |
| | | | | | | |
CAPITAL SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 6,352 | | | | 2,989 | | | | 15,579 | | | | 192,522 | | | | 44,656 | | | | 26,910 | | | | 61,604 | |
Class B | | | 159 | | | | 59 | | | | 279 | | | | 11,246 | | | | 625 | | | | 719 | | | | 1,158 | |
Class C | | | 1,052 | | | | 705 | | | | 3,673 | | | | 137,723 | | | | 15,792 | | | | 6,685 | | | | 10,012 | |
Class E | | | N/A | | | | 3 | | | | 187 | | | | 1,231 | | | | 320 | | | | 643 | | | | 467 | |
Class I | | | 21,005 | | | | 7,521 | | | | 31,156 | | | | 230,005 | | | | 159,552 | | | | 48,911 | | | | 86,383 | |
Class R | | | 31 | | | | 62 | | | | 19 | | | | 9,272 | | | | 2,640 | | | | 1,227 | | | | 58 | |
Class R6 | | | 101 | | | | 205 | | | | 123 | | | | 6,038 | | | | 21,886 | | | | 17 | | | | 7,813 | |
Class Y | | | 350 | | | | 371 | | | | 102 | | | | 54,021 | | | | 23,103 | | | | 6,373 | | | | 1,910 | |
| | | | | | | |
NET ASSET VALUE PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $12.11 | | | | $40.45 | | | | $14.41 | | | | $7.38 | | | | $16.90 | | | | $18.74 | | | | $10.96 | |
Class B | | | $12.11 | | | | $34.93 | | | | $14.14 | | | | $7.38 | | | | $14.99 | | | | $15.02 | | | | $10.96 | |
Class C | | | $12.11 | | | | $35.19 | | | | $14.24 | | | | $7.38 | | | | $15.05 | | | | $16.06 | | | | $10.96 | |
Class E | | | N/A | | | | $40.66 | | | | $14.41 | | | | $7.38 | | | | $17.00 | | | | $18.72 | | | | $10.96 | |
Class I | | | $12.12 | | | | $41.12 | | | | $14.53 | | | | $7.38 | | | | $17.02 | | | | $19.56 | | | | $10.96 | |
Class R | | | $12.12 | | | | $40.25 | | | | $14.40 | | | | $7.38 | | | | $16.87 | | | | $18.18 | | | | $10.96 | |
Class R6 | | | $12.13 | | | | $41.26 | | | | $14.54 | | | | $7.38 | | | | $17.08 | | | | $19.64 | | | | $10.96 | |
Class Y | | | $12.11 | | | | $40.61 | | | | $14.47 | | | | $7.38 | | | | $17.01 | | | | $19.16 | | | | $10.96 | |
| | | | | | | |
+COST | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at cost | | $ | 342,757 | | | $ | 413,535 | | | $ | 747,735 | | | $ | 5,011,708 | | | $ | 4,386,956 | | | $ | 1,234,226 | | | $ | 1,817,584 | |
Investments in affiliated securities at cost | | | — | | | | — | | | | — | | | | 30,173 | | | | — | | | | — | | | | — | |
Cash denominated in foreign currencies at cost | | | — | | | | 1,650 | | | | — | | | | 48 | | | | 36,967 | | | | — | | | | — | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 123 | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | IVY FUNDS |
AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | | Ivy Managed
International
Opportunities
Fund | | | Ivy
Micro Cap
Growth
Fund | | | Ivy Mid
Cap Growth
Fund | | | Ivy Mid Cap
Income
Opportunities
Fund | | | Ivy Money
Market
Fund | | | Ivy
Municipal
Bond Fund | | | Ivy
Municipal
High Income
Fund | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value+ | | $ | 301 | | | $ | 173,254 | | | $ | 2,682,065 | | | $ | 211,246 | | | $ | 194,842 | | | $ | 238,179 | | | $ | 1,333,310 | |
Investments in affiliated securities at value+ | | | 193,803 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,605 | |
Investments at Value | | | 194,104 | | | | 173,254 | | | | 2,682,065 | | | | 211,246 | | | | 194,842 | | | | 238,179 | | | | 1,337,915 | |
Cash | | | 1 | | | | 1 | | | | 6 | | | | 1 | | | | 180 | | | | 1 | | | | 8,757 | |
Restricted cash | | | — | | | | — | | | | — | | | | — | | | | — | | | | 124 | | | | 998 | |
Investment securities sold receivable | | | 1,120 | | | | 2,427 | | | | 25,746 | | | | 1,041 | | | | — | | | | — | | | | 10 | |
Dividends and interest receivable | | | — | * | | | 22 | | | | 1,354 | | | | 275 | | | | 108 | | | | 2,400 | | | | 21,995 | |
Capital shares sold receivable | | | 121 | | | | 120 | | | | 2,981 | | | | 963 | | | | 823 | | | | 322 | | | | 1,610 | |
Receivable from affiliates | | | 1 | | | | — | | | | 199 | | | | 96 | | | | 283 | | | | — | * | | | 7 | |
Variation margin receivable | | | — | | | | — | | | | — | | | | — | | | | — | | | | 44 | | | | 355 | |
Prepaid and other assets | | | 38 | | | | 37 | | | | 118 | | | | 64 | | | | 40 | | | | 43 | | | | 75 | |
Total Assets | | | 195,385 | | | | 175,861 | | | | 2,712,469 | | | | 213,686 | | | | 196,276 | | | | 241,113 | | | | 1,371,722 | |
| | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities purchased payable | | | 1,120 | | | | 3,632 | | | | 1,625 | | | | 1,728 | | | | — | | | | 1,096 | | | | 7,588 | |
Capital shares redeemed payable | | | 305 | | | | 445 | | | | 11,132 | | | | 367 | | | | 2,563 | | | | 344 | | | | 2,827 | |
Distributions payable | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 41 | | | | 429 | |
Independent Trustees and Chief Compliance Officer fees payable | | | 12 | | | | 4 | | | | 106 | | | | 1 | | | | 23 | | | | 12 | | | | 31 | |
Distribution and service fees payable | | | 1 | | | | 1 | | | | 14 | | | | 1 | | | | 1 | | | | 1 | | | | 9 | |
Shareholder servicing payable | | | 19 | | | | 60 | | | | 860 | | | | 38 | | | | 40 | | | | 36 | | | | 182 | |
Investment management fee payable | | | — | * | | | 4 | | | | 61 | | | | 5 | | | | 2 | | | | 3 | | | | 18 | |
Accounting services fee payable | | | 4 | | | | 6 | | | | 17 | | | | 7 | | | | 6 | | | | 8 | | | | 22 | |
Written options at value+ | | | — | | | | — | | | | 15,435 | | | | — | | | | — | | | | — | | | | — | |
Other liabilities | | | 6 | | | | 15 | | | | 124 | | | | 11 | | | | 15 | | | | 11 | | | | 22 | |
Total Liabilities | | | 1,467 | | | | 4,167 | | | | 29,374 | | | | 2,158 | | | | 2,651 | | | | 1,552 | | | | 11,128 | |
Total Net Assets | | $ | 193,918 | | | $ | 171,694 | | | $ | 2,683,095 | | | $ | 211,528 | | | $ | 193,625 | | | $ | 239,561 | | | $ | 1,360,594 | |
| | | | | | | |
NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 194,383 | | | $ | 137,472 | | | $ | 2,232,583 | | | $ | 196,020 | | | $ | 193,624 | | | $ | 227,099 | | | $ | 1,308,818 | |
Undistributed (distributions in excess of) net investment income | | | 187 | | | | (1,466 | ) | | | (13,499 | ) | | | 662 | | | | — | | | | 171 | | | | 3,605 | |
Accumulated net realized gain (loss) | | | (34,963 | ) | | | 1,629 | | | | 81,696 | | | | (6,585 | ) | | | 1 | | | | (3,178 | ) | | | (12,672 | ) |
Net unrealized appreciation | | | 34,311 | | | | 34,059 | | | | 382,315 | | | | 21,431 | | | | — | | | | 15,469 | | | | 60,843 | |
Total Net Assets | | $ | 193,918 | | | $ | 171,694 | | | $ | 2,683,095 | | | $ | 211,528 | | | $ | 193,625 | | | $ | 239,561 | | | $ | 1,360,594 | |
| | | | | | | |
CAPITAL SHARES OUTSTANDING: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 7,499 | | | | 3,668 | | | | 26,106 | | | | 7,204 | | | | 146,334 | | | | 7,454 | | | | 59,549 | |
Class B | | | 127 | | | | 73 | | | | 1,090 | | | | N/A | | | | 4,506 | | | | 202 | | | | 2,485 | |
Class C | | | 467 | | | | 337 | | | | 13,412 | | | | 882 | | | | 36,033 | | | | 2,518 | | | | 42,712 | |
Class E | | | 44 | | | | N/A | | | | 384 | | | | 202 | | | | 6,752 | | | | N/A | | | | N/A | |
Class I | | | 11,130 | | | | 2,987 | | | | 63,265 | | | | 8,280 | | | | N/A | | | | 9,366 | | | | 145,586 | |
Class R | | | 58 | | | | 25 | | | | 3,090 | | | | 202 | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | N/A | | | | 79 | | | | 3,972 | | | | 290 | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | 64 | | | | 45 | | | | 17,751 | | | | 947 | | | | N/A | | | | 71 | | | | 3,263 | |
| | | | | | | |
NET ASSET VALUE PER SHARE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | $9.98 | | | | $23.62 | | | | $20.30 | | | | $11.74 | | | | $1.00 | | | | $12.22 | | | | $5.37 | |
Class B | | | $9.73 | | | | $22.28 | | | | $16.81 | | | | N/A | | | | $1.00 | | | | $12.22 | | | | $5.37 | |
Class C | | | $9.76 | | | | $22.63 | | | | $17.80 | | | | $11.71 | | | | $1.00 | | | | $12.22 | | | | $5.37 | |
Class E | | | $9.99 | | | | N/A | | | | $19.85 | | | | $11.75 | | | | $1.00 | | | | N/A | | | | N/A | |
Class I | | | $10.03 | | | | $24.17 | | | | $21.60 | | | | $11.76 | | | | N/A | | | | $12.22 | | | | $5.37 | |
Class R | | | $9.94 | | | | $23.52 | | | | $19.94 | | | | $11.72 | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | N/A | | | | $24.30 | | | | $21.70 | | | | $11.76 | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | $9.98 | | | | $24.40 | | | | $21.09 | | | | $11.74 | | | | N/A | | | | $12.22 | | | | $5.37 | |
| | | | | | | |
+COST | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at cost | | $ | 301 | | | $ | 139,195 | | | $ | 2,297,459 | | | $ | 189,815 | | | $ | 194,842 | | | $ | 222,787 | | | $ | 1,273,655 | |
Investments in affiliated securities at cost | | | 159,492 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 4,054 | |
Written options premiums received at cost | | | — | | | | — | | | | 13,144 | | | | — | | | | — | | | | — | | | | — | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | |
| 124 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF ASSETS AND LIABILITIES | | IVY FUNDS |
AS OF SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | |
| (In thousands, except per share amounts) | | Ivy Small
Cap Growth
Fund | | | Ivy Small
Cap Value
Fund | | | Ivy Tax-
Managed
Equity Fund | | | Ivy Value
Fund | |
ASSETS | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at value+ | | $ | 960,801 | | | $ | 326,102 | | | $ | 117,118 | | | $ | 283,434 | |
Investments at Value | | | 960,801 | | | | 326,102 | | | | 117,118 | | | | 283,434 | |
Cash | | | — | * | | | 1 | | | | — | * | | | — | * |
Investment securities sold receivable | | | 14,733 | | | | 2,963 | | | | 1,825 | | | | 346 | |
Dividends and interest receivable | | | 57 | | | | 360 | | | | 61 | | | | 510 | |
Capital shares sold receivable | | | 717 | | | | 2,479 | | | | 61 | | | | 198 | |
Receivable from affiliates | | | 9 | | | | — | | | | — | * | | | — | |
Unrealized appreciation on swap agreements | | | 2,259 | | | | — | | | | — | | | | — | |
Prepaid and other assets | | | 73 | | | | 55 | | | | 32 | | | | 52 | |
Total Assets | | | 978,649 | | | | 331,960 | | | | 119,097 | | | | 284,540 | |
| | | | |
LIABILITIES | | | | | | | | | | | | | | | | |
Investment securities purchased payable | | | 3,489 | | | | 2,884 | | | | 359 | | | | 486 | |
Capital shares redeemed payable | | | 3,531 | | | | 339 | | | | 472 | | | | 790 | |
Independent Trustees and Chief Compliance Officer fees payable | | | 157 | | | | 29 | | | | 2 | | | | 18 | |
Distribution and service fees payable | | | 8 | | | | 2 | | | | 1 | | | | 1 | |
Shareholder servicing payable | | | 226 | | | | 98 | | | | 22 | | | | 89 | |
Investment management fee payable | | | 23 | | | | 7 | | | | 2 | | | | 5 | |
Accounting services fee payable | | | 20 | | | | 9 | | | | 5 | | | | 9 | |
Written options at value+ | | | — | | | | — | | | | — | | | | 87 | |
Other liabilities | | | 37 | | | | 21 | | | | 6 | | | | 21 | |
Total Liabilities | | | 7,491 | | | | 3,389 | | | | 869 | | | | 1,506 | |
Total Net Assets | | $ | 971,158 | | | $ | 328,571 | | | $ | 118,228 | | | $ | 283,034 | |
| | | | |
NET ASSETS | | | | | | | | | | | | | | | | |
Capital paid in (shares authorized – unlimited) | | $ | 664,526 | | | $ | 264,285 | | | $ | 98,542 | | | $ | 253,022 | |
Undistributed (distributions in excess of) net investment income | | | (12,474 | ) | | | 23 | | | | (311 | ) | | | 875 | |
Accumulated net realized gain (loss) | | | 56,963 | | | | 13,641 | | | | (2,256 | ) | | | (4,155 | ) |
Net unrealized appreciation | | | 262,143 | | | | 50,622 | | | | 22,253 | | | | 33,292 | |
Total Net Assets | | $ | 971,158 | | | $ | 328,571 | | | $ | 118,228 | | | $ | 283,034 | |
| | | | |
CAPITAL SHARES OUTSTANDING: | | | | | | | | | | | | | | | | |
Class A | | | 13,907 | | | | 9,446 | | | | 2,038 | | | | 5,072 | |
Class B | | | 612 | | | | 213 | | | | 80 | | | | 148 | |
Class C | | | 11,940 | | | | 1,272 | | | | 292 | | | | 866 | |
Class E | | | 412 | | | | 10 | | | | N/A | | | | 7 | |
Class I | | | 12,324 | | | | 7,105 | | | | 3,608 | | | | 7,056 | |
Class R | | | 2,711 | | | | 230 | | | | N/A | | | | 15 | |
Class R6 | | | 2,284 | | | | 261 | | | | N/A | | | | 313 | |
Class Y | | | 11,223 | | | | 671 | | | | 28 | | | | 152 | |
| | | | |
NET ASSET VALUE PER SHARE: | | | | | | | | | | | | | | | | |
Class A | | | $16.37 | | | | $16.77 | | | | $19.50 | | | | $20.78 | |
Class B | | | $12.74 | | | | $13.83 | | | | $18.75 | | | | $19.39 | |
Class C | | | $13.77 | | | | $14.69 | | | | $18.69 | | | | $20.12 | |
Class E | | | $16.25 | | | | $17.37 | | | | N/A | | | | $20.86 | |
Class I | | | $20.57 | | | | $18.02 | | | | $19.68 | | | | $20.86 | |
Class R | | | $16.16 | | | | $16.69 | | | | N/A | | | | $20.77 | |
Class R6 | | | $20.65 | | | | $18.15 | | | | N/A | | | | $20.91 | |
Class Y | | | $19.60 | | | | $17.54 | | | | $19.52 | | | | $20.83 | |
| | | | |
+COST | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities at cost | | $ | 700,921 | | | $ | 275,480 | | | $ | 94,865 | | | $ | 250,179 | |
Written options premiums received at cost | | | — | | | | — | | | | — | | | | 124 | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 125 | |
| | |
| STATEMENTS OF OPERATIONS | | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (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 | | $ | 241 | | | $ | 7,397 | | | $ | 2,694 | | | $ | 4,548 | | | $ | 5,081 | | | $ | 4,879 | | | $ | 416 | |
Foreign dividend withholding tax | | | — | | | | (154 | ) | | | (195 | ) | | | (60 | ) | | | (555 | ) | | | (387 | ) | | | (7 | ) |
Interest and amortization from unaffiliated securities | | | 12,543 | | | | 34 | | | | 154 | | | | 107 | | | | 53 | | | | 4 | | | | 3,741 | |
Foreign interest withholding tax | | | — | | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | — | |
Total Investment Income | | | 12,784 | | | | 7,277 | | | | 2,653 | | | | 4,595 | | | | 4,578 | | | | 4,496 | | | | 4,150 | |
| | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fee | | | 2,026 | | | | 3,804 | | | | 1,034 | | | | 1,305 | | | | 2,715 | | | | 958 | | | | 551 | |
Distribution and service fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 582 | | | | 533 | | | | 173 | | | | 266 | | | | 376 | | | | 151 | | | | 118 | |
Class B | | | 32 | | | | 45 | | | | 5 | | | | 41 | | | | 22 | | | | 4 | | | | 15 | |
Class C | | | 174 | | | | 636 | | | | 70 | | | | 219 | | | | 166 | | | | 50 | | | | 95 | |
Class E | | | 5 | | | | 13 | | | | 1 | | | | 7 | | | | — | * | | | — | * | | | N/A | |
Class R | | | 10 | | | | 6 | | | | 1 | | | | 1 | | | | 16 | | | | 1 | | | | 1 | |
Class Y | | | 6 | | | | 124 | | | | 3 | | | | 8 | | | | 20 | | | | 2 | | | | 3 | |
Shareholder servicing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 479 | | | | 431 | | | | 290 | | | | 232 | | | | 508 | | | | 237 | | | | 146 | |
Class B | | | 15 | | | | 17 | | | | 6 | | | | 10 | | | | 15 | | | | 3 | | | | 6 | |
Class C | | | 31 | | | | 106 | | | | 16 | | | | 28 | | | | 46 | | | | 13 | | | | 17 | |
Class E | | | 9 | | | | 22 | | | | 3 | | | | 14 | | | | — | * | | | — | * | | | N/A | |
Class I | | | 215 | | | | 232 | | | | 46 | | | | 80 | | | | 152 | | | | 63 | | | | 49 | |
Class R | | | 5 | | | | 3 | | | | — | * | | | 1 | | | | 8 | | | | 1 | | | | 1 | |
Class R6 | | | — | * | | | 7 | | | | — | * | | | — | * | | | 1 | | | | — | * | | | — | * |
Class Y | | | 3 | | | | 76 | | | | 2 | | | | 5 | | | | 14 | | | | 1 | | | | 2 | |
Registration fees | | | 69 | | | | 66 | | | | 49 | | | | 54 | | | | 64 | | | | 50 | | | | 46 | |
Custodian fees | | | 16 | | | | 12 | | | | 24 | | | | 6 | | | | 58 | | | | 17 | | | | 6 | |
Independent Trustees and Chief Compliance Officer fees | | | 13 | | | | 19 | | | | 3 | | | | 6 | | | | 8 | | | | 3 | | | | 3 | |
Accounting services fee | | | 111 | | | | 138 | | | | 48 | | | | 69 | | | | 78 | | | | 48 | | | | 37 | |
Professional fees | | | 38 | | | | 24 | | | | 24 | | | | 17 | | | | 36 | | | | 24 | | | | 32 | |
Other | | | 31 | | | | 42 | | | | 19 | | | | 19 | | | | 70 | | | | 20 | | | | 13 | |
Total Expenses | | | 3,870 | | | | 6,356 | | | | 1,817 | | | | 2,388 | | | | 4,373 | | | | 1,646 | | | | 1,141 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (4 | ) | | | (398 | ) | | | (168 | ) | | | (10 | ) | | | (268 | ) | | | — | | | | (257 | ) |
Total Net Expenses | | | 3,866 | | | | 5,958 | | | | 1,649 | | | | 2,378 | | | | 4,105 | | | | 1,646 | | | | 884 | |
Net Investment Income | | | 8,918 | | | | 1,319 | | | | 1,004 | | | | 2,217 | | | | 473 | | | | 2,850 | | | | 3,266 | |
| | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 10,798 | | | | 7,738 | | | | (15,558 | ) | | | 8,126 | | | | 549 | | | | (1,554 | ) | | | (1,941 | ) |
Futures contracts | | | (637 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Written options | | | — | | | | — | | | | — | | | | — | | | | 2,518 | | | | — | | | | — | |
Forward foreign currency contracts | | | — | | | | — | | | | (2,174 | ) | | | — | | | | (274 | ) | | | 1,896 | | | | 211 | |
Foreign currency exchange transactions | | | — | | | | — | | | | (4 | ) | | | 3 | | | | (1,703 | ) | | | (1 | ) | | | 25 | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 14,286 | | | | 53,013 | | | | 25,662 | | | | 7,130 | | | | 78,042 | | | | 3,842 | | | | 7,339 | |
Futures contracts | | | (5 | ) | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Written options | | | — | | | | — | | | | — | | | | — | | | | (1,448 | ) | | | — | | | | — | |
Forward foreign currency contracts | | | — | | | | — | | | | 1,616 | | | | — | | | | (546 | ) | | | 147 | | | | 6 | |
Foreign currency exchange transactions | | | — | | | | — | | | | (24 | ) | | | — | | | | 892 | | | | (3 | ) | | | 9 | |
Net Realized and Unrealized Gain | | | 24,442 | | | | 60,751 | | | | 9,518 | | | | 15,259 | | | | 78,030 | | | | 4,327 | | | | 5,649 | |
Net Increase in Net Assets Resulting from Operations | | $ | 33,360 | | | $ | 62,070 | | | $ | 10,522 | | | $ | 17,476 | | | $ | 78,503 | | | $ | 7,177 | | | $ | 8,915 | |
| * | Not shown due to rounding. |
| (1) | Consolidated Statement of Operations (See Note 6 in Notes to Financial Statements). |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 126 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF OPERATIONS | | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | Ivy Global
Equity
Income Fund | | | Ivy Global
Growth
Fund | | | Ivy Global
Income
Allocation
Fund | | | Ivy High
Income
Fund | | | Ivy
International
Core Equity
Fund | | | Ivy Large
Cap Growth
Fund | | | Ivy Limited-
Term Bond
Fund | |
INVESTMENT INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from unaffiliated securities | | $ | 9,903 | | | $ | 3,470 | | | $ | 12,999 | | | $ | 1,582 | | | $ | 86,572 | | | $ | 9,783 | | | $ | — | |
Foreign dividend withholding tax | | | (622 | ) | | | (216 | ) | | | (638 | ) | | | — | | | | (7,131 | ) | | | (33 | ) | | | — | |
Interest and amortization from unaffiliated securities | | | 11 | | | | 73 | | | | 11,042 | | | | 208,921 | | | | 302 | | | | 60 | | | | 22,877 | |
Foreign interest withholding tax | | | — | | | | — | * | | | — | | | | — | | | | (4 | ) | | | — | | | | — | |
Total Investment Income | | | 9,292 | | | | 3,327 | | | | 23,403 | | | | 210,503 | | | | 79,739 | | | | 9,810 | | | | 22,877 | |
| | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fee | | | 1,131 | | | | 2,089 | | | | 2,607 | | | | 12,694 | | | | 18,088 | | | | 5,931 | | | | 3,986 | |
Distribution and service fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 205 | | | | 285 | | | | 520 | | | | 2,061 | | | | 1,401 | | | | 1,045 | | | | 1,390 | |
Class B | | | 10 | | | | 12 | | | | 21 | | | | 421 | | | | 47 | | | | 55 | | | | 67 | |
Class C | | | 67 | | | | 123 | | | | 262 | | | | 5,163 | | | | 1,234 | | | | 543 | | | | 599 | |
Class E | | | N/A | | | | — | * | | | 4 | | | | 11 | | | | 7 | | | | 15 | | | | 6 | |
Class R | | | 1 | | | | 6 | | | | 1 | | | | 166 | | | | 101 | | | | 56 | | | | 2 | |
Class Y | | | 6 | | | | 19 | | | | 2 | | | | 513 | | | | 685 | | | | 154 | | | | 23 | |
Shareholder servicing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 262 | | | | 385 | | | | 542 | | | | 1,433 | | | | 1,325 | | | | 880 | | | | 849 | |
Class B | | | 2 | | | | 9 | | | | 8 | | | | 67 | | | | 19 | | | | 20 | | | | 15 | |
Class C | | | 9 | | | | 33 | | | | 33 | | | | 605 | | | | 197 | | | | 80 | | | | 82 | |
Class E | | | N/A | | | | — | * | | | 8 | | | | 21 | | | | 17 | | | | 23 | | | | 6 | |
Class I | | | 119 | | | | 168 | | | | 224 | | | | 1,263 | | | | 1,820 | | | | 527 | | | | 419 | |
Class R | | | 1 | | | | 3 | | | | — | * | | | 84 | | | | 52 | | | | 28 | | | | 1 | |
Class R6 | | | — | * | | | — | * | | | — | * | | | 2 | | | | 18 | | | | — | * | | | 3 | |
Class Y | | | 3 | | | | 12 | | | | 2 | | | | 320 | | | | 459 | | | | 94 | | | | 15 | |
Registration fees | | | 52 | | | | 55 | | | | 65 | | | | 112 | | | | 105 | | | | 78 | | | | 146 | |
Custodian fees | | | 19 | | | | 30 | | | | 22 | | | | 17 | | | | 208 | | | | 14 | | | | 15 | |
Independent Trustees and Chief Compliance Officer fees | | | 5 | | | | 8 | | | | 11 | | | | 80 | | | | 79 | | | | 28 | | | | 29 | |
Accounting services fee | | | 53 | | | | 73 | | | | 97 | | | | 138 | | | | 138 | | | | 138 | | | | 138 | |
Professional fees | | | 20 | | | | 28 | | | | 31 | | | | 109 | | | | 71 | | | | 32 | | | | 36 | |
Other | | | 22 | | | | 30 | | | | 59 | | | | 224 | | | | 144 | | | | 65 | | | | 50 | |
Total Expenses | | | 1,987 | | | | 3,368 | | | | 4,519 | | | | 25,504 | | | | 26,215 | | | | 9,806 | | | | 7,877 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (127 | ) | | | — | | | | (4 | ) | | | (5 | ) | | | (9 | ) | | | (213 | ) | | | (1 | ) |
Total Net Expenses | | | 1,860 | | | | 3,368 | | | | 4,515 | | | | 25,499 | | | | 26,206 | | | | 9,593 | | | | 7,876 | |
Net Investment Income (Loss) | | | 7,432 | | | | (41 | ) | �� | | 18,888 | | | | 185,004 | | | | 53,533 | | | | 217 | | | | 15,001 | |
| | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | (3,975 | ) | | | (9,326 | ) | | | 7,563 | | | | (62,369 | ) | | | (43,666 | ) | | | 81,331 | | | | 7,503 | |
Written options | | | — | | | | — | | | | 483 | | | | — | | | | (174 | ) | | | — | | | | — | |
Swap agreements | | | — | | | | — | | | | — | | | | 1,269 | | | | — | | | | — | | | | — | |
Forward foreign currency contracts | | | 2,501 | | | | (330 | ) | | | 2,626 | | | | 145 | | | | 32,258 | | | | — | | | | — | |
Foreign currency exchange transactions | | | (63 | ) | | | (70 | ) | | | 14 | | | | 16 | | | | 765 | | | | — | | | | — | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 7,126 | | | | 24,676 | | | | 11,203 | | | | 378,015 | | | | 218,904 | | | | 22,516 | | | | 8,203 | |
Investments in affiliated securities | | | — | | | | — | | | | — | | | | (1,610 | ) | | | — | | | | — | | | | — | |
Written options | | | — | | | | — | | | | (337 | ) | | | — | | | | 126 | | | | — | | | | — | |
Swap agreements | | | — | | | | — | | | | — | | | | (107 | ) | | | — | | | | — | | | | — | |
Forward foreign currency contracts | | | 448 | | | | 53 | | | | 374 | | | | 282 | | | | 2,364 | | | | — | | | | — | |
Foreign currency exchange transactions | | | (22 | ) | | | 8 | | | | (16 | ) | | | (43 | ) | | | (153 | ) | | | — | | | | — | |
Net Realized and Unrealized Gain | | | 6,015 | | | | 15,011 | | | | 21,910 | | | | 315,598 | | | | 210,424 | | | | 103,847 | | | | 15,706 | |
Net Increase in Net Assets Resulting from Operations | | $ | 13,447 | | | $ | 14,970 | | | $ | 40,798 | | | $ | 500,602 | | | $ | 263,957 | | | $ | 104,064 | | | $ | 30,707 | |
| * | Not shown due to rounding. |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 127 | |
| | |
| STATEMENTS OF OPERATIONS | | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (In thousands) | | Ivy Managed
International
Opportunities
Fund | | | Ivy Micro
Cap Growth
Fund | | | Ivy Mid
Cap Growth
Fund | | | Ivy Mid Cap
Income
Opportunities
Fund | | | Ivy Money
Market
Fund | | | Ivy
Municipal
Bond Fund | | | Ivy
Municipal
High Income
Fund | |
INVESTMENT INCOME | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from unaffiliated securities | | $ | — | | | $ | 356 | | | $ | 15,623 | | | $ | 2,588 | | | $ | — | | | $ | 73 | | | $ | — | |
Dividends from affiliated securities | | | 738 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Interest and amortization from unaffiliated securities | | | 1 | | | | 23 | | | | 43 | | | | 17 | | | | 581 | | | | 3,661 | | | | 34,407 | |
Interest and amortization from affiliated securities | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 166 | |
Total Investment Income | | | 739 | | | | 379 | | | | 15,666 | | | | 2,605 | | | | 581 | | | | 3,734 | | | | 34,573 | |
| | | | | | | |
EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment management fee | | | 49 | | | | 771 | | | | 12,015 | | | | 717 | | | | 340 | | | | 624 | | | | 3,306 | |
Distribution and service fees: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 161 | | | | 135 | | | | 826 | | | | 117 | | | | — | | | | 174 | | | | 444 | |
Class B | | | 7 | | | | 8 | | | | 93 | | | | N/A | | | | 26 | | | | 13 | | | | 68 | |
Class C | | | 23 | | | | 35 | | | | 1,266 | | | | 37 | | | | 192 | | | | 157 | | | | 1,192 | |
Class E | | | — | * | | | N/A | | | | 10 | | | | 3 | | | | — | | | | N/A | | | | N/A | |
Class R | | | 1 | | | | 1 | | | | 166 | | | | 6 | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | 1 | | | | 1 | | | | 521 | | | | 7 | | | | N/A | | | | 1 | | | | 24 | |
Shareholder servicing: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 57 | | | | 203 | | | | 841 | | | | 94 | | | | 113 | | | | 73 | | | | 146 | |
Class B | | | 2 | | | | 4 | | | | 21 | | | | N/A | | | | 7 | | | | 1 | | | | 6 | |
Class C | | | 3 | | | | 13 | | | | 225 | | | | 6 | | | | 23 | | | | 15 | | | | 68 | |
Class E | | | — | * | | | N/A | | | | 20 | | | | — | * | | | 7 | | | | N/A | | | | N/A | |
Class I | | | 3 | | | | 42 | | | | 1,280 | | | | 46 | | | | N/A | | | | 49 | | | | 574 | |
Class R | | | — | * | | | 1 | | | �� | 87 | | | | 3 | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | N/A | | | | — | * | | | 4 | | | | — | * | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | — | * | | | 1 | | | | 327 | | | | 5 | | | | N/A | | | | 1 | | | | 15 | |
Registration fees | | | 43 | | | | 45 | | | | 84 | | | | 46 | | | | 48 | | | | 47 | | | | 64 | |
Custodian fees | | | 4 | | | | 5 | | | | 30 | | | | 5 | | | | 10 | | | | 6 | | | | 12 | |
Independent Trustees and Chief Compliance Officer fees | | | 3 | | | | 3 | | | | 45 | | | | 3 | | | | 4 | | | | 4 | | | | 24 | |
Accounting services fee | | | 24 | | | | 36 | | | | 131 | | | | 38 | | | | 38 | | | | 47 | | | | 132 | |
Professional fees | | | 12 | | | | 14 | | | | 44 | | | | 17 | | | | 22 | | | | 18 | | | | 43 | |
Other | | | 8 | | | | 15 | | | | 159 | | | | 9 | | | | 14 | | | | 10 | | | | 30 | |
Total Expenses | | | 401 | | | | 1,333 | | | | 18,195 | | | | 1,159 | | | | 844 | | | | 1,240 | | | | 6,148 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (1 | ) | | | — | | | | (199 | ) | | | (76 | ) | | | (283 | ) | | | — | * | | | (7 | ) |
Total Net Expenses | | | 400 | | | | 1,333 | | | | 17,996 | | | | 1,083 | | | | 561 | | | | 1,240 | | | | 6,141 | |
Net Investment Income (Loss) | | | 339 | | | | (954 | ) | | | (2,330 | ) | | | 1,522 | | | | 20 | | | | 2,494 | | | | 28,432 | |
| | | | | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | — | | | | 11,197 | | | | 108,544 | | | | (2,145 | ) | | | 9 | | | | 19 | | | | 2,695 | |
Investments in affiliated securities | | | 5,625 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Futures contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | (48 | ) | | | (400 | ) |
Written options | | | — | | | | — | | | | (199 | ) | | | — | | | | — | | | | — | | | | — | |
Foreign currency exchange transactions | | | — | | | | — | | | | 9 | | | | — | | | | — | | | | — | | | | — | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | — | | | | 32,517 | | | | 98,107 | | | | 12,079 | | | | — | | | | 1,609 | | | | 18,440 | |
Investments in affiliated securities | | | 4,521 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (12 | ) |
Futures contracts | | | — | | | | — | | | | — | | | | — | | | | — | | | | 77 | | | | 637 | |
Written options | | | — | | | | — | | | | (2,107 | ) | | | — | | | | — | | | | — | | | | — | |
Net Realized and Unrealized Gain | | | 10,146 | | | | 43,714 | | | | 204,354 | | | | 9,934 | | | | 9 | | | | 1,657 | | | | 21,360 | |
Net Increase in Net Assets Resulting from
Operations | | $ | 10,485 | | | $ | 42,760 | | | $ | 202,024 | | | $ | 11,456 | | | $ | 29 | | | $ | 4,151 | | | $ | 49,792 | |
| * | Not shown due to rounding. |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 128 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF OPERATIONS | | IVY FUNDS |
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (UNAUDITED)
| | | | | | | | | | | | | | | | |
| (In thousands) | | Ivy Small
Cap Growth
Fund | | | Ivy Small
Cap Value
Fund | | | Ivy Tax-
Managed
Equity Fund | | | Ivy Value
Fund | |
INVESTMENT INCOME | | | | | | | | | | | | | | | | |
Dividends from unaffiliated securities | | $ | 2,883 | | | $ | 2,104 | | | $ | 442 | | | $ | 3,745 | |
Foreign dividend withholding tax | | | (10 | ) | | | — | * | | | (9 | ) | | | (15 | ) |
Interest and amortization from unaffiliated securities | | | 116 | | | | 27 | | | | 17 | | | | 45 | |
Total Investment Income | | | 2,989 | | | | 2,131 | | | | 450 | | | | 3,775 | |
| | | | |
EXPENSES | | | | | | | | | | | | | | | | |
Investment management fee | | | 4,098 | | | | 1,208 | | | | 390 | | | | 986 | |
Distribution and service fees: | | | | | | | | | | | | | | | | |
Class A | | | 347 | | | | 219 | | | | 90 | | | | 218 | |
Class B | | | 39 | | | | 13 | | | | 7 | | | | 15 | |
Class C | | | 837 | | | | 81 | | | | 28 | | | | 90 | |
Class E | | | 8 | | | | — | * | | | N/A | | | | — | * |
Class R | | | 108 | | | | 8 | | | | N/A | | | | 1 | |
Class Y | | | 265 | | | | 11 | | | | 1 | | | | 2 | |
Shareholder servicing: | | | | | | | | | | | | | | | | |
Class A | | | 357 | | | | 280 | | | | 51 | | | | 239 | |
Class B | | | 12 | | | | 6 | | | | 1 | | | | 8 | |
Class C | | | 136 | | | | 21 | | | | 4 | | | | 15 | |
Class E | | | 18 | | | | — | * | | | N/A | | | | — | * |
Class I | | | 176 | | | | 62 | | | | 33 | | | | 69 | |
Class R | | | 56 | | | | 4 | | | | N/A | | | | — | * |
Class R6 | | | 2 | | | | — | * | | | N/A | | | | — | * |
Class Y | | | 167 | | | | 7 | | | | — | * | | | 2 | |
Registration fees | | | 63 | | | | 52 | | | | 36 | | | | 51 | |
Custodian fees | | | 12 | | | | 12 | | | | 4 | | | | 7 | |
Independent Trustees and Chief Compliance Officer fees | | | 16 | | | | 4 | | | | 2 | | | | 5 | |
Accounting services fee | | | 120 | | | | 52 | | | | 33 | | | | 49 | |
Professional fees | | | 28 | | | | 21 | | | | 13 | | | | 22 | |
Other | | | 48 | | | | 18 | | | | 6 | | | | 58 | |
Total Expenses | | | 6,913 | | | | 2,079 | | | | 699 | | | | 1,837 | |
Less: | | | | | | | | | | | | | | | | |
Expenses in excess of limit | | | (9 | ) | | | — | | | | — | * | | | — | |
Total Net Expenses | | | 6,904 | | | | 2,079 | | | | 699 | | | | 1,837 | |
Net Investment Income (Loss) | | | (3,915 | ) | | | 52 | | | | (249 | ) | | | 1,938 | |
| | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | | | | | | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 42,944 | | | | 19,590 | | | | (1,741 | ) | | | 948 | |
Written options | | | — | | | | — | | | | — | | | | 627 | |
Swap agreements | | | 2,998 | | | | — | | | | — | | | | — | |
Net change in unrealized appreciation (depreciation) on: | | | | | | | | | | | | | | | | |
Investments in unaffiliated securities | | | 51,412 | | | | 23,516 | | | | 7,085 | | | | 13,998 | |
Written options | | | — | | | | — | | | | — | | | | 557 | |
Swap agreements | | | 3,125 | | | | — | | | | — | | | | — | |
Net Realized and Unrealized Gain | | | 100,479 | | | | 43,106 | | | | 5,344 | | | | 16,130 | |
Net Increase in Net Assets Resulting from Operations | | $ | 96,564 | | | $ | 43,158 | | | $ | 5,095 | | | $ | 18,068 | |
| * | Not shown due to rounding. |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 129 | |
| | |
| 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
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 8,918 | | | $ | 17,162 | | | $ | 1,319 | | | $ | 1,834 | | | $ | 1,004 | | | $ | 2,178 | |
Net realized gain (loss) on investments | | | 10,161 | | | | (7,139 | ) | | | 7,738 | | | | 51,498 | | | | (17,736 | ) | | | (2,886 | ) |
Net change in unrealized appreciation (depreciation) | | | 14,281 | | | | (8,352 | ) | | | 53,013 | | | | (105,917 | ) | | | 27,254 | | | | (33,823 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 33,360 | | | | 1,671 | | | | 62,070 | | | | (52,585 | ) | | | 10,522 | | | | (34,531 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (5,626 | ) | | | (17,219 | ) | | | — | | | | (163 | ) | | | — | | | | (1,796 | ) |
Class B | | | (46 | ) | | | (87 | ) | | | — | | | | — | | | | — | | | | — | |
Class C | | | (294 | ) | | | (460 | ) | | | — | | | | — | | | | — | | | | (46 | ) |
Class E | | | (53 | ) | | | (89 | ) | | | — | | | | — | | | | — | | | | (7 | ) |
Class I | | | (3,568 | ) | | | (243 | ) | | | — | | | | (255 | ) | | | — | | | | (88 | ) |
Class R | | | (41 | ) | | | (19 | ) | | | — | | | | — | | | | — | | | | (2 | ) |
Class R6 | | | (27 | ) | | | (44 | ) | | | — | | | | (68 | ) | | | — | | | | (19 | ) |
Class Y | | | (57 | ) | | | (68 | ) | | | — | | | | (141 | ) | | | — | | | | (34 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | (39,800 | ) | | | — | | | | — | |
Class B | | | — | | | | — | | | | — | | | | (718 | ) | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | (10,219 | ) | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | (698 | ) | | | — | | | | — | |
Class I | | | — | | | | — | | | | — | | | | (13,556 | ) | | | — | | | | — | |
Class R | | | — | | | | — | | | | — | | | | (179 | ) | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | — | | | | (2,897 | ) | | | — | | | | — | |
Class Y | | | — | | | | — | | | | — | | | | (7,899 | ) | | | — | | | | — | |
Total Distributions to Shareholders | | | (9,712 | ) | | | (18,229 | ) | | | — | | | | (76,593 | ) | | | — | | | | (1,992 | ) |
Capital Share Transactions | | | (886 | ) | | | 42,640 | | | | (154,121 | ) | | | 121,596 | | | | (26,790 | ) | | | (66,063 | ) |
Net Increase (Decrease) in Net Assets | | | 22,762 | | | | 26,082 | | | | (92,051 | ) | | | (7,582 | ) | | | (16,268 | ) | | | (102,586 | ) |
Net Assets, Beginning of Period | | | 769,740 | | | | 743,658 | | | | 1,129,882 | | | | 1,137,464 | | | | 215,924 | | | | 318,510 | |
Net Assets, End of Period | | $ | 792,502 | | | $ | 769,740 | | | $ | 1,037,831 | | | $ | 1,129,882 | | | $ | 199,656 | | | $ | 215,924 | |
Undistributed (distributions in excess of) net investment income | | $ | (794 | ) | | $ | — | | | $ | 1,224 | | | $ | (95 | ) | | $ | 1,214 | | | $ | 214 | |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 130 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| 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
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 2,217 | | | $ | 3,323 | | | $ | 473 | | | $ | 234 | | | $ | 2,850 | | | $ | 1,072 | |
Net realized gain (loss) on investments | | | 8,129 | | | | 13,648 | | | | 1,090 | | | | (52,654 | ) | | | 341 | | | | (13,816 | ) |
Net change in unrealized appreciation (depreciation) | | | 7,130 | | | | (36,288 | ) | | | 76,940 | | | | (52,284 | ) | | | 3,986 | | | | (12,125 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 17,476 | | | | (19,317 | ) | | | 78,503 | | | | (104,704 | ) | | | 7,177 | | | | (24,869 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (1,562 | ) | | | (2,130 | ) | | | — | | | | (3,403 | ) | | | — | | | | (610 | ) |
Class B | | | (12 | ) | | | (4 | ) | | | — | | | | (28 | ) | | | — | | | | — | |
Class C | | | (91 | ) | | | (53 | ) | | | — | | | | (209 | ) | | | — | | | | — | |
Class E | | | (37 | ) | | | (36 | ) | | | — | | | | (2 | ) | | | — | | | | — | * |
Class I | | | (732 | ) | | | (214 | ) | | | — | | | | (1,158 | ) | | | — | | | | (316 | ) |
Class R | | | (2 | ) | | | (2 | ) | | | — | | | | (26 | ) | | | — | | | | (1 | ) |
Class R6 | | | (20 | ) | | | (5 | ) | | | — | | | | (65 | ) | | | — | | | | (15 | ) |
Class Y | | | (49 | ) | | | (64 | ) | | | — | | | | (92 | ) | | | — | | | | (6 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (23,525 | ) | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | (789 | ) | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | (3,849 | ) | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | (423 | ) | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | (1,839 | ) | | | — | | | | — | | | | — | | | | — | |
Class R | | | — | | | | (28 | ) | | | — | | | | — | | | | — | | | | — | |
Class R6 | | | — | | | | (41 | ) | | | — | | | | — | | | | — | | | | — | |
Class Y | | | — | | | | (630 | ) | | | — | | | | — | | | | — | | | | — | |
Total Distributions to Shareholders | | | (2,505 | ) | | | (33,632 | ) | | | — | | | | (4,983 | ) | | | — | | | | (948 | ) |
Capital Share Transactions | | | (4,691 | ) | | | (11,066 | ) | | | (19,298 | ) | | | 31,640 | | | | (27,368 | ) | | | 57,146 | |
Net Increase (Decrease) in Net Assets | | | 10,280 | | | | (64,015 | ) | | | 59,205 | | | | (78,047 | ) | | | (20,191 | ) | | | 31,329 | |
Net Assets, Beginning of Period | | | 362,084 | | | | 426,099 | | | | 533,902 | | | | 611,949 | | | | 223,909 | | | | 192,580 | |
Net Assets, End of Period | | $ | 372,364 | | | $ | 362,084 | | | $ | 593,107 | | | $ | 533,902 | | | $ | 203,718 | | | $ | 223,909 | |
Undistributed (distributions in excess of) net investment income | | $ | 718 | | | $ | 1,003 | | | $ | (1,657 | ) | | $ | (427 | ) | | $ | 2,861 | | | $ | 12 | |
| (1) | Consolidated Statements of Changes in Net Assets (See Note 6 in Notes to Financial Statements) |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 131 | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Global Bond Fund | | | Ivy Global Equity
Income Fund | | | Ivy Global Growth Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 3,266 | | | $ | 7,981 | | | $ | 7,432 | | | $ | 9,311 | | | $ | (41 | ) | | $ | (1,034 | ) |
Net realized loss on investments | | | (1,705 | ) | | | (8,859 | ) | | | (1,537 | ) | | | (17,773 | ) | | | (9,726 | ) | | | (734 | ) |
Net change in unrealized appreciation (depreciation) | | | 7,354 | | | | (3,817 | ) | | | 7,552 | | | | (7,615 | ) | | | 24,737 | | | | (30,570 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 8,915 | | | | (4,695 | ) | | | 13,447 | | | | (16,077 | ) | | | 14,970 | | | | (32,338 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (920 | ) | | | (4,424 | ) | | | (4,236 | ) | | | (7,745 | ) | | | — | | | | (376 | ) |
Class B | | | (17 | ) | | | (77 | ) | | | (37 | ) | | | (46 | ) | | | — | | | | — | |
Class C | | | (109 | ) | | | (547 | ) | | | (253 | ) | | | (345 | ) | | | — | | | | — | |
Class E | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | * |
Class I | | | (578 | ) | | | (1,248 | ) | | | (2,884 | ) | | | (721 | ) | | | — | | | | (174 | ) |
Class R | | | (4 | ) | | | (12 | ) | | | (8 | ) | | | (8 | ) | | | — | | | | — | |
Class R6 | | | (22 | ) | | | (11 | ) | | | (28 | ) | | | (43 | ) | | | — | | | | (6 | ) |
Class Y | | | (24 | ) | | | (104 | ) | | | (99 | ) | | | (146 | ) | | | — | | | | (17 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | (7,224 | ) | | | — | | | | (8,348 | ) |
Class B | | | — | | | | — | | | | — | | | | (54 | ) | | | — | | | | (68 | ) |
Class C | | | — | | | | — | | | | — | | | | (411 | ) | | | — | | | | (601 | ) |
Class E | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | (3 | ) |
Class I | | | — | | | | — | | | | — | | | | (585 | ) | | | — | | | | (1,780 | ) |
Class R | | | — | | | | — | �� | | | — | | | | (8 | ) | | | — | | | | (41 | ) |
Class R6 | | | — | | | | — | | | | — | | | | (28 | ) | | | — | | | | (54 | ) |
Class Y | | | — | | | | — | | | | — | | | | (128 | ) | | | — | | | | (272 | ) |
Total Distributions to Shareholders | | | (1,674 | ) | | | (6,423 | ) | | | (7,545 | ) | | | (17,492 | ) | | | — | | | | (11,740 | ) |
Capital Share Transactions | | | (19,715 | ) | | | (77,614 | ) | | | 57,247 | | | | 26,795 | | | | (35,126 | ) | | | 16,321 | |
Net Increase (Decrease) in Net Assets | | | (12,474 | ) | | | (88,732 | ) | | | 63,149 | | | | (6,774 | ) | | | (20,156 | ) | | | (27,757 | ) |
Net Assets, Beginning of Period | | | 181,905 | | | | 270,637 | | | | 288,933 | | | | 295,707 | | | | 503,310 | | | | 531,067 | |
Net Assets, End of Period | | $ | 169,431 | | | $ | 181,905 | | | $ | 352,082 | | | $ | 288,933 | | | $ | 483,154 | | | $ | 503,310 | |
Undistributed (distributions in excess of) net investment income | | $ | 427 | | | $ | 662 | | | $ | 751 | | | $ | 927 | | | $ | (743 | ) | | $ | (632 | ) |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | |
| 132 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Global Income
Allocation Fund | | | Ivy High Income Fund | | | Ivy International Core
Equity Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 18,888 | | | $ | 31,121 | | | $ | 185,004 | | | $ | 494,504 | | | $ | 53,533 | | | $ | 52,051 | |
Net realized gain (loss) on investments | | | 10,686 | | | | (51,907 | ) | | | (60,939 | ) | | | (500,136 | ) | | | (10,817 | ) | | | (128,459 | ) |
Net change in unrealized appreciation (depreciation) | | | 11,224 | | | | (27,493 | ) | | | 376,537 | | | | (544,938 | ) | | | 221,241 | | | | (381,168 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 40,798 | | | | (48,279 | ) | | | 500,602 | | | | (550,570 | ) | | | 263,957 | | | | (457,576 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (10,406 | ) | | | (26,075 | ) | | | (64,689 | ) | | | (188,245 | ) | | | — | | | | (12,752 | ) |
Class B | | | (80 | ) | | | (151 | ) | | | (2,983 | ) | | | (7,499 | ) | | | — | | | | (16 | ) |
Class C | | | (1,054 | ) | | | (1,918 | ) | | | (36,846 | ) | | | (92,678 | ) | | | — | | | | (757 | ) |
Class E | | | (61 | ) | | | (108 | ) | | | (331 | ) | | | (667 | ) | | | — | | | | (34 | ) |
Class I | | | (5,615 | ) | | | (2,715 | ) | | | (60,798 | ) | | | (149,446 | ) | | | — | | | | (21,428 | ) |
Class R | | | (6 | ) | | | (10 | ) | | | (2,482 | ) | | | (4,527 | ) | | | — | | | | (176 | ) |
Class R6 | | | (44 | ) | | | (80 | ) | | | (1,959 | ) | | | (2,547 | ) | | | — | | | | (2,546 | ) |
Class Y | | | (40 | ) | | | (87 | ) | | | (16,187 | ) | | | (42,233 | ) | | | — | | | | (4,810 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class R | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class Y | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Total Distributions to Shareholders | | | (17,306 | ) | | | (31,144 | ) | | | (186,275 | ) | | | (487,842 | ) | | | — | | | | (42,519 | ) |
Capital Share Transactions | | | (31,737 | ) | | | 62,853 | | | | (346,427 | ) | | | (2,205,352 | ) | | | (311,096 | ) | | | 1,599,773 | |
Net Increase (Decrease) in Net Assets | | | (8,245 | ) | | | (16,570 | ) | | | (32,100 | ) | | | (3,243,764 | ) | | | (47,139 | ) | | | 1,099,678 | |
Net Assets, Beginning of Period | | | 747,824 | | | | 764,394 | | | | 4,771,220 | | | | 8,014,984 | | | | 4,581,758 | | | | 3,482,080 | |
Net Assets, End of Period | | $ | 739,579 | | | $ | 747,824 | | | $ | 4,739,120 | | | $ | 4,771,220 | | | $ | 4,534,619 | | | $ | 4,581,758 | |
Undistributed (distributions in excess of) net investment income | | $ | 2,569 | | | $ | 2,690 | | | $ | (1,275 | ) | | $ | (7 | ) | | $ | 68,893 | | | $ | 14,595 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 133 | |
| | |
| 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
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | 217 | | | $ | (2,533 | ) | | $ | 15,001 | | | $ | 22,469 | | | $ | 339 | | | $ | 1,495 | |
Net realized gain (loss) on investments | | | 81,331 | | | | 78,209 | | | | 7,503 | | | | (982 | ) | | | 5,625 | | | | 18,643 | |
Net change in unrealized appreciation (depreciation) | | | 22,516 | | | | (113,833 | ) | | | 8,203 | | | | (5,603 | ) | | | 4,521 | | | | (41,815 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 104,064 | | | | (38,157 | ) | | | 30,707 | | | | 15,884 | | | | 10,485 | | | | (21,677 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | (9,293 | ) | | | (21,276 | ) | | | — | | | | (1,447 | ) |
Class B | | | — | | | | — | | | | (56 | ) | | | (73 | ) | | | — | | | | (1 | ) |
Class C | | | — | | | | — | | | | (552 | ) | | | (817 | ) | | | — | | | | (7 | ) |
Class E | | | — | | | | — | | | | (37 | ) | | | (49 | ) | | | — | | | | (3 | ) |
Class I | | | — | | | | — | | | | (4,881 | ) | | | (812 | ) | | | — | | | | (16 | ) |
Class R | | | — | | | | — | | | | (6 | ) | | | (8 | ) | | | — | | | | (3 | ) |
Class R6 | | | — | | | | — | | | | (537 | ) | | | (49 | ) | | | N/A | | | | N/A | |
Class Y | | | — | | | | — | | | | (154 | ) | | | (253 | ) | | | — | | | | (7 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (73,821 | ) | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | (843 | ) | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | (7,208 | ) | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | (682 | ) | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | (17,371 | ) | | | — | | | | — | | | | — | | | | — | |
Class R | | | — | | | | (1,438 | ) | | | — | | | | — | | | | — | | | | — | |
Class R6 | | | — | | | | (404 | ) | | | — | | | | — | | | | N/A | | | | N/A | |
Class Y | | | — | | | | (7,606 | ) | | | — | | | | — | | | | — | | | | — | |
Total Distributions to Shareholders | | | — | | | | (109,373 | ) | | | (15,516 | ) | | | (23,337 | ) | | | — | | | | (1,484 | ) |
Capital Share Transactions | | | (120,552 | ) | | | 209,856 | | | | 30,938 | | | | 110,560 | | | | (14,296 | ) | | | (18,143 | ) |
Net Increase (Decrease) in Net Assets | | | (16,488 | ) | | | 62,326 | | | | 46,129 | | | | 103,107 | | | | (3,811 | ) | | | (41,304 | ) |
Net Assets, Beginning of Period | | | 1,752,704 | | | | 1,690,378 | | | | 1,810,499 | | | | 1,707,392 | | | | 197,729 | | | | 239,033 | |
Net Assets, End of Period | | $ | 1,736,216 | | | $ | 1,752,704 | | | $ | 1,856,628 | | | $ | 1,810,499 | | | $ | 193,918 | | | $ | 197,729 | |
Undistributed (distributions in excess of) net investment income | | $ | 105 | | | $ | (112 | ) | | $ | (515 | ) | | $ | — | | | $ | 187 | | | $ | (152 | ) |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 134 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Micro Cap Growth Fund | | | Ivy Mid Cap Growth Fund | | | Ivy Mid Cap Income
Opportunities Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (954 | ) | | $ | (2,800 | ) | | $ | (2,330 | ) | | $ | (8,227 | ) | | $ | 1,522 | | | $ | 1,159 | |
Net realized gain (loss) on investments | | | 11,197 | | | | 1,232 | | | | 108,354 | | | | 202,194 | | | | (2,145 | ) | | | (4,648 | ) |
Net change in unrealized appreciation (depreciation) | | | 32,517 | | | | (48,177 | ) | | | 96,000 | | | | (737,452 | ) | | | 12,079 | | | | 5,563 | |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 42,760 | | | | (49,745 | ) | | | 202,024 | | | | (543,485 | ) | | | 11,456 | | | | 2,074 | |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | | | | (356 | ) | | | (873 | ) |
Class B | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | |
Class C | | | — | | | | — | | | | — | | | | — | | | | (8 | ) | | | (29 | ) |
Class E | | | N/A | | | | N/A | | | | — | | | | — | | | | (9 | ) | | | (32 | ) |
Class I | | | — | | | | — | | | | — | | | | — | | | | (387 | ) | | | (124 | ) |
Class R | | | — | | | | — | | | | — | | | | — | | | | (5 | ) | | | (23 | ) |
Class R6 | | | — | | | | — | | | | — | | | | — | | | | (17 | ) | | | (44 | ) |
Class Y | | | — | | | | — | | | | — | | | | — | | | | (23 | ) | | | (60 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (6,478 | ) | | | — | | | | (85,052 | ) | | | — | | | | (106 | ) |
Class B | | | — | | | | (74 | ) | | | — | | | | (2,156 | ) | | | N/A | | | | N/A | |
Class C | | | — | | | | (366 | ) | | | — | | | | (30,590 | ) | | | — | | | | (5 | ) |
Class E | | | N/A | | | | N/A | | | | — | | | | (706 | ) | | | — | | | | (3 | ) |
Class I | | | — | | | | (531 | ) | | | — | | | | (201,843 | ) | | | — | | | | (10 | ) |
Class R | | | — | | | | (28 | ) | | | — | | | | (7,350 | ) | | | — | | | | (3 | ) |
Class R6 | | | — | | | | (99 | ) | | | — | | | | (5,460 | ) | | | — | | | | (4 | ) |
Class Y | | | — | | | | (52 | ) | | | — | | | | (53,369 | ) | | | — | | | | (6 | ) |
Total Distributions to Shareholders | | | — | | | | (7,628 | ) | | | — | | | | (386,526 | ) | | | (805 | ) | | | (1,322 | ) |
Capital Share Transactions | | | (22,637 | ) | | | (27,623 | ) | | | (638,215 | ) | | | (1,111,799 | ) | | | 80,795 | | | | 53,645 | |
Net Increase (Decrease) in Net Assets | | | 20,123 | | | | (84,996 | ) | | | (436,191 | ) | | | (2,041,810 | ) | | | 91,446 | | | | 54,397 | |
Net Assets, Beginning of Period | | | 151,571 | | | | 236,567 | | | | 3,119,286 | | | | 5,161,096 | | | | 120,082 | | | | 65,685 | |
Net Assets, End of Period | | $ | 171,694 | | | $ | 151,571 | | | $ | 2,683,095 | | | $ | 3,119,286 | | | $ | 211,528 | | | $ | 120,082 | |
Undistributed (distributions in excess of) net investment income | | $ | (1,466 | ) | | $ | (512 | ) | | $ | (13,499 | ) | | $ | (11,178 | ) | | $ | 662 | | | $ | (55 | ) |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 135 | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Money Market Fund | | | Ivy Municipal Bond Fund | | | Ivy Municipal High
Income Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | $ | 20 | | | $ | 38 | | | $ | 2,494 | | | $ | 4,294 | | | $ | 28,432 | | | $ | 55,049 | |
Net realized gain (loss) on investments | | | 9 | | | | 26 | | | | (29 | ) | | | (681 | ) | | | 2,295 | | | | (1,675 | ) |
Net change in unrealized appreciation (depreciation) | | | — | | | | — | | | | 1,686 | | | | 1,813 | | | | 19,065 | | | | (5,755 | ) |
Net Increase in Net Assets Resulting from Operations | | | 29 | | | | 64 | | | | 4,151 | | | | 5,426 | | | | 49,792 | | | | 47,619 | |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (15 | ) | | | (28 | ) | | | (1,484 | ) | | | (3,635 | ) | | | (7,336 | ) | | | (15,406 | ) |
Class B | | | — | * | | | (1 | ) | | | (17 | ) | | | (34 | ) | | | (230 | ) | | | (473 | ) |
Class C | | | (4 | ) | | | (8 | ) | | | (218 | ) | | | (405 | ) | | | (4,056 | ) | | | (7,920 | ) |
Class E | | | (1 | ) | | | (1 | ) | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | N/A | | | | N/A | | | | (741 | ) | | | (168 | ) | | | (16,164 | ) | | | (29,645 | ) |
Class Y | | | N/A | | | | N/A | | | | (9 | ) | | | (17 | ) | | | (391 | ) | | | (791 | ) |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | N/A | | | | N/A | | | | — | | | | — | | | | — | | | | — | |
Class Y | | | N/A | | | | N/A | | | | — | | | | — | | | | — | | | | — | |
Total Distributions to Shareholders | | | (20 | ) | | | (38 | ) | | | (2,469 | ) | | | (4,259 | ) | | | (28,177 | ) | | | (54,235 | ) |
Capital Share Transactions | | | (29,966 | ) | | | 62,924 | | | | 11,104 | | | | 45,434 | | | | (22,614 | ) | | | 14,013 | |
Net Increase (Decrease) in Net Assets | | | (29,957 | ) | | | 62,950 | | | | 12,786 | | | | 46,601 | | | | (999 | ) | | | 7,397 | |
Net Assets, Beginning of Period | | | 223,582 | | | | 160,632 | | | | 226,775 | | | | 180,174 | | | | 1,361,593 | | | | 1,354,196 | |
Net Assets, End of Period | | $ | 193,625 | | | $ | 223,582 | | | $ | 239,561 | | | $ | 226,775 | | | $ | 1,360,594 | | | $ | 1,361,593 | |
Undistributed net investment income | | $ | — | | | $ | — | | | $ | 171 | | | $ | 146 | | | $ | 3,605 | | | $ | 3,350 | |
| * | Not shown due to rounding. |
See Accompanying Notes to Financial Statements.
| | | | | | |
| 136 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Small Cap Growth Fund | | | Ivy Small Cap Value Fund | | | Ivy Tax-Managed
Equity Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | $ | (3,915 | ) | | $ | (8,627 | ) | | $ | 52 | | | $ | (1,188 | ) | | $ | (249 | ) | | $ | (374 | ) |
Net realized gain (loss) on investments | | | 45,942 | | | | 80,827 | | | | 19,590 | | | | 6,136 | | | | (1,741 | ) | | | 192 | |
Net change in unrealized appreciation (depreciation) | | | 54,537 | | | | (173,688 | ) | | | 23,516 | | | | (20,917 | ) | | | 7,085 | | | | (2,963 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 96,564 | | | | (101,488 | ) | | | 43,158 | | | | (15,969 | ) | | | 5,095 | | | | (3,145 | ) |
| | | | | | |
Distributions to Shareholders From: | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class B | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | |
Class I | | | — | | | | (80 | ) | | | — | | | | — | | | | — | | | | — | |
Class R | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | |
Class R6 | | | — | | | | (6 | ) | | | — | | | | — | | | | N/A | | | | N/A | |
Class Y | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Net realized gains: | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | (46,569 | ) | | | — | | | | (26,283 | ) | | | — | | | | (1,904 | ) |
Class B | | | — | | | | (1,469 | ) | | | — | | | | (377 | ) | | | — | | | | (20 | ) |
Class C | | | — | | | | (27,685 | ) | | | — | | | | (2,245 | ) | | | — | | | | (73 | ) |
Class E | | | — | | | | (815 | ) | | | — | | | | (18 | ) | | | N/A | | | | N/A | |
Class I | | | — | | | | (20,605 | ) | | | — | | | | (3,254 | ) | | | — | | | | (84 | ) |
Class R | | | — | | | | (5,989 | ) | | | — | | | | (318 | ) | | | N/A | | | | N/A | |
Class R6 | | | — | | | | (2,365 | ) | | | — | | | | (426 | ) | | | N/A | | | | N/A | |
Class Y | | | — | | | | (25,481 | ) | | | — | | | | (980 | ) | | | — | | | | (14 | ) |
Total Distributions to Shareholders | | | — | | | | (131,064 | ) | | | — | | | | (33,901 | ) | | | — | | | | (2,095 | ) |
Capital Share Transactions | | | (69,715 | ) | | | 25,570 | | | | 37,153 | | | | (6,886 | ) | | | (6,439 | ) | | | 45,598 | |
Net Increase (Decrease) in Net Assets | | | 26,849 | | | | (206,982 | ) | | | 80,311 | | | | (56,756 | ) | | | (1,344 | ) | | | 40,358 | |
Net Assets, Beginning of Period | | | 944,309 | | | | 1,151,291 | | | | 248,260 | | | | 305,016 | | | | 119,572 | | | | 79,214 | |
Net Assets, End of Period | | $ | 971,158 | | | $ | 944,309 | | | $ | 328,571 | | | $ | 248,260 | | | $ | 118,228 | | | $ | 119,572 | |
Undistributed (distributions in excess of) net investment income | | $ | (12,474 | ) | | $ | (8,559 | ) | | $ | 23 | | | $ | (29 | ) | | $ | (311 | ) | | $ | (62 | ) |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 137 | |
| | |
| STATEMENTS OF CHANGES IN NET ASSETS | | IVY FUNDS |
| | | | | | | | |
| | | Ivy Value Fund | |
| (In thousands) | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | |
Operations: | | | | | | | | |
Net investment income | | $ | 1,938 | | | $ | 1,703 | |
Net realized gain on investments | | | 1,575 | | | | 16,837 | |
Net change in unrealized appreciation (depreciation) | | | 14,555 | | | | (31,386 | ) |
Net Increase (Decrease) in Net Assets Resulting from Operations | | | 18,068 | | | | (12,846 | ) |
| | |
Distributions to Shareholders From: | | | | | | | | |
Net investment income: | | | | | | | | |
Class A | | | (2,278 | ) | | | (311 | ) |
Class B | | | (14 | ) | | | — | |
Class C | | | (115 | ) | | | — | |
Class E | | | (2 | ) | | | — | * |
Class I | | | (554 | ) | | | (19 | ) |
Class R | | | (3 | ) | | | — | * |
Class R6 | | | (95 | ) | | | (5 | ) |
Class Y | | | (21 | ) | | | (2 | ) |
Net realized gains: | | | | | | | | |
Class A | | | — | | | | (29,495 | ) |
Class B | | | — | | | | (409 | ) |
Class C | | | — | | | | (2,225 | ) |
Class E | | | — | | | | (18 | ) |
Class I | | | — | | | | (986 | ) |
Class R | | | — | | | | (39 | ) |
Class R6 | | | — | | | | (201 | ) |
Class Y | | | — | | | | (194 | ) |
Total Distributions to Shareholders | | | (3,082 | ) | | | (33,904 | ) |
Capital Share Transactions | | | (11,391 | ) | | | (14,299 | ) |
Net Increase (Decrease) in Net Assets | | | 3,595 | | | | (61,049 | ) |
Net Assets, Beginning of Period | | | 279,439 | | | | 340,488 | |
Net Assets, End of Period | | $ | 283,034 | | | $ | 279,439 | |
Undistributed net investment income | | $ | 875 | | | $ | 2,019 | |
*Not shown due to rounding.
See Accompanying Notes to Financial Statements.
| | | | | | |
| 138 | | SEMIANNUAL REPORT | | 2016 | | |
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| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 139 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY BOND FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income(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 9-30-2016 (unaudited) | | $ | 10.54 | | | $ | 0.12 | | | $ | 0.33 | | | $ | 0.45 | | | $ | (0.13 | ) | | $ | — | | | $ | (0.13 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.24 | | | | (0.22 | ) | | | 0.02 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.23 | | | | 0.35 | | | | 0.58 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.06 | | | | 0.34 | | | | 0.40 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.14 | | | | (0.22 | ) | | | (0.08 | ) | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.13 | | | | 0.35 | | | | 0.48 | | | | (0.16 | ) | | | — | | | | (0.16 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.08 | | | | 0.33 | | | | 0.41 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.16 | | | | (0.22 | ) | | | (0.06 | ) | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.15 | | | | 0.35 | | | | 0.50 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.12 | | | | 0.33 | | | | 0.45 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.24 | | | | (0.23 | ) | | | 0.01 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.22 | | | | 0.35 | | | | 0.57 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.14 | | | | 0.33 | | | | 0.47 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.27 | | | | (0.22 | ) | | | 0.05 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.26 | | | | 0.35 | | | | 0.61 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.10 | | | | 0.34 | | | | 0.44 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.19 | | | | (0.21 | ) | | | (0.02 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.20 | | | | 0.35 | | | | 0.55 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
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 9-30-2016 (unaudited) | | | 10.54 | | | | 0.14 | | | | 0.33 | | | | 0.47 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.29 | | | | (0.23 | ) | | | 0.06 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2015(7) | | | 10.58 | | | | 0.18 | | | | 0.22 | | | | 0.40 | | | | (0.20 | ) | | | — | | | | (0.20 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.54 | | | | 0.12 | | | | 0.33 | | | | 0.45 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 10.78 | | | | 0.25 | | | | (0.23 | ) | | | 0.02 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2015 | | | 10.46 | | | | 0.23 | | | | 0.35 | | | | 0.58 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 140 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 10.86 | | | | 4.28 | % | | $ | 242 | | | | 1.04 | %(4) | | | 2.22 | %(4) | | | — | % | | | — | % | | | 112 | % |
Year ended 3-31-2016 | | | 10.54 | | | | 0.21 | | | | 704 | | | | 1.02 | | | | 2.32 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 5.58 | | | | 695 | | | | 1.02 | | | | 2.17 | | | | — | | | | — | | | | 182 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 3.76 | | | | 6 | | | | 2.05 | (4) | | | 1.21 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | -0.73 | | | | 7 | | | | 1.96 | | | | 1.37 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 4.56 | | | | 6 | | | | 2.00 | | | | 1.19 | | | | — | | | | — | | | | 182 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 3.91 | | | | 35 | | | | 1.77 | (4) | | | 1.49 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | -0.55 | | | | 33 | | | | 1.78 | | | | 1.56 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 4.76 | | | | 28 | | | | 1.80 | | | | 1.38 | | | | — | | | | — | | | | 182 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 4.28 | | | | 5 | | | | 1.05 | (4) | | | 2.21 | (4) | | | 1.25 | (4) | | | 2.01 | (4) | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | 0.15 | | | | 4 | | | | 1.08 | | | | 2.26 | | | | 1.32 | | | | 2.02 | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 5.45 | | | | 4 | | | | 1.14 | | | | 2.05 | | | | 1.35 | | | | 1.84 | | | | 182 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 4.44 | | | | 494 | | | | 0.75 | (4) | | | 2.50 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | 0.49 | | | | 14 | | | | 0.74 | | | | 2.58 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 5.90 | | | | 7 | | | | 0.74 | | | | 2.44 | | | | — | | | | — | | | | 182 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 4.14 | | | | 4 | | | | 1.33 | (4) | | | 1.92 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | -0.11 | | | | 3 | | | | 1.34 | | | | 1.89 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 5.27 | | | | — | * | | | 1.32 | | | | 1.87 | | | | — | | | | — | | | | 182 | |
Year ended 3-31-2014 | | | 10.46 | | | | 0.18 | | | | — | * | | | 1.35 | | | | 2.04 | | | | — | | | | — | | | | 202 | |
Year ended 3-31-2013(6) | | | 10.71 | | | | 0.96 | | | | — | * | | | 1.30 | (4) | | | 0.82 | (4) | | | — | | | | — | | | | 269 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 4.52 | | | | 2 | | | | 0.59 | (4) | | | 2.66 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | 0.64 | | | | 2 | | | | 0.59 | | | | 2.75 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015(7) | | | 10.78 | | | | 3.81 | | | | 1 | | | | 0.58 | (4) | | | 2.54 | (4) | | | — | | | | — | | | | 182 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.86 | | | | 4.32 | | | | 5 | | | | 0.98 | (4) | | | 2.28 | (4) | | | — | | | | — | | | | 112 | |
Year ended 3-31-2016 | | | 10.54 | | | | 0.26 | | | | 3 | | | | 0.98 | | | | 2.35 | | | | — | | | | — | | | | 213 | |
Year ended 3-31-2015 | | | 10.78 | | | | 5.62 | | | | 3 | | | | 0.99 | | | | 2.20 | | | | — | | | | — | | | | 182 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 141 | |
| | |
| 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 (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 9-30-2016 (unaudited) | | $ | 12.73 | | | $ | 0.01 | | | $ | 0.73 | | | $ | 0.74 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 14.29 | | | | 0.02 | | | | (0.60 | ) | | | (0.58 | ) | | | — | * | | | (0.98 | ) | | | (0.98 | ) |
Year ended 3-31-2015 | | | 14.04 | | | | 0.02 | | | | 1.33 | | | | 1.35 | | | | — | | | | (1.10 | ) | | | (1.10 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.85 | | | | (0.04 | ) | | | 0.62 | | | | 0.58 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 12.36 | | | | (0.09 | ) | | | (0.52 | ) | | | (0.61 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 12.32 | | | | (0.10 | ) | | | 1.16 | | | | 1.06 | | | | — | | | | (1.02 | ) | | | (1.02 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.19 | | | | (0.03 | ) | | | 0.64 | | | | 0.61 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 12.71 | | | | (0.07 | ) | | | (0.54 | ) | | | (0.61 | ) | | | — | | | | (0.91 | ) | | | (0.91 | ) |
Year ended 3-31-2015 | | | 12.63 | | | | (0.08 | ) | | | 1.19 | | | | 1.11 | | | | — | | | | (1.03 | ) | | | (1.03 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.67 | | | | 0.01 | | | | 0.73 | | | | 0.74 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.23 | | | | 0.00 | * | | | (0.60 | ) | | | (0.60 | ) | | | — | | | | (0.96 | ) | | | (0.96 | ) |
Year ended 3-31-2015 | | | 14.00 | | | | (0.01 | ) | | | 1.32 | | | | 1.31 | | | | — | | | | (1.08 | ) | | | (1.08 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.05 | | | | 0.04 | | | | 0.80 | | | | 0.84 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.67 | | | | 0.07 | | | | (0.66 | ) | | | (0.59 | ) | | | (0.02 | ) | | | (1.01 | ) | | | (1.03 | ) |
Year ended 3-31-2015 | | | 15.29 | | | | 0.07 | | | | 1.45 | | | | 1.52 | | | | (0.03 | ) | | | (1.11 | ) | | | (1.14 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.67 | | | | (0.01 | ) | | | 0.72 | | | | 0.71 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.23 | | | | (0.02 | ) | | | (0.60 | ) | | | (0.62 | ) | | | — | | | | (0.94 | ) | | | (0.94 | ) |
Year ended 3-31-2015 | | | 14.01 | | | | (0.03 | ) | | | 1.31 | | | | 1.28 | | | | — | | | | (1.06 | ) | | | (1.06 | ) |
Year ended 3-31-2014 | | | 12.13 | | | | 0.01 | | | | 2.67 | | | | 2.68 | | | | (0.01 | ) | | | (0.79 | ) | | | (0.80 | ) |
Year ended 3-31-2013(6) | | | 11.15 | | | | 0.00 | | | | 0.98 | | | | 0.98 | | | | — | | | | — | | | | — | |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.07 | | | | 0.04 | | | | 0.81 | | | | 0.85 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.69 | | | | 0.09 | | | | (0.67 | ) | | | (0.58 | ) | | | (0.02 | ) | | | (1.02 | ) | | | (1.04 | ) |
Year ended 3-31-2015(7) | | | 15.69 | | | | 0.06 | | | | 1.06 | | | | 1.12 | | | | (0.01 | ) | | | (1.11 | ) | | | (1.12 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.69 | | | | 0.03 | | | | 0.79 | | | | 0.82 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.29 | | | | 0.07 | | | | (0.64 | ) | | | (0.57 | ) | | | (0.02 | ) | | | (1.01 | ) | | | (1.03 | ) |
Year ended 3-31-2015 | | | 14.94 | | | | 0.07 | | | | 1.42 | | | | 1.49 | | | | (0.03 | ) | | | (1.11 | ) | | | (1.14 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 142 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 13.47 | | | | 5.81 | % | | $ | 305 | | | | 1.15 | %(4) | | | 0.18 | %(4) | | | 1.20 | %(4) | | | 0.13 | %(4) | | | 31 | % |
Year ended 3-31-2016 | | | 12.73 | | | | -4.22 | | | | 546 | | | | 1.15 | | | | 0.15 | | | | 1.18 | | | | 0.12 | | | | 62 | |
Year ended 3-31-2015 | | | 14.29 | | | | 9.86 | | | | 611 | | | | 1.15 | | | | 0.13 | | | | 1.17 | | | | 0.11 | | | | 65 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.43 | | | | 5.35 | | | | 9 | | | | 2.13 | (4) | | | -0.80 | (4) | | | — | | | | — | | | | 31 | |
Year ended 3-31-2016 | | | 10.85 | | | | -5.18 | | | | 9 | | | | 2.09 | | | | -0.79 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 12.36 | | | | 8.80 | | | | 11 | | | | 2.08 | | | | -0.79 | | | | — | | | | — | | | | 65 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.80 | | | | 5.45 | | | | 123 | | | | 1.92 | (4) | | | -0.59 | (4) | | | — | | | | — | | | | 31 | |
Year ended 3-31-2016 | | | 11.19 | | | | -5.00 | | | | 129 | | | | 1.91 | | | | -0.61 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 12.71 | | | | 9.04 | | | | 160 | | | | 1.90 | | | | -0.62 | | | | — | | | | — | | | | 65 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.41 | | | | 5.84 | | | | 11 | | | | 1.21 | (4) | | | 0.14 | (4) | | | 1.43 | (4) | | | -0.08 | (4) | | | 31 | |
Year ended 3-31-2016 | | | 12.67 | | | | -4.39 | | | | 10 | | | | 1.29 | | | | 0.02 | | | | 1.43 | | | | -0.12 | | | | 62 | |
Year ended 3-31-2015 | | | 14.23 | | | | 9.60 | | | | 10 | | | | 1.35 | | | | -0.06 | | | | 1.43 | | | | -0.14 | | | | 65 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.89 | | | | 5.98 | | | | 387 | | | | 0.84 | (4) | | | 0.50 | (4) | | | 0.92 | (4) | | | 0.42 | (4) | | | 31 | |
Year ended 3-31-2016 | | | 14.05 | | | | -3.93 | | | | 172 | | | | 0.84 | | | | 0.46 | | | | 0.90 | | | | 0.40 | | | | 62 | |
Year ended 3-31-2015 | | | 15.67 | | | | 10.14 | | | | 234 | | | | 0.84 | | | | 0.45 | | | | 0.90 | | | | 0.39 | | | | 65 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.38 | | | | 5.60 | | | | 3 | | | | 1.50 | (4) | | | -0.16 | (4) | | | — | | | | — | | | | 31 | |
Year ended 3-31-2016 | | | 12.67 | | | | -4.53 | | | | 2 | | | | 1.50 | | | | -0.18 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 14.23 | | | | 9.40 | | | | 2 | | | | 1.50 | | | | -0.22 | | | | — | | | | — | | | | 65 | |
Year ended 3-31-2014 | | | 14.01 | | | | 22.41 | | | | 2 | | | | 1.50 | | | | 0.04 | | | | — | | | | — | | | | 61 | |
Year ended 3-31-2013(6) | | | 12.13 | | | | 8.79 | | | | — | * | | | 1.50 | (4) | | | -0.13 | (4) | | | — | | | | — | | | | 60 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.92 | | | | 6.04 | | | | 111 | | | | 0.76 | (4) | | | 0.56 | (4) | | | — | | | | — | | | | 31 | |
Year ended 3-31-2016 | | | 14.07 | | | | -3.84 | | | | 149 | | | | 0.75 | | | | 0.63 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015(7) | | | 15.69 | | | | 7.39 | | | | 4 | | | | 0.75 | (4) | | | 0.60 | (4) | | | — | | | | — | | | | 65 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.51 | | | | 5.99 | | | | 89 | | | | 0.84 | (4) | | | 0.49 | (4) | | | 1.15 | (4) | | | 0.18 | (4) | | | 31 | |
Year ended 3-31-2016 | | | 13.69 | | | | -3.91 | | | | 113 | | | | 0.84 | | | | 0.46 | | | | 1.15 | | | | 0.15 | | | | 62 | |
Year ended 3-31-2015 | | | 15.29 | | | | 10.18 | | | | 105 | | | | 0.84 | | | | 0.45 | | | | 1.15 | | | | 0.14 | | | | 65 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 143 | |
| | |
| 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 | | | Total
Distributions | |
Class A Shares | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 14.33 | | | $ | 0.08 | | | $ | 0.67 | | | $ | 0.75 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 16.52 | | | | 0.13 | | | | (2.19 | ) | | | (2.06 | ) | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2015 | | | 17.96 | | | | 0.04 | | | | (1.48 | ) | | | (1.44 | ) | | | — | | | | — | | | | — | |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.15 | | | | (0.03 | ) | | | 0.62 | | | | 0.59 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.20 | | | | (0.04 | ) | | | (2.01 | ) | | | (2.05 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 16.72 | | | | (0.15 | ) | | | (1.37 | ) | | | (1.52 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.50 | | | | 0.02 | | | | 0.65 | | | | 0.67 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.56 | | | | 0.04 | | | | (2.06 | ) | | | (2.02 | ) | | | (0.04 | ) | | | — | | | | (0.04 | ) |
Year ended 3-31-2015 | | | 17.03 | | | | (0.07 | ) | | | (1.40 | ) | | | (1.47 | ) | | | — | | | | — | | | | — | |
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 | ) | | | — | | | | — | | | | — | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.42 | | | | 0.09 | | | | 0.69 | | | | 0.78 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.60 | | | | 0.15 | | | | (2.20 | ) | | | (2.05 | ) | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2015 | | | 18.05 | | | | 0.04 | | | | (1.49 | ) | | | (1.45 | ) | | | — | | | | — | | | | — | |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.64 | | | | 0.05 | | | | 0.76 | | | | 0.81 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.94 | | | | 0.21 | | | | (2.25 | ) | | | (2.04 | ) | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2015 | | | 18.33 | | | | 0.12 | | | | (1.51 | ) | | | (1.39 | ) | | | — | | | | — | | | | — | |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.32 | | | | 0.06 | | | | 0.68 | | | | 0.74 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.47 | | | | 0.11 | | | | (2.17 | ) | | | (2.06 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2015 | | | 17.94 | | | | 0.02 | | | | (1.49 | ) | | | (1.47 | ) | | | — | | | | — | | | | — | |
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 9-30-2016 (unaudited) | | | 14.68 | | | | 0.12 | | | | 0.70 | | | | 0.82 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.95 | | | | 0.24 | | | | (2.25 | ) | | | (2.01 | ) | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2015(7) | | | 18.57 | | | | 0.08 | | | | (1.70 | ) | | | (1.62 | ) | | | — | | | | — | | | | — | |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.53 | | | | 0.09 | | | | 0.69 | | | | 0.78 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.77 | | | | 0.17 | | | | (2.23 | ) | | | (2.06 | ) | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2015 | | | 18.20 | | | | 0.07 | | | | (1.50 | ) | | | (1.43 | ) | | | — | | | | — | | | | — | |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 144 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 15.08 | | | | 5.23 | % | | $ | 94 | | | | 1.67 | %(4) | | | 1.13 | %(4) | | | 1.83 | %(4) | | | 0.97 | %(4) | | | 41 | % |
Year ended 3-31-2016 | | | 14.33 | | | | -12.51 | | | | 192 | | | | 1.60 | | | | 0.86 | | | | 1.75 | | | | 0.71 | | | | 18 | |
Year ended 3-31-2015 | | | 16.52 | | | | -8.02 | | | | 288 | | | | 1.56 | | | | 0.24 | | | | 1.70 | | | | 0.10 | | | | 28 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.74 | | | | 4.49 | | | | 1 | | | | 3.04 | (4) | | | -0.45 | (4) | | | 3.20 | (4) | | | -0.61 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 13.15 | | | | -13.49 | | | | 1 | | | | 2.77 | | | | -0.30 | | | | 2.92 | | | | -0.45 | | | | 18 | |
Year ended 3-31-2015 | | | 15.20 | | | | -9.09 | | | | 2 | | | | 2.73 | | | | -0.91 | | | | 2.87 | | | | -1.05 | | | | 28 | |
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 | |
Class C Shares | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.17 | | | | 4.96 | | | | 13 | | | | 2.22 | (4) | | | 0.35 | (4) | | | 2.38 | (4) | | | 0.19 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 13.50 | | | | -12.98 | | | | 15 | | | | 2.20 | | | | 0.25 | | | | 2.35 | | | | 0.10 | | | | 18 | |
Year ended 3-31-2015 | | | 15.56 | | | | -8.63 | | | | 19 | | | | 2.19 | | | | -0.39 | | | | 2.33 | | | | -0.53 | | | | 28 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016(unaudited) | | | 15.20 | | | | 5.41 | | | | 1 | | | | 1.40 | (4) | | | 1.16 | (4) | | | 2.25 | (4) | | | 0.31 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 14.42 | | | | -12.39 | | | | 1 | | | | 1.50 | | | | 0.96 | | | | 2.13 | | | | 0.33 | | | | 18 | |
Year ended 3-31-2015 | | | 16.60 | | | | -8.03 | | | | 1 | | | | 1.59 | | | | 0.21 | | | | 2.00 | | | | -0.20 | | | | 28 | |
Year ended 3-31-2014 | | | 18.05 | | | | 22.43 | | | | 1 | | | | 1.59 | | | | -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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.45 | | | | 5.53 | | | | 88 | | | | 1.20 | (4) | | | 0.71 | (4) | | | 1.36 | (4) | | | 0.55 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 14.64 | | | | -12.11 | | | | 4 | | | | 1.14 | | | | 1.32 | | | | 1.29 | | | | 1.17 | | | | 18 | |
Year ended 3-31-2015 | | | 16.94 | | | | -7.58 | | | | 5 | | | | 1.12 | | | | 0.64 | | | | 1.26 | | | | 0.50 | | | | 28 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.06 | | | | 5.17 | | | | — | * | | | 1.75 | (4) | | | 0.80 | (4) | | | 1.91 | (4) | | | 0.64 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 14.32 | | | | -12.53 | | | | — | * | | | 1.73 | | | | 0.73 | | | | 1.88 | | | | 0.58 | | | | 18 | |
Year ended 3-31-2015 | | | 16.47 | | | | -8.19 | | | | — | * | | | 1.72 | | | | 0.09 | | | | 1.86 | | | | -0.05 | | | | 28 | |
Year ended 3-31-2014 | | | 17.94 | | | | 22.30 | | | | — | * | | | 1.72 | | | | -0.28 | | | | 1.86 | | | | -0.42 | | | | 47 | |
Year ended 3-31-2013(6) | | | 14.68 | | | | 7.78 | | | | — | * | | | 1.66 | (4) | | | -0.37 | (4) | | | 1.71 | (4) | | | -0.42 | (4) | | | 26 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016(unaudited) | | | 15.50 | | | | 5.59 | | | | 1 | | | | 1.00 | (4) | | | 1.55 | (4) | | | 1.16 | (4) | | | 1.39 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 14.68 | | | | -11.92 | | | | 1 | | | | 0.98 | | | | 1.48 | | | | 1.13 | | | | 1.33 | | | | 18 | |
Year ended 3-31-2015(7) | | | 16.95 | | | | -8.72 | | | | 1 | | | | 0.95 | (4) | | | 0.72 | (4) | | | 1.09 | (4) | | | 0.58 | (4) | | | 28 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.31 | | | | 5.37 | | | | 2 | | | | 1.41 | (4) | | | 1.17 | (4) | | | 1.57 | (4) | | | 1.01 | (4) | | | 41 | |
Year ended 3-31-2016 | | | 14.53 | | | | -12.32 | | | | 2 | | | | 1.40 | | | | 1.13 | | | | 1.55 | | | | 0.98 | | | | 18 | |
Year ended 3-31-2015 | | | 16.77 | | | | -7.86 | | | | 3 | | | | 1.38 | | | | 0.41 | | | | 1.52 | | | | 0.27 | | | | 28 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 145 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 16.99 | | | $ | 0.11 | | | $ | 0.72 | | | $ | 0.83 | | | $ | (0.12 | ) | | $ | — | | | $ | (0.12 | ) |
Year ended 3-31-2016 | | | 19.55 | | | | 0.17 | | | | (1.04 | ) | | | (0.87 | ) | | | (0.14 | ) | | | (1.55 | ) | | | (1.69 | ) |
Year ended 3-31-2015 | | | 20.27 | | | | 0.22 | | | | 1.39 | | | | 1.61 | | | | (0.22 | ) | | | (2.11 | ) | | | (2.33 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.68 | | | | 0.04 | | | | 0.71 | | | | 0.75 | | | | (0.03 | ) | | | — | | | | (0.03 | ) |
Year ended 3-31-2016 | | | 19.22 | | | | 0.03 | | | | (1.02 | ) | | | (0.99 | ) | | | (0.01 | ) | | | (1.54 | ) | | | (1.55 | ) |
Year ended 3-31-2015 | | | 19.97 | | | | 0.06 | | | | 1.37 | | | | 1.43 | | | | (0.07 | ) | | | (2.11 | ) | | | (2.18 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.76 | | | | 0.05 | | | | 0.72 | | | | 0.77 | | | | (0.04 | ) | | | — | | | | (0.04 | ) |
Year ended 3-31-2016 | | | 19.31 | | | | 0.05 | | | | (1.03 | ) | | | (0.98 | ) | | | (0.02 | ) | | | (1.55 | ) | | | (1.57 | ) |
Year ended 3-31-2015 | | | 20.05 | | | | 0.08 | | | | 1.38 | | | | 1.46 | | | | (0.09 | ) | | | (2.11 | ) | | | (2.20 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016(unaudited) | | | 16.94 | | | | 0.11 | | | | 0.72 | | | | 0.83 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 19.48 | | | | 0.17 | | | | (1.03 | ) | | | (0.86 | ) | | | (0.13 | ) | | | (1.55 | ) | | | (1.68 | ) |
Year ended 3-31-2015 | | | 20.21 | | | | 0.19 | | | | 1.39 | | | | 1.58 | | | | (0.20 | ) | | | (2.11 | ) | | | (2.31 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.07 | | | | 0.14 | | | | 0.71 | | | | 0.85 | | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Year ended 3-31-2016 | | | 19.61 | | | | 0.23 | | | | (1.04 | ) | | | (0.81 | ) | | | (0.18 | ) | | | (1.55 | ) | | | (1.73 | ) |
Year ended 3-31-2015 | | | 20.33 | | | | 0.28 | | | | 1.40 | | | | 1.68 | | | | (0.29 | ) | | | (2.11 | ) | | | (2.40 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.97 | | | | 0.09 | | | | 0.71 | | | | 0.80 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 19.53 | | | | 0.12 | | | | (1.03 | ) | | | (0.91 | ) | | | (0.10 | ) | | | (1.55 | ) | | | (1.65 | ) |
Year ended 3-31-2015 | | | 20.25 | | | | 0.16 | | | | 1.40 | | | | 1.56 | | | | (0.17 | ) | | | (2.11 | ) | | | (2.28 | ) |
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 9-30-2016 (unaudited) | | | 17.10 | | | | 0.14 | | | | 0.73 | | | | 0.87 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2016 | | | 19.64 | | | | 0.25 | | | | (1.03 | ) | | | (0.78 | ) | | | (0.21 | ) | | | (1.55 | ) | | | (1.76 | ) |
Year ended 3-31-2015(7) | | | 20.64 | | | | 0.20 | | | | 1.15 | | | | 1.35 | | | | (0.24 | ) | | | (2.11 | ) | | | (2.35 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.03 | | | | 0.11 | | | | 0.72 | | | | 0.83 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 19.58 | | | | 0.19 | | | | (1.04 | ) | | | (0.85 | ) | | | (0.15 | ) | | | (1.55 | ) | | | (1.70 | ) |
Year ended 3-31-2015 | | | 20.30 | | | | 0.23 | | | | 1.40 | | | | 1.63 | | | | (0.24 | ) | | | (2.11 | ) | | | (2.35 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 146 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 17.70 | | | | 4.91 | % | | $ | 147 | | | | 1.26 | %(4) | | | 1.20 | %(4) | | | — | % | | | — | % | | | 22 | % |
Year ended 3-31-2016 | | | 16.99 | | | | -4.65 | | | | 275 | | | | 1.25 | | | | 0.94 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.55 | | | | 8.19 | | | | 322 | | | | 1.24 | | | | 1.07 | | | | — | | | | — | | | | 48 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.40 | | | | 4.48 | | | | 8 | | | | 2.04 | (4) | | | 0.42 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 16.68 | | | | -5.32 | | | | 8 | | | | 2.03 | | | | 0.17 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.22 | | | | 7.33 | | | | 12 | | | | 2.01 | | | | 0.30 | | | | — | | | | — | | | | 48 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.49 | | | | 4.58 | | | | 42 | | | | 1.92 | (4) | | | 0.54 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 16.76 | | | | -5.26 | | | | 44 | | | | 1.93 | | | | 0.27 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.31 | | | | 7.46 | | | | 54 | | | | 1.91 | | | | 0.40 | | | | — | | | | — | | | | 48 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.64 | | | | 4.89 | | | | 5 | | | | 1.19 | (4) | | | 1.27 | (4) | | | 1.58 | (4) | | | 0.88 | (4) | | | 22 | |
Year ended 3-31-2016 | | | 16.94 | | | | -4.59 | | | | 5 | | | | 1.28 | | | | 0.91 | | | | 1.56 | | | | 0.63 | | | | 45 | |
Year ended 3-31-2015 | | | 19.48 | | | | 8.01 | | | | 5 | | | | 1.37 | | | | 0.94 | | | | 1.58 | | | | 0.73 | | | | 48 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.76 | | | | 5.00 | | | | 162 | | | | 0.97 | (4) | | | 1.52 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 17.07 | | | | -4.27 | | | | 22 | | | | 0.94 | | | | 1.25 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.61 | | | | 8.50 | | | | 23 | | | | 0.93 | | | | 1.38 | | | | — | | | | — | | | | 48 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.68 | | | | 4.70 | | | | — | * | | | 1.53 | (4) | | | 0.97 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 16.97 | | | | -4.87 | | | | — | * | | | 1.53 | | | | 0.66 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.53 | | | | 7.90 | | | | — | * | | | 1.52 | | | | 0.80 | | | | — | | | | — | | | | 48 | |
Year ended 3-31-2014 | | | 20.25 | | | | 20.29 | | | | — | * | | | 1.54 | | | | 0.76 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013(6) | | | 17.19 | | | | 8.93 | | | | — | * | | | 1.51 | (4) | | | 0.23 | (4) | | | — | | | | — | | | | 45 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.79 | | | | 5.12 | | | | 2 | | | | 0.81 | (4) | | | 1.61 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 17.10 | | | | -4.16 | | | | 1 | | | | 0.79 | | | | 1.39 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015(7) | | | 19.64 | | | | 6.76 | | | | — | * | | | 0.79 | (4) | | | 1.46 | (4) | | | — | | | | — | | | | 48 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.73 | | | | 4.89 | | | | 6 | | | | 1.19 | (4) | | | 1.27 | (4) | | | — | | | | — | | | | 22 | |
Year ended 3-31-2016 | | | 17.03 | | | | -4.53 | | | | 7 | | | | 1.19 | | | | 1.01 | | | | — | | | | — | | | | 45 | |
Year ended 3-31-2015 | | | 19.58 | | | | 8.25 | | | | 10 | | | | 1.18 | | | | 1.13 | | | | — | | | | — | | | | 48 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 147 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 13.59 | | | $ | 0.01 | | | $ | 2.05 | | | $ | 2.06 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 16.04 | | | | 0.00 | * | | | (2.33 | ) | | | (2.33 | ) | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Year ended 3-31-2015 | | | 15.04 | | | | 0.04 | | | | 1.08 | | | | 1.12 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.34 | | | | (0.05 | ) | | | 1.71 | | | | 1.66 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 13.48 | | | | (0.12 | ) | | | (1.95 | ) | | | (2.07 | ) | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2015 | | | 12.66 | | | | (0.10 | ) | | | 0.92 | | | | 0.82 | | | | — | | | | — | | | | — | |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.84 | | | | (0.04 | ) | | | 1.78 | | | | 1.74 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 14.05 | | | | (0.11 | ) | | | (2.03 | ) | | | (2.14 | ) | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2015 | | | 13.20 | | | | (0.09 | ) | | | 0.95 | | | | 0.86 | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
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 | ) |
Class E Shares(6) | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.76 | | | | 0.02 | | | | 2.08 | | | | 2.10 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.23 | | | | 0.03 | | | | (2.37 | ) | | | (2.34 | ) | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2015 | | | 15.23 | | | | 0.05 | | | | 1.10 | | | | 1.15 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.96 | | | | 0.03 | | | | 2.11 | | | | 2.14 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.45 | | | | 0.05 | | | | (2.40 | ) | | | (2.35 | ) | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Year ended 3-31-2015 | | | 15.43 | | | | 0.08 | | | | 1.11 | | | | 1.19 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.53 | | | | (0.01 | ) | | | 2.04 | | | | 2.03 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.01 | | | | (0.05 | ) | | | (2.32 | ) | | | (2.37 | ) | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2015 | | | 15.02 | | | | (0.02 | ) | | | 1.09 | | | | 1.07 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
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 9-30-2016 (unaudited) | | | 14.01 | | | | 0.04 | | | | 2.12 | | | | 2.16 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.50 | | | | 0.06 | | | | (2.41 | ) | | | (2.35 | ) | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Year ended 3-31-2015(8) | | | 16.41 | | | | (0.03 | ) | | | 0.26 | | | | 0.23 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.84 | | | | 0.01 | | | | 2.09 | | | | 2.10 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.33 | | | | 0.05 | | | | (2.42 | ) | | | (2.37 | ) | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Year ended 3-31-2015 | | | 15.33 | | | | 0.03 | | | | 1.10 | | | | 1.13 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
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 | ) |
| * | 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 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. |
| (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 March 31, 2015. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 148 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 15.65 | | | | 15.16 | % | | $ | 260 | | | | 1.52 | %(4) | | | 0.12 | %(4) | | | 1.69 | %(4) | | | -0.05 | %(4) | | | 36 | % |
Year ended 3-31-2016 | | | 13.59 | | | | -14.49 | | | | 360 | | | | 1.50 | | | | 0.02 | | | | 1.67 | | | | -0.15 | | | | 98 | |
Year ended 3-31-2015 | | | 16.04 | | | | 7.48 | | | | 436 | | | | 1.50 | | | | 0.23 | | | | 1.67 | | | | 0.06 | | | | 103 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.00 | | | | 14.64 | | | | 5 | | | | 2.50 | (4) | | | -0.83 | (4) | | | 2.83 | (4) | | | -1.16 | (4) | | | 36 | |
Year ended 3-31-2016 | | | 11.34 | | | | -15.38 | | | | 4 | | | | 2.50 | | | | -0.99 | | | | 2.72 | | | | -1.21 | | | | 98 | |
Year ended 3-31-2015 | | | 13.48 | | | | 6.48 | | | | 7 | | | | 2.50 | | | | -0.75 | | | | 2.71 | | | | -0.96 | | | | 103 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.58 | | | | 14.70 | | | | 35 | | | | 2.38 | (4) | | | -0.71 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 11.84 | | | | -15.20 | | | | 32 | | | | 2.35 | | | | -0.83 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015 | | | 14.05 | | | | 6.56 | | | | 35 | | | | 2.40 | | | | -0.66 | | | | — | | | | — | | | | 103 | |
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 | |
Class E Shares(6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.86 | | | | 15.26 | | | | — | * | | | 1.36 | (4) | | | 0.30 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 13.76 | | | | -14.40 | | | | — | * | | | 1.35 | | | | 0.17 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015 | | | 16.23 | | | | 7.63 | | | | — | * | | | 1.34 | | | | 0.34 | | | | — | | | | — | | | | 103 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.10 | | | | 15.33 | | | | 256 | | | | 1.26 | (4) | | | 0.44 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 13.96 | | | | -14.30 | | | | 116 | | | | 1.22 | | | | 0.35 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015 | | | 16.45 | | | | 7.78 | | | | 117 | | | | 1.23 | | | | 0.49 | | | | — | | | | — | | | | 103 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016(unaudited) | | | 15.56 | | | | 15.00 | | | | 8 | | | | 1.84 | (4) | | | -0.18 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 13.53 | | | | -14.82 | | | | 5 | | | | 1.85 | | | | -0.37 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015 | | | 16.01 | | | | 7.13 | | | | 1 | | | | 1.83 | | | | -0.16 | | | | — | | | | — | | | | 103 | |
Year ended 3-31-2014 | | | 15.02 | | | | 8.75 | | | | 1 | | | | 1.83 | | | | -0.05 | | | | — | | | | — | | | | 138 | |
Year ended 3-31-2013(7) | | | 13.87 | | | | -1.35 | | | | — | * | | | 1.80 | (4) | | | -1.09 | (4) | | | — | | | | — | | | | 142 | (9) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.17 | | | | 15.42 | | | | 9 | | | | 1.10 | (4) | | | 0.59 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 14.01 | | | | -14.20 | | | | 7 | | | | 1.09 | | | | 0.43 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015(8) | | | 16.50 | | | | 1.47 | | | | 6 | | | | 1.08 | (4) | | | -0.30 | (4) | | | — | | | | — | | | | 103 | (10) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.94 | | | | 15.17 | | | | 20 | | | | 1.52 | (4) | | | 0.14 | (4) | | | — | | | | — | | | | 36 | |
Year ended 3-31-2016 | | | 13.84 | | | | -14.48 | | | | 10 | | | | 1.47 | | | | 0.33 | | | | — | | | | — | | | | 98 | |
Year ended 3-31-2015 | | | 16.33 | | | | 7.41 | | | | 10 | | | | 1.50 | | | | 0.20 | | | | 1.53 | | | | 0.17 | | | | 103 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 149 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 26.29 | | | $ | 0.41 | | | $ | 0.50 | | | $ | 0.91 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 29.19 | | | | 0.13 | | | | (2.93 | ) | | | (2.80 | ) | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Year ended 3-31-2015 | | | 29.76 | | | | 0.17 | | | | (0.24 | ) | | | (0.07 | ) | | | (0.50 | ) | | | — | | | | (0.50 | ) |
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 | ) |
Class B Shares(4) | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.31 | | | | 0.18 | | | | 0.52 | | | | 0.70 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 27.21 | | | | (0.13 | ) | | | (2.77 | ) | | | (2.90 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 27.66 | | | | (0.14 | ) | | | (0.22 | ) | | | (0.36 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
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 | ) | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.89 | | | | 0.25 | | | | 0.53 | | | | 0.78 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 27.73 | | | | (0.06 | ) | | | (2.78 | ) | | | (2.84 | ) | | | — | | | | — | | | | — | |
Year ended 3-31-2015 | | | 28.25 | | | | (0.02 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.29 | ) | | | — | | | | (0.29 | ) |
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 | ) | | | — | | | | — | | | | — | |
Class E Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 26.46 | | | | 0.38 | | | | 0.58 | | | | 0.96 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 29.36 | | | | 0.24 | | | | (2.98 | ) | | | (2.74 | ) | | | (0.16 | ) | | | — | | | | (0.16 | ) |
Year ended 3-31-2015 | | | 29.93 | | | | 0.27 | | | | (0.21 | ) | | | 0.06 | | | | (0.63 | ) | | �� | — | | | | (0.63 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 26.50 | | | | 0.29 | | | | 0.70 | | | | 0.99 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 29.39 | | | | 0.20 | | | | (2.90 | ) | | | (2.70 | ) | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2015 | | | 29.97 | | | | 0.32 | | | | (0.24 | ) | | | 0.08 | | | | (0.66 | ) | | | — | | | | (0.66 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 26.27 | | | | 0.31 | | | | 0.58 | | | | 0.89 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 29.18 | | | | 0.08 | | | | (2.93 | ) | | | (2.85 | ) | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2015 | | | 29.75 | | | | 0.12 | | | | (0.21 | ) | | | (0.09 | ) | | | (0.48 | ) | | | — | | | | (0.48 | ) |
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 9-30-2016 (unaudited) | | | 26.62 | | | | 0.43 | | | | 0.58 | | | | 1.01 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 29.51 | | | | 0.31 | | | | (2.98 | ) | | | (2.67 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2015(7) | | | 29.18 | | | | 0.05 | | | | 0.85 | | | | 0.90 | | | | (0.57 | ) | | | — | | | | (0.57 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 26.46 | | | | 0.36 | | | | 0.58 | | | | 0.94 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 29.38 | | | | 0.16 | | | | (2.95 | ) | | | (2.79 | ) | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2015 | | | 29.95 | | | | 0.17 | | | | (0.16 | ) | | | 0.01 | | | | (0.58 | ) | | | — | | | | (0.58 | ) |
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 | ) |
| * | 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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not 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 March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 150 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
End of Period | | | Total
Return(2) | | | Net Assets,
End of Period
(in millions) | | | Ratio of
Expenses to
Average Net
Assets | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets | | | Portfolio
Turnover
Rate | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 27.20 | | | | 3.46 | % | | $ | 82 | | | | 1.69 | %(3) | | | 3.06 | %(3) | | | 41 | % |
Year ended 3-31-2016 | | | 26.29 | | | | -9.62 | | | | 166 | | | | 1.64 | | | | 0.46 | | | | 91 | |
Year ended 3-31-2015 | | | 29.19 | | | | -0.13 | | | | 150 | | | | 1.70 | | | | 0.57 | | | | 172 | |
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 | |
Class B Shares(4) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 25.01 | | | | 2.88 | | | | 1 | | | | 2.82 | (3) | | | 1.47 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 24.31 | | | | -10.66 | | | | 1 | | | | 2.73 | | | | -0.50 | | | | 91 | |
Year ended 3-31-2015 | | | 27.21 | | | | -1.27 | | | | 2 | | | | 2.90 | | | | -0.50 | | | | 172 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 25.67 | | | | 3.13 | | | | 9 | | | | 2.33 | (3) | | | 1.95 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 24.89 | | | | -10.24 | | | | 11 | | | | 2.29 | | | | -0.22 | | | | 91 | |
Year ended 3-31-2015 | | | 27.73 | | | | -0.75 | | | | 10 | | | | 2.35 | | | | -0.06 | | | | 172 | |
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 | | | 21.86 | | | | -7.29 | | | | 11 | | | | 2.47 | | | | -0.26 | | | | 49 | |
Class E Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.42 | | | | 3.63 | | | | — | * | | | 1.32 | (3) | | | 2.83 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 26.46 | | | | -9.37 | | | | — | * | | | 1.31 | | | | 0.84 | | | | 91 | |
Year ended 3-31-2015 | | | 29.36 | | | | 0.30 | | | | — | * | | | 1.31 | | | | 0.92 | | | | 172 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.49 | | | | 3.74 | | | | 109 | | | | 1.21 | (3) | | | 2.19 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 26.50 | | | | -9.24 | | | | 43 | | | | 1.18 | | | | 0.72 | | | | 91 | |
Year ended 3-31-2015 | | | 29.39 | | | | 0.38 | | | | 27 | | | | 1.21 | | | | 1.09 | | | | 172 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.16 | | | | 3.39 | | | | 1 | | | | 1.80 | (3) | | | 2.35 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 26.27 | | | | -9.77 | | | | — | * | | | 1.79 | | | | 0.28 | | | | 91 | |
Year ended 3-31-2015 | | | 29.18 | | | | -0.21 | | | | — | * | | | 1.81 | | | | 0.42 | | | | 172 | |
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 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.63 | | | | 3.79 | | | | 1 | | | | 1.06 | (3) | | | 3.19 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 26.62 | | | | -9.11 | | | | 2 | | | | 1.04 | | | | 1.07 | | | | 91 | |
Year ended 3-31-2015(7) | | | 29.51 | | | | 3.20 | | | | 2 | | | | 1.08 | (3) | | | 0.26 | (3) | | | 172 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 27.40 | | | | 3.55 | | | | 1 | | | | 1.51 | (3) | | | 2.71 | (3) | | | 41 | |
Year ended 3-31-2016 | | | 26.46 | | | | -9.52 | | | | 1 | | | | 1.47 | | | | 0.57 | | | | 91 | |
Year ended 3-31-2015 | | | 29.38 | | | | 0.15 | | | | 2 | | | | 1.47 | | | | 0.58 | | | | 172 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 151 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 9.17 | | | $ | 0.18 | | | $ | 0.29 | | | $ | 0.47 | | | $ | (0.09 | ) | | $ | — | | | $ | (0.09 | ) |
Year ended 3-31-2016 | | | 9.59 | | | | 0.34 | | | | (0.49 | ) | | | (0.15 | ) | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2015 | | | 10.06 | | | | 0.34 | | | | (0.49 | ) | | | (0.15 | ) | | | (0.32 | ) | | | — | | | | (0.32 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.16 | | | | 0.14 | | | | 0.29 | | | | 0.43 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 9.58 | | | | 0.27 | | | | (0.49 | ) | | | (0.22 | ) | | | (0.20 | ) | | | — | | | | (0.20 | ) |
Year ended 3-31-2015 | | | 10.06 | | | | 0.26 | | | | (0.49 | ) | | | (0.23 | ) | | | (0.25 | ) | | | — | | | | (0.25 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.16 | | | | 0.14 | | | | 0.30 | | | | 0.44 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 9.59 | | | | 0.27 | | | | (0.50 | ) | | | (0.23 | ) | | | (0.20 | ) | | | — | | | | (0.20 | ) |
Year ended 3-31-2015 | | | 10.06 | | | | 0.26 | | | | (0.48 | ) | | | (0.22 | ) | | | (0.25 | ) | | | — | | | | (0.25 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.16 | | | | 0.17 | | | | 0.32 | | | | 0.49 | | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Year ended 3-31-2016 | | | 9.59 | | | | 0.36 | | | | (0.49 | ) | | | (0.13 | ) | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2015 | | | 10.06 | | | | 0.36 | | | | (0.48 | ) | | | (0.12 | ) | | | (0.35 | ) | | | — | | | | (0.35 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.15 | | | | 0.15 | | | | 0.30 | | | | 0.45 | | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2016 | | | 9.57 | | | | 0.29 | | | | (0.48 | ) | | | (0.19 | ) | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2015 | | | 10.05 | | | | 0.29 | | | | (0.49 | ) | | | (0.20 | ) | | | (0.28 | ) | | | — | | | | (0.28 | ) |
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 9-30-2016 (unaudited) | | | 9.17 | | | | 0.17 | | | | 0.31 | | | | 0.48 | | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Year ended 3-31-2016 | | | 9.59 | | | | 0.36 | | | | (0.48 | ) | | | (0.12 | ) | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2015(7) | | | 10.15 | | | | 0.24 | | | | (0.56 | ) | | | (0.32 | ) | | | (0.24 | ) | | | — | | | | (0.24 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.17 | | | | 0.17 | | | | 0.30 | | | | 0.47 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 9.59 | | | | 0.34 | | | | (0.49 | ) | | | (0.15 | ) | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2015 | | | 10.07 | | | | 0.34 | | | | (0.50 | ) | | | (0.16 | ) | | | (0.32 | ) | | | — | | | | (0.32 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 152 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 9.55 | | | | 5.15 | % | | $ | 59 | | | | 0.99 | %(4) | | | 3.88 | %(4) | | | 1.34 | %(4) | | | 3.53 | %(4) | | | 4 | % |
Year ended 3-31-2016 | | | 9.17 | | | | -1.54 | | | | 133 | | | | 0.99 | | | | 3.60 | | | | 1.29 | | | | 3.30 | | | | 14 | |
Year ended 3-31-2015 | | | 9.59 | | | | -1.54 | | | | 177 | | | | 0.99 | | | | 3.39 | | | | 1.22 | | | | 3.16 | | | | 26 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.54 | | | | 4.75 | | | | 3 | | | | 1.74 | (4) | | | 2.98 | (4) | | | 2.19 | (4) | | | 2.53 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.16 | | | | -2.29 | | | | 3 | | | | 1.74 | | | | 2.84 | | | | 2.16 | | | | 2.42 | | | | 14 | |
Year ended 3-31-2015 | | | 9.58 | | | | -2.36 | | | | 5 | | | | 1.74 | | | | 2.64 | | | | 2.10 | | | | 2.28 | | | | 26 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.55 | | | | 4.86 | | | | 18 | | | | 1.74 | (4) | | | 2.97 | (4) | | | 1.96 | (4) | | | 2.75 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.16 | | | | -2.39 | | | | 20 | | | | 1.74 | | | | 2.85 | | | | 1.91 | | | | 2.68 | | | | 14 | |
Year ended 3-31-2015 | | | 9.59 | | | | -2.26 | | | | 31 | | | | 1.74 | | | | 2.64 | | | | 1.87 | | | | 2.51 | | | | 26 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.55 | | | | 5.39 | | | | 83 | | | | 0.74 | (4) | | | 3.70 | (4) | | | 0.96 | (4) | | | 3.48 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.16 | | | | -1.39 | | | | 23 | | | | 0.74 | | | | 3.85 | | | | 0.90 | | | | 3.69 | | | | 14 | |
Year ended 3-31-2015 | | | 9.59 | | | | -1.29 | | | | 53 | | | | 0.74 | | | | 3.65 | | | | 0.87 | | | | 3.52 | | | | 26 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.53 | | | | 4.88 | | | | — | * | | | 1.49 | (4) | | | 3.17 | (4) | | | 1.52 | (4) | | | 3.14 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.15 | | | | -2.02 | | | | — | * | | | 1.49 | | | | 3.11 | | | | 1.49 | | | | 3.11 | | | | 14 | |
Year ended 3-31-2015 | | | 9.57 | | | | -2.10 | | | | — | * | | | 1.46 | | | | 2.90 | | | | — | | | | — | | | | 26 | |
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 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.55 | | | | 5.27 | | | | 3 | | | | 0.75 | (4) | | | 3.61 | (4) | | | 0.78 | (4) | | | 3.58 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.17 | | | | -1.30 | | | | — | * | | | 0.76 | | | | 3.84 | | | | 0.76 | | | | 3.84 | | | | 14 | |
Year ended 3-31-2015(7) | | | 9.59 | | | | -3.23 | | | | — | * | | | 0.70 | (4) | | | 3.62 | (4) | | | — | | | | — | | | | 26 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.55 | | | | 5.15 | | | | 3 | | | | 0.99 | (4) | | | 3.70 | (4) | | | 1.20 | (4) | | | 3.49 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 9.17 | | | | -1.54 | | | | 3 | | | | 0.99 | | | | 3.58 | | | | 1.16 | | | | 3.41 | | | | 14 | |
Year ended 3-31-2015 | | | 9.59 | | | | -1.63 | | | | 5 | | | | 0.99 | | | | 3.40 | | | | 1.12 | | | | 3.27 | | | | 26 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 153 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 11.88 | | | $ | 0.32 | | | $ | 0.18 | | | $ | 0.50 | | | $ | (0.27 | ) | | $ | — | | | $ | (0.27 | ) |
Year ended 3-31-2016 | | | 13.32 | | | | 0.40 | | | | (1.09 | ) | | | (0.69 | ) | | | (0.39 | ) | | | (0.36 | ) | | | (0.75 | ) |
Year ended 3-31-2015 | | | 13.27 | | | | 0.39 | | | | 0.36 | | | | 0.75 | | | | (0.44 | ) | | | (0.26 | ) | | | (0.70 | ) |
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 9-30-2016 (unaudited) | | | 11.87 | | | | 0.24 | | | | 0.23 | | | | 0.47 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2016 | | | 13.31 | | | | 0.32 | | | | (1.09 | ) | | | (0.77 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.67 | ) |
Year ended 3-31-2015 | | | 13.27 | | | | 0.32 | | | | 0.34 | | | | 0.66 | | | | (0.36 | ) | | | (0.26 | ) | | | (0.62 | ) |
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 9-30-2016 (unaudited) | | | 11.87 | | | | 0.24 | | | | 0.23 | | | | 0.47 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2016 | | | 13.31 | | | | 0.31 | | | | (1.08 | ) | | | (0.77 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.67 | ) |
Year ended 3-31-2015 | | | 13.27 | | | | 0.30 | | | | 0.36 | | | | 0.66 | | | | (0.36 | ) | | | (0.26 | ) | | | (0.62 | ) |
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 9-30-2016 (unaudited) | | | 11.88 | | | | 0.23 | | | | 0.30 | | | | 0.53 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
Year ended 3-31-2016 | | | 13.33 | | | | 0.45 | | | | (1.10 | ) | | | (0.65 | ) | | | (0.44 | ) | | | (0.36 | ) | | | (0.80 | ) |
Year ended 3-31-2015 | | | 13.28 | | | | 0.43 | | | | 0.37 | | | | 0.80 | | | | (0.49 | ) | | | (0.26 | ) | | | (0.75 | ) |
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 9-30-2016 (unaudited) | | | 11.88 | | | | 0.26 | | | | 0.23 | | | | 0.49 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2016 | | | 13.32 | | | | 0.37 | | | | (1.09 | ) | | | (0.72 | ) | | | (0.36 | ) | | | (0.36 | ) | | | (0.72 | ) |
Year ended 3-31-2015 | | | 13.28 | | | | 0.36 | | | | 0.35 | | | | 0.71 | | | | (0.41 | ) | | | (0.26 | ) | | | (0.67 | ) |
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 9-30-2016 (unaudited) | | | 11.89 | | | | 0.30 | | | | 0.24 | | | | 0.54 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2016 | | | 13.33 | | | | 0.47 | | | | (1.09 | ) | | | (0.62 | ) | | | (0.46 | ) | | | (0.36 | ) | | | (0.82 | ) |
Year ended 3-31-2015(8) | | | 13.37 | | | | 0.25 | | | | 0.27 | | | | 0.52 | | | | (0.30 | ) | | | (0.26 | ) | | | (0.56 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.87 | | | | 0.28 | | | | 0.24 | | | | 0.52 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
Year ended 3-31-2016 | | | 13.32 | | | | 0.42 | | | | (1.10 | ) | | | (0.68 | ) | | | (0.41 | ) | | | (0.36 | ) | | | (0.77 | ) |
Year ended 3-31-2015 | | | 13.28 | | | | 0.41 | | | | 0.35 | | | | 0.76 | | | | (0.46 | ) | | | (0.26 | ) | | | (0.72 | ) |
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 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. |
| (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 March 31, 2015. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 154 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 12.11 | | | | 4.28 | % | | $ | 77 | | | | 1.30 | %(4) | | | 5.32 | %(4) | | | 1.39 | %(4) | | | 5.23 | %(4) | | | 42 | % |
Year ended 3-31-2016 | | | 11.88 | | | | -5.22 | | | | 248 | | | | 1.30 | | | | 3.19 | | | | 1.36 | | | | 3.13 | | | | 73 | |
Year ended 3-31-2015 | | | 13.32 | | | | 5.84 | | | | 253 | | | | 1.30 | | | | 2.94 | | | | 1.38 | | | | 2.86 | | | | 137 | |
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 9-30-2016 (unaudited) | | | 12.11 | | | | 4.01 | | | | 2 | | | | 1.96 | (4) | | | 3.89 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 11.87 | | | | -5.84 | | | | 2 | | | | 1.94 | | | | 2.56 | | | | — | | | | — | | | | 73 | |
Year ended 3-31-2015 | | | 13.31 | | | | 5.08 | | | | 2 | | | | 1.98 | | | | 2.40 | | | | — | | | | — | | | | 137 | |
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 9-30-2016 (unaudited) | | | 12.11 | | | | 4.02 | | | | 13 | | | | 1.94 | (4) | | | 3.92 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 11.87 | | | | -5.83 | | | | 14 | | | | 1.93 | | | | 2.51 | | | | — | | | | — | | | | 73 | |
Year ended 3-31-2015 | | | 13.31 | | | | 5.10 | | | | 13 | | | | 1.95 | | | | 2.28 | | | | — | | | | — | | | | 137 | |
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 9-30-2016 (unaudited) | | | 12.12 | | | | 4.56 | | | | 255 | | | | 0.89 | (4) | | | 3.81 | (4) | | | 0.97 | (4) | | | 3.73 | (4) | | | 42 | |
Year ended 3-31-2016 | | | 11.88 | | | | -4.96 | | | | 20 | | | | 0.94 | | | | 3.57 | | | | 0.95 | | | | 3.56 | | | | 73 | |
Year ended 3-31-2015 | | | 13.33 | | | | 6.22 | | | | 22 | | | | 0.94 | | | | 3.21 | | | | 0.98 | | | | 3.17 | | | | 137 | |
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 9-30-2016 (unaudited) | | | 12.12 | | | | 4.22 | | | | — | * | | | 1.55 | (4) | | | 4.27 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 11.88 | | | | -5.46 | | | | — | * | | | 1.56 | | | | 2.96 | | | | — | | | | — | | | | 73 | |
Year ended 3-31-2015 | | | 13.32 | | | | 5.47 | | | | — | * | | | 1.58 | | | | 2.75 | | | | — | | | | — | | | | 137 | |
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 | (9) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.13 | | | | 4.62 | | | | 1 | | | | 0.81 | (4) | | | 4.94 | (4) | | | — | | | | — | | | | 42 | |
Year ended 3-31-2016 | | | 11.89 | | | | -4.74 | | | | 1 | | | | 0.81 | | | | 3.73 | | | | — | | | | — | | | | 73 | |
Year ended 3-31-2015(8) | | | 13.33 | | | | 4.05 | | | | 1 | | | | 0.83 | (4) | | | 2.94 | (4) | | | — | | | | — | | | | 137 | (10) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.11 | | | | 4.43 | | | | 4 | | | | 1.19 | (4) | | | 4.67 | (4) | | | 1.22 | (4) | | | 4.64 | (4) | | | 42 | |
Year ended 3-31-2016 | | | 11.87 | | | | -5.15 | | | | 4 | | | | 1.19 | | | | 3.32 | | | | 1.22 | | | | 3.29 | | | | 73 | |
Year ended 3-31-2015 | | | 13.32 | | | | 5.88 | | | | 5 | | | | 1.19 | | | | 3.11 | | | | 1.23 | | | | 3.07 | | | | 137 | |
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.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 155 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY GLOBAL 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 9-30-2016 (unaudited) | | $ | 39.23 | | | $ | 0.04 | | | $ | 1.18 | | | $ | 1.22 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 42.75 | | | | (0.09 | ) | | | (2.49 | ) | | | (2.58 | ) | | | (0.04 | ) | | | (0.90 | ) | | | (0.94 | ) |
Year ended 3-31-2015 | | | 41.15 | | | | 0.19 | | | | 1.95 | | | | 2.14 | | | | (0.03 | ) | | | (0.51 | ) | | | (0.54 | ) |
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 | | | | — | | | | — | | | | — | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 34.07 | | | | (0.22 | ) | | | 1.08 | | | | 0.86 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 37.61 | | | | (0.44 | ) | | | (2.20 | ) | | | (2.64 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 36.59 | | | | (0.15 | ) | | | 1.68 | | | | 1.53 | | | | — | | | | (0.51 | ) | | | (0.51 | ) |
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 | ) | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 34.26 | | | | (0.15 | ) | | | 1.08 | | | | 0.93 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 37.68 | | | | (0.34 | ) | | | (2.18 | ) | | | (2.52 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 36.57 | | | | (0.09 | ) | | | 1.71 | | | | 1.62 | | | | — | | | | (0.51 | ) | | | (0.51 | ) |
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 | ) | | | — | | | | — | | | | — | |
Class E Shares(6) | |
Six-month period ended 9-30-2016 (unaudited) | | | 39.38 | | | | 0.03 | | | | 1.25 | | | | 1.28 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 42.83 | | | | 0.02 | | | | (2.50 | ) | | | (2.48 | ) | | | (0.07 | ) | | | (0.90 | ) | | | (0.97 | ) |
Year ended 3-31-2015 | | | 41.19 | | | | 0.31 | | | | 1.94 | | | | 2.25 | | | | (0.10 | ) | | | (0.51 | ) | | | (0.61 | ) |
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 | | | | — | | | | — | | | | — | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 39.81 | | | | (0.03 | ) | | | 1.34 | | | | 1.31 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 43.24 | | | | 0.05 | | | | (2.49 | ) | | | (2.44 | ) | | | (0.09 | ) | | | (0.90 | ) | | | (0.99 | ) |
Year ended 3-31-2015 | | | 41.57 | | | | 0.35 | | | | 1.96 | | | | 2.31 | | | | (0.13 | ) | | | (0.51 | ) | | | (0.64 | ) |
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 | | | | — | | | | — | | | | — | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 39.08 | | | | (0.07 | ) | | | 1.24 | | | | 1.17 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 42.64 | | | | (0.20 | ) | | | (2.46 | ) | | | (2.66 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 41.11 | | | | 0.01 | | | | 2.03 | | | | 2.04 | | | | — | | | | (0.51 | ) | | | (0.51 | ) |
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 9-30-2016 (unaudited) | | | 39.92 | | | | 0.00 | * | | | 1.34 | | | | 1.34 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 43.32 | | | | 0.13 | | | | (2.52 | ) | | | (2.39 | ) | | | (0.11 | ) | | | (0.90 | ) | | | (1.01 | ) |
Year ended 3-31-2015(8) | | | 42.56 | | | | 0.15 | | | | 1.22 | | | | 1.37 | | | | (0.10 | ) | | | (0.51 | ) | | | (0.61 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 39.37 | | | | 0.00 | * | | | 1.24 | | | | 1.24 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 42.86 | | | | (0.05 | ) | | | (2.49 | ) | | | (2.54 | ) | | | (0.05 | ) | | | (0.90 | ) | | | (0.95 | ) |
Year ended 3-31-2015 | | | 41.23 | | | | 0.24 | | | | 1.96 | | | | 2.20 | | | | (0.06 | ) | | | (0.51 | ) | | | (0.57 | ) |
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 | | | | — | | | | — | | | | — | |
| * | 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 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. |
| (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 March 31, 2015. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (10) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 156 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 40.45 | | | | 3.11 | % | | $ | 121 | | | | 1.49 | %(4) | | | 0.19 | %(4) | | | — | % | | | — | % | | | 25 | % |
Year ended 3-31-2016 | | | 39.23 | | | | -6.12 | | | | 375 | | | | 1.47 | | | | -0.22 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 42.75 | | | | 5.26 | | | | 409 | | | | 1.45 | | | | 0.47 | | | | — | | | | — | | | | 61 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 34.93 | | | | 2.52 | | | | 2 | | | | 2.66 | (4) | | | -1.29 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 34.07 | | | | -7.12 | | | | 3 | | | | 2.52 | | | | -1.22 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 37.61 | | | | 4.25 | | | | 4 | | | | 2.43 | | | | -0.40 | | | | — | | | | — | | | | 61 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 35.19 | | | | 2.72 | | | | 25 | | | | 2.21 | (4) | | | -0.87 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 34.26 | | | | -6.79 | | | | 25 | | | | 2.22 | | | | -0.96 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 37.68 | | | | 4.51 | | | | 26 | | | | 2.21 | | | | -0.25 | | | | — | | | | — | | | | 61 | |
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 | |
Class E Shares(6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 40.66 | | | | 3.25 | | | | — | * | | | 1.20 | (4) | | | 0.14 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 39.38 | | | | -5.87 | | | | — | * | | | 1.20 | | | | 0.05 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 42.83 | | | | 5.55 | | | | — | * | | | 1.21 | | | | 0.74 | | | | — | | | | — | | | | 61 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 41.12 | | | | 3.29 | | | | 309 | | | | 1.12 | (4) | | | -0.15 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 39.81 | | | | -5.73 | | | | 78 | | | | 1.09 | | | | 0.13 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 43.24 | | | | 5.66 | | | | 77 | | | | 1.09 | | | | 0.84 | | | | — | | | | — | | | | 61 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 40.25 | | | | 3.00 | | | | 3 | | | | 1.69 | (4) | | | -0.36 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 39.08 | | | | -6.32 | | | | 2 | | | | 1.68 | | | | -0.50 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 42.64 | | | | 5.03 | | | | 1 | | | | 1.69 | | | | 0.02 | | | | — | | | | — | | | | 61 | |
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 | (9) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 41.26 | | | | 3.36 | | | | 8 | | | | 0.95 | (4) | | | 0.02 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 39.92 | | | | -5.61 | | | | 3 | | | | 0.94 | | | | 0.31 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015(8) | | | 43.32 | | | | 3.31 | | | | 3 | | | | 0.95 | (4) | | | 0.55 | (4) | | | — | | | | — | | | | 61 | (10) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 40.61 | | | | 3.15 | | | | 15 | | | | 1.35 | (4) | | | -0.02 | (4) | | | — | | | | — | | | | 25 | |
Year ended 3-31-2016 | | | 39.37 | | | | -6.00 | | | | 17 | | | | 1.36 | | | | -0.13 | | | | — | | | | — | | | | 51 | |
Year ended 3-31-2015 | | | 42.86 | | | | 5.40 | | | | 11 | | | | 1.35 | | | | 0.57 | | | | — | | | | — | | | | 61 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 157 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 13.96 | | | $ | 0.37 | | | $ | 0.41 | | | $ | 0.78 | | | $ | (0.33 | ) | | $ | — | | | $ | (0.33 | ) |
Year ended 3-31-2016 | | | 15.42 | | | | 0.59 | | | | (1.46 | ) | | | (0.87 | ) | | | (0.59 | ) | | | — | | | | (0.59 | ) |
Year ended 3-31-2015 | | | 15.58 | | | | 0.62 | | | | (0.18 | ) | | | 0.44 | | | | (0.60 | ) | | | — | | | | (0.60 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.72 | | | | 0.29 | | | | 0.40 | | | | 0.69 | | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2016 | | | 15.15 | | | | 0.46 | | | | (1.43 | ) | | | (0.97 | ) | | | (0.46 | ) | | | — | | | | (0.46 | ) |
Year ended 3-31-2015 | | | 15.32 | | | | 0.48 | | | | (0.18 | ) | | | 0.30 | | | | (0.47 | ) | | | — | | | | (0.47 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.80 | | | | 0.31 | | | | 0.41 | | | | 0.72 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
Year ended 3-31-2016 | | | 15.24 | | | | 0.49 | | | | (1.43 | ) | | | (0.94 | ) | | | (0.50 | ) | | | — | | | | (0.50 | ) |
Year ended 3-31-2015 | | | 15.41 | | | | 0.51 | | | | (0.18 | ) | | | 0.33 | | | | (0.50 | ) | | | — | | | | (0.50 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.97 | | | | 0.35 | | | | 0.42 | | | | 0.77 | | | | (0.33 | ) | | | — | | | | (0.33 | ) |
Year ended 3-31-2016 | | | 15.42 | | | | 0.58 | | | | (1.45 | ) | | | (0.87 | ) | | | (0.58 | ) | | | — | | | | (0.58 | ) |
Year ended 3-31-2015 | | | 15.58 | | | | 0.62 | | | | (0.19 | ) | | | 0.43 | | | | (0.59 | ) | | | — | | | | (0.59 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.08 | | | | 0.36 | | | | 0.45 | | | | 0.81 | | | | (0.36 | ) | | | — | | | | (0.36 | ) |
Year ended 3-31-2016 | | | 15.54 | | | | 0.64 | | | | (1.46 | ) | | | (0.82 | ) | | | (0.64 | ) | | | — | | | | (0.64 | ) |
Year ended 3-31-2015 | | | 15.70 | | | | 0.67 | | | | (0.17 | ) | | | 0.50 | | | | (0.66 | ) | | | — | | | | (0.66 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.96 | | | | 0.34 | | | | 0.41 | | | | 0.75 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
Year ended 3-31-2016 | | | 15.41 | | | | 0.56 | | | | (1.46 | ) | | | (0.90 | ) | | | (0.55 | ) | | | — | | | | (0.55 | ) |
Year ended 3-31-2015 | | | 15.57 | | | | 0.59 | | | | (0.18 | ) | | | 0.41 | | | | (0.57 | ) | | | — | | | | (0.57 | ) |
Year ended 3-31-2014 | | | 14.79 | | | | 0.64 | | | | 0.70 | | | | 1.34 | | | | (0.56 | ) | | | — | | | | (0.56 | ) |
Year ended 3-31-2013(6) | | | 14.37 | | | | 0.15 | | | | 0.32 | | | | 0.47 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.09 | | | | 0.40 | | | | 0.42 | | | | 0.82 | | | | (0.37 | ) | | | — | | | | (0.37 | ) |
Year ended 3-31-2016 | | | 15.55 | | | | 0.67 | | | | (1.47 | ) | | | (0.80 | ) | | | (0.66 | ) | | | — | | | | (0.66 | ) |
Year ended 3-31-2015(7) | | | 15.95 | | | | 0.45 | | | | (0.40 | ) | | | 0.05 | | | | (0.45 | ) | | | — | | | | (0.45 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.02 | | | | 0.37 | | | | 0.42 | | | | 0.79 | | | | (0.34 | ) | | | — | | | | (0.34 | ) |
Year ended 3-31-2016 | | | 15.48 | | | | 0.63 | | | | (1.49 | ) | | | (0.86 | ) | | | (0.60 | ) | | | — | | | | (0.60 | ) |
Year ended 3-31-2015 | | | 15.64 | | | | 0.67 | | | | (0.21 | ) | | | 0.46 | | | | (0.62 | ) | | | — | | | | (0.62 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 158 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 14.41 | | | | 5.66 | % | | $ | 225 | | | | 1.29 | %(4) | | | 5.27 | %(4) | | | — | % | | | — | % | | | 35 | % |
Year ended 3-31-2016 | | | 13.96 | | | | -5.74 | | | | 623 | | | | 1.28 | | | | 4.09 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015 | | | 15.42 | | | | 2.87 | | | | 653 | | | | 1.29 | | | | 4.00 | | | | — | | | | — | | | | 69 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.14 | | | | 5.10 | | | | 4 | | | | 2.17 | (4) | | | 4.12 | (4) | | | — | | | | — | | | | 35 | |
Year ended 3-31-2016 | | | 13.72 | | | | -6.51 | | | | 4 | | | | 2.17 | | | | 3.24 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015 | | | 15.15 | | | | 1.95 | | | | 5 | | | | 2.18 | | | | 3.12 | | | | — | | | | — | | | | 69 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.24 | | | | 5.31 | | | | 52 | | | | 1.90 | (4) | | | 4.39 | (4) | | | — | | | | — | | | | 35 | |
Year ended 3-31-2016 | | | 13.80 | | | | -6.26 | | | | 52 | | | | 1.90 | | | | 3.45 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015 | | | 15.24 | | | | 2.18 | | | | 50 | | | | 1.91 | | | | 3.34 | | | | — | | | | — | | | | 69 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.41 | | | | 5.57 | | | | 3 | | | | 1.33 | (4) | | | 4.94 | (4) | | | 1.60 | (4) | | | 4.67 | (4) | | | 35 | |
Year ended 3-31-2016 | | | 13.97 | | | | -5.73 | | | | 3 | | | | 1.33 | | | | 4.03 | | | | 1.60 | | | | 3.76 | | | | 53 | |
Year ended 3-31-2015 | | | 15.42 | | | | 2.82 | | | | 3 | | | | 1.33 | | | | 3.97 | | | | 1.61 | | | | 3.69 | | | | 69 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.53 | | | | 5.81 | | | | 453 | | | | 0.95 | (4) | | | 4.90 | (4) | | | — | | | | — | | | | 35 | |
Year ended 3-31-2016 | | | 14.08 | | | | -5.35 | | | | 62 | | | | 0.92 | | | | 4.39 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015 | | | 15.54 | | | | 3.22 | | | | 48 | | | | 0.92 | | | | 4.28 | | | | — | | | | — | | | | 69 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.40 | | | | 5.46 | | | | — | * | | | 1.53 | (4) | | | 4.74 | (4) | | | — | | | | — | | | | 35 | |
Year ended 3-31-2016 | | | 13.96 | | | | -5.90 | | | | — | * | | | 1.52 | | | | 3.87 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015 | | | 15.41 | | | | 2.64 | | | | — | * | | | 1.51 | | | | 3.80 | | | | — | | | | — | | | | 69 | |
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 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.54 | | | | 5.88 | | | | 2 | | | | 0.78 | (4) | | | 5.51 | (4) | | | — | | | | — | | | | 35 | |
Year ended 3-31-2016 | | | 14.09 | | | | -5.21 | | | | 2 | | | | 0.78 | | | | 4.58 | | | | — | | | | — | | | | 53 | |
Year ended 3-31-2015(7) | | | 15.55 | | | | 0.36 | | | | 2 | | | | 0.78 | (4) | | | 4.40 | (4) | | | — | | | | — | | | | 69 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.47 | | | | 5.70 | | | | 1 | | | | 1.17 | (4) | | | 5.19 | (4) | | | 1.19 | (4) | | | 5.17 | (4) | | | 35 | |
Year ended 3-31-2016 | | | 14.02 | | | | -5.61 | | | | 2 | | | | 1.17 | | | | 4.28 | | | | 1.18 | | | | 4.27 | | | | 53 | |
Year ended 3-31-2015 | | | 15.48 | | | | 2.97 | | | | 3 | | | | 1.17 | | | | 4.29 | | | | 1.18 | | | | 4.28 | | | | 69 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 159 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 6.91 | | | $ | 0.28 | | | $ | 0.47 | | | $ | 0.75 | | | $ | (0.28 | ) | | $ | — | | | $ | (0.28 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.58 | | | | (1.19 | ) | | | (0.61 | ) | | | (0.57 | ) | | | — | | | | (0.57 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.57 | | | | (0.52 | ) | | | 0.05 | | | | (0.57 | ) | | | (0.14 | ) | | | (0.71 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.25 | | | | 0.48 | | | | 0.73 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.53 | | | | (1.19 | ) | | | (0.66 | ) | | | (0.52 | ) | | | — | | | | (0.52 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.51 | | | | (0.52 | ) | | | (0.01 | ) | | | (0.51 | ) | | | (0.14 | ) | | | (0.65 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.26 | | | | 0.47 | | | | 0.73 | | | | (0.26 | ) | | | — | | | | (0.26 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.53 | | | | (1.19 | ) | | | (0.66 | ) | | | (0.52 | ) | | | — | | | | (0.52 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.51 | | | | (0.52 | ) | | | (0.01 | ) | | | (0.51 | ) | | | (0.14 | ) | | | (0.65 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.27 | | | | 0.47 | | | | 0.74 | | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.56 | | | | (1.19 | ) | | | (0.63 | ) | | | (0.55 | ) | | | — | | | | (0.55 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.54 | | | | (0.51 | ) | | | 0.03 | | | | (0.55 | ) | | | (0.14 | ) | | | (0.69 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.29 | | | | 0.47 | | | | 0.76 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.60 | | | | (1.19 | ) | | | (0.59 | ) | | | (0.59 | ) | | | — | | | | (0.59 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.59 | | | | (0.52 | ) | | | 0.07 | | | | (0.59 | ) | | | (0.14 | ) | | | (0.73 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.27 | | | | 0.47 | | | | 0.74 | | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.55 | | | | (1.19 | ) | | | (0.64 | ) | | | (0.54 | ) | | | — | | | | (0.54 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.54 | | | | (0.52 | ) | | | 0.02 | | | | (0.54 | ) | | | (0.14 | ) | | | (0.68 | ) |
Year ended 3-31-2014 | | | 8.72 | | | | 0.52 | | | | 0.21 | | | | 0.73 | | | | (0.57 | ) | | | (0.13 | ) | | | (0.70 | ) |
Year ended 3-31-2013(6) | | | 8.54 | | | | 0.16 | | | | 0.17 | | | | 0.33 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.30 | | | | 0.47 | | | | 0.77 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.60 | | | | (1.18 | ) | | | (0.58 | ) | | | (0.60 | ) | | | — | | | | (0.60 | ) |
Year ended 3-31-2015(7) | | | 8.63 | | | | 0.40 | | | | (0.40 | ) | | | 0.00 | * | | | (0.40 | ) | | | (0.14 | ) | | | (0.54 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 6.91 | | | | 0.28 | | | | 0.47 | | | | 0.75 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
Year ended 3-31-2016 | | | 8.09 | | | | 0.58 | | | | (1.19 | ) | | | (0.61 | ) | | | (0.57 | ) | | | — | | | | (0.57 | ) |
Year ended 3-31-2015 | | | 8.75 | | | | 0.57 | | | | (0.52 | ) | | | 0.05 | | | | (0.57 | ) | | | (0.14 | ) | | | (0.71 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 160 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 7.38 | | | | 11.04 | % | | $ | 1,421 | | | | 0.98 | %(4) | | | 7.79 | %(4) | | | — | % | | | — | % | | | 19 | % |
Year ended 3-31-2016 | | | 6.91 | | | | -7.75 | | | | 1,865 | | | | 0.96 | | | | 7.71 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | 0.62 | | | | 2,920 | | | | 0.94 | | | | 6.70 | | | | — | | | | — | | | | 44 | |
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 | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 10.63 | | | | 83 | | | | 1.72 | (4) | | | 7.04 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -8.43 | | | | 84 | | | | 1.70 | | | | 6.98 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | -0.13 | | | | 133 | | | | 1.67 | | | | 5.98 | | | | — | | | | — | | | | 44 | |
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 | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 10.65 | | | | 1,016 | | | | 1.67 | (4) | | | 7.08 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -8.40 | | | | 1,025 | | | | 1.66 | | | | 7.02 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | -0.07 | | | | 1,618 | | | | 1.64 | | | | 6.02 | | | | — | | | | — | | | | 44 | |
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 | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 10.93 | | | | 9 | | | | 1.19 | (4) | | | 7.56 | (4) | | | 1.30 | (4) | | | 7.45 | (4) | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -8.01 | | | | 8 | | | | 1.23 | | | | 7.47 | | | | 1.30 | | | | 7.40 | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | 0.30 | | | | 10 | | | | 1.26 | | | | 6.42 | | | | — | | | | — | | | | 44 | |
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 | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 11.18 | | | | 1,698 | | | | 0.72 | (4) | | | 8.01 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -7.52 | | | | 1,266 | | | | 0.70 | | | | 7.94 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | 0.88 | | | | 2,523 | | | | 0.69 | | | | 6.91 | | | | — | | | | — | | | | 44 | |
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 | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 10.86 | | | | 68 | | | | 1.31 | (4) | | | 7.44 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -8.07 | | | | 62 | | | | 1.30 | | | | 7.44 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | 0.31 | | | | 58 | | | | 1.29 | | | | 6.45 | | | | — | | | | — | | | | 44 | |
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 | (8) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 11.30 | | | | 45 | | | | 0.56 | (4) | | | 8.20 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -7.35 | | | | 55 | | | | 0.56 | | | | 8.36 | | | | — | | | | — | | | | 29 | |
Year ended 3-31-2015(7) | | | 8.09 | | | | 0.13 | | | | 13 | | | | 0.54 | (4) | | | 7.47 | (4) | | | — | | | | — | | | | 44 | (9) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 7.38 | | | | 11.05 | | | | 399 | | | | 0.96 | (4) | | | 7.80 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 6.91 | | | | -7.76 | | | | 406 | | | | 0.95 | | | | 7.69 | | | | 0.95 | | | | 7.69 | | | | 29 | |
Year ended 3-31-2015 | | | 8.09 | | | | 0.64 | | | | 740 | | | | 0.94 | | | | 6.69 | | | | 0.95 | | | | 6.68 | | | | 44 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 161 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 15.97 | | | $ | 0.21 | | | $ | 0.72 | | | $ | 0.93 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 17.88 | | | | 0.20 | | | | (1.97 | ) | | | (1.77 | ) | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Year ended 3-31-2015 | | | 19.04 | | | | 0.19 | | | | 0.67 | | | | 0.86 | | | | (0.23 | ) | | | (1.79 | ) | | | (2.02 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.24 | | | | 0.09 | | | | 0.66 | | | | 0.75 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.97 | | | | 0.05 | | | | (1.76 | ) | | | (1.71 | ) | | | (0.02 | ) | | | — | | | | (0.02 | ) |
Year ended 3-31-2015 | | | 17.23 | | | | 0.03 | | | | 0.59 | | | | 0.62 | | | | (0.09 | ) | | | (1.79 | ) | | | (1.88 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.27 | | | | 0.11 | | | | 0.67 | | | | 0.78 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.00 | | | | 0.06 | | | | (1.75 | ) | | | (1.69 | ) | | | (0.04 | ) | | | — | | | | (0.04 | ) |
Year ended 3-31-2015 | | | 17.25 | | | | 0.05 | | | | 0.61 | | | | 0.66 | | | | (0.12 | ) | | | (1.79 | ) | | | (1.91 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.08 | | | | 0.17 | | | | 0.75 | | | | 0.92 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 17.99 | | | | 0.17 | | | | (1.97 | ) | | | (1.80 | ) | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2015 | | | 19.14 | | | | 0.16 | | | | 0.68 | | | | 0.84 | | | | (0.20 | ) | | | (1.79 | ) | | | (1.99 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.07 | | | | 0.18 | | | | 0.77 | | | | 0.95 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 17.99 | | | | 0.24 | | | | (1.97 | ) | | | (1.73 | ) | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2015 | | | 19.15 | | | | 0.25 | | | | 0.68 | | | | 0.93 | | | | (0.30 | ) | | | (1.79 | ) | | | (2.09 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.97 | | | | 0.15 | | | | 0.75 | | | | 0.90 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 17.87 | | | | 0.13 | | | | (1.94 | ) | | | (1.81 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2015 | | | 19.03 | | | | 0.10 | | | | 0.71 | | | | 0.81 | | | | (0.18 | ) | | | (1.79 | ) | | | (1.97 | ) |
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 9-30-2016 (unaudited) | | | 16.11 | | | | 0.21 | | | | 0.76 | | | | 0.97 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.04 | | | | 0.23 | | | | (1.94 | ) | | | (1.71 | ) | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2015(7) | | | 20.09 | | | | 0.13 | | | | (0.12 | ) | | | 0.01 | | | | (0.27 | ) | | | (1.79 | ) | | | (2.06 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.08 | | | | 0.18 | | | | 0.75 | | | | 0.93 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.00 | | | | 0.21 | | | | (1.98 | ) | | | (1.77 | ) | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2015 | | | 19.16 | | | | 0.18 | | | | 0.70 | | | | 0.88 | | | | (0.25 | ) | | | (1.79 | ) | | | (2.04 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 162 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 16.90 | | | | 5.82 | % | | $ | 757 | | | | 1.30 | %(4) | | | 2.61 | %(4) | | | — | % | | | — | % | | | 34 | % |
Year ended 3-31-2016 | | | 15.97 | | | | -9.95 | | | | 1,532 | | | | 1.31 | | | | 1.15 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 17.88 | | | | 4.98 | | | | 1,383 | | | | 1.35 | | | | 0.99 | | | | — | | | | — | | | | 87 | |
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 | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.99 | | | | 5.27 | | | | 9 | | | | 2.23 | (4) | | | 1.24 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 14.24 | | | | -10.70 | | | | 10 | | | | 2.20 | | | | 0.31 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 15.97 | | | | 4.02 | | | | 13 | | | | 2.20 | | | | 0.17 | | | | — | | | | — | | | | 87 | |
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 | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.05 | | | | 5.47 | | | | 238 | | | | 1.97 | (4) | | | 1.50 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 14.27 | | | | -10.54 | | | | 253 | | | | 1.98 | | | | 0.40 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 16.00 | | | | 4.25 | | | | 168 | | | | 2.02 | | | | 0.32 | | | | — | | | | — | | | | 87 | |
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 | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.00 | | | | 5.72 | | | | 5 | | | | 1.37 | (4) | | | 2.08 | (4) | | | 1.70 | (4) | | | 1.75 | (4) | | | 34 | |
Year ended 3-31-2016 | | | 16.08 | | | | -10.05 | | | | 5 | | | | 1.45 | | | | 1.01 | | | | 1.69 | | | | 0.77 | | | | 62 | |
Year ended 3-31-2015 | | | 17.99 | | | | 4.82 | | | | 5 | | | | 1.53 | | | | 0.84 | | | | 1.74 | | | | 0.63 | | | | 87 | |
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 | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.02 | | | | 5.91 | | | | 2,717 | | | | 0.97 | (4) | | | 2.25 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 16.07 | | | | -9.63 | | | | 1,885 | | | | 0.98 | | | | 1.44 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 17.99 | | | | 5.32 | | | | 1,347 | | | | 1.02 | | | | 1.30 | | | | — | | | | — | | | | 87 | |
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 | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.87 | | | | 5.63 | | | | 45 | | | | 1.56 | (4) | | | 1.81 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 15.97 | | | | -10.15 | | | | 36 | | | | 1.58 | | | | 0.80 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 17.87 | | | | 4.70 | | | | 19 | | | | 1.61 | | | | 0.54 | | | | — | | | | — | | | | 87 | |
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 | (8) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.08 | | | | 6.02 | | | | 371 | | | | 0.82 | (4) | | | 2.52 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 16.11 | | | | -9.52 | | | | 289 | | | | 0.83 | | | | 1.40 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015(7) | | | 18.04 | | | | 0.48 | | | | 21 | | | | 0.86 | (4) | | | 1.10 | (4) | | | — | | | | — | | | | 87 | (9) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.01 | | | | 5.78 | | | | 393 | | | | 1.23 | (4) | | | 2.25 | (4) | | | — | | | | — | | | | 34 | |
Year ended 3-31-2016 | | | 16.08 | | | | -9.88 | | | | 572 | | | | 1.25 | | | | 1.24 | | | | — | | | | — | | | | 62 | |
Year ended 3-31-2015 | | | 18.00 | | | | 5.04 | | | | 526 | | | | 1.27 | | | | 0.95 | | | | — | | | | — | | | | 87 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 163 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY LARGE CAP GROWTH FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income
(Loss)(1) | | |
Net Realized
and Unrealized
Gain (Loss) on
Investments | | | Total from
Investment
Operations | | | Distributions
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 17.66 | | | $ | 0.00 | * | | $ | 1.08 | | | $ | 1.08 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 19.19 | | | | (0.03 | ) | | | (0.32 | ) | | | (0.35 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 17.59 | | | | (0.04 | ) | | | 3.03 | | | | 2.99 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.22 | | | | (0.07 | ) | | | 0.87 | | | | 0.80 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.82 | | | | (0.16 | ) | | | (0.26 | ) | | | (0.42 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 14.84 | | | | (0.16 | ) | | | 2.53 | | | | 2.37 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.19 | | | | (0.06 | ) | | | 0.93 | | | | 0.87 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.78 | | | | (0.14 | ) | | | (0.27 | ) | | | (0.41 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 15.64 | | | | (0.15 | ) | | | 2.68 | | | | 2.53 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.64 | | | | 0.00 | * | | | 1.08 | | | | 1.08 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.17 | | | | (0.03 | ) | | | (0.32 | ) | | | (0.35 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 17.57 | | | | (0.04 | ) | | | 3.03 | | | | 2.99 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.41 | | | | 0.02 | | | | 1.13 | | | | 1.15 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.90 | | | | 0.02 | | | | (0.33 | ) | | | (0.31 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 18.15 | | | | 0.01 | | | | 3.13 | | | | 3.14 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.16 | | | | (0.03 | ) | | | 1.05 | | | | 1.02 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.74 | | | | (0.09 | ) | | | (0.31 | ) | | | (0.40 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 17.25 | | | | (0.09 | ) | | | 2.97 | | | | 2.88 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.47 | | | | 0.04 | | | | 1.13 | | | | 1.17 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.93 | | | | 0.05 | | | | (0.33 | ) | | | (0.28 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015(6) | | | 18.91 | | | | 0.02 | | | | 2.39 | | | | 2.41 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.04 | | | | 0.01 | | | | 1.11 | | | | 1.12 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.57 | | | | (0.01 | ) | | | (0.34 | ) | | | (0.35 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Year ended 3-31-2015 | | | 17.89 | | | | (0.02 | ) | | | 3.09 | | | | 3.07 | | | | — | | | | (1.39 | ) | | | (1.39 | ) |
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 | | | | — | | | | — | | | | — | |
| * | 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 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 164 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 18.74 | | | | 6.12 | % | | $ | 505 | | | | 1.15 | %(4) | | | 0.01 | %(4) | | | 1.18 | %(4) | | | -0.02 | %(4) | | | 20 | % |
Year ended 3-31-2016 | | | 17.66 | | | | -2.08 | | | | 1,197 | | | | 1.15 | | | | -0.15 | | | | 1.16 | | | | -0.16 | | | | 38 | |
Year ended 3-31-2015 | | | 19.19 | | | | 17.45 | | | | 1,093 | | | | 1.15 | | | | -0.20 | | | | 1.17 | | | | -0.22 | | | | 36 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.02 | | | | 5.63 | | | | 11 | | | | 2.09 | (4) | | | -0.96 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 14.22 | | | | -2.98 | | | | 11 | | | | 2.07 | | | | -1.07 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 15.82 | | | | 16.49 | | | | 12 | | | | 2.01 | | | | -1.06 | | | | — | | | | — | | | | 36 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.06 | | | | 5.73 | | | | 107 | | | | 1.87 | (4) | | | -0.74 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 15.19 | | | | -2.74 | | | | 107 | | | | 1.86 | | | | -0.85 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 16.78 | | | | 16.67 | | | | 94 | | | | 1.86 | | | | -0.92 | | | | — | | | | — | | | | 36 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.72 | | | | 6.12 | | | | 12 | | | | 1.15 | (4) | | | -0.02 | (4) | | | 1.36 | (4) | | | -0.23 | (4) | | | 20 | |
Year ended 3-31-2016 | | | 17.64 | | | | -2.08 | | | | 12 | | | | 1.15 | | | | -0.14 | | | | 1.35 | | | | -0.34 | | | | 38 | |
Year ended 3-31-2015 | | | 19.17 | | | | 17.47 | | | | 9 | | | | 1.15 | | | | -0.21 | | | | 1.39 | | | | -0.45 | | | | 36 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.56 | | | | 6.25 | | | | 957 | | | | 0.88 | (4) | | | 0.20 | (4) | | | 0.89 | (4) | | | 0.19 | (4) | | | 20 | |
Year ended 3-31-2016 | | | 18.41 | | | | -1.79 | | | | 272 | | | | 0.88 | | | | 0.11 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 19.90 | | | | 17.75 | | | | 318 | | | | 0.88 | | | | 0.04 | | | | — | | | | — | | | | 36 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.18 | | | | 5.94 | | | | 22 | | | | 1.47 | (4) | | | -0.35 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 17.16 | | | | -2.39 | | | | 22 | | | | 1.47 | | | | -0.48 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 18.74 | | | | 17.16 | | | | 26 | | | | 1.47 | | | | -0.52 | | | | — | | | | — | | | | 36 | |
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 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.64 | | | | 6.33 | | | | — | * | | | 0.71 | (4) | | | 0.40 | (4) | | | — | | | | — | | | | 20 | |
Year ended 3-31-2016 | | | 18.47 | | | | -1.64 | | | | 7 | | | | 0.73 | | | | 0.28 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015(6) | | | 19.93 | | | | 13.18 | | | | 6 | | | | 0.72 | (4) | | | 0.17 | (4) | | | — | | | | — | | | | 36 | (7) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.16 | | | | 6.21 | | | | 122 | | | | 1.06 | (4) | | | 0.07 | (4) | | | 1.12 | (4) | | | 0.01 | (4) | | | 20 | |
Year ended 3-31-2016 | | | 18.04 | | | | -2.03 | | | | 125 | | | | 1.06 | | | | -0.07 | | | | 1.11 | | | | -0.12 | | | | 38 | |
Year ended 3-31-2015 | | | 19.57 | | | | 17.62 | | | | 132 | | | | 1.06 | | | | -0.11 | | | | 1.12 | | | | -0.17 | | | | 36 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 165 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 10.87 | | | $ | 0.09 | | | $ | 0.09 | | | $ | 0.18 | | | $ | (0.09 | ) | | $ | — | | | $ | (0.09 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.15 | | | | (0.05 | ) | | | 0.10 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.15 | | | | 0.02 | | | | 0.17 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.04 | | | | 0.10 | | | | 0.14 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.06 | | | | (0.05 | ) | | | 0.01 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.06 | | | | 0.02 | | | | 0.08 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.05 | | | | 0.09 | | | | 0.14 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.07 | | | | (0.05 | ) | | | 0.02 | | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.07 | | | | 0.02 | | | | 0.09 | | | | (0.07 | ) | | | — | | | | (0.07 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.08 | | | | 0.09 | | | | 0.17 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.13 | | | | (0.04 | ) | | | 0.09 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.13 | | | | 0.03 | | | | 0.16 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.10 | | | | 0.09 | | | | 0.19 | | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.17 | | | | (0.04 | ) | | | 0.13 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.17 | | | | 0.03 | | | | 0.20 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.07 | | | | 0.09 | | | | 0.16 | | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.11 | | | | (0.05 | ) | | | 0.06 | | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.11 | | | | 0.03 | | | | 0.14 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
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 9-30-2016 (unaudited) | | | 10.87 | | | | 0.11 | | | | 0.09 | | | | 0.20 | | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.19 | | | | (0.05 | ) | | | 0.14 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2015(7) | | | 10.91 | | | | 0.13 | | | | 0.01 | | | | 0.14 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.87 | | | | 0.09 | | | | 0.09 | | | | 0.18 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 10.92 | | | | 0.15 | | | | (0.05 | ) | | | 0.10 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
Year ended 3-31-2015 | | | 10.90 | | | | 0.15 | | | | 0.02 | | | | 0.17 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
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 | ) |
| * | 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 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. |
| (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 period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 166 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 10.96 | | | | 1.66 | % | | $ | 675 | | | | 0.88 | %(4) | | | 1.62 | %(4) | | | — | % | | | — | % | | | 37 | % |
Year ended 3-31-2016 | | | 10.87 | | | | 0.95 | | | | 1,589 | | | | 0.88 | | | | 1.36 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 1.60 | | | | 1,504 | | | | 0.88 | | | | 1.36 | | | | — | | | | — | | | | 39 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.25 | | | | 13 | | | | 1.70 | (4) | | | 0.78 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 0.12 | | | | 14 | | | | 1.71 | | | | 0.54 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 0.75 | | | | 13 | | | | 1.72 | | | | 0.52 | | | | — | | | | — | | | | 39 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.29 | | | | 110 | | | | 1.61 | (4) | | | 0.87 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 0.22 | | | | 128 | | | | 1.61 | | | | 0.63 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 0.83 | | | | 117 | | | | 1.64 | | | | 0.60 | | | | — | | | | — | | | | 39 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.61 | | | | 5 | | | | 0.98 | (4) | | | 1.48 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 0.83 | | | | 4 | | | | 1.00 | | | | 1.24 | | | | 1.03 | | | | 1.21 | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 1.48 | | | | 4 | | | | 1.00 | | | | 1.24 | | | | 1.03 | | | | 1.21 | | | | 39 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.79 | | | | 947 | | | | 0.64 | (4) | | | 1.80 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 1.20 | | | | 56 | | | | 0.64 | | | | 1.60 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 1.86 | | | | 44 | | | | 0.63 | | | | 1.60 | | | | — | | | | — | | | | 39 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.48 | | | | 1 | | | | 1.24 | (4) | | | 1.23 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 0.59 | | | | 1 | | | | 1.24 | | | | 0.98 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 1.24 | | | | 1 | | | | 1.23 | | | | 1.00 | | | | — | | | | — | | | | 39 | |
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 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.86 | | | | 85 | | | | 0.48 | (4) | | | 1.93 | (4) | | | — | | | | — | | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 1.35 | | | | 2 | | | | 0.49 | | | | 1.76 | | | | — | | | | — | | | | 46 | |
Year ended 3-31-2015(7) | | | 10.92 | | | | 1.31 | | | | 3 | | | | 0.48 | (4) | | | 1.75 | (4) | | | — | | | | — | | | | 39 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.96 | | | | 1.67 | | | | 21 | | | | 0.88 | (4) | | | 1.59 | (4) | | | 0.89 | (4) | | | 1.58 | (4) | | | 37 | |
Year ended 3-31-2016 | | | 10.87 | | | | 0.95 | | | | 16 | | | | 0.88 | | | | 1.35 | | | | 0.89 | | | | 1.34 | | | | 46 | |
Year ended 3-31-2015 | | | 10.92 | | | | 1.59 | | | | 21 | | | | 0.88 | | | | 1.35 | | | | 0.89 | | | | 1.34 | | | | 39 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 167 | |
| | |
| 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 | | |
Distributions
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 9.46 | | | $ | 0.02 | | | $ | 0.50 | | | $ | 0.52 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 10.52 | | | | 0.07 | | | | (1.06 | ) | | | (0.99 | ) | | | (0.07 | ) | | | — | | | | (0.07 | ) |
Year ended 3-31-2015 | | | 10.15 | | | | 0.14 | | | | 0.37 | | | | 0.51 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
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 | ) |
Class B Shares(6) | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.25 | | | | (0.03 | ) | | | 0.51 | | | | 0.48 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.33 | | | | (0.02 | ) | | | (1.06 | ) | | | (1.08 | ) | | | — | * | | | — | | | | — | * |
Year ended 3-31-2015 | | | 9.99 | | | | 0.06 | | | | 0.36 | | | | 0.42 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.28 | | | | (0.02 | ) | | | 0.50 | | | | 0.48 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.36 | | | | 0.00 | * | | | (1.07 | ) | | | (1.07 | ) | | | (0.01 | ) | | | — | | | | (0.01 | ) |
Year ended 3-31-2015 | | | 10.02 | | | | 0.07 | | | | 0.36 | | | | 0.43 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
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 | ) |
Class E Shares(7) | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.47 | | | | 0.02 | | | | 0.50 | | | | 0.52 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.53 | | | | 0.08 | | | | (1.06 | ) | | | (0.98 | ) | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2015 | | | 10.16 | | | | 0.15 | | | | 0.37 | | | | 0.52 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.50 | | | | 0.02 | | | | 0.51 | | | | 0.53 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.54 | | | | 0.13 | | | | (1.08 | ) | | | (0.95 | ) | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2015 | | | 10.17 | | | | 0.19 | | | | 0.35 | | | | 0.54 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.44 | | | | 0.00 | * | | | 0.50 | | | | 0.50 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.50 | | | | 0.06 | | | | (1.06 | ) | | | (1.00 | ) | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2015 | | | 10.13 | | | | 0.13 | | | | 0.37 | | | | 0.50 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2014 | | | 8.97 | | | | 0.10 | | | | 1.16 | | | | 1.26 | | | | (0.10 | ) | | | — | | | | (0.10 | ) |
Year ended 3-31-2013(8) | | | 8.88 | | | | (0.01 | ) | | | 0.10 | | | | 0.09 | | | | — | | | | — | | | | — | |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.46 | | | | 0.02 | | | | 0.50 | | | | 0.52 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 10.51 | | | | 0.07 | | | | (1.04 | ) | | | (0.97 | ) | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2015 | | | 10.14 | | | | 0.17 | | | | 0.35 | | | | 0.52 | | | | (0.15 | ) | | | — | | | | (0.15 | ) |
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 | ) |
| * | 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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized. |
| (3) | Does not include expenses of underlying Ivy Funds in which the Fund invests. |
| (4) | Ratios excluding expense waivers are included only for periods in which the class had waived or reimbursed expenses. |
| (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) | Class share is closed to investment. |
| (8) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| | | | | | |
| 168 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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(3) | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets
Including
Expense
Waiver(3) | | | Ratio of
Expenses to
Average Net
Assets
Excluding
Expense
Waiver(3)(4) | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets
Excluding
Expense
Waiver(3)(4) | | | Portfolio
Turnover
Rate | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 9.98 | | | | 5.50 | % | | $ | 75 | | | | 0.49 | %(5) | | | 0.34 | %(5) | | | — | % | | | — | % | | | 3 | % |
Year ended 3-31-2016 | | | 9.46 | | | | -9.41 | | | | 188 | | | | 0.46 | | | | 0.71 | | | | — | | | | — | | | | 37 | |
Year ended 3-31-2015 | | | 10.52 | | | | 5.17 | | | | 228 | | | | 0.48 | | | | 1.36 | | | | — | | | | — | | | | 4 | |
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 | |
Class B Shares(6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.73 | | | | 5.19 | | | | 1 | | | | 1.40 | (5) | | | -0.65 | (5) | | | 1.50 | (5) | | | -0.75 | (5) | | | 3 | |
Year ended 3-31-2016 | | | 9.25 | | | | -10.42 | | | | 2 | | | | 1.40 | | | | -0.24 | | | | 1.48 | | | | -0.32 | | | | 37 | |
Year ended 3-31-2015 | | | 10.33 | | | | 4.28 | | | | 2 | | | | 1.36 | | | | 0.60 | | | | — | | | | — | | | | 4 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.76 | | | | 5.17 | | | | 5 | | | | 1.26 | (5) | | | -0.48 | (5) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 9.28 | | | | -10.30 | | | | 5 | | | | 1.27 | | | | -0.04 | | | | — | | | | — | | | | 37 | |
Year ended 3-31-2015 | | | 10.36 | | | | 4.32 | | | | 5 | | | | 1.29 | | | | 0.73 | | | | — | | | | — | | | | 4 | |
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 | |
Class E Shares(7) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.99 | | | | 5.49 | | | | — | * | | | 0.39 | (5) | | | 0.37 | (5) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 9.47 | | | | -9.36 | | | | — | * | | | 0.39 | | | | 0.79 | | | | — | | | | — | | | | 37 | |
Year ended 3-31-2015 | | | 10.53 | | | | 5.25 | | | | — | * | | | 0.39 | | | | 1.49 | | | | — | | | | — | | | | 4 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.03 | | | | 5.58 | | | | 111 | | | | 0.14 | (5) | | | 0.45 | (5) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 9.50 | | | | -9.00 | | | | 1 | | | | 0.16 | | | | 1.28 | | | | — | | | | — | | | | 37 | |
Year ended 3-31-2015 | | | 10.54 | | | | 5.41 | | | | 1 | | | | 0.16 | | | | 1.82 | | | | 0.18 | | | | 1.80 | | | | 4 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.94 | | | | 5.30 | | | | 1 | | | | 0.68 | (5) | | | 0.08 | (5) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 9.44 | | | | -9.55 | | | | 1 | | | | 0.64 | | | | 0.55 | | | | — | | | | — | | | | 37 | |
Year ended 3-31-2015 | | | 10.50 | | | | 5.07 | | | | 1 | | | | 0.63 | | | | 1.26 | | | | — | | | | — | | | | 4 | |
Year ended 3-31-2014 | | | 10.13 | | | | 14.12 | | | | 1 | | | | 0.63 | | | | 1.01 | | | | — | | | | — | | | | 21 | |
Year ended 3-31-2013(8) | | | 8.97 | | | | 1.01 | | | | — | * | | | 0.72 | (5) | | | -0.55 | (5) | | | — | | | | — | | | | 21 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 9.98 | | | | 5.50 | | | | 1 | | | | 0.38 | (5) | | | 0.36 | (5) | | | 0.43 | (5) | | | 0.31 | (5) | | | 3 | |
Year ended 3-31-2016 | | | 9.46 | | | | -9.28 | | | | 1 | | | | 0.38 | | | | 0.68 | | | | 0.40 | | | | 0.66 | | | | 37 | |
Year ended 3-31-2015 | | | 10.51 | | | | 5.26 | | | | 2 | | | | 0.38 | | | | 1.63 | | | | 0.47 | | | | 1.54 | | | | 4 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 169 | |
| | |
| 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) | | | 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 9-30-2016 (unaudited) | | $ | 18.14 | | | $ | (0.13 | ) | | $ | 5.61 | | | $ | 5.48 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 24.73 | | | | (0.32 | ) | | | (5.37 | ) | | | (5.69 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 27.31 | | | | (0.36 | ) | | | (0.82 | ) | | | (1.18 | ) | | | — | | | | (1.40 | ) | | | (1.40 | ) |
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 | ) |
Class B Shares(4) | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.20 | | | | (0.21 | ) | | | 5.29 | | | | 5.08 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 23.70 | | | | (0.49 | ) | | | (5.11 | ) | | | (5.60 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 26.23 | | | | (0.56 | ) | | | (0.79 | ) | | | (1.35 | ) | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.45 | | | | (0.20 | ) | | | 5.38 | | | | 5.18 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.00 | | | | (0.47 | ) | | | (5.18 | ) | | | (5.65 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 26.56 | | | | (0.53 | ) | | | (0.80 | ) | | | (1.33 | ) | | | — | | | | (1.23 | ) | | | (1.23 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.53 | | | | (0.08 | ) | | | 5.72 | | | | 5.64 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.12 | | | | (0.22 | ) | | | (5.47 | ) | | | (5.69 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 27.65 | | | | (0.27 | ) | | | (0.83 | ) | | | (1.10 | ) | | | — | | | | (1.43 | ) | | | (1.43 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.08 | | | | (0.14 | ) | | | 5.58 | | | | 5.44 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.69 | | | | (0.35 | ) | | | (5.36 | ) | | | (5.71 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 27.27 | | | | (0.41 | ) | | | (0.81 | ) | | | (1.22 | ) | | | — | | | | (1.36 | ) | | | (1.36 | ) |
Year ended 3-31-2014 | | | 20.45 | | | | (0.40 | ) | | | 8.64 | | | | 8.24 | | | | — | | | | (1.42 | ) | | | (1.42 | ) |
Year ended 3-31-2013(5) | | | 17.77 | | | | (0.10 | ) | | | 2.78 | | | | 2.68 | | | | — | | | | — | | | | — | |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.61 | | | | (0.07 | ) | | | 5.76 | | | | 5.69 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.19 | | | | (0.19 | ) | | | (5.49 | ) | | | (5.68 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015(6) | | | 23.73 | | | | (0.15 | ) | | | 3.01 | | | | 2.86 | | | | — | | | | (1.40 | ) | | | (1.40 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.72 | | | | (0.11 | ) | | | 5.79 | | | | 5.68 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 25.44 | | | | (0.28 | ) | | | (5.54 | ) | | | (5.82 | ) | | | — | | | | (0.90 | ) | | | (0.90 | ) |
Year ended 3-31-2015 | | | 28.02 | | | | (0.33 | ) | | | (0.84 | ) | | | (1.17 | ) | | | — | | | | (1.41 | ) | | | (1.41 | ) |
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 | ) |
| * | 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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not 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) | For the period from December 19, 2012 (commencement of operations of the class) through March 31, 2013. |
| (6) | For the period from July 31, 2014 (commencement of operations of the class) through March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 170 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 | | | Portfolio
Turnover
Rate | |
Class A Shares | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 23.62 | | | | 30.21 | % | | $ | 86 | | | | 1.72 | %(3) | | | -1.29 | %(3) | | | 17 | % |
Year ended 3-31-2016 | | | 18.14 | | | | -23.51 | | | | 130 | | | | 1.69 | | | | -1.42 | | | | 84 | |
Year ended 3-31-2015 | | | 24.73 | | | | -3.91 | | | | 199 | | | | 1.64 | | | | -1.50 | | | | 47 | |
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 | |
Class B Shares(4) | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.28 | | | | 29.54 | | | | 2 | | | | 2.65 | (3) | | | -2.18 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 17.20 | | | | -24.16 | | | | 1 | | | | 2.57 | | | | -2.29 | | | | 84 | |
Year ended 3-31-2015 | | | 23.70 | | | | -4.80 | | | | 2 | | | | 2.54 | | | | -2.40 | | | | 47 | |
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 | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 22.63 | | | | 29.69 | | | | 8 | | | | 2.49 | (3) | | | -2.02 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 17.45 | | | | -24.06 | | | | 7 | | | | 2.42 | | | | -2.15 | | | | 84 | |
Year ended 3-31-2015 | | | 24.00 | | | | -4.63 | | | | 10 | | | | 2.39 | | | | -2.25 | | | | 47 | |
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 | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.17 | | | | 30.44 | | | | 72 | | | | 1.30 | (3) | | | -0.74 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 18.53 | | | | -23.14 | | | | 10 | | | | 1.25 | | | | -0.96 | | | | 84 | |
Year ended 3-31-2015 | | | 25.12 | | | | -3.56 | | | | 21 | | | | 1.24 | | | | -1.09 | | | | 47 | |
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 | |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 23.52 | | | | 30.09 | | | | 1 | | | | 1.85 | (3) | | | -1.39 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 18.08 | | | | -23.63 | | | | 1 | | | | 1.84 | | | | -1.58 | | | | 84 | |
Year ended 3-31-2015 | | | 24.69 | | | | -4.08 | | | | 1 | | | | 1.83 | | | | -1.69 | | | | 47 | |
Year ended 3-31-2014 | | | 27.27 | | | | 41.09 | | | | — | * | | | 1.84 | | | | -1.66 | | | | 67 | |
Year ended 3-31-2013(5) | | | 20.45 | | | | 15.08 | | | | — | * | | | 1.89 | (3) | | | -1.84 | (3) | | | 51 | (7) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.30 | | | | 30.58 | | | | 2 | | | | 1.09 | (3) | | | -0.62 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 18.61 | | | | -23.03 | | | | 2 | | | | 1.08 | | | | -0.84 | | | | 84 | |
Year ended 3-31-2015(6) | | | 25.19 | | | | 12.53 | | | | 2 | | | | 1.08 | (3) | | | -0.94 | (3) | | | 47 | (8) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 24.40 | | | | 30.34 | | | | 1 | | | | 1.52 | (3) | | | -1.05 | (3) | | | 17 | |
Year ended 3-31-2016 | | | 18.72 | | | | -23.36 | | | | 1 | | | | 1.50 | | | | -1.21 | | | | 84 | |
Year ended 3-31-2015 | | | 25.44 | | | | -3.77 | | | | 2 | | | | 1.49 | | | | -1.34 | | | | 47 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 171 | |
| | |
| 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) | | |
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 9-30-2016 (unaudited) | | $ | 18.96 | | | $ | (0.02 | ) | | $ | 1.36 | | | $ | 1.34 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 23.43 | | | | (0.06 | ) | | | (2.33 | ) | | | (2.39 | ) | | | — | | | | (2.08 | ) | | | (2.08 | ) |
Year ended 3-31-2015 | | | 23.45 | | | | (0.12 | ) | | | 2.49 | | | | 2.37 | | | | — | | | | (2.39 | ) | | | (2.39 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.76 | | | | (0.08 | ) | | | 1.13 | | | | 1.05 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.84 | | | | (0.19 | ) | | | (1.96 | ) | | | (2.15 | ) | | | — | | | | (1.93 | ) | | | (1.93 | ) |
Year ended 3-31-2015 | | | 20.30 | | | | (0.25 | ) | | | 2.13 | | | | 1.88 | | | | — | | | | (2.34 | ) | | | (2.34 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.69 | | | | (0.08 | ) | | | 1.19 | | | | 1.11 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 20.88 | | | | (0.19 | ) | | | (2.07 | ) | | | (2.26 | ) | | | — | | | | (1.93 | ) | | | (1.93 | ) |
Year ended 3-31-2015 | | | 21.24 | | | | (0.26 | ) | | | 2.25 | | | | 1.99 | | | | — | | | | (2.35 | ) | | | (2.35 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.54 | | | | (0.02 | ) | | | 1.33 | | | | 1.31 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 22.92 | | | | (0.08 | ) | | | (2.29 | ) | | | (2.37 | ) | | | — | | | | (2.01 | ) | | | (2.01 | ) |
Year ended 3-31-2015 | | | 23.02 | | | | (0.19 | ) | | | 2.46 | | | | 2.27 | | | | — | | | | (2.37 | ) | | | (2.37 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.15 | | | | 0.00 | * | | | 1.45 | | | | 1.45 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.77 | | | | 0.00 | * | | | (2.46 | ) | | | (2.46 | ) | | | — | | | | (2.16 | ) | | | (2.16 | ) |
Year ended 3-31-2015 | | | 24.60 | | | | (0.05 | ) | | | 2.63 | | | | 2.58 | | | | — | | | | (2.41 | ) | | | (2.41 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.65 | | | | (0.05 | ) | | | 1.34 | | | | 1.29 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 23.08 | | | | (0.13 | ) | | | (2.29 | ) | | | (2.42 | ) | | | — | | | | (2.01 | ) | | | (2.01 | ) |
Year ended 3-31-2015 | | | 23.18 | | | | (0.18 | ) | | | 2.45 | | | | 2.27 | | | | — | | | | (2.37 | ) | | | (2.37 | ) |
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 | ) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.22 | | | | 0.02 | | | | 1.46 | | | | 1.48 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.81 | | | | 0.05 | | | | (2.48 | ) | | | (2.43 | ) | | | — | | | | (2.16 | ) | | | (2.16 | ) |
Year ended 3-31-2015(6) | | | 24.38 | | | | (0.02 | ) | | | 2.84 | | | | 2.82 | | | | — | | | | (2.39 | ) | | | (2.39 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.69 | | | | (0.02 | ) | | | 1.42 | | | | 1.40 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 24.26 | | | | (0.06 | ) | | | (2.41 | ) | | | (2.47 | ) | | | — | | | | (2.10 | ) | | | (2.10 | ) |
Year ended 3-31-2015 | | | 24.18 | | | | (0.11 | ) | | | 2.58 | | | | 2.47 | | | | — | | | | (2.39 | ) | | | (2.39 | ) |
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 | ) |
| * | 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 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 172 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 20.30 | | | | 7.07 | % | | $ | 530 | | | | 1.31 | %(4) | | | -0.23 | %(4) | | | 1.36 | %(4) | | | -0.28 | %(4) | | | 4 | % |
Year ended 3-31-2016 | | | 18.96 | | | | -10.27 | | | | 787 | | | | 1.29 | | | | -0.30 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 23.43 | | | | 10.73 | | | | 1,025 | | | | 1.28 | | | | -0.50 | | | | 1.29 | | | | -0.51 | | | | 35 | |
Year ended 3-31-2014 | | | 23.45 | | | | 20.09 | | | | 1,558 | | | | 1.34 | | | | -0.63 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 20.22 | | | | 9.28 | | | | 1,160 | | | | 1.31 | | | | -0.52 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 18.62 | | | | 4.29 | | | | 636 | | | | 1.40 | | | | -0.69 | | | | — | | | | — | | | | 29 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.81 | | | | 6.66 | | | | 18 | | | | 2.09 | (4) | | | -1.01 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 15.76 | | | | -10.95 | | | | 19 | | | | 2.05 | | | | -1.06 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 19.84 | | | | 9.94 | | | | 24 | | | | 2.05 | | | | -1.26 | | | | — | | | | — | | | | 35 | |
Year ended 3-31-2014 | | | 20.30 | | | | 19.14 | | | | 26 | | | | 2.10 | | | | -1.39 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 17.66 | | | | 8.27 | | | | 21 | | | | 2.21 | | | | -1.42 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 16.42 | | | | 3.33 | | | | 17 | | | | 2.35 | | | | -1.63 | | | | — | | | | — | | | | 29 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.80 | | | | 6.65 | | | | 239 | | | | 2.04 | (4) | | | -0.96 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 16.69 | | | | -10.92 | | | | 264 | | | | 2.01 | | | | -1.02 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 20.88 | | | | 10.00 | | | | 343 | | | | 2.01 | | | | -1.22 | | | | — | | | | — | | | | 35 | |
Year ended 3-31-2014 | | | 21.24 | | | | 19.25 | | | | 295 | | | | 2.01 | | | | -1.31 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 18.44 | | | | 8.46 | | | | 183 | | | | 2.07 | | | | -1.28 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 17.11 | | | | 3.50 | | | | 135 | | | | 2.14 | | | | -1.44 | | | | — | | | | — | | | | 29 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.85 | | | | 7.06 | | | | 8 | | | | 1.30 | (4) | | | -0.22 | (4) | | | 1.65 | (4) | | | -0.57 | (4) | | | 4 | |
Year ended 3-31-2016 | | | 18.54 | | | | -10.41 | | | | 7 | | | | 1.41 | | | | -0.41 | | | | 1.63 | | | | -0.63 | | | | 38 | |
Year ended 3-31-2015 | | | 22.92 | | | | 10.46 | | | | 7 | | | | 1.60 | | | | -0.82 | | | | 1.63 | | | | -0.85 | | | | 35 | |
Year ended 3-31-2014 | | | 23.02 | | | | 19.75 | | | | 6 | | | | 1.60 | | | | -0.90 | | | | 1.71 | | | | -1.01 | | | | 43 | |
Year ended 3-31-2013 | | | 19.90 | | | | 8.97 | | | | 4 | | | | 1.60 | | | | -0.81 | | | | 1.90 | | | | -1.11 | | | | 32 | |
Year ended 3-31-2012 | | | 18.37 | | | | 4.00 | | | | 3 | | | | 1.60 | | | | -0.88 | | | | 1.97 | | | | -1.25 | | | | 29 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.60 | | | | 7.20 | | | | 1,366 | | | | 1.05 | (4) | | | 0.03 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 20.15 | | | | -10.00 | | | | 1,423 | | | | 1.00 | | | | -0.01 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 24.77 | | | | 11.09 | | | | 2,933 | | | | 0.99 | | | | -0.19 | | | | — | | | | — | | | | 35 | |
Year ended 3-31-2014 | | | 24.60 | | | | 20.52 | | | | 2,098 | | | | 0.99 | | | | -0.28 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 21.17 | | | | 9.57 | | | | 1,316 | | | | 1.02 | | | | -0.24 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 19.43 | | | | 4.65 | | | | 788 | | | | 1.05 | | | | -0.38 | | | | — | | | | — | | | | 29 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.94 | | | | 6.92 | | | | 62 | | | | 1.62 | (4) | | | -0.54 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 18.65 | | | | -10.55 | | | | 71 | | | | 1.60 | | | | -0.61 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 23.08 | | | | 10.40 | | | | 96 | | | | 1.59 | | | | -0.80 | | | | — | | | | — | | | | 35 | |
Year ended 3-31-2014 | | | 23.18 | | | | 19.83 | | | | 103 | | | | 1.59 | | | | -0.89 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 20.02 | | | | 8.92 | | | | 77 | | | | 1.62 | | | | -0.82 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 18.49 | | | | 4.09 | | | | 50 | | | | 1.63 | | | | -0.93 | | | | — | | | | — | | | | 29 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.70 | | | | 7.32 | | | | 86 | | | | 0.87 | (4) | | | 0.21 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 20.22 | | | | -9.85 | | | | 77 | | | | 0.85 | | | | 0.24 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015(6) | | | 24.81 | | | | 12.18 | | | | 27 | | | | 0.84 | (4) | | | -0.15 | (4) | | | — | | | | — | | | | 35 | (7) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 21.09 | | | | 7.11 | | | | 374 | | | | 1.26 | (4) | | | -0.19 | (4) | | | — | | | | — | | | | 4 | |
Year ended 3-31-2016 | | | 19.69 | | | | -10.26 | | | | 471 | | | | 1.24 | | | | -0.25 | | | | — | | | | — | | | | 38 | |
Year ended 3-31-2015 | | | 24.26 | | | | 10.82 | | | | 706 | | | | 1.23 | | | | -0.44 | | | | — | | | | — | | | | 35 | |
Year ended 3-31-2014 | | | 24.18 | | | | 20.21 | | | | 694 | | | | 1.23 | | | | -0.53 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2013 | | | 20.83 | | | | 9.33 | | | | 521 | | | | 1.27 | | | | -0.48 | | | | — | | | | — | | | | 32 | |
Year ended 3-31-2012 | | | 19.17 | | | | 4.44 | | | | 439 | | | | 1.25 | | | | -0.55 | | | | 1.30 | | | | -0.60 | | | | 29 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 173 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MID CAP INCOME 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 9-30-2016 (unaudited) | | $ | 10.93 | | | $ | 0.09 | | | $ | 0.77 | | | $ | 0.86 | | | $ | (0.05 | ) | | $ | — | | | $ | (0.05 | ) |
Year ended 3-31-2016 | | | 11.10 | | | | 0.15 | | | | (0.15 | ) | | | 0.00 | * | | | (0.15 | ) | | | (0.02 | ) | | | (0.17 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.10 | | | | 1.05 | | | | 1.15 | | | | (0.05 | ) | | | — | * | | | (0.05 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.91 | | | | 0.06 | | | | 0.75 | | | | 0.81 | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
Year ended 3-31-2016 | | | 11.10 | | | | 0.08 | | | | (0.16 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.02 | ) | | | (0.11 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.05 | | | | 1.07 | | | | 1.12 | | | | (0.02 | ) | | | — | * | | | (0.02 | ) |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.93 | | | | 0.10 | | | | 0.77 | | | | 0.87 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 11.11 | | | | 0.16 | | | | (0.16 | ) | | | 0.00 | * | | | (0.16 | ) | | | (0.02 | ) | | | (0.18 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.09 | | | | 1.07 | | | | 1.16 | | | | (0.05 | ) | | | — | * | | | (0.05 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.94 | | | | 0.13 | | | | 0.75 | | | | 0.88 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2016 | | | 11.11 | | | | 0.19 | | | | (0.16 | ) | | | 0.03 | | | | (0.18 | ) | | | (0.02 | ) | | | (0.20 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.10 | | | | 1.08 | | | | 1.18 | | | | (0.07 | ) | | | — | * | | | (0.07 | ) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.92 | | | | 0.07 | | | | 0.75 | | | | 0.82 | | | | (0.02 | ) | | | — | | | | (0.02 | ) |
Year ended 3-31-2016 | | | 11.10 | | | | 0.11 | | | | (0.16 | ) | | | (0.05 | ) | | | (0.11 | ) | | | (0.02 | ) | | | (0.13 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.06 | | | | 1.07 | | | | 1.13 | | | | (0.03 | ) | | | — | * | | | (0.03 | ) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.94 | | | | 0.12 | | | | 0.76 | | | | 0.88 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2016 | | | 11.11 | | | | 0.19 | | | | (0.16 | ) | | | 0.03 | | | | (0.18 | ) | | | (0.02 | ) | | | (0.20 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.10 | | | | 1.08 | | | | 1.18 | | | | (0.07 | ) | | | — | * | | | (0.07 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 10.93 | | | | 0.10 | | | | 0.76 | | | | 0.86 | | | | (0.05 | ) | | | — | | | | (0.05 | ) |
Year ended 3-31-2016 | | | 11.11 | | | | 0.16 | | | | (0.17 | ) | | | (0.01 | ) | | | (0.15 | ) | | | (0.02 | ) | | | (0.17 | ) |
Year ended 3-31-2015(5) | | | 10.00 | | | | 0.09 | | | | 1.07 | | | | 1.16 | | | | (0.05 | ) | | | — | * | | | (0.05 | ) |
| * | 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. |
| (5) | For the period from October 1, 2014 (commencement of operations of the class) through March 31, 2015. |
| (6) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| (7) | Ratio of expenses to average net assets excluding offering cost was 1.31%. |
| (8) | Ratio of expenses to average net assets excluding offering cost was 2.03%. |
| (9) | Ratio of expenses to average net assets excluding offering cost was 1.26%. |
| (10) | Ratio of expenses to average net assets excluding offering cost was 1.01%. |
| (11) | Ratio of expenses to average net assets excluding offering cost was 1.76%. |
| (12) | Ratio of expenses to average net assets excluding offering cost was 1.01%. |
| (13) | Ratio of expenses to average net assets excluding offering cost was 1.31%. |
| (14) | Ratio of expenses to average net assets excluding offering cost was 1.16%. |
| (15) | Ratio of expenses to average net assets excluding offering cost was 1.88%. |
| (16) | Ratio of expenses to average net assets excluding offering cost was 1.11%. |
| (17) | Ratio of expenses to average net assets excluding offering cost was 0.86%. |
| (18) | Ratio of expenses to average net assets excluding offering cost was 1.61%. |
| (19) | Ratio of expenses to average net assets excluding offering cost was 0.86%. |
| (20) | Ratio of expenses to average net assets excluding offering cost was 1.16%. |
| | | | | | |
| 174 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 11.74 | | | | 7.83 | % | | $ | 85 | | | | 1.35 | %(4) | | | 1.63 | %(4) | | | 1.45 | %(4) | | | 1.53 | %(4) | | | 23 | % |
Year ended 3-31-2016 | | | 10.93 | | | | 0.06 | | | | 95 | | | | 1.35 | (7) | | | 1.44 | | | | 1.66 | | | | 1.13 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.10 | | | | 11.56 | | | | 43 | | | | 1.35 | (4)(14) | | | 1.83 | (4) | | | 1.60 | (4) | | | 1.58 | (4) | | | 10 | (6) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.71 | | | | 7.42 | | | | 10 | | | | 2.07 | (4) | | | 1.02 | (4) | | | 2.15 | (4) | | | 0.94 | (4) | | | 23 | |
Year ended 3-31-2016 | | | 10.91 | | | | -0.70 | | | | 5 | | | | 2.07 | (8) | | | 0.72 | | | | 2.28 | | | | 0.51 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.10 | | | | 11.26 | | | | 3 | | | | 2.07 | (4)(15) | | | 0.98 | (4) | | | 2.22 | (4) | | | 0.83 | (4) | | | 10 | (6) |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.75 | | | | 7.94 | | | | 2 | | | | 1.28 | (4) | | | 1.79 | (4) | | | — | | | | — | | | | 23 | |
Year ended 3-31-2016 | | | 10.93 | | | | 0.01 | | | | 2 | | | | 1.30 | (9) | | | 1.50 | | | | 1.41 | | | | 1.39 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.11 | | | | 11.68 | | | | 2 | | | | 1.30 | (4)(16) | | | 1.70 | (4) | | | 1.42 | (4) | | | 1.58 | (4) | | | 10 | (6) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.76 | | | | 8.06 | | | | 98 | | | | 1.05 | (4) | | | 2.21 | (4) | | | 1.13 | (4) | | | 2.13 | (4) | | | 23 | |
Year ended 3-31-2016 | | | 10.94 | | | | 0.28 | | | | 8 | | | | 1.05 | (10) | | | 1.76 | | | | 1.30 | | | | 1.51 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.11 | | | | 11.81 | | | | 9 | | | | 1.05 | (4)(17) | | | 1.97 | (4) | | | 1.32 | (4) | | | 1.70 | (4) | | | 10 | (6) |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.72 | | | | 7.54 | | | | 2 | | | | 1.78 | (4) | | | 1.29 | (4) | | | — | | | | — | | | | 23 | |
Year ended 3-31-2016 | | | 10.92 | | | | -0.41 | | | | 2 | | | | 1.80 | (11) | | | 1.00 | | | | 1.91 | | | | 0.89 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.10 | | | | 11.38 | | | | 2 | | | | 1.80 | (4)(18) | | | 1.20 | (4) | | | 1.92 | (4) | | | 1.08 | (4) | | | 10 | (6) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.76 | | | | 8.06 | | | | 4 | | | | 1.03 | (4) | | | 2.04 | (4) | | | — | | | | — | | | | 23 | |
Year ended 3-31-2016 | | | 10.94 | | | | 0.28 | | | | 3 | | | | 1.05 | (12) | | | 1.75 | | | | 1.16 | | | | 1.64 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.11 | | | | 11.81 | | | | 3 | | | | 1.05 | (4)(19) | | | 1.97 | (4) | | | 1.18 | (4) | | | 1.84 | (4) | | | 10 | (6) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.74 | | | | 7.83 | | | | 11 | | | | 1.35 | (4) | | | 1.71 | (4) | | | 1.40 | (4) | | | 1.66 | (4) | | | 23 | |
Year ended 3-31-2016 | | | 10.93 | | | | -0.03 | | | | 5 | | | | 1.35 | (13) | | | 1.46 | | | | 1.58 | | | | 1.23 | | | | 26 | |
Year ended 3-31-2015(5) | | | 11.11 | | | | 11.66 | | | | 4 | | | | 1.35 | (4)(20) | | | 1.73 | (4) | | | 1.57 | (4) | | | 1.51 | (4) | | | 10 | (6) |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 175 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MONEY MARKET FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income(1) | | | Net Realized
and Unrealized
Gain on
Investments | | | Total from
Investment
Operations | | |
Distributions
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 1.00 | | | $ | 0.00 | * | | $ | 0.00 | | | $ | 0.00 | * | | $ | — | * | | $ | — | | | $ | — | * |
Year ended 3-31-2016 | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2015 | | | 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 | * | | | — | * | | | — | | | | — | * |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2016 | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2015 | | | 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 | * | | | — | * | | | — | | | | — | * |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2016 | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2015 | | | 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 | * | | | — | * | | | — | | | | — | * |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2016 | | | 1.00 | | | | 0.00 | * | | | 0.00 | | | | 0.00 | * | | | — | * | | | — | | | | — | * |
Year ended 3-31-2015 | | | 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 | * | | | — | * | | | — | | | | — | * |
| * | 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 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. |
| (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. |
| | | | | | |
| 176 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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
Loss to
Average Net
Assets
Excluding
Expense
Waiver(3) | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 1.00 | | | | 0.02 | % | | $ | 146 | | | | 0.58 | %(4) | | | 0.02 | %(4) | | | 0.65 | %(4) | | | -0.05 | %(4) |
Year ended 3-31-2016 | | | 1.00 | | | | 0.02 | | | | 167 | | | | 0.30 | | | | 0.02 | | | | 0.61 | | | | -0.29 | |
Year ended 3-31-2015 | | | 1.00 | | | | 0.02 | | | | 119 | | | | 0.17 | | | | 0.02 | | | | 0.68 | | | | -0.49 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.02 | | | | 5 | | | | 0.58 | (4) | | | 0.02 | (4) | | | 1.77 | (4) | | | -1.17 | (4) |
Year ended 3-31-2016 | | | 1.00 | | | | 0.02 | | | | 6 | | | | 0.30 | | | | 0.02 | | | | 1.65 | | | | -1.33 | |
Year ended 3-31-2015 | | | 1.00 | | | | 0.02 | | | | 4 | | | | 0.17 | | | | 0.02 | | | | 1.73 | | | | -1.54 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.02 | | | | 36 | | | | 0.58 | (4) | | | 0.02 | (4) | | | 1.61 | (4) | | | -1.01 | (4) |
Year ended 3-31-2016 | | | 1.00 | | | | 0.02 | | | | 44 | | | | 0.30 | | | | 0.02 | | | | 1.57 | | | | -1.25 | |
Year ended 3-31-2015 | | | 1.00 | | | | 0.02 | | | | 32 | | | | 0.17 | | | | 0.02 | | | | 1.62 | | | | -1.43 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 1.00 | | | | 0.02 | | | | 7 | | | | 0.58 | (4) | | | 0.02 | (4) | | | 0.69 | (4) | | | -0.09 | (4) |
Year ended 3-31-2016 | | | 1.00 | | | | 0.02 | | | | 7 | | | | 0.29 | | | | 0.02 | | | | 0.68 | | | | -0.37 | |
Year ended 3-31-2015 | | | 1.00 | | | | 0.02 | | | | 6 | | | | 0.17 | | | | 0.02 | | | | 0.74 | | | | -0.55 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 177 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY MUNICIPAL BOND FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income(1) | | | Net Realized
and Unrealized
Gain (Loss) on
Investments | | | Total from
Investment
Operations | | |
Distributions
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 12.13 | | | $ | 0.13 | | | $ | 0.09 | | | $ | 0.22 | | | $ | (0.13 | ) | | $ | — | | | $ | (0.13 | ) |
Year ended 3-31-2016 | | | 12.07 | | | | 0.28 | | | | 0.06 | | | | 0.34 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
Year ended 3-31-2015 | | | 11.74 | | | | 0.31 | | | | 0.33 | | | | 0.64 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
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 | ) |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.13 | | | | 0.09 | | | | 0.08 | | | | 0.17 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2016 | | | 12.07 | | | | 0.19 | | | | 0.06 | | | | 0.25 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2015 | | | 11.74 | | | | 0.22 | | | | 0.33 | | | | 0.55 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
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 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.13 | | | | 0.09 | | | | 0.09 | | | | 0.18 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 12.07 | | | | 0.19 | | | | 0.06 | | | | 0.25 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2015 | | | 11.74 | | | | 0.22 | | | | 0.33 | | | | 0.55 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
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 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.13 | | | | 0.15 | | | | 0.08 | | | | 0.23 | | | | (0.14 | ) | | | — | | | | (0.14 | ) |
Year ended 3-31-2016 | | | 12.07 | | | | 0.31 | | | | 0.05 | | | | 0.36 | | | | (0.30 | ) | | | — | | | | (0.30 | ) |
Year ended 3-31-2015 | | | 11.74 | | | | 0.33 | | | | 0.34 | | | | 0.67 | | | | (0.34 | ) | | | — | | | | (0.34 | ) |
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 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.13 | | | | 0.13 | | | | 0.09 | | | | 0.22 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 12.07 | | | | 0.28 | | | | 0.06 | | | | 0.34 | | | | (0.28 | ) | | | — | | | | (0.28 | ) |
Year ended 3-31-2015 | | | 11.74 | | | | 0.31 | | | | 0.33 | | | | 0.64 | | | | (0.31 | ) | | | — | | | | (0.31 | ) |
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 | ) |
| (1) | Based on average weekly shares outstanding. |
| (2) | Based on net asset value, which does not reflect the sales charge 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. |
| (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. |
| | | | | | |
| 178 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 12.22 | | | | 1.82 | % | | $ | 91 | | | | 0.99 | %(4) | | | 2.15 | %(4) | | | — | % | | | — | % | | | 1 | % |
Year ended 3-31-2016 | | | 12.13 | | | | 2.87 | | | | 184 | | | | 0.99 | | | | 2.35 | | | | — | | | | — | | | | 4 | |
Year ended 3-31-2015 | | | 12.07 | | | | 5.51 | | | | 148 | | | | 1.01 | | | | 2.60 | | | | — | | | | — | | | | 8 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.22 | | | | 1.44 | | | | 2 | | | | 1.75 | (4) | | | 1.39 | (4) | | | — | | | | — | | | | 1 | |
Year ended 3-31-2016 | | | 12.13 | | | | 2.11 | | | | 2 | | | | 1.73 | | | | 1.62 | | | | — | | | | — | | | | 4 | |
Year ended 3-31-2015 | | | 12.07 | | | | 4.71 | | | | 2 | | | | 1.77 | | | | 1.87 | | | | — | | | | — | | | | 8 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.22 | | | | 1.44 | | | | 31 | | | | 1.73 | (4) | | | 1.41 | (4) | | | — | | | | — | | | | 1 | |
Year ended 3-31-2016 | | | 12.13 | | | | 2.12 | | | | 31 | | | | 1.73 | | | | 1.61 | | | | — | | | | — | | | | 4 | |
Year ended 3-31-2015 | | | 12.07 | | | | 4.72 | | | | 24 | | | | 1.76 | | | | 1.86 | | | | — | | | | — | | | | 8 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.22 | | | | 1.92 | | | | 115 | | | | 0.79 | (4) | | | 2.34 | (4) | | | — | | | | — | | | | 1 | |
Year ended 3-31-2016 | | | 12.13 | | | | 3.09 | | | | 9 | | | | 0.78 | | | | 2.55 | | | | — | | | | — | | | | 4 | |
Year ended 3-31-2015 | | | 12.07 | | | | 5.73 | | | | 5 | | | | 0.80 | | | | 2.75 | | | | — | | | | — | | | | 8 | |
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 | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.22 | | | | 1.82 | | | | 1 | | | | 0.99 | (4) | | | 2.15 | (4) | | | 1.03 | (4) | | | 2.11 | (4) | | | 1 | |
Year ended 3-31-2016 | | | 12.13 | | | | 2.87 | | | | 1 | | | | 0.99 | | | | 2.35 | | | | 1.03 | | | | 2.31 | | | | 4 | |
Year ended 3-31-2015 | | | 12.07 | | | | 5.52 | | | | 1 | | | | 1.01 | | | | 2.60 | | | | 1.05 | | | | 2.56 | | | | 8 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 179 | |
| | |
| 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(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 9-30-2016 (unaudited) | | $ | 5.28 | | | $ | 0.11 | | | $ | 0.09 | | | $ | 0.20 | | | $ | (0.11 | ) | | $ | — | | | $ | (0.11 | ) |
Year ended 3-31-2016 | | | 5.31 | | | | 0.22 | | | | (0.03 | ) | | | 0.19 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2015 | | | 5.03 | | | | 0.23 | | | | 0.28 | | | | 0.51 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2014 | | | 5.47 | | | | 0.24 | | | | (0.42 | ) | | | (0.18 | ) | | | (0.24 | ) | | | (0.02 | ) | | | (0.26 | ) |
Year ended 3-31-2013 | | | 5.23 | | | | 0.21 | | | | 0.24 | | | | 0.45 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
Year ended 3-31-2012 | | | 4.75 | | | | 0.25 | | | | 0.48 | | | | 0.73 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.28 | | | | 0.09 | | | | 0.09 | | | | 0.18 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 5.31 | | | | 0.18 | | | | (0.03 | ) | | | 0.15 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2015 | | | 5.03 | | | | 0.19 | | | | 0.28 | | | | 0.47 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2014 | | | 5.47 | | | | 0.20 | | | | (0.42 | ) | | | (0.22 | ) | | | (0.20 | ) | | | (0.02 | ) | | | (0.22 | ) |
Year ended 3-31-2013 | | | 5.23 | | | | 0.17 | | | | 0.24 | | | | 0.41 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
Year ended 3-31-2012 | | | 4.75 | | | | 0.20 | | | | 0.49 | | | | 0.69 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.28 | | | | 0.09 | | | | 0.09 | | | | 0.18 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 5.31 | | | | 0.18 | | | | (0.03 | ) | | | 0.15 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2015 | | | 5.03 | | | | 0.19 | | | | 0.28 | | | | 0.47 | | | | (0.19 | ) | | | — | | | | (0.19 | ) |
Year ended 3-31-2014 | | | 5.47 | | | | 0.20 | | | | (0.42 | ) | | | (0.22 | ) | | | (0.20 | ) | | | (0.02 | ) | | | (0.22 | ) |
Year ended 3-31-2013 | | | 5.23 | | | | 0.17 | | | | 0.24 | | | | 0.41 | | | | (0.17 | ) | | | — | | | | (0.17 | ) |
Year ended 3-31-2012 | | | 4.75 | | | | 0.21 | | | | 0.48 | | | | 0.69 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.28 | | | | 0.12 | | | | 0.09 | | | | 0.21 | | | | (0.12 | ) | | | — | | | | (0.12 | ) |
Year ended 3-31-2016 | | | 5.31 | | | | 0.23 | | | | (0.03 | ) | | | 0.20 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2015 | | | 5.03 | | | | 0.24 | | | | 0.28 | | | | 0.52 | | | | (0.24 | ) | | | — | | | | (0.24 | ) |
Year ended 3-31-2014 | | | 5.47 | | | | 0.24 | | | | (0.42 | ) | | | (0.18 | ) | | | (0.24 | ) | | | (0.02 | ) | | | (0.26 | ) |
Year ended 3-31-2013 | | | 5.23 | | | | 0.22 | | | | 0.24 | | | | 0.46 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2012 | | | 4.75 | | | | 0.25 | | | | 0.48 | | | | 0.73 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.28 | | | | 0.11 | | | | 0.09 | | | | 0.20 | | | | (0.11 | ) | | | — | | | | (0.11 | ) |
Year ended 3-31-2016 | | | 5.31 | | | | 0.22 | | | | (0.03 | ) | | | 0.19 | | | | (0.22 | ) | | | — | | | | (0.22 | ) |
Year ended 3-31-2015 | | | 5.03 | | | | 0.23 | | | | 0.28 | | | | 0.51 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2014 | | | 5.47 | | | | 0.24 | | | | (0.42 | ) | | | (0.18 | ) | | | (0.24 | ) | | | (0.02 | ) | | | (0.26 | ) |
Year ended 3-31-2013 | | | 5.23 | | | | 0.21 | | | | 0.24 | | | | 0.45 | | | | (0.21 | ) | | | — | | | | (0.21 | ) |
Year ended 3-31-2012 | | | 4.75 | | | | 0.24 | | | | 0.49 | | | | 0.73 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
| (1) | Based on average weekly shares outstanding. |
| (2) | Based on net asset value, which does not reflect the sales charge 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. |
| (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. |
| | | | | | |
| 180 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 5.37 | | | | 3.83 | % | | $ | 320 | | | | 0.86 | %(4) | | | 4.17 | %(4) | | | — | % | | | — | % | | | 3 | % |
Year ended 3-31-2016 | | | 5.28 | | | | 3.61 | | | | 389 | | | | 0.86 | | | | 4.19 | | | | 0.88 | | | | 4.17 | | | | 4 | |
Year ended 3-31-2015 | | | 5.31 | | | | 10.29 | | | | 377 | | | | 0.85 | | | | 4.46 | | | | 0.87 | | | | 4.44 | | | | 9 | |
Year ended 3-31-2014 | | | 5.03 | | | | -3.32 | | | | 366 | | | | 0.86 | | | | 4.58 | | | | 0.87 | | | | 4.57 | | | | 21 | |
Year ended 3-31-2013 | | | 5.47 | | | | 8.71 | | | | 545 | | | | 0.84 | | | | 3.91 | | | | 0.85 | | | | 3.90 | | | | 9 | |
Year ended 3-31-2012 | | | 5.23 | | | | 15.62 | | | | 384 | | | | 0.87 | | | | 4.88 | | | | 0.90 | | | | 4.85 | | | | 4 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.37 | | | | 3.43 | | | | 13 | | | | 1.62 | (4) | | | 3.40 | (4) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 5.28 | | | | 2.84 | | | | 14 | | | | 1.62 | | | | 3.43 | | | | 1.64 | | | | 3.41 | | | | 4 | |
Year ended 3-31-2015 | | | 5.31 | | | | 9.44 | | | | 15 | | | | 1.62 | | | | 3.69 | | | | 1.64 | | | | 3.67 | | | | 9 | |
Year ended 3-31-2014 | | | 5.03 | | | | -4.07 | | | | 15 | | | | 1.64 | | | | 3.82 | | | | 1.65 | | | | 3.81 | | | | 21 | |
Year ended 3-31-2013 | | | 5.47 | | | | 7.86 | | | | 19 | | | | 1.62 | | | | 3.12 | | | | 1.63 | | | | 3.11 | | | | 9 | |
Year ended 3-31-2012 | | | 5.23 | | | | 14.70 | | | | 12 | | | | 1.67 | | | | 4.07 | | | | 1.70 | | | | 4.04 | | | | 4 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.37 | | | | 3.45 | | | | 229 | | | | 1.58 | (4) | | | 3.44 | (4) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 5.28 | | | | 2.87 | | | | 237 | | | | 1.58 | | | | 3.47 | | | | 1.60 | | | | 3.45 | | | | 4 | |
Year ended 3-31-2015 | | | 5.31 | | | | 9.50 | | | | 238 | | | | 1.58 | | | | 3.72 | | | | 1.60 | | | | 3.70 | | | | 9 | |
Year ended 3-31-2014 | | | 5.03 | | | | -4.04 | | | | 216 | | | | 1.60 | | | | 3.84 | | | | 1.61 | | | | 3.83 | | | | 21 | |
Year ended 3-31-2013 | | | 5.47 | | | | 7.92 | | | | 323 | | | | 1.57 | | | | 3.17 | | | | 1.59 | | | | 3.15 | | | | 9 | |
Year ended 3-31-2012 | | | 5.23 | | | | 14.77 | | | | 198 | | | | 1.62 | | | | 4.12 | | | | 1.65 | | | | 4.09 | | | | 4 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.37 | | | | 3.92 | | | | 781 | | | | 0.68 | (4) | | | 4.35 | (4) | | | — | | | | — | | | | 3 | |
Year ended 3-31-2016 | | | 5.28 | | | | 3.80 | | | | 701 | | | | 0.67 | | | | 4.38 | | | | 0.69 | | | | 4.36 | | | | 4 | |
Year ended 3-31-2015 | | | 5.31 | | | | 10.50 | | | | 703 | | | | 0.68 | | | | 4.62 | | | | 0.70 | | | | 4.60 | | | | 9 | |
Year ended 3-31-2014 | | | 5.03 | | | | -3.16 | | | | 586 | | | | 0.69 | | | | 4.76 | | | | 0.70 | | | | 4.75 | | | | 21 | |
Year ended 3-31-2013 | | | 5.47 | | | | 8.88 | | | | 749 | | | | 0.68 | | | | 4.06 | | | | 0.69 | | | | 4.05 | | | | 9 | |
Year ended 3-31-2012 | | | 5.23 | | | | 15.82 | | | | 416 | | | | 0.70 | | | | 5.04 | | | | 0.74 | | | | 5.00 | | | | 4 | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 5.37 | | | | 3.83 | | | | 18 | | | | 0.86 | (4) | | | 4.16 | (4) | | | 0.93 | (4) | | | 4.09 | (4) | | | 3 | |
Year ended 3-31-2016 | | | 5.28 | | | | 3.60 | | | | 21 | | | | 0.86 | | | | 4.19 | | | | 0.95 | | | | 4.10 | | | | 4 | |
Year ended 3-31-2015 | | | 5.31 | | | | 10.35 | | | | 21 | | | | 0.85 | | | | 4.39 | | | | 0.95 | | | | 4.29 | | | | 9 | |
Year ended 3-31-2014 | | | 5.03 | | | | -3.32 | | | | 15 | | | | 0.85 | | | | 4.52 | | | | 0.95 | | | | 4.42 | | | | 21 | |
Year ended 3-31-2013 | | | 5.47 | | | | 8.71 | | | | 34 | | | | 0.84 | | | | 3.92 | | | | 0.94 | | | | 3.82 | | | | 9 | |
Year ended 3-31-2012 | | | 5.23 | | | | 15.65 | | | | 26 | | | | 0.87 | | | | 4.83 | | | | 0.99 | | | | 4.71 | | | | 4 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 181 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 14.81 | | | $ | (0.06 | ) | | $ | 1.62 | | | $ | 1.56 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 18.71 | | | | (0.14 | ) | | | (1.43 | ) | | | (1.57 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 18.51 | | | | (0.14 | ) | | | 1.52 | | | | 1.38 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.57 | | | | (0.10 | ) | | | 1.27 | | | | 1.17 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.28 | | | | (0.23 | ) | | | (1.15 | ) | | | (1.38 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 15.47 | | | | (0.25 | ) | | | 1.24 | | | | 0.99 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.50 | | | | (0.10 | ) | | | 1.37 | | | | 1.27 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 16.27 | | | | (0.21 | ) | | | (1.23 | ) | | | (1.44 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 16.35 | | | | (0.23 | ) | | | 1.33 | | | | 1.10 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class E Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.70 | | | | (0.06 | ) | | | 1.61 | | | | 1.55 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.60 | | | | (0.14 | ) | | | (1.43 | ) | | | (1.57 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 18.43 | | | | (0.16 | ) | | | 1.51 | | | | 1.35 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.57 | | | | (0.05 | ) | | | 2.05 | | | | 2.00 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 22.77 | | | | (0.09 | ) | | | (1.77 | ) | | | (1.86 | ) | | | (0.01 | ) | | | (2.33 | ) | | | (2.34 | ) |
Year ended 3-31-2015 | | | 22.19 | | | | (0.09 | ) | | | 1.85 | | | | 1.76 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.63 | | | | (0.08 | ) | | | 1.61 | | | | 1.53 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.55 | | | | (0.17 | ) | | | (1.42 | ) | | | (1.59 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 18.41 | | | | (0.18 | ) | | | 1.50 | | | | 1.32 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.62 | | | | (0.03 | ) | | | 2.06 | | | | 2.03 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 22.79 | | | | (0.06 | ) | | | (1.77 | ) | | | (1.83 | ) | | | (0.01 | ) | | | (2.33 | ) | | | (2.34 | ) |
Year ended 3-31-2015(6) | | | 20.97 | | | | (0.02 | ) | | | 3.02 | | | | 3.00 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.72 | | | | (0.07 | ) | | | 1.95 | | | | 1.88 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 21.88 | | | | (0.13 | ) | | | (1.70 | ) | | | (1.83 | ) | | | — | | | | (2.33 | ) | | | (2.33 | ) |
Year ended 3-31-2015 | | | 21.42 | | | | (0.14 | ) | | | 1.78 | | | | 1.64 | | | | — | | | | (1.18 | ) | | | (1.18 | ) |
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 | ) |
| (1) | Based on average weekly shares outstanding. |
| (2) | Based on net asset value, which does not reflect the sales charge 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. |
| (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 March 31, 2015. |
| (7) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 182 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 16.37 | | | | 10.53 | % | | $ | 228 | | | | 1.42 | %(4) | | | -0.78 | %(4) | | | — | % | | | — | % | | | 19 | % |
Year ended 3-31-2016 | | | 14.81 | | | | -8.91 | | | | 325 | | | | 1.44 | | | | -0.80 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 18.71 | | | | 8.03 | | | | 384 | | | | 1.43 | | | | -0.80 | | | | — | | | | — | | | | 43 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.74 | | | | 10.11 | | | | 8 | | | | 2.24 | (4) | | | -1.62 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 11.57 | | | | -9.71 | | | | 8 | | | | 2.32 | | | | -1.69 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 15.28 | | | | 7.07 | | | | 11 | | | | 2.31 | | | | -1.69 | | | | — | | | | — | | | | 43 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.77 | | | | 10.16 | | | | 164 | | | | 2.07 | (4) | | | -1.45 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 12.50 | | | | -9.48 | | | | 166 | | | | 2.07 | | | | -1.43 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 16.27 | | | | 7.36 | | | | 207 | | | | 2.07 | | | | -1.44 | | | | — | | | | — | | | | 43 | |
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 | |
Class E Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.25 | | | | 10.54 | | | | 7 | | | | 1.44 | (4) | | | -0.82 | (4) | | | 1.73 | (4) | | | -1.11 | (4) | | | 19 | |
Year ended 3-31-2016 | | | 14.70 | | | | -8.96 | | | | 6 | | | | 1.49 | | | | -0.86 | | | | 1.73 | | | | -1.10 | | | | 43 | |
Year ended 3-31-2015 | | | 18.60 | | | | 7.90 | | | | 6 | | | | 1.56 | | | | -0.92 | | | | 1.79 | | | | -1.15 | | | | 43 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.57 | | | | 10.77 | | | | 253 | | | | 1.08 | (4) | | | -0.49 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 18.57 | | | | -8.59 | | | | 169 | | | | 1.06 | | | | -0.43 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 22.77 | | | | 8.42 | | | | 214 | | | | 1.06 | | | | -0.43 | | | | — | | | | — | | | | 43 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.16 | | | | 10.46 | | | | 44 | | | | 1.66 | (4) | | | -1.04 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 14.63 | | | | -9.10 | | | | 42 | | | | 1.66 | | | | -1.03 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 18.55 | | | | 7.74 | | | | 45 | | | | 1.66 | | | | -1.02 | | | | — | | | | — | | | | 43 | |
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 | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.65 | | | | 10.90 | | | | 47 | | | | 0.91 | (4) | | | -0.29 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 18.62 | | | | -8.46 | | | | 23 | | | | 0.91 | | | | -0.28 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015(6) | | | 22.79 | | | | 14.83 | | | | 22 | | | | 0.90 | (4) | | | -0.12 | (4) | | | — | | | | — | | | | 43 | (7) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.60 | | | | 10.61 | | | | 220 | | | | 1.31 | (4) | | | -0.70 | (4) | | | — | | | | — | | | | 19 | |
Year ended 3-31-2016 | | | 17.72 | | | | -8.80 | | | | 205 | | | | 1.31 | | | | -0.67 | | | | — | | | | — | | | | 43 | |
Year ended 3-31-2015 | | | 21.88 | | | | 8.16 | | | | 262 | | | | 1.30 | | | | -0.68 | | | | — | | | | — | | | | 43 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 183 | |
| | |
| 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 9-30-2016 (unaudited) | | $ | 14.38 | | | $ | 0.00 | * | | $ | 2.39 | | | $ | 2.39 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 17.47 | | | | (0.07 | ) | | | (0.87 | ) | | | (0.94 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 18.32 | | | | (0.04 | ) | | | 0.99 | | | | 0.95 | | | | — | | | | (1.80 | ) | | | (1.80 | ) |
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 | ) |
Class B Shares(4) | |
Six-month period ended 9-30-2016 (unaudited) | | | 11.92 | | | | (0.06 | ) | | | 1.97 | | | | 1.91 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.01 | | | | (0.19 | ) | | | (0.75 | ) | | | (0.94 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 16.10 | | | | (0.18 | ) | | | 0.84 | | | | 0.66 | | | | — | | | | (1.75 | ) | | | (1.75 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 12.64 | | | | (0.05 | ) | | | 2.10 | | | | 2.05 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 15.74 | | | | (0.16 | ) | | | (0.79 | ) | | | (0.95 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 16.76 | | | | (0.14 | ) | | | 0.89 | | | | 0.75 | | | | — | | | | (1.77 | ) | | | (1.77 | ) |
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 | ) |
Class E Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.87 | | | | 0.02 | | | | 2.48 | | | | 2.50 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 17.93 | | | | (0.02 | ) | | | (0.89 | ) | | | (0.91 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 18.76 | | | | 0.03 | | | | 1.01 | | | | 1.04 | | | | — | | | | (1.87 | ) | | | (1.87 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.42 | | | | 0.03 | | | | 2.57 | | | | 2.60 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.49 | | | | 0.00 | * | | | (0.92 | ) | | | (0.92 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 19.29 | | | | 0.05 | | | | 1.04 | | | | 1.09 | | | | — | | | | (1.89 | ) | | | (1.89 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.33 | | | | (0.02 | ) | | | 2.38 | | | | 2.36 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 17.44 | | | | (0.10 | ) | | | (0.86 | ) | | | (0.96 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 18.31 | | | | (0.06 | ) | | | 0.98 | | | | 0.92 | | | | — | | | | (1.79 | ) | | | (1.79 | ) |
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 9-30-2016 (unaudited) | | | 15.52 | | | | 0.04 | | | | 2.59 | | | | 2.63 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.56 | | | | 0.02 | | | | (0.91 | ) | | | (0.89 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015(7) | | | 18.96 | | | | 0.08 | | | | 1.36 | | | | 1.44 | | | | — | | | | (1.84 | ) | | | (1.84 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 15.03 | | | | 0.01 | | | | 2.50 | | | | 2.51 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.12 | | | | (0.05 | ) | | | (0.89 | ) | | | (0.94 | ) | | | — | | | | (2.15 | ) | | | (2.15 | ) |
Year ended 3-31-2015 | | | 18.94 | | | | (0.02 | ) | | | 1.04 | | | | 1.02 | | | | — | | | | (1.84 | ) | | | (1.84 | ) |
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 | ) |
| * | 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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not 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 March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 184 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
End of Period | | | Total
Return(2) | | | Net Assets,
End of Period
(in millions) | | | Ratio of
Expenses to
Average Net
Assets | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets | | | Portfolio
Turnover
Rate | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 16.77 | | | | 16.62 | % | | $ | 158 | | | | 1.53 | %(3) | | | -0.05 | %(3) | | | 88 | % |
Year ended 3-31-2016 | | | 14.38 | | | | -5.11 | | | | 193 | | | | 1.56 | | | | -0.45 | | | | 135 | |
Year ended 3-31-2015 | | | 17.47 | | | | 5.74 | | | | 240 | | | | 1.54 | | | | -0.20 | | | | 106 | |
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 | | | | — | | | | 50 | |
Class B Shares(4) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 13.83 | | | | 16.02 | | | | 3 | | | | 2.48 | (3) | | | -0.98 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 11.92 | | | | -5.99 | | | | 2 | | | | 2.51 | | | | -1.39 | | | | 135 | |
Year ended 3-31-2015 | | | 15.01 | | | | 4.68 | | | | 3 | | | | 2.50 | | | | -1.17 | | | | 106 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 14.69 | | | | 16.22 | | | | 19 | | | | 2.22 | (3) | | | -0.72 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 12.64 | | | | -5.77 | | | | 14 | | | | 2.23 | | | | -1.11 | | | | 135 | |
Year ended 3-31-2015 | | | 15.74 | | | | 5.02 | | | | 18 | | | | 2.21 | | | | -0.89 | | | | 106 | |
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 | |
Class E Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.37 | | | | 16.81 | | | | — | * | | | 1.22 | (3) | | | 0.28 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 14.87 | | | | -4.80 | | | | — | * | | | 1.22 | | | | -0.12 | | | | 135 | |
Year ended 3-31-2015 | | | 17.93 | | | | 6.08 | | | | — | * | | | 1.21 | | | | 0.14 | | | | 106 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.02 | | | | 16.86 | | | | 128 | | | | 1.13 | (3) | | | 0.40 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 15.42 | | | | -4.71 | | | | 25 | | | | 1.12 | | | | — | * | | | 135 | |
Year ended 3-31-2015 | | | 18.49 | | | | 6.20 | | | | 29 | | | | 1.10 | | | | 0.26 | | | | 106 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 16.69 | | | | 16.47 | | | | 4 | | | | 1.70 | (3) | | | -0.21 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 14.33 | | | | -5.24 | | | | 3 | | | | 1.72 | | | | -0.66 | | | | 135 | |
Year ended 3-31-2015 | | | 17.44 | | | | 5.57 | | | | 2 | | | | 1.70 | | | | -0.32 | | | | 106 | |
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 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.15 | | | | 16.95 | | | | 5 | | | | 0.96 | (3) | | | 0.53 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 15.52 | | | | -4.52 | | | | 4 | | | | 0.96 | | | | 0.13 | | | | 135 | |
Year ended 3-31-2015(7) | | | 18.56 | | | | 8.17 | | | | 3 | | | | 0.96 | (3) | | | 0.70 | (3) | | | 106 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.54 | | | | 16.70 | | | | 12 | | | | 1.37 | (3) | | | 0.13 | (3) | | | 88 | |
Year ended 3-31-2016 | | | 15.03 | | | | -4.92 | | | | 7 | | | | 1.37 | | | | -0.30 | | | | 135 | |
Year ended 3-31-2015 | | | 18.12 | | | | 5.93 | | | | 10 | | | | 1.36 | | | | -0.09 | | | | 106 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 185 | |
| | |
| FINANCIAL HIGHLIGHTS | | IVY FUNDS |
FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGHOUT EACH PERIOD
IVY TAX-MANAGED EQUITY FUND
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
Beginning of
Period | | | Net
Investment
Income
(Loss)(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 9-30-2016 (unaudited) | | $ | 18.68 | | | $ | (0.04 | ) | | $ | 0.86 | | | $ | 0.82 | | | $ | — | | | $ | — | | | $ | — | |
Year ended 3-31-2016 | | | 19.31 | | | | (0.07 | ) | | | (0.20 | ) | | | (0.27 | ) | | | — | | | | (0.36 | ) | | | (0.36 | ) |
Year ended 3-31-2015 | | | 16.84 | | | | (0.02 | ) | | | 2.86 | | | | 2.84 | | | | — | | | | (0.37 | ) | | | (0.37 | ) |
Year ended 3-31-2014 | | | 14.13 | | | | (0.05 | ) | | | 3.23 | | | | 3.18 | | | | — | | | | (0.47 | ) | | | (0.47 | ) |
Year ended 3-31-2013 | | | 13.15 | | | | 0.05 | | | | 0.99 | | | | 1.04 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2012 | | | 12.15 | | | | (0.03 | ) | | | 1.03 | | | | 1.00 | | | | — | | | | — | | | | — | |
Class B Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.03 | | | | (0.11 | ) | | | 0.83 | | | | 0.72 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.73 | | | | (0.20 | ) | | | (0.21 | ) | | | (0.41 | ) | | | — | | | | (0.29 | ) | | | (0.29 | ) |
Year ended 3-31-2015 | | | 16.45 | | | | (0.14 | ) | | | 2.79 | | | | 2.65 | | | | — | | | | (0.37 | ) | | | (0.37 | ) |
Year ended 3-31-2014 | | | 13.87 | | | | (0.14 | ) | | | 3.15 | | | | 3.01 | | | | — | | | | (0.43 | ) | | | (0.43 | ) |
Year ended 3-31-2013 | | | 12.92 | | | | (0.03 | ) | | | 0.99 | | | | 0.96 | | | | (0.01 | ) | | | — | | | | (0.01 | ) |
Year ended 3-31-2012 | | | 12.01 | | | | (0.10 | ) | | | 1.01 | | | | 0.91 | | | | — | | | | — | | | | — | |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 17.98 | | | | (0.11 | ) | | | 0.82 | | | | 0.71 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 18.69 | | | | (0.21 | ) | | | (0.21 | ) | | | (0.42 | ) | | | — | | | | (0.29 | ) | | | (0.29 | ) |
Year ended 3-31-2015 | | | 16.42 | | | | (0.15 | ) | | | 2.79 | | | | 2.64 | | | | — | | | | (0.37 | ) | | | (0.37 | ) |
Year ended 3-31-2014 | | | 13.85 | | | | (0.15 | ) | | | 3.15 | | | | 3.00 | | | | — | | | | (0.43 | ) | | | (0.43 | ) |
Year ended 3-31-2013 | | | 12.91 | | | | (0.03 | ) | | | 0.97 | | | | 0.94 | | | | — | | | | — | | | | — | |
Year ended 3-31-2012 | | | 12.01 | | | | (0.11 | ) | | | 1.01 | | | | 0.90 | | | | — | | | | — | | | | — | |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.83 | | | | (0.02 | ) | | | 0.87 | | | | 0.85 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.47 | | | | (0.03 | ) | | | (0.21 | ) | | | (0.24 | ) | | | — | | | | (0.40 | ) | | | (0.40 | ) |
Year ended 3-31-2015 | | | 16.93 | | | | 0.02 | | | | 2.89 | | | | 2.91 | | | | — | | | | (0.37 | ) | | | (0.37 | ) |
Year ended 3-31-2014 | | | 14.20 | | | | 0.00 | | | | 3.23 | | | | 3.23 | | | | — | | | | (0.50 | ) | | | (0.50 | ) |
Year ended 3-31-2013 | | | 13.27 | | | | 0.09 | | | | 0.92 | | | | 1.01 | | | | (0.08 | ) | | | — | | | | (0.08 | ) |
Year ended 3-31-2012 | | | 12.22 | | | | 0.00 | | | | 1.05 | | | | 1.05 | | | | — | | | | — | | | | — | |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.71 | | | | (0.04 | ) | | | 0.85 | | | | 0.81 | | | | — | | | | — | | | | — | |
Year ended 3-31-2016 | | | 19.34 | | | | (0.07 | ) | | | (0.20 | ) | | | (0.27 | ) | | | — | | | | (0.36 | ) | | | (0.36 | ) |
Year ended 3-31-2015 | | | 16.86 | | | | (0.03 | ) | | | 2.88 | | | | 2.85 | | | | — | | | | (0.37 | ) | | | (0.37 | ) |
Year ended 3-31-2014 | | | 14.15 | | | | (0.04 | ) | | | 3.23 | | | | 3.19 | | | | — | | | | (0.48 | ) | | | (0.48 | ) |
Year ended 3-31-2013 | | | 13.16 | | | | 0.05 | | | | 1.00 | | | | 1.05 | | | | (0.06 | ) | | | — | | | | (0.06 | ) |
Year ended 3-31-2012 | | | 12.15 | | | | (0.02 | ) | | | 1.03 | | | | 1.01 | | | | — | | | | — | | | | — | |
| (1) | Based on average weekly shares outstanding. |
| (2) | Based on net asset value, which does not reflect the sales charge 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. |
| (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. |
| | | | | | |
| 186 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 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 9-30-2016 (unaudited) | | $ | 19.50 | | | | 4.39 | % | | $ | 40 | | | | 1.20 | %(4) | | | -0.44 | %(4) | | | — | % | | | — | % | | | 24 | % |
Year ended 3-31-2016 | | | 18.68 | | | | -1.51 | | | | 107 | | | | 1.22 | | | | -0.35 | | | | — | | | | — | | | | 21 | |
Year ended 3-31-2015 | | | 19.31 | | | | 17.00 | | | | 71 | | | | 1.29 | | | | -0.13 | | | | — | | | | — | | | | 36 | |
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 | |
Class B Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.75 | | | | 3.99 | | | | 1 | | | | 1.91 | (4) | | | -1.16 | (4) | | | — | | | | — | | | | 24 | |
Year ended 3-31-2016 | | | 18.03 | | | | -2.24 | | | | 1 | | | | 1.92 | | | | -1.06 | | | | — | | | | — | | | | 21 | |
Year ended 3-31-2015 | | | 18.73 | | | | 16.25 | | | | 1 | | | | 1.95 | | | | -0.82 | | | | — | | | | — | | | | 36 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.69 | | | | 3.95 | | | | 5 | | | | 1.96 | (4) | | | -1.21 | (4) | | | — | | | | — | | | | 24 | |
Year ended 3-31-2016 | | | 17.98 | | | | -2.30 | | | | 6 | | | | 2.01 | | | | -1.13 | | | | — | | | | — | | | | 21 | |
Year ended 3-31-2015 | | | 18.69 | | | | 16.21 | | | | 2 | | | | 2.01 | | | | -0.86 | | | | — | | | | — | | | | 36 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.68 | | | | 4.51 | | | | 71 | | | | 0.97 | (4) | | | -0.23 | (4) | | | — | | | | — | | | | 24 | |
Year ended 3-31-2016 | | | 18.83 | | | | -1.32 | | | | 5 | | | | 0.99 | | | | -0.14 | | | | — | | | | — | | | | 21 | |
Year ended 3-31-2015 | | | 19.47 | | | | 17.33 | | | | 4 | | | | 1.04 | | | | 0.10 | | | | — | | | | — | | | | 36 | |
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 | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.52 | | | | 4.33 | | | | 1 | | | | 1.20 | (4) | | | -0.45 | (4) | | | 1.22 | (4) | | | -0.47 | (4) | | | 24 | |
Year ended 3-31-2016 | | | 18.71 | | | | -1.50 | | | | 1 | | | | 1.22 | | | | -0.38 | | | | 1.24 | | | | -0.40 | | | | 21 | |
Year ended 3-31-2015 | | | 19.34 | | | | 17.04 | | | | 1 | | | | 1.29 | | | | -0.16 | | | | — | | | | — | | | | 36 | |
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 | |
See Accompanying Notes to Financial Statements.
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 187 | |
| | |
| 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
From Net
Investment
Income | | | Distributions
From Net
Realized
Gains | | | Total
Distributions | |
Class A Shares | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 19.72 | | | $ | 0.12 | | | $ | 1.16 | | | $ | 1.28 | | | $ | (0.22 | ) | | $ | — | | | $ | (0.22 | ) |
Year ended 3-31-2016 | | | 23.40 | | | | 0.14 | | | | (1.14 | ) | | | (1.00 | ) | | | (0.03 | ) | | | (2.65 | ) | | | (2.68 | ) |
Year ended 3-31-2015 | | | 23.82 | | | | 0.12 | | | | 1.25 | | | | 1.37 | | | | (0.06 | ) | | | (1.73 | ) | | | (1.79 | ) |
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 | ) |
Class B Shares(4) | |
Six-month period ended 9-30-2016 (unaudited) | | | 18.39 | | | | 0.03 | | | | 1.06 | | | | 1.09 | | | | (0.09 | ) | | | — | | | | (0.09 | ) |
Year ended 3-31-2016 | | | 22.04 | | | | (0.08 | ) | | | (1.06 | ) | | | (1.14 | ) | | | — | | | | (2.51 | ) | | | (2.51 | ) |
Year ended 3-31-2015 | | | 22.53 | | | | (0.10 | ) | | | 1.19 | | | | 1.09 | | | | — | | | | (1.58 | ) | | | (1.58 | ) |
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 | ) |
Class C Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.07 | | | | 0.07 | | | | 1.11 | | | | 1.18 | | | | (0.13 | ) | | | — | | | | (0.13 | ) |
Year ended 3-31-2016 | | | 22.73 | | | | (0.01 | ) | | | (1.11 | ) | | | (1.12 | ) | | | — | | | | (2.54 | ) | | | (2.54 | ) |
Year ended 3-31-2015 | | | 23.18 | | | | (0.05 | ) | | | 1.22 | | | | 1.17 | | | | — | | | | (1.62 | ) | | | (1.62 | ) |
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 | ) |
Class E Shares(5) | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.81 | | | | 0.16 | | | | 1.14 | | | | 1.30 | | | | (0.25 | ) | | | — | | | | (0.25 | ) |
Year ended 3-31-2016 | | | 23.49 | | | | 0.19 | | | | (1.14 | ) | | | (0.95 | ) | | | (0.04 | ) | | | (2.69 | ) | | | (2.73 | ) |
Year ended 3-31-2015 | | | 23.90 | | | | 0.17 | | | | 1.27 | | | | 1.44 | | | | (0.10 | ) | | | (1.75 | ) | | | (1.85 | ) |
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 | ) |
Class I Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.81 | | | | 0.21 | | | | 1.11 | | | | 1.32 | | | | (0.27 | ) | | | — | | | | (0.27 | ) |
Year ended 3-31-2016 | | | 23.50 | | | | 0.20 | | | | (1.13 | ) | | | (0.93 | ) | | | (0.05 | ) | | | (2.71 | ) | | | (2.76 | ) |
Year ended 3-31-2015 | | | 23.90 | | | | 0.19 | | | | 1.28 | | | | 1.47 | | | | (0.11 | ) | | | (1.76 | ) | | | (1.87 | ) |
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 | ) |
Class R Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.70 | | | | 0.11 | | | | 1.14 | | | | 1.25 | | | | (0.18 | ) | | | — | | | | (0.18 | ) |
Year ended 3-31-2016 | | | 23.37 | | | | 0.08 | | | | (1.13 | ) | | | (1.05 | ) | | | (0.01 | ) | | | (2.61 | ) | | | (2.62 | ) |
Year ended 3-31-2015 | | | 23.79 | | | | 0.05 | | | | 1.26 | | | | 1.31 | | | | (0.01 | ) | | | (1.72 | ) | | | (1.73 | ) |
Year ended 3-31-2014 | | | 20.28 | | | | 0.01 | | | | 4.41 | | | | 4.42 | | | | (0.01 | ) | | | (0.90 | ) | | | (0.91 | ) |
Year ended 3-31-2013(6) | | | 18.17 | | | | 0.04 | | | | 2.07 | | | | 2.11 | | | | — | | | | — | | | | — | |
Class R6 Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.87 | | | | 0.20 | | | | 1.13 | | | | 1.33 | | | | (0.29 | ) | | | — | | | | (0.29 | ) |
Year ended 3-31-2016 | | | 23.56 | | | | 0.25 | | | | (1.15 | ) | | | (0.90 | ) | | | (0.06 | ) | | | (2.73 | ) | | | (2.79 | ) |
Year ended 3-31-2015(7) | | | 24.96 | | | | 0.18 | | | | 0.25 | | | | 0.43 | | | | (0.10 | ) | | | (1.73 | ) | | | (1.83 | ) |
Class Y Shares | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.77 | | | | 0.15 | | | | 1.14 | | | | 1.29 | | | | (0.23 | ) | | | — | | | | (0.23 | ) |
Year ended 3-31-2016 | | | 23.45 | | | | 0.15 | | | | (1.13 | ) | | | (0.98 | ) | | | (0.03 | ) | | | (2.67 | ) | | | (2.70 | ) |
Year ended 3-31-2015 | | | 23.86 | | | | 0.14 | | | | 1.26 | | | | 1.40 | | | | (0.07 | ) | | | (1.74 | ) | | | (1.81 | ) |
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 | ) |
| * | 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 or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not 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 March 31, 2015. |
| (8) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2013. |
| (9) | Portfolio turnover is calculated at the fund level. Percentage indicated was calculated for the year ended March 31, 2015. |
| | | | | | |
| 188 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Net Asset
Value,
End of Period | | | Total
Return(2) | | | Net Assets,
End of Period
(in millions) | | | Ratio of
Expenses to
Average Net
Assets | | | Ratio of Net
Investment
Income
(Loss) to
Average Net
Assets | | | Portfolio
Turnover
Rate | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | $ | 20.78 | | | | 6.53 | % | | $ | 106 | | | | 1.36 | %(3) | | | 1.14 | %(3) | | | 32 | % |
Year ended 3-31-2016 | | | 19.72 | | | | -4.60 | | | | 247 | | | | 1.30 | | | | 0.61 | | | | 55 | |
Year ended 3-31-2015 | | | 23.40 | | | | 5.71 | | | | 295 | | | | 1.27 | | | | 0.48 | | | | 82 | |
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 | |
Class B Shares(4) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 19.39 | | | | 5.97 | | | | 3 | | | | 2.40 | (3) | | | 0.27 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 18.39 | | | | -5.54 | | | | 3 | | | | 2.27 | | | | -0.38 | | | | 55 | |
Year ended 3-31-2015 | | | 22.04 | | | | 4.80 | | | | 4 | | | | 2.18 | | | | -0.43 | | | | 82 | |
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 | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.12 | | | | 6.20 | | | | 17 | | | | 1.99 | (3) | | | 0.68 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.07 | | | | -5.25 | | | | 18 | | | | 1.98 | | | | -0.06 | | | | 55 | |
Year ended 3-31-2015 | | | 22.73 | | | | 5.00 | | | | 22 | | | | 1.97 | | | | -0.22 | | | | 82 | |
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 | |
Class E Shares(5) | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.86 | | | | 6.65 | | | | — | * | | | 1.10 | (3) | | | 1.59 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.81 | | | | -4.34 | | | | — | * | | | 1.06 | | | | 0.86 | | | | 55 | |
Year ended 3-31-2015 | | | 23.49 | | | | 5.98 | | | | — | * | | | 1.05 | | | | 0.70 | | | | 82 | |
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 | |
Class I Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.86 | | | | 6.72 | | | | 147 | | | | 1.01 | (3) | | | 2.04 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.81 | | | | -4.28 | | | | 7 | | | | 0.97 | | | | 0.90 | | | | 55 | |
Year ended 3-31-2015 | | | 23.50 | | | | 6.13 | | | | 15 | | | | 0.94 | | | | 0.79 | | | | 82 | |
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 | |
Class R Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.77 | | | | 6.39 | | | | — | * | | | 1.59 | (3) | | | 1.10 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.70 | | | | -4.82 | | | | — | * | | | 1.56 | | | | 0.36 | | | | 55 | |
Year ended 3-31-2015 | | | 23.37 | | | | 5.45 | | | | — | * | | | 1.54 | | | | 0.21 | | | | 82 | |
Year ended 3-31-2014 | | | 23.79 | | | | 22.13 | | | | 1 | | | | 1.57 | | | | 0.03 | | | | 58 | |
Year ended 3-31-2013(6) | | | 20.28 | | | | 11.61 | | | | — | * | | | 1.55 | (3) | | | 0.73 | (3) | | | 57 | (8) |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.91 | | | | 6.78 | | | | 7 | | | | 0.85 | (3) | | | 1.99 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.87 | | | | -4.12 | | | | 2 | | | | 0.81 | | | | 1.14 | | | | 55 | |
Year ended 3-31-2015(7) | | | 23.56 | | | | 1.72 | | | | 1 | | | | 0.79 | (3) | | | 1.11 | (3) | | | 82 | (9) |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | |
Six-month period ended 9-30-2016 (unaudited) | | | 20.83 | | | | 6.60 | | | | 3 | | | | 1.20 | (3) | | | 1.46 | (3) | | | 32 | |
Year ended 3-31-2016 | | | 19.77 | | | | -4.51 | | | | 2 | | | | 1.22 | | | | 0.65 | | | | 55 | |
Year ended 3-31-2015 | | | 23.45 | | | | 5.84 | | | | 3 | | | | 1.20 | | | | 0.58 | | | | 82 | |
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 | |
See Accompanying Notes to Financial Statements.
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 189 | |
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| NOTES TO FINANCIAL STATMENTS | | IVY FUNDS |
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| SEPTEMBER 30, 2016 (UNAUDITED) |
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 Growth Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund, Ivy International Core Equity 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 Mid Cap Income Opportunities 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 25 series of the Trust and are the only series of the Trust included in these financial statements. The investment objective(s), policies and risk factors of each Fund are described more fully in the Funds’ Prospectus and Statement of Additional Information (“SAI”). Each Fund’s investment manager is Ivy Investment Management Company (“IICO” or the “Manager”).
Each Fund offers Class A and Class C shares. Each Fund (excluding Ivy Mid Cap Income Opportunities Fund) offers Class B shares. 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. Class C shares of Ivy Money Market Fund will continue to be available for dividend reinvestment and exchanges from Class C shares of another fund within Ivy Funds. 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 Global 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 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 approved 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.
Income Taxes. It is the policy of each Fund to distribute all of its taxable income and capital gains to its shareholders and to otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. In addition,
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| 190 | | SEMIANNUAL REPORT | | 2016 | | |
each Fund intends to pay distributions as required to avoid imposition of excise tax. Accordingly, no provision has been made for Federal income taxes. The Funds file income tax returns in U.S. federal and applicable state jurisdictions. The Funds’ tax returns are subject to examination by the relevant taxing authority until expiration of the applicable statute of limitations, which is generally three years after the filing of the tax returns. Management of the Trust periodically reviews all tax positions to assess whether 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 the date of these financial statements, management believes that no liability for unrecognized tax positions is required.
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 exceed net investment income and accumulated realized capital gains, a portion of the total distribution may be treated as a return of capital for tax purposes.
Segregation and Collateralization. In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”), the Dodd Frank Wall Street Reform and Consumer Protection Act, or the interpretive rules and regulations of the U.S. Commodities Futures Trading Commission 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.
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 non-investment-grade bonds, that 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.
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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, the debtor of which may be a domestic or foreign corporation, partnership or other entity (“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, the London Interbank Offered Rate (“LIBOR”) 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, as amended, 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 direct 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 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 cash or in 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 Trustees 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 Chief Compliance Officer of the Funds are shown on the Statement of Operations.
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| 192 | | SEMIANNUAL REPORT | | 2016 | | |
Indemnification. 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.
New Rule Issuance. In July 2014, the SEC issued Final Rule Release No. 33-9616, Money Market Fund Reform; Amendments to Form PF, which amends the rules governing money market funds. The final amendments impose different implementation dates for the changes that certain money market funds will need to make. Management is currently evaluating the implication of these amendments and their impact of the Final Rule to the Funds’ financial statements and related disclosures.
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 financial instruments 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 the last reported sales price, 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 approved 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 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. Short-term securities with maturities of 60 days or less held in all Funds (with the exception of Ivy Money Market Fund) are valued based on quotes that are obtained from an independent pricing service approved by the Board as described in the preceding paragraph above.
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 financial instruments are valued at fair value, as determined in good faith by the Board or Valuation Committee 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 financial instruments. 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 financial instruments and for determining whether the value of the applicable securities or financial instruments should be re-evaluated in light of such significant events. The Board has established a Valuation Committee to administer and oversee the valuation process, including the use of third party pricing vendors.
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The Board has adopted methods for valuing securities and financial instruments 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 financial instrument cannot be valued pursuant to one of the valuation methods established by the Board, the value of the security or financial instrument 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 its 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 are 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 its 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, as obtained from an independent pricing service, 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, are provided by an independent pricing service. Swaps derive their value from underlying asset prices, indices, reference rates and other inputs or a combination of these factors. Swaps are valued by an independent pricing service unless the price is unavailable, in which case they are valued at the price provided
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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 ask 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 used by and obtained from an independent pricing service 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 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 to the extent that significant inputs to valuation are unobservable, because they trade infrequently, if at all 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 2 of the fair value hierarchy depending on the liquidity and transparency of the market.
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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. 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 and/or affiliated securities and in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities, respectively. Additionally, the net change in unrealized appreciation (depreciation) for all Level 3 investments still held as of September 30, 2016, if applicable, is included on the Statement of Operations in net change in unrealized appreciation (depreciation) on investments in unaffiliated and/or affiliated securities.
| 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.
Ivy Cundill Global Value Fund, Ivy Emerging Markets Equity Fund, Ivy European Opportunities Fund, Ivy Global Bond Fund, Ivy Global Equity Income Fund, Ivy Global Growth Fund, Ivy Global Income Allocation Fund, Ivy High Income Fund and Ivy International Core Equity Fund enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from foreign currencies (foreign currency exchange rate risk).
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.
Ivy Bond Fund, Ivy Municipal Bond Fund and Ivy Municipal High Income Fund invest in long and/or short positions in futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
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
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| 196 | | SEMIANNUAL REPORT | | 2016 | | |
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. 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.
Ivy Emerging Markets Equity Fund, Ivy Global Equity Income Fund, Ivy Global Income Allocation Fund, Ivy International Core Equity Fund, Ivy Mid Cap Growth Fund and Ivy Value Fund purchase and write call and put options to increase or decrease hedging exposure to underlying instruments (which include credit risk, equity risk, foreign currency exchange rate risk, event risk and/or interest rate risk), increase exposure to various equity markets or certain sectors, gain exposure to or facilitate trading in certain securities and/or, in the case of options written, to generate returns from options premiums.
Swap Agreements. Certain Funds may invest in swap agreements. Swaps are marked to market daily and changes in value are recorded as unrealized appreciation (depreciation) on the Statement of Operations. Payments received or made by the Fund are recorded as realized gain or loss on the Statement of Operations. Any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, if any, on the Statement of Assets and Liabilities and amortized over the term of the swap. A liquidation payment received or made at the termination or maturity of the swap is recorded as realized gain or loss on the Statement of Operations.
Total return swaps involve a commitment to pay or receive periodic interest payments in exchange for a market-linked return based on a security or a basket of securities including a variety of securities or representing 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.
Ivy High Income Fund and Ivy Small Cap Growth Fund enter into total return swaps to hedge exposure to a security or market.
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 with collateral, which is generally held by the Fund’s custodian or broker. 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.
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Offsetting of Assets and Liabilities. The following tables present financial instruments that are either (1) offset or (2) subject to an enforceable master netting arrangement or similar agreement as of September 30, 2016:
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) | | $ | 41 | | | $ | — | | | $ | 41 | | | $ | (41 | ) | | $ | — | | | $ | — | | | $ | — | |
| Ivy Emerging Markets Equity Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 213 | | | $ | — | | | $ | 213 | | | $ | — | | | $ | — | | | $ | — | | | $ | 213 | |
| Ivy European Opportunities Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 174 | | | $ | — | | | $ | 174 | | | $ | — | | | $ | — | | | $ | — | | | $ | 174 | |
| Ivy Global Bond Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 22 | | | $ | — | | | $ | 22 | | | $ | — | | | $ | — | | | $ | — | | | $ | 22 | |
| Ivy Global Equity Income Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 369 | | | $ | — | | | $ | 369 | | | $ | — | | | $ | — | | | $ | — | | | $ | 369 | |
| Ivy Global Growth Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 53 | | | $ | — | | | $ | 53 | | | $ | — | | | $ | — | | | $ | — | | | $ | 53 | |
| Ivy Global Income Allocation Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 286 | | | $ | — | | | $ | 286 | | | $ | — | | | $ | — | | | $ | (163 | ) | | $ | 123 | |
| Ivy High Income Fund | |
Unrealized appreciation on forward foreign currency contracts(1) | | $ | 1,058 | | | $ | — | | | $ | 1,058 | | | $ | (421 | ) | | $ | — | | | $ | (451 | ) | | $ | 186 | |
| Ivy International Core Equity Fund | |
Unrealized appreciation on forward foreign currency contracts | | $ | 488 | | | $ | — | | | $ | 488 | | | $ | — | | | $ | — | | | $ | — | | | $ | 488 | |
| Ivy Mid Cap Growth Fund | |
Investments in unaffiliated securities at value* | | $ | 3,424 | | | $ | — | | | $ | 3,424 | | | $ | (668 | ) | | $ | (2,756 | ) | | $ | — | | | $ | — | |
| Ivy Small Cap Growth Fund | |
Unrealized appreciation on swap agreements | | $ | 2,259 | | | $ | — | | | $ | 2,259 | | | $ | — | | | $ | (1,702 | ) | | $ | — | | | $ | 557 | |
| * | Purchased options are reported as investments in unaffiliated securities on the Statement of Assets and Liabilities. |
| (1) | Amounts include forward 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. |
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| 198 | | SEMIANNUAL REPORT | | 2016 | | |
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 Cundill Global Value Fund | |
Unrealized depreciation on forward foreign currency contracts(1) | | $ | 90 | | | $ | — | | | $ | 90 | | | $ | (41 | ) | | $ | (32 | ) | | $ | — | | | $ | 17 | |
| Ivy Emerging Markets Equity Fund | |
Unrealized depreciation on forward foreign currency contracts | | $ | 362 | | | $ | — | | | $ | 362 | | | $ | — | | | $ | — | | | $ | (362 | ) | | $ | — | |
Written Options at value | | | 1,968 | | | | — | | | | 1,968 | | | | — | | | | — | | | | (1,968 | ) | | | — | |
Total | | $ | 2,330 | | | $ | — | | | $ | 2,330 | | | $ | — | | | $ | — | | | $ | (2,330 | ) | | $ | — | |
| Ivy High Income Fund | |
Unrealized depreciation on forward foreign currency contracts(1) | | $ | 4,482 | | | $ | — | | | $ | 4,482 | | | $ | (421 | ) | | $ | — | | | $ | (3,920 | ) | | $ | 141 | |
| Ivy Mid Cap Growth Fund | |
Written Options at value | | $ | 15,343 | | | $ | — | | | $ | 15,343 | | | $ | (668 | ) | | $ | (14,619 | ) | | $ | — | | | $ | 56 | |
| (1) | Amounts include forward 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 purchased payable. |
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Additional Disclosure Related to Derivative Instruments
Fair values of derivative instruments as of September 30, 2016:
| | | | | | | | | | | | | | |
| | | | | 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* | | $ | 267 | | | Unrealized depreciation on futures contracts* | | $ | 171 | |
| Ivy Cundill Global Value Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 24 | | | Unrealized depreciation on forward foreign currency contracts | | | 79 | |
| Ivy Emerging Markets Equity Fund | | Equity | | | | | — | | | Written options at value | | | 1,968 | |
| | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 213 | | | Unrealized depreciation on forward foreign currency contracts | | | 362 | |
| Ivy European Opportunities Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 174 | | | | | | — | |
| Ivy Global Bond Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 22 | | | | | | — | |
| Ivy Global Equity Income Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 369 | | | | | | — | |
| Ivy Global Growth Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 53 | | | | | | — | |
| Ivy Global Income Allocation Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 286 | | | | | | — | |
| Ivy High Income Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 210 | | | | | | — | |
| Ivy International Core Equity Fund | | Foreign currency | | Unrealized appreciation on forward foreign currency contracts | | | 488 | | | | | | — | |
| Ivy Mid Cap Growth Fund | | Equity | | Investments in unaffiliated securities at value** | | | 4,053 | | | Written options at value | | | 15,435 | |
| Ivy Municipal Bond Fund | | Interest rate | | Unrealized appreciation on futures contracts* | | | 77 | | | | | | — | |
| Ivy Municipal High Income Fund | | Interest rate | | Unrealized appreciation on futures contracts* | | | 637 | | | | | | — | |
| Ivy Small Cap Growth Fund | | Equity | | Unrealized appreciation on swap agreements | | | 2,259 | | | | | | — | |
| Ivy Value Fund | | Equity | | | | | — | | | Written options at value | | | 87 | |
| * | 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, 2016. |
| ** | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
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| 200 | | SEMIANNUAL REPORT | | 2016 | | |
Amount of realized gain (loss) on derivatives recognized on the Statement of Operations for the period ended September 30, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 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 | | $ | — | | | $ | — | | | $ | (637 | ) | | $ | — | | | $ | — | | | $ | (637 | ) |
| Ivy Cundill Global Value Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | (2,174 | ) | | | (2,174 | ) |
| Ivy Emerging Markets Equity Fund | | Equity | | | (1,429) | | | | — | | | | — | | | | 2,518 | | | | — | | | | 1,089 | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | (274 | ) | | | (274 | ) |
| Ivy European Opportunities Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 1,896 | | | | 1,896 | |
| Ivy Global Bond Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 211 | | | | 211 | |
| Ivy Global Equity Income Fund | | Equity | | | (2) | | | | — | | | | — | | | | — | | | | — | | | | (2) | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 2,501 | | | | 2,501 | |
| Ivy Global Growth Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | (330 | ) | | | (330 | ) |
| Ivy Global Income Allocation Fund | | Equity | | | 687 | | | | — | | | | — | | | | 483 | | | | — | | | | 1,170 | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 2,626 | | | | 2,626 | |
| Ivy High Income Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 145 | | | | 145 | |
| | | Interest Rate | | | — | | | | 1,269 | | | | — | | | | — | | | | — | | | | 1,269 | |
| Ivy International Core Equity Fund | | Equity | | | — | | | | — | | | | — | | | | (174) | | | | — | | | | (174) | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 32,258 | | | | 32,258 | |
| Ivy Mid Cap Growth Fund | | Equity | | | (11,267 | ) | | | — | | | | — | | | | (199 | ) | | | — | | | | (11,466 | ) |
| Ivy Municipal Bond Fund | | Interest rate | | | — | | | | — | | | | (48 | ) | | | — | | | | — | | | | (48 | ) |
| Ivy Municipal High Income Fund | | Interest rate | | | — | | | | — | | | | (400 | ) | | | — | | | | — | | | | (400 | ) |
| Ivy Small Cap Growth Fund | | Equity | | | — | | | | 2,998 | | | | — | | | | — | | | | — | | | | 2,998 | |
| Ivy Value Fund | | Equity | | | (68 | ) | | | — | | | | — | | | | 627 | | | | — | | | | 559 | |
| * | 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, 2016:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 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 | | $ | — | | | $ | — | | | $ | (5 | ) | | $ | — | | | $ | — | | | $ | (5 | ) |
| Ivy Cundill Global Value Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 1,616 | | | | 1,616 | |
| Ivy Emerging Markets Equity Fund | | Equity | | | (1,212) | | | | — | | | | — | | | | (1,448) | | | | — | | | | (2,660) | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | (546 | ) | | | (546 | ) |
| Ivy European Opportunities Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 147 | | | | 147 | |
| Ivy Global Bond Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 6 | | | | 6 | |
| Ivy Global Equity Income Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 448 | | | | 448 | |
| Ivy Global Growth Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 53 | | | | 53 | |
| Ivy Global Income Allocation Fund | | Equity | | | (247) | | | | — | | | | — | | | | (337) | | | | — | | | | 584 | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 374 | | | | 374 | |
| Ivy High Income Fund | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 282 | | | | 282 | |
| | | Interest Rate | | | — | | | | (107) | | | | — | | | | — | | | | — | | | | (107) | |
| Ivy International Core Equity Fund | | Equity | | | — | | | | — | | | | — | | | | 126 | | | | — | | | | 126 | |
| | | Foreign currency | | | — | | | | — | | | | — | | | | — | | | | 2,364 | | | | 2,364 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 201 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 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 Mid Cap Growth Fund | | Equity | | $ | 6,104 | | | $ | — | | | $ | — | | | $ | (2,107 | ) | | $ | — | | | $ | 3,997 | |
| Ivy Municipal Bond Fund | | Interest rate | | | — | | | | — | | | | 77 | | | | — | | | | — | | | | 77 | |
| Ivy Municipal High Income Fund | | Interest rate | | | — | | | | — | | | | 637 | | | | — | | | | — | | | | 637 | |
| Ivy Small Cap Growth Fund | | Equity | | | — | | | | 3,125 | | | | — | | | | — | | | | — | | | | 3,125 | |
| Ivy Value Fund | | Equity | | | — | | | | — | | | | — | | | | 557 | | | | — | | | | 557 | |
| * | Purchased options are reported as investments in unaffiliated securities and are reflected on the accompanying Schedule of Investments. |
During the period ended September 30, 2016, the average derivative volume was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Forward foreign
currency contracts(1) | | | Long futures
contracts(1) | | | Short futures
contracts(1) | | | Swap
agreements(2) | | | Purchased
options(1) | | | Written
options(1) | |
Ivy Bond Fund | | $ | — | | | $ | 27,297 | | | $ | 28,051 | | | $ | — | | | $ | — | | | $ | — | |
Ivy Cundill Global Value Fund | | | 473 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Emerging Markets Equity Fund | | | 164 | | | | — | | | | — | | | | — | | | | 658 | | | | 2,084 | |
Ivy European Opportunities Fund | | | 226 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Bond Fund | | | 32 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Equity Income Fund | | | 340 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Growth Fund | | | 7 | | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Income Allocation Fund | | | 354 | | | | — | | | | — | | | | — | | | | 267 | | | | 42 | |
Ivy High Income Fund | | | 115 | | | | — | | | | — | | | | 9,000 | | | | — | | | | — | |
Ivy International Core Equity Fund | | | 2,680 | | | | — | | | | — | | | | — | | | | — | | | | 40 | |
Ivy Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | 1,439 | | | | 12,928 | |
Ivy Municipal Bond Fund | | | — | | | | — | | | | 2,788 | | | | — | | | | — | | | | — | |
Ivy Municipal High Income Fund | | | — | | | | — | | | | 23,692 | | | | — | | | | — | | | | — | |
Ivy Small Cap Growth Fund | | | — | | | | — | | | | — | | | | 25,743 | | | | — | | | | — | |
Ivy Value Fund | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 486 | |
| (1) | Average value outstanding during the period. |
| (2) | Average notional amount outstanding during the period. |
| 5. | | WRITTEN OPTION ACTIVITY ($ amounts in thousands) |
Transactions in written options were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | Outstanding
at 3-31-16 | | | Options
written | | | Options
closed | | | Options
exercised | | | Options
expired | | | Outstanding
at 9-30-16 | |
Ivy Emerging Markets Equity Fund | |
Number of Contracts | | | 34,037 | | | | 2,333,677 | | | | (2,348,102 | ) | | | — | | | | (17,612 | ) | | | 2,000 | |
Premium Received | | $ | 4,546 | | | $ | 4,874 | | | $ | (5,561 | ) | | $ | — | | | $ | (1,849 | ) | | $ | 2,010 | |
| | | | | | |
Ivy Global Equity Income Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | N/A | | | | 250 | | | | — | | | | (250 | ) | | | — | | | | N/A | |
Premium Received | | | N/A | | | $ | 1,162 | | | $ | — | | | $ | (1,162 | ) | | $ | — | | | | N/A | |
| | | | | | |
Ivy Global Income Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 4,900 | | | | 2,850 | | | | (4,900 | ) | | | (350 | ) | | | (2,500 | ) | | | N/A | |
Premium Received | | $ | 523 | | | $ | 1,674 | | | $ | (523 | ) | | $ | (1,627 | ) | | $ | (47 | ) | | | N/A | |
| | | | | | |
Ivy International Core Equity Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 876,000 | | | | — | | | | (876,000 | ) | | | — | | | | — | | | | N/A | |
Premium Received | | $ | 155 | | | $ | — | | | $ | (155 | ) | | $ | — | | | $ | — | | | | N/A | |
| | | | | | |
Ivy Mid Cap Growth Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 3,093 | | | | 35,807 | | | | (17,767 | ) | | | — | | | | (9,113 | ) | | | 12,020 | |
Premium Received | | $ | 8,982 | | | $ | 24,667 | | | $ | (18,976 | ) | | $ | — | | | $ | (1,529 | ) | | $ | 13,144 | |
| | | | | | |
Ivy Value Fund | | | | | | | | | | | | | | | | | | | | | | | | |
Number of Contracts | | | 3,353 | | | | 6,977 | | | | (1,223 | ) | | | (2,980 | ) | | | (4,674 | ) | | | 1,453 | |
Premium Received | | $ | 1,001 | | | $ | 1,004 | | | $ | (527 | ) | | $ | (734 | ) | | $ | (620 | ) | | $ | 124 | |
| | | | | | |
| 202 | | SEMIANNUAL REPORT | | 2016 | | |
| 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.
See the table below for details regarding the structure, incorporation and relationship as of September 30, 2016 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 | | | $ | 593,107 | | | $ | 349 | | | | 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 | | | $6,000 to
$10,000M | | | $10,000 to
$15,000M | | | $15,000 to
$20,000M | | | Over
$20,000M | |
Ivy Bond Fund | | | 0.525 | % | | | 0.525 | % | | | 0.500 | % | | | 0.450 | % | | | 0.400 | % | | | 0.400 | % | | | 0.400 | % | | | 0.395 | % | | | 0.395 | % | | | 0.390 | % | | | 0.390 | % | | | 0.390 | % |
Ivy Core Equity Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.525 | | | | 0.500 | | | | 0.490 | | | | 0.490 | | | | 0.490 | |
Ivy Cundill Global Value Fund | | | 1.000 | | | | 1.000 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.700 | | | | 0.700 | | | | 0.700 | |
Ivy Dividend Opportunities Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.540 | | | | 0.540 | | | | 0.530 | | | | 0.530 | | | | 0.530 | |
Ivy Emerging Markets Equity Fund | | | 1.000 | | | | 1.000 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.755 | | | | 0.755 | | | | 0.750 | | | | 0.750 | | | | 0.750 | |
Ivy European Opportunities Fund | | | 0.900 | | | | 0.850 | | | | 0.750 | | | | 0.750 | | | | 0.750 | | | | 0.740 | | | | 0.740 | | | | 0.720 | | | | 0.720 | | | | 0.710 | | | | 0.710 | | | | 0.710 | |
Ivy Global Bond Fund | | | 0.625 | | | | 0.625 | | | | 0.600 | | | | 0.550 | | | | 0.500 | | | | 0.500 | | | | 0.500 | | | | 0.490 | | | | 0.490 | | | | 0.480 | | | | 0.480 | | | | 0.480 | |
Ivy Global Equity Income Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.545 | | | | 0.545 | | | | 0.540 | | | | 0.540 | | | | 0.540 | |
Ivy Global Growth Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.700 | | | | 0.695 | | | | 0.695 | | | | 0.690 | | | | 0.690 | | | | 0.690 | |
Ivy Global Income Allocation Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.545 | | | | 0.545 | | | | 0.540 | | | | 0.540 | | | | 0.540 | |
Ivy High Income Fund | | | 0.625 | | | | 0.625 | | | | 0.600 | | | | 0.550 | | | | 0.500 | | | | 0.500 | | | | 0.500 | | | | 0.500 | | | | 0.500 | | | | 0.490 | | | | 0.490 | | | | 0.480 | |
Ivy International Core Equity Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.700 | | | | 0.690 | | | | 0.690 | | | | 0.680 | | | | 0.680 | | | | 0.680 | |
Ivy Large Cap Growth Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.545 | | | | 0.545 | | | | 0.540 | | | | 0.540 | | | | 0.540 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 | | | $6,000 to
$10,000M | | | $10,000 to
$15,000M | | | $15,000 to
$20,000M | | | Over
$20,000M | |
Ivy Limited-Term Bond Fund | | | 0.500 | | | | 0.500 | | | | 0.450 | | | | 0.400 | | | | 0.350 | | | | 0.350 | | | | 0.350 | | | | 0.340 | | | | 0.340 | | | | 0.330 | | | | 0.330 | | | | 0.330 | |
Ivy Managed International Opportunities Fund | | | 0.050 | | | | 0.050 | | | | 0.050 | | | | 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 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.800 | | | | 0.800 | |
Ivy Mid Cap Growth Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.700 | | | | 0.670 | | | | 0.670 | |
Ivy Mid Cap Income Opportunities Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.700 | | | | 0.670 | | | | 0.670 | |
Ivy Money Market Fund | | | 0.350 | | | | 0.350 | | | | 0.350 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | | | | 0.300 | |
Ivy Municipal Bond Fund | | | 0.525 | | | | 0.525 | | | | 0.500 | | | | 0.450 | | | | 0.400 | | | | 0.400 | | | | 0.400 | | | | 0.395 | | | | 0.395 | | | | 0.390 | | | | 0.385 | | | | 0.385 | |
Ivy Municipal High Income Fund | | | 0.525 | | | | 0.525 | | | | 0.500 | | | | 0.450 | | | | 0.400 | | | | 0.400 | | | | 0.400 | | | | 0.395 | | | | 0.395 | | | | 0.390 | | | | 0.385 | | | | 0.385 | |
Ivy Small Cap Growth Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.720 | | | | 0.720 | | | | 0.720 | |
Ivy Small Cap Value Fund | | | 0.850 | | | | 0.850 | | | | 0.850 | | | | 0.830 | | | | 0.830 | | | | 0.800 | | | | 0.760 | | | | 0.730 | | | | 0.730 | | | | 0.720 | | | | 0.720 | | | | 0.720 | |
Ivy Tax-Managed Equity Fund | | | 0.650 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.600 | | | | 0.550 | | | | 0.500 | | | | 0.495 | | | | 0.495 | | | | 0.490 | | | | 0.490 | | | | 0.490 | |
Ivy Value Fund | | | 0.700 | | | | 0.700 | | | | 0.700 | | | | 0.650 | | | | 0.650 | | | | 0.600 | | | | 0.550 | | | | 0.545 | | | | 0.545 | | | | 0.540 | | | | 0.540 | | | | 0.540 | |
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, 2016.
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 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 applicable costs 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.
| | | | | | |
| 204 | | SEMIANNUAL REPORT | | 2016 | | |
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.
Each Fund also pays WISC a monthly administrative 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. 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. 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. The Fund will reimburse WISC for such costs if the annual rate of the third-party per account charges for a Fund are less than or equal to $12.00 per account or an annual fee of 0.14 of 1% that is based on average daily net assets.
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 (up to $18.00 per account), or a fixed rate fee (up to an annual fee of 0.20 of 1% that is based on average daily net assets), 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 Distributors, Inc. (“IDI”) 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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 IDI 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, IDI 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
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 205 | |
Class B, Class C or certain Class A and Class E shares and is paid to IDI. During the period ended September 30, 2016, IDI 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 | | $ | 115 | | | $ | 4 | | | $ | 6 | | | $ | 2 | | | $ | — | | | $ | 109 | |
Ivy Core Equity Fund | | | 132 | | | | 2 | | | | 9 | | | | 3 | | | | — | | | | 125 | |
Ivy Cundill Global Value Fund | | | 26 | | | | — | * | | | 1 | | | | — | * | | | — | | | | 25 | |
Ivy Dividend Opportunities Fund | | | 61 | | | | — | * | | | 6 | | | | 2 | | | | — | | | | 53 | |
Ivy Emerging Markets Equity Fund | | | 95 | | | | — | * | | | 3 | | | | 2 | | | | — | | | | 105 | |
Ivy European Opportunities Fund | | | 30 | | | | 1 | | | | — | * | | | 3 | | | | — | | | | 26 | |
Ivy Global Bond Fund | | | 12 | | | | 1 | | | | 5 | | | | 2 | | | | N/A | | | | 14 | |
Ivy Global Equity Income Fund | | | 51 | | | | — | * | | | 1 | | | | 2 | | | | N/A | | | | 52 | |
Ivy Global Growth Fund | | | 36 | | | | — | * | | | 2 | | | | 1 | | | | — | | | | 36 | |
Ivy Global Income Allocation Fund | | | 78 | | | | 2 | | | | 8 | | | | 3 | | | | — | | | | 78 | |
Ivy High Income Fund | | | 601 | | | | 4 | | | | 92 | | | | 45 | | | | — | | | | 717 | |
Ivy International Core Equity Fund | | | 183 | | | | 3 | | | | 6 | | | | 28 | | | | — | | | | 264 | |
Ivy Large Cap Growth Fund | | | 263 | | | | 10 | | | | 8 | | | | 4 | | | | — | | | | 259 | |
Ivy Limited-Term Bond Fund | | | 588 | | | | 30 | | | | 21 | | | | 5 | | | | — | | | | 595 | |
Ivy Managed International Opportunities Fund | | | 30 | | | | — | * | | | — | * | | | — | * | | | — | | | | 28 | |
Ivy Micro Cap Growth Fund | | | 49 | | | | — | | | | 1 | | | | 1 | | | | N/A | | | | 42 | |
Ivy Mid Cap Growth Fund | | | 118 | | | | 1 | | | | 16 | | | | 12 | | | | — | | | | 136 | |
Ivy Mid Cap Income Opportunities Fund | | | 165 | | | | 1 | | | | N/A | | | | — | * | | | — | | | | 166 | |
Ivy Money Market Fund | | | — | | | | 2 | | | | 6 | | | | 3 | | | | — | | | | — | |
Ivy Municipal Bond Fund | | | 46 | | | | 1 | | | | 1 | | | | 1 | | | | N/A | | | | 48 | |
Ivy Municipal High Income Fund | | | 110 | | | | 1 | | | | 14 | | | | 5 | | | | N/A | | | | 167 | |
Ivy Small Cap Growth Fund | | | 87 | | | | 1 | | | | 5 | | | | 1 | | | | — | | | | 88 | |
Ivy Small Cap Value Fund | | | 75 | | | | — | * | | | 1 | | | | — | * | | | — | | | | 77 | |
Ivy Tax-Managed Equity Fund | | | 23 | | | | 6 | | | | — | * | | | 1 | | | | N/A | | | | 26 | |
Ivy Value Fund | | | 30 | | | | 1 | | | | 2 | | | | 1 | | | | — | | | | 27 | |
| * | Not shown due to rounding. |
| (1) | IDI 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, 2016 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 | | 7-31-2017 | | 1.05% | | | $ | 4 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Core Equity Fund | | Class A | | Contractual | | 1-11-2013 | | 7-31-2017 | | 1.15% | | | $ | 119 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.13%(5) | | | $ | 12 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class I | | Contractual | | 1-11-2013 | | 7-31-2017 | | 0.84% | | | $ | 112 | | | Shareholder Servicing |
| | Class Y | | Contractual | | 1-11-2013 | | 7-31-2017 | | 0.84% | | | $ | 155 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
| | | | | | |
| 206 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | |
| Fund Name | | Share
Class
Name | | Type of
Expense
Limit | | Commencement
Date | | End
Date | | Expense
Limit | | Amount of
Expense Waiver/
Reimbursement | | Expense
Reduced |
Ivy Cundill Global Value Fund | | All Classes | | Contractual | | 12-3-2012 | | 7-31-2017 | | N/A | | | $ | 145 | (1) | | Investment Management Fee |
| | All Classes | | Voluntary | | N/A | | N/A | | Reduction of Investment Management Fee | | | $ | 21 | (2) | | Investment Management Fee |
| | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.31%(5) | | | $ | 2 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Dividend Opportunities Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.13%(5) | | | $ | 10 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Emerging Markets Equity Fund | | Class A | | Contractual | | 3-17-2014 | | 7-31-2017 | | 1.58%(5) | | | $ | 261 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class B | | Contractual | | 3-17-2014 | | 7-31-2017 | | 2.50% | | | $ | 7 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 3-17-2014 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy European Opportunities Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Global Bond Fund | | All Classes | | Contractual | | 6-2-2008 | | 7-31-2017 | | N/A | | | $ | 28 | (3) | | Investment Management Fee |
| | Class A | | Contractual | | 6-2-2008 | | 7-31-2017 | | 0.99% | | | $ | 150 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class B | | Contractual | | 6-2-2008 | | 7-31-2017 | | 1.74% | | | $ | 6 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class C | | Contractual | | 6-2-2008 | | 7-31-2017 | | 1.74% | | | $ | 18 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class I | | Contractual | | 6-2-2008 | | 7-31-2017 | | 0.74% | | | $ | 53 | | | Shareholder Servicing |
| | Class Y | | Contractual | | 6-2-2008 | | 7-31-2017 | | 0.99% | | | $ | 2 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Global Equity Income Fund | | Class A | | Contractual | | 6-4-2012 | | 7-31-2017 | | 1.30% | | | $ | 71 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class I | | Contractual | | 6-4-2012 | | 7-31-2017 | | 0.94% | | | $ | 55 | | | Shareholder Servicing |
| | Class Y | | Contractual | | 6-4-2012 | | 7-31-2017 | | 1.19% | | | $ | 1 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 6-4-2012 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Global Growth Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Global Income Allocation Fund | | Class E | | Contractual | | 6-4-2012 | | 7-31-2017 | | 1.33% | | | $ | 4 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class Y | | Contractual | | 6-4-2012 | | 7-31-2017 | | 1.17% | | | $ | — | * | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy High Income Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.19%(5) | | | $ | 5 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 207 | |
| | | | | | | | | | | | | | | | | |
| Fund Name | | Share
Class
Name | | Type of
Expense
Limit | | Commencement
Date | | End
Date | | Expense
Limit | | Amount of
Expense Waiver/
Reimbursement | | Expense
Reduced |
Ivy International Core Equity Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.31%(5) | | | $ | 9 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Large Cap Growth Fund | | Class A | | Contractual | | 6-1-2006 | | 7-31-2017 | | 1.15% | | | $ | 127 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.15% | | | $ | 13 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class I | | Contractual | | 6-13-2011 | | 7-31-2017 | | 0.88% | | | $ | 37 | | | Shareholder Servicing |
| | Class Y | | Contractual | | 6-1-2006 | | 7-31-2017 | | 1.06% | | | $ | 36 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Limited-Term Bond Fund | | Class E | | Contractual | | 8-1-2010 | | 7-31-2017 | | 0.98%(5) | | | $ | — | | | N/A |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | 1 | | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Managed International Opportunities Fund | | Class A | | Contractual | | 3-17-2014 | | 7-31-2017 | | 0.49% | | | $ | — | | | N/A |
| | Class B | | Contractual | | 3-17-2014 | | 7-31-2017 | | 1.40% | | | $ | 1 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class C | | Contractual | | 3-17-2014 | | 7-31-2017 | | 1.29% | | | $ | — | | | N/A |
| | Class E | | Contractual | | 3-17-2014 | | 7-31-2017 | | 0.39% | | | $ | — | | | N/A |
| | Class I | | Contractual | | 3-17-2014 | | 7-31-2017 | | 0.16% | | | $ | — | | | N/A |
| | Class R | | Contractual | | 3-17-2014 | | 7-31-2017 | | 0.72% | | | $ | — | | | N/A |
| | Class Y | | Contractual | | 3-17-2014 | | 7-31-2017 | | 0.38% | | | $ | — | * | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 3-17-2014 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Micro Cap Growth Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Mid Cap Growth Fund | | Class A | | Contractual | | 8-1-2014 | | 7-31-2017 | | 1.31% | | | $ | 186 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.30% | | | $ | 13 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed | | | $ | — | | | N/A |
Ivy Mid Cap Income Opportunities Fund | | All Classes | | Contractual | | 10-1-2014 | | 7-31-2017 | | N/A | | | $ | — | | | Investment Management Fee |
| | Class A | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.35% | | | $ | 50 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class C | | Contractual | | 10-1-2014 | | 7-31-2017 | | 2.07% | | | $ | 3 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class E | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.30% | | | $ | — | | | N/A |
| | Class I | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.05% | | | $ | 22 | | | Shareholder Servicing |
| | Class R | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.80% | | | $ | — | | | N/A |
| | Class R6 | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.05% | | | $ | — | | | N/A |
| | Class Y | | Contractual | | 10-1-2014 | | 7-31-2017 | | 1.35% | | | $ | 1 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 10-1-2014 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
| | | | | | |
| 208 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | |
| Fund Name | | Share
Class
Name | | Type of
Expense
Limit | | Commencement
Date | | End Date | | Expense
Limit | | Amount of
Expense Waiver/
Reimbursement | | Expense
Reduced |
Ivy Money Market Fund | | Class A | | Voluntary | | N/A | | N/A | | To maintain minimum yield(4) | | | $ | 51 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class B | | Voluntary | | N/A | | N/A | | To maintain minimum yield(4) | | | $ | 31 | | | 12b-1 Fees and/or Shareholder Servicing |
| | Class C | | Voluntary | | N/A | | N/A | | To maintain minimum yield(4) | | | $ | 197 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class E | | Voluntary | | N/A | | N/A | | To maintain minimum yield(4) | | | $ | 4 | | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Municipal Bond Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | * | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Municipal High Income Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | 7 | | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Small Cap Growth Fund | | Class E | | Contractual | | 8-1-2008 | | 7-31-2017 | | 1.43%(5) | | | $ | 9 | | | 12b-1 Fees and/or Shareholder Servicing |
| | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Small Cap Value Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
Ivy Tax-Managed Equity Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | * | | 12b-1 Fees and/or Shareholder Servicing |
Ivy Value Fund | | Class Y | | Contractual | | 8-1-2011 | | 7-31-2017 | | Not to exceed Class A | | | $ | — | | | N/A |
| * | Not shown due to rounding. |
| (1) | The Fund’s management fee is being reduced by 0.16% of average daily net assets. |
| (2) | The Fund’s management fee is being reduced by 0.02% of average daily net assets. |
| (3) | Due to Class A, Class B, Class C, Class E, Class I, Class R, Class R6, and/or Class Y contractual expense limits, investment management fees were waived for all share classes. |
| (4) | Minimum yield was 0.02% throughout the period of this report. |
| (5) | Reflects the lower expense limit which went into effect August 1, 2016. |
Any amounts due to the Funds as a reimbursement but not paid as of September 30, 2016 are shown as a receivable from affiliates on the Statement of Assets and Liabilities.
| 8. | | RELATED PARTY TRANSACTIONS |
Certain Funds are permitted to purchase or sell securities from or to certain affiliated funds under specified conditions outlined in procedures adopted by the Board. The procedures have been designed to ensure that any purchase or sale of securities by the Funds from or to another fund or portfolio that are, or could be, considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees or common officers, complies with Rule 17a-7 under the Act. Further, as defined under such procedures, each transaction is effected at the current market price. During the period ended September 30, 2016, the Funds below engaged in purchases and sales of securities pursuant to Rule 17a-7 under the Act (amounts in thousands):
| | | | | | | | |
| Fund | | Purchases | | | Sales | |
Ivy Global Bond Fund | | $ | — | | | $ | 1,533 | |
Ivy High Income Fund | | | — | | | | 95,979 | |
Ivy International Core Equity Fund | | | — | | | | 1,314 | |
Ivy Limited-Term Bond Fund | | | 8,676 | | | | — | |
| 9. | | 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
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 209 | |
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, 2016.
| 10. | | AFFILIATED COMPANY TRANSACTIONS (All amounts in thousands) |
A summary of the transactions in affiliated companies during the period ended September 30, 2016 follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Fund | | 3-31-16
Share
Balance | | | Purchases
at cost | | | Sales at
Cost | | | Realized
Gain/(Loss) | | | Distributions
Received | | | 9-30-16
Share
Balance | | | 9-30-16
Value | |
Ivy High Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Maritime Finance Co. Ltd. | | | 1,750 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | 1,750 | | | $ | 15,277 | |
| | | | | | | |
Ivy Municipal High Income Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
1155 Island Avenue LLC | | | 6,578 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | 6,578 | | | $ | 1,250 | |
| | | | | | | |
| | | 3-31-16
Principal Balance | | | | | | | | | | | | Interest
Received | | | 9-30-16
Principal
Balance | | | | |
1155 Island Avenue LLC, 10.000%, 12-11-24 | | $ | 395 | | | $ | — | | | $ | — | | | $ | — | | | $ | 19 | | | $ | 395 | | | $ | 395 | |
1155 Island Avenue LLC, 10.000%, 12-11-24 | | | 2,960 | | | | — | | | | — | | | | — | | | | 147 | | | | 2,960 | | | | 2,960 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | — | | | $ | 166 | | | | | | | $ | 4,605 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
| | | 3-31-16
Share
Balance | | | Purchases
at cost | | | Sales at
Cost | | | Realized
Gain/(Loss)(1) | | | Distributions
Received | | | 9-30-16
Share
Balance | | | 9-30-16
Value | |
Ivy Managed International Opportunities Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ivy Emerging Markets Equity Fund, Class I | | | 1,397 | | | $ | 59 | | | $ | 1,609 | | | $ | 1,382 | | | $ | — | | | | 1,204 | | | $ | 19,380 | |
Ivy European Opportunities Fund, Class I | | | 1,435 | | | | 2,317 | | | | 2,318 | | | | 719 | | | | — | | | | 1,410 | | | | 38,761 | |
Ivy Global Growth Fund, Class I | | | 1,276 | | | | 462 | | | | 3,059 | | | | 1,329 | | | | — | | | | 1,178 | | | | 48,451 | |
Ivy Global Income Allocation Fund, Class I | | | 2,201 | | | | 1,303 | | | | 3,216 | | | | 936 | | | | 738 | | | | 2,001 | | | | 29,070 | |
Ivy International Core Equity Fund, Class I | | | 3,620 | | | | 1,465 | | | | 3,635 | | | | 1,259 | | | | — | | | | 3,416 | | | | 58,141 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 5,625 | | | $ | 738 | | | | | | | $ | 193,803 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Included in Realized Gain/Loss, if applicable, are distributions from the capital gains from the underlying securities. |
11. 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, 2016, were as follows:
| | | | | | | | | | | | | | | | |
| | | Purchases | | | Sales | |
| | | U.S. Government | | | Other Issuers | | | U.S. Government | | | Other Issuers | |
Ivy Bond Fund | | $ | 605,255 | | | $ | 257,717 | | | $ | 659,683 | | | $ | 227,783 | |
Ivy Core Equity Fund | | | — | | | | 338,615 | | | | — | | | | 490,067 | |
Ivy Cundill Global Value Fund | | | — | | | | 84,559 | | | | — | | | | 106,720 | |
Ivy Dividend Opportunities Fund | | | — | | | | 74,358 | | | | — | | | | 79,993 | |
Ivy Emerging Markets Equity Fund | | | — | | | | 247,538 | | | | — | | | | 190,970 | |
Ivy European Opportunities Fund | | | — | | | | 87,751 | | | | — | | | | 111,020 | |
Ivy Global Bond Fund | | | — | | | | 7,458 | | | | 2,013 | | | | 20,223 | |
Ivy Global Equity Income Fund | | | — | | | | 190,861 | | | | — | | | | 133,819 | |
Ivy Global Growth Fund | | | — | | | | 117,748 | | | | — | | | | 152,920 | |
Ivy Global Income Allocation Fund | | | — | | | | 255,231 | | | | 2,957 | | | | 271,065 | |
Ivy High Income Fund | | | — | | | | 870,030 | | | | — | | | | 961,108 | |
Ivy International Core Equity Fund | | | — | | | | 1,506,935 | | | | — | | | | 1,669,313 | |
Ivy Large Cap Growth Fund | | | — | | | | 351,098 | | | | — | | | | 432,910 | |
Ivy Limited-Term Bond Fund | | | 121,350 | | | | 534,531 | | | | 165,048 | | | | 471,953 | |
Ivy Managed International Opportunities Fund | | | — | | | | 5,606 | | | | — | | | | 19,462 | |
Ivy Micro Cap Growth Fund | | | — | | | | 25,544 | | | | — | | | | 53,805 | |
Ivy Mid Cap Growth Fund | | | — | | | | 106,449 | | | | — | | | | 800,661 | |
| | | | | | |
| 210 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | |
| | | Purchases | | | Sales | |
| | | U.S. Government | | | Other Issuers | | | U.S. Government | | | Other Issuers | |
Ivy Mid Cap Income Opportunities Fund | | $ | — | | | $ | 119,097 | | | $ | — | | | $ | 36,928 | |
Ivy Money Market Fund | | | — | | | | — | | | | — | | | | — | |
Ivy Municipal Bond Fund | | | — | | | | 18,090 | | | | — | | | | 2,527 | |
Ivy Municipal High Income Fund | | | — | | | | 73,449 | | | | — | | | | 36,900 | |
Ivy Small Cap Growth Fund | | | — | | | | 174,548 | | | | — | | | | 280,820 | |
Ivy Small Cap Value Fund | | | — | | | | 270,954 | | | | — | | | | 242,102 | |
Ivy Tax-Managed Equity Fund | | | — | | | | 27,056 | | | | — | | | | 29,826 | |
Ivy Value Fund | | | — | | | | 86,471 | | | | — | | | | 84,836 | |
| 12. | | 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
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 6,502 | | | $ | 69,160 | | | | 23,299 | | | $ | 245,091 | | | | 3,020 | | | $ | 39,436 | | | | 11,640 | | | $ | 156,225 | |
Class B | | | 86 | | | | 924 | | | | 281 | | | | 2,936 | | | | 58 | | | | 649 | | | | 137 | | | | 1,546 | |
Class C | | | 628 | | | | 6,718 | | | | 1,574 | | | | 16,461 | | | | 485 | | | | 5,554 | | | | 1,662 | | | | 19,826 | |
Class E | | | 130 | | | | 1,394 | | | | 93 | | | | 969 | | | | 107 | | | | 1,403 | | | | 202 | | | | 2,753 | |
Class I | | | 48,217 | | | | 516,702 | | | | 1,085 | | | | 11,345 | | | | 17,071 | | | | 237,865 | | | | 3,045 | | | | 46,161 | |
Class R | | | 147 | | | | 1,567 | | | | 265 | | | | 2,758 | | | | 26 | | | | 332 | | | | 64 | | | | 866 | |
Class R6 | | | 60 | | | | 639 | | | | 42 | | | | 439 | | | | 122 | | | | 1,742 | | | | 11,043 | | | | 161,909 | |
Class Y | | | 265 | | | | 2,837 | | | | 240 | | | | 2,508 | | | | 547 | | | | 7,690 | | | | 3,556 | | | | 53,138 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 448 | | | | 4,776 | | | | 1,591 | | | | 16,732 | | | | — | | | | — | | | | 2,966 | | | | 38,712 | |
Class B | | | 4 | | | | 41 | | | | 7 | | | | 75 | | | | — | | | | — | | | | 57 | | | | 637 | |
Class C | | | 22 | | | | 239 | | | | 35 | | | | 371 | | | | — | | | | — | | | | 798 | | | | 9,173 | |
Class E | | | 5 | | | | 53 | | | | 8 | | | | 88 | | | | — | | | | — | | | | 54 | | | | 698 | |
Class I | | | 310 | | | | 3,362 | | | | 18 | | | | 184 | | | | — | | | | — | | | | 784 | | | | 11,279 | |
Class R | | | 3 | | | | 37 | | | | 1 | | | | 12 | | | | — | | | | — | | | | 8 | | | | 106 | |
Class R6 | | | 2 | | | | 24 | | | | 4 | | | | 36 | | | | — | | | | — | | | | 206 | | | | 2,965 | |
Class Y | | | 5 | | | | 53 | | | | 6 | | | | 64 | | | | — | | | | — | | | | 434 | | | | 6,089 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (51,513 | ) | | | (551,015 | ) | | | (22,504 | ) | | | (236,276 | ) | | | (23,294 | ) | | | (295,826 | ) | | | (14,467 | ) | | | (195,349 | ) |
Class B | | | (146 | ) | | | (1,571 | ) | | | (222 | ) | | | (2,331 | ) | | | (182 | ) | | | (2,037 | ) | | | (220 | ) | | | (2,543 | ) |
Class C | | | (607 | ) | | | (6,505 | ) | | | (1,019 | ) | | | (10,729 | ) | | | (1,522 | ) | | | (17,518 | ) | | | (3,585 | ) | | | (42,806 | ) |
Class E | | | (80 | ) | | | (862 | ) | | | (73 | ) | | | (769 | ) | | | (73 | ) | | | (960 | ) | | | (147 | ) | | | (1,988 | ) |
Class I | | | (4,384 | ) | | | (47,445 | ) | | | (456 | ) | | | (4,796 | ) | | | (3,287 | ) | | | (47,868 | ) | | | (6,558 | ) | | | (96,316 | ) |
Class R | | | (79 | ) | | | (853 | ) | | | (16 | ) | | | (163 | ) | | | (17 | ) | | | (224 | ) | | | (49 | ) | | | (644 | ) |
Class R6 | | | (46 | ) | | | (500 | ) | | | (20 | ) | | | (212 | ) | | | (3,251 | ) | | | (47,589 | ) | | | (910 | ) | | | (12,997 | ) |
Class Y | | | (61 | ) | | | (661 | ) | | | (205 | ) | | | (2,153 | ) | | | (2,644 | ) | | | (36,770 | ) | | | (2,612 | ) | | | (37,844 | ) |
Net increase (decrease) | | | (82 | ) | | $ | (886 | ) | | | 4,034 | | | $ | 42,640 | | | | (12,834 | ) | | $ | (154,121 | ) | | | 8,108 | | | $ | 121,596 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 211 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Cundill Global Value Fund | | | Ivy Dividend Opportunities Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 420 | | | $ | 6,082 | | | | 1,882 | | | $ | 29,068 | | | | 1,672 | | | $ | 29,292 | | | | 3,370 | | | $ | 61,029 | |
Class B | | | 1 | | | | 10 | | | | 4 | | | | 52 | | | | 40 | | | | 690 | | | | 42 | | | | 741 | |
Class C | | | 18 | | | | 250 | | | | 255 | | | | 3,443 | | | | 231 | | | | 4,023 | | | | 471 | | | | 8,150 | |
Class E | | | 1 | | | | 17 | | | | 8 | | | | 128 | | | | 38 | | | | 668 | | | | 41 | | | | 745 | |
Class I | | | 6,135 | | | | 85,843 | | | | 179 | | | | 2,806 | | | | 8,716 | | | | 150,439 | | | | 263 | | | | 4,757 | |
Class R | | | — | * | | | 2 | | | | 1 | | | | 11 | | | | 9 | | | | 154 | | | | 6 | | | | 104 | |
Class R6 | | | 7 | | | | 112 | | | | 5 | | | | 77 | | | | 91 | | | | 1,603 | | | | 18 | | | | 315 | |
Class Y | | | 7 | | | | 103 | | | | 97 | | | | 1,529 | | | | 21 | | | | 379 | | | | 72 | | | | 1,321 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 120 | | | | 1,767 | | | | 85 | | | | 1,485 | | | | 1,419 | | | | 24,638 | |
Class B | | | — | | | | — | | | | — | | | | — | | | | 1 | | | | 9 | | | | 37 | | | | 630 | |
Class C | | | — | | | | — | | | | 3 | | | | 43 | | | | 4 | | | | 75 | | | | 190 | | | | 3,257 | |
Class E | | | — | | | | — | | | | — | * | | | 7 | | | | 2 | | | | 37 | | | | 27 | | | | 459 | |
Class I | | | — | | | | — | | | | 4 | | | | 56 | | | | 36 | | | | 632 | | | | 62 | | | | 1,083 | |
Class R | | | — | | | | — | | | | — | * | | | — | * | | | — | * | | | — | * | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | 1 | | | | 19 | | | | 1 | | | | 17 | | | | 2 | | | | 25 | |
Class Y | | | — | | | | — | | | | 2 | | | | 33 | | | | 2 | | | | 44 | | | | 36 | | | | 633 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (7,601 | ) | | | (105,148 | ) | | | (6,051 | ) | | | (94,160 | ) | | | (9,687 | ) | | | (166,599 | ) | | | (5,019 | ) | | | (91,393 | ) |
Class B | | | (20 | ) | | | (269 | ) | | | (59 | ) | | | (832 | ) | | | (76 | ) | | | (1,307 | ) | | | (198 | ) | | | (3,524 | ) |
Class C | | | (182 | ) | | | (2,503 | ) | | | (352 | ) | | | (5,040 | ) | | | (446 | ) | | | (7,735 | ) | | | (862 | ) | | | (15,431 | ) |
Class E | | | (6 | ) | | | (85 | ) | | | (18 | ) | | | (285 | ) | | | (38 | ) | | | (675 | ) | | | (49 | ) | | | (879 | ) |
Class I | | | (697 | ) | | | (10,432 | ) | | | (193 | ) | | | (3,013 | ) | | | (882 | ) | | | (15,751 | ) | | | (223 | ) | | | (4,037 | ) |
Class R | | | — | * | | | — | * | | | (1 | ) | | | (17 | ) | | | (4 | ) | | | (67 | ) | | | — | * | | | (1 | ) |
Class R6 | | | (10 | ) | | | (150 | ) | | | (21 | ) | | | (312 | ) | | | (14 | ) | | | (251 | ) | | | (7 | ) | | | (130 | ) |
Class Y | | | (42 | ) | | | (622 | ) | | | (91 | ) | | | (1,443 | ) | | | (105 | ) | | | (1,853 | ) | | | (192 | ) | | | (3,558 | ) |
Net decrease | | | (1,969 | ) | | $ | (26,790 | ) | | | (4,225 | ) | | $ | (66,063 | ) | | | (303 | ) | | $ | (4,691 | ) | | | (494 | ) | | $ | (11,066 | ) |
| * | Not shown due to rounding. |
| | | | | | |
| 212 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Emerging Markets Equity Fund | | | Ivy European Opportunities Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 2,309 | | | $ | 32,711 | | | | 8,831 | | | $ | 131,784 | | | | 298 | | | $ | 7,864 | | | | 2,619 | | | $ | 74,855 | |
Class B | | | 27 | | | | 337 | | | | 50 | | | | 595 | | | | 1 | | | | 14 | | | | 8 | | | | 222 | |
Class C | | | 265 | | | | 3,333 | | | | 1,045 | | | | 13,754 | | | | 8 | | | | 211 | | | | 227 | | | | 6,249 | |
Class E | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class I | | | 11,656 | | | | 165,420 | | | | 12,674 | | | | 195,097 | | | | 2,870 | | | | 72,116 | | | | 1,086 | | | | 31,972 | |
Class R | | | 219 | | | | 3,101 | | | | 351 | | | | 4,898 | | | | — | * | | | 14 | | | | 6 | | | | 179 | |
Class R6 | | | 118 | | | | 1,713 | | | | 293 | | | | 4,234 | | | | 4 | | | | 101 | | | | 17 | | | | 485 | |
Class Y | | | 823 | | | | 12,006 | | | | 1,450 | | | | 23,215 | | | | 3 | | | | 93 | | | | 99 | | | | 3,011 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 248 | | | | 3,341 | | | | — | | | | — | | | | 21 | | | | 600 | |
Class B | | | — | | | | — | | | | 2 | | | | 26 | | | | — | | | | — | | | | — | | | | — | |
Class C | | | — | | | | — | | | | 16 | | | | 189 | | | | — | | | | — | | | | — | | | | — | |
Class E | | | — | | | | — | | | | — | * | | | 1 | | | | — | | | | — | | | | — | * | | | — | * |
Class I | | | — | | | | — | | | | 75 | | | | 1,033 | | | | — | | | | — | | | | 11 | | | | 311 | |
Class R | | | — | | | | — | | | | — | * | | | 4 | | | | — | | | | — | | | | — | * | | | — | * |
Class R6 | | | — | | | | — | | | | 5 | | | | 65 | | | | — | | | | — | | | | 1 | | | | 15 | |
Class Y | | | — | | | | — | | | | 5 | | | | 71 | | | | — | | | | — | | | | — | * | | | 5 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (12,107 | ) | | | (165,195 | ) | | | (9,794 | ) | | | (139,261 | ) | | | (3,587 | ) | | | (90,402 | ) | | | (1,469 | ) | | | (41,023 | ) |
Class B | | | (59 | ) | | | (699 | ) | | | (158 | ) | | | (1,893 | ) | | | (9 | ) | | | (218 | ) | | | (23 | ) | | | (627 | ) |
Class C | | | (432 | ) | | | (5,377 | ) | | | (822 | ) | | | (10,141 | ) | | | (97 | ) | | | (2,425 | ) | | | (128 | ) | | | (3,392 | ) |
Class E | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
Class I | | | (3,998 | ) | | | (59,683 | ) | | | (11,619 | ) | | | (174,048 | ) | | | (525 | ) | | | (14,031 | ) | | | (405 | ) | | | (11,483 | ) |
Class R | | | (82 | ) | | | (1,205 | ) | | | (42 | ) | | | (548 | ) | | | — | * | | | (6 | ) | | | (1 | ) | | | (17 | ) |
Class R6 | | | (119 | ) | | | (1,802 | ) | | | (155 | ) | | | (2,203 | ) | | | (17 | ) | | | (455 | ) | | | (21 | ) | | | (557 | ) |
Class Y | | | (272 | ) | | | (3,958 | ) | | | (1,337 | ) | | | (18,573 | ) | | | (9 | ) | | | (244 | ) | | | (128 | ) | | | (3,659 | ) |
Net increase (decrease) | | | (1,652 | ) | | $ | (19,298 | ) | | | 1,118 | | | $ | 31,640 | | | | (1,060 | ) | | $ | (27,368 | ) | | | 1,920 | | | $ | 57,146 | |
| * | Not shown due to rounding. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 213 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Global Bond Fund | | | Ivy Global Equity Income Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 1,036 | | | $ | 9,685 | | | | 5,031 | | | $ | 46,635 | | | | 3,782 | | | $ | 45,727 | | | | 6,756 | | | $ | 84,231 | |
Class B | | | 15 | | | | 142 | | | | 38 | | | | 348 | | | | 16 | | | | 194 | | | | 28 | | | | 342 | |
Class C | | | 105 | | | | 989 | | | | 401 | | | | 3,728 | | | | 119 | | | | 1,449 | | | | 488 | | | | 6,120 | |
Class I | | | 7,601 | | | | 71,047 | | | | 860 | | | | 8,063 | | | | 20,480 | | | | 238,772 | | | | 192 | | | | 2,330 | |
Class R | | | 12 | | | | 115 | | | | 9 | | | | 82 | | | | 1 | | | | 7 | | | | 10 | | | | 122 | |
Class R6 | | | 284 | | | | 2,653 | | | | 22 | | | | 204 | | | | 20 | | | | 249 | | | | 32 | | | | 400 | |
Class Y | | | 24 | | | | 230 | | | | 98 | | | | 927 | | | | 4 | | | | 55 | | | | 36 | | | | 441 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 89 | | | | 831 | | | | 437 | | | | 4,066 | | | | 356 | | | | 4,177 | | | | 1,215 | | | | 14,810 | |
Class B | | | 2 | | | | 14 | | | | 7 | | | | 61 | | | | 1 | | | | 13 | | | | 3 | | | | 30 | |
Class C | | | 9 | | | | 88 | | | | 43 | | | | 396 | | | | 13 | | | | 153 | | | | 35 | | | | 420 | |
Class I | | | 54 | | | | 509 | | | | 96 | | | | 895 | | | | 205 | | | | 2,457 | | | | 14 | | | | 172 | |
Class R | | | — | * | | | 2 | | | | 1 | | | | 5 | | | | — | * | | | 2 | | | | — | * | | | — | * |
Class R6 | | | 2 | | | | 19 | | | | 1 | | | | 4 | | | | 2 | | | | 28 | | | | 6 | | | | 70 | |
Class Y | | | 3 | | | | 24 | | | | 11 | | | | 102 | | | | 1 | | | | 6 | | | | 2 | | | | 28 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (9,308 | ) | | | (86,968 | ) | | | (9,393 | ) | | | (87,177 | ) | | | (18,629 | ) | | | (215,986 | ) | | | (6,131 | ) | | | (75,975 | ) |
Class B | | | (64 | ) | | | (599 | ) | | | (197 | ) | | | (1,858 | ) | | | (16 | ) | | | (190 | ) | | | (14 | ) | | | (168 | ) |
Class C | | | (449 | ) | | | (4,212 | ) | | | (1,441 | ) | | | (13,365 | ) | | | (220 | ) | | | (2,672 | ) | | | (343 | ) | | | (4,103 | ) |
Class I | | | (1,425 | ) | | | (13,440 | ) | | | (4,027 | ) | | | (37,203 | ) | | | (1,381 | ) | | | (16,770 | ) | | | (137 | ) | | | (1,672 | ) |
Class R | | | (4 | ) | | | (36 | ) | | | (6 | ) | | | (56 | ) | | | (2 | ) | | | (29 | ) | | | — | * | | | (2 | ) |
Class R6 | | | (51 | ) | | | (486 | ) | | | (4 | ) | | | (33 | ) | | | (8 | ) | | | (101 | ) | | | (47 | ) | | | (582 | ) |
Class Y | | | (34 | ) | | | (322 | ) | | | (368 | ) | | | (3,438 | ) | | | (24 | ) | | | (294 | ) | | | (18 | ) | | | (219 | ) |
Net increase (decrease) | | | (2,099 | ) | | $ | (19,715 | ) | | | (8,381 | ) | | $ | (77,614 | ) | | | 4,720 | | | $ | 57,247 | | | | 2,127 | | | $ | 26,795 | |
| * | Not shown due to rounding. |
| | | | | | |
| 214 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Global Growth Fund | | | Ivy Global Income Allocation Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 493 | | | $ | 19,413 | | | | 2,437 | | | $ | 99,367 | | | | 2,957 | | | $ | 41,844 | | | | 13,167 | | | $ | 191,276 | |
Class B | | | 3 | | | | 111 | | | | 18 | | | | 637 | | | | 20 | | | | 282 | | | | 57 | | | | 780 | |
Class C | | | 95 | | | | 3,246 | | | | 172 | | | | 6,157 | | | | 616 | | | | 8,679 | | | | 2,488 | | | | 35,063 | |
Class E | | | — | | | | — | | | | — | | | | — | | | | 19 | | | | 276 | | | | 41 | | | | 598 | |
Class I | | | 6,483 | | | | 247,649 | | | | 891 | | | | 37,653 | | | | 29,355 | | | | 404,659 | | | | 3,168 | | | | 46,828 | |
Class R | | | 14 | | | | 536 | | | | 43 | | | | 1,729 | | | | 1 | | | | 6 | | | | — | * | | | 4 | |
Class R6 | | | 167 | | | | 6,530 | | | | 13 | | | | 541 | | | | 11 | | | | 162 | | | | 26 | | | | 378 | |
Class Y | | | 80 | | | | 3,133 | | | | 334 | | | | 13,390 | | | | 6 | | | | 92 | | | | 69 | | | | 982 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 207 | | | | 8,411 | | | | 722 | | | | 10,063 | | | | 1,768 | | | | 25,448 | |
Class B | | | — | | | | — | | | | 2 | | | | 62 | | | | 5 | | | | 71 | | | | 9 | | | | 133 | |
Class C | | | — | | | | — | | | | 15 | | | | 515 | | | | 61 | | | | 838 | | | | 108 | | | | 1,527 | |
Class E | | | — | | | | — | | | | — | * | | | 3 | | | | 4 | | | | 61 | | | | 7 | | | | 108 | |
Class I | | | — | | | | — | | | | 45 | | | | 1,859 | | | | 375 | | | | 5,378 | | | | 157 | | | | 2,254 | |
Class R | | | — | | | | — | | | | 1 | | | | 32 | | | | — | * | | | — | * | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | 1 | | | | 60 | | | | 3 | | | | 38 | | | | 5 | | | | 70 | |
Class Y | | | — | | | | — | | | | 4 | | | | 160 | | | | 2 | | | | 29 | | | | 5 | | | | 68 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (7,094 | ) | | | (267,732 | ) | | | (2,616 | ) | | | (107,243 | ) | | | (32,667 | ) | | | (447,905 | ) | | | (12,751 | ) | | | (181,779 | ) |
Class B | | | (20 | ) | | | (672 | ) | | | (48 | ) | | | (1,722 | ) | | | (70 | ) | | | (973 | ) | | | (102 | ) | | | (1,445 | ) |
Class C | | | (118 | ) | | | (4,083 | ) | | | (159 | ) | | | (5,736 | ) | | | (774 | ) | | | (10,863 | ) | | | (2,116 | ) | | | (29,195 | ) |
Class E | | | — | | | | — | | | | — | | | | — | | | | (32 | ) | | | (455 | ) | | | (31 | ) | | | (438 | ) |
Class I | | | (920 | ) | | | (36,619 | ) | | | (764 | ) | | | (31,579 | ) | | | (2,994 | ) | | | (43,076 | ) | | | (1,986 | ) | | | (28,001 | ) |
Class R | | | (6 | ) | | | (241 | ) | | | (12 | ) | | | (474 | ) | | | — | * | | | (1 | ) | | | — | * | | | — | * |
Class R6 | | | (28 | ) | | | (1,103 | ) | | | (8 | ) | | | (319 | ) | | | (22 | ) | | | (317 | ) | | | (14 | ) | | | (206 | ) |
Class Y | | | (134 | ) | | | (5,294 | ) | | | (172 | ) | | | (7,182 | ) | | | (44 | ) | | | (625 | ) | | | (111 | ) | | | (1,600 | ) |
Net increase (decrease) | | | (985 | ) | | $ | (35,126 | ) | | | 404 | | | $ | 16,321 | | | | (2,446 | ) | | $ | (31,737 | ) | | | 3,964 | | | $ | 62,853 | |
| * | Not shown due to rounding. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 215 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy High Income Fund | | | Ivy International Core Equity Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 29,830 | | | $ | 214,019 | | | | 78,014 | | | $ | 586,497 | | | | 8,399 | | | $ | 136,012 | | | | 40,471 | | | $ | 696,382 | |
Class B | | | 272 | | | | 1,961 | | | | 445 | | | | 3,270 | | | | 74 | | | | 1,085 | | | | 157 | | | | 2,413 | |
Class C | | | 9,519 | | | | 68,422 | | | | 24,085 | | | | 181,242 | | | | 1,491 | | | | 21,574 | | | | 10,221 | | | | 159,550 | |
Class E | | | 191 | | | | 1,375 | | | | 228 | | | | 1,704 | | | | 30 | | | | 487 | | | | 98 | | | | 1,695 | |
Class I | | | 101,694 | | | | 726,721 | | | | 97,027 | | | | 721,563 | | | | 70,276 | | | | 1,106,636 | | | | 76,156 | | | | 1,300,207 | |
Class R | | | 957 | | | | 6,884 | | | | 2,923 | | | | 22,122 | | | | 638 | | | | 10,312 | | | | 1,464 | | | | 25,019 | |
Class R6 | | | 936 | | | | 6,768 | | | | 7,573 | | | | 55,816 | | | | 6,072 | | | | 99,369 | | | | 17,878 | | | | 307,722 | |
Class Y | | | 10,125 | | | | 72,579 | | | | 25,565 | | | | 191,403 | | | | 5,286 | | | | 85,934 | | | | 17,363 | | | | 293,941 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 7,523 | | | | 54,256 | | | | 22,497 | | | | 168,026 | | | | — | | | | — | | | | 739 | | | | 12,239 | |
Class B | | | 316 | | | | 2,280 | | | | 769 | | | | 5,736 | | | | — | | | | — | | | | 1 | | | | 15 | |
Class C | | | 3,990 | | | | 28,812 | | | | 9,665 | | | | 72,161 | | | | — | | | | — | | | | 42 | | | | 630 | |
Class E | | | 45 | | | | 329 | | | | 89 | | | | 658 | | | | — | | | | — | | | | 2 | | | | 34 | |
Class I | | | 6,576 | | | | 47,621 | | | | 15,391 | | | | 115,649 | | | | — | | | | — | | | | 1,035 | | | | 17,216 | |
Class R | | | 317 | | | | 2,290 | | | | 574 | | | | 4,247 | | | | — | | | | — | | | | 8 | | | | 130 | |
Class R6 | | | 272 | | | | 1,959 | | | | 345 | | | | 2,473 | | | | — | | | | — | | | | 143 | | | | 2,391 | |
Class Y | | | 1,682 | | | | 12,145 | | | | 4,317 | | | | 32,379 | | | | — | | | | — | | | | 259 | | | | 4,320 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (114,652 | ) | | | (818,878 | ) | | | (191,909 | ) | | | (1,411,639 | ) | | | (59,581 | ) | | | (923,438 | ) | | | (22,721 | ) | | | (381,922 | ) |
Class B | | | (1,447 | ) | | | (10,419 | ) | | | (5,530 | ) | | | (40,731 | ) | | | (133 | ) | | | (1,921 | ) | | | (290 | ) | | | (4,357 | ) |
Class C | | | (24,079 | ) | | | (173,308 | ) | | | (85,521 | ) | | | (632,034 | ) | | | (3,422 | ) | | | (49,615 | ) | | | (3,016 | ) | | | (44,667 | ) |
Class E | | | (173 | ) | | | (1,248 | ) | | | (368 | ) | | | (2,717 | ) | | | (41 | ) | | | (683 | ) | | | (46 | ) | | | (775 | ) |
Class I | | | (61,411 | ) | | | (442,244 | ) | | | (241,309 | ) | | | (1,787,156 | ) | | | (28,075 | ) | | | (460,289 | ) | | | (34,754 | ) | | | (574,949 | ) |
Class R | | | (989 | ) | | | (7,145 | ) | | | (1,679 | ) | | | (12,357 | ) | | | (240 | ) | | | (3,911 | ) | | | (287 | ) | | | (4,714 | ) |
Class R6 | | | (3,127 | ) | | | (22,400 | ) | | | (1,589 | ) | | | (11,717 | ) | | | (2,150 | ) | | | (35,379 | ) | | | (1,222 | ) | | | (20,416 | ) |
Class Y | | | (16,552 | ) | | | (119,206 | ) | | | (62,673 | ) | | | (471,947 | ) | | | (17,761 | ) | | | (297,269 | ) | | | (11,273 | ) | | | (192,331 | ) |
Net increase (decrease) | | | (48,185 | ) | | $ | (346,427 | ) | | | (301,071 | ) | | $ | (2,205,352 | ) | | | (19,137 | ) | | $ | (311,096 | ) | | | 92,428 | | | $ | 1,599,773 | |
| | | | | | |
| 216 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Large Cap Growth Fund | | | Ivy Limited-Term Bond Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 4,404 | | | $ | 79,041 | | | | 22,690 | | | $ | 422,491 | | | | 19,274 | | | $ | 210,096 | | | | 60,281 | | | $ | 651,914 | |
Class B | | | 93 | | | | 1,348 | | | | 316 | | | | 4,670 | | | | 181 | | | | 1,968 | | | | 492 | | | | 5,300 | |
Class C | | | 629 | | | | 9,688 | | | | 2,566 | | | | 41,121 | | | | 993 | | | | 10,847 | | | | 6,384 | | | | 69,015 | |
Class E | | | 55 | | | | 992 | | | | 216 | | | | 4,018 | | | | 146 | | | | 1,592 | | | | 165 | | | | 1,788 | |
Class I | | | 39,274 | | | | 706,517 | | | | 2,620 | | | | 50,301 | | | | 88,904 | | | | 973,067 | | | | 4,230 | | | | 45,749 | |
Class R | | | 86 | | | | 1,513 | | | | 397 | | | | 7,152 | | | | 33 | | | | 358 | | | | 45 | | | | 486 | |
Class R6 | | | 23 | | | | 426 | | | | 117 | | | | 2,226 | | | | 8,161 | | | | 89,046 | | | | 86 | | | | 930 | |
Class Y | | | 188 | | | | 3,462 | | | | 1,282 | | | | 23,505 | | | | 684 | | | | 7,481 | | | | 488 | | | | 5,279 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 3,824 | | | | 70,292 | | | | 750 | | | | 8,182 | | | | 1,895 | | | | 20,500 | |
Class B | | | — | | | | — | | | | 52 | | | | 764 | | | | 5 | | | | 50 | | | | 6 | | | | 63 | |
Class C | | | — | | | | — | | | | 343 | | | | 5,435 | | | | 43 | | | | 466 | | | | 63 | | | | 683 | |
Class E | | | — | | | | — | | | | 37 | | | | 682 | | | | 3 | | | | 37 | | | | 4 | | | | 48 | |
Class I | | | — | | | | — | | | | 839 | | | | 16,061 | | | | 419 | | | | 4,589 | | | | 57 | | | | 619 | |
Class R | | | — | | | | — | | | | 73 | | | | 1,300 | | | | — | * | | | 2 | | | | — | * | | | 4 | |
Class R6 | | | — | | | | — | | | | 21 | | | | 404 | | | | 47 | | | | 520 | | | | 4 | | | | 44 | |
Class Y | | | — | | | | — | | | | 389 | | | | 7,300 | | | | 13 | | | | 142 | | | | 21 | | | | 224 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (45,211 | ) | | | (782,442 | ) | | | (15,764 | ) | | | (290,567 | ) | | | (104,618 | ) | | | (1,144,066 | ) | | | (53,618 | ) | | | (580,153 | ) |
Class B | | | (162 | ) | | | (2,340 | ) | | | (369 | ) | | | (5,561 | ) | | | (282 | ) | | | (3,087 | ) | | | (475 | ) | | | (5,141 | ) |
Class C | | | (1,014 | ) | | | (15,750 | ) | | | (1,413 | ) | | | (22,339 | ) | | | (2,806 | ) | | | (30,691 | ) | | | (5,395 | ) | | | (58,403 | ) |
Class E | | | (80 | ) | | | (1,460 | ) | | | (68 | ) | | | (1,253 | ) | | | (70 | ) | | | (771 | ) | | | (124 | ) | | | (1,341 | ) |
Class I | | | (5,125 | ) | | | (97,693 | ) | | | (4,658 | ) | | | (89,023 | ) | | | (8,065 | ) | | | (88,378 | ) | | | (3,190 | ) | | | (34,508 | ) |
Class R | | | (161 | ) | | | (2,832 | ) | | | (551 | ) | | | (10,130 | ) | | | (48 | ) | | | (526 | ) | | | (18 | ) | | | (200 | ) |
Class R6 | | | (378 | ) | | | (6,962 | ) | | | (71 | ) | | | (1,336 | ) | | | (612 | ) | | | (6,705 | ) | | | (180 | ) | | | (1,950 | ) |
Class Y | | | (764 | ) | | | (14,060 | ) | | | (1,474 | ) | | | (27,657 | ) | | | (300 | ) | | | (3,281 | ) | | | (960 | ) | | | (10,390 | ) |
Net increase (decrease) | | | (8,143 | ) | | $ | (120,552 | ) | | | 11,414 | | | $ | 209,856 | | | | 2,855 | | | $ | 30,938 | | | | 10,261 | | | $ | 110,560 | |
| * | Not shown due to rounding. |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 217 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Managed International Opportunities Fund | | | Ivy Micro Cap Growth Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 770 | | | $ | 7,309 | | | | 3,639 | | | $ | 36,592 | | | | 490 | | | $ | 9,988 | | | | 1,695 | | | $ | 37,277 | |
Class B | | | 1 | | | | 6 | | | | 15 | | | | 156 | | | | 2 | | | | 44 | | | | 11 | | | | 228 | |
Class C | | | 45 | | | | 419 | | | | 109 | | | | 1,109 | | | | 23 | | | | 457 | | | | 85 | | | | 1,882 | |
Class E | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | 12,074 | | | | 110,605 | | | | 106 | | | | 1,063 | | | | 3,093 | | | | 63,257 | | | | 236 | | | | 5,407 | |
Class R | | | 2 | | | | 23 | | | | — | * | | | 2 | | | | 1 | | | | 29 | | | | 6 | | | | 128 | |
Class R6 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 21 | | | | 450 | | | | 46 | | | | 1,032 | |
Class Y | | | 4 | | | | 38 | | | | 67 | | | | 722 | | | | 8 | | | | 178 | | | | 13 | | | | 317 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 148 | | | | 1,431 | | | | — | | | | — | | | | 305 | | | | 6,384 | |
Class B | | | — | | | | — | | | | — | * | | | 1 | | | | — | | | | — | | | | 4 | | | | 72 | |
Class C | | | — | | | | — | | | | 1 | | | | 7 | | | | — | | | | — | | | | 18 | | | | 359 | |
Class E | | | — | | | | — | | | | — | * | | | 3 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | — | | | | — | | | | 1 | | | | 14 | | | | — | | | | — | | | | 25 | | | | 528 | |
Class R | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | * | | | 9 | |
Class R6 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | | | | 5 | | | | 99 | |
Class Y | | | — | | | | — | | | | 1 | | | | 6 | | | | — | | | | — | | | | 2 | | | | 44 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (13,209 | ) | | | (120,873 | ) | | | (5,441 | ) | | | (54,517 | ) | | | (3,970 | ) | | | (79,332 | ) | | | (2,857 | ) | | | (63,357 | ) |
Class B | | | (38 | ) | | | (352 | ) | | | (82 | ) | | | (800 | ) | | | (9 | ) | | | (172 | ) | | | (26 | ) | | | (521 | ) |
Class C | | | (83 | ) | | | (782 | ) | | | (122 | ) | | | (1,172 | ) | | | (70 | ) | | | (1,343 | ) | | | (157 | ) | | | (3,299 | ) |
Class E | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | (1,072 | ) | | | (10,531 | ) | | | (114 | ) | | | (1,138 | ) | | | (666 | ) | | | (14,713 | ) | | | (531 | ) | | | (12,299 | ) |
Class R | | | (1 | ) | | | (6 | ) | | | — | | | | — | | | | (8 | ) | | | (165 | ) | | | (3 | ) | | | (62 | ) |
Class R6 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (45 | ) | | | (961 | ) | | | (41 | ) | | | (857 | ) |
Class Y | | | (16 | ) | | | (152 | ) | | | (155 | ) | | | (1,622 | ) | | | (15 | ) | | | (354 | ) | | | (43 | ) | | | (994 | ) |
Net increase (decrease) | | | (1,523 | ) | | $ | (14,296 | ) | | | (1,827 | ) | | $ | (18,143 | ) | | | (1,145 | ) | | $ | (22,637 | ) | | | (1,207 | ) | | $ | (27,623 | ) |
| * | Not shown due to rounding. |
| | | | | | |
| 218 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Mid Cap Growth Fund | | | Ivy Mid Cap Income Opportunities Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 2,365 | | | $ | 46,333 | | | | 10,174 | | | $ | 216,107 | | | | 6,808 | | | $ | 77,748 | | | | 6,690 | | | $ | 70,300 | |
Class B | | | 54 | | | | 887 | | | | 121 | | | | 2,107 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class C | | | 570 | | | | 9,940 | | | | 3,205 | | | | 60,931 | | | | 692 | | | | 8,105 | | | | 207 | | | | 2,157 | |
Class E | | | 32 | | | | 625 | | | | 75 | | | | 1,556 | | | | 202 | | | | 2,449 | | | | — | | | | — | |
Class I | | | 14,637 | | | | 303,642 | | | | 25,264 | | | | 563,891 | | | | 9,111 | | | | 103,837 | | | | 119 | | | | 1,283 | |
Class R | | | 291 | | | | 5,638 | | | | 1,173 | | | | 24,509 | | | | 202 | | | | 2,443 | | | | — | | | | — | |
Class R6 | | | 1,626 | | | | 34,478 | | | | 4,973 | | | | 105,259 | | | | 261 | | | | 3,127 | | | | 38 | | | | 408 | |
Class Y | | | 1,392 | | | | 28,485 | | | | 6,442 | | | | 141,675 | | | | 822 | | | | 9,726 | | | | 148 | | | | 1,505 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 4,329 | | | | 82,637 | | | | 30 | | | | 346 | | | | 82 | | | | 845 | |
Class B | | | — | | | | — | | | | 129 | | | | 2,046 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class C | | | — | | | | — | | | | 1,552 | | | | 26,145 | | | | 1 | | | | 6 | | | | 1 | | | | 12 | |
Class E | | | — | | | | — | | | | 38 | | | | 705 | | | | — | | | | — | | | | — | | | | — | |
Class I | | | — | | | | — | | | | 9,144 | | | | 185,349 | | | | 32 | | | | 374 | | | | 1 | | | | 10 | |
Class R | | | — | | | | — | | | | 321 | | | | 6,036 | | | | — | | | | — | | | | — | | | | — | |
Class R6 | | | — | | | | — | | | | 253 | | | | 5,136 | | | | 1 | | | | 5 | | | | 1 | | | | 9 | |
Class Y | | | — | | | | — | | | | 2,116 | | | | 41,960 | | | | 1 | | | | 8 | | | | 2 | | | | 16 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (17,752 | ) | | | (345,661 | ) | | | (16,775 | ) | | | (344,854 | ) | | | (8,340 | ) | | | (93,925 | ) | | | (1,911 | ) | | | (19,748 | ) |
Class B | | | (142 | ) | | | (2,320 | ) | | | (282 | ) | | | (4,824 | ) | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class C | | | (2,963 | ) | | | (51,333 | ) | | | (5,373 | ) | | | (96,246 | ) | | | (227 | ) | | | (2,726 | ) | | | (71 | ) | | | (732 | ) |
Class E | | | (35 | ) | | | (671 | ) | | | (57 | ) | | | (1,121 | ) | | | (201 | ) | | | (2,429 | ) | | | — | | | | — | |
Class I | | | (22,043 | ) | | | (463,078 | ) | | | (82,134 | ) | | | (1,749,180 | ) | | | (1,598 | ) | | | (18,959 | ) | | | (155 | ) | | | (1,615 | ) |
Class R | | | (994 | ) | | | (19,318 | ) | | | (1,860 | ) | | | (38,728 | ) | | | (201 | ) | | | (2,423 | ) | | | — | | | | — | |
Class R6 | | | (1,479 | ) | | | (31,169 | ) | | | (2,486 | ) | | | (49,938 | ) | | | (239 | ) | | | (2,876 | ) | | | (10 | ) | | | (107 | ) |
Class Y | | | (7,571 | ) | | | (154,693 | ) | | | (13,715 | ) | | | (292,957 | ) | | | (337 | ) | | | (4,041 | ) | | | (70 | ) | | | (698 | ) |
Net decrease | | | (32,012 | ) | | $ | (638,215 | ) | | | (53,373 | ) | | $ | (1,111,799 | ) | | | 7,020 | | | $ | 80,795 | | | | 5,072 | | | $ | 53,645 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 219 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Money Market Fund | | | Ivy Municipal Bond Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 96,559 | | | $ | 96,559 | | | | 200,299 | | | $ | 200,299 | | | | 2,027 | | | $ | 24,819 | | | | 6,586 | | | $ | 79,089 | |
Class B | | | 1,090 | | | | 1,090 | | | | 6,630 | | | | 6,630 | | | | 25 | | | | 306 | | | | 67 | | | | 803 | |
Class C | | | 14,242 | | | | 14,242 | | | | 74,816 | | | | 74,816 | | | | 203 | | | | 2,481 | | | | 1,044 | | | | 12,558 | |
Class E | | | 2,542 | | | | 2,542 | | | | 4,778 | | | | 4,778 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 9,398 | | | | 115,688 | | | | 401 | | | | 4,822 | |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 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 | | | | N/A | | | | N/A | | | | 13 | | | | 163 | | | | 17 | | | | 202 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 14 | | | | 14 | | | | 27 | | | | 27 | | | | 98 | | | | 1,192 | | | | 271 | | | | 3,249 | |
Class B | | | — | | | | — | | | | 1 | | | | 1 | | | | 1 | | | | 12 | | | | 2 | | | | 24 | |
Class C | | | 4 | | | | 4 | | | | 7 | | | | 7 | | | | 15 | | | | 182 | | | | 28 | | | | 333 | |
Class E | | | 1 | | | | 1 | | | | 1 | | | | 1 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 54 | | | | 666 | | | | 11 | | | | 128 | |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 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 | | | | N/A | | | | N/A | | | | — | * | | | 4 | | | | — | * | | | 7 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (116,442 | ) | | | (116,442 | ) | | | (152,973 | ) | | | (152,973 | ) | | | (9,802 | ) | | | (120,612 | ) | | | (3,982 | ) | | | (47,689 | ) |
Class B | | | (2,924 | ) | | | (2,924 | ) | | | (4,587 | ) | | | (4,587 | ) | | | (26 | ) | | | (320 | ) | | | (56 | ) | | | (665 | ) |
Class C | | | (22,566 | ) | | | (22,566 | ) | | | (62,687 | ) | | | (62,687 | ) | | | (265 | ) | | | (3,247 | ) | | | (506 | ) | | | (6,075 | ) |
Class E | | | (2,486 | ) | | | (2,486 | ) | | | (3,388 | ) | | | (3,388 | ) | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (822 | ) | | | (10,088 | ) | | | (109 | ) | | | (1,304 | ) |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 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 | | | | N/A | | | | N/A | | | | (11 | ) | | | (142 | ) | | | (4 | ) | | | (48 | ) |
Net increase | | | (29,966 | ) | | $ | (29,966 | ) | | | 62,924 | | | $ | 62,924 | | | | 908 | | | $ | 11,104 | | | | 3,770 | | | $ | 45,434 | |
| * | Not shown due to rounding. |
| | | | | | |
| 220 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Municipal High Income Fund | | | Ivy Small Cap Growth Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 9,837 | | | $ | 52,669 | | | | 25,667 | | | $ | 135,057 | | | | 1,397 | | | $ | 21,601 | | | | 5,298 | | | $ | 89,117 | |
Class B | | | 78 | | | | 416 | | | | 199 | | | | 1,048 | | | | 26 | | | | 317 | | | | 43 | | | | 591 | |
Class C | | | 2,960 | | | | 15,813 | | | | 8,691 | | | | 45,804 | | | | 259 | | | | 3,417 | | | | 969 | | | | 14,100 | |
Class E | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 43 | | | | 680 | | | | 73 | | | | 1,236 | |
Class I | | | 31,574 | | | | 169,458 | | | | 33,698 | | | | 177,247 | | | | 6,332 | | | | 121,103 | | | | 2,453 | | | | 50,180 | |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 285 | | | | 4,411 | | | | 856 | | | | 14,412 | |
Class R6 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | 1,325 | | | | 25,016 | | | | 358 | | | | 7,264 | |
Class Y | | | 453 | | | | 2,426 | | | | 1,496 | | | | 7,875 | | | | 1,221 | | | | 23,176 | | | | 2,420 | | | | 47,994 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 1,135 | | | | 6,072 | | | | 2,451 | | | | 12,890 | | | | — | | | | — | | | | 2,951 | | | | 45,529 | |
Class B | | | 24 | | | | 129 | | | | 49 | | | | 256 | | | | — | | | | — | | | | 115 | | | | 1,393 | |
Class C | | | 528 | | | | 2,826 | | | | 1,011 | | | | 5,318 | | | | — | | | | — | | | | 1,939 | | | | 25,307 | |
Class E | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | | | | 53 | | | | 815 | |
Class I | | | 2,124 | | | | 11,381 | | | | 3,803 | | | | 19,997 | | | | — | | | | — | | | | 872 | | | | 16,860 | |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | | | | 339 | | | | 5,161 | |
Class R6 | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | — | | | | — | | | | 122 | | | | 2,371 | |
Class Y | | | 67 | | | | 358 | | | | 135 | | | | 708 | | | | — | | | | — | | | | 1,312 | | | | 24,207 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (25,169 | ) | | | (135,164 | ) | | | (25,405 | ) | | | (133,482 | ) | | | (9,502 | ) | | | (144,957 | ) | | | (6,796 | ) | | | (112,319 | ) |
Class B | | | (218 | ) | | | (1,165 | ) | | | (408 | ) | | | (2,144 | ) | | | (79 | ) | | | (959 | ) | | | (197 | ) | | | (2,566 | ) |
Class C | | | (5,619 | ) | | | (30,077 | ) | | | (9,790 | ) | | | (51,467 | ) | | | (1,580 | ) | | | (20,911 | ) | | | (2,358 | ) | | | (33,616 | ) |
Class E | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (34 | ) | | | (538 | ) | | | (46 | ) | | | (731 | ) |
Class I | | | (20,805 | ) | | | (111,389 | ) | | | (37,399 | ) | | | (196,480 | ) | | | (3,103 | ) | | | (60,200 | ) | | | (3,613 | ) | | | (72,765 | ) |
Class R | | | N/A | | | | N/A | | | | N/A | | | | N/A | | | | (445 | ) | | | (6,918 | ) | | | (760 | ) | | | (12,435 | ) |
Class R6 | | | N/A | | | | N/A | | | | N/A | �� | | | N/A | | | | (264 | ) | | | (5,194 | ) | | | (210 | ) | | | (4,275 | ) |
Class Y | | | (1,190 | ) | | | (6,367 | ) | | | (1,642 | ) | | | (8,614 | ) | | | (1,590 | ) | | | (29,759 | ) | | | (4,142 | ) | | | (82,260 | ) |
Net increase (decrease) | | | (4,221 | ) | | $ | (22,614 | ) | | | 2,556 | | | $ | 14,013 | | | | (5,709 | ) | | $ | (69,715 | ) | | | 2,051 | | | $ | 25,570 | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 221 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ivy Small Cap Value Fund | | | Ivy Tax-Managed Equity Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | 2,950 | | | $ | 46,137 | | | | 1,815 | | | $ | 28,296 | | | | 480 | | | $ | 9,145 | | | | 3,510 | | | $ | 68,310 | |
Class B | | | 55 | | | | 725 | | | | 9 | | | | 109 | | | | 6 | | | | 106 | | | | 25 | | | | 478 | |
Class C | | | 269 | | | | 3,754 | | | | 196 | | | | 2,695 | | | | 42 | | | | 771 | | | | 214 | | | | 3,999 | |
Class E | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | 6,277 | | | | 103,190 | | | | 283 | | | | 4,756 | | | | 3,720 | | | | 69,247 | | | | 211 | | | | 4,081 | |
Class R | | | 67 | | | | 1,040 | | | | 89 | | | | 1,395 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | 74 | | | | 1,247 | | | | 58 | | | | 951 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | 267 | | | | 4,449 | | | | 256 | | | | 4,274 | | | | 1 | | | | 20 | | | | 6 | | | | 124 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | — | | | | — | | | | 1,826 | | | | 25,741 | | | | — | | | | — | | | | 94 | | | | 1,840 | |
Class B | | | — | | | | — | | | | 31 | | | | 361 | | | | — | | | | — | | | | — | * | | | 5 | |
Class C | | | — | | | | — | | | | 163 | | | | 2,028 | | | | — | | | | — | | | | 4 | | | | 69 | |
Class E | | | — | | | | — | | | | 1 | | | | 18 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | — | | | | — | | | | 185 | | | | 2,797 | | | | — | | | | — | | | | 4 | | | | 73 | |
Class R | | | — | | | | — | | | | 20 | | | | 280 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | — | | | | — | | | | 28 | | | | 426 | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | — | | | | — | | | | 55 | | | | 807 | | | | — | | | | — | | | | — | * | | | 7 | |
Shares redeemed: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (6,944 | ) | | | (105,445 | ) | | | (3,934 | ) | | | (61,834 | ) | | | (4,194 | ) | | | (77,540 | ) | | | (1,522 | ) | | | (28,839 | ) |
Class B | | | (29 | ) | | | (365 | ) | | | (64 | ) | | | (834 | ) | | | (7 | ) | | | (132 | ) | | | (21 | ) | | | (392 | ) |
Class C | | | (137 | ) | | | (1,885 | ) | | | (372 | ) | | | (5,135 | ) | | | (57 | ) | | | (1,051 | ) | | | (44 | ) | | | (814 | ) |
Class E | | | — | | | | — | | | | — | | | | — | | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class I | | | (772 | ) | | | (13,291 | ) | | | (427 | ) | | | (6,960 | ) | | | (353 | ) | | | (6,907 | ) | | | (155 | ) | | | (2,960 | ) |
Class R | | | (19 | ) | | | (297 | ) | | | (37 | ) | | | (577 | ) | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class R6 | | | (50 | ) | | | (833 | ) | | | (31 | ) | | | (503 | ) | | | N/A | | | | N/A | | | | N/A | | | | N/A | |
Class Y | | | (79 | ) | | | (1,273 | ) | | | (354 | ) | | | (5,977 | ) | | | (5 | ) | | | (98 | ) | | | (20 | ) | | | (383 | ) |
Net increase (decrease) | | | 1,929 | | | $ | 37,153 | | | | (204 | ) | | $ | (6,886 | ) | | | (367 | ) | | $ | (6,439 | ) | | | 2,306 | | | $ | 45,598 | |
| * | Not shown due to rounding. |
| | | | | | |
| 222 | | SEMIANNUAL REPORT | | 2016 | | |
| | | | | | | | | | | | | | | | |
| | | Ivy Value Fund | |
| | | Six months
ended
9-30-16
(Unaudited) | | | Year ended
3-31-16 | |
| | | Shares | | | Value | | | Shares | | | Value | |
Shares issued from sale of shares: | | | | | | | | | | | | | | | | |
Class A | | | 883 | | | $ | 17,618 | | | | 2,974 | | | $ | 64,213 | |
Class B | | | 15 | | | | 273 | | | | 34 | | | | 693 | |
Class C | | | 53 | | | | 1,017 | | | | 293 | | | | 6,025 | |
Class E | | | — | | | | — | | | | — | | | | — | |
Class I | | | 7,361 | | | | 142,048 | | | | 125 | | | | 2,804 | |
Class R | | | — | * | | | 4 | | | | 1 | | | | 8 | |
Class R6 | | | 259 | | | | 5,097 | | | | 35 | | | | 770 | |
Class Y | | | 86 | | | | 1,768 | | | | 23 | | | | 495 | |
Shares issued in reinvestment of distributions to shareholders: | | | | | | | | | | | | | | | | |
Class A | | | 114 | | | | 2,224 | | | | 1,436 | | | | 29,148 | |
Class B | | | 1 | | | | 13 | | | | 19 | | | | 364 | |
Class C | | | 5 | | | | 101 | | | | 100 | | | | 1,969 | |
Class E | | | — | * | | | 2 | | | | 1 | | | | 18 | |
Class I | | | 26 | | | | 532 | | | | 43 | | | | 871 | |
Class R | | | — | * | | | — | * | | | — | * | | | 1 | |
Class R6 | | | 5 | | | | 92 | | | | 9 | | | | 177 | |
Class Y | | | — | * | | | 9 | | | | 3 | | | | 67 | |
Shares redeemed: | | | | | | | | | | | | | | | | |
Class A | | | (8,454 | ) | | | (163,346 | ) | | | (4,471 | ) | | | (99,830 | ) |
Class B | | | (42 | ) | | | (792 | ) | | | (83 | ) | | | (1,747 | ) |
Class C | | | (150 | ) | | | (2,905 | ) | | | (410 | ) | | | (8,681 | ) |
Class E | | | — | | | | — | | | | — | | | | — | |
Class I | | | (686 | ) | | | (14,010 | ) | | | (437 | ) | | | (10,011 | ) |
Class R | | | — | | | | — | | | | — | * | | | — | * |
Class R6 | | | (44 | ) | | | (905 | ) | | | (5 | ) | | | (102 | ) |
Class Y | | | (12 | ) | | | (231 | ) | | | (67 | ) | | | (1,551 | ) |
Net decrease | | | (580 | ) | | $ | (11,391 | ) | | | (377 | ) | | $ | (14,299 | ) |
| * | Not shown due to rounding. |
Bridge loan commitments may obligate a Fund to furnish temporary financing to a borrower until permanent financing can be arranged. 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. As of September 30, 2016, there were no outstanding bridge loan commitments.
| 14. | | FEDERAL INCOME TAX MATTERS ($ amounts in thousands) |
For Federal income tax purposes, cost of investments owned at September 30, 2016 and the related unrealized appreciation (depreciation) were as follows:
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Appreciation | | | Gross
Depreciation | | | Net
Unrealized
Appreciation
(Depreciation) | |
Ivy Bond Fund | | $ | 789,261 | | | $ | 25,063 | | | $ | 3,365 | | | $ | 21,698 | |
Ivy Core Equity Fund | | | 891,732 | | | | 179,249 | | | | 29,613 | | | | 149,636 | |
Ivy Cundill Global Value Fund | | | 184,156 | | | | 29,816 | | | | 14,289 | | | | 15,527 | |
Ivy Dividend Opportunities Fund | | | 306,497 | | | | 69,693 | | | | 3,830 | | | | 65,863 | |
Ivy Emerging Markets Equity Fund | | | 464,878 | | | | 133,578 | | | | 5,969 | | | | 127,609 | |
Ivy European Opportunities Fund | | | 190,715 | | | | 21,354 | | | | 9,555 | | | | 11,799 | |
Ivy Global Bond Fund | | | 177,030 | | | | 5,548 | | | | 15,148 | | | | (9,600 | ) |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 223 | |
| | | | | | | | | | | | | | | | |
| Fund | | Cost of
Investments | | | Gross
Appreciation | | | Gross
Depreciation | | | Net
Unrealized
Appreciation
(Depreciation) | |
Ivy Global Equity Income Fund | | $ | 343,624 | | | $ | 23,738 | | | $ | 8,233 | | | $ | 15,505 | |
Ivy Global Growth Fund | | | 413,535 | | | | 77,376 | | | | 8,648 | | | | 68,728 | |
Ivy Global Income Allocation Fund | | | 747,911 | | | | 32,981 | | | | 45,002 | | | | (12,021 | ) |
Ivy High Income Fund | | | 5,043,980 | | | | 130,325 | | | | 527,155 | | | | (396,830 | ) |
Ivy International Core Equity Fund | | | 4,392,032 | | | | 343,275 | | | | 233,580 | | | | 109,695 | |
Ivy Large Cap Growth Fund | | | 1,237,029 | | | | 523,163 | | | | 22,396 | | | | 500,767 | |
Ivy Limited-Term Bond Fund | | | 1,818,003 | | | | 25,513 | | | | 1,343 | | | | 24,170 | |
Ivy Managed International Opportunities Fund | | | 169,789 | | | | 24,315 | | | | — | | | | 24,315 | |
Ivy Micro Cap Growth Fund | | | 139,389 | | | | 38,239 | | | | 4,374 | | | | 33,865 | |
Ivy Mid Cap Growth Fund | | | 2,317,366 | | | | 635,275 | | | | 270,576 | | | | 364,699 | |
Ivy Mid Cap Income Opportunities Fund | | | 191,670 | | | | 21,400 | | | | 1,824 | | | | 19,576 | |
Ivy Money Market Fund | | | 194,842 | | | | — | | | | — | | | | — | |
Ivy Municipal Bond Fund | | | 222,616 | | | | 15,641 | | | | 78 | | | | 15,563 | |
Ivy Municipal High Income Fund | | | 1,274,116 | | | | 119,836 | | | | 56,037 | | | | 63,799 | |
Ivy Small Cap Growth Fund | | | 701,514 | | | | 270,096 | | | | 10,809 | | | | 259,287 | |
Ivy Small Cap Value Fund | | | 280,640 | | | | 46,684 | | | | 1,222 | | | | 45,462 | |
Ivy Tax-Managed Equity Fund | | | 95,093 | | | | 24,737 | | | | 2,712 | | | | 22,025 | |
Ivy Value Fund | | | 252,690 | | | | 36,251 | | | | 5,507 | | | | 30,744 | |
For Federal income tax purposes, the Funds’ distributed and undistributed earnings and profit for the year ended March 31, 2016 and the post-October and late-year ordinary activity were as follows:
| | | | | | | | | | | | | | | | | | | | |
| Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gains | | | Tax Return
of Capital | | | Post-
October
Capital
Losses
Deferred | | | Late-Year
Ordinary
Losses
Deferred | |
Ivy Bond Fund | | $ | 269 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Ivy Core Equity Fund | | | 2,721 | | | | 13,534 | | | | — | | | | 9,115 | | | | — | |
Ivy Cundill Global Value Fund | | | 316 | | | | — | | | | — | | | | — | | | | — | |
Ivy Dividend Opportunities Fund | | | 1,029 | | | | 2,949 | | | | — | | | | — | | | | — | �� |
Ivy Emerging Markets Equity Fund | | | — | | | | — | | | | — | | | | — | | | | 363 | |
Ivy European Opportunities Fund | | | 103 | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Bond Fund | | | 671 | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Equity Income Fund | | | 954 | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Growth Fund | | | — | | | | — | | | | — | | | | 5,347 | | | | 528 | |
Ivy Global Income Allocation Fund | | | 2,905 | | | | — | | | | — | | | | — | | | | — | |
Ivy High Income Fund | | | 4,123 | | | | — | | | | — | | | | — | | | | — | |
Ivy International Core Equity Fund | | | 14,862 | | | | — | | | | — | | | | — | | | | — | |
Ivy Large Cap Growth Fund | | | — | | | | 786 | | | | — | | | | — | | | | — | |
Ivy Limited-Term Bond Fund | | | 448 | | | | — | | | | — | | | | — | | | | — | |
Ivy Managed International Opportunities Fund | | | — | | | | — | | | | — | | | | — | | | | 140 | |
Ivy Micro Cap Growth Fund | | | — | | | | — | | | | — | | | | 9,486 | | | | 508 | |
Ivy Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | 11,659 | | | | 7,226 | |
Ivy Mid Cap Income Opportunities Fund | | | — | | | | — | | | | — | | | | — | | | | 54 | |
Ivy Money Market Fund | | | 24 | | | | — | | | | — | | | | — | | | | — | |
Ivy Municipal Bond Fund | | | 66 | | | | — | | | | — | | | | — | | | | — | |
Ivy Municipal High Income Fund | | | 480 | | | | — | | | | — | | | | — | | | | — | |
Ivy Small Cap Growth Fund | | | — | | | | 11,371 | | | | — | | | | — | | | | 8,983 | |
Ivy Small Cap Value Fund | | | — | | | | — | | | | — | | | | 1,830 | | | | — | |
Ivy Tax-Managed Equity Fund | | | — | | | | — | | | | — | | | | 213 | | | | 61 | |
Ivy Value Fund | | | 4,112 | | | | — | | | | — | | | | 5,013 | | | | — | |
Internal Revenue Code regulations permit each Fund to elect to defer into its next fiscal year capital losses and certain specified ordinary items incurred between each November 1 and the end of its fiscal year. Each Fund is also permitted to defer into its next fiscal certain ordinary losses that generated between each January 1 and the end of its fiscal year.
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| 224 | | SEMIANNUAL REPORT | | 2016 | | |
The tax character of dividends and distributions paid during the two fiscal years ended March 31, 2016 and 2015 were as follows:
| | | | | | | | | | | | | | | | |
| | | March 31, 2016 | | | March 31, 2015 | |
| Fund | | Distributed
Ordinary
Income(1) | | | Distributed
Long-Term
Capital Gains | | | Distributed
Ordinary
Income(1) | | | Distributed
Long-Term
Capital Gains | |
Ivy Bond Fund | | $ | 18,123 | | | $ | — | | | $ | 16,383 | | | $ | — | |
Ivy Core Equity Fund | | | 14,021 | | | | 62,572 | | | | 10,172 | | | | 70,493 | |
Ivy Cundill Global Value Fund | | | 1,992 | | | | — | | | | — | | | | ��� | |
Ivy Dividend Opportunities Fund | | | 3,493 | | | | 30,139 | | | | 8,347 | | | | 36,886 | |
Ivy Emerging Markets Equity Fund | | | 4,983 | | | | — | | | | 4,850 | | | | — | |
Ivy European Opportunities Fund | | | 948 | | | | — | | | | 3,277 | | | | — | |
Ivy Global Bond Fund | | | 6,423 | | | | — | | | | 9,676 | | | | — | |
Ivy Global Equity Income Fund | | | 9,054 | | | | 8,438 | | | | 8,517 | | | | 5,103 | |
Ivy Global Growth Fund | | | 573 | | | | 11,167 | | | | 499 | | | | 6,210 | |
Ivy Global Income Allocation Fund | | | 31,144 | | | | — | | | | 26,803 | | | | — | |
Ivy High Income Fund | | | 487,204 | | | | — | | | | 714,539 | | | | 102,306 | |
Ivy International Core Equity Fund | | | 42,519 | | | | — | | | | 96,423 | | | | 187,458 | |
Ivy Large Cap Growth Fund | | | — | | | | 109,373 | | | | — | | | | 110,293 | |
Ivy Limited-Term Bond Fund | | | 23,128 | | | | — | | | | 23,368 | | | | — | |
Ivy Managed International Opportunities Fund | | | 1,484 | | | | — | | | | 3,332 | | | | — | |
Ivy Micro Cap Growth Fund | | | — | | | | 7,628 | | | | 3,852 | | | | 9,502 | |
Ivy Mid Cap Growth Fund | | | 47,509 | | | | 339,017 | | | | 43,907 | | | | 430,721 | |
Ivy Mid Cap Income Opportunities Fund | | | 1,322 | | | | — | | | | 253 | | | | — | |
Ivy Money Market Fund | | | 38 | | | | — | | | | 35 | | | | — | |
Ivy Municipal Bond Fund | | | 4,224 | | | | — | | | | 3,922 | | | | — | |
Ivy Municipal High Income Fund | | | 53,839 | | | | — | | | | 55,643 | | | | — | |
Ivy Small Cap Growth Fund | | | 79 | | | | 130,985 | | | | — | | | | 67,691 | |
Ivy Small Cap Value Fund | | | — | | | | 33,901 | | | | 3,510 | | | | 25,999 | |
Ivy Tax-Managed Equity Fund | | | 350 | | | | 1,745 | | | | — | | | | 1,437 | |
Ivy Value Fund | | | 5,446 | | | | 28,458 | | | | 8,378 | | | | 16,969 | |
| (1) | Includes short-term capital gains distributed, if any. |
Dividends from net investment income and short-term capital gains are treated as ordinary income dividends for federal income tax purposes.
Accumulated capital losses represent net capital loss carryovers as of March 31, 2016 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, 2016:
| | | | | | | | | | | | | | | | | | | | |
| | | Pre-Enactment | | | Post-Enactment | |
| Fund | | 2017 | | | 2018 | | | 2019 | | | Short-
Term
Capital
Loss
Carryover | | | Long-
Term
Capital
Loss
Carryover | |
Ivy Bond Fund | | $ | 18,939 | | | $ | — | | | $ | — | | | $ | 184 | | | $ | 7,733 | |
Ivy Core Equity Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Cundill Global Value Fund | | | — | | | | 6,489 | | | | — | | | | 1,819 | | | | 4,070 | |
Ivy Dividend Opportunities Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Emerging Markets Equity Fund | | | — | | | | 606 | | | | — | | | | 112,894 | | | | — | |
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 225 | |
| | | | | | | | | | | | | | | | | | | | |
| | | Pre-Enactment | | | Post-Enactment | |
| Fund | | 2017 | | | 2018 | | | 2019 | | | Short-
Term
Capital
Loss
Carryover | | | Long-
Term
Capital
Loss
Carryover | |
Ivy European Opportunities Fund | | $ | — | | | $ | 115,739 | | | $ | — | | | $ | 13,346 | | | $ | 4,370 | |
Ivy Global Bond Fund | | | — | | | | — | | | | — | | | | 3,622 | | | | 7,341 | |
Ivy Global Equity Income Fund | | | — | | | | — | | | | — | | | | 14,916 | | | | 3,278 | |
Ivy Global Growth Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Global Income Allocation Fund | | | — | | | | 5,466 | | | | — | | | | 42,464 | | | | 15,667 | |
Ivy High Income Fund | | | — | | | | — | | | | — | | | | 52,939 | | | | 458,854 | |
Ivy International Core Equity Fund | | | — | | | | — | | | | — | | | | 166,514 | | | | 4,858 | |
Ivy Large Cap Growth Fund | | | 20,021 | | | | — | | | | — | | | | — | | | | — | |
Ivy Limited-Term Bond Fund | | | — | | | | — | | | | — | | | | 13,570 | | | | 8,876 | |
Ivy Managed International Opportunities Fund | | | 10,327 | | | | 6,481 | | | | 10,440 | | | | — | | | | — | |
Ivy Micro Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Mid Cap Growth Fund | | | — | | | | — | | | | — | | | | — | | | | — | |
Ivy Mid Cap Income Opportunities Fund | | | — | | | | — | | | | — | | | | 2,598 | | | | 804 | |
Ivy Money Market Fund | | | — | | | | — | | | | 7 | | | | — | | | | — | |
Ivy Municipal Bond Fund | | | 101 | | | | 84 | | | | 146 | | | | 185 | | | | 2,633 | |
Ivy Municipal High Income Fund | | | — | | | | — | | | | — | | | | 8,317 | | | | 6,648 | |
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 $14,641 for the period ending March 31, 2017 and $4,298 for the period ending from March 31, 2018 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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| 226 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| 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 8th and 9th, 2016, 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 (the “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); |
| • | | 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 |
| • | | Pictet Asset Management Limited and Pictet Asset Management (Singapore) Pte Ltd. (with respect to the Ivy Emerging Markets Local Currency Debt Fund) (each such subadviser referred to herein as a “Subadviser”). |
The Board’s Independent Trustees were assisted in their review by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel explained the factors that the Board should consider as part of its review of the various agreements, 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 Broadridge, Inc. (“Broadridge”) 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 2016. 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 at the August 9, 2016 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 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 took note of the caps that management previously had agreed to on shareholder servicing costs. The Board also 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
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 227 | |
receives any additional direct or indirect benefits that would preclude the Board from approving the continuation of the Management 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 Board considered the fact that as a Fund’s assets have grown, the expenses of that Fund generally have fallen, although the Board took into account that the overall assets of the Funds have fallen during the prior year.
Performance of the Funds and Costs of Services Provided
The Board considered 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 the percentile ranking of each Fund over various periods of time. 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 or decreased over time, the expense ratios of the Funds generally have fallen or risen, respectively. After completing this examination, the Board concluded that each Fund’s expenses are appropriate at the current time.
Independent Fee Consultant Review
During July of 2016, and as part of their regularly scheduled meetings, the Independent Trustees reviewed a substantial amount of information in connection with considering the continuation of the Management Agreement currently in effect between IICO and the Funds. Independent legal counsel, on behalf of the Independent Trustees, engaged an independent fee consultant to assist them in evaluating the reasonableness of the management fees charged by IICO to the Funds. The independent fee consultant’s review addressed the following fee-related factors:
| 1. | The nature, extent and quality of IICO’s services to the Funds, including performance; |
| 2. | Management fees (including any components thereof) charged by other mutual fund companies for like services; |
| 3. | Management fees (including any components thereof) charged to institutional and other clients of IICO for like services; |
| 4. | Costs to IICO and its affiliates of supplying services pursuant to the management fee agreement, and profit margins of IICO and its affiliates from supplying such services; and |
| 5. | Possible economies of scale as a Fund grows larger. |
The following summarizes the findings of the independent fee consultant retained by the Independent Trustees.1
Summary Findings
The report stated that IICO delivered reasonable levels of performance in the longer-term periods and reasonable levels of service to the Funds in relation to its management fees as compared to the investment advisers of comparable funds. For
| 1 | The independent fee consultant’s evaluation was based on information provided by IICO, Broadridge, other information providers and other independent analyses. The term “management fees” refers to the actual annual advisory and administrative fees, net of any fee waivers, paid by a Fund to IICO, as a percentage of average net assets. The term “total expenses” refers to the total annual expenses, net of any fee waivers, paid by a Fund, as a percentage of average net assets. Where these terms are used in reference to groups of Funds, numbers expressed are usually on an asset-weighted basis. Fee and performance data used in screening methodologies are usually for the period ending March 31, 2016. Broadridge report data reflects Class A shares. |
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| 228 | | SEMIANNUAL REPORT | | 2016 | | |
the 36 months ended March 31, 2016, approximately 10% of the Funds were in the top quartile of performance and 40% of the Funds were in the top two quartiles of performance, although short-term performance of the Funds had declined after an extended period of superior long-term performance, which bears monitoring. The independent fee consultant noted that the Funds’ performance appeared to be grounded in a number of institutional competitive advantages at IICO including economic analysis, investment management depth, ability to attract top talent, strategic vision, performance-focused culture, and an effective trading infrastructure, and that these factors could allow IICO to overcome recent short-term performance challenges.
The report further indicated that total expenses of the Funds, on average, were 4% below the average total expenses of their respective Broadridge Expense Group peers and 15% below the average total expenses for their Broadridge Expense Universes. The management fees for the Funds were 6% below the average management fees of their respective Broadridge Expense Group peers and 10% below the average management fees for their Broadridge Expense Universes. The independent fee consultant noted that the Funds, generally small account size relative to the Expense Groups introduces certain biases in the Broadridge analyses that work against the Funds in Broadridge expense comparisons and, as a result, the Broadridge findings may be considered conservative. The independent fee consultant found that within the larger Broadridge averages, the management fees and total expenses of individual Funds and share classes are reasonable relative to their performance.
The report also stated that the management fees IICO charges to the Funds are reasonable in relation to the management fees it charges to its institutional account clients. The report noted that these institutional account clients have different service and infrastructure needs and in addition, the average spread between management fees IICO charged to the Funds and those it charges to institutional account clients is reasonable relative to the average fee spreads computed from industry surveys.
The report stated that while it was difficult to confirm overall economies of scale, it was clear that the Funds’ shareholders generally are benefitting from lower expenses as the Funds’ assets grow.
The report also noted that IICO’s overall profitability from managing the Funds and its other operations is near the median of most similarly-sized, publicly-traded peers, but appears adequate to enable IICO to continue to provide quality support to the Funds and their shareholders. Finally, the report noted that IICO has continued to invest in AUM growth, which is designed to help drive down fund expenses and attract top investment management talent, both of which can benefit the Funds’ investors.
Finally, the report also examined the fees that IICO retains on Funds that are subadvised by unaffiliated subadvisers, and indicated that those fees are reasonable relative to the industry. The report also stated that the subadvisory fees that IICO earns for serving as a subadviser to an unaffiliated fund when compared to fees of similar Funds likewise are reasonable relative to the industry.
Conclusions
The independent fee consultant’s report concluded that it believes that the services provided by IICO and its affiliates and expenses incurred by the Funds in the previous 12 months are reasonable and provide adequate justification for renewal of the Funds’ existing Management Agreement and Investment Subadvisory Agreements.
Approvals for Ivy California Municipal High Income Fund
At a meeting of the Board of Trustees (the “Board”) of Ivy Funds (the “Trust”) held on August 9, 2016, 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 amendment to the Investment Management Agreement (the “Management Agreement”) between Ivy Investment Management Company (“IICO”) and the Trust, on behalf of Ivy California Municipal High Income Fund (the “Fund”), to include the Fund under the Management Agreement. The Fund is a newly created series of the Trust.
The Independent Trustees were assisted in their consideration of the Management Agreement by independent legal counsel, and met with such counsel separately from representatives of IICO. Independent legal counsel had provided the Board with a memorandum prior to the meeting that discussed the various factors that the Board should consider as part of its review of the Management Agreement, including, among other things, the nature and quality of the services proposed to be provided to the Fund by IICO, IICO’s potential profitability (including any fall-out benefits) from its proposed relationship with the Fund, projected economies of scale, the role played by the Independent Trustees and information on comparative fees and expenses. The material factors and conclusions that formed the basis for the Board’s determination to approve the Management Agreement are discussed below.
In considering the Management Agreement, the Board noted that although the Fund had not yet commenced operations, the Fund appeared to be designed to be able to achieve acceptable performance. The Board also considered the proposed expenses of the Fund, the cost of the services proposed to be provided by IICO, including as compared to the other Funds in
| | | | | | | | | | | | |
| | | 2016 | | | | SEMIANNUAL REPORT | | | | 229 | |
the Trust family and comparable funds. The Board also noted the proposed expense cap agreement, and concluded that the proposed expenses of the Fund were acceptable. The Board did not discuss possible economies of scale because the Fund had not yet commenced operations. The Board noted that it would monitor profitability once the Fund began operations. The Board considered the nature, extent and quality of services proposed to be provided to the Fund by IICO, taking into account the investment objectives and strategies of the Fund, the Board’s experience with IICO, and other materials previously provided to the Board on the Fund. In addition, the Board reviewed the resources and key personnel of IICO. The Board also considered other services proposed to be provided to the Fund by IICO based upon its current experiences with IICO, such as IICO’s ability to monitor adherence to the Fund’s investment restrictions, producing reports, providing support services for the Board and Board committees on Fund matters, communicating with shareholders and overseeing the activities of other service providers, including monitoring compliance with various policies and procedures and with applicable laws and regulations. The Board also took into account IICO’s compliance environment. The Board concluded that the nature and extent of services to be provided by IICO are reasonable, considering the quality of the services currently provided by IICO for other Funds of the Trust. The Board also discussed whether IICO would derive any other direct or indirect benefits from serving as investment adviser to the Fund. The Board considered the benefits that would accrue to IICO from its relationship with the Fund, including the fact that a variety of services for the Fund were proposed to be provided by affiliates of IICO, including distribution, shareholder servicing and transfer agency services. After consideration of these and other factors, the Board concluded that neither IICO nor any of its affiliates would receive any additional direct benefits that would preclude the Board from approving the Management Agreement for the Fund.
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| 230 | | SEMIANNUAL REPORT | | 2016 | | |
| | |
| PROXY VOTING INFORMATION | | IVY FUNDS |
Proxy Voting Guidelines
A description of the policies and procedures Ivy Funds uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1.800.777.6472 and (ii) on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.
Proxy Voting Records
Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on Form N-PX through the Ivy Investments’ website at www.ivyinvestments.com and on the SEC’s website at www.sec.gov.
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| QUARTERLY PORTFOLIO SCHEDULE INFORMATION | | IVY FUNDS |
Portfolio holdings can be found on the Trust’s website at www.ivyinvestments.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. |
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| 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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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 Mid Cap Income Opportunities 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 Growth Fund
Ivy Global Income Allocation Fund
Ivy International Core Equity Fund
Ivy Managed International Opportunities Fund
Speciality Funds
Ivy Apollo Multi-Asset Income Fund
Ivy Asset Strategy Fund
Ivy Balanced Fund
Ivy Energy Fund
Ivy Global Natural Resources Fund
Ivy LaSalle Global Real Estate Fund
Ivy LaSalle Global Risk-Managed Real Estate Fund
Ivy Real Estate Securities Fund
Ivy Science and Technology Fund
Fixed Income Funds
Ivy Apollo Strategic Income Fund
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
Ivy Targeted Return Bond Fund
1.800.777.6472
Visit us online at www.ivyinvestments.com
The Ivy Funds are managed by Ivy Investment Management Company and distributed by its subsidiary, Ivy Distributors, Inc.
Before investing, investors should consider carefully the investment objectives, risks, charges and expenses of a mutual fund. This and other important information is contained in the prospectus and summary prospectus, which may be obtained at www.ivyinvestments.com or from a financial advisor. Read it carefully before investing.
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| | | 2016 | | | | SEMIANNUAL REPORT | | | | 235 | |
SEMIANN-IVYFUNDS (9-16)
ITEM 2. CODE OF ETHICS
Required in annual report only.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
Required in annual report only.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Required in annual report only.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Item 1 Shareholder Report.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s board of directors.
ITEM 11. CONTROLS AND PROCEDURES.
| (a) | The Registrant’s Principal Executive Officer and Principal Financial Officer, or persons performing similar functions, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, have concluded that such controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective and adequately designed to ensure that information required to be disclosed by the Registrant in its reports that it files or |
1
| | 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.
2
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)
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| By | | /s/ Wendy J. Hills |
| | Wendy J. Hills, Vice President and Secretary |
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| Date: | | December 9, 2016 |
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.
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| By | | /s/ Philip J. Sanders |
| | Philip J. Sanders, President and Principal Executive Officer |
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| Date: | | December 9, 2016 |
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| By | | /s/ Joseph W. Kauten |
| | Joseph W. Kauten, Vice President and Principal Financial Officer |
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| Date: | | December 9, 2016 |
